The Economics of Options- Part II

Remember when borders were more than just inconvenient lines on Google Maps?

Well, buckle up, because we're about to take that cozy notion of patriotism for a wild ride through our increasingly interconnected world.

From Ramesses to YOLO: A Brief History of Patriotic Bugs

In 1170 BCE, Ramesses III, Pharaoh of Egypt, faced an unprecedented threat. A confederation of foreign peoples, known to history as the "Sea Peoples," were sweeping through the Eastern Mediterranean, toppling empires that had stood for millennia. Ramesses rallied his forces, defeated the invaders, and preserved Egyptian civilization—an act of patriotism that resonates through the ages.

Fast forward to 2008. The global financial crisis hits, and suddenly everyone realizes that the world's economies are more intertwined than the plot of a Christopher Nolan movie. Oops!

But wait, there's more! Let's take a quick tour of recent economic misadventures:

1. Ghana ,2022:  Once a beacon of economic growth in Africa, found itself grappling with its worst financial crisis in decades. The inflation rate soared to 54%, and the country's total debt reached $55 billion, requiring over 70% of government income for debt servicing. To put that in perspective, it's like maxing out your credit card to buy a small country.

2. Nigeria, 2023: Not to be outdone, Nigeria said "hold my beer" and let its currency, the naira, speak. The largest economy in West Africa, has also experienced significant capital market instability. The naira lost over 40% of its value against the US dollar, leading to increased costs for businesses and reduced purchasing power for consumers. This economic turmoil was exacerbated by mismanagement of oil revenues and subsidy policies that failed to stabilize the market.

3. U.S.-China Trade War, 2018: Two economic superpowers decided to play chicken with tariffs. Spoiler alert: nobody won, and American consumers ended up footing the bill. The Peterson Institute for International Economics estimated that this economic jousting match reduced U.S. real GDP by 0.3% and left everyone's wallets a bit lighter.

These events, separated by millennia and continents, illustrate the changing nature of the challenges we face and the evolving role of patriotism in addressing them.

The Patriotism Paradox: When your national anthem becomes an Instagram notification

Patriotism, in its traditional sense, has been a powerful force in human history. It has rallied people to defend their homes, build great works, and overcome tremendous challenges. The sense of belonging and shared purpose that patriotism engenders has been a crucial element in the formation and maintenance of nation-states, the dominant form of political organization for the past few centuries.

If you are part of my gen-z audience , this makes more sense to you ,Patriotism ;that warm fuzzy feeling you get when your country wins at sports you don't usually care about, is starting to look like the Internet Explorer of societal concepts. It worked great when the world was running Windows 95, but now we're in the age of quantum computing and TikTok dances.

However, we now find ourselves in a world where many of our most pressing challenges—climate change, pandemics, economic instability, technological disruption—transcend national borders. The patriotism that once served to unite and motivate people within nations may now be hindering our ability to address these global issues effectively. It’s almost like our biggest challenges are like those group projects in school where the slacker kid affects everyone's grade. Except now, the whole world is the group, and the project is "Don't Make Earth Uninhabitable 101".

This is the patriotism paradox: the very sentiment that historically helped us solve problems may now be preventing us from addressing our most critical challenges.

The Limitations of Sole Patriotism

To understand why traditional patriotism is increasingly ill-suited to our current reality, let's examine its limitations in the context of today's global challenges:

1. Economic Interdependence: In our interconnected global economy, economic policies based purely on national interest often backfire. The Ghana and Nigeria crises provide stark examples:

   In Ghana, the government's mismanagement, including excessive money printing to finance spending, led to rampant inflation and economic instability that affected not only local citizens but also international investors. American comedian Michael Blackson, for instance, saw his investments in Ghanaian Eurobonds, intended to support a free school he established, significantly devalued due to the country's debt restructuring program.

   In Nigeria, the devaluation of the naira and high inflation have had ripple effects beyond its borders. As the largest economy in West Africa, Nigeria's economic health impacts regional trade and investment. The mismanagement of oil revenues and ineffective subsidy policies demonstrate how national decisions can have far-reaching consequences in an interconnected world.

2. Climate Change: Perhaps the ultimate example of a problem that defies national solutions. A country could eliminate all its carbon emissions, but without global cooperation, it would still suffer the consequences of climate change. The ultimate "tragedy of the commons" scenario. The 2015 Paris Agreement was supposed to be our global kumbaya moment, but then some countries (*cough* USA cough) decided to play musical chairs with their commitment. Meanwhile, Brazil's Amazon rainforest, Earth's green lungs, under President Bolsonaro's administration (2019-2022)  was being cleared faster than a plate of free samples at Costco. This shows how prioritizing national economic interests over global environmental concerns can have severe consequences for the entire planet.

3. Technological Progress: Innovation now happens at a global scale. The semiconductor industry, for instance, relies on a complex international network of research, design, and manufacturing. The COVID-19 vaccine development showed us what happens when scientists worldwide decide to share their notes instead of guarding them like the secret recipe for Coca-Cola. Attempts to nationalize such industries often lead to increased costs and reduced innovation.

4. Cultural Exchange: In the age of Afrobeats, K-pop and Netflix, culture is spreading faster than gossip in a small town -  cultural isolation is nearly impossible. Attempts to maintain cultural "purity" are about as effective as using a sieve to carry water.

5. Talent Mobility: The global competition for talent means that countries with overly restrictive immigration policies often lose out on innovative and skilled individuals who drive economic growth. The global talent pool is now more like a talent ocean. Countries playing hard to get with their immigration policies are like that kid at the party who won't share their toys - they end up playing alone.

   Canada's express entry system for skilled immigrants has allowed it to attract top global talent, contributing to its tech sector growth. Toronto, for instance, created more tech jobs than Silicon Valley between 2012 and 2017.

   Conversely, the UK's post-Brexit immigration policies have led to labor shortages in key sectors like healthcare and agriculture, highlighting the economic costs of restrictive, nationalist approaches to immigration.

   These examples underscore how sole patriotism and nation-centric approaches are often inadequate, and sometimes counterproductive, in addressing the complex, interconnected challenges of the 21st century. They highlight the need for a more nuanced, globally-minded approach that balances national interests with international cooperation and responsibility.

The Aggregation Theory of Global Citizenship, Unbundling the Flag

To understand the shift from national to global frameworks, it's useful to apply Ben Thompson's Aggregation Theory to the concept of citizenship itself. Remember how the internet unbundled the newspaper? Well, globalization is doing the same thing to citizenship. It's like citizenship is going through a messy divorce with the nation-state, and they're fighting over custody of your loyalty. Traditionally, citizenship was bundled with a set of rights, responsibilities, and identity markers, all tied to a specific nation-state. This bundle was the only way to access these benefits, creating high switching costs and lock-in effects.

However, the internet and globalization are disaggregating these elements:

1. Rights: Many rights traditionally associated with citizenship (e.g., the right to work, access healthcare, own property) are increasingly available to non-citizens through various visa programs, international agreements, and digital platforms. It's more like building your own burrito at Chipotle. A work visa here, healthcare access there, sprinkle some property rights on top. This is what my personal immigration strategy looks like, I’ll talk more about it in the next installment of this series.

2. Responsibilities: Global problems require global solutions, leading to a sense of responsibility that transcends national boundaries- they are the new group projects. Climate activism, for instance, often operates on a global rather than national scale.

   It’s like that one keener in class who starts a study group that everyone grudgingly joins because they know it's for their own good.

3. Identity: People increasingly form identities around transnational factors: professional networks, online communities, or global causes. Your Twitter bio is becoming more relevant than your passport.

4. Economic Participation: Digital platforms like Risevest , Carry and Coinbase allow individuals to participate in global markets regardless of their physical location or nationality. However, as seen in the Ghana and Nigeria cases, this global participation can also expose individuals to risks from mismanagement in other countries. Just ask American comedian Michael Blackson, who saw his investments in Ghanaian Eurobonds tank faster than a lead balloon. Isn't progress grand?

This disaggregation allows individuals to assemble a "citizenship bundle" that best suits their needs and values, often drawing from multiple national and transnational sources.

The New Patriotism: It's Like Spotify for Loyalty

Given these changes, how should we think about patriotism in the 21st century? I propose a framework of "concentric loyalties" or "layered patriotism’ .Think of it as a playlist of loyalties:

1. Local Commitment: Engagement with and loyalty to one's immediate community. Your neighborhood is the new nation. Get involved locally, or at least wave awkwardly at your neighbors occasionally.

2. National Contribution: Working to improve one's country of origin or residence. Your country is like that friend you've known forever. You love them, but you're not afraid to tell them when they're being an idiot.

3. Regional Cooperation:  Collaboration at a supranational level (e.g., AU,EU, ASEAN). It's like being part of a superhero team, but instead of fighting Thanos, you're tackling boring but important stuff like trade agreements.

4. Global Citizenship: Commitment to addressing global challenges and furthering human progress as a whole. Congratulations, you now have 7 billion roommates. Try not to eat their leftovers without asking.

   This layered approach allows for maintaining connections to one's roots while also embracing a broader, more inclusive worldview.

Practical Implications: Or, How I learned to stop worrying and love the global village

Rethinking patriotism has practical implications for individuals, businesses, and governments:

1. Education: Curriculars need to balance national history and culture with global awareness and cross-cultural competence. Schools need to teach kids how to be global citizens. Step one: learning that not everyone considers ketchup a vegetable.

2. Policy: Governments must find ways to attract and retain global talent while addressing the concerns of their national constituents. The Ghana and Nigeria cases highlight the need for responsible fiscal and monetary policies that consider both domestic and international stakeholders. They also underscore the importance of transparent and effective management of natural resources and subsidies.

3. Business: Companies must balance being good "corporate citizens" with global operations. The situations in Ghana and Nigeria demonstrate the risks of over-reliance on a single market or government policy, emphasizing the need for diversification and robust risk management strategies.

4. Individual Career Strategies: Think globally, act locally! People must think globally about their skills, networks, and opportunities, while also considering how they can contribute to their local and national communities. Michael Blackson's experience in Ghana illustrates both the opportunities and risks of global investment strategies, underlining the importance of diversification and due diligence in international investments.

As we navigate this new world order, remember: borders may be lines on a map, but human ingenuity, cooperation, and terrible puns know no boundaries. Stay tuned for our next installment, where we'll explore practical strategies for being a citizen of everywhere and nowhere. Spoiler alert: it doesn't involve building a wall or yelling "USA! USA!" at inappropriate moments.

 Read part I of this series : The economics of options -

The Global Citizen Advantage: Navigating Identity and Opportunity in the 21st Century