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How Economic Complexity Explains Which Countries Become Rich | Odd Lots

Why do some countries become rich while others stagnate? And can you predict which countries become wealthy in advance of them actually increasing their collective GDP? The answer may lie in the complexity of each nation's domestic economy. On this episode we speak with Ricardo Hausmann, a professor and director of the Growth Lab at Harvard University. He helps us understand what economic complexity is, how it's measured, and the process by which countries can move from being less complex to more complex over time. Key insights from the pod: Intro -- 0:00 What is economic complexity? — 4:38 Why economic complexity is important and how it differs to GDP — 8:04 Economic complexity vs. resource wealth — 13:21 An example of successful complexity development — 15:56 How to build knowledge and complexity — 18:31 Specific goods that lead to complexity — 24:24 Japan, Korea and South Africa examples — 27:27 Can there be too much economic complexity? — 31:18 Building complexity and avoiding the resource curse — 34:00 The role of government policy — 37:47 Developing complexity through services — 41:57 New data from the Atlas of Economic Complexity — 43:59 See omnystudio.com/listener (https://omnystudio.com/listener) for privacy information. Bloomberg's Joe Weisenthal and Tracy Alloway analyze the weird patterns, the complex issues and the newest market crazes. Join the conversation every Monday and Thursday for interviews with the most interesting minds in finance, economics and markets. Subscribe to Bloomberg Podcasts: https://bit.ly/BloombergPodcasts Check out more Odd Lots:    • Odd Lots   Get the Odd Lots newsletter via https://www.bloomberg.com/account/new... And for all things Odd Lots, visit https://www.bloomberg.com/oddlots Visit our other YouTube channels: Bloomberg Television:    / @markets   Bloomberg Originals:    / bloomberg   Quicktake:    / @bloombergquicktake   #Bloomberg #Podcast #OddLots Visit us: https://www.bloomberg.com/podcasts Follow Bloomberg Podcasts on Twitter:   / podcasts   For coverage on news, markets and more: http://www.bloomberg.com/video