The Emerging Competitive Paradigm: A Contest of Effective Governance

Many factors determine the relative strength of nations, including great powers engaged in long-term rivalries. In the larger project of which this paper is one part, we examine the societal characteristics that produce competitive advantage--the qualities of nations that improve a nations relative standing.1 We identified seven major characteristics that appear to be associated with success in almost any era or context: national ambition and willpower, unified national identity, shared opportunity, an active state, effective institutions, a learning and adapting mindset, and diversity and pluralism. In addition to these seven characteristics, the study's first phase also highlighted an intriguing, related theme. Many of our cases suggested that competitive advantage also emerges from meeting the demands of the prevailing competitive paradigm--the essential character of any era that sets the context for national success.2 There were particular times in history when a confluence of economic, social, and military developments created an opportunity for competitive advantage by meeting the demands of the era, thus separating successful from failed nations.