Please bear with me as I know little about general Economics, and I'm sure I am massively oversimplifying what I am trying to describe.
I'm looking for a term to describe what happens when an economy starts from a new place with sufficient resources, leading to rapid growth.
I feel like I notice a pattern when I learn about large economic changes:
- New place is discovered or old place is destroyed
- Things are built/rebuilt, government changes, technology is applied to resources
- New place overtakes all of the old, prosperous, stable places around it
I think some factors might be:
- Every country fights political, economic, cultural, and regulatory inertia even though it may be relatively advanced or well-off.
- When forced to start over or start fresh, people must consider each new piece of the system as it is created intentionally, instead of following or fighting what is already in place.
- The rules and policies of a lasting economy were created long ago and may no longer match with the current state of technology, leading to stagnancy. Whereas after a large change the new rules can be made to fit the times.
Some examples I can think of are:
After World War 2, USA installed democracy in Japan, dismantled monopolies, and built schools. Japan started over from very little, worked hard, and their economy exploded.
Europe brought technology to the vast natural resources of North America, made a new government, and well, here we are.
The city of Seattle was completely destroyed in a fire. So they fixed their lasting sewer problem, made the roads wider and properly irrigated, built everything sturdy and fire-resistant, and the economy boomed.
Recent examples might be Singapore, Hong Kong, Shenzhen, Songdo.
Is there a term for this or common way to describe it?