So, there I was, having dinner with Foseti, and as usual, his insights about stuff he's seen directly are excellent.
We got near agreement on the following:
In broad strokes, there is only one political system yet discovered that generates wealth and economic growth in rich countries:
The northern-european/germanic/anglo system of strong individual property rights and common law. In less broad strokes, there are two-and-a-half:
Anglo systems (low redistribution, low regulation, strong individual property rights):
England, America, Australia, New Zealand, Canada, Singapore, Hong Kong, Dubai, post-war Japan.
Nordic systems (assuming the existence of enough nords) (high redistribution, low regulation, property rights):
Denmark, Sweden, Norway, Finland, maybe Germany.
Swiss system (Maybe would collapse into nordic systems if ANY swiss people needed welfare) (hyper-federalist, direct democracy, cantonal competition driving low taxes):
On the other hand, there is a widely admired economic system that does NOT deliver growth after catch-up: Fascism/Corporatism/Crony Capitalism/Japan/South Korea. Foseti's was the excellent point that from being in Korea, he saw that the line between the government and the Zaibatsu was blurry at best. And that it lined up well with Japan.
Aretaevian competition-theory says that you cannot build an innovation system out of that approach.
And so...South Korean growth should fall off pretty hard. You heard it here.
Oh...and Foseti's a real nice guy in person.