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Tuesday, October 25, 2011

A few years ago, I became frustrated when unable to find a table of national governmental expenditures as a percentage of GDP by country. So, using data from the invaluable CIA World Factbook, I created one.

It's gathered some dust, and an update is in line, especially since something or other having to do with the global economy occurred between then and 2010, from which the most recent data come. An inquiry from an author (who I won't name but who is certainly welcome to be made known in the comments if he so desires) searching for more recent numbers served as the impetus to actually get it done. Getting out in front of the inevitable objections, a disclaimer: These data do not include all government spending and state, local, and provincial government outlays of course differ from country to country. For consistency, all figures are in exchange rate terms:

Country
GE as GDP
1. Iraq
88.1%
2. Cuba
86.5%
3. Ireland
67.0%
4. Lesotho
65.5%
5. Denmark
58.4%
6. France
55.7%
7. Finland
53.6%
8. Sweden
53.4%
9. Belgium
53.0%
10. Austria
52.9%
11. Libya
52.2%
12. Netherlands
51.3%
13. Italy
51.2%
14. United Kingdom
50.9%
15. Portugal
50.6%
16. Iceland
50.1%
17. Bosnia and Herzegovina
49.8%
18. Hungary
49.3%
19. Greece
49.3%
20. Serbia
49.3%
21. Equatorial Guinea
47.3%
22. Cyprus
46.6%
23. Germany
46.5%
24. Norway
46.3%
25. Slovenia
46.3%
26. Belarus
45.1%
27. Spain
44.9%
28. New Zealand
44.4%
29. Cape Verde
43.9%
30. Canada
43.8%
31. Latvia
42.8%
32. Bolivia
42.5%
33. Botswana
42.5%
34. Croatia
42.4%
35. Malta
41.8%
36. Eritrea
41.8%
37. Brunei
41.7%
38. Lithuania
41.4%
39. Luxembourg
41.3%
40. Slovakia
41.0%
41. Moldova
40.8%
42. Japan
40.6%
43. Romania
39.3%
44. Swaziland
38.9%
45. Estonia
38.8%
46. Bulgaria
38.0%
47. Algeria
37.8%
48. Saudi Arabia
37.7%
49. Chad
37.3%
50. Oman
37.2%
51. Macedonia
36.4%
52. Czech Republic
35.8%
53. Australia
35.7%
54. South Africa
35.6%
55. Burundi
35.3%
56. Malawi
35.3%
57. Trinidad and Tobago
35.0%
58. Georgia
34.8%
59. Switzerland
34.7%
60. Angola
34.6%
61. Ukraine
34.3%
62. Vietnam
33.7%
63. Mongolia
33.1%
64. Nicaragua
32.9%
65. Kuwait
32.9%
66. Namibia
32.6%
67. Jamaica
32.6%
68. Israel
32.4%
69. Kyrgyzstan
32.3%
70. Uzbekistan
32.2%
71. Seychelles
31.9%
72. Ecuador
30.9%
73. Papua New Guinea
30.8%
74. Aruba
30.7%
75. Uruguay
30.5%
76. Mozambique
30.2%
77. Zimbabwe
30.1%
78. Egypt
29.8%
79. Guyana
29.7%
80. Albania
29.6%
81. Jordan
29.4%
82. Nepal
29.0%
83. Lebanon
28.8%
84. Belize
28.7%
85. Colombia
28.3%
86. Kenya
28.1%
87. Gabon
27.8%
88. Panama
27.6%
89. Burkina Faso
27.5%
90. British Virgin Islands
27.4%
91. Venezuela
27.4%
92. Brazil
27.4%
93. Senegal
27.3%
94. Yemen
27.2%
95. Bahrain
27.0%
96. Azerbaijan
26.9%
97. Armenia
26.5%
98. Malaysia
26.5%
99. Turkey
26.3%
100. Morocco
26.3%
101. Tunisia
26.3%
102. Rwanda
26.2%
103. Tajikistan
26.1%
104. Ghana
25.9%
105. Tanzania
25.5%
106. Mauritius
25.5%
107. Mexico
25.4%
108. Syria
25.2%
109. Iran
25.2%
110. Sierra Leone
24.5%
111. Qatar
24.4%
112. Kazakhstan
23.7%
113. United States
23.6%
114. Argentina
23.5%
115. Russia
23.3%
116. Zambia
23.2%
117. China
23.0%
118. Sri Lanka
22.8%
119. Chile
22.8%
120. Guinea
22.6%
121. El Salvador
22.5%
122. Honduras
22.2%
123. Togo
22.1%
124. South Korea
22.1%
125. Cote d'Ivoire
22.0%
126. Haiti
21.6%
127. Benin
21.3%
128. Afghanistan
21.1%
129. Laos
21.1%
130. United Arab Emirates
21.0%
131. Poland
20.9%
132. Republic of the Congo
20.6%
133. Pakistan
20.4%
134. Costa Rica
19.8%
135. Cameroon
19.7%
136. Sudan
19.5%
137. Thailand
19.5%
138. Peru
19.5%
139. Taiwan
19.0%
140. Gambia
18.8%
141. Indonesia
18.8%
142. Cambodia
18.6%
143. Philippines
17.9%
144. India
17.5%
145. Paraguay
17.4%
146. Hong Kong
17.3%
147. Bahamas
17.2%
148. Uganda
17.2%
149. Ethiopia
16.9%
150. Central African Republic
16.5%
151. Dominican Republic
16.5%
152. Madagascar
16.2%
153. Nigeria
15.5%
154. Bangladesh
15.1%
155. Singapore
14.5%
156. Guatemala
14.5%
157. Turkmenistan
9.3%

To view a visual representation, click here.

As the Iraq war finally draws to a close, at least we were able to transfer one tenet of contemporary Western democracies in a recognizable form to Baghdad. What's that? Isonomy? Respect for dissenting viewpoints? Individual liberty? No, no, no, Don Quixote. It's big government, of course!

Outside of a few paradises like Cuba, Western Europe dominates the top spots. The US figure, in comparison, is a bit of an apples-to-oranges one, as the table is, as mentioned previously, constructed on central (that is, federal) governmental expenditures and does not directly include the spending by local, state, or provincial governments. Around 40% of government spending in the US is doled out through state and local governments, a proportion higher than just about anywhere else in the world. Consequently, the US ratio appears deceptively small.

Still, if non-federal spending is included, the US is neck and neck with Japan, well below the bulk of the rest of the Western world. As ubiquitous as government seems to be stateside, its presence is relatively small compared to Europe.

Parenthetically, Switzerland (for which the CIA factbook includes cantonal and municipal spending in addition to federal spending) , a favorite of the American alternative right, stands apart from the rest of the Old Continent. In so many ways, this beautiful Alpine country instills in pessimistic conservatives a hope for what might yet be.

As a Radio Derb votary, I've long wondered why Turkmenistan is singled out as recipient of so much love on the weekly broadcast. To an ignorant yankee like myself, it's scarcely distinguishable from the rest of the crapistans. I need wonder no longer. The Derb may claim that the president's name is the source of affection, but the table above reveals the truth of the matter!

The relative paucity of government spending in affluent East Asian nations like Japan, South Korea, Singapore, and even officially communist China is to some extent a consequence of the absence of generous government-provided welfare systems in these places, with pensions, medical care, and the like mostly covered by employers rather than by the state, as tends to be the case in Western Europe.

There is a statistically significant but modestly positive correlation (.22, p = .01) between a country's per capita GDP and that country's amount of government spending as a share of its GDP. Correlation is not necessarily causation, of course, but with otherwise backwards countries that have enormous resource wealth (ie, Botswana and Saudi Arabia) tending towards the leviathan end of the governmental expenditures scale, to the extent that the causation arrow exists, it probably points from high GDP towards prodigious government spending rather than the other way around.

On its face, there doesn't appear to be much here that validates the libertarian view that minimizing the size of the federal government, and avoiding the consequent economic distortions its continued growth will otherwise cause, should be the exclusive goal of a society wanting economic prosperity and an overall improved quality of life. Ceteris paribus it's relevant, perhaps (I certainly think it is), but there are clearly a host of other demographic and cultural variables that are of greater importance. Who would rather operate a business--or live--in Nigeria instead of in Denmark?

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