There is an old saying among economists: “throughout history there have been only four kinds of economies in the world: advanced, developing, Japan, and Argentina”.
The set of once-poor countries that are now rich include Japan, where the transition began more than 100 years ago, and some other East Asian countries such as Korea and Taiwan, whose transition started only 50 years ago and is now almost complete. But going the other way there is only one notable case of a country that started life relatively rich and ended up comparatively poor: this is the great puzzle or paradox of Argentina. In the late nineteenth century, it was among the top five countries in income per capita, richer than all European countries except Britain and on a par with other rich settler societies such as the United States, Canada, and Australia.
Japan and Argentina continue to confound macroeconomics. Below is a table comparing the Argentina and Japan at the moment. How different they are. It doesn’t look as if they will play each other in the Rugby World Cup as they are in different Pools. However if their macroeconomic conditions are anything to go by they should end up in the final
The Economist – Argentina v Japan – March 30th March 2019