Small nations

People of every nation try to achieve as high level of living¹ as possible. They also seek economic security to make their level of living constant. But nations vary in area and population, so security can only be relative. Nations with large territories but which are not too large in population, such as the USA, Canada, Australia, may have a relatively high degree of economic security because they are supplied with proper amounts of natural resources, manufacturing companies, trade facilities, such as rivers, roads, railroads, airports, and efficient means² of communication.

In contrast³, some nations are small in area and large in population. They can ensure economic security only if they cooperate effectively with other people. For example, Belgium is a small country of about 31,000 square kilometres⁴ and with a population of about 10 million, or about 300 persons per square kilometre. The Belgians can maintain a relatively high level of living but they should produce at home as large quantities of foodstuffs and other necessities as possible. They have to buy raw materials and sell their products in the world market. The obtained profits are to be used to import additional foodstuffs and other necessities of life that the Belgians must use to maintain their level of living.

Thus⁵, the Belgians have to turn to⁶ world markets for three reasons: 1) they have to buy raw materials; 2) they must sell manufactured goods; 3) they have to buy additional quantities of the necessities of life. The Belgians greatly depend on world markets, so they should welcome⁷ any international action that can ensure the stability of prices in world markets.

Japan is known as another small nation with big population, which was able to overtake such industrialized country as the USA in some fields of economy. Traditionally the country has to produce some manufactured goods for export in order to import additional foodstuffs. The main items of Japanese export are high-tech products such as computers and computer programmes, modern automobiles, high-quality machinery and equipment, reliable household appliances, etc. Nowadays Japan has become one of the largest contributors of long-term capital to developing countries.