Arctic CircleDi spatches|MICROSTATESNorwegian SeaBarents SeaBalticSeaDreamstimeLuxembourg, shown here in the spring, is the third-most prosperous country in the world based on per-capita GDP.North Sea1. LuxembourgGermanyBelgiumLuxembourgFrance48Geography has blessed, and untilrecently cursed, this grand duchy,which consistently finishes amongthe elite in rankings that measure livability.Less than half the size of PrinceEdward Island, at 2,586 square kilometres,Luxembourg borders Germany to the east,France to the south and Belgium to thewest. (Many of its 500,000 residents speakthree languages — French, German andLuxembourgish, a German dialect). Thislocation has made this former steel-manufacturingcentre an attractive base forbroadcasters such as the German-ownedRadio Television Luxembourg (RTL)Group and the foreign-owned financesector, which accounts for about 28 percentof GDP.This economic portfolio has made Luxembourgthe third-most prosperous countryin the world based on per-capita GDP.But this irreversible proximity to Franceand Germany has also made Luxembourgan object of strategic desires over the centuries,perhaps no more so than duringthe first half of the 20th Century when theFirst and Second World War caused significantdamage. Against this background,Luxembourg abandoned its historical policyof neutrality, joining the North AtlanticTreaty Organization (NATO) in 1949. Eightyears later, it sought economic security bybecoming a founding member of what hassince evolved into the European Union.Certainly within Europe, this preferencefor working through internationalorganizations has earned Luxembourgconsiderable influence, where old politicalhands, such as Jean-Claude Juncker, haveplayed a significant role in the creationof the Euro currency. As of this writing, itremains uncertain whether this legacy willsurvive. If it does, Luxembourg will haveplayed its historic part in further unitingEurope.Black SeaWINTER 2012 | JAN-FEB-MAR
MICROSTATES|Di spatchesL. BaykalSea ofJapan(East Sea)YellowSeaTropic of CancerEast ChinaSeaChensiyuanSingapore, whose skyline appears here at South dusk, China sits near Sea one of the most important shipping lanes in the world.2. SingaporeMalaysia SingaporeIndonesiaThis island nation of some 4.7 millionpeople controls a combinedland and sea territory of less than700 square kilometres. But if this figureranks Singapore as one of the smallestnation-states, its location between Malaysiaand Indonesia grants it an immense, ifnot disproportionate, amount of strategicinfluence, for it sits near one of the mostimportant shipping lanes in the world.Not surprisingly, Singapore’s port ranksamong the world’s busiest. In 2010, morethan 120,000 vessels called on the port.Granted, it might be tempting to dismissthe status of Singapore as an accidentalproduct of geography. But sucha position would prohibit us from seeingthe skill with which the elites of Singapore(under the leadership of the long-rulingPeople’s Action Party) have leveraged thehuman capital of their resource-poor landto the country’s benefit. They have turneda multi-ethnic, multi-religious, multilingualpolyglot into one of most livableand prosperous states, whose virtuallycorruption-free economy grew by almost15 percent in 2010 on the strength of highendexports, such as consumer electronicsand pharmaceuticals.Singapore also continues to positionitself as an escape hatch for global financialinstitutions, whose corporate leadersmight be unwilling to face tougher restrictionsin the northern hemisphere. Whileone might have good reasons to questionthe ethics of this behaviour, it speaks tothe ability of this resource-poor country toquickly spot and fill niches. Newsweek, forexample, recently ranked Singapore as themost economically dynamic state.Such flexibility, however, appears to beunlikely in other spheres of Singaporeansociety. The country continues to enforcestrict laws and penalties against actionsthat may be legal or may be minor offencesin Canada. They include jaywalking,littering, spitting, smoking in publicplaces, and the importation and sale ofchewing gum. Acts of graffiti remain punishablethrough caning. And this catalogueof apparent crimes and their punishmentshardly represents the worst, as Singaporecontinues to crack down on homosexualityand other perceived vices.Freedom House, a Washington-basednon-governmental organization trackingcivil liberties, currently ranks Singaporeas “partly free” and heading in the wrongdirection, thanks to measures that restrictpublic assembly and press <strong>freedom</strong>s, afrustrating condition that has even appearedon Washington’s radar. This said,Singapore and its eponymous capital, alsoknown as the Lion City, might be truly themouse that roars, at least when it comes tobeing heard in the global economy.diplomat and international canada 49