The Atlas of Economic Complexity: Visualizing Global Trade and Economic Development
Journalists looking for data visualization on global trade and economic development can now turn to tools like the Atlas of Economic Complexity, which offers reporters and analysts an unprecedented opportunity to convey complex data stories. This platform, developed by the Harvard Growth Lab, enables users to create data visualizations that track any country's trade trends for over 6,000 products and services. This resource is an essential asset for international trade reporters as it opens up a treasure trove of insights into global economic relationships, growth trends, and the intricate dynamics of various industries.
At the heart of the Atlas of Economic Complexity is access to a vast amount of trade data, sourced from the UN's Comtrade database, which is collected semiannually. The Harvard Growth Lab has taken this raw data and optimized it for visual storytelling. Users can effortlessly chart and analyze thousands of products and services, searchable by specific names or trade codes, to explore trends in global trade.
One of the notable features of this tool is its ability to provide unique narratives for individual countries. By analyzing a country's exports and economic performance, the Atlas generates growth projections and on the country’s potential trajectory. This data-driven insight allows journalists to not only report on the current state of a country's economy but also to provide readers with a glimpse of the future. For instance, the tool predicts that China is poised for the fastest growth in income per capita over the next decade—which is a geopolitical topic with greater implications than simple economic growth.
Technology is another major factor in the conversation surrounding economic growth. The Growth Lab identifies three main types of technology that influence a country's economic capabilities:
Embedded Knowledge: This is knowledge contained within an object, for example, a drone. A person can operate a drone without knowing how to build it; the knowledge is embedded in the tool itself.
Codified Knowledge: Codified knowledge is acquired through instruction manuals, following a specific set of guidelines.
Tacit Knowledge: Tacit knowledge comes from experience and expertise in a particular field. A profession like dentistry is an example, where deep expertise is honed over years of practice.
These distinctions are critical because they determine a country's ability to produce various goods and services. The Growth Lab's director of software tools, Tim Cheston, underscores this by comparing knowledge and capabilities to Scrabble tiles. Each capability or piece of knowledge is like a tile, and as a country accumulates more "tiles," it can create more complex industries. “And if you’re missing any of those letters, you’re not able to produce that complex industry itself,” Cheston said. Analogies like this are a fantastic way for journalists to communicate complex economic concepts to their audience.
The product space visualization feature of the Atlas illustrates the likelihood of a country producing goods related to one another. The tool helps journalists understand the nuances of industry and technology relationships. For example, a company that manufactures cars will likely manufacture things related to driving—wheels, lights, engines—etc. However, they are less likely to manufacture clothing or household items.
Additionally, the Atlas delves into the economic complexity, which is calculated by “the diversity of exports a country produces and their ubiquity,” and is generally responsible for that country’s income per capita. Economic complexity isn't just a static measurement; it's a dynamic indicator that predicts future growth.
However, it's crucial to understand this tool is not without its limits.
Some pros:
Supplemental Data: The Atlas complements traditional economic data sources, offering a new dimension for understanding global trade and economic development.
Custom Visualizations: Users can create customized data visualizations to tell data-driven stories and provide readers with an interactive way to explore economic complexities.
Predictive Power: The tool's predictive capabilities make it a valuable resource for forecasting economic growth and market trends.
Some cons:
Not a Policy Tool: The Atlas should not be viewed as a policy-making tool but rather as an informative resource. Journalists must avoid presenting its data as deterministic or prophetic.
Complexity: The tool, while invaluable, is intricate and requires some level of familiarity and training to harness its full potential. This might pose a challenge for journalists unfamiliar with data visualization and economic concepts.
The Atlas of Economic Complexity was made to empower reporters to provide their audiences with engaging and insightful data-driven stories about the complex world of international trade and economic development. By embracing this resource, journalists can take their reporting to new heights, making economic complexity accessible and engaging to a broader readership—and they may even learn something about economics in the process.
