In The Growth of Hierarchy and the Death of the Free Market, I looked at how the number of managers grows with energy use. The growth of managers, I argued, signalled the death of the free market. As countries develop, they replace small-scale competition with large-scale hierarchy.
My analysis culminated in the figure below, which compares the management share of employment to energy use per capita. Each dot represents a country in a given year.
Figure 1: The growth of management with energy use. As energy use increases, the management share of employment grows as well. Black dots represent individual countries. The red line shows historical trends in the United States. The rainbow shows the hierarchy model’s prediction. Color indicates the span of control in the model. Management data is from ILOSTAT. Energy use data is from the World Bank. For US data sources, see Energy and Institution Size.
Some readers have asked to know the countries behind each data point. To show you which country is which, I’ve created the figure below. It replaces points with ISO country codes. To simplify things, I’ve included only one observation for each country. (Figure 1 plots observations for all countries in all years with available data).
Figure 2: The growth of management with energy use. Countries are indicated by their ISO code.
Since you may not be familiar with country codes, I’ve included the table below that matches codes with countries. In case you’re interested, I’ve included the raw data as well.
| Country Code | Country | Year | Energy use per capita (GJ) | Managers Employment Share (%) |
|---|---|---|---|---|
| AGO | Angola | 1991 | 23.10 | 8.70 |
| ALB | Albania | 1991 | 27.00 | 2.90 |
| ARE | United Arab Emirates | 1991 | 502.20 | 9.00 |
| ARG | Argentina | 1991 | 62.90 | 6.80 |
| ARM | Armenia | 1991 | 100.10 | 4.70 |
| AUS | Australia | 1991 | 209.40 | 10.50 |
| AUT | Austria | 1991 | 146.00 | 5.40 |
| AZE | Azerbaijan | 1991 | 132.30 | 1.80 |
| BEL | Belgium | 1991 | 212.60 | 6.70 |
| BEN | Benin | 1991 | 16.80 | 0.70 |
| BGD | Bangladesh | 1991 | 7.90 | 0.40 |
| BGR | Bulgaria | 1991 | 109.30 | 8.70 |
| BHR | Bahrain | 1991 | 426.30 | 7.30 |
| BHS | Bahamas, The | 2004 | 89.30 | 8.00 |
| BIH | Bosnia and Herzegovina | 1991 | 63.60 | 5.30 |
| BLR | Belarus | 1991 | 185.10 | 10.70 |
| BLZ | Belize | 2004 | 26.60 | 10.00 |
| BOL | Bolivia | 1991 | 19.20 | 1.40 |
| BRA | Brazil | 1991 | 42.40 | 6.70 |
| BRB | Barbados | 2004 | 60.50 | 9.30 |
| BRN | Brunei Darussalam | 1991 | 310.10 | 4.20 |
| BTN | Bhutan | 2004 | 14.80 | 1.70 |
| BWA | Botswana | 1991 | 39.70 | 2.80 |
| CAN | Canada | 1991 | 316.30 | 10.50 |
| CHE | Switzerland | 1991 | 155.30 | 4.40 |
| CHL | Chile | 1991 | 47.60 | 5.80 |
| CHN | China | 1991 | 33.90 | 1.00 |
| CIV | Cote d’Ivoire | 1991 | 17.80 | 1.20 |
| CMR | Cameroon | 1991 | 20.50 | 3.10 |
| COD | Congo, Dem. Rep. | 1991 | 16.80 | 1.70 |
| COG | Congo, Rep. | 1991 | 16.80 | 1.90 |
| COL | Colombia | 1991 | 32.40 | 6.00 |
| COM | Comoros | 2004 | 5.40 | 1.50 |
| CPV | Cabo Verde | 2004 | 11.00 | 3.40 |
| CRI | Costa Rica | 1991 | 26.50 | 2.30 |
| CUB | Cuba | 1991 | 59.60 | 3.80 |
| CYP | Cyprus | 1991 | 77.50 | 1.50 |
| CZE | Czech Republic | 1991 | 185.20 | 3.80 |
| DEU | Germany | 1991 | 183.20 | 4.60 |
| DJI | Djibouti | 2004 | 10.30 | 1.50 |
| DNK | Denmark | 1991 | 159.40 | 4.10 |
| DOM | Dominican Republic | 1991 | 26.20 | 1.10 |
| DZA | Algeria | 1991 | 40.10 | 7.00 |
| ECU | Ecuador | 1991 | 29.70 | 2.20 |
| EGY | Egypt, Arab Rep. | 1991 | 26.10 | 6.60 |
| ERI | Eritrea | 1992 | 14.80 | 0.80 |
| ESP | Spain | 1991 | 103.40 | 4.90 |
| EST | Estonia | 1991 | 247.60 | 8.70 |
| ETH | Ethiopia | 1991 | 23.00 | 0.30 |
| FIN | Finland | 1991 | 243.50 | 4.00 |
| FJI | Fiji | 2004 | 37.10 | 5.30 |
| FRA | France | 1991 | 172.30 | 6.90 |
| GAB | Gabon | 1991 | 55.30 | 4.40 |
| GBR | United Kingdom | 1991 | 158.30 | 9.80 |
| GEO | Georgia | 1991 | 90.10 | 4.80 |
| GHA | Ghana | 1991 | 18.30 | 1.10 |
| GMB | Gambia, The | 2004 | 6.30 | 0.50 |
| GNB | Guinea-Bissau | 2004 | 5.70 | 0.60 |
| GNQ | Equatorial Guinea | 2004 | 47.10 | 1.70 |
| GRC | Greece | 1991 | 90.80 | 4.40 |
| GTM | Guatemala | 1991 | 23.10 | 1.80 |
| GUY | Guyana | 2004 | 29.70 | 3.00 |
| HKG | Hong Kong SAR, China | 1991 | 68.10 | 9.90 |
| HND | Honduras | 1991 | 22.80 | 2.30 |
| HRV | Croatia | 1991 | 76.00 | 4.20 |
| HTI | Haiti | 1991 | 12.10 | 0.30 |
| HUN | Hungary | 1991 | 113.70 | 4.60 |
| IDN | Indonesia | 1991 | 26.50 | 2.10 |
| IND | India | 1991 | 18.10 | 2.50 |
| IRL | Ireland | 1991 | 121.50 | 4.90 |
| IRN | Iran, Islamic Rep. | 1991 | 59.10 | 2.50 |
| IRQ | Iraq | 1991 | 40.30 | 1.00 |
| ISL | Iceland | 1991 | 340.30 | 8.90 |
| ISR | Israel | 1991 | 100.40 | 6.40 |
| ITA | Italy | 1991 | 113.80 | 3.20 |
| JAM | Jamaica | 1991 | 50.90 | 4.90 |
| JOR | Jordan | 1991 | 40.80 | 5.80 |
| JPN | Japan | 1991 | 152.70 | 4.10 |
| KAZ | Kazakhstan | 1991 | 193.80 | 3.80 |
| KEN | Kenya | 1991 | 22.00 | 1.20 |
| KGZ | Kyrgyz Republic | 1991 | 66.70 | 3.20 |
| KHM | Cambodia | 1995 | 14.20 | 0.50 |
| KOR | Korea, Rep. | 1991 | 99.60 | 3.00 |
| KWT | Kuwait | 1991 | 58.40 | 6.30 |
| LBN | Lebanon | 1991 | 39.80 | 11.00 |
| LBY | Libya | 1991 | 107.40 | 3.20 |
| LCA | St. Lucia | 2004 | 34.00 | 7.50 |
| LKA | Sri Lanka | 1991 | 16.40 | 2.50 |
| LTU | Lithuania | 1991 | 195.70 | 9.60 |
| LUX | Luxembourg | 1991 | 394.70 | 7.90 |
| LVA | Latvia | 1991 | 119.90 | 7.70 |
| MAR | Morocco | 1991 | 16.30 | 0.70 |
| MDA | Moldova | 1991 | 96.30 | 3.10 |
| MDV | Maldives | 2004 | 36.80 | 6.50 |
| MEX | Mexico | 1991 | 65.50 | 3.70 |
| MKD | North Macedonia | 1991 | 54.00 | 5.30 |
| MLT | Malta | 1991 | 80.40 | 7.00 |
| MMR | Myanmar | 1991 | 13.70 | 0.20 |
| MNE | Montenegro | 2005 | 76.20 | 5.40 |
| MNG | Mongolia | 1991 | 75.10 | 4.40 |
| MOZ | Mozambique | 1991 | 21.20 | 0.10 |
| MUS | Mauritius | 1991 | 29.60 | 2.80 |
| MYS | Malaysia | 1991 | 63.90 | 6.30 |
| NAM | Namibia | 1991 | 22.90 | 2.00 |
| NER | Niger | 2000 | 8.50 | 0.40 |
| NGA | Nigeria | 1991 | 32.90 | 1.00 |
| NIC | Nicaragua | 1991 | 24.20 | 2.10 |
| NLD | Netherlands | 1991 | 195.80 | 7.70 |
| NOR | Norway | 1991 | 216.80 | 14.10 |
| NPL | Nepal | 1991 | 16.10 | 0.10 |
| NZL | New Zealand | 1991 | 160.60 | 12.80 |
| OMN | Oman | 1991 | 132.20 | 4.90 |
| PAK | Pakistan | 1991 | 19.70 | 1.70 |
| PAN | Panama | 1991 | 29.90 | 5.20 |
| PER | Peru | 1991 | 21.00 | 0.70 |
| PHL | Philippines | 1991 | 22.00 | 7.60 |
| POL | Poland | 1991 | 113.60 | 5.90 |
| PRK | Korea, Dem. People’s Rep. | 1991 | 67.50 | 0.70 |
| PRT | Portugal | 1991 | 74.40 | 12.00 |
| PRY | Paraguay | 1991 | 33.80 | 2.80 |
| QAT | Qatar | 1991 | 623.30 | 2.50 |
| ROU | Romania | 1991 | 96.50 | 2.60 |
| RUS | Russian Federation | 1991 | 248.50 | 4.10 |
| SAU | Saudi Arabia | 1991 | 170.70 | 3.30 |
| SDN | Sudan | 1991 | 19.80 | 1.50 |
| SEN | Senegal | 1991 | 12.10 | 1.30 |
| SGP | Singapore | 1991 | 177.50 | 11.10 |
| SLB | Solomon Islands | 2004 | 8.40 | 1.40 |
| SLV | El Salvador | 1991 | 24.40 | 2.10 |
| SRB | Serbia | 1991 | 95.20 | 3.90 |
| SSD | South Sudan | 2012 | 5.50 | 2.00 |
| STP | Sao Tome and Principe | 2004 | 13.50 | 0.60 |
| SUR | Suriname | 2000 | 59.00 | 7.40 |
| SVK | Slovak Republic | 1991 | 154.10 | 4.20 |
| SVN | Slovenia | 1991 | 119.40 | 4.20 |
| SWE | Sweden | 1991 | 239.60 | 4.90 |
| SWZ | Eswatini | 2004 | 18.60 | 1.90 |
| SYR | Syrian Arab Republic | 1991 | 40.30 | 1.60 |
| TGO | Togo | 1991 | 17.00 | 0.70 |
| THA | Thailand | 1991 | 36.40 | 10.60 |
| TJK | Tajikistan | 1991 | 42.40 | 2.70 |
| TKM | Turkmenistan | 1991 | 171.00 | 2.90 |
| TLS | Timor-Leste | 2004 | 5.50 | 2.30 |
| TON | Tonga | 2004 | 26.80 | 2.70 |
| TTO | Trinidad and Tobago | 1991 | 205.60 | 6.00 |
| TUN | Tunisia | 1991 | 27.40 | 4.90 |
| TUR | Turkey | 1991 | 42.70 | 6.70 |
| TZA | Tanzania | 1991 | 18.90 | 2.20 |
| UKR | Ukraine | 1991 | 206.20 | 6.30 |
| URY | Uruguay | 1991 | 35.70 | 3.60 |
| USA | United States | 1991 | 322.60 | 8.90 |
| UZB | Uzbekistan | 1991 | 99.10 | 1.50 |
| VCT | St. Vincent and the Grenadines | 2004 | 28.50 | 6.60 |
| VEN | Venezuela, RB | 1991 | 88.20 | 3.80 |
| VNM | Vietnam | 1991 | 13.90 | 0.20 |
| VUT | Vanuatu | 2004 | 9.20 | 2.10 |
| WSM | Samoa | 2004 | 16.20 | 2.20 |
| YEM | Yemen, Rep. | 1991 | 13.20 | 1.30 |
| ZAF | South Africa | 1991 | 106.50 | 5.00 |
| ZMB | Zambia | 1991 | 31.50 | 0.70 |
| ZWE | Zimbabwe | 1991 | 42.60 | 1.40 |
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