Greece and Ireland have made heroic budget cuts. Greece is trying hard to free up its rigid economy. Portugal has lagged in scrapping stifling rules, but its fiscal tightening is bold.

High payroll taxes in many Latin American countries penalise workers in the formal economy, and rigid and over-generous Labour laws discourage the creation of formal jobs.

Schools and universities, for example, are vital for the shift to an economy driven by brainpower instead of cheap labour, but they remain state-run, rigid and mediocre.