There is this same story, whether it is crypto, climate, or economics: A big, powerful country comes up with a “breakthrough” idea - green energy, digital money, new work models. Suddenly, poorer countries feel pressured to copy them, even if the context back home is totally different. It is FOMO, but in a macro scale. No one wants to be left behind, right?
When rich countries set the pace, poor countries rush to join the race, sometimes without the safety net or resources needed to handle the risks. Governments push “green” policies, hoping to cash in on foreign demand. Look at Malaysia and Indonesia. They are exporting so-called “used cooking oil” for sustainable aviation fuel. But the numbers do not add up. Malaysia reported 3 times more exports than what it could possibly produce. Most of it wasn't even used oil at all, but fresh palm oil being rebranded. Why? Because the global price for “used” oil is almost double the price for fresh oil. It's just a money game. In 2024, the EU reported using 2 million tonnes of palm oil waste for fuel, but the world only produces about 1 million tonnes. That gap is a sign that the rules made a market for faking it
The same thing happened in Northern Ireland with their renewable heat incentive. They paid people for burning wood pellets. But because the reward was higher than the cost, people started heating empty buildings just to claim free cash. In the end, it cost taxpayers nearly £500 million, and didn't really help the climate
It is impossible not to feel the pressure when you are a smaller economy. People feel the weight of being left behind and the pressure that comes with racing after someone else's finish line. Workarounds and rule changes just add more tension that arealdy lie in our daily decisions. As a policymaker in a poorer country, you fear that unless you play along, you will lose out on investment, technology or employment. However, the truth is that blind imitation of the rich nations can be counterproductive. You may find yourself in poverty traps, or even worse, such as when the people in Ecuador remained poor intentionally, so that they could continue to receive support payments. We have fraud, easy money, and false development, while normal people continue to suffer
And when the incentives suddenly change, it is the small players who are the most affected. The wealthy nations are able to adjust. The poor one are left with stranded investments and lost jobs. Indeed, people desire dignity and a better life. But incentives should fit the place and people, not just copy what works for the big guys. We must have honest discussion of what we actually need, and what we can handle, before we jump into the next international FOMO