Four winners for 2012

Not every country was burning up in 2011—from natural disasters, emerging market growth frenzy or developed nation bloat. Four countries showed  how smaller  players have found equilibrium, overcoming population size to become beacons of hope. Some, such as Cuba, are only just starting out to reform after decades of totalitarianism. Others, such as Australia, have been lucky countries for years and they just keep doing things right. Here are four to watch in 2012.

Doha City, Qatar | Photo: Gavin Hellier

QATAR

The tiny Arab state of Qatar is rich in oil and gas reserves. It is home to the world’s wealthiest population. Its sovereign-wealth fund owns chunks of western companies, ranging from London’s Harrods department store to Hollywood’s Miramax studio. In 2010, its economy grew by 19.4%, the best showing on the planet. Yet, as impressive as all that was, the emirate of roughly 300,000 citizens has not been a leading actor on the world stage—at least until this year. In 2011, the former British protectorate put on an impressive show, tossing its weight around in arenas ranging from politics to professional soccer.

First, the peninsular nation on the border of Saudi Arabia where summer temperatures can reach 50° C caused an uproar among football fans last December when it landed the hosting rights to the 2022 World Cup. This year, Qatar responded to the critics with a startling proposal: local scientists plan to build solar-powered robotic clouds to shade stadiums and team training grounds.

It’s on the political field, however, that Qatar’s new influence has been most pronounced. The country is currently playing a key role in the diplomatic efforts to end the political crisis in Syria. In Libya, it provided air force support to help protect civilians during that country’s eight-month uprising. Qatari soldiers even joined Libyan rebel forces as they battled Moammar Gadhafi’s troops. As the Economist recently noted, little Qatar’s military muscle “bolstered NATO’s bombers and drones and—more than any other Arab country—helped oust Colonel Gadhafi.” All the while, Qatar-based news organization Al Jazeera offered relentless coverage of the Arab Spring movement, helping to influence public opinion across the Middle East and North Africa.

Sydney, Australia | Photo: Scott E Barbour

AUSTRALIA

Down Under, the year began with a surprise quarterly contraction in GDP after storms and record flooding destroyed billions of dollars’ worth of crops and disrupted coal and iron ore exports. But the economy recovered in the second quarter, growing at its fastest pace in four years and allowing the country to avoid a recession for its 21st consecutive year. The economic strength even hampered the Occupy Sydney movement, thinning the ranks of weekend protesters come Monday as many had to return to work. (Australia’s unemployment rate is about half that of the U.S.)

Havana, Cuba | Photo: Connor McCullough

CUBA

The nation made great strides this year toward reforming its moribund, centrally planned economy. President Raúl Castro created a property market by ditching the ban on buying and selling real estate that his brother Fidel had put in place. That followed liberalization of the automotive sector and legalization of self-employment in many areas, from construction to transport.

Reykjavik, Iceland | Photo: Bjarki Reyr

ICELAND

Portugal, Greece and other sovereign disasters could learn a thing or two from Iceland. When the island nation’s banking system imploded during the 2009 financial crisis, it became economists’ favourite case study of banks behaving badly. But Iceland’s government never accepted responsibility for its financial institutions’ debt obligations. As a result, the GDP is no longer in free fall, and the country is once again seen as a possible future addition to the euro zone.