Rightsizing Nations

For nations, size matters.

The United States can afford aircraft carriers; Costa Rica cannot. The more populous a nation, the lower the cost per taxpayer of highways, schools, and public safety. The more domestic consumers, the larger the scale of markets unfettered by trade barriers. The larger a nation's economy, the greater the diversity of jobs available to workers.

But greater size comes at a cost: the more people, the more potential for conflict. This trade-off between the benefits of s...