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Well, Taiwan and Singapore are able to be competitive in the world market, despite being very small and lacking major resource advantages or big militaries. They do this by developing very sophisticated expertise and pressing the few very particular advantages they have.
Taiwan absolutely found a niche. Its manufacturing capability is what makes it a strategic ally for the US.
Singapore’s niche is more like several niches from financial services to precision manufacturing and medical research. But it all runs on their skilled workforce. Not “politics.”
A niche will be based on whatever you have. If you have nothing but cheap labor, that’s not great, but it is something. To sell that labor to wealthy foreign corporations isn’t just getting dominated by them, it’s how China has raised millions out of poverty.
Being poor and undeveloped is a shitty hand to try to play, but that doesn’t change the game. Use what you have. Find what you’re best at.