The Mudcat Café TM
Thread #67936   Message #1141892
Posted By: Strick
20-Mar-04 - 04:49 PM
Thread Name: BS: slavery, poverty and culture
Subject: RE: BS: slavery, poverty and culture
Ah, but there's a host of problems with that McGrath. A simple one. It's not enough to just give money to poor countries, even assuming the money won't get skimmed off before it does any good. Giving money to poor countries alone doesn't solve the basic problems that cause it to be poor. They benefit only when the money is invested in education, infrastructure, factories and other things that create long term jobs. The catch is that those investments can't really be productive on their own; the country's too poor to buy what it produces from that investment, at least in the beginning. The investment will only pay off if you drop trade barriers as well, open your markets to the poor country until it can become rich enough sustain the investments.

Unfortunately, that will look as if you're exporting jobs to the poor country. I'm not saying that the current export of jobs from the rich, developed world is intentional, that corporations are trying to help developing countries out of the goodness of their hearts, but if you don't drop trade barriers to those countries so they can sell you what they produce for less than you make it for yourself, you will straggling any investment you do make in them. You can't help a poor country by just sharing your money or technology with them. You have to share your jobs, too.

That's not a politically popular observation, at least in the US, but I believe it's true.