Why is not effective for rich countries to give money to the poor countries to help them with developing ?
in economics, it's important clear identify *who* actual person or group of people talking about. many of errors of economics come people talking decision-making entities abstract aggregate concepts not exist in reality.
example, "country" not decision-making entity. refers 3 different things @ same time:
a) physical territory
b) people live there
c) state - i.e. group claiming legal monopoly of use of force on people living in territory.
economic development comes because of activities of people work , save , invest , undertake business ventures. purpose satisfy human wants recombining factors of production - such land, labour , capital - produce final products satisfy human wants better uncombined factors of production did.
when talk rich "countries" giving money poor, talking *states* taking money force or threats subject population (that's taxation is) , giving people controlling *state*.
once understand that, can see why development aid has been such expensive failure everywhere it's been tried. africa example has received hundreds of billions of dollars worth of aid in last half-century, , commonly considered development fail, if not human rights disaster.
foreign aid, i.e. political foreign aid, intrinsically corrupt. involves privileged elite using force , threats steal labour , product productive class in 1 country, , giving privileged parasitic class in country have no interest in productive activity, since live forced expropriations subject population. have interest in consuming donation in way best suits own personal , political interests.
in other words, political donations provide no way *align* money donated, satisfaction of wants of ordinary people, ostensible purpose.
way can done voluntary donations or investments, in businesses products produced , distributed voluntary means. rules out political schemes, , leaves charitable donations , market investments ways go, in theory, let alone before turn problems in practice.
economics not strong side. don't know if wrote true. i've heard economics point of view not way go, if give 100 million dollars poor country in africa won't them much. if true , why? thanks.
Social Science Economics Next
Comments
Post a Comment