In this topic: people who underestimate the importance of infrastructure and low crime and low corruption.
1st answer: developing countries don’t have enough infrastructure to benefit from wealth. Not enough trains to move raw goods around, not enough roads or not enough electricity to do anything even if those good arrived.
2nd level: when governments get the money for such projects, they steal it from the people through corruption. See Turkey and all the invested dollars on earthquake-proofing buildings, it was all stolen in ways people didn’t understand or realize until the earthquake happened.
3rd level: even if the government didn’t steal the money, criminals can. Even in the USA we deal with transformer thieves (transformers are bundles of copper that convert long distance high voltage power into short distance power for houses). These copper bundles can sell for $$$$ in the black market.
So even if #1 and #2 miraculously happen, a criminal will steal the infrastructure and they gotta start all over again.
Everyone knows how to make cities more advanced and better. Build highways, trains, mass transit. Invest into freight (trains or boats). Invest into education so that people can run these machines.
And many 3rd world countries advance forward. But it’s harder to do than it looks.
developing countries don’t have enough infrastructure to benefit from wealth
It’s even worse: they only have the infrastructure to allow us to profit from their wealth. Colonial powers made sure the railroad between the mines and the ports are top notch, so their mineral riches can be carted off efficiently to the metropole.
China and other advanced nations prove that an export based economy can work though.
I will say that export driven economies are very difficult though. See Taiwan and their export of chips. It only works because Taiwan is basically modern Vulkans / Wizards who have chip technology that no one else in the world has.
A system of top level universities to build that kind of knowledge and infrastructure is difficult and outside the reach of most countries.
You can see this in painful clarity watching the Argentinian railroads. Created and operated by the UK originally, it has a clear shape of a funnel from all over the country towards the main port city, Buenos Aires.
That’s a general pattern though - sea transport is the most efficient, thus railroads will tend to integrate around important ports. It applies even in the UK.
But the USA and western EU countries are rich, but, for example, China, India, Russia, Vietnam, Nigeria, Mexico and others are not very rich, how is this possible?
Even New Zealand is rich, but other island countries are not.
Culture and wealth. But wealth creates better culture, and better culture makes more wealth.
Only Russia seems to be the only country doing things wrong in your list btw. I expect China, India, Vietnam, Nigeria, and Mexico to all be richer in 10 years than they are today.
It takes a lot of hard work, smarts, and money to catch up but countries like those are scrappy and are doing good work to catchup. China is a bit risky, I think they’re funding it with too much debt though in weird ways, but their hearts and minds are at least in the right place with regards to expansion of their country, economy, and education.
China’s main problem is corruption. But everyone’s got corruption issues,.
Culture plays a big part. But people don’t like admitting it.
Was reading a book about the Congo and there was a Malaysian UN guy. He said this country fucked. He said colonialism had an affect on this country sure but it also had an affect on his. He said, in a nicer way, at some point they need to take responsibility for their country and short their shit out. They are responsible of the mess it’s in. Seen another doc where a Chinese guy was building a road but he couldn’t even buy gravel and in the Chinese words the local workers were lazy and they kept working a day, stealing stuff and not coming back. He seen a railroad the Belgians built that was in complete disrepair he basically said “look you inherited a functioning country with low crime, infrastructure and an encomy. You guys butched it all”.
Just look at Rhodesia, South Africa and God knows how many other countries.
In this topic: people who underestimate the importance of infrastructure and low crime and low corruption.
1st answer: developing countries don’t have enough infrastructure to benefit from wealth. Not enough trains to move raw goods around, not enough roads or not enough electricity to do anything even if those good arrived.
2nd level: when governments get the money for such projects, they steal it from the people through corruption. See Turkey and all the invested dollars on earthquake-proofing buildings, it was all stolen in ways people didn’t understand or realize until the earthquake happened.
3rd level: even if the government didn’t steal the money, criminals can. Even in the USA we deal with transformer thieves (transformers are bundles of copper that convert long distance high voltage power into short distance power for houses). These copper bundles can sell for $$$$ in the black market.
So even if #1 and #2 miraculously happen, a criminal will steal the infrastructure and they gotta start all over again.
Everyone knows how to make cities more advanced and better. Build highways, trains, mass transit. Invest into freight (trains or boats). Invest into education so that people can run these machines.
And many 3rd world countries advance forward. But it’s harder to do than it looks.
It’s even worse: they only have the infrastructure to allow us to profit from their wealth. Colonial powers made sure the railroad between the mines and the ports are top notch, so their mineral riches can be carted off efficiently to the metropole.
China and other advanced nations prove that an export based economy can work though.
I will say that export driven economies are very difficult though. See Taiwan and their export of chips. It only works because Taiwan is basically modern Vulkans / Wizards who have chip technology that no one else in the world has.
A system of top level universities to build that kind of knowledge and infrastructure is difficult and outside the reach of most countries.
Export based <> extraction based
You can see this in painful clarity watching the Argentinian railroads. Created and operated by the UK originally, it has a clear shape of a funnel from all over the country towards the main port city, Buenos Aires.
That’s a general pattern though - sea transport is the most efficient, thus railroads will tend to integrate around important ports. It applies even in the UK.
But the USA and western EU countries are rich, but, for example, China, India, Russia, Vietnam, Nigeria, Mexico and others are not very rich, how is this possible?
Even New Zealand is rich, but other island countries are not.
Is it all culture or not?
Culture and wealth. But wealth creates better culture, and better culture makes more wealth.
Only Russia seems to be the only country doing things wrong in your list btw. I expect China, India, Vietnam, Nigeria, and Mexico to all be richer in 10 years than they are today.
It takes a lot of hard work, smarts, and money to catch up but countries like those are scrappy and are doing good work to catchup. China is a bit risky, I think they’re funding it with too much debt though in weird ways, but their hearts and minds are at least in the right place with regards to expansion of their country, economy, and education.
China’s main problem is corruption. But everyone’s got corruption issues,.
Culture plays a big part. But people don’t like admitting it.
Was reading a book about the Congo and there was a Malaysian UN guy. He said this country fucked. He said colonialism had an affect on this country sure but it also had an affect on his. He said, in a nicer way, at some point they need to take responsibility for their country and short their shit out. They are responsible of the mess it’s in. Seen another doc where a Chinese guy was building a road but he couldn’t even buy gravel and in the Chinese words the local workers were lazy and they kept working a day, stealing stuff and not coming back. He seen a railroad the Belgians built that was in complete disrepair he basically said “look you inherited a functioning country with low crime, infrastructure and an encomy. You guys butched it all”.
Just look at Rhodesia, South Africa and God knows how many other countries.
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