Poor Nations Ready to Try Something Else, Why Not Try What Works?
|December 4, 2013||Posted by Staff under Activism|
This 2013 excerpt of the IPS, Nov 25, is by Samuel Oakford.
Though the percentage of people living in extreme poverty (less than 1.25 dollars per day) has declined in LDCs, their numbers have increased due to population growth.
While the economies of LDCs expanded yearly by over 7.5 percent in the decade before the 2008 financial crisis, employment growth per annum stood at just 2.9 percent between 2000-2012, barely ahead of the population growth rate of 2.3 percent.
If high growth couldn’t buoy the job market during boom years, a period of slower increases will require specifically catered policies to spur employment.
In Namibia, the government has set up a national mining company, hoping to replicate Chile’s CODELCO and not the bloated state-run enterprises of post-independence Africa.
If Chile is a model for mineral exporters, garment producers look to Taiwan, South Korea, and Singapore, all of which began by manufacturing textiles before graduating to more complicated consumer goods and electronics.
Ed. Notes: As usual, the wannabe problem-solvers want to tax the businesses that have succeeded, which reduces their success and does not necessarily create success for anyone else. It’s like the swing of the pendulum from leftwing mistakes to rightwing mistakes and back again. How can well-meaning people be so blind to the land? All three of the Asian examples cited — Taiwan, South Korea, and Singapore — first implemented land reform. Not taking land away from large landholders but by taxing the value of land, so owners sold off their excess, usually to their tenant farmers, at prices the landless could afford. The thousands of new family-owned farms is what founded the bedrock of the Asian Tiger miracle economies, and its a reform that could work anywhere. Longer ago, it also worked in Denmark, California, Australia, and New Zealand. Look where their economies are today!