Hey /biz/, what's the best way to economically develop a third world nation?
Let's say you are now president of a country such as Nigeria, Colombia or Indonesia.
What's the best strategy to develop infrastructure, increase industrial production, modernize agriculture, and raise the people's purchasing power?
Hard mode: using national capital only
First, I would try to grow the local economy and try to rely less and less on foreign aid. I would start with agriculture so I would try go grow all the foods a country would need on our own. I would then strengthen other necessary parts of the economy, like housing, water, etc. After that, I would work on getting natural resources from my country to export to other countries to build a global presence. Education would also be a top priority. Can't have retards running around. And then eventually I would work on leisure, after all the important stuff is taken care of. All of this while being a capitalistic nation of course.
This + good government, heavy investment in education and infrastructure, aggressively uphold the rule of law and property rights, attract FDI and also invest in technologies that domestic firms can exploit.
I honestly don't think it's as complex a process as people think. The problem is the practicality and how shitty and ineffectual most developing world governments are.
How exactly can education be good, and how can you realistically achieve it?
India has a lot of people good in STEM but they all leave the country to work elsewhere.
And building more schools or universities won't make a population as a whole smarter, it will just get the government in debt and generate temporary jobs.
I'm pretty redpilled, I agree with /pol/ that mass immigration is bad, feminism is complete nonsense, that niggers are inferior and so on. But "Mass genocide. Replace with white people." doesn't sound like a very good plan to me. It's esentially the same mentality as that of tumblr.
>cis white people are bad
>let's kill them all and replace them with trannies
Singapore is a meme city state that only git gud because the neighbors are shit and it lies right at the Strait of Malacca. Also pegging the currency to sharia-Brunei's petro-coins. Yeah, it's gonna be a good day when the Thorium Revolution turns oil from a necessity to something cute.
It is a command economy that has more in common with Gobunist China and Worst Korea than it has with Hong Kong or Macao or even Taiwan.
>What's the best strategy to develop infrastructure, increase industrial production, modernize agriculture, and raise the people's purchasing power?
get rid of the internal conflicts that fuck shit up in your country.
population is split - around 50% christians, 50% muslims. religious turmoil has been crippling the nation for decades now. boko haram is just the latest in a long series of inter-faith violence.
organized crime, especially drug trafficking, is a nightmare in this nation. it goes hand in hand with severe corruption throughout all ranks of state and government institutions, and this corruption in turn also fucks up everything else.
not as fucked as the other two nations you named, but still has its problems. the population is almost entirely muslims, and trying to implement any kind of progress that goes against shariah will rile up reactionary and radical elements among them. muslim culture in general is extremely hostile and oppressive towards innovation, which hampers development attempts.
National Socialism works in a homogenous society with common goals. Just because you call us Nazi's doesn't mean we want to hand over all our taxes to Jamal and his 10 kids. Don't ever try to get clever with me again, slippery kike.
Also the anti-chinese sentiments in Indonesia (and Malaysia). The 1998 riots in Indonesia targeted chinese properties with surgical precision.
Gee, wonder why it's so hard for people to copy the successful concepts of the US - rule of law etc. Yeah, the "In Gob We Drust" is just a window dressing meme.
>National Socialism works in a homogenous society with common goals.
Are you implying that it hasn't been tried yet? Because Germany is - just like the US or Italy - a highly regional country. The preussians considered the national socialists to be bavarian scum. Food for thought, eh?
neither italy nor germany say a lot about the economic merits of national socialism, seeing that both countries only operated under the ideology for a very short time before being crushed by foreign powers in war. neither suffered internal conflicts or economic decline under the system, quite the opposite actually.
germany had already been a superpower pre ww1 (by far the biggest in the world at the time). attributing its return to the top of the world to national socialism isn't entirely accurate - germanys recovery came pretty much automatically as soon as the harsh post-war sanctions were abandoned.
>losing a world war
Sorry for making you derail the thread by mentioning Italy.
The point is that Germany isn't that gomogonoous society that you try to imply. It's highly regional - just like how the US or Italy is.
And even before the war, the writing was on the wall - national socialism destroys the economy.
Just check out how Hong Kong performed after the war. "Despite" having a smaller population and no natural resources.
On the other hand, Faildolf Gibler even managed to fuck weapon programs up, because he, in one of his strikes of genius, had discovered that a weapon program have only one year to deliver.
I keep my politics and my business separate, but you know.. I've done extensive regression analyses on Sub-Saharan Africa and their lack of growth...
...literally couldn't find a single major set of explanatory variables to explain their shit-tier growth.
Race was not included in the independent variables listed.
>how exactly can education be good
Dude it's pretty much taken for given that a lot of teachers in the developing world just pay bribes to get good steady pay and then either don't really try to teach the kids or literally just don't show up, this is a massive problem in many countries.
I don't know why you're struggling to differentiate between good and bad quality education, the first involves good teachers with appropriate resources actually teaching kids to read, write and numbers, the bad implies the opposite
I live in a third world country. Brazil to be more specific. The problem, most of the times, isn't the teacher. It's often the students who are to blame. Here, you might know it well, there are the favelas, but favelas themselves have their own kind of culture. Favela children are like the black Americans of the worst parts of Brooklyn. They steal, listen to hip hop out loud, are violent and so on. A lot of public schools have that kind of student, and just a few for every classroom is enough to ruin a teacher's day. Now imagine having to deal with that several days over, under the hot sun of Brazil's weather. If you ever see this kind of scene with your own eyes, the first thing you might think would be that the teacher is trying to teach apes something. It's seriously ape tier behaviour.
What is funny though, is that Brazilian teachers can teach in different schools. Its common for a public line teacher to teach in a private school. Private schools are really great, they are comfortable and the kids that study there are often well behaved. They make up arround 15 or 20% of all Brazilian schools. The same teachers who will just don't give a shit about the apes in a public school will try very hard to make children of private schools to learn well.
Just as important as children's behaviour, there is the fact that private schools pay on average 5 times more their teachers than public.
So it's clear that there are two reasons why teachers behave differently in each schools.
1) the pay
2) the children
Both of these issues cannot be easily tackled by a government. Changing the mentality of children when they are from the background of a third world country's standard of poverty is unthinkable to be done by a government, and you'd have to raise the education tax by 5 times so public schools are at least somehow comparable to private ones (private schools still do not have holes on their ceilings, are better smelling, have libraries, computers, etc)
Don't be such a tryhard. No one is impressed.
> The great French historian Fernand Braudel said, "In understanding Black Africa, geography is more important than history." Much of Africa's history was in fact shaped by its geography.
>Almost every great city in the world has arisen on navigable waterways — and such waterways are more scarce in Africa than in any other continent. An aircraft carrier can dock on the Hudson River in midtown Manhattan but there is not a single river where that is possible on the vast continent of Africa, which is larger than Europe or North America.
>Even smaller boats can travel only a limited distance on most African rivers because of cascades and waterfalls. Most of the continent is more than 1,000 feet above sea level and more than half of Africa is more than 2,000 feet above sea level. That means its rivers and stream must plunge down from those heights on their way to the sea.
A similar phenomenon can be observed in Europe. Western Europe has plenty of ice free harbors and rivers. Eastern Europe not so much.
This is the Congo Basin. It was first explored from the east. Because the Livingstone Falls prevented exploration from the sea.
It was not until railroads where built that you could easily go from the west coast to the Congo River.
>Livingstone Falls consist of a series of rapids dropping 1100 feet in 155 miles (340 metres in 249 km).
Still regressive racial analysis much?
>The Congo River has the second largest flow rate in the world after the Amazon, which has no falls or rapids (except near its sources).
And that's why the socialites in Manaus could send their laundry to Europe.
If you're a third world nation today you're fucked. Foreign investors are smart and will know how to fuck you over and get what they want; foreign governments have no real interest in seeing you succeed and their "aid" is just designed to benefit themselves indirectly.
- One-child policy for 50 years
- Mandatory education to secondary level for every child
- Flat tax rate for everything. For example 20 %.
- Cut government to minimum. Education, basic health care, internal and external security et.c..
- Remove a shitload of laws until basically classical liberal law system, people are free to do what the fuck they want unless they cause harm to others.
I lived in East Africa.
You can do all the analysis you want, but the only way to understand is to go there and look around..
Tribalism, corruption nepotism, greed short term thinking and all kind of failed political experiments from facism to marxism..
There are road in Kenya that are under construction for 30 years now... as the majority of the government funds get stolen by local project managers over and over again and again and again. And local workers steal the materials and equipment....
the only way for these countries to move forward is by being ruled with an Iron fist like Ghaddafi and Saddam Hussein did.. Thus shooting everyone who doesn´t work on the common goal
>- Remove a shitload of laws until basically classical liberal law system, people are free to do what the fuck they want unless they cause harm to others.
Kek. In most African countries laws only exist on paper. If you have enough you can get away with murder.. With money you can do everything..
In Kenya there was a Nigerian guy (with golden sunglasses rols royces and everything) He was accused of Importing 100 milljon dollar worth of Heroin.. he was out of prison in 3 days ´lack of evidence´´
He was kicked out of the country (flown back to Nigeria) he was back in Kenya after 1.5 month .. ´some visa errors and issues´ were made so was allowed to stay in Kenya.
Tax: most people never pay any tax ever.. As there are not enough (non corrupt) officals who can do the task and also because a lot of people have no birth certificate, never got registered at birth etc.. Also most people get pay cash and never had a bank account in their life.
Also healthcare doesn´t excist as such. You can only get medical help if you pay the doctor in cash.. otherwise they simply let you die in front of the hospital...
>- One-child policy for 50 years
An economy can't grow quickly with an ageing unproductive population and rapidly decreased tax base
>- Mandatory education to secondary level for every child
Easier said then done... parents would rather have their kids work for them and earn a meagre income
>- Flat tax rate for everything. For example 20 %.
>- Cut government to minimum. Education, basic health care, internal and external security et.c..
>- Remove a shitload of laws until basically classical liberal law system, people are free to do what the fuck they want unless they cause harm to others.
Most third world countries today cant even effectively collect taxes or maintain any form of regulations if they wanted to anyways.
als in most African countries there is no industrial production at all and never was any.
The majority are farmers.. just like Europe was before the industrial revolution in the late 19th century.
there are around 30 free trade zones in Kenya.
Foreign companies are allowed to do business there without paying any tax for a period of 10 years.. What happens is that all those companies close after 10 years and restart with a new name, so they have another 10 years of tax free business..
It doesn´t really work as a lot of them are only P.O box type of business with 0 (or only 1 or 2 who check the mail once in a while ) employees who only use it as a tax loophole.....
China has a massive population of peasants they can keep sucking into the cities to work cheap but this will eventually end in the not so distant future causing all kinds of problems
>There are road in Kenya that are under construction for 30 years now... as the majority of the government funds get stolen by local project managers over and over again and again and again. And local workers steal the materials and equipment....
It would be easier if they hired the USMC Engineer Corps.
>I would work on getting natural resources from my country to export to other countries to build a global presence
First part was good because it emphasized self-sufficiency, but exporting natural resources is a trap. It makes you reliant on external markets, and will not lead to developing the same industries as other countries. What a country needs is to use protectionist practices to build up their industry. If they don't then they'll enter the huge global market and have to compete with well established companies which are in every way better than them and get crushed. Do what the U.S did and slowly build up strength behind an economic wall before throwing yourself into the shark tank. Do not ever open yourself up to foreign investors until you have investors of your own that can compete with them.
>Hard mode: using national capital only
That's the only mode that works, unless you're willing to go up against international creditors who're scary than any third world warlord.
Of course it won't matter since you'll just get invaded by your neighbor who took on too many loans and now needs to sell your natural resource rights to Glencore. That's what you get for being a lefty nation builder though
>first of all, as a national socialist, I am not a socialist!
Best way to be to try and cut your deadweight losses and inefficiencies as fast as possible. Expand trade, make pacts with neighbors to cut tariffs, but keep them moderately high against rich foreign nations to benefit from the government revenue.
Introduce incentives to attract foreign capital, like a low corporate tax rate (not 0, but low) and generally make it easier to do buisness by cutting red tape.
Along that line, corruption needs to be attacked. Across the board, just an all out offensive on bribing, pocket lining, workplace theft, etc.
Enforce the rule of law without becoming a dictator. I would consider hiring foreign police advisors to help secure large rural populations.
Encourage your citizens to industrialize more as well. Education isn't really worthwhile yet. Think China before their recent surge: more factories, schools come later.
And I know this will get me slapped, but get women into the labor force. 1.5x the workers = a larger gdp = more production.
Use a strong central government to make your country an attractive place for large multinationals to set up and exploit your people/resources.
Literally every shit country that went to non shit or less shit used this approach (South Korea, China, Taiwan)
This is mostly accurate though.
Most africans are uneducated, especially in countries like Congo.
Bringing in educated white people (or educated people in general) would be a good first step.
1) Tell the World Bank and IMF to fuck off.
2) Place a tariff against all foreign imports
3) Subsidise domestic production
4) Setup a national bank for productive use of credit
5) Heavily invest in public infrastructure
This is the exact method every rich Western country used to go from poor to rich. It's also why the World Bank and IMF deny it to developing countries today.
1) deny yourself access to credit*
2) raise prices on goods businesses depend on to preserve defunct sectors of your economy*
3) raise taxes on businesses to subsidize things bureaucrats deem more necessary*
fix'd that for you senpai
>deny yourself access to credit
The credit extended by the World Bank and IMF is generally only for expansion of resource extraction industries, or other things that can provide immediate revenue to pay off the loans. Infrastructure development is off the table as far as they're concerned, and good luck recapturing the profit made off of exporting your countries natural resources.
>raise prices on goods businesses depend on to preserve defunct sectors of your economy
More like actually expanding your own domestic market and protecting it from powerful outsiders who would benefit from crushing you and creating a monopoly.
>raise taxes on businesses to subsidize things bureaucrats deem more necessary
Either that or see the wealth of your country siphoned off by foreign businesses, or foreign bureaucrats.
To do other than what the other guy said would fly in the face of the history of economic development in western nations. Look at Africa, or parts of Asia, or Eastern Europe and you'll see just what happens when you trust the west enough to actually enact their policies.
>Hey /biz/, what's the best way to economically develop a third world nation?
Find the US ambassador to my country and say we want to join the United States. Explain you are very serious. Leak to the news.
>1) deny yourself access to credit*
You can use your own credit by issuing your own currency. When the UK/France etc. needed money they just went to their national bank.
2) Capital circulates much more in an economy where funds aren't flowing to outsiders. Businesses would earn more money as a result of this.
3) No you don't raise taxes, you raise deficits.
> Changing the mentality of children when they are from the background of a third world country's standard of poverty is unthinkable
Parents of favelas was favelas growing up.
Take away parent and you are still left with a horrid monster, but counter indoctrination can be done at a age of 6 instead of whenever they end education.
>1) deny yourself access to credit*
Internal loans can be inflated if needs really be, or the rent can be adjusted. On the top of that, they are loans, meaning they are a net drain on your economy in the long run.
There is reason for taking loans(need savings of several years for project, meaning loan can make project happen now instead of later), but its generally a bad idea.
Also, it still does not deny you access to credits, since there is a lot more lenders out there than IMF.
>forced education/ every motherfucker gonna get learned in some sort of trade.
>outsource "teachers" from other countries
>apply for grants from un only focusing on getting some basic infrastructure
>wait a generation
>Enforce the rule of law without becoming a dictator
Cannot be done in a third world country. Jail time (free meals, safe walls) is a boon to too many citizens, especially the kind who become criminals (the assholes who fucked around and did nothing and now need food). The only punishment that will work is violence, that's why only poor nations are accused of having dictators in the modern world; the rich ones can afford not to
Genetically engineered retro virus that edits the genome and raises the IQ of the infected's offspring.
Brazilfag here, can confirm that what
>>1063261 said is correct.
I would just like to add that, as in all aspects of Brazilians society, education is corrupt af here, at all levels (from the secretary that negócio test kickbacks on the school lunch to teachers that simply don't go to their job while reaping the salary).
Fun fact: near Carnival, 900 teachers in my city didn’t show up to their jobs, citing "health problems". As they are gov't employees, there's a snowball's chance in hell they will be punished.
And don't get me started on their unions. They have their own left wing agenda and love to chimpout just to make non-left governors look bad. In my city, they spent some two month on strike last year. They are the kind of people that spit in a policeman 's face, get BTFO and shout "muh police brutality". Nigger-tier shit.
top kek, Friedman/Hayek destroyed that place. It only recovered after Pinochet did a 180 and reversed all the shit Friedman/Hayek were advising. See the banking crisis.
If you want to see miracle see this:
Huge state intervention won the day as usual.
Its 100% impossible.
Imagine how hardit is to double a companies value, then imagine a resourceless coutry when the only thing you have is cheap labor and so do 40 other shitholes.
Truth is they are completely fucked, and it shows why there genocide and invasions arent bad. Isis has a better shot at world domination than syria has a shot at 10kusd gdp per capita.
All the good leaders who knew this died during the cold war because they tried to change this. Now there are only pawns.
Countries like iran and n korea have 15kusd gdppc, but the us wouldnt wipe its ass with labor from them. Give us slave wage sweatshops or fuck off.
Oh and I mean COMPLETELY fucked. Nationalizing assets will always get you invaded by your creditors, so a lot of third world countries gambled on another vietnam, but they didnt get air support or rifles from the ussr
Not at all. A) Hitler didn't have the time to socialize/steal private property. B) He found out that it was easier to control people rather than their property.
The list of totally free enterprises in Nazi Germany can be counted on the fingers of hand of a fan inspector.
Probably. Parents in the Philippines who camwhore their kids aren't pedos. They are desperate for money.
Eliminate corruption & nepotism, allow monopolization of nascent industries, protect home markets from outflows of capital, limit wages and wealth but provide appropriate social class life, resource based to manufacturing to consumerist in that order without completely cannibalizing the former