Imagine that a country has oil and when they mine it they sell to other countries because they have no refineries. That means they will have to buy back the processed product such as fuel, kerosene and others from those same countries. How will such a grow? Lol. These are the kind of things that they need to be looking into, and others as well. Some of them have plenty good resources that they are yet to tap into and that’s causing them to fail.
But, if they should discover these resources and look into them, it’s going to help them go a long way in the development of their country.
Topic: INFLATION IN THE UNDERDEVELOPED COUNTRIES (Read 3642 times)
Inflation in the developing countries results from poor ruling from their leaders and also they depend more on other countries for important needs but some countries outperformed the dependence by making demand for their products in the world's market.
Well, developed countries too have a high inflation rate sometimes.
Well, developed countries too have a high inflation rate sometimes.
Developed nations don't want underdeveloped nations to be really developed, they want underdeveloped nations to keep depending on them, this way developed nations make more money by flexing on their natural resources in return for aid as a bribe to ensure their leaders maintain the status quo. This world economy is not balance you need to be ruthless and clever to beat their game
As they say, charity begins at home
Or everyone for himself (and devil take the hindmost), and it equally applies not just to men only but to entire nations as well, the meaning being that every nation must work independently toward their own success. So it is not like developed nations don't want underdeveloped nations to be developed or developing, it is just competition where no one really wants anyone else to be more developed than themselves
Developed nations don't want underdeveloped nations to be really developed, they want underdeveloped nations to keep depending on them, this way developed nations make more money by flexing on their natural resources in return for aid as a bribe to ensure their leaders maintain the status quo. This world economy is not balance you need to be ruthless and clever to beat their game.
It is true to a certain extent. The former colonial powers don't like strong leaders coming from the developing nations. Whenever such a leader emerge, they will try to topple him, or if that is not possible then they will finish him off. This has happened to people such as Thomas Sankara of Burkina Faso and Patrice Lumumba of the Democratic Republic of the Congo.
Developed nations don't want underdeveloped nations to be really developed, they want underdeveloped nations to keep depending on them, this way developed nations make more money by flexing on their natural resources in return for aid as a bribe to ensure their leaders maintain the status quo. This world economy is not balance you need to be ruthless and clever to beat their game.
You don't have to be a self-sufficient country but at the same time when you eliminate the corruption in the politics you could literally make ANY country in the world get better as well. I am not talking about something magical here, think about all the corruption and all the bad management by the politicians and remove them out of the question and you have a nation that is instantly better, how could a nation be any worse when you remove corruption?
It is impossible. With all of that gone and with more money and taxes used more properly you could definitely start to invest into farmers, than invest into factories that could use those farm products and start to sell to other nations. That is not being a self-sufficient country, you could still buy stuff from other nations but at least you will be in less of a debt.
Look at Germany, they have excess amount instead of a nation debt in the past 2 years. That is what nations should be aiming at, which is not impossible. Not being self-sufficient, but try to have less debt by removing corruption and using it for betterment.
It is impossible. With all of that gone and with more money and taxes used more properly you could definitely start to invest into farmers, than invest into factories that could use those farm products and start to sell to other nations. That is not being a self-sufficient country, you could still buy stuff from other nations but at least you will be in less of a debt.
Look at Germany, they have excess amount instead of a nation debt in the past 2 years. That is what nations should be aiming at, which is not impossible. Not being self-sufficient, but try to have less debt by removing corruption and using it for betterment.
The world economy keeps crashing with many incidence of inflation. What is happening at the moment is a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?
It is almost a common idea of inflation in the present world When money for the development of a country increases it becomes inflation. I think there is nothing to blame on anybody here no difference between developed and developing countries it leads to equal loss everywhere.
One of the best way to make the economy of country stronger and stable is the promotion of its local products. Instead of importing things from other countries, under developed countries have to focus on the production and promotion of their own products. Governments should make the products of their own country easily accessible and purchasable for the citizens. This will make the economy of country stronger
It doesn't work that way
In the modern world self-sufficiency (North Korea style) is a dead end. But you really don't need to be an Einstein to understand what makes the economy strong. The real way to get strong economically is to export something nobody else can produce but which everyone wants (e.g. the American dollar)
This gives you a competitive advantage, and if you have a lot of such goods, you are the king of the hood (in this case, of the whole world). Then you can choose among the bunch of producers whose goods you need to import, if at all. Put differently, export everything that is unique and import everything that is not
It will work
If it didn't work in the past, why should it start working now?
And you can't build a self-sufficient and competitive economy even in principle. For that, you would need highly qualified workforce, advanced technology and science in every possible field, as well as the whole gamut of natural resources by far exceeding those of any competitor. No country has that in their entirety, and ironically, most of that comes through competition (read, being open). Even China, with its huge population, lacks massively in a multitude of other important areas which prevent it from building a self-contained economy that would be competitive with open economies. They will have to compete with the whole world, and the world will just beat them with the raw power
And even if purely theoretically there were such a country, it would still be economically beneficial not to close or get closed in but to trade openly with your neighbors due to multiple effects of second and higher orders (for example, logistics). The Soviets tried to pull that trick off and they still failed miserably in the end. Mate, I have nothing against self-education (which feels to be the case here) but without a good book on economics describing all these ideas in greater detail, you may easily come to very strange conclusions like the one you draw here ("economic independence is the key to a country's progress and growth"). Progress and growth come through competition, and that is impossible without being open to the outside world
Would things turn around for good if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?
That's the right thing to do but no country can change immediately their current situation. Underdeveloped countries has a bad economy and one reason is due to debt, their debt has balloon since they borrow money and not spending it accordingly. In underdeveloped countries also, there's a lot of corruption happening as people usually can easily be bribed especially those who are in the government position so that would not help for a country to grow since they are just basically serving their personal interest instead of the public.
The world economy keeps crashing with many incidence of inflation. What is happening at the moment is a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?
These things are very easy to say, but extremely difficult to implement. First of all, innovative technology is patented. The scientists and researchers from the developed nations have the patent to most of the technologies and the developing nations can't really steal them. They can develop their own substitutes, which some of the countries are already doing (China, India.etc).
I think the inclusion within the countries involved is typically thanks to inflation This inflation is that the same in every country. If the currency inflation of a rustic increases an equivalent effect is altogether countries. the most explanation for inflation is that the rise of the currency within the country i do not think it's fair responsible anyone for this If the extent of development goes up currency inflation rises and if commodity prices rise thanks to political reasons the currency surplus is increased further It affects the economy of the country.
It is ridiculous that many currencies of developing countries are backed by the dollar, while the dollar itself, at the moment, is not backed up by anything.
Thus, inflation in a developing country is inevitable because it is under the direct influence of another economic system and a different currency.
If a collapse of the supply currency occurs, the native currency collapses with it. In addition, prices are constantly rising due to inflation and constant dollar cash injections into the economy.
The fact is that the United States of America has learned to maintain the price of its national currency at the expense of a strong army and through lending to different countries. The fact is that the United States lends at interest in dollars, and also carries out various trade operations also in dollars, and also supports with its army, as well as with the dollar, those countries in which the army is absent or has little force. I believe that as long as the United States takes a leading position in the world, the USD will successfully occupy the place where it is today.Thus, inflation in a developing country is inevitable because it is under the direct influence of another economic system and a different currency.
If a collapse of the supply currency occurs, the native currency collapses with it. In addition, prices are constantly rising due to inflation and constant dollar cash injections into the economy.
It is ridiculous that many currencies of developing countries are backed by the dollar, while the dollar itself, at the moment, is not backed up by anything.
Thus, inflation in a developing country is inevitable because it is under the direct influence of another economic system and a different currency.
If a collapse of the supply currency occurs, the native currency collapses with it. In addition, prices are constantly rising due to inflation and constant dollar cash injections into the economy.
Thus, inflation in a developing country is inevitable because it is under the direct influence of another economic system and a different currency.
If a collapse of the supply currency occurs, the native currency collapses with it. In addition, prices are constantly rising due to inflation and constant dollar cash injections into the economy.
Inflation in the underdeveloped countries isn't principally a financial marvel. It is brought about by auxiliary disequilibrium in the country's economy and must be constrained by guaranteeing similarity among the different basic components of the national expenditure.
As yield increases after some time it wil l be fundamental to extend the cash supply so as to evade deflation, First, as nationa salary expands the requirement for cash for exchanges purposes wil l increment.
Second, as the economy creates the non-adapted part wil l de-wrinkle and the size of the adapted part will build; this wil l require an additiona l extension of the cash supply. Third , as incomes ascend there is a propensity for money adjusts to increment quicker than the pace of increment of genuine pet capita pay, I e, the cash income proportion rises.
The comhination of these three elements isn't likely to bring about a noteworthy development of credit, yet any further increment in the cash supply will he inflationary.
As yield increases after some time it wil l be fundamental to extend the cash supply so as to evade deflation, First, as nationa salary expands the requirement for cash for exchanges purposes wil l increment.
Second, as the economy creates the non-adapted part wil l de-wrinkle and the size of the adapted part will build; this wil l require an additiona l extension of the cash supply. Third , as incomes ascend there is a propensity for money adjusts to increment quicker than the pace of increment of genuine pet capita pay, I e, the cash income proportion rises.
The comhination of these three elements isn't likely to bring about a noteworthy development of credit, yet any further increment in the cash supply will he inflationary.
The world economy keeps crashing with many incidence of inflation. What is happening at the moment is a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?
the worse the trade, the more a country will not be able to develop and will soon be outdated. I think trade is very important for any country that wants to thrive. But what about countries with poor resources like those in Africa? I think they should be more focused on technology and decentralized markets, because they can get rich with their intelligence without producing anything. There are quite a few rich people who rely on crypto trading, it seems that underdeveloped countries need the crypto market.We have a limited resources but unstoppable growth of population so that was too hard to develop an underdeveloped country without resources because they will rely on another country if they want to become successful. That was not easy to growth crypto in the whole world because not all person havent any access to technology. That's why we can't say that crypto can burn down fiat soon.
The world economy keeps crashing with many incidence of inflation. What is happening at the moment is a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?
the worse the trade, the more a country will not be able to develop and will soon be outdated. I think trade is very important for any country that wants to thrive. But what about countries with poor resources like those in Africa? I think they should be more focused on technology and decentralized markets, because they can get rich with their intelligence without producing anything. There are quite a few rich people who rely on crypto trading, it seems that underdeveloped countries need the crypto market.
The world economy keeps crashing with many incidence of inflation. What is happening at the moment is a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?
the worse the trade, the more a country will not be able to develop and will soon be outdated. I think trade is very important for any country that wants to thrive. But what about countries with poor resources like those in Africa? I think they should be more focused on technology and decentralized markets, because they can get rich with their intelligence without producing anything. There are quite a few rich people who rely on crypto trading, it seems that underdeveloped countries need the crypto market. The issue is a lot more complex than most people might think. The first world countries perfected the art to pull the wool over third world countries heads, because they arrange trade agreements to favor them and they make sure that they extract as much raw resources as possible from these countries and then refine or manufacture goods from this raw material and then sell that at inflated prices back to those countries.
Some governments make bad political decisions and then 1st world countries would boycott them and this will hamper economic growth. The 3rd world countries are then forced to loan money to fund large infrastructure and development projects and the debt spiral will start pulling them down and they will start printing more money that would devalue their local currency.
Some governments make bad political decisions and then 1st world countries would boycott them and this will hamper economic growth. The 3rd world countries are then forced to loan money to fund large infrastructure and development projects and the debt spiral will start pulling them down and they will start printing more money that would devalue their local currency.
You are right this question is really more complicated than it looked initially. More developed countries have an extremely strong influence on less developed countries, which often have to dance to the tune of developed countries in order to maintain their economy at least at some level. Or for example, how the United States delivers products to Africa at low prices, completely killing the country's agricultural economy,
which is more expensive than buying cheap products from the United States. Thus, the United States provides its citizens with work depriving it of Africans.
One of the best way to make the economy of country stronger and stable is the promotion of its local products. Instead of importing things from other countries, under developed countries have to focus on the production and promotion of their own products. Governments should make the products of their own country easily accessible and purchasable for the citizens. This will make the economy of country stronger
It doesn't work that way
In the modern world self-sufficiency (North Korea style) is a dead end. But you really don't need to be an Einstein to understand what makes the economy strong. The real way to get strong economically is to export something nobody else can produce but which everyone wants (e.g. the American dollar)
This gives you a competitive advantage, and if you have a lot of such goods, you are the king of the hood (in this case, of the whole world). Then you can choose among the bunch of producers whose goods you need to import, if at all. Put differently, export everything that is unique and import everything that is not
It will work.
Economic independence is the key to a country's progress and growth. Effective demand or the purchasing power of the people in the country must be the basis of economic growth. This means that the growth development strategy through equity or growth with equity-oriented domestically. The populace in the economic system emphasizes the importance of prioritizing the interests of the people and the livelihoods of many people, which is sourced from the people's sovereignty.
The truth is state development not development in a country. Poor and developing countries must consciously form a pattern of national production (pattern of production) based on domestic resources themselves. Avoid Manufacturing sectors that depend on foreign countries, become import-dependent. The high import contents in manufactured products, as evidence of the government not building an economy in accordance with our natural resources (resource-based), but there is the influence of the "import-business" skipper who has microeconomic interests, which often conflict with efforts to restructure the economy macro. Therefore, we still have to carefully distinguish between economic recovery efforts (the style of the IMF and neo-classical ones) and reformatory economic recovery (macro) which contains the aim of economic restructuring, namely overcoming structural imbalances.
Relying on state revenues from the export sector alone is disastrous, especially if there is a global economic slowdown and a weakening dollar. Domestic consumption but made into a country's macroeconomic fundamentals.
Poor countries do not want to only be a market for developed country products. There must be a joint movement for the benefit of citizens so that the economy can spin in poor countries. The views of developed countries towards poor countries are as follows: Poor countries do not mean they do not have the ability to buy. still have purchasing power, although it is weak compared to developing or developed countries. This country is what in the economic world is called the bottom of the pyramid (BOP). The amount is greater than developed countries.
With the consolidation of the bottom of the pyramid, poor countries can be independent. Action that can be done is to stop imports and start exploring domestic resources and capabilities. No need to grandiose to develop advanced infrastructure. It is enough to keep the money going in the country. As citizens, we can support government programs by loving and buying domestic products. Avoid shopping at supermarkets that are owned by foreigners. Always shopping at traditional markets around our area. So that money continues to revolve at the bottom of the pyramid, which in turn, prosperity and progress for the poor.
Learning from the American trade war against China, the ultimate goal is the independence of US manufacturing of Chinese products. Developed countries just try to be as independent as possible.
One of the best way to make the economy of country stronger and stable is the promotion of its local products. Instead of importing things from other countries, under developed countries have to focus on the production and promotion of their own products. Governments should make the products of their own country easily accessible and purchasable for the citizens. This will make the economy of country stronger
It doesn't work that way
In the modern world self-sufficiency (North Korea style) is a dead end. But you really don't need to be an Einstein to understand what makes the economy strong. The real way to get strong economically is to export something nobody else can produce but which everyone wants (e.g. the American dollar)
This gives you a competitive advantage, and if you have a lot of such goods, you are the king of the hood (in this case, of the whole world). Then you can choose among the bunch of producers whose goods you need to import, if at all. Put differently, export everything that is unique and import everything that is not
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