Topic: INFLATION IN THE UNDERDEVELOPED COUNTRIES - page 3. (Read 3727 times)

That's assuming that they can even have control of their resources. Being many of these countries being shitholes many of the resource extraction are done by multlinational companies that would interfere in the politics of the country to keep ores flowing.

Even without foreign funding though, being these countries have few stable institutions, it's close to impossible for them to start operations on their own.

Given the amount of corruption that is in developing countries, plus the fact that many developing countries are raw materials appendages of more or less developed countries that,
as you said, buy raw materials from them at cheap valuable ones, sell back processed ones at more expensive one
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.

According to the Future of Jobs Report, World Economic Forum, there are five HR skills in industry 4.0 in the 2015-2020 timeframe. These skills if sorted are complex problem solving, social skills, process skills, system skills, and cognitive abilities. After 2020, cognitive abilities are expected to be the most needed skills, followed by system skills, complex problem solving, content skills, and process skills (http://www3.weforum.org/docs/WEF_Future_of_Jobs_2018.pdf).

Entering the industrial era 4.0 forced humans to enter two worlds, namely the real world and the virtual world. The Internet of things, which is the spirit of this era, conditions humans in a personal and communal way, relying heavily on the virtual world, which is increasingly complicated and smart. the shift from cognitive ability from fifth to first in 2020 makes it a challenge for all humans on earth.

To deal with the industrial era 4.0, it requires human resources who have flexible cognitive abilities, good logic, sensitive to problems, mathematical abilities, and visualization. We must become smart industrial 4.0 human resources, if not smart we can become victims of the 4.0 industrial revolution, the possibility that what happens is that we are not real anymore now entering the virtual world, but will become 'supernatural', because our existence vanished by itself. We are lost from the circulation and civilization of the world.

For poor African countries, the challenge will be multiplied. The main factor is how to think about becoming a smart human being while only to survive is very difficult (access to fulfill basic needs is minimal). Africa needs many opportunities for improvement in the quality of primary life. Opportunities needed by poor countries are access to employment to improve living standards, which also means investment in African countries.

China is now investing heavily in Africa and binding Africa with policy (OBOR). Even though China aims for Chinese interests, let's hope that the standard of living of the African people will improve.

I don't think this is a good idea. Foreign trade is very important for the 4.0 era, so that China has become the No. 2 power in the world based on its resources and cheap labor. so we should actively support poorer countries to trade more and what they need to do is improve the quality of their products to create credibility and there will be more demand from more countries. .
for example, in less resource-rich countries like Africa, they should focus on other things. be it a technology service or something that is not related to resources that can make money.

I know that well only industrial country that could process their raw material into something even more valuable could grow into a rich country take example of south korea and china they could become developed country from a poor country in short period of time and that's because they are industrial country and the chinese's growth after so much investors coming there is immense but now the turn for vietnam after the trades war. The problem with underdeveloped country is that they are always lacking common sense to process their own material and the corruption aswell. they still think about their own wealth and not for the entire country. but the weak currency that these underdeveloping countries have is also a problem for their advancement of the infrastructure.

The problem with national currencies that relate only to paper value and promises is that the unit of value is uncertain and this unknown factor to every transaction in that currency leads to a discouragement of business and so the governments action in not providing a stable currency and certain accounting causes secondary harm to the country's prospects.
   Think of all the demand for the US dollar, that works in reverse for all these little developing nations.  The bias we have in the system where every country wants to hold dollars causes a lack of investment elsewhere to occur.   Ideally we want all currencies level in their equivalence and the easiest way to do that has been historically via gold.    The modern answer right now is that crypto and specifically BTC is providing a certain standard that helps to facilitate trade across borders, between nations and people globally.

Every country wants to become rich despite of their resources and its normal for a country to impose such law so they can survive from a big fall. Well, in my country we have a small rate of inflation but as a third world country, corruption is too high and that stops people from growing as well. If only cryptocurrency can stop them, then its good for all of us political leaders should live for their people and not on their personal wants.

And this is because governments do not feel any need to change their ways, they get to do whatever they want, to pass any laws that they may like and if for some reason they begin to run short on funds they can always print more, what it is not to like about that arrangement? But like always they are being shortsighted, this cannot last forever people are not going to keep accepting this situation for long when for the first time in a long time they have an alternative in bitcoin.

Doing so is like making their country worse and worse. The subsistence economy has been undervalued for a long time and it's the worst strategy I've ever known. because an economy without trade with foreign countries will be outdated, the demand will also be significantly reduced. For example, you are holding gold and everyone has a lot of gold for a long time and no one wants to buy gold, so does gold mean anything for you?
so we should have a good trade with foreign countries. That is the way to help a country develop the best.

The problem with underdeveloped countries is that they just sell raw materials to developed countries for any cheap price. They don't manufacture their materials, they don't have their own technology and they don't export expensive commodities to strength their economies.
Only technological countries can be wealthy nowadays and offer life quality to their people, others will keep suffering with their poor economy and uncontrolled inflation levels, heavily intervened by the government.

Government not have new ideas how to keep their money keep higher value without inflation, almost countries not agree when talking about bitcoin can increase higher price than using cash money. But in reality government not agree want to adopt bitcoin and altcoin as payment transaction or looking other way by using gold for investing for less value transaction at the future.

The reason this happens is because governments get to spend whatever money they can print before inflation takes place, it is not only after they spend the money that they have created that this money creates inflation and the price of everything begins to go up, so governments not only have the advantage of printing their money but they get the advantage of being able to spend it before anyone else and before that money alters the price of all the products and services available.

Kinda make sense to think about your first statement considering that the system was designed that way. The third world countries are like the countries that struggles the most when it comes to crisis as well as having the biggest inflation. Other countries always sees the underdeveloped countries' currency as nothing but a thin paper whereas they both made by chopping off trees but backed up by different fundamental. However I think that it is the corruption that makes all those countries struggle the most, the crazy corruption could take up the entire countries GDP and left them being poor for yet another centuries.

The dollar is used as a benchmark exchange rate for various reasons, one of which is because initially the largest gold reserves in the United States, the United States who won the Second World War, the largest and most powerful military, and the highest Gross Domestic Product in the world. So it is natural that foreign debt is given in US dollars, especially if foreign debt is provided by the IMF with the aim of improving the balance of payments. because the aim is to improve the balance of payments, the IMF conducts a series of interventions that are considered effective in improving the economic conditions of a country accordingly but are often considered laden with political content.

A variety of IMF lending instruments are specifically designed for various balance of payment needs as well as the special conditions experienced by its diverse member countries (https://www.imf.org/en/About/Factsheets/IMF-Lending).

Inflation means an increase in prices and services continuously due to an increased supply of money circulated in a country. Basically inflation is not a bad thing, inflation is a sign that the economy in the country is productive and thrives. More goods and services are produced and distributed, there is an increase in employment as well as workers' wages. The problem is when inflation is uncontrolled.

We have to keep in mind that basically money has no meaning (worthless). Money is just a piece of paper or a coin bearing a certain value. The new value has meaning if he can give you something, such as can be exchanged for food or clothing, or other needs.

If a poor country wants to buy something from developing and rich countries, there will be exchange rates. The tendency of some poor countries will print money to overcome economic problems. If the amount of money in circulation is very large to pay for this exchange rate, there will be inflation and the value of the money will decrease and the exchange rate will be very bad.

The only way that a poor country can become rich is to produce value, both monetary value and production value. Each country must be able to measure its population in order to work productively. The formula depends on each country, what is the strength of their country, which is the biggest commodity and the character of the people.

I've read that the worst effects of inflation take place on those most removed from the source and of course a 3rd world country does not benefit from the cheap debt financing that comes form the original issuance of the currency.  So the citizens of the nation far from the inflation cause such as in the dollar global reserve system do not have benefits from that system that originate with the new currency or the biggest traders with that originating country, so EU, UK and Japan who all receive dollars not long after they are printed all gain by a more direct relationship.
   There is a historical bias to current economic systems that does not properly reflect the world growth that will take place in 2020 going forward.    Any good system has to adapt to what is true today not just the wealth of yesterdays production.

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.

Given the amount of corruption that is in developing countries, plus the fact that many developing countries are raw materials appendages of more or less developed countries that, as you said, buy raw materials from them at cheap valuable ones, sell back processed ones at more expensive ones.

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.

Third world countries were the big sufferers of the inflation. First world countries make plans to get recover through the third world countries. This further turns to be a burden for the third world countries which are at the edge of development. In such occasions the affected countries without any plan continue to take decisions which causes heavy inflation.

Another factor is the corruption, by this time to get rid of the inflation first world countries will impose hard market strategies to make themselves strong, and this also been done by making politicians fall for corruption. Very few country's political leaders stand against several policies by first world countries to make thyself overcome the inflation.

Government never control the inflation of money value, they only think with how to get profit with using cash money and never care whit their people saving money in the bank with long term period, how much money increase lower with inflation by saving money why not saving money with convert to gold or can convert with bitcoin and altcoin, if ten years have saving money in the bank you have miss big chance to increase your money if convert with gold or crypto.

Not all the case is that the inflation is based from the goods and the demand for it. Sometimes, the government can pass a law inducing inflation on goods but in return, they will provide a compensation through increasing the salary of the people. In particular, it happens with the tax inflation that affects the price of the goods.

In my opinion, this inflation could be solve simply by the citizens that will choose their own products rather than choosing foreign proucts.

I think the strongest weapon that a person can wield especially against corruption is to educate the people. It is because of ignorance that the people had been abused by this opportunistic politicians. To relate it with Bitcoin, if somehow a person could simplify the blockchain technology to a level where a beginner could comprehend and would be dedicated to know more about it by triggering there interest would be beneficial to both the cryptoworld and to them.