2023-06-25 08:03:54
In the midst of the more difficult economic events of the past period, it is quite common to hear that it is thanks to rich countries that poverty is so strongly present in poor countries. This argument can often be heard from experts and politicians on a daily basis. However, the historical facts show something completely different. Even in ancient times, imperialism was the standard, but neither Rome nor Greece succeeded in bringing about serious economic development. Just as in the case of today’s states, the state treasury is enriched by the taxes and looting of the conquered states, but the average people feel nothing. Could poor countries also do something to not remain poor? It is also typical that the states that practiced predatory farming remained poorer than those that operated with a calm market economy. Thus, in Africa, Benin is not one of the countries with outstanding performance, while Mauritius and Botswana can show particularly good economic results. If you look at Europe, Sweden put together a particularly bad economic record when it was building an empire. However, after the collapse of the empire, with good governance and economic reforms, the country is now considered an economic star. In the same way, Japan was forced to experience serious economic difficulties in the midst of its imperial dreams. There is also a difference in productivity between poor and rich countries. Taiwan, South Korea or even Singapore do not have significant mineral resources, but thanks to productivity and innovation, they have risen to the top. Then it also matters how much capital inflows are supported and how favorable the environment is. After all, people are much more motivated in an environment that promotes entrepreneurship and production, than in one where their efforts are limited. Rich countries use capital and technology more efficiently. So if a poorer country produces, say, 10,000 tons of sugar, a richer country will take 20,000 tons, just by increasing its efficiency. Increasing the quality of human capital also helps to increase efficiency. So if we blame rich countries for the poverty of poor countries, we leave them in the trap they are in. Because a significant number of poor countries also receive serious aid, but they do not use it in such a way as to get on the road to development.
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