perseus
Active member
Nearly all of today’s rich countries have become rich through the combination of protectionism, subsidies, and other policies which they advise and sometimes force developing countries NOT to adopt. The performance of developing countries were better in the ‘bad old days’ of state led development, than during the following period of market oriented reform.
I can guess few people agree. However, here are the policies of two developing countries, one today, one in 1880. Can you name these countries?
Country 1:
I can guess few people agree. However, here are the policies of two developing countries, one today, one in 1880. Can you name these countries?
Country 1:
- heavy restrictions on cross border capital flows,
- a state owned banking sector,
- many restrictions on foreign ownership of financial assets,
- foreign firms discriminated through differential taxes and regulations,
- riddled with corruption,
- large number of state owned enterprises making losses
- propped up by subsidies and government granted monopoly rights.
- the most protectionist trade policy in the world with industrial tariff rates at 40-55%.
- most population can't vote
- vote-buying and electoral fraud is widespread.
- corruption is rampant with political parties selling government jobs to financial backers.
- they have never recruited a civil servant through an open competitive process. public finances are precarious.
- they discriminate against foreign investors, whilst foreigners are prohibited from becoming directors especially in the financial sector, and foreign shareholders can’t exercise their voting rights.
- there is no competition law preventing cartels, and other forms of monopoly,
- they often refuse to protect foreign copyrights.