It has never been hidden that wealth is unequally distributed in the society that we all live in but looking at it from the wider prospect, wealth on a global scale is also unequally distributed. It seems that the gap between the Global North and Global South seems to widen with the North getting richer and the South getting poorer. For example, Multinational Companies which are great sources of attracting Foreign Direct Investment to developing or developed nations are heavily concentrated in the Global North with only a few appearances being made in the south e.g. within the African continent. Another example is seen in the exchange rate for currencies in countries that are developing. Currencies within the Northern hemisphere have greater value than their Southern counterparts. I could go on with a list of evidence showing the growing gap between both hemispheres but that means i'd be here for a long time!
Due to a module I took up in my 2nd year of University, I've been inspired to do a lot of thinking concerning the best way for Developing countries to strengthen their economies rapidly. With evidence of growth in Export Orientated Economies such as the 1960s Taiwan and South Korea and failure in the Import Substituting Economies of 1960s Brazil and Mexico; it's rather confusing to come up with what would be an 'ideal' system of political economy to act as a catalyst for growth in the Global South region. Honestly, I've never been a very keen believer in the doctrine of 'sharing wealth' or any other form of socialist propaganda. Rather I believe more in the system of Fiscal Prudence and wealth creation as it stimulates the economy and encourages Business and Enterprise. One may try and slate my argument by stating that such a system will undermine the working class. My response........NONSENSE! If for anything, such a system moves the working class to a more stable middle class level but i'd rather not go into that argument now.
Anyhooo, So i've decided that on developing the Global south, Governments in Less Developed Nations should adopt the Economic Theory of Classical Political Economists such as Adam Smith or Structuralists Methods such as that of Friedrich List (whose Ideas i admire but I do not believe would be able to work in an economy that is not fully ridden off of Corrupt Officials). Investment in the citizens through training and education is vital to having a productive workforce. A system of compulsive education up until secondary level must be laid down with the individual having the choice to go down the path of further education or training (e.g. Apprenticeships) being provided upon completion of secondary education.
Secondly, I believe that a healthy nation is a productive nation. The Millennium Development Goals signed in September 2000 recognizes the need for the improvement of healthcare in a lot of nations. Investment in Research in medicine should be a government's priority. Every individual is entitled to Healthcare even though it is a valid argument that the provision of free health care to all is rather on the expensive side. However in developing nations, the turnout of profit from their resources such as Oil (aka Nigeria) is a so enormous that the government CAN afford to invest in a system that provides free basic healthcare for its citizens whilst it actively funds research in newer effective methods of treating illnesses.
Thirdly, a system of Fiscal Prudence. Basically the idea that one reaps what one sows. Governments in developed nations have been known to be selective in industry that they support that will encourage the country's economy to grow rapidly and to e honest this is an old trick that I believe dies hard. Selective but wise investment by Governments could be a key to unlocking development in Less Developed nations. For example, in my home country Nigeria, I believe that the dependence on Oil is a major pullback in the growth of the economy. I was shocked to read that in a country that is blessed with fertile land, we still IMPORT FOOD! I remember being taught in primary school about Cash Crops such as Cocoa, Peanuts, Palm Oil and today I honestly wonder if the Cash resource being taught is OIL. Should the government invest properly and develop a sensible Agricultural Policy that embraces modern and effective farming methods then truth be told the economy is bound to grow.
I also believe in Laws governing the workings of Multinational Corporations within a country. A multinational country moves to a host nation because it is business wise for them and obviously guarantees them cheaper production costs. However in return these companies must abide to rules that ensure that those that work for the company are treated fairly. For example employment laws must be upheld; ensuring workers are not taken advantage of in terms of wages, working hours, working conditions etc. Also Multinationals should be encourages in actually investing in their host nation as they in reality make more money than the GDP of the host nations in Southern Hemisphere economies. Investment in infrastructure and human innovation should be encouraged and perhaps could be drafted into a contract of the terms of which a Multinational can come into a host nation. The host nation in return should perhaps be able to provide credible security and play its role in providing durable infrastructure to at least attract Foreign Direct Investment into their nations via Multinationals
Well that's all I can come up with for now but I believe I should be able to complete this later
