# How do you develop a developing country? **URL:** \ **Category:** Great Debates\ **Created:** [October 2, 2017, 6:05am UTC](https://boards.straightdope.com/t/how-do-you-develop-a-developing-country/797796 "2017-10-02T06:05:46Z")\ **Posts on this page:** 13\ **Page:** 2
**Author:** ![Nava](https://avatars.discourse-cdn.com/v4/letter/n/da6949/32.png) [@Nava](https://boards.straightdope.com/u/Nava)\ **Post date:** [October 6, 2017, 12:59pm UTC](https://boards.straightdope.com/t/how-do-you-develop-a-developing-country/797796/21 "2017-10-06T12:59:21Z")
> [@septimus](#): > > One interesting, almost paradoxical, point on this topic is that [natural resources can be a curse](https://www.theatlantic.com/international/archive/2012/04/why-natural-resources-are-a-curse-on-developing-countries-and-how-to-fix-it/256508/) for [developing countries.](http://www.slate.com/articles/business/project_syndicate/2012/08/why_resource_rich_countries_usually_end_up_poor_.html) Reminds me of the situation of colonial goods being sent to the metropolis, processed and sent back. In this case, similar situations are impulsed by direct local greed, but the end result is that there is little in the way of transformation, production or service industries: it’s “get the raw goods, sell the raw goods, buy pretty processed goods”. ---
**Author:** ![Really\_Not\_All\_That\_Bright](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@Really\_Not\_All\_That\_Bright](https://boards.straightdope.com/u/Really_Not_All_That_Bright)\ **Post date:** [October 6, 2017, 6:02pm UTC](https://boards.straightdope.com/t/how-do-you-develop-a-developing-country/797796/22 "2017-10-06T18:02:32Z")
> [@MrDibble](#): > > … I don’t think “have diamonds” is a portable model for economic development. _golf clap_ ---
**Author:** ![filmstar-en](https://avatars.discourse-cdn.com/v4/letter/f/50afbb/32.png) [@filmstar-en](https://boards.straightdope.com/u/filmstar-en)\ **Post date:** [October 6, 2017, 10:56pm UTC](https://boards.straightdope.com/t/how-do-you-develop-a-developing-country/797796/23 "2017-10-06T22:56:13Z")
> [@Nava](#): > > Reminds me of the situation of colonial goods being sent to the metropolis, processed and sent back. In this case, similar situations are impulsed by direct local greed, but the end result is that there is little in the way of transformation, production or service industries: it’s “get the raw goods, sell the raw goods, buy pretty processed goods”. When an economy is dominated by one resource all of its eggs are in one basket. Many of the oil rich countries are starting to diversify their economies now the oil price is heading south. For some, like Venezuela, it is too late. The curse of Oil is that it kills off perfectly viable sectors of the economy. Why bother making, growing or doing anything when the world is content to throw money at you for stuff dug out of the ground? It is not through ignorance, the elite of these single-resource countries all buy good educations for their offspring. They know the risks to the economy, but they find very difficult to wean any political elite off the addiction to consumption that often accompanies easy money. There are a lot of economic hazards for developing countries. It requires good leadership to steer a course around them. ---
**Author:** ![Hector\_St\_Clare](https://avatars.discourse-cdn.com/v4/letter/h/b5ac83/32.png) [@Hector\_St\_Clare](https://boards.straightdope.com/u/Hector_St_Clare)\ **Post date:** [October 14, 2017, 6:28pm UTC](https://boards.straightdope.com/t/how-do-you-develop-a-developing-country/797796/24 "2017-10-14T18:28:56Z")
> [@MrDibble](#): > > Korea should do whatever Germany did with East Germany. West Germany was about 80% richer than East Germany in 1989, South Korea is 45 times richer than North Korea. ---
**Author:** ![Mijin](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mijin/32/9369_2.png) [@Mijin](https://boards.straightdope.com/u/Mijin)\ **Post date:** [October 15, 2017, 2:30am UTC](https://boards.straightdope.com/t/how-do-you-develop-a-developing-country/797796/25 "2017-10-15T02:30:37Z")
North Korea is in one of the best locations for a developing country to be in. If the sanctions were to come down and NK were to trade freely then it would be astonishing if NK’s economy grew at less than 10% per year. If nothing else, just building some good roads and railways between china and SK, and then charging a toll would bring a huge influx of capital. But of course there would additionally be lots of outside investment. If I’m a Chinese company that sells a lot to SK, why not build a factory in NK? The rent would be cheap, labor would be cheap, and distribution simpler. Tourism would explode (so to speak) too. Now, of course there are people who would say a growth rate of 10% in NK would still be tiny in absolute terms for many years, and they would be right. But that’s a separate point – if we’re asking “How do you make a country like NK develop?”, the answer is that it’s very easy as long as the country is peaceful and doesn’t restrain free trade, but if we’re asking “How do you make a country like NK develop _overnight_?” well of course that’s a much tougher question. ---
**Author:** ![shreyapandey](https://avatars.discourse-cdn.com/v4/letter/s/9d8465/32.png) [@shreyapandey](https://boards.straightdope.com/u/shreyapandey)\ **Post date:** [October 17, 2017, 1:58pm UTC](https://boards.straightdope.com/t/how-do-you-develop-a-developing-country/797796/26 "2017-10-17T13:58:31Z")
> [@Barack\_Obama](#): > > Let’s say North Korea overthrows their regime and wants to start a new government and new country. What should they do to make themselves as rich as South Korrea? > > What do you do to increase trade and production from nothing? There are plenty of countries like Germany or Japan that went to shit and bounced back bigly. Did japan just magically start creating flat screen TVs and superior cars? What the hell happen there? > > I just don’t understand how a developing country can become a rich a country. Do they incentives their people to start businesses and mining resources? Is it all a reliance on the outside world to buy your countries shit? Why aren’t all the poor countries rich? Is it only due to their lack of natural resources? > > Edit: Then I guess that begs the question why Vensuela is poor, but I guess that’s due to corruption. So does a countries wealth come from it’s ability to hustle on an international scale? How does a poor country hustle it’s way to wealth? Selling? I am from India, and I can tell you about our country. We got independence from Britishers in 1947 and have earned a reputation of a developing nation since then. There are multiple things that have helped us become so. We have worked really hard to get basic amenities for everyone in our country like water, healthcare, house, and food along with electricity. We have implemented globalization, worked on foreign affairs among others. ---
**Author:** ![txjim](https://avatars.discourse-cdn.com/v4/letter/t/f07891/32.png) [@txjim](https://boards.straightdope.com/u/txjim)\ **Post date:** [October 17, 2017, 5:03pm UTC](https://boards.straightdope.com/t/how-do-you-develop-a-developing-country/797796/27 "2017-10-17T17:03:56Z")
> [@MrDibble](#): > > Korea should do whatever Germany did with East Germany. As an aside, Freakonomics Radio had a recent issue which addressed the integration of East Germany into West Germany. [What Are the Secrets of the German Economy — and Should We Steal Them?/](http://freakonomics.com/podcast/secrets-german-economy-steal/) ---
**Author:** ![Yllaria](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/yllaria/32/3452_2.png) [@Yllaria](https://boards.straightdope.com/u/Yllaria)\ **Post date:** [October 17, 2017, 7:01pm UTC](https://boards.straightdope.com/t/how-do-you-develop-a-developing-country/797796/28 "2017-10-17T19:01:30Z")
This isn’t data - it’s a comment from an intern working in an export company. He said that when developing companies develop, the first two things they import are refrigeration and sterilization equipment. I’m guessing that the company he worked for exported those things. It sounded plausible, but probably incomplete. I’d have thought that fertilizer and farm equipment would have a better payback. But maybe not. ---
**Author:** ![Nava](https://avatars.discourse-cdn.com/v4/letter/n/da6949/32.png) [@Nava](https://boards.straightdope.com/u/Nava)\ **Post date:** [October 18, 2017, 3:24am UTC](https://boards.straightdope.com/t/how-do-you-develop-a-developing-country/797796/29 "2017-10-18T03:24:02Z")
Growing more food doesn’t do you any good if you can’t preserve it. Refrigeration equipment can be used for food preservation and in healthcare; sterilization equipment, same. Those are two fields which are essential to stabilizing population. Better healthcare also means people spend a lot less time both being sick and caring for sick relatives, and that the money you put in education will also have better returns. ---
**Author:** ![John\_Mace](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/john_mace/32/185_2.png) [@John\_Mace](https://boards.straightdope.com/u/John_Mace)\ **Post date:** [October 20, 2017, 6:04pm UTC](https://boards.straightdope.com/t/how-do-you-develop-a-developing-country/797796/31 "2017-10-20T18:04:46Z")
First off, you need to get yourself a really large darkroom. ---
**Author:** ![orcenio](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/orcenio/32/1036_2.png) [@orcenio](https://boards.straightdope.com/u/orcenio)\ **Post date:** [October 21, 2017, 6:59pm UTC](https://boards.straightdope.com/t/how-do-you-develop-a-developing-country/797796/32 "2017-10-21T18:59:22Z")
> [@shreyapandey](#): > > I am from **India** , and I can tell you about our country. We got independence from British_ **ers** _ in 1947… Well, your story certainly checks out. ---
**Author:** ![ZonexandScout](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/zonexandscout/32/544_2.png) [@ZonexandScout](https://boards.straightdope.com/u/ZonexandScout)\ **Post date:** [October 23, 2017, 9:20pm UTC](https://boards.straightdope.com/t/how-do-you-develop-a-developing-country/797796/33 "2017-10-23T21:20:05Z")
Rule of law, reasonable laws/taxation, and enforcement of property rights. It’s that simple. Without these, no (beneficial) foreign investment, no business development, no infrastructure, and (often) no peace. ---
**Author:** ![MrDibble](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mrdibble/32/114_2.png) [@MrDibble](https://boards.straightdope.com/u/MrDibble)\ **Post date:** [October 24, 2017, 7:52am UTC](https://boards.straightdope.com/t/how-do-you-develop-a-developing-country/797796/34 "2017-10-24T07:52:33Z")
> [@Ovdeyevich](#): > > You can look at the distinct outcomes that different countries need from Addis Ababa by looking at Tanzania and Nigeria. Both of these countries show pretty strong economic growth. But they have different challenges in terms of what that growth means - and what type of external assistance is most crucial. > > For Nigeria, Africa’s largest economy, overseas aid is a relatively small part of the resource mix - just 0.4 percent of gross domestic product. The country has substantial oil reserves, which account for 3/4 of total government income. > > Tanzania on the other hand, has other problems. It relies heavily on foreign assistance, which accounts for 9 percent of its GDP. It manages to raise around 18 percent of GDP in revenues. Because incomes are so low, however, that only translates into very small sums to spend on its people. I don’t think there can be a simple answer to the question given. You also have to consider remittances in the mix, as another sort of “foreign aid” - remittances make up almost 5% of Nigeria’s GDP, for instance. It’s not oil money levels, but it’s not to be sneezed at, either… now think how that would be affected by a general anti-immigrant climate in the places the diaspora currently inhabits. [Previous page](https://boards.straightdope.com/t/how-do-you-develop-a-developing-country/797796.md?page=1)