Debate: Poverty of third world countries is the fault of first world countries

[lyndakhor]

i'm the opposition.

what should i talk?

Thanks

[Jamie (K)]

It's kind of illogical to say that poverty in Third World countries is the fault of the First World countries, especially when the US, Canada, Europe and other developed countries have sent untold billions in development aid that has somehow "disappeared". In addition, the companies in the First World generally pay for the things they get from those other countries, but the money never gets to the people. I can remember reading a long time ago that President Mobutu of Zaire (now the Congo) had amassed a fortune equivalent to nearly all of his country's national debt. He couldn't have done this without diverting foreign financial aid and local business proceeds to his personal accounts.

Some of the reasons for poverty in the Third World are these:

1. Weak rule of law. (Poor countries often have courts that are not fair, or the decisions are made outside the law by and in favor of people in some privileged group. This can happen in any country, but in those poor countries it's usually out of control.)

2. No property rights. (The state can seize anyone's money or property anytime it wants. This means not only that people don't know if they'll still have their homes and business tomorrow, but also that they can't use their property as collateral for loans to expand their businesses. And without expanding businesses, employment and wages stay low.)

3. Business laws that are determined from the top, by people who don't understand business.

4. Too much government regulation (see number 3).

There are a lot of other reasons. If you want to read a good article discussing the problem -- by the former president of a Third World country -- look at this one from the American business magazine Forbes: http://members.forbes.com/global/2004/0329/016.html

[prezbucky]

The freer the business environment, the better the economy. The better the economy, the happier the consumer/person.

(this is -- like many simplistic/blanket statements -- not always true, but it is generally the case)
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