tag:blogger.com,1999:blog-5135517.post114910933167315701..comments2023-11-05T03:54:44.710-08:00Comments on Making it stick.: For Better or Worse?Patrick Loganhttp://www.blogger.com/profile/02088461489050417591noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5135517.post-1149122586790962422006-05-31T17:43:00.000-07:002006-05-31T17:43:00.000-07:00Not all aid efforts are bribery by the IMF et al. ...Not all aid efforts are bribery by the IMF et al. <BR/><BR/>As I see it, a substantial part of the problem is inefficiencies inherent to many of the cultures we're trying to aid. All we will succeed in doing is impoverishing ourselves unless we attempt to change some of their cultural habits. However, when we try to do this, the cries of "cultural imperialism" go up and a great deal of political effort is expended in making us stop.<BR/><BR/>An example of an inefficiency is the common practice in many African countries of _all_ the relatives of a successful wage earner expecting to be supported, up to the limit of the earners income. Capitalism works by taking local surpluses and investing them in wealth producing activities. No surpluses, no investment. Result: no progress. <BR/><BR/>Corruption and bribery have a similar effect. They have the added issue that they tend to make more wealth flow upwards, putting the local surpluses into few hands. Also those at the top have a precarious position so they tend to stash their money (in Switzerland) for a rainy day. They have some incentive to invest locally as it will net them more money and make the locals less likely to revolt, but the returns are usually bigger from investing outside the country.<BR/><BR/>In places like Japan and South Korea, the inefficiencies are much reduced and all they really needed was a kickstart. Capitalism doesn't work as well there because of the institutionalized bribery, but it works well enough. In countries such as Saudi Arabia there is/was enough income spread around that the inefficiency wasn't worried about. It means they can't go any farther, but for now the bedouins in charge don't seem to care. This is backfiring on them, and they're having to reassess the situation.John Douganhttps://www.blogger.com/profile/17697319138259306921noreply@blogger.comtag:blogger.com,1999:blog-5135517.post-1149113870068093662006-05-31T15:17:00.000-07:002006-05-31T15:17:00.000-07:00I agree, talking about being unselfish is not the ...I agree, talking about being unselfish is not the same as being unselfish.<BR/><BR/>Money ends up in corrupt people's hands on purpose. Read for example, "Confessions of an Economic Hit Man".<BR/><BR/>I don't know about South Korea. Any particular reference?Patrick Loganhttps://www.blogger.com/profile/02088461489050417591noreply@blogger.com