Delroy Chuck
THE RICH countries of the world became rich, and remain rich and prosperous, through good governance and the creative efforts of their people. This week, when the G8 countries meet in Gleneagles, Scotland, they will come under immense pressure to relieve the poverty, hardships and diseases in the poorest of the poverty-stricken nations. Initially, they will write off over US$40 billion of bilateral and institutional loans to the 18 poorest African countries, none of which can properly service and meet their debt obligations. However, debt is not the problem, otherwise the most heavily indebted country, the USA, would be in serious trouble.
The poor countries of the world are poor, and remain poor and deprived, through their own fault and failings. To be sure, poor countries have suffered natural disasters, are challenged by climatic and geographical disadvantages, and have been exploited by colonialism and imperialism. However, the common underlying features of poor countries are unarguably inept government, strangling bureaucracy and rampant corruption - all three of which are closely intertwined. Interestingly, indebted and poor countries are usually well endowed with natural resources and possess comparative advantages denied to the rich countries. They remain poor through their failure to fully appreciate that wealth and prosperity do not come from the mines of their land but from the minds of their people.
FALSE BELIEF
Fallaciously, the economic dunce, the socialist-minded and the racially inspired argue that countries are poor and remain poor through exploitation by the rich who fail to share their riches. The intellectually deprived misguidedly believe that the wealth of the world is a fixed sum and if some countries are rich then others must be poor, which belief is quite false. The world's wealth is increasing daily and exponentially. Wealth is actually a product of human knowledge.
It is human knowledge that made it possible for agriculture to take monumental leaps where it is now possible to feed, perhaps overfeed, the world's people and eliminate hunger everywhere. It is human knowledge that inspired the development of the locomotive engine and made manufacturing and easier transportation possible. Yet, in an information-driven and knowledge-based new world order, it is not commodities and manufacturing that will increase wealth but the use and management of better information and creative knowledge.
The poverty of nations could be something of the past, which, realistically, in the 21st century, should be the challenge of human society. In truth, the wealth of the world is likely to double every 10 years and the rich countries will get richer, while the poor counties will remain poor unless they take the necessary steps to join and share in the increasing wealth and prosperity. The problem is quite simple and the difference is easily discerned.
The rich countries are deeply committed to the creation of more wealth and economic prosperity while the poor countries are more concerned with the distribution of wealth and the alleviation of poverty. Thus, Jamaica will remain poor, and for a long time, unless and until the mindset of our government moves from the greatest distribution of land, cars, cellular phones and contracts, and from the alleviation of poverty, to the better use of land and resources to develop our economy and to increase prosperity.
POVERTY CAN END
The poverty of nations can end. But, it will not happen if the poor countries see their salvation in the grants, debt write-offs, aid and beneficence of the rich countries. The poor countries will have to open their borders and economy to investment and development, to reliance on human knowledge and creativity instead of on their natural resources, and appreciate that in a global economy it is competitive and not comparative advantages that will make the difference.
In reality, there are many countries that have started on the road to prosperity and are reaping the dividends early. Ireland is an example. Fifteen years ago, Ireland decided to go for prosperity and is now a star performer among European nations. "One of the first reforms Ireland instituted," noted Thomas L. Friedman, the author of the best-seller on globalisation THE LEXUS AND THE OLIVE TREE, in his New York Times column, July 1, "was to make it easier to fire people, without having to pay years of severance. Sounds brutal, I know. But the easier it is to fire people, the more willing companies are to hire people."
Would Jamaican politicians have the political will to institute such a reform?
Delroy Chuck is an attorney-at-law and Opposition Member of Parliament. He can be contacted by email at delchuck@hotmail.com.
