Delroy Chuck
PROSPERITY IS a choice. Nations, like individuals, do not achieve and sustain prosperity by accident or by stumbling upon the good life. They do so by design. European nations became prosperous after centuries of hunger, hardship, diseases, war and poverty through the agricultural revolution, research, and the exploitation of the resources and peoples of the New World.
Europe and North America maintain their prosperity by manufacturing, trade and investment, economic expansion, technological advancement and human development. The countries of Asia and others are growing economically by inviting European and North American firms to invest, expand, and make use of the abundance of skilled and cheap labour. Japan, defeated in World War 2, assisted back on its feet by America, appreciated that manufacturing was the way forward.
ECONOMIC POWERHOUSE
Through Japan's determination to provide cheaper and better goods - cars, televisions, computers, cameras, watches, etc. - to the rest of the world, it successfully became the economic powerhouse of the East.
Singapore, abandoned by Britain and its federation partners, decided to go it alone and to create an economic environment for the rich and technologically advanced countries to invest. In spite of its colonial exploitation, size, racial conflicts, and lack of any natural resources but through the leadership and vision of Lee Kwan Yew, Singapore has succeeded to become a wealthy first world nation. Botswana, Mauritius, Mozambique, and a few other African countries, stopped complaining about colonialism and imperialism, about unfair markets and trade barriers but, instead, concentrated on good governance, and have grown and expanded economically.
INDIA AND CHINA
India and China, with the world's two largest populations, focused on attracting foreign investments and the transfer of technology to provide jobs and opportunities for their people. India locked into the information technology, utilised its trained and educated workforce to compete with North America, outsourced jobs and, presently, about to take off economically. From 1978, when Deng Xiaoping became Premier and shifted China from a socialist to a capitalist economy, it has grown consistently at an average of 9 per cent and more, annually, for the past 26 years. Deng famously declared that 'to get rich is glorious.' Capitalism, trade, foreign investment, innovation, productive workers and concentration on economic development have created prosperity and a better quality of life for these countries.
Actually, the countries with natural resources and comparative advantages have not done well in the world's economy. In truth, resources and geography count for little. Switzerland is landlocked, mountainous and devoid of natural resources, yet it has, arguably, the highest standard of living in Europe.
Russia, Bolivia, Indonesia, Mexico, Nigeria, Zaire, Zambia, Venezuela and many others from the five continents have vast natural resources, including huge reserves of minerals, oil and gas, but the majority of their people live in abject poverty. Nigeria and Venezuela, for example, blessed with significant earnings from oil export, have not used their earnings well, and have sunk into even deeper chasms of corruption and chaos. Alas, the misguided and ignorant minds still argue that it is the rich countries that caused the perennial poverty of these poor countries and seek their salvation in debt relief, more aid, and an even greater effort on the part of the rich.
EXTRICATING POVERTY
Yes, I strongly agree that the rich nations should assist the poor, but unless the poor change their political mindset and economic policies, no amount of aid and assistance can extricate them from poverty. Poor countries, such as Jamaica, will remain poor if their way of thinking is glued to poverty and rely on loans to keep up consumption patterns and for budgetary support, which further trap them into even deeper depths of poverty. Instead of loans and grants, these poor countries should seek investments and prioritise economic policies to favour production and export.
POVERTY AND POLITICAL SYSTEMS
To be sure, if we really want to know why some countries are poor and others prosperous, simply compare the former East Germany with West Germany when the former was choked in the communist orbit. Compare also the increasing prosperity of South Korea with the poverty-stricken North Korea. The real differences are their political systems, closed versus open economies, and their contrasting macroeconomic policies.
If nations, like individuals, choose prosperity, are prepared to overcome challenges and obstacles, and follow the path of prosperous countries, then prosperity will surely come. Prosperity comes from opening up one's economy, sound management, a working relationship between capital and labour, and the determination to provide goods and services at competitive prices on the world market.
Delroy Chuck is an attorney-at-law and Opposition Member of Parliament. He can be contacted by email at delchuck@hotmail.com.
