For so many years, we see the third world furnishing raw materials to the developed countries with no value added. Sold by low prices and re-bought manufactured with a big value-added. Is this model feasible to the 3rd world? Sell cheap and buy expensive products, made of the same raw material? Sounds like neo-colonialism, or just a natural situation of countries that have natural resources and others that are capable to add value?
dear sir
i hope u r well
this may be help you
best wishes
Factors Driving Global Economic Integration -- by Michael Mussa, Economic Counselor and Director of Research, IMF
by Michael Mussa Economic Counselor and Director of Research IMF Presented in Jackson Hole, Wyoming at a symposium sponsored by the Federal Reserve Bank of Kansas City on “Global Opportunities and Challenges,”
Dear Dr Nabel,
Certainly it will help me.
Thank you for your attention and kindness.
AH.
Dear Aurelio,
You propose an interesting question. Please let me add another perspective to the mix. The two biggest export earners in terms of financial income for Australia are two natural raw materials, coal and iron ore. Australia is a very nice country and offers one of the highest standards of living and quality of life in the world. Secondly, China was a very poor country 30 years ago and now is a global economic super power, with only the US in front of it.
This depends on the government agreement executed earlier...... this need to be adhered and the revlution should happen for the change that is not easily possible .... but relentless efforts by citizens and government will change slowly
Dear Dr. Kym Fraser,
You´re right: " Australia is a very nice country and offers one of the highest standards of living and quality of life in the world."
It seems to me that Australia did it the right. Countries in the 3rd world are not doing it the right - are not negotiating it the right way.
I confess that I always thought that Australia had some support of UK, some contracts with international trade agreements of minimum prices or something like that. I don´t really know if this makes the difference or not, but listening to you, I should think that not - I suppose. So, what makes the difference?
Could you give us a clue: what we are doing wrong?
Maybe, Dr. Anand Rao has the answer: " This depends on the government agreement executed earlier".
Thank you both.
Estima Doctor Aurelio,
Es muy interesante las diferentes preguntas que plantean, es importante generar valor en cada uno de los productos, pero ¿esta en capacidad un país de agregar valor algunos productos cuando no esta tecnificado? es la pregunta que plantean mis estudiantes al estudiar el sector servicio en las lineas hotelera, turismo y gastronomía, donde investigadores plantean que si no agrega valor esto puede afectar la competitividad del sector industrial.
Dear Aurelio,
As you are aware Australia was colonised by the British. Over the last 100 years support from the UK has been very limited. Australia tends to trade within the Asian-Pacific region, predominately with China.
“So, what makes the difference”. This is a fascination question. Two areas which I think play a major role in the development of countries is leadership and corruption. The issue of leadership is not only political but also the role society is willing to play with respect to sound leadership. Too many countries suffer due to poor leadership and corruption, and in many trade deals these two issues go hand-in-hand. Africa as a continent suffers badly from both these factors. Africa’s most developed country, South Africa, is now being dragged backwards by the hopeless leadership of Jacob Zuma, who in turn provided full support for the appalling leadership of Robert Mugabe in Zimbabwe. While the leadership of both men is terrible and both countries are suffering, within their society you can still find support for both. Poor political leadership is not only an issue for developing counties. The last three Presidents of the United States have been poor, and the last four Prime Ministers of Australia (2 from the left and 2 from the right) have been terrible. It is sad to think that out of 7 billion people on the planet we are struggling to find leaders of the quality of Nelson Mandela.
Dear Gabriel Alberto,
Si. Usted puede agregar valor, mismo si usted no tiene mucho para agregar. Las pequenas diferencias hacem gran diferencia en el todo.
Siempre que usted hace una cosa mas em un processo, usted agrega valor. Si um proeducto o un servicio, procura la mejor forma di ofertar. Cada paso cuenta!
Abraços.
AH.
Dear Kym,
As you brilliantly said, and I think it´s really fascinating " Two areas which I think play a major role in the development of countries is leadership and corruption. The issue of leadership is not only political but also the role society is willing to play with respect to sound leadership. Too many countries suffer due to poor leadership and corruption, and in many trade deals these two issues go hand-in-hand."
Coincidently, I live in Brazil, a BRICS (Brazil, Russia, India, China, and South Africa) and I´ve been studying South Africa. It leads me to do a research (just a "quick look") about Mugabe´s outgoing. It´s incredible that you´ve used exactly this example!
My country is another example, unfortunately, that you are right. A lack of leadership and a culture of corruption are killing people - and it counts in millions... UNBELIEVABLE.
Thank you very much for your insights and valuable comments. Hope to have you always near my research work.
All the best for you.
AH.
It is not appropriate for the developing countries (euphemism for underdevelopment) and the underdeveloped countries, the commercial model of selling their products and labor cheaply to the first world countries; and simultaneously, compare the same or a little more refined or innovated, at exaggerated prices. It is the model of the free market economy.
Today is an era of knowledge; the countries having an infrastructure for knowledge growth, are in a better position. The developing countries have productive people, but there is lack of such infrastructure due to community behavior and social history of that place locally.
Thank you very much for the kind insights, fellow scientists.
All the best for all of you.
Prof. A. Hess
Third-world countries unfortunately use the pattern of imitation because their performance in the long run is greatly reduced. The accumulation of value added from individuals and companies is important, on the one hand, the way in which the source of tax collected is important, and if these two cases are one In the long run, the result is inverted
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