These countries are poor, so the potential surplus is nothing like what you might see the United States, but it does offer a path to a growing economy -- at least in a world in which the rich capitalist countries would permit a socialist country to survive.
Lawrence wrote:
> >>>
> Anyone who says otherwise is a subversive or a
> fool. Free trade is an unalloyed blessing, for poor countries as well
> as rich. The multinational behemoths bring precious investment to
> developing nations.
> <<<
>
> Doug, you once pointed out that, in America, the poor could not contribute
> much to national savings. They only control about 3% of the economy, you
> said, so even if they saved 20% of their income, which would be impossible
> anyway, it would only amount to maybe .6% of the national income. I'm
> wondering if what holds true here is true for entire nations that are poor.
> Do poor nations like Mali and Bangladesh need outside investment simply
> because they don't have enough income to invest in themselves? Or could they
> come up with the money to do internal investment if only there was the
> internal political will?
--
Michael Perelman Economics Department California State University michael at ecst.csuchico.edu Chico, CA 95929 530-898-5321 fax 530-898-5901