A long way to go still.......

Michael Perelman michael at ecst.csuchico.edu
Fri Aug 17 09:32:26 PDT 2001


One eve of the Revolution, Russia was also very poor, but it still managed to grow very quickly. In countries, such as Mali and Bangladesh, a considerable amount of surplus goes to landlords, corrupt officials, and moneylenders. Also, in some countries resources that are diverted to lavish ceremonies, such as funerals and weddings, provide another potential.

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



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