Quote from: yoseph on September 30, 2019, 11:45:48 AM

Quote from: deisik on September 27, 2019, 10:17:19 AM

Quote from: yoseph on September 27, 2019, 07:58:40 AM

Quote from: leftgirly on September 12, 2019, 08:21:35 PM

The world economy keeps crashing with many incidence of inflation. What is happening at the moment is a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?

It's high time that third world countries realise that it is industrialization and not natural resources alone that is going to make them leap from being a third world country to maybe an economic super power, They are over reliant on their natural resources and all they tend to do is to export them, if they are able to build factories that could transform their raw materials to finished products like developed countries do, they will end up being getting 10x the profits they make from exporting just the raw materials alone

If only things were that simple

The problem is that countries which are already industrialized have a competitive advantage while the third world countries can't just proceed from exporting raw materials and natural resources to manufacturing finished products and retail-ready goods because they simply would not be able to stand the competition with the developed countries. So, instead of getting 10x the profits from exporting natural resources, they would only incur losses by producing subpar goods that will fail to market

To do what you suggest requires a lot more than just building factories as it also requires highly qualified labor force, technologies, capital, etc, as well as support from the big guns like the US opening their markets (see Japan as one such example) and it takes literally decades to go in that direction till finally getting there (or just somewhere)

I totally agree with what you are saying they are bound to face competition because there are already major players in those fields but they have to start somewhere and i think the time to do that is now. If they already have the raw materials, i believe they have a major advantage than the people who have to buy the materials and process them, they can lower the price of their end products because they have the materials in the first place

The problem is more complex than it appears

More specifically, there is no shortage in raw materials and natural resources. Whatever natural resources market you may look at, it is saturated with plenty of suppliers from different countries undercutting each other. The implication is that it doesn't give them any advantage as any of them can be easily substituted by another supplier. Apart from that, such countries have corrupt governments which are busy filling their pockets. They are not willing to improve the lives of their citizens as these citizens may no longer want these governments once they are better off overall