Post
Topic
Board Economics
Re: How do developing countries end up escaping poverty?
by
Fiatless
on 07/08/2025, 18:33:51 UTC
Yes, my country for some reasons unexplainable to me keeps on prioritizing imported goods when we have local producers anyway. For example, rice. Instead of supporting farmers and providing them whatever they need, they just import other rice. Countries with natural resources should be maximizing the potential of the economic sector but somehow they are stuck in getting products from other countries.
It is not wrong to import from other countries if you don't have a competitive advantage. Although it will create employment but it will not be ideal to produce goods that the cost of production is high meanwhile it can be imported from other countries at a low price.

The US get many of it's consumables from other countries but it also ensures that it improves on areas it has a competitive advantage. What make a country rich is it's ability to identify and perfect it's skills on a productive or extractives sector more than it's competitors.