No Knowledge No Market Participation
Recently there has been much talk of less developed countries of being failed by the market. Countries will adopt policies that theoretically are market friendly but somehow the growth that was anticipated never occurs. This gives ammunition to those who do not understand economics, and immediately there are cries and shouts look the market has failed. Note that most of these cries come from people who reside in countries where the benefits of the market are seen everywhere, they reside in
No the market has not failed, it has not failed because a key ingredient was missing, that key ingredient is/ was knowledge. Less developed countries have nothing to bring to the market. What they have brought to the market is what is provided by nature, raw commodities, iron ore, oil, cocoa, gold, copper, platinum, all things provided by nature. They have not added any value to these commodities, they have not, they lack the knowledge to create goods with these commodities. They do lack the knowledge, their engineers produce no machines, no electronic products either for themselves let alone export.
The market has not failed, to participate in the market one must bring something to the market. Less developed countries have nothing to bring to the market, it is not that the market has failed. If less developed countries had know how, why, they would make electronic goods to bring to the market, maybe tools, machines, ball bearings, printers, nails, no the knowledge in most cases does not exist. It is not the markets that have failed, it is the leadership of those countries that have failed to create and understand the importance of knowledge, to use the materials of the earth to create goods. A machine after all started of as iron ore, and finally an engineer creates a machine, a car, or parts.
With respecting knowledge these less developed countries will be able to create goods, but knowledge must be respected. The leaders of these countries in most instances do not believe in their own people, in trying to please donor nations they just teach their people, and encourage their citizens to merely regurgitate what the donor nations advise, because they fear if the do not regurgitate these advisors donor funding will not come. Now these donor countries do not talk of knowledge, they talk merely of opening up the market for goods and services from the donor nations, however this is in the long run is harmful to the globe, if donor countries really cared they would encourage knowledge production, there is nothing to fear, if the less developed countries become rich, it follows that the donor nations will have bigger markets, and all societies in the long run will be net gainers. It is dependence on donations that has put ‘pragmatism’ into the less developed countries, they fear that if they do not regurgitate the advise from rich societies they will get no way and their source of government expenditure will dry up.
These donors who want regurgitation are not friends of less developed countries or humanity at the least, there is good literature available from organizations that encourage the rights of the individual, because to merely regurgitate means one is not an individual but a clone, there are proper think tanks out there that encourage freedom, without freedom knowledge can not be turned into productive means, it remains theoretical, and unfortunately for remnants of communism most of these organizations happen to be associated with center right policies.
Without knowledge there is no participation in the market.