Why Doesn’t the Developing World Develop?
Why is it that much of the developing world is always developing? Why is it that in 2008 the differences between the developed and developing worlds are growing faster than ever? I’m going to take a shot at answering those questions but I’ll be the first to say that I am by no means an expert and if you asked a thousand people you’d probably get a thousand different theories. So, I am going to focus on what I have personally seen here in the Dominican Republic and try not to speculate too much.
There is absolutely no doubt that imperialism has played a role in the DR’s history and accounts for at least some of the causes of its current state of development. Spanish and French colonizers exterminated the native Taino Indians and exploited much of the natural resources. The country was twice invaded by the United States. The most recent interference of 1965 ousted the progressive intellectual and grandfather of modern Dominican politics Juan Bosch (he founded the two major parties, the PLD and the PRD) only to replace him with Joaquin Balaguer (the iron-fisted former right hand of the brutal dictator Generalisimo Rafael Trujillo.) Balaguer’s subsequent administrations were marked by oppression of any political opposition and a general repression of civil liberties. It makes one wonder what the country would be like if Juan Bosch would have been in Balaguer’s shoes for all of those years.
Having said all of that, it is still only part of the story. And it’s the part that nobody can do anything about because it is all water under the bridge. Furthermore, it doesn’t fully answer the question as to why the country is still in a perpetual state of development in 2008. Can we really say that the reason only one in ten Dominicans graduates from high school is because of Christopher Columbus? Or that the reason the government is rife with clientelism and corruption is because the U.S. occupied the country several times in the 1900’s? Is it the United Nations’ and the World Trade Organization’s fault that the country’s infrastructure has been on the verge of collapse? Can we go on blaming “afuera” or “los Gringos” for all of our woes and expect things to get better?
Those are the questions I’ll do my best to answer tomorrow. The lack of basic education, culture of corruption, and absence of political will to prioritize how to spend its limited resources are what’s killing the country. And it can’t go on like this forever.
Sidenote: Lest I be accused once again of bashing the DR unfairly, I’ll be the first to say that American public education is nothing to brag about, we have tons of corruption in our government and we spend our resources like a drunken sailor on payday. And all three of those things are entirely our own fault. See? No double standard.
About the Author: Randall H. Miller is an American college educator/blogger. He is also a former U.S. Army officer (82nd Airborne) with a M.A. in Diplomacy (focusing on International Terrorism) and a B.A. in Criminal Justice. Use the form on the right to sign up and receive notifications of new content. The words and ideas expressed here are 100% his own and not those of his employers or affiliated organizations.
Ernesto Selman | Aug 15, 2008 | Reply
One reason for countries to be part of the third world: NO respect of the RULE OF LAW and PROPERTY RIGHTS. Rule of law and property rights are a pre-condition for a country to achieve economic and social development as it is the most important building block of a market economy. Chile is a third world country in the process of development, as it has adopted the market economy to flourish based on the rule of law and property rights; in my view, it is just a matter of time for Chile to be part of the developed world. Transparency International ranks Chile among the top 20 countries in the world with most transparent political, judicial and market processes. This is different from other third world countries, like the DR, which are supposedly in the process of development. The reality is that there is no such a process anywhere in the world, when the rule of law and property rights are not respected for a market economy to develop. Unlimited power in the hands of few and excessive government intervention are a deterrent for third world countries to become part of the developed world.
Kenza | Aug 15, 2008 | Reply
“And it can’t go on like this forever.” I agree 100%. The DR will either have to shape itself up, or things are going to go downhill very quickly.
Alexandra | Aug 15, 2008 | Reply
“It makes one wonder what the country would be like if Juan Bosch would have been in Balaguer’s shoes for all of those years. ”
I thought about that during every single sociales class for the past two years. (when I discovered how great Juan Bosch could have been if given the chance)
scootertrash | Aug 17, 2008 | Reply
Ernesto Selman posted: “One reason for countries to be part of the third world: NO respect of the RULE OF LAW and PROPERTY RIGHTS. Rule of law and property rights are a pre-condition for a country to achieve economic and social development as it is the most important building block of a market economy.”
And I agree, it is “a” precondition.
But there is an even more fundamental precondition: internal resources.
Fact is, as I have posted elsewhere before and often when this topic comes up, there are not enough internal economic resources to support the population. The per-capita GDP is around US$4000 per person, and government budget takes around 20% of that. If it weren’t for various forms of foreign aid, remittances and investment, the DR would not be able to operate even at the level it does today. As a resident, I shudder at that thought.
And corruption, although a serious and distasteful problem, isn’t why the country is relatively poor. The UN pegged DR corruption at US$117,000,000 a year. And while that may buy a boatload of jeepetas and mountain cabanas, it comes to only around US$20 per person.
Too many rats in the cage. When that happens, ever morsel of cheese becomes the object of a fight, and the controllers of the cheese make sure they get ~theirs~ first. If there was more cheese, the attutudes of the controllers would be different, and the cage residents would have different attitudes about cheese.
It’s difficult for those of us who come from affluent societies to understand the mindset of those who come from impoverished societies. We are at a different level of cultural Maslowian development.
The REAL question is this: what can Third World and developing nations do to increase their country’s GDP. Because without this, all governmental reforms are moot. And mute.
RHM | Aug 17, 2008 | Reply
@Scooter Trash
Do you have a reference on those UN corruption numbers? I’d love to see how they determine the estimate. I’d also submit that it’s an oversimplification to view the amount as “only about $20 per person.” The compounding effect over decades is much larger and contributes greatly to our institutional weaknesses. And it’s those weaknesses that kill us daily, especially when we enter free trade agreements.
Also, I’ve noticed that you always (and I mean always
) Come back to GDP. But It’s possible and even likely in the developing world for GDP to increase (along with a number of other economic factors) but for poverty to INCREASE as well. Need a reference? (see anything recent by Sachs, Friedman, Stiglitz)
Cheers,
RHM
scootertrash | Aug 18, 2008 | Reply
Randy, Google for the UN figures on corruption in the DR. That’s what I did after innumerable posts about the financial aspect of corruption from DR specific forums.
And, yes, it is possible for GDP to increase and poverty to increase, but usually poverty gets re-defined in the process. In the US, poverty has “gone up” since the 60’s War on Poverty, but now the face of poverty doesn’t include gubmint financial aid, and does include cable TV, cell phones, a/c and microwaves. The US doesn’t have many people living in dirt floor shacks any more.
My reference to corruption being $20 per person is accurate. It addressed the premise many folks have that if the amount of $$$ corruption sucks down, thene there would be enough money to go around to solve all the DR’s economic problems. That is just not true. And even if the UN figure in understated by a factor of 4, $80 per person will not correct the country’s problems.
But both beg the point about internal resources. What I state is correct: the problem is not enough internal resources to support the population.
And certainly corruption creates weaker institutions and distrust within the population, furthering the distrust. But as I have also stated that there is no clear desire of the voters of the Dominican Republic to change it.
Why?
Last election the voter turnout was around 71.4%. 94.3% of those voted for one of the two status quo candidates who are part of the entrenched system. That means that over 67% of the voting population voted FOR the status quo. The numbers don’t lie.
My background is economics and business, not social science. I’m not stating that I agree with the Dominican voters. I’m merely drawing a conclusion on what their clear actions are based on the numbers. I do not necessarily agree with what the conclusion is.
I’ve stated before elsewhere that the one single thing that could be done to “fix” many of the inbedded problems with the country we live in would be a real, impartial, performance-based Civil Service System. Taking political connections out of the political process in emplying bureaucrats and gubmint workers would make a single HUGE difference in efficiency and gubmint efficacy. But it won’t happen, because the current political electoral system depends on giving jobs to their supporters.