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.

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

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.

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)