Skip to main content Accessibility help
×
Hostname: page-component-76fb5796d-vvkck Total loading time: 0 Render date: 2024-04-26T05:59:00.743Z Has data issue: false hasContentIssue false

12 - Rich and Poor Countries

Published online by Cambridge University Press:  18 March 2021

Get access

Summary

There is a fundamental, far-reaching imbalance in the position of rich and poor countries. Singer and Ansari point to the unequal distribution of:

  • military power;

  • financial and economic power;

  • technological expertise;

  • industrial production;

  • commercial power;

  • the influence of multinational corporations; and

  • food security – the developed countries dominate here, too.

The main exception they point to is oil. Natural resources in general have proved to be a curse for many countries; they offered the imperial powers an irresistible lure, and, Easterly argues, left the countries a legacy of vested interests that resisted all attempts to redistribute the resources subsequently. Corrupt practice, too, is rife. Much of the finance that flows between developing countries and the developed world is illicit, reflecting criminal activity and illegal extraction of funds. In terms of volume, illicit flows have been said to account on average for about 20% of the trade of developing countries, and while some passes through less wealthy countries, about half of the money ultimately ends up in tax havens or developed countries.

After military power, the disadvantage of poor countries is arguably most visible in the system of international trade. The arguments for international trade are powerful ones. The most basic theoretical justification is the idea of comparative advantage. In the process of commercial trade, it will usually emerge that one partner will be better doing one thing, the other will be better doing something else. If they both concentrate on what they’re good at, and exchange goods and services on that principle, they can both be better off than they would be if they did it all by themselves.

There are several arguments for protection – that is, for preventing or deterring the importation of goods. An example is the claim that countries need ‘food security’. The concept was introduced at the World Food Summit in 1996 to mean that ‘all people at all times have access to sufficient, safe, nutritious food to maintain a healthy and active life’. At that level, it is fairly uncontentious. It becomes contentious when the idea gets translated into a demand for national self-sufficiency in food production and distribution.

Type
Chapter
Information
The Poverty of Nations
A Relational Perspective
, pp. 163 - 182
Publisher: Bristol University Press
Print publication year: 2020

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×