Bach Under The Stars

Sunday, 25 November 2012

First attempts in development of poor countries


I'm thinking about period after Marshall Plan.
There was optimistic view about building functioning states after relative success in Germany.
It was, when notion of "development" was created. It was real attempt to Denmark-like functioning governments with Ministry of Finance and all that. From Taiwan to Senegal.
Around 1970 everyone was discouraged and attempts for development stopped, there were several wars, elections ended with one man-one vote-one time scheme and generally structural changes in low-income countries were abandoned.
There was after that period, when there was attempt to build infrastructure and reform industries in low-income and middle-income countries, by pouring money into them. Foreign aid was meant to replace internal savings, which were of course impossible for them. In 1980 this ended. Effect were very slight improvement, in some countries. Because effects were so slim aid was stopped. Nevertheless you can hardly any poor country without hospitals, roads or power plants build in 70's from foreign money. There are just few of them.
Both waves of development were real and discounting all policies of high-income countries towards middle-income and low-income as looting is disingenuous.

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