The Reasons And Solutions Of Developing Gap

Now with the open world market, many people increase confidence that the developing gap between developing and developed countries. However the opposite reality shows that after World War Two, this developing gap has been increasingly widened. According to a British expert, if developing countries’ income remains at the level of 5% of developed countries’, then the absolute gap in income needs 40 years to be eliminated. (Robert Hunter Wade, 2004) So what are the reasons for the widening developing gap? Developed countries selfishly believe that developing countries should be responsible for such consequence by themselves, and they also find many “evidences” to blame developing countries, but of course they are just tricks rather than truths. This paper will analyze these tricks one by one and then find real reasons for the developing gap.

The first one is about international trade. China is often blamed as using productions with the lowest costs and prices to trade in international market. Yes China does, and many developing countries also do as China does, but before we blame them without consideration, we should think about the reason why most developing countries go such a way, or say whether there is a rule inside the phenomena. Theories from Macroeconomy prove that economy development needs to take comparative advantages. So to developing countries, low-cost industries, such as manufactory, should be developed at first. Actually those successful countries or areas which got high speed of increase in economy, such as Japan, Korea, Singapore, Hong Kong, and Taiwan, were all developing manufactory at first. But why developing countries cannot get such success at current time? The reason is simple: rules are more controlled by developed countries. The most obvious trap is the increasing pricing gap between low and high levels of products. Among so many victims of the pricing gap, India is a typical one. From 1960s to 1990s, main types of export goods of India were handwork production, clothing, simple machinery, leather, cotton yarn, tea-leaf, while the main types of import goods were petrochemicals and high-technological machinery. (Global Forum Official Website, 2005) Thus India suffered adverse balance trade deficit for 30 years, and even now India still doesn’t have a full industrial system. China also has suffered the negative influence from the developing method of exporting simple productions although rarely has suffered adverse balance trade deficit. So we can see that actually developing countries are victims of this bad globe economic institution made by developed countries. However now developed countries blame the victims first and they believe that developing countries deserve to suffer poverty because they use this method to develop their international trade. What a ridiculous charge!

The second “reason” of the developing gap, of course is come from developed countries, is about the global warming. With the growth of this issue, who should be responsible for this issue also becomes an issue. Depending on their perfect relation or say international influence ability and rich sources on medias, developed countries owe the cause of global issue to developing countries, especially China and India, and believe that the environmental problems influencing development in developing countries should be responded by developing countries themselves. First some western experts write some articles to blame developing countries. In the article titled Population Growth and Global Warming, the author John Bongaarts gave such a theory to owe this to developing countries: because of the increase in population size and income per capita in developing countries, their energy consumption would exceed developed countries, and they would also increase the deforestation, which would be the new main reason of global warming. At the end of this article, the author owed responsibility to those MDCs, of course implying China and India. So what about the truth? According to report from World Bank, the carbon emission per person of China was 4.1 ton in 2009, which is one-fifth of U.S’, and one-half on Britain’s (Economy Reference, 2009). Western experts blame that it’s no use to compare by the standard of carbon emission per person because China’s total emission is the highest in the world, but actually they are tricking people again. Economy serves for everyone, and development includes the improvement of people’s lives, so carbon emission per person matters not only the total emission but also the healthy development, especially people’s lives. Now even people’s daily energy consumption in developed countries is much higher than in developing countries, even drying cloths needs machine, no need to say energy consumption for industries. So following developed countries’ “suggestion”, the most of world population needs to bear low life level to let very few people in developed countries to enjoy the high energy consumption, in the long run. How virulent goal developed countries want to achieve can be seen.

Developed countries also owe developing gap to the problems inside developing countries’ inside management, such as corruption and low efficiency. Yes, such problems do matters the developing gap the most. But developed countries play the same trick, called “a thief calls ‘Stop thief'” in China, again at this point: even these actually should be responded by developed countries. According to experts Daron Acemoglu, Simon Johnson, and James A. Robinson’s research, three truths responsible for the gap between former colonies and colonizers, and even different colonies, should be noticed: first, there are different types of institutions for different colonies, one is called “Neo-Europes”, which means the settlers tried to replicate European institutions on there, and the most successful former colony, United Stated appeared, now this former biggest “benefited” becomes the biggest “ruler” of the world, and another type of colony institution is called “extractives states”, of which main purpose was just to transfer as much of the resources of the colony to the colonizer, and thus colonies under this institution were of course victims, and those LDCs in current time all suffered such a institution before; second, the reason for such difference between colonies is that some colonies were comfortable for settlers to stay, such as U.S., and some were not, such as those LDCs; third, the colonial state and institutions persisted even after independence, so managing problems in some former colonies are still with the current LDCs now. (Daron Acemoglu, Simon Johnson, and James A. Robinson, 2001) So how cheeky it is that some people say that developing countries should be responsible for their poverty by themselves because of their own inside problems.

One thing need to be noticed is that while there are some justice experts in developed countries now are discovering these cruel truths, some Chinese now are helping developed countries to spread their ridicules “explains” about such problems. China also suffered invasion from outside and the negative influences from such invasion, so Chinese can never accept being cheated again by this kind of “explains”. If such dangerous trend develops, China will really pay new prices because this real inside problem, so just blaming developed countries becomes not useless, and the first solution is to eliminate such betrayers. Then we should summarize more experience about global competition, for example how to negotiate about prices of minerals.

But we believe that things will turn to be better in the future.