INFLATION IN THE UNDERDEVELOPED COUNTRIES

[fiulpro]

It's not like the underdeveloped countries are to be blamed for their bad times ..to be honest the developing countries are actually to be blamed ...at some point of the other they use those underdeveloped countries for their resources , you know in Ukraine the government illegally pays money to the Ukrainian government to store their acid and waste that is harmful and in also periodically they cut off huge trees and wipe up the whole forest and they are supplied to Europe ... and guess what. ? No one will ever know about this because the news won't publish this .. the local knows ...the government knows and rest is corruption.

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[mersal]

The world economy keeps crashing with many incidence of inflation. What is happening at the moment is  a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good  if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?

Inflation increases due to their government printing more and more money but its happening due to they are depending more on the other countries so they need to use other currencies like dollar to import things than in their local fiat.First underdeveloped country need to increase their export which make them less dependent or equally.

[pishite]

Inflation is not only due to the sale of minerals, but because the country that sold its resources does not see this money because it settles in the pockets of officials who do not want to develop business in their countries by building new enterprises and giving their people new work.

[el kaka22]

Inflation is not only due to the sale of minerals, but because the country that sold its resources does not see this money because it settles in the pockets of officials who do not want to develop business in their countries by building new enterprises and giving their people new work.

It is just known that there are enough resources for everyone in the world. Don't get me wrong I am not going to go full communist on you and tell you that everyone should own a lambo of their own, this is not like that. However, if people are starving to death then saying maybe we have enough resources not to let that happen is not communism.

People should learn the difference between helping people out and communism, if you are helping people not starve to death, you can still be capitalist, it is literally just food so they can live some more instead of die, otherwise keep making your Tesla cars and sell them months ahead of schedule in pre-order or keep making your workers work 16 hours a day in a warehouse without extra pay for extra profits of your amazon share holders, those capitalist horrible stuff could still go on (hopefully they shouldn't) but at least make sure people are not hungry.

It comes to nation to nation helps, if a country is too poor to stay alive like Venezuela and Yemen has been going through and people are literally losing weight because they can't find anything to eat, then other nations should send all their extra foods to there.

[iv4n]

Inflation is not only due to the sale of minerals, but because the country that sold its resources does not see this money because it settles in the pockets of officials who do not want to develop business in their countries by building new enterprises and giving their people new work.

It is just known that there are enough resources for everyone in the world. Don't get me wrong I am not going to go full communist on you and tell you that everyone should own a lambo of their own, this is not like that. However, if people are starving to death then saying maybe we have enough resources not to let that happen is not communism.

People should learn the difference between helping people out and communism, if you are helping people not starve to death, you can still be capitalist, it is literally just food so they can live some more instead of die, otherwise keep making your Tesla cars and sell them months ahead of schedule in pre-order or keep making your workers work 16 hours a day in a warehouse without extra pay for extra profits of your amazon share holders, those capitalist horrible stuff could still go on (hopefully they shouldn't) but at least make sure people are not hungry.

It comes to nation to nation helps, if a country is too poor to stay alive like Venezuela and Yemen has been going through and people are literally losing weight because they can't find anything to eat, then other nations should send all their extra foods to there.

What you mean by "other nations"? Why not USA help Venezuela? Why they don`t help Yemen? It`s a war out there, and that war is not fair. Big countries are bullying small countries, with bribery and corruption they come and take over for valuable resources, minerals, oil, precious metals, or just because strategical position.
Nike, Nestle, H&M, Philip Morris and many others still use child labor, to not mention that this big companies from big countries are paying minimal to people who works for them in this underdeveloped countries. Therefore we can assume that underdeveloped countries will never be free from big countries, when ever people decide to fight against it, big countries come with big, well armed armies.

[audaciousbeing]

The world economy keeps crashing with many incidence of inflation. What is happening at the moment is  a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good  if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?

Its unfortunate that the underdeveloped countries have been plagued by leaders who are just there because of their own pockets and not anything to do with the masses talk-less of the country. They so much love themselves that they are more concerned with ensuring their family wealth for the coming generation is well secured through any means necessary even at the expense of the people they swore to protect and defend. Its so bad that the leaders of these countries would prefer to patronize the goods and services of the developed economies at the expense of local industries while the companies that manage to set up despite the stiff economic conditions are made to pay via all forms of taxes to finance their luxurious lifestyle either directly or indirectly.

Unfortunately, its not a problem that there is end in sight at the moment as the problem is a fundamental one. Countries have equally learned to managed their inflation effect and the advance countries that have been responsible to a large extent are ready with aids and subventions in other to cushion the effect of such mis-management of the common wealth.

[Harlot]

You can't particularly blame the countries itself but the ones running it for putting their own country to the ground. One of the recent events is the countries who have fallen to the Chinese debt trap that led to China controlling the asset of their own country from their unpaid loans. This wouldn't really happen if this countries are smart enough not to accept the terms of China. Other mistakes underdeveloped countries are doing is overprinting their own fiat currency further devaluing it in its process. If only the government is smart enough they will know printing more money isn't really the solution to anything .

[silversurfer1958]

The world economy keeps crashing with many incidence of inflation. What is happening at the moment is  a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good  if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?

I suppose you are having confusion about the economy. For developing countries, they need to work with larger countries to make the export and import process easier and have a better price.
New trade makes a country richer, you should rethink your opinion.

[dengpei]

The world economy keeps crashing with many incidence of inflation. What is happening at the moment is  a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good  if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?

What's killing developing countries is corruption, cronyism and toxic debt. In Africa, countries like Zambia have been heavily saddled with toxic Chinese debts that they cannot repay and as a result, their natural resources are at stake because they have been used as collateral to secure those loans!

[bryant.coleman]

The world economy keeps crashing with many incidence of inflation. What is happening at the moment is  a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good  if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?

If you look at the "underdeveloped" countries all around the world, you will notice a very similar pattern. In almost all of these countries, the taxpayer base is very small and a small number of taxpayers are burdened with subsidizing the majority of the population that lives on welfare payments and benefits. And what happens once the government can't collect enough taxes? They will just print money without any control. And this is what causes uncontrolled inflation in these countries.

A prime example to this is the second most populous country in the world - India. I was told that only around 3% of the population (around 40 million individuals) pay income tax there. Effectively, this 3% is subsidizing the remaining 97%. I am not saying that the situation is this bad in the other developing nations. But the pattern is similar.

[LUCKMCFLY]

The world economy keeps crashing with many incidence of inflation. What is happening at the moment is  a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good  if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?

The problem of underdeveloped countries with economies in crisis is due to bad management by their rulers, they have applied erroneous policies where it affects the internal financial system. In view of this, Bitcoin technology offers a deflationary economy, which solves the particular economies of what they use.

Some renewable and non-renewable resources are not enough to get these countries out of inflation crises, because their policies do not offer improvements for their workers and workers, they would only exploit more they would not fix.

[el kaka22]

What you mean by "other nations"? Why not USA help Venezuela? Why they don`t help Yemen? It`s a war out there, and that war is not fair. Big countries are bullying small countries, with bribery and corruption they come and take over for valuable resources, minerals, oil, precious metals, or just because strategical position.
Nike, Nestle, H&M, Philip Morris and many others still use child labor, to not mention that this big companies from big countries are paying minimal to people who works for them in this underdeveloped countries. Therefore we can assume that underdeveloped countries will never be free from big countries, when ever people decide to fight against it, big countries come with big, well armed armies.

I have said the exact same thing. Capitalist corporations could continue to do whatever they want, as long as its just making people poor there is a moral and ethical question there but there is no humanitarian question there.

At the same time, if a country is dying of starvation like Venezuela then all nations can get together and help, just to give an example 1 billion dollars to help Venezuela is not a big amount for USA, nor for UK nor for France or German, these countries can get together and spend 5 billion dollars all on food and bring it to Venezuela, not just in crates and all but also in shape of resources and seeds so the country can get back on its feet without other nations help after a while. All in all we just need nations to help each other out.

[wxa7115]

The world economy keeps crashing with many incidence of inflation. What is happening at the moment is  a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good  if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?

This is a lot more complex than that, developed countries used to be fiscally responsible but that is not the case anymore, some of the most indebted countries in the world are developed countries and this is creating huge problems for the world economy, in my opinion governments around the world have cornered themselves, there is no way out of this problem except with a massive crisis, the crisis is probably going to be so bad that governments are going to try to back their currencies with something like gold or silver.

But at that time most of the population will lose confidence in their currencies and it is likely that they will begin to trade directly with gold and if we are lucky they will begin to use also cryptocurrencies like bitcoin and will avoid any government printed currency as much as they can.

[yulchatar]

The issue is a lot more complex than most people might think. The first world countries perfected the art to pull the wool over third world countries heads, because they arrange trade agreements to favor them and they make sure that they extract as much raw resources as possible from these countries and then refine or manufacture goods from this raw material and then sell that at inflated prices back to those countries. <This offsets the import and exports between 1st world and 3rd world countries>

Some governments make bad political decisions and then 1st world countries would boycott them and this will hamper economic growth. The 3rd world countries are then forced to loan money to fund large infrastructure and development projects and the debt spiral will start pulling them down and they will start printing more money that would devalue their local currency. 

This is the most clear and precise description of the situation that has developed in my country. Land, which is rich in an incredible amount of minerals, sold to foreign buyers and investors piece by piece. Everything that is mined is sold to abroad, and then the finished product goes to the local market at considerable prices. And it is clear that such cooperation doesn't make the country richer.

[shield132]

The world economy keeps crashing with many incidence of inflation. What is happening at the moment is  a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good  if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?

Problem in most of these countries is that they can't produce mostly anything and are importing things, for this reason they hugely depend on national currency / usd exchange ratio. So when they buy things from outside, more usd goes from their country, so national currency gets weak, because of weak national currency people try to stick with usd which makes it even weaker. So as a result we get increased prices on everything while work salary gets decreased or the same. In overall this causes huge economic fall.

[Gozie51]

The issue is a lot more complex than most people might think. The first world countries perfected the art to pull the wool over third world countries heads, because they arrange trade agreements to favor them and they make sure that they extract as much raw resources as possible from these countries and then refine or manufacture goods from this raw material and then sell that at inflated prices back to those countries. <This offsets the import and exports between 1st world and 3rd world countries>

Some governments make bad political decisions and then 1st world countries would boycott them and this will hamper economic growth. The 3rd world countries are then forced to loan money to fund large infrastructure and development projects and the debt spiral will start pulling them down and they will start printing more money that would devalue their local currency. 

This is the most clear and precise description of the situation that has developed in my country. Land, which is rich in an incredible amount of minerals, sold to foreign buyers and investors piece by piece. Everything that is mined is sold to abroad, and then the finished product goes to the local market at considerable prices. And it is clear that such cooperation doesn't make the country richer.

This is saying simply that countries that can't manufacture things, products are those that are in such predicament. The third world countries are majorly found in this level of economic quagmire.

[bitmover]

Some governments make bad political decisions and then 1st world countries would boycott them and this will hamper economic growth. The 3rd world countries are then forced to loan money to fund large infrastructure and development projects and the debt spiral will start pulling them down and they will start printing more money that would devalue their local currency. 

If that were true, 3rd world countries would be in a better situation. Unfortunately, the situation is much more related to public debt and irresponsible politicians, like Greece experienced.


In Brazil, for example, take a look at this article published in a domestic economic magazine. I will translate the last paragraph using google translator

Oil mega-auction is held for November 6, says ANP director general


Under the bill approved by the Senate, which needs to go through the House, $ 33 billion will be discounted to cover a federal government debt with Petrobras; R $ 10.95 billion (15%) will be passed on to states, following the criteria of the State Participation Fund (FPE); another R $ 10.95 billion (15%) will be distributed to the municipalities, according to the criteria of the Municipal Participation Fund (FPM); R $ 2.19 billion (3%) goes to Rio de Janeiro; and R $ 48.9 billion will be with the Union.

According to the proposal approved by the Senate, the governors and mayors will be obligated to allocate all the values in investments and contributions in pension funds.
https://www.infomoney.com.br/mercados/megaleilao-de-petroleo-esta-mantido-para-6-de-novembro-diz-diretor-geral-da-anp/

What does this means? That we are now going to make a big auction of our giant oil fields and use that money to build a new infrastructure? No. Education? No. Technology? No. We are going to spend all that money to pay pension funds, i.e., current expenses and personnel expenses.

This is not an investment. This country is never moving foward, and it is not 1st world countries faults. This is not capitalism or greedy companies fault. Who can we blame? Irresponsible government that spent and promised to spend more money than it actually have. Solution? Sell our property to pay current expenses.

[Hydrogen]

This topic invokes something known as imperialism.

The hierarchy of nations is defined within social order resembling a caste system. Wealthy and powerful nations retain their status through adopting measures to ensure poor(er) nations are unable to elevate their own standards and become competitive. This is reflected by leaders of underdeveloped countries receiving financing and support from foreign powers in exchange for guarantees to keep the population repressed.

As mentioned, the end goal of imperialism is to limit competition between wealthy and poor nations, to guarantee the wealthy retain their status as king of the mountain. It enforces the status quo of the wealthy remaining rich, and those living in poverty remaining poor. This is one reason why many brutal and repressive dictators are found to receive billions in support from foreign sources. It is cheaper for wealthier nations to fund a dictator who is guaranteed to regress educational and economic standards so their country can never compete on a global scale. Cheaper than it would be to compete directly with said nation if they made a legitimate effort to strengthen their economy and elevate standard of living.

The second issue relates to design flaws in how governments are structured. Governments are structured as the largest and most powerful monopolies in the world. Any negative criticism that can be said about US big tech or amazon being a monopoly would apply far more to governments as they lack competition and are not incentivized to produce intelligent nor efficient solutions to problems.

Being a monopoly implies if state issued fiat currency hyperinflates, there are no alternative options. If governments implement poor economic policy or poor regulatory standards, there are no alternative options. The centralized design of state authority is flawed from inception due to it being monopolistic in origin and implementation.

One way to improve conditions relating to inflation would be for governments to issue more than one fiat currency to create a competitive environment. That way if one state issued fiat is poorly managed and devalues, there are other superior options for consumers to fall back on. Governments and leaders need a competitive environment to produce their highest quality work and demonstrate why they deserve to make decisions that affect the lives of millions.

Breaking up state monopolies and forcing them to compete on some level has potential to produce a superior state format in contrast with the way things are now.

[davis196]

The world economy keeps crashing with many incidence of inflation. What is happening at the moment is  a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good  if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?

Most of the underdeveloped countries have populist governments,that spend a lot more money than they can gather from taxation.This creates more debt and weakens their national currencies even more.
Another problem is the "poverty trap".There are too many young people and not enough money for education,so most of the young people grow up uneducated and therefore poor.
I don't believe that anything positive can happen in the underdeveloped countries.

[deisik]

The world economy keeps crashing with many incidence of inflation. What is happening at the moment is  a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good  if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?

If you ask me, that would completely bring down their economies (and very fast at that)

These countries have to export their natural resources "as is" because there is not much else they can do (or sell) as they lack the required technologies as well as expertise "to add value to their natural resources themselves". Remember, they are underdeveloped, which basically means natural resources are their only available means of keeping up their level of welfare

If they didn't export natural resources as you suggest, they wouldn't receive the financial means (read, dollars) to buy thousands of other things which they don't produce themselves since they are underdeveloped (but I repeat myself). Then they would quickly turn into a North Korea of sorts. In simple terms, selling whatever they have is their only option (other than developing their economy the "hard way"). It is just how things stand in the world