INFLATION IN THE UNDERDEVELOPED COUNTRIES

[leftgirly]

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?

[jrrsparkles]

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 occurs when the debt of their country mounting up and its same happening all over the world with no difference of developed or developing countries.Only way to reduce the inflation rate is to keep the economic steady so they no need to print more money to pay their debts.And also their economic should more depends on the export rather than importing in my opinion.

[Kakmakr]

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. 

[fillippone]

Agree 100% with the above.
Ultimately the problem is always the same.
Easy, fiat money, create incentives for debt, who ultimately create distortion in allocation choices. While first world countries  put some effort in resisting those distortions (may be creating even bigger distortions, like QE's), 3rd world countries seldom go the shortest and more direct way of money printing and hyperinflation to get rid of such debt, at cost of their own economies. The accountability of their leaders being the main culprit.
Once again, hard money (BTC) can fix that.

[1Referee]

for example some Asian countries sell some regions rich in natural resources to developed countries, yeah they get big money from it, but their natural resources are exploited until they run out, their gold, their mines are dredged by these countries. selling natural resources is not a way out to make economy better.

Big money in relation to what they have, but it's a joke compared to what they would be able to get out of it if they could do everything themselves. No well developed country pays big money for a piece of ground when it isn't at least worth hundreds or even thousands of times more than what they put in.

These countries need to invest in themselves more so that they don't sell themselves for cheap to developed countries. I however doubt that they even realize it because this has been happening for decades. It's nothing new. Not sure where all that money goes, but it certainly doesn't seem to be going there where it's needed the most.

[el kaka22]

Those bad economies in small countries that have high inflation is not doing that because they would like to try their hand at being starving to death.

Those countries are forced for that because big countries take advantage of those places like a slave, they pay peanut money for their products and labor and all that and if you stop doing it because of price then they will go to another one, there are only a few huge nations whereas there are over hundred small tiny nations that could be exploited. Venezuela was loved by USA until they started to meddle with Oil prices and actually use it as a threat, you can't threaten USA with oil, those dudes literally went to war across the globe just to get some more oil from Iraq for Christ sake.

As long as big economies keep crushing small ones the inflation there will continue to go up.

[Ryker1]

Well, that's true. There is an inflation of the economy in undeveloped countries. In Asia, there's a lot of countries including the Philippines. If only the government will focus on the natural resources in this country maybe the economy will rise up. Indeed, it happens to all countries not only to those undeveloped countries I think. The fact there are small countries that can't stand alone and need help to those fully developed countries. Just like the country of the US, there are a lot of countries in Asia who rely on them.

[TIDOVEE]

i believe things will get better for the under developed countries if they add value to their natural resources for their personal benefit without selling to other country simply because, most of the foreign exchange services offered by many countries has no value adding to most citizens, and in the same vein, the underdeveloped countries need the developed nations to get developed too.

[sana54210]

I would not say that the in=inflation rate in all these under developed countries is as a result of them selling to countries with good economy, look at china, china has a very good economy and they are far developed, most of their produced are not only sold to countries with good economy, but also sold to countries that are under developed.

One thing that has jet china out of inflation is the level of their corruption that is low, china has been able to curtail corruption that every agencies knows the right thing to do, but these under developed countries, when they get the chance to sell their resources, they end up squandering the moment rather than them using it for something that will be of benefit to their country and things that would make inflation be controlled.

[adzino]

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 whole text sounds really hilarious. Do you really have any clue about how a country's economy actually work? You are saying the world economy is crashing due to inflation? As far as I am aware, only few countries are suffering from extreme inflation that is causing their economic growth to struggle down. How and what is your reason of partly blaming underdeveloped countries for high inflation?
So you are saying, without exporting anything a country can develop and get rid of inflation? -> LOL.

[Upgrade00]

...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>

A clear case of this, would be my nation Nigeria. Nigeria is one of the highest producers of crude oil in the world, and yet do not have the resources to refine the amount needed for the nation and definitely can not independently export to other nations, despite having discovered petroleum over half a century ago.

Developing countries would need to begin to act independently inorder to boost their economiiand livelihoods of it's citizenry.

[CryptopreneurBrainboss]

Those bad economies in small countries that have high inflation is not doing that because they would like to try their hand at being starving to death.

Those countries are forced for that because big countries take advantage of those places like a slave, they pay peanut money for their products and labor and all that.

I applaud you for this reply of yours, would had merited if i had spare smerits. This is exactly the situation those poor economy nation find themselves in especially those from Africa. Posted a thread once on the forum titled; Africa isn't poor - Africa is being raped, there you see numerous resources the countries in Africa have yet they can't utilize those resources to the fullest of potential to elevate the economy of the nation. You can't tell me an oil producing nation is still struggling to provide a conducive economy for her citizens yet this oil are been drained out of the country on a daily basis from the soil and distributed round the whole.

Sure, I won't disagree if you tell me Africans are raping themselves too, that's to say we're stealing from ourselves. I won't doubt that but with the amount of wealth the soil is producing, the Africans stealing the wealth must had support from the Westerners (Ameriacns), Asians, Europeans etc before this level of stealing can be successful yet they call us poor when they're the ones stealing or providing shelter to those stealing to invest in their country. The inflation rate to the dollar is on the decline yearly, and all this are just master plan strategy to keep those country under their influence (control). They claim to be rendering humanitarian assistance with their left hand yet they take away wealth of the nation with their right hand.

[romero121]

That is wrong if we blame the under developed countries for the inflation that is found around the world. Purely the first world countries were the reason for the prevailing market condition. Inflation within the under developed countries can't be rectified within a short. It takes years, because we can see most of the third world countries go poorer just because their resources were evaded by the first world countries.

The economy of a country is its resource, when this is taken advantage by someone else then what the respective country gets is nothing. Here first world countries should not take the revenue, for which they should help with funding and support the citizens of that particular country to benefit. This will not happen, and until then first world countries doesn't have the right to state the global inflation is caused due to the under developed and third world countries.

[Kakmakr]

...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>

A clear case of this, would be my nation Nigeria. Nigeria is one of the highest producers of crude oil in the world, and yet do not have the resources to refine the amount needed for the nation and definitely can not independently export to other nations, despite having discovered petroleum over half a century ago.

Developing countries would need to begin to act independently inorder to boost their economiiand livelihoods of it's citizenry.

Well, that is just part of your problem. Not to disrespect you, but I did some contract work for your country a few years ago and our company had to pay several bribes to get things done there. You will know that certain things will never get done, if you do not pay these bribes to the corrupt individuals. <Note : I am saying individuals, because not everyone are corrupt there>

This is also not something that are unique to Nigeria, because even 1st world countries have corrupt government officials and private companies paying these bribes.     It is also these corrupt individuals that are causing the problems in their own economy. <Making it too difficult for companies to operate there and printing too much fiat currencies.>

[Vishnu.Reang]

Underdeveloped countries continue to print banknotes without any limit, to cover the increasing government expenses. So it is not very surprising that the inflation is very high. Even in my country, the inflation rate had touched 14% mark in 2014, when the UPA was in power (they were very corrupt). Now the inflation is down to around 3%, as no corruption scandals have been reported from the ruling coalition.

[MonsterV]

I think it could have been if government of that country was smart enough to spin economy without relying on other countries. One of them is in technology, technology provides hope that can restore a country's economy, but country must make an extraordinary innovation like what has been done by other developed countries such as US, Japan, China, etc.

From these technological innovations they are able to boost level of country's economy, without having to sell natural resources to other countries.

I would not say that the in=inflation rate in all these under developed countries is as a result of them selling to countries with good economy, look at china, china has a very good economy and they are far developed, most of their produced are not only sold to countries with good economy, but also sold to countries that are under developed.

One thing that has jet china out of inflation is the level of their corruption that is low, china has been able to curtail corruption that every agencies knows the right thing to do, but these under developed countries, when they get the chance to sell their resources, they end up squandering the moment rather than them using it for something that will be of benefit to their country and things that would make inflation be controlled.

Yeah right, corruption is indeed a major problem for every country, corruption hinders economic development that was previously well planned. China is one of developed countries, so naturally their country's corruption level is low, most of the biggest corruption is in developing countries. Developing countries still have many imperfect government systems, so this is exploited by irresponsible individuals who end up harming their own country.

[sunsilk]

How could you just blame those underdeveloped countries for having high inflation? no country can avoid inflation and everyone is bound to experience it. As long as you know the current stand of their gov't and how their officials run the gov't, well I guess you can blame them for their economy.

But notice also those underdeveloped countries that are trying to push themselves upwards by making alliances and partnerships. Those hardworking leaders knows what they do but if there's something that stops them to thrive their economy, it must be inside their gov't.

[carter34]

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?

It will amount to nothing because everybody needs somebody, help to survive or grow just like kids get to adult and adults needs support in their old age. Therefore, countries need each other to get what they don't have.

Even what value they need to add to their resources might need to be sort, like technology and they need it somewhere 

[The Sceptical Chymist]

<snip>

Well said, all of it.

Now I'm no economist, but I didn't think inflation was that high--at least not in my country, though I don't live in a 3rd world one (and that's not tooting my own horn; we have problems aplenty here).  I know some countries like Venezuela and Zimbabwe are having a very hard time with inflation, but is it really a 3rd-worldwide problem right now?  For a thread like this, some links and data would be very useful instead of vague statements.

I think the economic problems of 3rd world countries is and always has been a problem of politics.  You can't say those countries are lacking in natural resources, and you'd think that they'd be more prosperous than they are--but the riches always seem to flow to those in power, leaving the citizens dirt poor.  And that's with or without high inflation. 

Those hardworking leaders knows what they do but if there's something that stops them to thrive their economy, it must be inside their gov't.

Yeah, and that something is greed and a complete indifference to the welfare of the citizens.

[TheCoinGrabber]

Services is definitely one thing that can be easily developed without the government spending much on infrastructure. They can just renovate existing infrastructure and maybe increase power supply. Much of the outsourcing business in India and Philippines received no government subsidy, it's all private. The company either build their own offices or rent existing ones.

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?

Selling natural resources will only worsen the country's economy in the long run, they will only benefit momentarily without seeing the long-term effects that will occur. for example some Asian countries sell some regions rich in natural resources to developed countries, yeah they get big money from it, but their natural resources are exploited until they run out, their gold, their mines are dredged by these countries. selling natural resources is not a way out to make economy better.

Feels weird seeing this comment after watching a video about Nauru. Classic example of selling of resources and not preparing for when it runs out.

My opinion is that developing countries should develop their own manufacturing sector to add value to the product. You can charge more for a finished product than raw material and you get to keep all the profit rather than your raw material getting haggled.