Are there any present day ways that developed countries are helping the developing countries to industrialize?
Thanks for any help guys
- 1 decade agoFavorite Answer
Well you have to look at individual countries or specific areas of economies. For example the US helps Mexico develop by incorporating it in NAFTA and having a preferential trade agreement with it. In the EU, countries give structural funds to members that earn less than 30% of the EU average GDP (such nations include Bulgaria and Romania) and also the EU has preferential trade agreements with former collonies of France and Britain. To tell you the truth though none of these really help, until countries stop imposing tariffs and forming blocks against developing nations these nations will always be dependent on foreign aid and will never manage to support themselves because producers will be constantly destroyed by the dumping of products in their markets. Below there are some good articles you could look at for more help.
- 1 decade ago
The most visible form of help is probably foreign aid. A great deal of monetary foreign aid is sent to developing countries in the form of grants and loans from a wide variety of developmental aid agencies.
The effectiveness of such monetary aid is debatable, especially since there is often so much latitude for corrupt governments to take advantage of foreign aid. That being said, there are also many countries where foreign aid has managed to bring about significant economic growth.
A related form of aid is debt relief. Developing countries often owe great sums of money to countries that have loaned money to them in the past. Because the developing country often has so much debt and no way to pay it off, foreign investors are scared away. Debt relief basically cancels the debt of these countries, opening the way for investment and loans. Of course, if the new incoming money is not used correctly, it is all too easy for these countries to fall back into a situation where they have too much debt and no way to service it.