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14 years ago

Poverty and Ecuador II

14 years ago
HGQ:

I wonder how far this forum allow us to go on this subject and am trying to focus on Ecuador. You have valid questions but it involves so vast area of topic that I don’t feel I can answer in a page and still I have to go work. I am little sick and stay home that I can answer the part of it.

Yes, I am very very very pessimistic about the possibility of ending poverty in Ecuador. Can it be possible at all? Of course, they can be the first world nation in half the amount of time compare to other example considering the proximity to US and their natural resources.

What is the major factor to determine the possibility? It is the culture. Look at the world and see that in macro aspect of view. You will see the common denominator in each region. North, south, east and west.
There is no need to discuss about west. And North America which majority populations are from western Europe could be considered as the west. The east which is mainly Asia provides so many diversity of economic development cases to catch up the west that it will give you pretty good idea.

The common denominator of the east is almost no natural resource except human being and mostly identical culture for entire region. They are very industrial people oriented toward higher education and sacrificing mentality to their descendents. This is the critical component which will determine to end the poverty.
There may be argument points but I said let’s look at macro aspects. You figure that out the rest and let’s see another subject.

Taiwan, Japan and Singapore are the countries that achieved economic stability in early stage but Taiwan shows certain factors to help Ecuadorian. Chang Kai Sek who had entire China in early stage lost his territory to Mao. The reason was the corruption of his bureaucrats and the deep resentment from the rural farming class with which Mao grabbed the opportunity at the brink of being executed. Chang learned the detrimental lesson and escaped to tiny island and the first thing he did was to execute all the corrupted officers with machine guns. And his economic policy was to stabilize agriculture and welfare of the farmers with all the cost. Until this day Taiwan is the only country in the region there is no economic disparity between urban and rural area. It is Switzerland of Asia. Taiwan was very fortunate at that time because it was under the umbrella of US. He sent so many students to US universities that it had the most US Ph.D per capita in early 80’s. And he encouraged commerce and industry in small business scale unlike the other countries, you probably remember that every little thing was made in Taiwan in US markets. They have a lot of little rich industrialists instead of a few giant conglomerates. Now this Taiwanese capital is the backbone of mainland China’s economy.

I’ll add one more to this not related to Taiwan. The urban slum and poor is mostly comprised of people from rural farming area to escape the famine, natural disaster, or loss of their lands. These people usually are lacking occupational skills and education, and become street people and creates second generation slum and street population. Once it formed it becomes quagmire. And poor nation with no economic resources has no alternatives except just let it be there.

I think this will give you a part of explanation the background of my post. I’m too tired now.

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