Friday, March 5, 2010

Why are some people better off than others?

Did it ever occur to you why others are more fortunate or luckier than you? Have it ever occurred to you why they can do things or purchase things and you can't? In life, there are others who are really more fortunate than we are because of certain factors. Similarly, as there are individuals who are wealthier in terms of resources than others, there are also countries or states that are more developed than others.

There is what we call the Liberalism or Liberal Globalism which advocates a world of liberal ideas and democratic states. These states are integrated through the world believing that growth will benefit the poor. In this theory, integration is believed to be the determining factor which may alleviate the poor. It doesn't matter if the integration will make the rich even richer as long everyone in the state benefits from this development. Liberal globalists are not hostile to the state- this means that they do aspire for the state to meddle with their activities but they want a state support to back them up for the market.

Global Developmentalism shares the commitment of liberal globalists. They think that states must cooperate with one another in the global markets to develop and further increase growth of every state. However, this theory opposes the belief of liberal globalism that it doesn't matter if the rich becomes more wealthier. For them, the growth benefits that will be reaped from the development shall not be unequally distributed. They also reject the idea that the first requirement of development policy is to promote global liberalism. Global developmentalism focuses on the continuing relevance of developmental strategy rather than on the prioritization of the liberal.

On the other hand, the Historical Materialism states that development does not start in the market nor the developmental state but the social relations where the material production on which social life depends take place. This theory believes that capitalism plays an important role in a society and society is shaped by the struggle between classes. Here, they are focused on the profits that are derived from their activities.

These different theories all make perfect sense why others are more developed than other countries. For instance, here in the Philippines, poverty is present and wherever you go, you can see it anywhere. But why is it different for other states like Singapore or Europe? I think it starts with the government. It depends on how the government handles its country. This is reflected back to the government officials since they are the ones who handle the policies and regulations of the state. I agree with the Historical Materialism that most businessmen focus on their private businesses and growth will follow but I agree more with the Global Developmentalism in terms of what it said about the global markets. The reason why countries open their doors to trade is for them to have more opportunities, more exposure and more profit. Social relations is a must in the world and a country that chooses to isolate itself from the rest of the world will not gain any advantage. Interaction helps us grow more. Hence, participating in the global markets will improve the country's trade balance and openness. After all, Net exports is a function of GDP. Moreover, having more resources and external products and learnings will help the country gain more investments. This will lead the country to grow more. Moreover, I think that the Liberal Globalism is right when it mentioned that the benefits will be distributed unequally. A degree of inequality is unavoidable because economic activities depend on these capitalized businesses. Normally, the fortunate ones get more benefits than the less fortunate ones. It is how it works. Economic activities will be distributed unequally not to be unfair but because it is how its distributed. In general, I believe that economic activities, if sustained for around 15 years will definitely bring benefits to the Philippines. Who knows, maybe 15 years from now, we can be a first world country.

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