How Does a Nation Become Economically Developed?

To jive a little about it: a country should get its shit together. Economic underdevelopment is at this stage in history entirely the consequence of misgovernment. I wrote a book about the topic of misgovernment. Essentially, I break this down into three categories: bad politics, maladministration, and predatory jurisdiction. Bad politics includes corruption, cronyism, election fraud, and abuse of power. Maladministration is about incompetence and weak management. Predatory jurisdiction occurs when governments possess more formal powers than necessary and good. Too much formal power contributes to misgovernment, such as the authority to borrow without proper regulation. For a country to develop, it must minimize bad politics, maladministration, and predatory jurisdiction. This is a huge undertaking and one that cannot be underestimated!

Requirements for Economic Development

To simplify the theory, let us make a list of requirements for a nation to become economically developed:

Key Requirements:

Secures and guarantees internal peace and stability. Rules predictably, not arbitrarily. Enforces laws of the land fairly. Accepts and promotes economic freedom and free trade. Protects property rights. Offers reasonable access to land ownership. Does not overregulate business activity. Screens and promotes trade treaties to gain access to foreign markets. Taxes businesses fairly and efficiently. Secures a flexible labor market to make hiring and firing easy and efficient. Manages public finances prudently. Manages the national currency well. Invests in physical infrastructure. Invests in public education and public healthcare. Invests in urban development.

While there are more things that governments can do, the items above are the most critical. To secure the proper execution of these points, governments must adhere to certain principles:

Promote human rights, including economic rights. Build, promote, or upgrade institutions that support the rule of law. Professionalize the civil service. Professionalize the army, police, and judiciary. Keep the army away from politics.

Conclusion

Building a nation and developing its economy is hard work. It is a long-haul project that requires committed, ambitious, and patriotic leaders. It requires a people willing to accept leadership, sacrifice, and hard work. Above all, both those in high positions and the greater masses must love their children and wish them a better world.

Choosing these leaders may seem like a daunting task, but remember, the path to economic development is paved with small steps. Every effort to improve governance, promote economic freedom, and invest in infrastructure is a step in the right direction.