Keeping Third World countries poor

By Serge Kreutz

It cannot be a viable male public strategy to have poor Third World countries becoming richer. Many aspects of life in Third World countries that are favorable for men are precisely tied to the fact that Third World countries are poor.

Luckily, local elites in many Third World countries are not very interested in the common good, and more interested in their own benefits.

Luckily, too, rich people in Western countries are usually not interested in creating wealth, by means of foreign investment, in Third World countries.

Most foreign investment in Third World countries is temporary and just geared towards profit-taking. It is not a form of long-term asset creation or even just long-term asset management. As practically all profits are repatriated (to be consumed somewhere else), such foreign investment does not create wealth in Third World countries. And the little wealth that initially seems to be created in the Third World country anyway will be moved to developed countries when rich locals emigrate.

All foreign investment that finances the exploitation of natural resources in Third World countries is likely to be a net drain of a Third World country’s wealth. Capital that is brought into a Third World country to exploit natural resources for export is not wealth. This capital just finances tools which, after a short while, are only of scrap value.

The only certain case of a transfer of wealth from one country to another country is the transfer of wealthy people. And that trend does not point in the direction of Third World countries, but the opposite way.

Wealthy locals in many Third World countries typically are busy transferring their own wealth to developed nations.

The super rich from the Third World bring the money they made from the West back to the West

The rich getting even richer in the Third World

Most children of really rich people in most Third World countries go to private schools in the UK, Australia, New Zealand, the US, or Switzerland.

International students boost Scottish economy by £312m

Selling education to overseas students has become a major industry in New Zealand

Often enough, these children of Third World elites sooner or later become permanent residents, or citizens, in those rich countries. Any citizen of a Third World country who has amassed a fortune in the range of 0.5 to 2 million US dollars has an easy time applying for a residence permit in most developed nations.

Invest 1 million pounds in the UK, and become a UK permanent resident http://www.workpermit.com/uk/investor.htm

Invest 500,000 dollars in the US, and get a Green Card

People with a net worth of 800,000 Canadian dollars can easily immigate to Canada

Migrating to Australia, based on a net value of 500,000 Australian dollars

That rich locals transfer wealth back to the US and Europe prolongs much of African, and Third World, poverty. And this won’t change by allowing Third World countries better access to the markets in the developed countries. While such easier access may cause a larger number of traders in Third World countries to become rich, these traders will anyway bring their wealth back to the developed countries once they emigrate to one of them.

Thus the much touted policies of better market access for products of Third World countries will, at the end, create wealth in developed countries (the emigration destinations of rich locals from Third World countries), and not for the Third World countries themselves.

Traditionally, Third World countries could offer to their local elites that these elites were, to a certain degree, independent from the law. In many Third World countries, rich people could pretty much do what they wanted. That’s a real piece of quality of life. And it’s waiting to be sold to rich people from North America and Western Europe.

International NGOs claim that curtailing the privileges of local elites (eradicating corruption) will help the economic development of a country, thus creating wealth.

It won’t. It will only make the local elites leave, and take their wealth to Europe or America.