limanika wrote:@ tycho countries like the USA and Japan are net exporters with very low unemployment rates. They borrow to finance projects which are implemented by citizens of the same countries so the money remains within to generate more income. In Kenya we're net importers, we borrow to pay debts or finance recurrent expenditure, and 30percent of this borrowed money is stolen. If we borrow to finance projects, the contractor and materials are sourced from donor country so most of the money goes back and on top we're left to pay the debt in full. To add insult to injury, we don't do overall cost benefit analysis for our projects
I suppose this behavior is part of how the global economic system should be or how it's emerged to be in practice. Think about it, if the global economic system is both closed and pegged on one currency then it must follow that some countries will be net exporters and others, net importers.
If this is true then our intuition regarding a new world order may be very important. For example a new world order may depend less on being pegged on a single currency like the dollar. How would the global financial and economic system look like? One perspective would be that of infinite resources, meaning less demand for corruption, and less expectation on government to provide public goods.
It follows that we'd be better off if we quickly grasped the nwo and adapted our institutions to it ...