How much money would be needed to modernize a third world countries economy?

best retirement gift ideas for women image

Q. I find it very shocking how fast some of these countries economies have grown. The world is changing and it's amazing. There are still a lot of third world countries still though. I was wondering how much investment would be needed to totally modernize a third world countries economy? Let's use Egypt as an example..

Population - 77 million
GDP - 470 billion
GDP per Cap - 2,450


I find the best way to modernize is built infrastructure and spread education. My guess would be 800 billion to 1 trillion to totally modernize a economy..

Answer
I agree with another poster that corruption in government would bar any progress that an influx of cash would bring. The real problem to the idea that there is a set amount of money it that the money must go to the highest valued areas and that because the influx of buying power has not yet lead to an increase in productive capacity, the rest of the world would be worse of in the short run because of the influx.

To illustrate it would be like 1 trillion injected into Nigeria and the buying power used to build expensive government buildings and hospitals, pretty up the land, and use the rest to feed the starving. While the hospitals would certainly help and feeding the hungry isn't a bad goal, this would not lead to very much economic growth at all. What would have to be increaced is productive capacity so you would want factories, ports, and ships in addition to just things like infrastructure and education. This example could go for Egypt too but Egypt is starting from a much better place. The issue would be finding what things should be invested in and how much and central planners are notoriously bad at this - markets tend to do this much better.

Another issue could be cultural differences that prevent modernization. Extreeme examples could be like Native Americans who would rather live on reservation in relative poverty. Other examples could be like farmers in Egypt unwilling to seek more profitable employment, Muslim countries unwilling to educate women and let them enter the workforce. These cultural differences are evident in industrialized countries too: Greeks riot when fully paid retirement is put back to age 57, Spain shuts down in the middle of the day for Siesta, and the French make it illegal to work more than so many hours a day (and their world cup team refuses to practice and gets embarrassed in the game).

So basically there is no magic number. Industrialized nations took $0 of gift money to become modernized and some third world countries would invest a trillion dollars only to let it fall into disrepair in a few generations because of corruption and cultural factors.

What should I buy my grandpas and my dad and my uncle?

Lily L

Actually, I need gift for both of them. I feel with women I can always get them pretty scarves or jewelry (you can't have too much!) but it's impossible to find gift for the male members of my family.
Why would my grandpas want ties? They are retired. And my neither my uncle or my dad wear them to work either.

Answer
Christmas gift Ideas for Grandpa :
Men's Robes
GPS
News & Politics Magazines
Gourmet Cheese Assortments
Home Improvement Books
Retirement Planning Books
Indoor Games
Sports Fan Gear
Golfing Supplies
Geneaology Software
Cookbooks
Electric Shavers
Classical music
Documentaries
Outdoor Cooking
Car Cleaning Kits
PC Video Cameras
Bonsai
http://www.amazon.com/gp/redirect.html?ie=UTF8&location=http%3A%2F%2Fwww.amazon.com%2Fgp%2Fgift-central%2Fevent%2Fgrandpa%3Fie%3DUTF8%26ref_%3Dcm%255Fgift%255Fgg%255Fleftp%255Fcm%255Fgift%255Fgg%255Frel%255Flp%255Fgpa&tag=gobsweb-20&linkCode=ur2&camp=1789&creative=390957

Christmas gift Ideas for Dad :
Classic Vocalists CD Box Sets
Universal Remote Controllers
Action & Adventure Box Sets
Jump Starters, Battery Chargers & Portable Power
Magazines on Golf
Biographies
High-Def TVs
Books on History
Golf Accessories
Speaker Systems
Magazines on How-to & Home Improvement
Handheld Organizers & PDAs
Multi-tools
Magazines on Business & Investment
Flashlights
Magazines on News & Politics
Snowblowers
Digital Cameras
Sports Magazines
Hand Exercisers
Power Inverters
Baby Backpacks & Carriers
Box Set DVDs on Military & War
Power Tool Combo Packs
Outerwear
Gardening Tools
GPS
Portable DVD Players
Electric Shavers
Golf DVDs
http://www.amazon.com/gp/redirect.html?ie=UTF8&location=http%3A%2F%2Fwww.amazon.com%2Fgp%2Fgift-central%2Fevent%2Fdad-guides%3Fie%3DUTF8%26ref_%3Dcm%255Fgift%255Fgg%255Fleftp%255Fcm%255Fgift%255Fgg%255Frel%255Flp%255Fdad&tag=gobsweb-20&linkCode=ur2&camp=1789&creative=390957

Hope this help.

Powered by Yahoo! Answers

Title Post: How much money would be needed to modernize a third world countries economy?
Rating: 96% based on 976 ratings. 4,8 user reviews.
Author: Unknown

Thanks For Coming To My Blog