We can import knowledge, technologies to stimulate the economy
While our government continues to believe that borrowing money is one of the ways to jumpstart the economy, perhaps it can be reminded that it can also import new knowledge and technologies, which have historically arisen. proven to be one of the most effective ways of stimulating the growing economy.
Money alone, when not backed by productive ideas, will not add much value except to fuel corruption. Zimbabwe needs to organize and produce. We need wealth-creating initiatives that take into account that money is an output of production and that production stimulates trade, which generates income. The country has everything it takes to support the economy, except organization. We need to organize.
Most of the economies that have come out of the doldrums have done so largely by borrowing new ideas from others and honing them to meet the needs of their local circumstances, which would strengthen their economies. One such example is the economy of the United States, which began to gain stability and maturity in the 18th century, after being largely based on agriculture and plantations. However, their history of economic growth did not begin until after they gained independence from Britain in 1776.
There are three key factors behind their success, which are discussed in this article. First, soon after independence, their leaders prioritized putting in place strong systems, structures and policies that would enable the country to make good use of available resources, facilitate trade and economic growth, and develop. ” ensure transparency and accountability. After experiencing economic stagnation, they had to organize themselves. These systems have remained intact and have been the cradle of American economic success over the centuries.
Second, despite the fact that the European industrial revolution started much earlier than theirs and that European investors were prowling their shores in search of raw materials to feed their growing industry, American leaders have instead opted for a local model, empowering their local entrepreneurs and facilitating their access and acquisition of British and European industrial and scientific knowledge. They realized that economic growth is a highly competitive business.
Their agricultural industry was among the first to show signs of rapid growth due to mechanization, which contributed to the high standard of living of their workers and the general population.
Third, as the European industrial revolution was in full swing, selling raw materials to Europe was more than tempting and would have been an easy path to take. This is the easiest route currently taken by most African countries, reducing their income for growth.
The US government has instead chosen to invest heavily in the enrichment and processing of their own raw materials. Locally made products boosted domestic trade, while exports of these same products bolstered international trade with Britain and the rest of the world, which helped spawn the American Industrial Revolution between the 1820s. and 1880.
These three factors, combined with others, spawned the industrialization of the United States, with its local entrepreneurs taking the lead in the iron and steel, engineering, oil and gas, finance, electricity, textiles and finally the automobile. Cotton textile mills were also among the favorite enterprises that later became the foundation of the industrial revolution.
An economic boom put pressure on the government, which led to the expansion of the transport sector such as roads, canals and railways to facilitate trade and distribution of goods and services. The development of infrastructure has helped spur industrial growth, including mining and petroleum. The US government was only able to achieve this because their income base from taxes also increased from their industrial revolution.
These and other developments have prepared the United States to become a global industrial power. Of course, the slave trade and the expropriation of resources from poor countries played a role in the history of economic growth in the United States. In the 20th century, the US economy was among the largest in the world, even though the European Industrial Revolution began earlier. With a great economy comes colossal military might, which together has made the United States the most powerful country in the world.
Chinese history is similar, but more recent and shorter. When they transitioned from communism to capitalism in the late 1970s, they acquired Western industrial knowledge as part of their growth policies. Both President Obama and Donald Trump have repeatedly complained to the World Trade Organization about China’s alleged unorthodox acquisition of its patents, scientific knowledge, and some of its innovation policies. But that hasn’t deterred China.
They localized this knowledge making China one of the leaders in intellectual property. The story does not end there. A massive and cheap Chinese workforce with western industrial knowledge and skills has become a big global economic attraction, resulting in a rush of western industries to China.
As its economy grew and its population grew richer, Western businesses became more established because they make more profit by trading their goods and services with the now richer generation of children in the country. same workforce that made them.
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