I
have made it clear in earlier blogs that national growth, formerly
called "development" is attributable to one source: industrial
exports. Industry generates the necessary conditions for a growing
economy: meritocracy, honesty and the reduction in costs that come from
open markets.
From a global perspective, economic growth comes from industrial nations outsourcing their employment and moving factories overseas to whatever Third World countries want them and will protect them.
What isn't obvious to most people and certainly not to people who have never traveled in the Third World is that many societies don't want to change.
So what does that leave for foreign aid to do, if it has little or
nothing to do with economic growth?
The U.S. should consider using its foreign aid solely for social benefit. I suggest that we build small medical clinics in 70 countries with on-going training for the medical practitioners and supplying medical equipment. This doesn't compete with local commerce.
This is not a new idea in the realm of development, Fidel Castro has been doing it successfully. With the resources of U.S. foreign aid, there would be an enormous impact...hopefully positive and ameliorative.