Message-ID: <Pine.OSF.3.95.961001073543.22716D-100000@beta.tricity.wsu.edu> Date: Tue, 1 Oct 1996 07:56:37 -0700 From: Tom Hodges <mailto:thodges@TRICITY.WSU.EDU> Subject: Re: "Appropriate technology" still useful? To: Multiple recipients of list DEVEL-L <mailto:DEVEL-L@AMERICAN.EDU>
dear Reinaldo and all devel-lers: I don't have direct experience living in a developing country but I read critically all I can about situations in many countries. It seems that government restrictions (licenses, taxes, banned activities) on small businesses have has a lot (not all for sure) to do with poverty in many urban areas. Important local businessmen profit from keeping small local businesses from competing with them while the larger society loses the benefit of the small business peoples' creative efforts. If a small business person cannot get a license to do some normal business activity (create and sell leather crafts or irrigation systems, etc.) without paying excessive bribes to get numerous permits after long delays and then pay ruinous tax rates (that large businesses can avoid with appropriate bribes?) then he/she will not grow into a medium sized business employing many people and making a contribution to the community well-being. Instead this person will remain a hidden blackmarket business, small, few employees, no taxes or licenses, and few bribes, but contributing relatively little to the community and nothing to the infrastructure (thru taxes that build schools and sewers, etc.).Who benefits from this kind of situation? Obviously important local businessmen and the local politicians they pay off. Do multi- nationals benefit from this? Probably they could sell more products to a thriving local economy with a large middle class than to a society mired in poverty where only a tiny percentage of the population has cash to buy imported products. Surely Korea or Taiwan are better customers for GE, AT&T, IBM, Ford, etc. than the Philippines.
Anyway thats my perspective, Tom Hodges
On Tue, 1 Oct 1996, Reinaldo Vicini wrote:
> personalized license plate -I don't have it-. I am aware of my country's
> poverty and I feel sorry that you can't recognize that much of the poverty
> and corruption does not have to do with most of private enterprise, but
> with government corruption and oligopolistic practices of some
> entrepreneurs who used high tariffs policies to charge high prices for low
> quality for more than thirty years.
[snip] >
> The countries that leave all those prejudisms behind and pay attention to
> their own destiny heading his future with a global perspective will be
> meeting its time with history. Unfortunely *Globality* has been the pattern
> for success in the Western World and now, more than ever. Not
> claustrophobic idealism.
>
> Best Regards
>
>
> Reinaldo Vicini