The United Kingdom Elections 2010

[al Roumi]

How did these nations get all the foreign debt? The same way we did - our leaders.

Indeed, however Western leaders are (believe it or not) held on a tighter leash. They can not (usually) go to the nepotistic & embezzeling lengths afforded to leaders of many developing countries.

Why are leaders of developing countries able to be so shamelessly self serving? They are not held to account by either the countries' inadequate governance systems, or they have corrupted these systems through patronage.

Why should the west write-off swathes of third world debt? Because that debt is a burden on the country and its people, not the old rulers who took the loans and profited from them. If there is one thing the west can do to help developing countries "help themselves", it is to reduce or remove the shackle of debt.

Export of raw materials? Rather like Australia, Brazil, Saudi Arabia... China and germany export manufactured goods. Is this wrong too?

Indeed, export of raw materials is great, providing its all set up fairly and resources are not being irresponsably extracted with no benefit to the state or its population. Resource extraction (Lumber, diamonds, oil) provide juicy incomes for cash starved countries (almost money for nothing) which can also have some awful effects, from driving wars (the wars in DRC have been famously funded by diamonds and lumber) to reducing the incentives for economic and labour reform that would foster economic growth through industry/services.

As to manufacturing, not every country can become a manufacturing powerhouse. Opportunities exist but a country must be able to exploit them at the right moment. E.g. The UK itself became an industrial giant through its adaptation of technology (driven by relatively high UK labour costs) which (after years of refinement) made production cheaper than manual labour and increased productivity. China is the current world factory because of its rock bottom labour costs, good infrastructure and permissible (sort of anyway) political environment. Not many countries can rival China for these conditions.

These countries should be treated as equals. Show they're sorting things out and they will be able to get funding in the bond market. Get a decent credit rating and debt will decrease in cost. Embezzel / kill your own citizens and remain in the dark ages.

They aren't equals though. Most developing countries (by definition, you might say) do not have the same capacity for governance and administration as western countries. Even if they have the structures, there are a multitude of factors impeding their full use for the country's development e.g. lack of civil society pressure for openness and reform.