WHY IS AMERICA RICH? Great editorial in the Omaha World-Herald on the causes of Third World poverty. Listening to bin Laden's apologists would lead you to believe the US has become rich by robbing the developing world. Actually, our wealth stems from our being, well, developed. It is the lack of the rule of law and an open economy and society that causes poverty wherever it is tried.
Economic hardship in developing countries stems in large measure from the actions of Third World governments themselves - from their mismanagement and inefficiencies in many cases, from their corruption and greed in others.In what ways do these governments demonstrate such behavior? By clandestinely siphoning off millions of dollars in foreign aid and dispersing it among cronies. By keeping major segments of the national economy under government control and imposing heavy taxes on the remainder, stifling economic growth. By failing to ensure protection of property rights. By refusing to guarantee an independent judiciary. By demanding bribes. By keeping the government contracting process a secret so that citizens won't discover the bid-rigging. By denying women a full role in the national economy and persecuting members of other religions, steps whose negative effects include choking off opportunities for economic growth.