Question

Why do industrialized countries upper hand on developing countries?

please answer in paragraph

Answer 1

Why do industrialized countries upper hand on developing countries?

It is true to a great extent that industrialized countries havea an upper hand on developing countries. There are several reasons to this. Industrialized countries give financial aid to developing countries for their development assisntance. This aid comes comes with certain conditions, ie these grants can be conditional grants. This kind of situation leads to increased dependency of under-developed or developing countries on grants of developed countries. It can also lead to economic or pressure from developed country on the developing country. The developing countries can fall into debt traps of develpoed countries. In recent times, such development assistance is also seen in the forms of infrastructural development, which is undertaken by developed countries in developing countries. For example China has built a bridge of over 2 kilometers in Maldives called as Friendship Bridge in the name of the developmet. India has undertaken investment in construction of Chabbar port in Iran. These kind of strategies leads to control of resources by developed countries in developing countries wherein latter may fall into debt traps of developed countries.

Multi national companies from developed countries establish their set-ups or production centres in under-developed or developing countries in order to reap the benefits of low cost of production, cheap labor and natural endowments. This again leads to shift in the control of resources. The profits made by these multi-national set-ups largely accrue to developed countries and very little share goes to host country. Thus, in many ways inductrialized developed countries have an upper hand in developing countries.