Notes

Rich countries are getting richer while poor countries are getting poorer.
What is the cause of this?
What could be done to solve this problem?

In the capitalist world, capitalist hierarchy is not about individuals, it also about among countries. Actually, economic gap has been increasing since industrial age started. It has caused because of increased demands of modern humankind and globalization. On the other hand, the developing countries has been focusing on this issue in order to bridge the economic gap.

Firstly, it is clear that different economic models have been tried by different societies in different times. Thus, it is clear to say, societies have cannot find the right economic model yet. Nowadays, thanks to the globalization, most states are suffering problems of the capitalism. In capitalism, producing value added product is more valuable and expensive rather than labor. In undeveloped countries, citizens needs purchase added value products such as technological, nevertheless, they only supply this products from developed countries. Thus, this trade increase economic gap and inhibits technological research and investing. For example, Vestel which is a Turkish technology brand, cannot produce any chip, motor or software, it only combine them and put their logo. According to Vestel, this process is more economical rather than invest research and development. It causes an impasse in long term. Unlimited needs of capitalist world can be only meet by development, innovation and search.

On the other hand, concerning about reason of problem can be give a key to overcome the problem. It is clear that providing agriculture products in remuneration for technology is a modern exploitation. Thus, governments should encourage to investment of R&D and force manufacturers to produce technology. Hence, this local added value products have to be qualified like external peers. Therefore, citizens could be tended to buy local manufacturers since local products would be more cheap because of low inventoriable costs, taxes and shipping costs.

For a example of great success story, in 2008 world has been suffering because of international debt crise. In order to overcome economy, FED had started to release billions of dollars with low interests for underdeveloped countries. So investors were tended manufacturing in underdeveloped contries. South Korea government has been starting to evaluate this change and assist tech firm Samsung. To result, today Samsung has more cash than many countries. South Korea will not be affected 2016 crise (which caused by FED decision about increasing tax rates of dollar debts). On the other hand, Turkey have not invested any innovation. Turkey has focused on real estate and tertiary sector which is not any profits in international area. Assist of the wrong politics, Turkey has been suffering economic crises and dead end.

All thinks considered, today there is a huge gap between developed and underdeveloped countries which caused by capitalist market needs. It is clear that producing added value products, technology and innovation is the way of contributing superior economy. Underdeveloped countries should be concerned on their way of meeting needs and they have to be started to reduce foreign dependency such as economic and technologic in order to survive. On the other hand, it just delays the economic and social crises.