6.7.6.3   Pressing Developing Countries to Improve Governance

(This is an archived page, from the Patterns of Power Edition 3 book.  Current versions are at book contents).

Affluent countries can help to improve the governance in developing countries by exerting financial pressure:

·     They could refuse to buy natural resources from countries where the proceeds would be used to prop up an oppressive regime.

·     They could refuse to lend money to dictators (bearing in mind that the population would end up repaying the loan).

·     They could refuse to allow their banks to accept embezzled funds.

·     They could prevent multinational companies from transferring profits to tax havens to avoid paying tax in developing countries.

·     They could remove the tariff barriers against imports of food (3.5.8.3).  This would require national politicians in wealthy countries to persuade their populations of the benefits: cheaper food for themselves and being better than aid for helping people in poorer countries.

These are all examples of economic regulations which could be introduced to help developing countries.  Coordinated political support would be needed in the affluent countries to implement these policies and make them successful.