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Strategies for reducing unemployment in underdeveloped countries

Control of their birth rates is the first step. With fewer children to care for, and feed, individuals will have more resources and time to invest, either in businesses or in luxury goods (such as medical care or shoes). This, taken as the collective effort of the country, will slowly shift capital (both human and momentary) from low productive subsistence type activities (such as hand crafting shoes) into high productive activities (such as mechanized shoe manufacturing). This will create more specialized jobs (maintenance technicians and managers) with associated higher pay. This income must go somewhere, so it will be reinvested in the local economy, allowing more opportunity for growth. This trend will also encourage better education (higher tech jobs require more skills and the demand for those jobs will force the government to invest in better educational programs) and better health care (employers want workers who show up regularly and will encourage improved health services). Once this cycle starts it will continue at ever faster rates, drawing more and more low paid farm workers into more and more skilled manufacturing or support jobs. The original instance of this was called The Industrial Revolution.

For a better description than I gave (maybe :) see:

http://mars.wnec.edu/~grempel/courses/wc2/lecture s/industrialrev.html

Note that I have skipped the parts about developing technology, since that has already been done. The only thing missing in many poor countries is the ability to jump from old patterns to new ones.

Good luck and good jobs.

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Strategies for reducing unemployment in underdeveloped countries

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    by Farmer Bob

    Control of their birth rates is the first step. With fewer children to care for, and feed, individuals will have mor... read more

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