According to the World Bank, from the period of 1965-1999, “the average annual growth rate was 4.1 percent in low-income countries, …and 3.2 percent in high-income countries.” This would seem to imply that low-income countries, given enough time, will year by year close the gap with those that are high-income countries. Unfortunately, this isn’t true, as the World Bank, reports that “In the last 40 years of the 20th century, the gap between the average income of the richest 20 countries and that of the poorest 20 countries doubled in size.” The reason that this has occurred can be accounted by the fact that high-income countries, have a very low birthrate in comparison to low-income countries; so then, although the GNP growth rate of low-income countries is greater in aggregate, it is for the reality of the people, so being born there and living there, a reflection that therefore the continuing population increase within those low-income countries means that more and more people have to share the wealth; so despite the higher GNP growth rate, this is not enough to actually make those low-income countries do anything much except to fall ever further behind those high-income countries. Additionally, high-income countries are the very same countries that control the financial system, that therefore divvies out and makes loans to those countries needing such, of which, the interest rate and thereby the financing of those loans are an ever-present burden upon those low-income countries. Also, low-income countries are the very countries that high-income countries use mercilessly in order to outsource manufacturing and other low paying jobs that necessitate a lot of young human labor, but does not typically necessitate any high degree of education or experience, and of which those young laborers are typically not unionized, and often work in conditions that are prone to being unhealthy and unsafe.
The situation for low-income countries in a world that has gotten ever so smaller, is that the high-income countries to a very large extent must answer to the rule of law, and to the people that they govern within their borders, and because of this, along with those companies continual hunt for easy profits, businesses within those high-income countries have clearly recognized that the cheaper labor so being provided by low-income countries will not only provide them with an easier path to those good profits, but also provides them with the necessary cover within their own borders, of being considered an upstanding company for being in adherence with their domestic rule of law. In other words, low-income countries, are the preferred way for high-income countries to exploit and therefore to make the lion’s share of their profits off of the backs of the laborers within those low-income countries.
For those that wonder why the governance of any low-income country, would allow their people to be ruthlessly exploited by outsiders, recognize that most low-income countries are not democracies, but rather are autocratic in nature, and when those that are the leaders of such, are feted by those that have the easy wherewithal to do so, then the pathway to that exploitation, becomes not only viable, but almost preferred, for at a minimum those low-income countries have achieved gainful employment for their young people, along with being able to sell the story that all this is just the start of that which will develop into something all so much better, though, in reality, it won’t.