Developingcountries face challenges regarding economic growth due to politics.Access to political matters is controlled by incumbents to rewardsupporters, institutions are centralized, and the government controlsinvestment. Russia and China are examples of nations with centralizedadministration. A kinship and clan organization can illustrate theadvancements in developing countries. Regarding its structure, agroup organization is limited to clan and family enforcement ofcontracts. In that regard, it becomes limited to geographical areaand products can be stolen or destroyed in transport. The politicalimplications of clan endowment of protection include a provocativeand hair-triggered society whereby reactions emanate promptly at theslightest of cause, peace is fragile, feuds span over from generationto the next, and a “macho” society among others. The clans alsoexperience fights, especially where wealth is involved. In fact,prosperity is detrimental to peace.
Developmenthas to go through all the phases to be effective. It is wrong tothink a country can move from Phase A to C directly without goingthrough phase B. All the stages have certain socioeconomic featuresthat develop player’s incentives. While moving from one phase toanother, the socioeconomic features must be altered to change theplayer’s incentives. Understanding the collective action problem isbeneficial to grasp the different stages. A collective action problemis a group that has a common goal and shared benefits such as cleanair. The transition from one phase to another is only possible whenthe socioeconomic change modifies the player’s incentives. Thisway, leaders can come in and solve the collective action issue forthe clans. They become the central authority in this domain.
Manytheories have been devised to explain why early developers were ableto move to Phase C yet most of the late developers have not. Chiefamong them is Bates` mercantilism theory which affirms that tradecreates wealth and is stirred by an accrual of sufficient balances,which an administration ought to encourage through protection. LD`sexportation of primary products was described as the reason why theyexperienced limited development. However, after utilizing the EP andISI promotion plans, the countries industrialized withoutexperiencing economic developments. As experienced in South Korea andTaiwan, they never industrialized but their growth was stunted. Theyhad no pressure to improve due to limited competition hence producedlow-quality goods.
Correlationentails things that happen together, whereas causation refers to twothings that happen together but one thing causes the other. In thefirst argument of the dependency theory, exporting products resultsin flat and stunted growth and development. While the developedcountries were at the core of the global system, developing nationswere at the periphery. This is because developing countries exportedcheap products while importing expensive ones. The division of laboralso favored developed countries. In the second argument,industrialization was dependent on the external factors. It neededtechnology and capital that LD nations did not possess.
Changein Sudan is harder than it seems. It typifies the clan issue wherebyeconomic growth deters peace. Even after separating South Sudan andKhartoum, the age-old rivalries still exist. The communities arecontinuously fighting for wealth. Changing Phase A is hard since thecommunities do not live in harmony. The communities also havefirearms that were distributed by the government. During the wartimes, Khartoum supplied firearms to their groups like the Murle toensure the south remained weak. It, therefore, leads to a massivenumber of deaths whenever the communities fight.
Eventhough the UN promised to assist the country to achieve peace, theyonly deployed 150 troops. The leadership also plans to use religiousleaders to bring peace in the region. However, achieving peace, whichis fundamental to moving out of Phase A, is harder in Sudan. Evenafter the peace process had produced great results, the country wasrecently thrown into disarray after fights broke out between SouthSudan and Khartoum. The primary source of contention is theresources. Both sides want to seize control of the resources.Economic development under such circumstances is hard to attain.