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In this topic: people who underestimate the importance of infrastructure and low crime and low corruption.
1st answer: developing countries don't have enough infrastructure to benefit from wealth. Not enough trains to move raw goods around, not enough roads or not enough electricity to do anything even if those good arrived.
2nd level: when governments get the money for such projects, they steal it from the people through corruption. See Turkey and all the invested dollars on earthquake-proofing buildings, it was all stolen in ways people didn't understand or realize until the earthquake happened.
3rd level: even if the government didn't steal the money, criminals can. Even in the USA we deal with transformer thieves (transformers are bundles of copper that convert long distance high voltage power into short distance power for houses). These copper bundles can sell for $$$$ in the black market.
So even if #1 and #2 miraculously happen, a criminal will steal the infrastructure and they gotta start all over again.
Everyone knows how to make cities more advanced and better. Build highways, trains, mass transit. Invest into freight (trains or boats). Invest into education so that people can run these machines.
And many 3rd world countries advance forward. But it's harder to do than it looks.
It’s even worse: they only have the infrastructure to allow us to profit from their wealth. Colonial powers made sure the railroad between the mines and the ports are top notch, so their mineral riches can be carted off efficiently to the metropole.
China and other advanced nations prove that an export based economy can work though.
I will say that export driven economies are very difficult though. See Taiwan and their export of chips. It only works because Taiwan is basically modern Vulkans / Wizards who have chip technology that no one else in the world has.
A system of top level universities to build that kind of knowledge and infrastructure is difficult and outside the reach of most countries.
Export based <> extraction based
The machines are Dutch and the designs are made by the customer. The Taiwanese advantage is their government subsidised chip manufacturing. They aren’t wizards.
Global Foundries up in Buffalo, New York had the same exact Dutch equipment as them and couldn't get past 12nm.
Taiwan / TSMC is hitting 3nm today (a feat that even Intel and Samsung cannot accomplish yet), and is well on its way to 2nm designs.
They're fucking wizards who are 5+ years ahead of USA. Thank god they're allies of us. But they're severely kicking our ass in terms of yields, production, and even technology, using the same machines to ink smaller-and-smaller transistors to a degree impossible to us in the USA today.
The problem is by the time we figure out 3nm, TSMC will be at 2nm or better. They just consistently lead and are superior over us for the last 20 years or so.
nanometer is a marketing term now and doesn’t reflect actual sizes. Samsung were first with “3nm”.
America was doing “3nm” in 2018. You don’t seem to have any understanding of this issue.
From Wikipedia:
Also from Wikipedia:
And iPhones chose TSMC's 3nm, because TSMC is more than just 3nm, but also at a scale and price-point that Apple desires.
I'm talking about industry and manufacturing. Test labs doing one or two wafers back in 2018 doesn't matter compared to the millions-of-chips that roll off of Taiwan's production facilities.
No one in the USA can mass produce designs like this. Korea / Samsung is 2nd best, but still is slower at mass production than Taiwan.
Which brings us right back to my point. They aren’t wizards, they are simply benefiting from the enormous government investment into the extremely expensive chip manufacturing industry.
Their manufacturing efficiency is top tier, their government built facilities are top tier. However they weren’t first, they aren’t the only ones who can produce them and now that the US is interested in chip manufacturing again the new facilities will match TSMC in a few years.
Erm... You know how we're doing that right?
https://www.trendforce.com/news/2023/12/21/news-tsmcs-arizona-plant-rumored-for-q1-2024-trial-production-securing-orders-from-three-u-s-clients/
We just invited the Taiwanese to stay in Arizona. I don't expect Taiwan to give us their latest-and-greatest technologies. But this is still good for us in the great scheme of things.
But even USA's #1 chipmaker, Intel, has fallen behind Taiwan. USA's 3rd party manufacturer, GlobalFoundries, is 12nm and has no plan to go further. TSMC is still the only one who can help us with the CHIPS program, albeit by building a factory in Arizona but that's still Taiwanese controlled technology.
What Taiwanese technology? Name some.
Intel is building fabs, TSMC is moving away from Taiwan due to the geopolitical risks.
The actual research that you’re giving Taiwan credit for is US research. There’s a reason the US was able to tell the Dutch government “You can’t allow this hardware to go to China.”
The basic research for the Extreme Ultraviolet lithography was done at US DOE labs as a hedge against Japan dominating the world semiconductor supply. The US allowed a few companies in as part of the EUV-LLC private-public partnership, and ASML ended up buying out the other players who had the licenses from the US. The EU certainly had a hand in the research after the test bed was built proving it could work. https://www.sandia.gov/media/ultra.htm
You can see this in painful clarity watching the Argentinian railroads. Created and operated by the UK originally, it has a clear shape of a funnel from all over the country towards the main port city, Buenos Aires.
That's a general pattern though - sea transport is the most efficient, thus railroads will tend to integrate around important ports. It applies even in the UK.
But the USA and western EU countries are rich, but, for example, China, India, Russia, Vietnam, Nigeria, Mexico and others are not very rich, how is this possible?
Even New Zealand is rich, but other island countries are not.
Is it all culture or not?
Culture and wealth. But wealth creates better culture, and better culture makes more wealth.
Only Russia seems to be the only country doing things wrong in your list btw. I expect China, India, Vietnam, Nigeria, and Mexico to all be richer in 10 years than they are today.
It takes a lot of hard work, smarts, and money to catch up but countries like those are scrappy and are doing good work to catchup. China is a bit risky, I think they're funding it with too much debt though in weird ways, but their hearts and minds are at least in the right place with regards to expansion of their country, economy, and education.
China's main problem is corruption. But everyone's got corruption issues,.
Culture plays a big part. But people don't like admitting it.
Was reading a book about the Congo and there was a Malaysian UN guy. He said this country fucked. He said colonialism had an affect on this country sure but it also had an affect on his. He said, in a nicer way, at some point they need to take responsibility for their country and short their shit out. They are responsible of the mess it's in. Seen another doc where a Chinese guy was building a road but he couldn't even buy gravel and in the Chinese words the local workers were lazy and they kept working a day, stealing stuff and not coming back. He seen a railroad the Belgians built that was in complete disrepair he basically said "look you inherited a functioning country with low crime, infrastructure and an encomy. You guys butched it all".
Just look at Rhodesia, South Africa and God knows how many other countries.