On Tue, Aug 25, 2009 at 7:55 PM, Onno Meyer <[email protected]> wrote:

> Roger replied to David:
> > >Ignoring, for the moment, the woeful lack of understanding of economics
> > that
> > >the Traveller setting demonstrates,
> >
> > I think one has to consider as a guiding principle the idea that
> > imported goods are hugely expensive, but that local manufacture isn't
> > done because... well, the Empire tells people not to, or something.
> > That's the core impossibility.
>
> By that reasoning, state of the art factories should be going up
> in Haiti, and in South Africa, and in Iceland. They are not. You
> can explain some of that with political instability. Haiti is a
> lot worse than Iceland, so people have fewer chances to set up
> local manufacture, and Haiti is much poorer than Iceland, which
> actually has SOME modern industry. South Africa falls in between.
>

What gets built in poor countries on earth is mostly stuff that has a high
input of labor, but low capital costs.  Assembly of electronics using
components built elsewhere, textile production, garment sewing, things like
that.  No one is building a factory to produce 20 year old computer
technology, for instance.
It's cheaper to import modern technology than to make obsolete junk.



-- 
David Scheidt
[email protected]
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