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Money is not capital in most of the developing countries. It's just cash. Because it lacks the institutional, organizational, managerial forms to turn it into capital.
Ashraf Ghani
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Interpretation

What this quote means

In developing countries, money often does not function as capital due to a lack of necessary structures for investment and growth.

Ashraf Ghani's quote emphasizes that in many developing nations, what is commonly referred to as money does not serve the purpose of capital because the essential systems and structures, such as institutions and management, required to leverage money for economic growth are absent. This distinction highlights a critical barrier to development, as without the ability to convert money into productive capital, economic advancement is severely limited.

Themes

MoneyCapitalDevelopmentEconomicsInstitutions

In practice

Example use cases

During an economic conference discussing the challenges of growth in developing nations.

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Economics taught in most of the elite universities are practically useless in my context. My country is dominated by drug economy and a mafia. Textbook economics does not work in my context, and I have very few recommendations from anybody as to how to put together a legal economy.
Ashraf GhaniRead

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