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.
Interpretation
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.
In practice
During an economic conference discussing the challenges of growth in developing nations.
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.
Capitalism is not an 'ism.' It is closer to being the opposite of an 'ism,' because it is simply the freedom of ordinary people to make whatever economic transactions they can mutually agree to.
After adjusting for inflation, the average income of the top 5% of households grew by 38% from 1989 to 2013. Β By comparison, the average real income of the other 95% of households grew less than 10%.
Economic medicine that was previously meted out by the cupful has recently been dispensed by the barrel. These once unthinkable dosages will almost certainly bring on unwelcome after-effects. Their precise nature is anyone's guess, though one likely consequence is an onslaught of inflation.
Hemp is of first necessity to the wealth & protection of the country.
Every economy exists, no matter what the level of democracy, has elements of crony capitalism. It's - given human nature and given the democratic structures, which we all, I assume, adhere to, that is an inevitable consequence.
Once you realize that trickle-down economics does not work, you will see the excessive tax cuts for the rick as what they are -- a simple upward redistribution of income, rather than a way to make all of us richer, as we were told.
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