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To Develop Third World Economies and Increase in US
Exports, All American Funding, Grants, Aid, and Loans
Be Preferably Given to City Governments to Recipient
Counties for Grass Root Level Development
A Position Paper to International Development Agencies, IMF & World Bank
Submitted to
MBAA 53rd International Conference
March 22-24, 2017
Chicago, Illinois
Submitted by
Zafar A. Bokhari DBA
Associate Professor of Marketing & International Business
Department of Management, Marketing, & Information System
College of Business
Chicago State University
9501 S. King Drive, BHS-435
Chicago, Illinois 60628
Phone: 630-202-5462 Fax: 630-616-5012
E-mail: [email protected] & [email protected]
To Develop Third World Economies and Increase in US Exports, All American Funding,
Grants, Aid, and Loans Be Preferably Given to City Governments to Recipient Counties
for Grass Root Level Development
By: Zafar A. Bokhari – Chicago State University
Abstract
The hallmark of economic policy in most of the Third World has always been centralized,
controlled by few ruling elite. Even in democratic rules decisions within democratic parties are
centralized and few elite control the process. These elite of third world are like mafias who
control country’s revenues, resources, and all foreign aid and loans. In the past it has been the
rejection of orthodox free-market economics. The countries that failed most spectacularly till
1990s are Indian continent, nearly all of sub-Saharan Africa, much of Latin America, the Soviet
Union and its satellites, were the ones that rejected the orthodoxy most fervently. Their
governments claimed that for one reason or another, free-market economics would not work for
them. In many countries even private sector was dominated by few ruling elite as they control
manufacturing and distribution process. .
The countries that failed, often guided by "experts" in the industrialized world, are the ones that
gave only a small role, if any, to private enterprise and to prices that are unregulated by
government. Government planners concentrated on broad aggregates such as investment,
consumption, and savings. Their priority was investment—the more, the better, regardless of its
quality. Another bad decision making was investing in “Consumption Projects” than in
developmental projects. Now the time has come that all these countries need to be more
decentralized in their economic development approach. They all talk of grass root level
economic development but most of the policies are controlled by central governments, leaving
city governments with no resources. Like many US agencies, many “experts” of IMF and World
Bank are not aware of this phenomena that how a centralized approach keep the status quo and
help few elite of third world to control international funding. In many countries ruling elite have
become filthy rich while common person’s quality of life has deteriorated. Giving funding and
intellectual guidance at city level is the solution. In modern history centralized China developed
through city governments and Turkey also has developed by adopting this approach.