I would say we must also be careful when reading GDP figures and it's growth rate. It can be deceiving as well.
We might look at a country with a high GDP growth rate and say ah, the business environment of that country must be improving alot, the future looks bright for them. Generally this is true, but not always the case. The situation in VietNam I mentioned in the previous post with @
Viet is a case in point.
The increase in GDP might not be the result of an improving business environment (for both local and foreign companies), but it could be that foreign companies are attracted to move there due to the local govt giving in to the unprecedented demands of these foreign companies (as mentioned in the link I gave to @
Viet).
Even when foreign firms are moving there in droves, the business environment could still be bad and undesirable. This news suggest it so:
Vietnam’s per capita income should have crossed $7,000: USAID economist | Business | Thanh Nien Daily
Another interesting thing mentioned in this article is that the GNI is well below what is to be expected.
It's true that developing countries in their developing stages require foreign investment and so a negative GNI:GDP ratio is to be expected. However even with a divergence between GDP and GNI, the GDP growth rate should also raise the GNI at a reasonable rate. This GNI growth is essential as they are a necessary ingredient for the social mobility of the local population, and hence, the development and future of the country. However, the USAID and World bank economists quoted in that article said VietNam's GNI is well below what is to be expected.
So yea, I too would like to compare the GNI:GDP graph of each countries throughout their developing stages. It would also need to include other indicators too, like the demograph and age of the population, the average workers wages, public debt, etc. to see the real development and potential of a country.
I took this link here from the Viet economy thread:
[OPINION] Vietnam: a poor country with rich country problems | Opinion | Thanh Nien Daily
It mentions VietNam's alarming public debt rate which may restrict what kind of economic reform it can achieve. It also said that VN's "golden age" has passed and that their aging population is slowing reaching the rate of more developed countries, instead of being more aligned with a comparable developing country.
So yea, I was being a bit trollish in mocking and calling their leaders "useless". But I don't think I have no justification in saying that whoever was in charge of their economy, did a really bad job.
Their business environment haven't really improved as needed for their country to be developed. Foreign companies are flocking due to lucrative and unprecedented "special offers" rather than great business environment. Though this might be easy to rectify through a policy change and good planning. But other things are not so easy to change like the ageing population, which will definitely affects the development of their country. Furthermore, the GNI haven't grown to a figure that was to be expected. So once the wages of workers inevitably increases, the generous tax holidays period drawing to a close, the foreign owned companies will naturally move out to a cheaper location, then what's VN's ageing population be left with? they didn't even had a chance to tax them properly!