Power of Productivity

This McKinsey article looks at poverty in the world, and comes to the startling conclusion that things are not changing -- in fact at current rate of growth, it would take centuries for poor countries to catch up to where the G7 nations are -- that is, if they ever catch up. The McKinsey article contends that trying to solve third world poverty has been focusing on the wrong problems to solve -- the economic problem was viewed at an aggregated level, which loses the intelligence contained in the details. The article contends that productivity is the primary driver of economic growth, and it is something that developing countries lack -- and aren't even set up to foster, as competition is stymied government policies that strive to protect established production. Those that receive government favours tend to be large corporations, as any disruption in their productivity levels would lead to political and economic instability that a country may take sometime to recover from -- if ever. It's the industries with the greatest productivity levels within a country that by far impacts the overall well being of a country -- it's the industries creates sensitivities in the economy, but also the ones where a increase in productivity would benefit the country's economy. Catch-22. The article suggests that more competition, including opening up a country for foreign investment and competition is healthy. I don't buy that. I don't believe in the benevolence of businesses -- especially foreign businesses entering a third world country. They're driven foremost by profits -- or they wouldn't be there. Foreign businesses in third world countries is just another form of colonialism -- rape and pillage under an altruistic guise. So where does that leave poor countries? Nowhere. No one's out to help them. They're screwed. Unless of course the World Bank and the International Monetary Fund can shake off the shackles of G7 business malevolence and return to being benefactors of goodwill. Yeah, and what are the chances of that happening?