The Disaster that is the Third World | Jayant Bhandari

[Music] it is my opportunity to talk about the so called emerging markets now in the financial industry and in the Western world there's a huge amount of euphoria related with the emerging markets and I want to dissect the underpinnings of the emerging markets in my talk I want to talk about what happened to the third-world countries when European powers left their colonies what happened to them until that a end of 1980s and it seems that something changed in the third world countries in the 1980s which apparently according to the conventional wisdom continues today and these countries are now third world countries are now known as emerging markets I'm going to mostly refer to them as the third world countries because that's what they were and that's what they will continue to be and I want to show that a lot of euphoria related with these third world countries is unfounded it's not real it's not based on facts British Empire was the largest empire in human history at the end of the Second World War Britain had to start pulling out of their colonies now there were many reasons why Britain pulled out of the colonies or why they started pulling out of their colonies one of the main reasons is undiscussed one of the main reasons is that Britain brought prosperity in their colonies Britain brought massive improvement in transportation in the colonies Britain brought in technology in these countries where technology the concept of technology did not exist and it still does not exist in many cases Britain brought in telecommunication which enabled people to talk with each other and collective eyes against Britain but I'm not going to just stick to the economic aspects of what Britain dead in the colonies it was the intellectual aspect of what Britain contributed to the colonies which is the key in my view Britain brought him some completely new concepts completely alien concepts in these countries in the colonies the concept of freedom of his speech completely unknown concepts of liberty and freedom Britain brought in enlightenment to their colonies now you saw the effect of what Britain was doing after British left their colonies economic stagnation is started rapidly in the colonies after Britain left and actually it was the same with other European powers once they left Africa Papua New Guinea etc these countries started to decay and be great rather rapidly institutions is started fraying in these countries an age of illiberal ism and tyranny is started in the X colonies people don't want to talk about it now when people talk about it most of the blame goes to two things firstly the blame goes to communist and socialism communist and socialist is spread like wildfire in the X colonies now known as third world countries and almost synchronously tyrants and dictators rose up in Latin America in Africa in South Asia all of these third-world countries now I don't disagree with the proximal issues but people forgot to dissect why communists was able to sink its roots in these third-world countries and why tyranny rose synchronously in the third world and I'm going to respond to this later but it seems again according to the conventional wisdom that something changed in the 1980s and assumption is that in the 1980s communists had lost its reputation mostly because USSR disintegrated now conventional wisdom believes that as a consequence of the disintegration of USSR democracy is spread around the world economic liberalization started happening around the world Western education spread according to the conventional wisdom again in my view this is a completely wrong assessment of the situation the claimed economic liberalisation actually did not happen in these in third world countries what happened was that these governments took one step forward under the pressure of IMF and the World Bank and they took two steps backwards under the guidance of the IMF and the World Bank the net result is that these countries in the third world have more oppression more repression of businesses today and governments have grown exponentially in the third world as a result of massive economic growth took place in the last three decades so another question would be that if I disagree with all that happened since the 1980s about disagree with the conventional wisdom about end of communist and end of USSR what was the reason why these third world countries is started changing in my view there are two reasons why these third world countries has started to change one is that there was a real cultural and economic Renaissance that is started in China what happened in China not only changed China but it changed the economic structure of the world but remember for the rest of the third world the benefit they got was because of an extraneous event but a bigger reason why the third world improved so much economically and only chronically in these three decades was because of telecommunication and Internet now those people most of you might remember in the 1980s massive cabling of the U of the planet was done several telecommunication companies went bankrupt because they over-invested in cabling of the player planet telecommunication prices fell quite rapidly and a new technology became common it started to become common in the world the internet the internet changed the economic prospects of the third world internet allowed massive transfer of Western technology to the third world and it enabled the base wage arbitrage particularly in non-tradable sectors who start happening the wage differential was so massive between the third world and the West that there were so many crumbs to be picked up by the third world now this is the reality the third world hasn't really changed in any substantial way the underpinnings of the third world have actually got worse and a low hanging fruit have now been plucked Internet allowed for this to happen but because these people just became it snobby and arrogant they did not change the underpinnings behind why they were so retched poor and a difficult shape so let me talk about what is wrong with the third world why it does not change again as I said economic development did happen in the last three decades but it had nothing to do with real changes happening in the whole third world if almost everything can be attributed to extraneous events when your your life improves before of extraneous events it might be unsustainable in my view it is let's not talk about what is wrong with the third world European colonizers pretend brought in the rule of law in these countries they had zero concept of the rule of law they brought in institutions in these countries what was happening before Britain was no saint but what was happening before colonizers came to these countries these countries in Africa Latin America in South Asia were in a never-ending war tribal war with each other and those tribal wars never end because of something that they lack and I'll come to that in a bit now Britain set up institutional structures for accumulation of intellectual and financial capital happen in the third world but over the to three hundred years that ruled these countries they achieved only marginal improvement in these countries now those those of us who have traveled in these countries in Africa in in India and Pakistan Bangladesh Sri Lanka it will be very difficult for a Western person to understand what is happening in those countries and I want to tell you something to think about when you go to when you drive around in Africa or in Bangladesh or in India what you will see is that girls in uniform school uniform carrying pots of water on their heads now this is the situation 2,000 years back there was water piping available in the Roman Empire but moreover the concept of wheel was has been in existence for at least five thousand five hundred years if not longer so the question is why do they carry water on their head why did they not set up pipe piping piping is very cheap these days if it was cheap in Roman times why could they not do it today but even bigger question is why don't they at least you some basic wheel to transfer the pots of water now most people cannot really grasp what I am saying the reality of the third world is that billions of people and I'm not exaggerating billions of people in Latin America Africa and South Asia still carry heavy stuff on their heads it is not technology or capital that is stopping them from changing their ways it's something else now it's a lot of us people in the Western world made fun of China for copying Western technology now the reality is think through this thing if copying were that easy why did I free cannot copy it why did the Middle East not copy it why did Venezuela and Brazil not copy it why did Central America not copy it why did why did they just depend it on their natural resources why not they did more than that let me go back a bit about what the psyche was during the Second World War and I'm going to quote a few quotes from Sir Winston Churchill his reason I'm going to call him Sir and there's a reason I'm quoting him so total was the wartime president of the United Kingdom second world war times talking about the future of Palestine he said quote I do not admit that a great wrong has been done to the Red Indians of America or the black people of Australia I do not admit that that a wrong has been done to these people by the fact that a stronger race a higher great race a more worldly wise race has come in and taken their place and caught talking about Islam so Churchill said code how dreadful are the curses which Muhammad ESMA lays on his fortress besides the fanatical frenzy which is as dangerous in a man as hydrophobia a dog there is this fearful fatalistic apathy the effects are apparent in many countries improvident habits slovenly systems of Agriculture sluggish methods of Commerce and insecurity of property exist uncaught talking about India the country that I grew up in he famously said I hate Indians he goes on to say there are beastly people with a beastly religion and code now this another court attributed to searcher shell he's and I'm as what I was unable to verify it to an authentic source so I cannot be sure if he said this or not but this is the court he says quote if independence is granted to India power will go to the hands of Rascals rogues freebooters all Indian leaders will be of low caliber and men of a straw they will have sweet tongues and silly hearts they will fight amongst themselves and India will be lost in political squabbles unquote so total has been proven correct after 70 years 70 8 years after what he said and I come I quoted him because I completely agree with him Europeans of those days clearly knew that there was something very significantly difference different between the west and the colonies what came to be known as third world and after the advent of political correctness what came to be known as the emerging markets Europeans of those days British so Churchill knew that without the glue and the pillars provided by European management's British management's these countries the third world the colonies would disintegrate and enter a phase of never-ending Wars what happened you learn wisdom over millennia and you lose it over a single generation in my view that has happened in the West Europeans knew what was the key difference and they have mostly forgotten that difference but the problem is that while it looks good too not accept those differences the reality is that it will come and haunt the West and it will do no good to the third world not accepting the facts the reality is behind these countries so what is it what is the this real issue between with the third world I often say ni that the more intelligent you are the more handicapped you have in terms of understanding stupidity the more compassionate you are the more difficult it is to understand the lack of gratitude in other people what Sweden is doing today is not necessarily because of naivety and stupidity they just simply don't understand that this ungrateful migrants just don't feel gratitude it took a very long time for the concept of reason to sink to get infused into the Western society European institutions are basically a product of the concept of reason now again in front of intelligent people as I said intelligent people have a major handicap understanding this concept you have to keep going to these third-world countries immerse yourself in it before you understand this thing but if you don't have the concept of reason communicate with them and you will realize they operate through beliefs and faith they don't operate the operating system is not reason in their minds when that is the case you cannot differentiate between right and wrong you cannot differentiate between right and wrong it's as simple as that you only differentiate what not to do because your hands get chopped if you don't have the concept of reason you cannot differentiate between virtues and cents again some people think it's in our biology and our instincts as as dr. novice and alluded to in certain aspects of philosophy it is not in our necessarily in our instincts now here is a problem if you cannot differentiate between right and wrong how can you have model style judiciary in the third world how can you have the rule of law if you can not differentiate between virtues and sense the end result ladies and gentlemen is that when Britain left the colonies their institutions it started to rapidly degrade and decay and start failing that is why tyrants emerged in those countries let me talk about some of the mutation what happened to these institutions once Europeans left now I have no problems with European institutions Britain should have stayed back in those countries of course for a fee and three countries as far as I know I still use that they don't declare it openly look closer to that Dubai Singapore and Hong Kong they hugely depend on Europeans to provide them intellectual capital and organizational skills but let's talk about what happened to the institutions in the third world education now education the primary objective of education is to transmit the concept of reasoning and critical thinking that should be at least objective now in the third world the concept of reason is conspicuous by its absence let me repeat it in the third world the concept of reason is conspicuous by its absence what happened to education it just became another belief system in the minds of these people unassimilated to any principles now what happens when you learn something or learn something by rote what happens to your mind it becomes more burdened not less the situation actually became worse not better education around everywhere in the third world is used for propaganda purposes nationalism nationalist was a concept that emerged in Europe because there were certain values Europeans believe then you impose that on irrational people and irrational people cannot understand the concept of values what happens they mainly underst see nationalists as a geographical concept it is packed with sense of superiority and arrogance nationalism today is spreading the ugly kind of nationalism is spreading like wildfire in the third world today the country that I grew up in Hindu fanatic says is growing rapidly Hindu nationalism is growing rapidly today if I don't stand up before they start off every movie for the national anthem which must be run I would be beaten up and taken to prison and charged for treason nationalism has mutated into an ugly concept in the third world now when people talk about the Europe the so called emerging markets which I call the third third world they feel very euphoric that's the future of humanity for them but look closer and what do you see let me mention a few countries here Myanmar Myanmar got a whiff of democracy and a very celebrated Nobel Peace Prize woman unsung Sikhi got some power two things immediately happened oppression of journalists actually increased significantly in Myanmar Western media won't report it because son Sikhi is so celebrated by the left and by the media in the West one of the biggest genocide started in Myanmar against the Muslim minorities of Myanmar nope Middle East most of the Middle East is in flames Toki and Malaysia and talking about the mutation that these countries are still going through except that for the last three decades you might not have perceived them continuing to mutate since the end of colonization look at Turkey and Malaysia they looked like among the most decent countries in the third world the ugly face of fanaticism is rising it raising its head rapidly in those two countries South Africa was mostly seen as close to being a first world country look at the mess they are in today they are probably entering a phase of civil war from what I hear I used to go to South Africa I don't anymore when Israel is imploding and I don't know the future of Brazil Pakistan Bangladesh Nepal East Timor but in my lifetime the world has been very euphoric about these countries and they are complete messes Indonesia took a breather for a few years fanaticism is rising again aided and helped by mutated concept of nationalism and education education is used to is being used to spread propaganda India again the country that I grew up in Western press is not even reporting this thing I have written about 20-25 articles on what's long articles on what's been happening in India in the last eight months a police is India is very rapidly becoming a police state British left a concept of free speech in that country among the middle class when I was growing up it was okay to speak your mind or at least the a lip service now they beat you up and lent you for speaking your mind in fact the government would even arrest you for saying anything against the Prime Minister that did not happen 20-30 years back in the country but the Western media is ignoring this because this is the world's biggest democracy and they like to think that democracy must do well that's another concept Western concept that has completely mutated with no underlying values it's mob system nothing else in the third world now Papua New Guinea is a recent example when US Australia was ruling this country it was improving I recently spent a bit of time there and it is very very rapidly reverting back to its medieval extremely violent past if a woman gets raped I don't even think it is really only a crime in that country anymore now we all recognize these things but we fail to accept we still like to sorry we still like to believe a lot of people at the emerging markets are the future of the world what SWANA is an another country often quoted as the as having grown economically the fastest for the longest what people won't tell you is that it has the population not much more than that of Vancouver and it has a huge massive landmass with some of the best natural resource sector in the world for on per capita basis that is what made them rich and my boat's wanyan friends tell me the wealth hasn't changed their tribalism superstitions and Botswana is way past its peak already Anna man remember the leadership a lot of leadership in many of these countries is still the remnants of what the British left India for the last three years is a has broken completely from the British hold there is now no connection with what British left in terms of people in leadership positions so let me conclude my talk here Britain brought in sanity in the third world when Britain left irrationalities tribalism and superstitions of the third world is started asserting themselves and from the time that the British left these countries have continued to deteriorate including in the last three decades despite that it might not seem that way they only grew economically in the last three decades and they have accepted a lot of life time life style problems related with getting money and wealth without having developed reason and critical thinking these institutions cannot be maintained by the local people they will continue to be great decay and disintegrate my view is that the third world is entering the last phase of plucking the leftover fruit from the free gift of Western technology economically they will come they will continue to is stagnating in the world might not believe that for now but that is what I see with my eyes when economically they start to is stagnant I rinse will emerge will become visible again in these countries including and probably the fastest in the country that I grew up in India now this will be happening exactly when the last remnants of the British Empire also enter the history books because they retired from leadership position what I see is an extremely ugly future of the third world and this is very interesting because most of the people in the West think that it is the West which is decaying which it is but the real suffering will happen in the third world in my view not very far in the future ladies and gentlemen thank you very much for time [Applause]

Channel: Jayant Bhandari

Views: 11,682

Rating: 4.4736843 out of 5

Keywords: Jayant Bhandari, Rick Rule, Doug Casey, Capitalism & Morality Seminar, Walter Block, Immigration, emigrants, Third world, emerging market

Id: iLteE_LD7ew

Length: 31min 23sec (1883 seconds)

Published: Mon Mar 19 2018