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I wonder if this is useful, for a country with as little economic prosperity as Afghanistan. (A) A country like that cannot easily tax income or even consumptio
by netcan 11y ago
I wonder if this is useful, for a country with as little economic prosperity as Afghanistan. (A) A country like that cannot easily tax income or even consumption to raise taxes the way modern economies can. (B) Ricardo's model of relative advantage might break down at the edges when a country is competitive n so few fronts. (C) Maybe it's helpful to have openings like this that are easy, but might lead to more sophisticated industry later on.
I'm not convinced the same rules apply to countries with a 50+X difference in productivity.
- mseebach 11y agoA: A country as unproperous as Afghanistan should probably try to focus more on raising wealth, not taxes. Making it harder for an already poor population to buy computers isn't it. B: A poor country's advantage is really low cost. Punitive tariffs erase that advantage. Then again, so does high security costs. C: That's a big might. In the meantime it makes it much harder for the much more numerous industries (with much higher value add) that depend on computers to take off.