Topic: Bypassing the Manufacturing Stage of Development
Country: United States
Delegate Name: Avneet Deol
School: Forest Hills Eastern High School
Topic page: background guide and all position papers All United States position papers GLIMUN 2017 committees
Productivity is the most important determinant of long-term growth; however, productivity has seemingly stagnated around the world. To keep up with the progressive movements of the rest of the world, countries are bolting to find contemporary methods to maintaining or growing their economies – which leads to sloppy development and infrastructure. According to Nikki Haley, countries like India leave their economies untapped. By leeching off of the service desires of developed countries like the United States, these countries are able to provide service jobs rather than producing products. However, according to The Economist, this leads to several unintended consequences. For example, productivity decreases and unequal distribution of wealth increases. Because these services have to be delivered in person, there is almost zero potential for the countries to reach economies of scale or to export. The most frightening problem is the lack of jobs. Modern services require skilled and affluent workers. Typically those people who do not have the necessary skills are left as casualties, jobless, in this race for development.
The United States encourages that companies in countries that are lagging behind in respect to the rest of their country's economy migrate to other countries that can support their interests. It is the country’s and people’s decision whether they chose to bypass the manufacturing stage of development. As of 2016, the United States has fostered and taken in six Indian companies that chose to set up business in the United States – such as QuEST Global Services NA, WNS Global Services, and Himatsingka America Inc.
Although the USA recognizes that some developing nations have the ability to jump into service economies, this activity is not condoned by the United States of America for several reasons. For example, India’s leading software exporters were founded by engineers that were educated in America and who had returned home. Many other countries lack this advantage. The United States strives to ensure that the world has a functional and fortified economy and believes that without stepping into the depths of manufacturing, the people of the country will not receive the proper pillars of development: quality education, decent work, economic growth, industry, innovation, infrastructure, reduced inequalities, peace, justice, and strong institutions. Looking forward, the United States hopes to work with other countries to guide their efforts in development and to encourage developing countries to follow the strategies for effective development.
