This English version may have been machine-generated from the Chinese original and may not convey the original meaning accurately.
There is a famous concept in economics known as the “resource curse.”
It refers to the fact that some countries with extremely abundant resources have not prospered because they possess rich mineral, oil, and land resources. Instead, they have remained trapped in poverty and backwardness for extended periods. What should have been a gift from heaven has, in some countries, turned into shackles holding back development.
Sri Lanka, for example, was once hailed as the “pearl of the Indian Ocean.” Blessed with favorable natural conditions and abundant resources, it nevertheless experienced sluggish economic development for many years and eventually fell into a severe fiscal crisis.
Venezuela is another example. It possesses some of the world’s largest oil reserves and was once fabulously wealthy. But due to institutional imbalances, an overly narrow economic structure, and other factors, it ultimately suffered hyperinflation and a social crisis, forcing large numbers of people to leave their homes.
In stark contrast are countries such as Japan, Switzerland, Singapore, and South Korea. These countries are not rich in natural resources—in fact, they can even be described as severely lacking in them—yet through sound institutions, the rule of law, education systems, and technological innovation, they successfully joined the ranks of developed nations.
Facts have shown that a country’s true wealth lies not underground, but among its people; not in mineral resources, but in human resources; not in the size of its territory, but in its institutional environment.
China is vast, densely populated, and rich in natural resources. Yet to this day, we are still known as the world’s largest developing country. Although our total economic output ranks among the highest in the world, there remains a significant gap between us and many developed countries in terms of per capita income, social security, healthcare, and retirement services.
So where exactly does the reason lie?
Some believe that one important reason is that China’s development path since the modern era took a wrong turn.
In the middle of the twentieth century, China had a large number of entrepreneurs, landlords, intellectuals, engineers and technicians, as well as various other professionals. Many of them had received a modern education and possessed business management experience and an international outlook. They could have become an important force driving the country’s modernization.
However, during a subsequent series of political movements, large numbers of social elites came under attack, the vitality of the private economy was weakened, and many talented people left the country. At the same time, some forces that could originally have been used to create wealth and promote innovation were severely depleted.
History cannot be rewritten, but it can be reflected upon.