Earlier quoted context omitted.
I really think China is making a huge mistake actually. See how TSMC (Taiwan) and Samsung are free to buy ASMLs EUV machines, while China is blocked. Part of that is due to their rampant IP theft. Why sell machines to China if they're just going to copy them? China also messed up big time by enforcing their 1 child policy, and taking so long to open up and industrialize. They're far behind economically compared to wh…
> Part of that is due to their rampant IP theft Weren’t South Korea, Taiwan, and even Japan once known for their rampant IP theft?
Ghana will no longer sell cocoa to Switzerland
171–180 of 437 posts
Re: Ghana will no longer sell cocoa to Switzerland
#172I'm reading the book The Divide at the moment. It makes the argument that it takes time and the right conditions to build up an industry - infrastructure needs to be built, education and a skilled labor pool with the necessary know-how as well. To begin with, a fledgling industry in a developing country cannot compete with those of already industrialized countries - these are already so effective that they can underc…
>To begin with, a fledgling industry in a developing country cannot compete with those of already industrialized countries >these countries are also forced into a position where they get stuck at the low end of the production value chain, selling raw materials, while buying processed goods from others (often the same role they were forcibly assigned when they were colonies Basically what Friedrich List [1] wrote in 1…
Re: Ghana will no longer sell cocoa to Switzerland
#173Earlier quoted context omitted.
Same. I am concerned they are overlooking how much marketing mind-share Switzerland has globally for chocolate. Ghana could get there but it will not happen overnight, more like a generation. Distribution will also take time. Give that cocoa is their number 3 export - and I suspect most of that is in raw form - I really hope this doesn’t backfire. They need foreign currency. A wiser path might be to build up global c…
They can process the beans and no one will notice. There are a lot of cocoa processors who produce bulk chocolate for other brands who melt that down to form their own products. Companies like Barry Callebaut or Valrhona primarily supply other companies with chocolate.
Re: Ghana will no longer sell cocoa to Switzerland
#174Earlier quoted context omitted.
Free trade is usually done on a tit-for-tat basis. I think the GP is saying they should allow protectionist policies without "tatting".
This is effectively how the US built up the industries of Japan, Taiwan and South Korea. The reason these countries were allowed to do it where others are not was because the US wanted strategically placed powerful allies in the region. There probably wouldn't be a Japanese electronics/car industry, for instance, if the Soviets hadn't spooked the the US in the 40s.
Re: Ghana will no longer sell cocoa to Switzerland
#175Good for them I guess or is it? I don't understand how you cannot have prosparity from selling raw materials? If you think you're not being paid enough, increase the price along with creating your own products. It seems weird to me to not let foreign countries buy your raw materials just because you want to produce more stuff yourself. It's not like I will start buying chocolate made in ghana because they don't want…
> If you think you're not being paid enough, increase the price along with creating your own products. Who makes that decision? Cocoa slavery is a thing because the economics of raw material pricing is complicated by many factors but the demand is very simple and very high.
Re: Ghana will no longer sell cocoa to Switzerland
#176I'm reading the book The Divide at the moment. It makes the argument that it takes time and the right conditions to build up an industry - infrastructure needs to be built, education and a skilled labor pool with the necessary know-how as well. To begin with, a fledgling industry in a developing country cannot compete with those of already industrialized countries - these are already so effective that they can underc…
When I was younger tariffs were popular in developing countries but they seldom seemed to produce much prosperity - quite the contrary really. Maybe if you apply the tariffs very intelligently but most developing countries are not blessed with great non corrupt governments. The >pressured into free trade agreements (for example by making aid dependent on this) is kind of telling. A lot of the long time free trading c…
Re: Ghana will no longer sell cocoa to Switzerland
#177Earlier quoted context omitted.
>> a fledgling industry in a developing country cannot compete with those of already industrialized countries Except that often they do. With lower safety/environmental standards, lower wages, and lower expectations many "developing" countries can undercut the labor markets of developed countries, operating advanced manufacturing at far reduced costs. Many would ague that is exactly how China has risen to power. A re…
> With lower safety/environmental standards, lower wages Well, no, thanks. I'd rather not be forced to enslave my people in order to compete with western capitalism.
Re: Ghana will no longer sell cocoa to Switzerland
#178I think it’s good to see raw producers start working up market to make their own chocolate. I think a Ghanaian chocolate brand actually owned by Ghanaians and made for export would market very well. It’s interesting to me how much tasty and interesting stuff in Africa has not been marketed internationally and there’s lots of room for them to grow and develop. For example, fonio [0], is a grain native to west Africa t…
Re: Ghana will no longer sell cocoa to Switzerland
#179Earlier quoted context omitted.
>> a fledgling industry in a developing country cannot compete with those of already industrialized countries Except that often they do. With lower safety/environmental standards, lower wages, and lower expectations many "developing" countries can undercut the labor markets of developed countries, operating advanced manufacturing at far reduced costs. Many would ague that is exactly how China has risen to power. A re…
> With lower safety/environmental standards, lower wages Well, no, thanks. I'd rather not be forced to enslave my people in order to compete with western capitalism.
Re: Ghana will no longer sell cocoa to Switzerland
#180Earlier quoted context omitted.
I really think China is making a huge mistake actually. See how TSMC (Taiwan) and Samsung are free to buy ASMLs EUV machines, while China is blocked. Part of that is due to their rampant IP theft. Why sell machines to China if they're just going to copy them? China also messed up big time by enforcing their 1 child policy, and taking so long to open up and industrialize. They're far behind economically compared to wh…
Who is going to trust Chinese companies with things like 5G infrastructure and CPS, when they're all basically an extension of the CCP when it comes to security? They're going to try to compete on price and quality. If customers think that the Xiaomi phone is good and cheap, the governments will have a hard time banning it. Customers don't really care about turning over huge amounts of information to Tiktok as well a…