The Creation of a Colony: the Paradox of Economic Aid to Micronesia
Hezel, Francis X. (1982). "The Creation of a Colony: the Paradox of Economic Aid to Micronesia". Reflections on Micronesia: Collected Papers. Honolulu, HI: Micronesian Seminar. pp. 1–18.
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Abstract: analyzes the complex relationship between economic aid and development in Micronesia. It highlights the challenges faced by underdeveloped countries, particularly in accumulating capital necessary for industrialization and economic growth. The case study focuses on Micronesia, noting how economic growth was initially believed to be achievable through crop diversification, but eventually required substantial external capital investments.
By 1960, it became apparent that internal economic growth was stagnant without external support. A significant portion of the aid was directed towards infrastructure, health, and education improvements [4]. However, the influx of imported goods exceeded the islands’ productivity capacity, leading to a dependency on government employment and highlighting the mismatch between ‘want development’ and industrialization progress.
Father Hezel argues that a structured economic development program is essential to address these issues and avoid uneven wealth distribution typical in developing regions. Efforts were made to industrialize Micronesia, with plans demanding $150 million invested into infrastructure and industry. Yet, the plans faced hurdles from previous social development programs, alongside labor challenges given the traditional societal structures. Consequently, fully utilizing the indigenous labor force while adjusting cultural attitudes towards economic modernization remains a critical obstacle.
Extra details:
MAG: 2245868130 OpenAlex: W2245868130 CorpusID: 131741115
