Simply, conflict always appears in all societies, and it built-in the politic. The problems of the developing countries are not from the conflict of politic, but from the form of politic. The form of politic might cause to the coup d'état. During the 19th century and 20th century, the civil wars were occurred in many parts of the world. For example: in 19th century, there was a civil war in the United States, also Russia had one as well in the 20th century. These civil wars were extremely bad; however, it ended up within short period and was not reprise. For the low income countries, the chance of war turns to be a trap was definitely higher. According to the University of Michigan, the definition of civil war is an internal conflict that involves at least 1,000 combat-related deaths, with each side incurring at least 5 percent of these deaths (Collier, 2007)
Civil wars mostly breakout in the low income countries. Others might ask that "Is the war make the country poor? Or instead of "Does the poverty make the country going to war? The facts, both relationships were emerged at the same time. During the time that the Civil war melts off the income, the low income indeed increase the risk of Civil war. The most concrete evidence of this task is because many countries experienced the enforce peace for decade during the colonialism, it provided the precise experience for the effect of the income on Civil war. The kinship between the low income and Civil war seems precise, if you pay attention on the newspaper, and also you will know that almost the conflicts usually occur in poor countries. "As an approximation, a typical low-income country faces a risk of Civil war of about the 14 percent in any five years period. Each percentage point added to the growth rate knocks off a percentage point from this risk. So if a country grows at 3 percent, the risk is cut from 14 percent to 11 percent, if its economy declines at 3 percent, the risk increases to 16 percent." stated Collier. For example: Since Somalia is the low income and economic decline country, you can look at the past that Somalia experienced many Civil war, especially a bloody Civil war and also the government was collapsed ( Collier, 2007)
Not only the Civil wars threaten the government, but also Government is threatened by Coups as well. People may think that coups were extinct since 20th century, but coups still occurred in many poor countries. For example: On December 2006 there was the latest successful coup which just occurred only two weeks, in Fuji, however, this coup did not kill many people. Coups are not harmful like Civil wars. On the other hand, Coups were not a good solution in order to change or challenge the government because it not only causes the political instability, but also injures the economic development as well (Collier, 2007)
The causes of Coups are not different form the causes of Civil wars. The factors that contribute the emergence of Civil war and Coups are the low-income and low growth. Coups and Civil wars make the low-income countries undeveloped as well as keep these countries depend upon the primary commodities, so that countries easily meet the Coups and Civil wars (Collier, 2007)
Natural Resource
If a country has no natural resource exports and no receives aid, the only way for its people import or buy the foreign products is to export their products. Exporters generate foreign exchange, and importers buy the foreign exchange off them to purchase the imports. It makes exports valuable to the society, so some local products that cannot trade internationally such as local service and some foods become more expensive and produce it to use in the local (Dutch Disease). The theory of Dutch disease explained that if a country has a lot of natural resources, it is in all likelihood going to be uncompetitive in other exports. Developed countries want poor countries consider on the multi-products economy, the poor countries should not depend upon only one product because sooner or later it will be collapsed in one day in the future. For example: In the 1970s, Nigeria imports Oil than other stuffs such as peanuts and cocoa, so these stuffs became untraded, and then the production fell dramatically. However, in the half of 1980s there was a huge oil boom in Nigeria, its citizens and government enjoyed that benefit so much. Moreover, the government of Nigeria borrowed a lot of money and spent it on wasteful projects saturated with corruption. Unfortunately, in 1986 the world price of oil crashed, the easy profit from the oil was ended up suddenly. Nigerian living standards were fallen down, its citizen were really unhappy with the government (Collier, 2007)
Since poor countries just gained independence during 20th century, a large number of poor countries were still weak on the economy after then. Therefore they have to have an eco-relation with their colonial master. Also the technology was still poor after gained independence, so they have nothing to do with their prosperous natural resources.
Dutch disease and volatility commodity prices are the factors that mostly make the opportunity of the increase of exports to close off. It makes the economic development of one region be consistency (Collier, 2007)
Landlocked with Bad Neighbor
Landlocked country is the country locked by land, no link to the seas or oceans. Landlocked countries mostly depend on their neighbor not only transportation through seas or oceans, but also directly as markets because they do not have any way to get at the world markets. Take a look at the statistically, if a country's neighbor grew at an additional a percent, the country grew at an additional 0.4 percent. However Africa is different, the benefit from its neighbor growth is only 0.2 percent, and it is virtually nothing. Africa's landlocked countries do not direct / depend upon their neighbor. Both their infrastructure and their policies are oriented to be completely toward the world market (Collier, 2007). There were 9 strategies that the landlocked countries have to do in order to survive, however, I pick up only four important strategies to mention here.
Strategy 1: Increase Neighbor Growth Spillover
What to do in order to increase growth spillover from neighbor? Cross-border trade depends upon the transport infrastructure on both side of the border; in addition, landlocked countries have the passionate emotion to reduce the trade barrier (collier, 2007)
Strategy 2: Improve the Economic policies of neighbor
Do something in order to improve the economic policies of neighbor such as do not letting the neighbor make mistake on the politic, on the economic policies because if the neighbor's economic grow rapidly, the landlocked countries will gain benefits from its neighbor as well (Collier, 2007)
Strategy 3: Do not be Air-locked or E-locked
Thin out the cost of air service in purpose to increase the number of investment as well as imports. E-locked have a strong potential to lead the economic grow faster and great telecommunication (Collier, 2007)
Strategy 4: Try to attract Aid
Even the government tries to be best on these strategies, the countries is still poor and remain poor. Therefore the country should turn back to attract the donors.
G8 policy
You may see that most of these strategies favor to the control of a country's government, it almost depend upon the neighbor or international actors which known as donors. Yet, a good government can improve their country even the country is a landlocked countries as well as bad neighbor.
Bad Government in Small Country
Economic performance was influence by the Governance and Economic Policies. Whether the development of the country increases or not is based on Governance and Economic Policies. Perfect Governance and Economic Policies contribute to the growth process, and the growth rate is around 10 percent or you can say that no matter what the governments do, it is no more grow than this. In contrast, if there are a bad Governance and Economic policies, the economy might collapse hastily. For example: Robert Mugabe, president of Zimbabwe, have to respond for the collapse of economic of Zimbabwe since 1998, the inflation was jumped over 1,000 percent a year. As this decline, it makes the economy of Zimbabwe to be consistency.
In the 2005 transparency international rating of corruption manifested that Bangladesh and Chad appeared on the bottom place of the list, therefore there is no doubt that two of these countries endured from the bad government. Corruption is the curse of economic decline, and it makes the economy of the country standstill. Most of the corruptions come from the poor countries, and it makes the poor countries remain poor or poorer. For example: In 2004 there was a survey on the money that released by the Ministry of Finance, and this money was provided for rural health clinic. The purpose of doing the survey just wanted to find out how much of the money reached the clinic, and how they spent it. Unbelievably, there was only 1 percent reached the clinic and 99 percent more failed to reach the clinic, it was because of the corruption. Bad governance is a heavily problem for Chad because the only option for Chad's government is to provide service, and corruption has already closed off this option.
