One of the critical stream in developmental literature, namely dependency theory, suggests that one of the main reasons for the growing gaps between developing and the developed worlds are extractive institutions set up during the colonial times. Such institutions favor export of natural resources of a developing country to the developed world, while neglecting investment in local sustainable infrastructures needed for socioeconomic and political development. The idea is that those institutions are so deeply rooted and have entered a path that it will be very difficult to change.
Recently i read this article from Washington post about Russia neglecting development of high-tech industry in favor of natural resources industries. I couldn’t help myself but noticing a conflict. Russia is probably one of the largest developing countries today and has never actually been colonized. At the same time, here it is investing in the same extractive institutions, while it could invest in industries that would probably contribute to a more sustainable development in the long run, such as the MITs.
Why is it happening? Is it the global economic system that forces a country to sell it assets in order to survive? Or is it lack of vision of the leaders combined with personal ambition/greediness motivating instant gratifications?