How can underdeveloped countries get richer if they have nothing to export and no money to import?

Probably the most relevant example of an underdeveloped country getting rich without having natural resources and with a small land mass is the city-state of Singapore.

“Fifty years ago, this city-state was an undeveloped country with a GDP per capita of less than US $320.” Today, it is one of the world's fastest growing economies. Its GDP per capita is now an incredible US $60,000, making it the sixth highest in the world based on Central Intelligence Agency figures. For a country that lacks territory and natural resources, Singapore's economic ascension is nothing short of a remarkable achievement. By taking advantage of globalization, free market capitalism, education, and stern pragmatic policies, the country has been able to overcome its geographic disadvantages and become a leader in many areas of global commerce.

During colonial times, Singapore's economy was focused on entrepôt trade. However, this economic activity did not offered any prospect for job expansion in the post-colonial period while the withdrawal of the British only aggravated the existing unemployment. But to embark on promoting labor-intensive industries was an ambitious task for Singapore had no industrial tradition.

The majority of its working population had been trained for trade and services. Moreover, without a neighborhood and neighbors to trade with it, Singapore was forced to look for opportunities well beyond its borders in order to command its industrial development foresight.

Influenced by Israel's ability to spring over its Arab neighbors and trade with Europe and America, Lee and his visionary followers knew they had to persuade multinational corporations to manufacture in Singapore. In order to accomplish this and attract investors, Singapore had to create an environment that was safe, corruption- free, with low taxes and unrestrained by labor unions.

The result is that today, Singapore is an ultra-industrialized city-state and that entrepôt trade continues to play a dominant role in its economy. The Port of Singapore reports that is now the world's busiest transshipment port, surpassing Hong Kong and Rotterdam. In terms of total cargo tonnage handled, it has become the world's second busiest, behind only the Port of Shanghai. There are currently over 3,000 multinational corporations operating in the country, accounting for more than two-thirds of its manufacturing output and direct export sales. However, citizens of Singapore had to give up some personal freedoms as they live under an autocratic regime without much to say on how the country is run.

Another example of spectacular economic development with very limited resources is Japan. Its success has been based on an efficient blend of two economic tendencies:

• Japan has a well-conceived government activism of national planning and implementation, that guides its largely free economy with a deck of sophisticated monetary and fiscal policies.
• Second is the distinctively Japanese way of coupling private ownership assets with conservative, public-spirited management style. In a unique government-industry collaboration sometimes referred to overseas as "Japan, Inc.," the Ministry of International Trade (MITI) selects and encourages industries targeted as important to Japan's future economic growth. Some of these industries are chemicals, iron and steel, shipbuilding, automobiles and electronics. In the decade of the 1980’s it became computers, computer electronics and automation systems.

The objectives of maintaining rapid GNP growth, controlling inflation, and developing Japan's social and industrial infrastructure have been the concern of the Economic Planning Agency, which produced the successful Ikeda plan (to double the national income between in 10 years).

By this measure, the Japanese people don’t have to resort to war in order to obtain the natural resources that the country lacks, because its economic success brings enough money to purchase what it needs in the global market.

The United Nations recognizes that despite the fact that poverty is declining worldwide and inequality is leveling off not all is well in our new globalized economy. Proponents of market-led globalization must recognize that the global economy is not addressing the problems of poverty and inequality and is heavily influenced with asymmetries that add up to unequal opportunities. Social activists must rethink their demands for dismantling the limited institutions for managing globalization and must join forces to push a new global agenda, targeting newly minted global politics to accompany the global economy.