Money is not capital in most of the developing countries. It's just cash. Because it lacks the institutional, organizational, managerial forms to turn it into capital.
Interpretation
In developing countries, money often does not function as capital due to a lack of necessary structures for investment and growth.
Ashraf Ghani's quote emphasizes that in many developing nations, what is commonly referred to as money does not serve the purpose of capital because the essential systems and structures, such as institutions and management, required to leverage money for economic growth are absent. This distinction highlights a critical barrier to development, as without the ability to convert money into productive capital, economic advancement is severely limited.
In practice
During an economic conference discussing the challenges of growth in developing nations.
Economics taught in most of the elite universities are practically useless in my context. My country is dominated by drug economy and a mafia. Textbook economics does not work in my context, and I have very few recommendations from anybody as to how to put together a legal economy.
As the science of economics...exploded the fallacies of every brand of utopianism, it was outlawed and stigmatized as unscientific.
Citigroup, Bank of America, and JP Morgan Chase should not be permitted to charge consumers 25- to 30-percent interest on their credit cards, especially while these banks received over $4 trillion in loans from the Federal Reserve.
Our economy is the result of millions of decisions we all make every day about producing, earning, saving, investing, and spending.
Tariffs that save jobs in the steel industry mean higher steel prices, which in turn means fewer sales of American steel products around the world and losses of far more jobs than are saved.
At the current $5.15 an hour, the federal minimum wage has become a poverty wage. A full-time worker with one child lives below the official poverty line.
A global economy is characterized not only by the free movement of goods and services but, more important, by the free movement of ideas and of capital.
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