That's quite true but it's not just the West. For example mainland China secured more investment from Japan, Hong Kong and places like Taiwan, Singapore, and South Korea than China received from the West.
People think only the West has money. At the moment East Asia has more money than the combined West. We hold over 30 trillion US dollars in the form of debt and equity of Western... well everything. Just from being a creditor and owner (even at least partial owner) of many Western companies and assets.
Today, Japan + China + South Korea + Taiwan + Singapore is already bigger than USA or the entire EU. Once we account for PPP, China's intentionally deflated currency, and the fact that China and Japan own so much of the USA not even counting equity, the difference is even more massive.
Now the question really is, how does a country attract investment and also become very productive. China was both attractive to investment and extremely productive and industrial. The cost is hard work and this work by even hardworking western standards was epic. Backbreaking hardwork and saving for at least three whole generations close to 2 billion people cycling through this three generations to turn this around. They also saved and invested that money very well. Diversified and gambled well with good payoffs and returns. Invested in the future and useful things. Not blowing it on lamborghinis like some new rich. However China's newer generations are accustomed to comfort BUT they are smart and also work hard! This at least has been passed on to this generation and while they spend more, nationalism has trended to China's favor as well.
I do not think South Asians work quite as hard overall! many smarter and more hardworking south asians than east asians but as a whole there really is quite a cultural and maybe even environmental and genetic difference that contribute to work ethic patterns and general social behavior. Japan is excellent example. China is only beginning this journey and while maybe only 20% to 30% of citizens are at Japan's level of productivity and hard working, it's already a significant difference to many other neighbors. I have worked in China, Singapore, and Australia. The difference is huge. Singapore easily top of these three followed closely by China. This is just medium level stuff. With high tier industries, China's work ethic would beat Singapore and it is to the point of being too straining. But this is also why there is progress.
Taiwan now receives much more mainland investment than US investment. Japan also invested in China more than USA. Germany roughly the same as USA during those 1980s to 2000s era. Taiwan too. Can Pakistan make itself attractive to investment and make use of everything? Make itself productive, properly use investment, learn, adapt, change, progress and work very hard for next 100 years? China had bigger population advantage but this is as much a problem as it is a strength. There is absolutely no such thing as population dividend when it is mostly unruly, unintelligent, uneducated, disorganized, and complains a lot. China started with 80% of its population like that. Authoritarianism worked well for China because luckily we had good leaders that wielded that power more well than they did poorly.
I think there are so many things for other now poor and chaotic countries to begin the journey. It's like the conditions a planet needs to evolve intelligent life. It require billions of factors working together and net effect in that direction over time. It cannot even be allowed to take that long as disrupting events from negative forces come on a cycle too.
After China, not a single country has even gone from poverty to middle income. African countries have improved a lot but not at middle income level. Thailand, Malaysia and some others were already middle income before China even got to middle income status. China's the only one to have done it after Taiwan, South Korea and Singapore and those guys didn't have many sanctions and bans to deal with since the 1960s like China has had to. They also had a much smaller population which is easier to convert.
India will never get to above middle income unless it is the will of all the major powers. It isn't simply a work hard and it will come formula. And even that, India and lots of now poor nations do not have that could compare to what China and South Korea had to go through.
But Pakistan has one advantage, China's favor. It isn't attracting Chinese investment though only geopolitically derived investments and agreements. To start the journey, Pakistan would at least need lots of foreign investment from major economic powers. Since EU and USA will not be involved with that, China may but so far it has not shown interest. After all, China is nowhere near as rich as the western nations on a per capita basis and has a bit more work left to do to get to that level.
Throughout history, wealth has concentrated in only some parts of the world and never spread throughout it. However India and Pakistan were a part of those wealthy long in the past before the British and Europeans stole almost everything. So clearly South Asia had the stuff it takes in the past but it's much harder for pauper to climb to billionaire than other direction right? The building of momentum to regain that is much more difficult to potentially impossible. India really should demand Britain not only apologize but pay back even half of the damage they did and what they stole from India. Without the British involved in Asia and colonialism, half our current troubles would not even exist. Of course they would never do such a thing now they have the riches and power. And India... goodness what has become of you in the last ten years. Imperialism changed and destroyed India not just physically but ruined its psyche too not just for indians but even neighbors. Anyway that's another story.
I think no country will follow that path unless they first begin with internal structural and cultural change. South Korea, Singapore, and Taiwan were fiercely authoritarian and had reform after reform to start this journey. East Asians are a bit more practical and realistic, less delusional about things and probably this helped in finding the problems and knowing what the true problems are before starting the reforms and structural changes to begin the journey. Otherwise you will never compete and be appealing for money. Money does make the world go around even if it is not everything, but without money everything is also unavailable.
