Without technology, capital only trades
Where a country stays technologically backward, private capital can make money without building real productive capacity. Profits flow, but the economy does not become more capable.
Business
Capitalism without development
An economy can have private firms, markets and wealthy owners and still fail to develop, producing an imitation capitalism unlike that of Japan or the West. In this ersatz version, businesses grow on top of the economy as an inefficient upper layer instead of driving it forward.
Shutting out entrepreneurs costs development
Discriminating against an ethnic group that is especially active in business, such as people of Chinese descent, keeps capitalism from doing its developmental work. Pushing aside those best placed to build firms leaves an economy with weaker, less productive capitalists.