Government officials in many developing countries claim that their economies are too poor to afford pollution-reducing equipment, and that their first priority is to develop the economy. After their economy catches up with the developed countries, then they can confront the pollution. But this argument is a smoke screen. Every less-developed country has policies to restrict investment and economic development. India, for example, restricts foreign investment to certain industries.
Many countries require foreign investors to obtain local partners.
There are often taxes and permits required to start a new enterprise. And then there are high taxes on the profits and restrictions on moving the profits out of the country. Taxes on labor and sales add to the costs. If the top priority of a government were to maximize economic growth, these restrictions and taxes would not be in place. The government revenue would come from the source that does not hamper the market - land rent.