Why Are Some Countries Rich and Some Countries Are Poor?

This is an important question that why some countries are rich and others are poor. In this article, there are 196 countries in the world On 25 of them are very rich defined as having an average wealth Person of $100,000 a year. They are far more than those countries who are quite poor and some which we are considering very poor. There are 20 poorest countries in the world where the per capita wealth is under $1000 per year or 3 dollars a day. Many countries have a fast-growing economy but some countries are growing with a very slow speed. If countries like Zimbabwe continues as its current growth rate it will qualify as a rich country in 2722 years.

I will tell you the main points that will show you why some countries are rich and prosper and other countries are poor and stagnant.

The points of our topic are the following:

1.Institution

In the prosperity of every country, there institutes always play an important role. A country with strong institutes always chooses talented and skilful people. And when there is a value of talented people, Then institutions will hire more talented people and work hard to help there a country in prosperity. On the other hand, When there are weak institutions in there it leads them to corruption and poverty due to which most of their countries wealth goes into offshore accounts. According to my research, the wealth of the 20 countries mostly goes into offshore companies, That’s why they cannot spend their money on education, health, transportation, security and other infrastructures. A rich country has impartiality whereas poor country has nepotism. For example, Switzerland is a country with the strongest institutions in the world and the least corrupt country in the world and the per capita income of Switzerland is 68,820$ in 2018. Whereas on the other hand, There is Somalia which is a poor country. Due to weak institutions, It is perceived as one of the most corrupt countries in the world due to constant social and economic crises and the per capita income of Somalia is 315$ in 2018.

2.Culture

There’s a second thing that keeps countries poor About their culture What goes on people’s mind what they are thinking their outlook and belief Striking statistics Pops off here Concerning religion If there is one generalisation You can make about religion and wealth It’s the fewer people believe The richer they stand a chance of being 19 of the richest countries The world Have 70% or more than population Send The exception in the U.S is a surprisingly The United States which manages to combine great religiosity with huge wealth. Moreover In a second and conversely The poorest Nation of the world are extremely believing once here’s How many people think That this was written in our luck And you should look for the next word Instead of thinking Of our daily life.

3.Geography and climate

The problem begins with agriculture. In some countries, life is tougher Because of the issues related to the environment. Historically all humankind Has been dependent On agriculture fo the primary needs of having food. Many poor countries do not have a proper atmosphere And soil for agriculture. Many poor countries world located Near tropical region Suffer from temperature And tropical diseases Having a good geography Means have good transportation facilities To connect a country to other countries for trade and Commerce.

4.Natural resources

Having good natural resources and appropriate use Can make a country rich Many countries around the world Han made their fortune By selling oil They get from there Lands. But some countries have not surplus natural resources like Japan but they import natural resources from other countries and manufacture products and sell them as exports. Besides, there are also some countries like Oman which uses there natural resources and sell them as exports. On the other side, many countries have surplus resources like Nigeria but due to weak institutes, corruption, political instability etc. They cannot make their countries wealthier.

5.Inclusive society

An inclusive society aims at empowering and promoting the social, economic, and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion, economic, or another status. It is a society that leaves no one behind. We work to ensure that societies are open and inclusive to all. Rich countries have an inclusive society and their country is a democratic country. But in poor countries, There are dictators and their society have unequal rights. For Example, In 1940 North Korea and South Korea are the same.

6.Private Property Rights

Private property rights mean that if a person invents something, he has the right to benefit from it. It will make them work on new ideas. but it can only possible when there is a strong democracy in your country. For example, In 1940, North Korea and South Korea are the same. But then dictators came in North Korea and democracy came in South Korea. Today, South Korea is many times ahead of North Korea. North Korea has the technology, but they used it to make weapons while South Korea used the same technology for the benefit of the people and today, South Korea is far richer than North Korea.

Conclusion

so these were the main reason that makes a country poor and rich. In the end, I will say that there should be strong institutions, equal rights, Private Property Rights and inclusive society and strong democracy in every country so that everyone can contribute in the prosperity of there country. And there should be public awareness to vanish poverty globally worldwide.