why some countries are rich and some are poor

Why Some Countries Are Rich And Some Are Poor?


Reasons why some Nations are Rich


Wealth in the world is not equally distributed. Some nations are very rich whereas others are very poor. The Western nations such as the US, West Germany, UK are very prosperous. On the other hand, economically poor countries such as those in the African continent and India, Pakistan are lagging behind. Why is this disparity so? Many economists have tried to answer this question and have suggested solutions to it, but yet it persists.
The question that arises is that why some nations enjoy a higher level of prosperity? Why do they have a higher per capita income? Let us observe this phenomenon.




Why nations are prosperous?
• Higher industrial productivity.
• Technical know-how.
• Less population.
• Efficient labor who are hardworking and committed to their work.
• Better utilization of natural resources.
• Higher education levels.
• Active participation of citizens in improving their lot. Questions are raised in Parliament in case the Government does not deliver.
• Stable Governments in power.
• Less outside interference. Many Eastern and African nations have been subjecte
• Effective laws.
GOVERNMENT ATTITUDE TOWARDS ECONOMIC DEVELOPMENT
In the rich nations, the elected governments owe a lot to their citizens and try their best to please them. They are in power on account of them and cannot afford to neglect them. In the less developed countries, the Government once they come to power, forget the needs of the people and are busy sorting out their vested interests. Corruption is higher in these countries and the people do not enjoy all the benefits of prosperity. Only a few do.
The governments in the developed countries are questioned in case they do not meet up to the expectations of the people. Naturally, they would ensure that economic development is at a higher pace so that people can enjoy better standards of living.
The US economy, for example, is a highly developed economy. The elected government takes its work of providing the people with all the luxuries and comforts of life.
Therefore, the countries which have a higher per capita income have streamlined administration and governments that run the country well in order to promote people’s well-being.

Why some countries are poor

Most rich countries are in the North of the globe, and most poor countries are in the South, but it’s not geography that causes wealth or poverty. After all, Australia and New Zealand are part of the Southern hemisphere, and both are doing fine. You couldn’t say this of Papua New Guinea, which is the Asian country closest to Australia and New Zealand.
A superficial view is to blame racial differences. Black Africa is the poorest and most disordered part of the world, and Haiti, with an almost entirely black population, is the poorest country of the Americas. But the coincidence is accidental.
What makes some countries rich, and others prone to poverty is not related to skin color or racial factors. Many immigrants from poor nations do very well in the US and Canada (though one has to admit that both countries are likely to make immigration easy only for the best and the brightest of those who hail from Third World countries).
NATURAL RESOURCES
It is also not the presence or lack of natural resources what makes a country rich or poor in the long run. Japan is a country with very limited natural resources, and it has been the richest country in Asia for a long time. On the other hand, it is easy to predict that some Third World countries that currently are rich because of immense reserves of natural wealth while not being burdened with large populations, will slide back when the natural resources are depleted.



MANY CAUSES
But why are the people of some countries doing well, in spite of the destruction brought by lost wars, and in spite of the lack of natural resources, or an unfavorable climate?
It’s wrong to search for just one answer. There are many aspects that determine how well, or haw badly, a country will fare economically.
Some aspects relate to the attitudes of people (and the roots of such attitudes can date back many generations). Other aspects are just of a matter of the political system (think North and South Korea). And I assume that in the coming world, with an ever higher degree of globalization, providing a favorable political and social environment will become ever more relevant.
Educational systems certainly play a role. Richer countries typically have better educational systems, and the discrepancy normally reaches back more than just a generation or two.
THE COMMON GOOD
One aspect that determines the likelihood of economic success in a given society is the emphasis, or lack of emphasis, that is put, psychologically and philosophically, on the common good. This emphasis can be measured by the degree to which, emotionally or consciously, people agree that a common good justifies restrictions on the individual, including oneself. It could also be described as the degree to which the members of a society are willing to forego individual advantages if thereby a larger advantage is secured for the community.
OVER-EMPHASIZING THE COMMON GOOD
I have indicated above that societies are all the more likely to prosper the more its members are willing to emphasize the common good over individual advantage, even to the point of self-sacrifice, which, from the perspective of self-cognition, is wrong.
Unfortunately, Christianity and Islam have both heavily benefited from the willingness of its disciples to give their lives for the ideals of their religions.
However, just as a genetic trait doesn’t become philosophically true because it procreates itself, a philosophical idea doesn’t become any more sensible because it gives its followers the strength to out-compete those who have other philosophical ideas.
Once we have achieved enough self-cognition, we are aware of our individual death, upon which we cease to exist for all eternity. Thus we realize that the only sensible individual values are optimal sexual experience, and after that, a gentle death.




o Rich and Poor Nations Why?
There are a number of reasons why some nations in the world are much more wealthier and dominant in the world and a number of reasons why some are so poor and weak. Also, there are many nations that are full of natural resources that have the potential to become wealthy and fail to do so. For decades there has been much debate on actual causes and also theories. In the 18th century people believed that societies living in places that were really hot were lazy. Today, people still say climate and geography play a role. (Deeran 2009)
Others feel that if poor countries can create better institutions and improve their government, (change), then things could get better. Some feel that richer countries need to reach out to the poorer countries more by offering assistance such as technological and educational. Digging deeper, you may wonder why some nations settle for warlords running their country. It doesn’t all come down to education. If you ask me, I think it has more to do with politics. (Deeran 2009).
It might even be safe to say that religion plays a role in the reason why some nations are poorer than others. There have always been societies that solely follow their religious beliefs in regards to how they live. Some nations consider themselves living the basic simple life by choosing not to fall into the gap of consumerism. They live a very nonchalant lives and are content to do so. Those nations that choose this way of life also don’t consider themselves poor.
There are however, a number of places such as Africa and India that have and continue to suffer dearly. There are many places in Africa such as the Congo, Niger, and Ethiopia that are in constant turmoil. This however is largely due to politics and renegades as well as guerillas, not to mention the sexual violence that runs rampant. (Karmaker 2009)
Take a look at countries that are resource rich yet still poor. Take a look at Nigeria. They are viewed as the sixth largest producer of crude oil in the world and can provide up to 3 million Barrel per Day which in turn adds up to a lot of money. Nigeria is viewed as being on the wrong side of human development. They are forever ranked the lowest when it comes to educational, sanitation, capacity building, health and so on. Countries like this deal with corruption, taxation, revenue volatility and more.
All in all, in my personal opinion, some countries are rich and some are poor because of society itself or members within that society in each country. In North America, history tells how America grew and the same for Europe. A lot of it had to do with politics and society. I’m not one to agree with blaming it on the weather. I think society knows who to blame many of the times.

Top 5 richest countries of the world
1. Luxembourg – $80,800

This tiny country with a total population of less than 500 000 is a true European miracle. By tiny we mean the 8 smallest country in the world. From top to bottom it’s only about 50 miles and at its widest about 30 miles.
2. Qatar – $75,900

This Arabic speaking country has less than million people and gained independence from Great Britain only in 1971. Qatar used to be a poor Islamic country but since the discovery of oil and natural gas in the 1940s, it is completely transformed. With no income tax it is one of the least taxed countries in the world, while still offering most of its services to the population for free.
3. Norway – $55,600

Norway is one of the few highly developed countries in Europe tthat are not part of the European
Union. This oil and natural gas rich country has living costs more than 30% higher than in the
United States. In 2006 only Russia an



4. Kuwait – $55,300

In Arabic Kuwait translates to “Fortress built near water”. In addition to being on the coast of the Persian Gulf this country has well known neighbors like Saudi Arabia and Iraq. Kuwait has the worlds fifth largest proven oil reserves – about 10% of the worlds total. Being a country without taxes, about 80% of the governments revenue comes from exporting oil. Having the the second-most free economy in the Middle East, Kuwait has one of the fastest growing economies in the region.
5. United Arab Emirates – $55,200

o This oil and natural gas rich country has a highly developed economy which makes it one of the most developed in the world. Having more money than they know what to do with, they have built numerous artificial islands and just finished building the worlds highest structure – Burj Khalifa. It is 828 meters tall, being about 2 times as high as the Empire State Building in New York. It is estimated that about 1/4th of the total construction going on in the world is taking place in





o Top 5 richest countries of the world
01. Republic of the Congo (GDP – per capita: $300)
02. Republic of Liberia (GDP – per capita: $500)
03. Republic of Zimbabwe (GDP – per capita: $500)
04. The Solomon Islands (GDP – per capita: $600)
05. Republic of Somalia (GDP – per capita: $600)

o Conclusion
At the end I can say that to be a rich there are always some hurdels like illiteracy, population growth, no availability of good manpower and many others. Today the countries that are rich they had overcome them. But the poor countries are still fighting with them. Rich countries not really help them in development, but they needs help.

Name Nishant Mahajan
MBA 1st B