Why some countries are rich and some are poor

INTRODUCTION

Rich countries: Rich countries are also known as developed countries. On some criteria. Countries are have high level of development. One such criterion is income per capita; countries with high gross domestic product (GDP) per capita would thus be described as developed countries. Another economic criterion is industrialization; countries in which the tertiary and quaternary sectors of industry dominate would thus be described as developed. More recently another measure, the Human Development Index (HDI), which combines an economic measure, national income, with other measures, indices for life expectancy and education has become prominent. This criterion would define developed countries as those with a very high (HDI) rating. However, many anomalies exist when determining "developed" status by whichever measure is used.

Acc. to Kofi Annan, former Secretary General of the United Nations, defined a developed country as follows: "A developed country is one that allows all its citizens to enjoy a free and healthy life in a safe environment.

Poor countries: These are also known as the third world countries. These are different from developing countries or the lower case of developing countries.Third World, the technologically less advanced, or developing, nations of Asia, Africa, and Latin America, generally characterized as poor, having economies distorted by their dependence on the export of primary products to the developed countries in return for finished products. These nations also tend to have high rates of illiteracy, disease, and population growth and unstable governments. These countries are not able to fulfill the basic needs of their peoples like food, clean water, medical facilities, shelter, and clothes etc.

DISCUSSION

Why some countries are rich?

Countries are become rich over a long run. They have power to affect the other countries in any manner. Countries are become rich due to certain things. Which they posses more than any other country. Such things like:

· Advance technology

· Open economy/ Free market

· High literacy rate

· Population control

· Proper utilization of resources

· Economy of scale- Mass production

· Balanced trades/ more exports- that leads to increase the foreign currency in country

Examples: USA, UK, Spain, France, Australia, Canada, Germany, Singapore, Japan etc.

Why some countries are poor: Poor countries are become poor due to some natural factors, human factors and development factors. Most common factor are:

· Past or present to exploitation

· Non-industrialization

· Illiteracy

· Unstable government

· High population growth

· Internal national inequality

· Non availability of resources

· Closed economy

· Uncivilized culture

· Corporations of the richer stronger countries are enforcing unfair trading terms on them that allow rich countries to unfairly profit from poor countries

Examples: Tanzania, Uganda, Nigeria, Ethiopia, Guinea, Madagascar, Afghanistan, Benin, Sudan, Yemen. Malawi, Myanmar, Rwanda. Cameroon, Gambia etc.

Reasons for widening the gap between poor and rich countries

The major component of the world's income inequality is comprised by two groups of

· The first group has 13% of the world's population and receives 45% of the world's PPP income. This group includes the United States, Japan, Germany, the United Kingdom, France and Australia, and comprises 500 million people with an annual income level over 11,500$.

· The second group has 42% of the world's population and receives only 9% of the world income. This group includes India, Indonesia and rural China, and comprises 2,100 million people with an income level under 1,000$

Some comparisons between rich and poor countries which show that income gap between rich and poor countries is how much widen?

• The richest 1 percent of people in the world receive as much as the bottom 57 percent, or in other words, less than 50 million richest people receive as much as 2.7 billion poor.
• The three richest people possess more financial assets than the poorest 10% of the world's population, combined
• The three richest people in the world have assets that exceed the combined gross domestic product of the 47 countries with the least GDP

CONCLUSION

• At the end I can say that to be a rich there are always some hurdles 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. So difference between rich and poor countries is continuously increases.

  Bibliography:

  www.google.com

  www.wikipedia.com

  http://www.google.co.in/url?sa=t&source=web&cd=1&ved=0CCwQFjAA&url=http%3A%2F%2Fwww.infoplease.com%2Fipa%2FA0908763.

  www.wikipedia.org%2Fwiki%2FDeveloping_country