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Why Some Countries Are Poor and Others Rich


There are 196 countries in the world, 25 of which are very rich
Where the average income per person exceeds $ 100.00 per year
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But there are many poor countries, and some of them are here
Very poor
These are the world’s poorest countries: where the average person’s income is below
$ 1,000 a year, or $ 3 a day
All the countries of the world are on the way to growth, but these poor countries are growing
Very slow way. If Zimbabwe continues its current growth rate, it will run to become
“Rich country” in the year 2722 AD
What we want to know in this film is why some countries flourish and others stagnate
– so we can understand what rich countries do properly
We have a better understanding of the challenges and obstacles faced by poor countries.
Three factors determine whether a country is expected to be rich or poor.
The first factor is:
Institutions
Institutions are the most important factors. In general, rich countries
Its institutions are strong while institutions of poor countries are very weak
The relationship between poverty and corruption is straightforward. The richest countries in the world
Always be one of the least corrupt countries
The most corrupt are among the poorest countries
When a corrupt state can not collect enough taxes to get good institutions
Which they need to escape the trap of poverty
Half the wealth of the poorest 20 countries in the world goes to foreign accounts
Revenue lost in these countries is between $ 10 and $ 20 billion per year
At the same time, without an adequate tax base, poor countries can not invest in police, education,
Medicine, and transportation
Now, we will consider expanding into administrative corruption and one of its causes is “tribal thinking”
Imagine you hire someone. In rich countries, it is assumed to adopt
Simply put on merit, conducting a lot of interviewing candidates then choosing the best one regardless
No personal links
But in poor countries under the control of tribal thinking, this approach itself is corrupt:
It is your duty to ignore the best candidate of an unknown group
So you can choose one of your team: your uncle, your uncle, your brother, your cousin
People from the same tribe
As a result, poor countries do not allow themselves to be intelligent
And the talents of the rest of the population
There is something else that makes poor countries continue to be poor:
the culture
– What is going on in people’s minds, expectations and beliefs …
The shocking statistics shown here have to do with religion
If there is one generalization you can do about religion and wealth, it is that
The lower the belief, the greater their chances of obtaining wealth
19 of the richest countries in the world have 70% or more of their population say that religion
Not important to them at all
The exception here is – not surprisingly – the United States, which has been able to combine religiosity
With great riches (more about that soon after)
On the contrary, the poorest countries in the world are also the most likely.
Here is the percentage of people who believe religion and paranormal is very important in the following countries:
In the poorest countries of the world simply, everyone is a believer
Why is faith bad for making wealth?
Because religion in general is linked to the idea that the present moment and the present place can not be improved
Focusing on the spiritual side and waiting for the other world instead
This belief is very logical if you live here
In rich countries, people are very confident of their abilities
To change their future by making more effort and acquiring skills
By the way, to explain the abnormal situation of the United States, do not appear to be religion
Economic growth is hindered because it is a particular type of religion: a large number of
Protestants, especially the material type. The Lord is for the Americans
He does not want them to build new Jerusalem
To the other world, he wants to build here and now in Kansas or Houston
There is another major factor determining wealth and poverty for peoples:
Geography
Poor countries are often located in the tropics, this is not a coincidence
Life there is more stringent in many ways.
Problems start with agriculture:
Tropical plants usually contain a little carbohydrate.
Poor countries also contain bad soil, and are also tropical climate
Which may be inappropriate for photosynthesis.
Historically, the key to wealth growth for societies has been their property
Of large domesticated animals (such as horses and bulls) that have been largely liberated
Of the labor force of the need for plowing by hand.
But in tropical Africa, domesticated animals are continuously and constantly destroyed
By more dreadful pests: tsetse fly
This small fly is found exclusively in Africa because of the heat and moisture that transmit infection
For animals on a massive scale, infection makes animals feel sleepy or inactive
Has a profound impact on the ability of Africans to develop technology to increase agriculture and production
And wealth creation
Animals and plants are not alone in the tropics.
In the mid-latitudes, humans are exposed to a terrifying array of diseases
Of which:
100% of low-income countries are affected by at least five hot-zone diseases at the same time.
The magical temperature that helped to make rich rich countries is 16 degrees Celsius.
Even if it is annoyingly superficial, the temperature drops below 16 degrees (when the autumn begins to bite)
Is literally, the cornerstone of civilization
Geography also includes mobility. Poor countries, in general, are poorly connected
Bolivia is a landlocked coastal state and Paraguay is the poorest country in South America
Africa has one big river, the Nile. It has 15 landlocked countries
11 of which have an average income of $ 600 per year or less
Not coincidentally, the poorest country in Asia is Afghanistan and is also landlocked.
Then there is the issue of natural resources.
Natural resources (such as oil or precious metals) can cause real problems
Paradoxically, poor countries have many.
These natural resources are what economists call reinforcing factors: help to make
Countries with good institutions are richer and poorer institutions are poorer
Causing a resource trap
That is why the Democratic Republic of the Congo is one of the most mineral rich countries in the world.
Contains most of the quantities of coltan used in the manufacture of some pieces in each mobile phone
But the wealth of natural resources helps the elite to seize money without the need for the cooperation of society as a whole.
If the only means of wealth development is by assembling the aircraft engine parts
For example, you will need assistance from the entire community before you start this project
But if you are going to extract some metal material, you will need a few hands, pistols
The jet landing is long enough to ship the loot to the market
The wealth of coltan keeps the rebels of the Democratic Republic of Congo armed with guns and corrupts every level of society
How should one weigh the relative importance of these different factors: institutional
Cultural and geographic, in determining the wealth of the nation.
There are no strict and fast rules, but as evidence, one can suggest the following:
50% of the country’s wealth is due to institutions
20% for culture. And 10% can be customized to the latitude,
Interconnection with the rest of the world and good geological luck
If you are a policymaker, this discussion has wide practical implications. But on
Personal level, one can take two things from the subject
First, humility: You should have a better idea of ​​what you owe to your personal success
Which has nothing to do with your hard work or your good mind, but with the society in which you live
Which has been produced over the centuries and which is bearing fruit now
At the same time, empathy: the ability not to label backward societies as useless
But seeing them as countries facing known and very difficult problems. Our sympathy
Can be enhanced by thinking that the problems faced by those countries
It is related to malaria, lack of large rivers and tsetse fly
Rather than thinking that their failure is always on a personal level, which will never happen to us
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