Why Are Some Countries Poor and Other Countries Rich?

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countries, based on the industry.

Instead, the third world countries have not experienced this phase of economic boom linked to industrialization. Some attributed the backwardness of these countries to colonization by European countries.

Some countries are permanently impoverished by wars or economic problems related to their political regime. This is the case of Afghanistan or Iraq. On the contrary, a state of peace is often favorable to prosperity.

Strong population growth may also be a factor which exacerbates economic problems. Indeed, it is difficult for a poor country to meet the needs of a large population (education, health ...).

However, a large population can be an asset to the economy such as the United States, because it is a large consumer market and provides an abundant labor.

LDCs are the poorest countries in the world. Their population is faced with many problems and knows very precarious living conditions.

Other countries, like China, are experiencing a certain development. The standard of living of the population rises and living conditions are improving (literacy, increased life expectancy, improved caloric intake ...).

Countries with large oil resources, such as Saudi Arabia, have experienced a rapid and dramatic enrichment. Most of their inhabitants live in very good conditions.

Some countries, known as NPI (or emerging), experiencing rapid development based on industry, with a low cost of labor. The standard of living is similar to that of the least developed countries of Europe. However, this success remains fragile, as illustrated by the Asian economic crisis of 1997, which plunged millions of people into poverty.

The major economic powers that make up the Triad are rich countries. Their population has a high standard of living that allows them access to consumption and living pleasantly. But these countries also have problems such as unemployment or exclusion. Part of their population is poor (13% of the poor in the United States).

Some countries, largely agricultural economy, are a little less rich, like Greece. The living conditions of the people there are still satisfactory.

Russia and the CEE countries are experiencing contrasting developments. Their common point is to be in a transition period between the communist model and the market economy. Some, such as Poland or Hungary, are progressing rapidly while Russia is facing a serious crisis impoverishing the population.

The current world thus has a very wide range from poverty to wealth. These inequalities tend to get bigger.