what causes a country to be poor?

Question

third world countries?

Answer 1

Usually it's the result of a country's leadership - form of government, economic system. Some ways just don't work as well as others. Generally nations with economic systems that aren't based on a free market are much less efficient and less productive. Also, some countries have a bit of a head start when it comes to the amount and type of natural resources that they have.

Answer 2

Poor distribution of the wealth. A few families own most of the nations wealth in essentially all third world countries, and close off economic opportunities to all others, eliminating all incentive to work hard and try to get ahead. Without a middle class earning enough money for market consumption, there is not enough demand to drive a market economy. The rich tend to control the government, so even if there are elections, the wealthy are able to manipulate the system to maintain control, and prevent the establishment of any kind of economic justice.

Without a middle class, market economies do not function.

Answer 3

Lack of natural resources.

Poor managenment

Elites not allowing opportunities to developing middle class

Investing in huge public works projects that benefit multi-national corporations instead of local (within the country) economic development.

Lack of personal capital

importing more than you export. or exporting raw materials and importing finished goods -trad mercantile theory.

living on budget deficits- running government on credit.

tax and budget policies that favor the elites while crippling the poor and middle class

Answer 4

Cultural values. That is why it makes no sense to adopt the cultures of third world people immigrating from third world countries.

Answer 5

Lack of trade routes
Lack of viable objects to trade or sell
Lack of industrial industry or large agrarian infrastructure
Unwise political leadership
War*

* NOTE( War can be a plus or negative. Depends whether your industry expands or contracts)

Answer 6

Mainly bad government. Secondly, poor education system.

Answer 7

It's due to a lack of infrastructure. Read some civic engineering books if you want to learn more.

Answer 8

It can be a corrupt government, a war of aggression which was being fought against it, sanctions imposed against it, or some other reason.

Answer 9

Corrupt leaders,few natural resources,socialist(communist lite) type of government.Environmental disasters like extreme drought or earthquake. Many things.

Answer 10

economic drepression and dept. the economy is bad and the government can't support it's people and must tax them. also maybe funding for a war and importing and not exporting enough goods.