why are poor nations poor, is it their own fault?

Question

appreciate it if you tell me where you get your source from...thx

Answer 1

Not exactly. The poor nations are poor because they do not have growth-friendly institutions, and the institutions they do have are designed to enrich those in a position of power at the expense of the rest of the society.

The importance of institutions for economic growth was repeatedly stressed by many researchers. Personally, I like the contributions of Daron Acemoglu and Dani Rodrik.

Answer 2

Since all nations were poor by modern standards until very recent times, it is probably the natural state, and a better way of looking at it is why some nations are not poor. The first nations where the majority of the people did not live in poverty were in Europe, and the US. This was achieved only after the economy had been industrialized for decades, and productivity of most workers exceeded subsistence level by a large amount. Part of the wealth needed to industrialize was acquired by taking it form the countries that are now still poor, which makes it less surprising that economic growth was uneven. But the rich and powerful had taken the wealth of others for millennium without producing real prosperity, so it does not account for their rapid economic growth. Later other countries followed and one by one they are achieving prosperity, and over a shorter time period because they can borrow some of the technology instead of developing it all themselves. I see the reason poor nations are still poor as a matter of timing, luck and geography.

edit: One of the most important things needed for economic growth is a stable government. Some former colonies had the bad luck to be formed with incompatible groups of people, so it is difficult to form a government that is not a dictatorship

Answer 3

This is soooo fun !!! Yes to a great degree. Their main problem is that once you're poor,... it's more difficult to get out of the cycle of poverty,... cause you've got to decrease capital savings for immediate spending of your populous. People need food, clothing, shelter, and a great barbecue now and then. However the money you spend to buy those charcoal briquets, takes money away from capitalization of your economy for future stability (resources acquisition, education, hospitals, roads, etc...).
What is really interesting is this: What makes the Japan "richer" than Russia? Japan has a lower magnitude of people than Russia. It's education of their people. There are more educated Japanese than Russians. Hence, labor productivity is higher. Resource management is more efficient,... and GDP is more impressive.

Answer 4

Yes, they do not have property rights for their people. Their people cannot get financing for their businesses due to that lack of property rights. What bank will finance a third world plumber or electrician? With small business expanding, larger business can grow. See the Peruvian economist Hernando Desoto. No I am not talking of the explorer. This guy is still alive as I understand.

Hugo Chavez will never allow property rights.

Answer 5

in many cases no, in spite of the undeniable fact that it relies upon on the country by way of fact each and every usa is diverse and could be judged for my area. at times, alongside with while an empire collapses, its their own fault, yet in different cases its many times by way of colonialism, inequality and exploitation. Ex: Brasil is basically a foul usa by way of fact the wealthy administration each and every little thing and make it complicated even for undesirable childrens to bypass to college, so its no longer elementary to get forward. In Haiti's case, it became corruption by using the élite, and exploitation by using different countries which extra approximately its downfall. different worldwide places, alongside with Afghanistan, have been continually remoted from the worldwide and as a consequence did no longer advance. Afghanistan has been a similar way for the final 1500 years, very almost no longer something has replaced.

Answer 6

It's the fault of that nation's founders and leaders for having a system of government that allows power to concentrate into the hands of a small number of corrupt individuals.

In the U.S., many politicians are corrupt and narcissistic. Politicians are corrupt. That's a fact of life. But, the founders of the U.S. designed a system of government to keep power from concentrating into the hands of a small group of these corrupt people. Instead, you have corrupt people pitted against eachother in a nice system of checks and balances, none of them with enough power to screw things up too badly.

Compare that to a country that is run by a single warlord or thug. If he wants your daughter, or your land or the thing you invented to make gold out of rock, he'll just put a gun to your head and take it. There's nothing to check or balance his power. There's no bill of rights. There's no property rights. There's no court systems. No elections to give the chance to select someone else. He can make the laws up as he goes along to suit his interests.

Answer 7

Fault can be difficult to place, and largely counter productive to spend too much effort on. The question is more, what can be done to eliminate poverty.