RICH AND POOR COUNTRIES

Rich and Poor Countries

Rich and Poor Countries

Introduction

The topic of my assignment is to, clearly discuss the reasons why some countries are rich and others are poor. The countries which termed rich are called developed countries. For example, the United States of America. Similarly, the countries, which are categorized, as poor are termed as underdeveloped countries or least-developed countries such as Nigeria, Sierra Leone Somalia are least-developed countries. The purpose of my paper is to identify the reasons, as aforementioned, why some countries are rich countries and others are poor. In this paper, I try to focus on some countries that are rich and some countries that are poor.

Background

In my point of view, rich countries termed as developed countries because, at the time of the industrial revolution, these countries benefited from labor and raw materials that were extremely cheap. The cheap labor and materials helped develop the industrial base of these countries and provided the knowledge and the economy. After the Second World War, industrialized countries began to set up an aid to "underdeveloped" countries (a word used by Harry Truman in 1949). Subsequently, some developed countries were able to regulate social disparities created by pursuing policies of redistribution of wealth through the tax and public services: education, health, social protection.

Through gaining a majority of their population in wealth (income growth and lower living expenses such as health), these countries have expanded their market to a large part of the population: people who supported them are vital for the economic growth to purchase goods and services, and help in super flux, and comfort. What has kept the economic machine? Some developed countries have expanded and modernized later (late nineteenth - early twentieth century) with an effort of the population which is voluntary and sacrificial (as in Japan of the Meiji era) or forced (the case of USSR after the Russian Revolution).

A new wave of development after World War II led to a few other countries, including the "Asian Tigers "(South Korea, Hong Kong, Singapore, and Taiwan) to access the rank of developed countries towards the end of the last century. Similarly, when I talk about the poor countries that categorized as least-developed countries or underdeveloped countries were born after the industrial revolution, especially after the second revolution. It was established that not all the nations were able to acquire a secondary sector to continue to rely on agriculture, fisheries and livestock alone.

Discussion

Taking into account the livelihood and well-being depends upon the satisfaction of the needs of the people and they can be addressed only to the extent that it has the backing of a cash income. Thus, it is clear that the first criterion for determining whether a country is developed should be output generated per person. The standard of production per person is not enough to know if a country is developed, because the levels of prices for similar goods and services are not the same in all ...