WHY ARE SOME COUNTRIES POOR,

WHY ARE SOME COUNTRIES RICH?

Rich and poor rely on how these countries employ available resources, such
as the USA, which is developed because of technical growth.

Less-developed nations' development is important to reducing the wealth gap.

Differences in economic growth rates across countries are typically due to
inputs (factors of production) and TFP—labor and capital productivity. Higher
productivity boosts economic development, which helps nations overcome
poverty. Incentives for invention and production may boost productivity (and
growth). The government may sometimes help a nation's economy. Increasing
international commerce may create markets for less-developed nations'
commodities and boost productivity by expanding access to finance.
 WHAT CAUSES POVERTY AND WEALTH?

Poor country factors

Geographics first. The poorest nations are generally in tropical locations with dry
weather, poor soil, insufficient greenery, illnesses, and other issues. Geography
involves transit, and impoverished, landlocked nations aren't well-connected.
Poor nations appear to have plenty of natural resources, but wealthier countries
always end up with them owing to how costly extraction is.
Culturally. The outside world, people's attitudes, beliefs, and religious systems
may be part of the reason the nation remains impoverished and won't change
quickly. Non-strict believers tend to be wealthy and more powerful. In 19 of the
wealthiest nations, more than 70% of people think religion isn't important to
them. Poor nations are also religious. This is possibly because religious
individuals concentrate on spiritual rather than worldly things and believe
there's a purpose behind everything.
 WHAT CAUSES POVERTY AND WEALTH?

Poor country factors

Institutions. Poor nations have poor, unstable institutions, which causes

stagnation. Poverty and corruption are generally linked, therefore the poorest
nations are also the most corrupt. Some impoverished nations lose $10 to $20
billion to offshore accounts. With poor institutions, they can't collect enough
taxes in that nation. Without a large tax base, they can't fund police, health,
education, or transportation. Poor nations typically don't have access to their
people's brains and potential due to corrupt systems.

Corruption. Corruption may play a big role, such as when senior officials hoard
riches instead of investing in infrastructure, supporting moms, and addressing
residents' needs.
 WHAT CAUSES POVERTY AND WEALTH?

Rich country factors

Institutions matter. Institutions generate incentives for individuals and

corporations, according to economists. When individuals gain a profit from their
labor or company, they're motivated to create and enhance their way of
production. "Game rules" influence economic motivation to create. If individuals
aren't financially compensated for their job or company, or if the advantages of
their output are lost, the motivation to create will decrease. Property rights, free
and open markets, and the rule of law give the strongest incentives and
possibilities for people to generate products and services, say economists.
Economy will grow.
 WHAT CAUSES POVERTY AND WEALTH?

Three issues require attention at the institution.

First, property rights are the capacity to possess land and cash. Ownership
allows individuals to acquire, sell, and profit from products and services. Private
property ownership includes selling rights. Without property rights, few would
launch a company, purchase a home or invest.

Free and open markets allow individuals and companies to purchase and sell
things with minimum government interference. Too much regulation may make
business transactions costly and undesirable, but it protects people

Rule of law states that the government, government officials, and all people must
obey the law, not particular government leaders. Rule of law ensures economic
stability and predictability. People and corporations are more willing to invest if
they believe the "rules of the game" will remain steady.
THANK
YOU