Why Some Country Rich but Others Poor

2449 Words May 29th, 2010 10 Pages
Why are some countries rich while others remain poor? How does globalization contribute to the wealth or poverty of nations?

To tackle these questions we have to recognize that both are very open and it is probably very hard to have a definite answer. My purpose with this essay is to analyze what I consider to be the most important aspects of these questions taking into account my research, background and experiences.

I will try first to address both questions and at the end present conclusions that interrelate the answers to both of them.

Why are some countries rich while others remain poor?

The fact is that we live in a world of inequality, and the gap between rich countries and poor countries is growing as measured by some
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Aid does need to be better directed and monitored. It also needs to focus on such basics as health and education, and to make use of local knowledge. Recent studies show aid works better when given to countries that already have reasonable governance and economic policies.

Yet there is little use in lecturing countries in which the population is dying of hunger or AIDS on the need to open their markets and become more competitive. Chronic hunger stunts brains as well as bodies, ensuring children will never reach their full potential. People who are sick and weak from lack of food do not march in the streets demanding the overthrow of undemocratic governments. Some countries need aid, and a great deal of it, before they can even begin the process of development.

While birth rates are declining in rich countries, the populations of the world's least developed nations are expected to triple over the next 50 years. Global stability is one important reason why rich countries should strive to raise the living standards of people in the most poverty-stricken countries. An even more important reason is our shared humanity.

How does globalization contribute to the wealth or poverty of nations?

Clearly, globalization is a fact that can be seen almost everywhere, and this process has a very powerful impact in every aspect of current societies.

How can Less Developed Countries (LDCs) take advantage of globalization?

There is extensive research that backs up