Our world sits in an imbalance, some inhabitants live in countries that are abundant in luxury, comfort and safety, while most of the third world and tropical countries have to struggle every day to survive. Rich countries have an average household income of 80000 dollars each year, while in some parts in Africa and Asia, people still live on under three dollars per day. There are three key factors deciding if a country will be rich or poor:
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The Institutions: Very simply, rich countries have good institutions, while poor countries have bad institutions. Corruption is a major component at play, when a country is corrupt, they can’t get enough funds from taxes to build solid institutions such as police, education, health and transport. In corrupt countries, half the nation's wealth is corrupted, taking from 10-20 billion dollars each year, trapping the country in poverty.
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Culture: A surprising correlation here is between religion and wealth, is that the less the population believes in religion, the richer they have a chance of being. In rich countries, a majority of 70% of people claim that religion is not important at all to them, while in poor countries, almost all the populations are strong believers. Belief is not good for wealth because of the way it makes you think, that the here and now does not matter and cannot be improved, and our focus should be on going to the next world instead.
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Geography: All of the poor countries are located in a tropical zone, where life is much harder than anywhere else, from sickness, soil quality, connections, bad productivity and the weather, it is very hard to amass wealth here. Transport is a huge problem as well for poor countries, they are very badly connected to one another, even landlocked in some cases.
Natural Resources: An infuriating fact, poor countries usually have the most natural resources than any other rich countries could ever dream to have, this abundance of natural resources will make a country with good institutions richer, and a country with bad institutions poorer. This is called “The Resources Trap”, this can happen because corporations from rich countries can just take whatever resources they want from the poor countries without the needs of society’s acceptance and permission.
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