SUBJECT-WHY SOME COUNTRIES RICH AND SOME POOR? Hi, what do you think might be the difference/discrepancy why there is rich and poor countries...is it one of the. reasons: 1. Country's age 2. Natural resources. 3. Intellectual differences or 4. Is it the immigrants who make the country productive The difference between the poor countries and the rich ones is not the age of the country. This can be shown by countries like India & Egypt, that are more than 2000 years old and are poor. On the other hand, Canada, Australia & New Zealand, that 150 years ago were inexpressive, today are developed countries and are rich. The difference between poor & rich countries does not reside in the available natural resources. Japan has a limited territory, 80% mountainous, inadequate for agriculture & cattle raising, but it is the second world economy. The country is like an immense floating factory, importing raw material from the whole world and exporting manufactured products. Another example is Switzerland, which does not plant cocoa but has the best chocolate of the world. In its little territory they raise animals and plant the soil during 4 months per year. Not enough, they produce dairy products of the best quality. It is a small country that transmits an image of security, order & labor, which made it the world’s strong safe. Race or skin color are also not important:immigrants labeled lazy in their countries of origin are the productive power in rich European countries. What is the difference then? The difference is the attitude of the people, framed along the years by the education & the culture. On analyzing the behavior of the people in rich & developed countries, we find that the great majority follow the following principles in their lives: 1. Ethics, as a basic principle. 2. Integrity. 3. Responsibility. 4. Respect to the laws & rules. 5. Respect to the rights of other citizens. 6. Work loving. 7. Strive for saving & investment. 8. Will of super action. 9. Punctuality. In poor countries, only a minority follow these basic principles in their daily life. We are not poor because we lack natural resources or because nature was cruel to us. We are poor because we lack attitude. We lack the will to comply with and teach these functional principles of rich & developed societies.

Rich vs Poor Countries

What makes a rich country rich and what makes a poor country poor? It may be easy to distinguish the rich and the poor country but there is probably no single indicator for a country to be called ultimately rich.

Economics use certain indexes like GDP and income per capita to measure the productivity of nations. Most experts claim that the higher the GDP of a nation, the richer the country is or the greater the income per capita, the more stable the country’s economy is. Income per capita by the way somewhat dictates how much each individual resident in the country earns annually. GDP (gross domestic product) estimates the nation’s market output of goods and services. Hence, higher GDPs may almost always relate to more productivity within the country.

In terms of GDP, one can say that three of the richest countries in the world are U.S.A., China and Japan. It is amazing to note that America’s GDP is about 50% greater than its second follower (China). Also, GDP is not restricted with the land size or area of the country. Like Japan, being relatively small, it can still rival the continent-sized nations ‘“ China and U.S.A. Conversely, the poorest countries with regard to GDP would have to be Sierra Leone, Somalia, and the Congo Republic amongst others.

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Causes and solutions for reducing the gap beween rich and poor nations

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The inequality between rich and poor nations is now wider than it has ever been before. What do you think are the main causes of this difference and what do you think can be done to reduce the gap? It is considered that the gap between developed and developing countries is bigger now than it has ever been before. In fact, there are many different reasons for this problem. In this writing, I will analyze several crucial causes as well as propose my own solutions to degrade this inequality. Personally, I believe that advantages about high technology, labor force and capital are responsible for this issue. First of all, most new technology applications take place in developed countries, and there is no doubt that those applications help improve productiveness in all fields of economy such as agriculture, service and industry. In addition, owning a high quality labor force such as scientists, experts, is an important advantage. In rich nations, education systems are much higher than others; thus, people have more chance to be educated further. They not only train their residents, but also attract people who are well qualified from other nations. Last but not least, rich countries have potential finance, which help them invest many fields all over the world. To reduce this gap, firstly, the key factor is that poor countries should concentrate on improving the quality of labor force through upgrading education systems. They should bring more opportunities for people to take further education as well as encouraging their own residents who are highly qualified and work for other countries. Moreover, states should bring good economics environment for businesses, attract foreign investors to improve potential finance. It is a difficult task for poor countries to reduce inequality without rich countries' supports. Developed nations should help developing countries for technology, capital, and training. With these supports, solutions for this issue will be more successful. CONCLUSION:- In conclusion, to reduce the inequality is a task for not only poor countries, but also for rich countries.

SUBMITTED TO-

SH GURDEEPAK SINGH

SUBMITTED BY-

HITESH BHARDWAJ

MBA-A(SEM-1)Bottom of Form