The question of why are some countries richer than others comes to everyone’s minds. This article answers the question about the richness of different countries.
Introduction to Industrialization
Since the world got industrialized and people started using money, some societies became poorer while some others were becoming even richer as time passed. On one hand, some societies have been living in luxury but some other societies have been struggling with poverty and poorness. Economists have been working on the reasons of this difference between different societies and they have come up with lots of different ideas and hypotheses until now. This essay will discuss how some societies became poor as other societies became richer by using ideas of different researchers and so by looking from different points of views.
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Why Are Some Nations Rich and Others Poor?
Why Are Some Countries Richer Than Others?
The first reason that the economists discuss for the countries to get richer or poorer is the institutions in the country. Institutions can briefly be defined as the laws and practices that motivate the people living in a country work hard. If the institutions are ‘good’, they motivate people in a positive way and people work hard and as a result the country starts producing and they get ahead of other countries and at the end the country becomes richer.
In the book called ‘Why Nations Fail’, the writer compares two different places in the same geographic place. These places are Nogales, Arizona and Nogales, Sonora. Arizona is much richer than Sonora. The writer argues that this is mainly because of the difference between the institutions of Arizona and Sonora. Arizona has very good laws and practices whereas Sonora has very weak and insufficient laws and practices.
People in Arizona know that if they work more, they will enrich themselves and so they are motivated to work. People in Sonora think that even they work hard they will not get any benefit from their hard work so they work as light as they can. As the people in Arizona works much, they become more productive in economic senses as a society and as the people in Sonora works lighter and lighter, the whole society gets poorer as time passes.
Relationship Between Institutions and Wealth of Countries
The first point of the article is good institutions but are all the societies with good institutions live in wealth and are they all rich? The answer is no. All the societies that have good institutions are not rich because there are some other factors that affect the wealth of the societies. The second reason for the countries to get poor can be stated as diseases and agricultural productivity. These topics are the signals of being unhealthy. These two are the reasons that most of the tropical countries are poorer that the countries with a temperate climate. In tropical areas, diseases are seen more frequently compared to tempered climate because it is the cold weather that avoids the parasite stages on human bodies.
Also mosquitoes and ticks are seen more frequently in tropical areas and they are the reasons of parasites that result in health problems. In this case, a great portion of the society that lives in tropical areas are dealing with sicknesses and they are unhealthy. As the people are not healthy, they cannot work efficiently and so they cannot produce enough. This issue results in a poorer society that cannot use their sources efficiently and that does not have enough products to live a wealthy life.
In addition to diseases, we said that the lower agricultural productivity also leads the societies to get poorer. Agricultural productivity is low in tropical areas compared to temperate areas. There are some reasons for agricultural productivity to be lower in tropical areas. First of all, again connected to the disease issue that was mentioned in the earlier parts of the article, the crop yields are decreased by the diseases that are caused by the insects living in the tropical areas.
So, people can yield less from agriculture and they will produce less. Secondly, the plants that live in temperate climate store more energy in them that we, as the human beings, can use. So, the people living in temperate climate can get more energy from the plants that they grow. As a result of all these, we can say that the soil and plant fertility is much higher in temperate areas compared to the tropical climates and people in temperate climates can produce more than the people living in tropical areas. As the tropical areas produce less, they become poor and the societies that can produce more gets richer as they sell their products to the societies that cannot produce enough to feed themselves.
Conclusion to Why are Some Countries Richer Than Others
The causes that result in poorness and richness for the countries are obvious. So, here the question comes; Do the countries do anything to make a change? The poorness and richness of countries change over time. The first reason for this change is the so-called globalization of the world. As the world gets globalized, the interactions between the countries increase and the poor countries can easily interact with rich countries. By the aid of this chance of interaction, the countries reach information easier.
For instance, the societies can learn to have better institutions from other societies. But of course, the change in institutions and the adaptation period of people to new institutions will take time but the easiness for the poor countries to reaching available information about getting the things done in a better way will help them to have better institutions. As a result, the people in the poor societies will be adapted to working more and this will increase the working capacity of the people living in poor societies and thus the production capacity of the societies.
Secondly, technology and medicine has grown hugely in today’s world. The poor tropical societies can overcome the problems about diseases and lover agricultural production rates by using the new inventions and techniques. Today, we have a lot of different vaccines that are produced and sold in all around the world and that can kill the diseases.
Also, we have different agricultural techniques that can increase the rates of agricultural production. In this way, the poor societies can produce with healthier people and they can yield more from agricultural production. As a result, the poorness and richness rankings may change overtime if the poor societies can use the ways that were presented above in an efficient way to increase their capacity of production.