Why are some countries rich and some poor ?

Why are some countries rich and some poor ?

1. 3 main factors

   • institutions
     • Rich coutnries tend to have good constitutions
     • Poor countries tend to have very bad constitutions
     • Richest countries tend to be less corupt
     • Poorest countries are generally the most corupt
       • Unable to gain taxes from the popualtion
       • Half of the wealth the worlds poorest 20 countries goes into offshore accounts
       • Without good tax base the country is unable to invest in police, health care, education and transport
       • "clan" based thinking
         • Lack of access to talent and intellegence within a population
   • Culture
     • Generally the less people that believe in religion the richer you are likely to be
       • 19 of the richest countries in the world show 70% of their population say religion is of no importance at all to them
         • USA is the exception
           • Version of christianity provides incentive to improve now, unlike others to look forward to 'another life'
       • The poorest countries in the world sometimes have up to 100% of their population saying that religion is extremely important to them
     • Religion gives the belief that the here and now cannot be improved
       • Focus on spiritual and look forward to a next world in stead
     • Affluent countries believe that they can alter their here and now through effort and talent
   • Physical geography
     • Poor countries tend to be located in the tropical regions
       • Life is simply tougher there
       • Plants are less efficient and don't contain as much carbohydrates
         • Disadvantagous to photosynthesis
       • Wealth was determined by ones ability to ow large domesticated animals
         • Meant farmers didn't have to plow the land by hand
       • Preveneted the countries from developing advance technology and improve farming productivity
       • More prone to diseases
         • All low income countries are affected by at least 5 different tropical diseases
       • Lack of water sources
     • Richer countries have developed best 16 degrees c
     • Poorer countries tend to be land locked and have poor connections with other contries
     • Natural resources
       • With a good institution it will make the country richer, but poorer if they have a bad institution
         • Elites in these countries take the wealth from natural resources in a bad constitution
           • Provides military or other groups money for weapons and guns