Question

Why are some countries rich and other countries poor? Address both proximate and ultimate causes.

Answer 1

Some of the ultimate and proximate causes of why some countries are Rich while others are poor are:-

• Difference in Economic governments and Investment in human capital in the development of rich countries.
• Involves both External and human factors.
• Increase with higher income levels are considered richer.
• The institutional and the policy differences are other main causes of division of countries in to Rich and poor.
• Some countries become richer from new innovation,allocating a efficiency and contractual adjustments.while others do not.
• The technology capital, quali,ty and quantity of labor and natural resources also differentiate countries in to Rich and poor.
• Countries Rich in natural resources,productive knowledge are considered poor.
• In some countries, even though they have enough productive knowledge do not understand where to make use of it.
• Those countries lack cultural trades that is not proficient in responding to Economic opportunities are considered poor by some people.
• Average level of human capital in the form of occupation,Education can influence the level of per capita income.
• Continuous incentives for the poor to migrate to Rich countries will reduce the differences in income.
• Poor countries must create effective Economic policies in order to raise their per capita income., Investment technologies,deploy various elements in developing Economy.