Question

Why are some countries poor and others are rich?

assignment asks you to look for your own answer that is not purely based on economics. Of course, in a 3-paragraph essay, However, take a leap: Please identify one historical and/or political factor that you think might explain the differences between people's lives in Denmark and people's lives in Bolivia. One of these countries is rich and the other is poor. Why? What factor has been responsible?

Answer 1

Ans- There are numerous factors by which a country grow its economy. The growth of economy make a country rich or poor. Some countries invest in developmental activities like providing employement opportunities,making highways,flyovers,dams etc.due to which economy grow because these are the infrastructure of the country. Whereas some countries invest in defence,law and order which is not a developmental activity.

Economic factors decide whether the country will be rich or poor. There will be many differences between the growth rate of rich and poor economies. The factors of production and labour productivity plays an important role in doing ao. If there is higher productivity in the economy then there will be faster economic growth. Due to pace in growth the country will easily escape poverty.

On the other hand, a country with a low productivity will achieve slow growth and escaping poverty will be time taking.

Bolivia doesn't have particularly extensive relations with many countries in Europe, though there are some important partners. The Dutch government funds an institution for multiparty democracy in Bolivia, which has recently become very important there. But there are better relations with the denmark.

Bolivia is considered a poor country with the lowest GDP per capita among the Latin countries of South America.

There are various factors that are responsible for low growth like poor education, political instability,lack of sanitation etc.