What makes poor countries poor

The richest 20 percent accounts for three-quarters of world income. And they die quietly in some of the poorest villages on earth, far removed from the scrutiny and the conscience of the world. Being meek and weak in life makes these dying multitudes even more invisible in death. Source 4 Around percent of all children in developing countries are estimated to be underweight or stunted.

What makes poor countries poor

To help address these problems, the Bretton Woods Project suggests a few steps: Greater transparency of World Bank processes, allowing greater visibility for elected officials and civil society in recipient countries; Strengthening internal mechanisms within the Bank itself, to monitor integrity of Bank functions, and allow truly independent audits of Bank operations; Minimum standards in governance, transparency and human rights that must be fulfilled before approving oil, gas and mining projects in institutionally weak countries.

Not always tying loans with economic policy conditions in such a way that some governments surrender their policy-making space.

Why are some countries poor? – Make Wealth History

During the World Summit on Sustainable Developmentthe BBC broadcast a mini debate on globalization, poverty, and related issues, and had a panel of around 30 experts, from both the developing and rich countries.

One person on that panel was Vandana Shiva, a vocal critic of the current form of globalization and its impact on the environment and people in the third world.

She was asked why people should listen to concerns from the third world when they cannot sort out the rampant corruption first. Her answer was simple: Like Shiva, Professor Neild feels that the solution is philosophically simple. However, as Neild acknowledges, in reality it is far harder to do, due to the power interests involved: It is hard to see how the international economic agencies and their member governments can introduce incentives that would cause corrupt rulers to [attack corruption]… Not only are the rich countries and their agencies in this respect impotent, they commonly have been and are accomplices in corruption abroad, encouraging it by their action rather than impeding it.

It would take an unprecedented degree of united dedication to the checking of corruption for the international community to agree that the oil and mining companies of the world should boycott corrupt regimes, somehow defined, let alone manage to enforce an agreement.

What makes poor countries poor

Anthem Press,pp. Budget transparency rankingsIBP. Click for larger view The International Budget Partnership IBP is an organization that looks at public budgets by governments around the world.

Why is this important? Produced every 2 years, in Octoberthey released their 3rd Open Budget Survey report. These reports assess how transparent and accountable the budgetary process for a number of countries around the world currently just under and ranks them accordingly.

Experts have increasingly concluded that making budgets transparent and building adequate checks and balances into the budget process can enhance the credibility and prioritization of policy decisions, limit corrupt and wasteful spending, and facilitate access to international financial markets.

Budget transparency has become central to a number of international development discourses, ranging from the financing of climate change mitigation, to country-level actions to meet international development commitments like the Millennium Development Goals, to accounting for the revenues from the sale of natural resources, and to examining the amount of international aid given to developing countries and how it is spent.

Of the 94 countries assessed, they had the following findings: The overall state of budget transparency is poor. Only a modest minority of countries can be considered to have open budgets while a large number of countries provide grossly insufficient budget information.The GDP (Gross Domestic Product) of the 41 Heavily Indebted Poor Countries ( million people) is less than the wealth of the world’s 7 richest people combined.

Corruption.

Where next?

It is an overloaded word often used as the sole cause of the problems in poor countries. Yet, corruption seems to be everywhere, indeed often encouraged by rich countries and their corporations, especially when it comes to natural resources, and arms trade. II.2 Historical poverty in today's rich countries.

We have already pointed out that in the thousands of years before the beginning of the industrial era, the vast majority of the world population lived in conditions that we would call extreme poverty today. The central European countries are still poor by western standards.

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The average American/West European makes 2x more than the average central European, and the . Power, prosperity, and poverty vary greatly around the world. Norway, the world’s richest country, is times richer than Burundi, the world’s poorest country.

Why? That’s a central question of economics. Different economists have different views about the relative importance of the conditions and factors that make countries richer or poorer.

Bill and Melinda Gates share their Annual Letter.

Blue Planet Network - Why Water?