Why Do Different Countries Have Different Levels of Economic Development?

 

In the developed world, numerous countries are at very different levels of growth. All countries established on a hill slope, with the richest developed countries like Japan at the top and the poorest developing countries like Burkina Faso at the bottom of the hill, are called one model of economic growth. 

The Newly Industrialized Countries (NICs), such as South Korea, are the better of developing countries. These will be halfway up the slope, below the lowest of developing nations, including Hungary, for example. Here are a few reasons why economic development differs amongst countries.

Climatic conditions

Any extreme temperature, such as being too hot, too cold, too wet or too dry, would delay growth. Many African nations are found in arid, very hot climates. This makes food processing hard. Many of these countries are vulnerable to drought and famine, such as Burkina Faso, for example. Some of the poorest, least developed countries, such as Mali and Chad, are in the Sahel region of Africa. 

Any adverse weather can disrupt life. Building houses and roads, farming the land, attracting industry and earning a living, in general, will be difficult. Mountains and steep slopes make farming, travelling and earning a living difficult once again. This is true of countries like Afghanistan that are mountainous.

The concentration of natural resources

Less developed regions with a lack of natural resources (e.g. coal, diamonds, oil) and areas with low soil or poor drainage will exist. There are huge oil deposits for sale in countries like Saudi Arabia and Kuwait. Oil is in great demand, so it can be sold at a big profit, making it a high GDP. However, issues such as war can stop a nation from developing. Owing to the war, Iraq is not permitted to enjoy the profits of its oil deposits. 

It would also be difficult to grow areas that are inevitably connected to endemic diseases. Instead of Aids and malaria, many countries in Africa have experienced a socioeconomic setback. Researchers also estimated that between 1982 and 1992, the world missed on average 1.3 years of improvement in human growth due to the Aids pandemic.

State of the economy

With few factories and workplaces, there could be a low degree of industrialisation. Some people think that it is trade and business that produce resources for prosperity. Works tend to be well paying and provide coverage in these regions. In the primary market, developed countries tend to have more employment, with poor exchange levels and mostly under the control of international corporations. Sometimes, the resulting revenues go elsewhere and appear not to be reinvested in the country. 

Many developing nations are burdened due to debt repayments. They can suffer from trade barriers, such as the introduction of tariffs and quotas by developing countries. China, with a rapidly developing industry, is a newly developed nation (NIC). There are many international corporations investing there.

Miscellaneous factors

Production may be influenced by political processes. For starters, dictators, such as Robert Mugabe in Zimbabwe, rule some countries. There are more dictators in Africa than on any other continent. 

Civil wars have ravaged many African nations, such as Liberia, Sudan and Somalia, and this has impeded progress. Dictators have been blamed for much of the civil wars in Africa, such as the conflicts in Ethiopia, Sudan and DR Congo. Conflicts have a strong effect on the agricultural production of Africa. 

Africa could feed herself and sell food in the 1960s. There is a generalised food shortage today. Dictatorships and civil wars also deter foreign investment. According to Algerian President Abdelaziz Bouteflika, the civil war in Algeria killed 100,000 civilians and caused economic damages of $20 billion starting in 1991.