Current Event 2: Economic Growth - Why Are Some Countries To

Current Event 2 Economic Growth Why Are Some Countries Today Much P

CURRENT EVENT #2: Economic Growth Why are some countries today much poorer than other countries? Are today’s poor countries destined to always be poorer than today's rich countries? If so, explain why. If not, explain how today's poor countries can catch or even pass today's rich countries? Pick a poor country and explain how they are developing quickly to become richer.

Current Event Essays must be a minimum of two (2) FULL pages double spaced. In addition to the two written pages your current event essays must be accompanied by a separate title page including your name, date, professor's name and current event title. You must also attach a separate works cited page using a minimum of three outside sources. You must cite these sources using MLA format within the body of your work.

Paper For Above instruction

Economic disparities among nations have long fascinated economists, policymakers, and scholars alike. The question of why some countries are significantly poorer than others remains central to understanding global development and growth trajectories. Many factors influence economic prosperity, including historical circumstances, geographic advantages, political stability, institutional quality, and access to technology. These elements collectively determine whether a country can harness its resources effectively to foster sustainable growth. This essay explores the reasons behind persistent poverty in some nations, whether these disparities are permanent, and how certain poor countries have succeeded in accelerating their development to catch up or surpass wealthier nations.

One primary reason why some countries remain impoverished is historical legacy. Colonialism, for example, often left nations with weak institutions, underdeveloped infrastructure, and skewed economic structures that hinder current growth prospects. African countries that experienced colonization, such as the Democratic Republic of Congo, continue to grapple with challenges rooted in colonial extraction and neglect of local development. Similarly, geographic disadvantages, such as landlocked locations or harsh climates, limit access to trade routes and natural resources, constraining economic progress. For instance, landlocked Central African countries often face higher transportation costs, which impede trade and industrialization.

Institutional quality plays a crucial role in determining economic outcomes. Countries with strong governance, transparent legal systems, and effective policy implementation tend to attract investment, stimulate entrepreneurship, and maintain stability. Conversely, countries plagued by corruption, political instability, or weak institutions often experience economic stagnation. For example, nations in sub-Saharan Africa with fragile institutions struggle to provide public goods, enforce contracts, or secure property rights, deterring both domestic and foreign investment.

Technological advancement and human capital development are vital for economic growth. Countries investing heavily in education, innovation, and infrastructure tend to experience rapid development. South Korea exemplifies this pattern, transforming from a war-torn, impoverished nation into a technological powerhouse within a few decades. Their focus on education, technological innovation, and export-oriented industrial policies propelled their economic growth, illustrating how strategic investments can lift nations from poverty.

Addressing whether these disparities are inevitable involves examining developmental pathways. Some argue that poverty persists due to structural factors beyond immediate control, implying that poorer countries face systemic barriers that perpetuate inequality. Others contend that with the right policies, investments, and global cooperation, poor nations can accelerate their growth and even surpass wealthy countries. Policies such as improving governance, investing in human capital, fostering technological adoption, and integrating into global markets are instrumental. For example, Rwanda has made remarkable progress post-genocide by prioritizing education, healthcare, and economic reforms, increasingly closing the gap with more developed nations.

Focusing on Ethiopia offers a case of rapid development among poor countries. Over the past two decades, Ethiopia has experienced significant economic growth driven by investments in infrastructure, agricultural modernization, and industrial parks. The government’s focus on attracting foreign direct investment, particularly in textiles and manufacturing, has fueled economic expansion. Ethiopia's commitment to improving education and healthcare has also contributed to a healthier, more productive workforce. Although challenges remain, Ethiopia’s trajectory suggests that rapid development and poverty alleviation are achievable with targeted policies and strategic investments.

In conclusion, the persistent disparity in wealth among nations results from historical, geographic, institutional, and developmental factors. While some disparities seem entrenched, examples like Ethiopia demonstrate that strategic, focused efforts can foster rapid growth in poor countries. The notion that today’s poor countries are doomed to eternal poverty overlooks the potential for economic transformation through sound policies, technological adoption, and international cooperation. Understanding these pathways is essential for creating a more equitable global economy where development is attainable for all.

References

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• Dollar, D., & Kraay, A. (2002). Growth Is Good for the Poor. Journal of Economic Growth, 7(3), 195-225.
• Fosu, A. K. (2013). Africa's Development: Past Trends and Future Pathways. Journal of Development Economics, 105, 1-18.
• Hansen, P., & Tarp, F. (2000). Aid and Growth Regressions. Journal of Development Economics, 63(1), 211-235.
• North, D. C. (1990). Institutions, Institutional Change and Economic Performance. Cambridge University Press.
• World Bank. (2020). World Development Indicators. Washington, DC: World Bank.
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• Rwanda Development Board. (2021). Rwanda's Growth Story: Investment and Development. Kigali: RDB Publications.