Table of Contents
Can the poor countries ever catch up with the rich countries?
The catch-up effect is a theory that all economies will eventually converge in terms of per capita income, due to the observation that poorer economies tend to grow more rapidly than wealthier economies. In other words, the poorer economies will literally “catch-up” to the more robust economies.
What are the major reasons why some countries are rich and others poor?
One of the oldest and most important questions in economics is, “Why are some countries rich and others poor?” Scholars have proposed numerous explanations for what increases a country’s level of economic wealth, including free trade, more investment, temperate climate, good health, high education, financial market …
Are today’s poor countries destined to always be poorer than today’s rich countries?
The poorer countries are not destined to stay poor because they can take advantage of the already developed advanced technology to catch up with rich countries. Poor countries grow faster because they can simply adopt existing technologies whereas rich countries must invent new technology to get even richer.
Who proposed a country is poor because it is poor?
Answer: Ragnar Nurkse explains that the vicious circle implies a circular constellation of forces tending to act and react upon one another in such a way as to keep a poor country in a state of poverty. The entire argument is summed up in Nurkse’s words: “A country is poor, because it is poor.”
How Rich Countries Got Rich and Why poor countries Stay poor summary?
How Rich Countries Got Rich is a narrative history of modern economic development from the Italian Renaissance to the present day. In it Erik S. Reinert shows how rich countries developed through a combination of government intervention, protectionism, and strategic investment.
What is poverty and inequality?
Poverty is related to, yet distinct from, inequality (Haughton & Khandker, 2009). Inequality is concerned with the full distribution of wellbeing; poverty is focused on the lower end of the distribution only – those who fall below a poverty line (McKay, 2002).