Why Countries Are Rich or Poor

Topics: Poverty, British Empire, Colonialism Pages: 2 (819 words) Published: November 8, 2011
Some countries are rich and some are poor. There are many different factors that can affect a country’s wealth. Natural factors, multinationals, debt and colonialism are some of the main reasons to why countries are rich or poor. Natural factors can affect a country’s wealth by a lot. They are factors that have to do with nature like soil quality and the climate. They can affect a country because if all the farmers have bad soil they cannot farm good food. If they cannot farm good food they cannot sell it. If they cannot sell it they will starve and the people who buy food from the farmers would starve. This means that the population is always starving and cannot do anything about it. They are stuck in an ever going poverty cycle that is extremely difficult to get out of. Most countries that are filled with deserts and have bad conditions for farming are usually poor countries. An example is Niger. It is 80% desert and the other land is prone to desertification and droughts. This is one reason to why Niger is such a poor country. On the other hand New Zealand has very good conditions for farming which is a reason to why it is rich. Multinationals are one of the reasons to why poor countries are poor and stay poor. They are companies that move their factories to poorer countries. They do this because in those poor countries they can pay the workers very little because the minimum wage is very low. When they do this their profit is increased by a lot. Here they have to pay us at least $13.50 but in a poor country like Indonesia they can pay them 10 or 20 cents. By doing this the rich become richer and the poor become poorer. Multinationals also strip the country of their resources to make their products. In doing so they ruin the environment of the country and prevent future jobs i.e. if all the cotton is gone from the country no cotton products can be made. Multinationals also pollute poor countries as usually poor countries don’t have limits on pollution....
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