Geographical, political and cultural factors can all contribute to a country being poor. Factors as diverse as climate, natural resources, political corruption, government instability and population can all have adverse effects on a countryﾒs economy.Continue Reading
Geographical factors such as climate, location and natural resources can all affect economy. Poorer countries are often located in the tropics, where the hot climate impedes agriculture and water is scarce, or in land-locked areas. Wealthier countries in Europe and North America benefit from hospitable climates and access to water-based trade routes. Available natural resources are another sort of lottery than benefits some countries while harming others. Oil-rich countries such as Saudi Arabia and the United Arab Emirates benefit from their valuable resources, while poorer countries have less desirable exports.
Political factors such as poor government management, corruption and trade laws also have a huge effect on a countryﾒs wealth. Poorer countries often suffer from inefficient government infrastructure, which impedes economic growth. Government corruption can also wreak havoc on infrastructure, making it difficult to accomplish simple administrative tasks. Finally, global trade laws typically favor wealthy countries at the expense of poor ones.
Social and cultural factors such as discrimination and population can also negatively affect economies. Countries where women or minority groups are denied rights effectively remove these individuals from their economies, reducing growth. Countries in which women donﾒt work also typically have a higher birth rate, leading to increased population and a strain on resources.Learn more about Economics