2. WEALTH
DEFINITION OF A POOR
AND
RICH COUNTRY
The simplest definition of poverty is "lack of
sufficient material resources".
3. Poor country
Poor country - a country that lacks sufficient material resources
• Very low per capita income
• Very high pupulation
• High population growth
• Adverse balance of trade
• Poor infrastructure and high
corruption
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4. FR
Rich country
Rich country - a country with sufficient material resources
• Domination of services in the
employment structure and in generating
GDP;
• Comprehensively developed technical and
service infrastructure
• A large share of the high technology
industry
• Small or negative population growth
causing aging processes
• High urbanization rate.
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5. FR
Division into the rich north and
poor south
Causes
Historical and Cultural
• Colonialism - Western countries contributed
to the emergence of internal conflicts in the
countries that were formerly their colonies.
In addition, many of these countries are
economically dependent on them because
strategic natural resources are still in the
hands of Western entrepreneurs
• Cultural differences - Europeans (especially
Westerners) have always been hardworking
and entrepreneurial people. By contrast, in
more primitive cultures, entrepreneurial
activities were not common..
Political and Economical
• Spheres of influence
• International trade, whose unfair rules,
regulated by the World Trade Organization
(WTO), clearly favor rich countries and
multinationals, to the obvious detriment of poor
countries, e.g. unfair prices of their products on
world markets even below production costs or
obstacles to access to markets rich north
countries.
• Unfair foreign debt forcing poor countries to pay
huge interest rates that many times exceed their
spending on health, education and other social
services
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6. FR
Aid of the West
What does it look like?
I. Governments of the poorest countries receive money
for various purposes, e.g. development of agriculture or
technology. Such assistance lasts until the condition of a
given element changes for the better.
II. Technological assistance - many experts from rich
countries work on developing new technologies and
development strategies for poor countries. At the
moment, they are mostly working on more efficient
farming techniques that could lead to elimination of the
problem of hunger and on technologies that would help
to fight illiteracy.
III. In-kind assistance - providing things that are needed
at the moment and meeting current needs over a longer
period of time.
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