Wealth in the world is not equally distributed. Some nations are very rich whereas others are very poor. The Western nations such as the US, West Germany, UK are very prosperous. On the other hand, economically poor countries such as those in the African continent and India, Pakistan are lagging behind. Why is this disparity so? Many economists have tried to answer this question and have suggested solutions to it, but yet it persists.
The question that arises is that why some nations enjoy a higher level of prosperity? Why do they have a higher per capita income? Let us observe this phenomenon.
Why nations are prosperous?
- Higher industrial productivity.
- Technical know-how.
- Less population.
- Efficient labor who are hardworking and committed to their work.
- Better utilization of natural resources.
- Higher education levels.
- Active participation of citizens in improving their lot. Questions are raised in Parliament in case the Government does not deliver.
- Stable Governments in power.
- Less outside interference. Many Eastern and African nations have been subjected to alien domination.
- Effective laws.
Government attitude towards economic development
In the rich nations, the elected governments owe a lot to their citizens and try their best to please them. They are in power on account of them and cannot afford to neglect them. In the less developed countries, the Government once they come to power, forget the needs of the people and are busy sorting out their vested interests. Corruption is higher in these countries and the people do not enjoy all the benefits of prosperity. Only a few do.
The governments in the developed countries are questioned in case they do not meet up to the expectations of the people. Naturally, they would ensure that economic development is at a higher pace so that people can enjoy better standards of living.
The US economy, for example, is a highly developed economy. The elected government takes its work of providing the people with all the luxuries and comforts of life.
Therefore, the countries which have a higher per capita income have streamlined administration and governments that run the country well in order to promote people’s well-being.