Rich countries are getting richer while poor countries are getting poorer. What is the cause of this? What could be done to solve this problem?

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The gap between rich and poor countries is widening these days. Due to good governance and low levels of
corruption
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in
first
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world countries they are achieving high
growth
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when compared to
third
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world countries.
However
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, poor countries can catch up with them by implementing strict laws and reforms.
To begin
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with, rich countries have significantly higher
growth
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rates because of zero tolerance towards
corruption
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. They value talent and make sure that talented people have no dearth of opportunities in their country.
This
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allows them to attract huge investments and
thus
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create new employment opportunities.
In addition
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, rich nations enforce laws which
favor
promote over another
favour
companies
to expand
Suggestion
expand
their presence.
Companies in
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Companies, in
turn pay
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turn, pay
taxes to these nations and help them grow financially. For these reasons,
first
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world countries can maintain a very healthy
growth
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rate. Poor countries need to follow similar
growth
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models and focus on improving their economy.
Firstly
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, they need to implement tax reforms so that multi-national companies do not face any hassles when expanding their base in these countries.
Secondly
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,
corruption
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by officials is very high in these countries and it has a direct impact on people’s lives. Often times, skilled people do not have enough opportunities in these nations and
this
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forces them to migrate to other countries. Strict anti-
corruption
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laws need to be implemented to ensure proper governance.
In addition
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, the government should proactively create opportunities to prevent brain drain. To conclude, the economic disparity between countries is growing. In my opinion, high levels of
corruption
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and poor governance are the main causes of poverty in poor countries.
However
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,
this
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can be overcome by implementing proper laws and regulations.
Submitted by Rashini Dahanayake on

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Topic Vocabulary:
  • financial assistance
  • technological assistance
  • economic gap
  • basic needs
  • healthcare
  • education
  • infrastructure
  • global stability
  • diplomatic relations
  • global cooperation
  • dependency
  • self-sufficiency
  • strings attached
  • political decisions
  • economic decisions
  • sovereignty
  • tension
  • mismanagement
  • corruption
  • intended purpose
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