Watch the video above and talk about it with a group or mentor. Learn more.
The wealth - or lack thereof - of a country depends on many things, including its institutions, culture, resources, and geography.
Key Points:
- There are 196 countries. Twenty-five of those are very rich and include the U.S., Japan, Australia, and much of Europe. The twenty poorest countries in the world are comprised of Afghanistan and much of Africa.
- Basically, three factors determine if a country will be rich or poor. The first is its institutions. If a country has uncorrupt institutions (government, banks, law enforcement, etc.) everyone thrives and the country’s overall wealth grows. When a country’s institutions are corrupt, people suffer. The rich in such countries tend to be the most violent, immoral, self-promoting citizens.
- Culture is another factor. People’s outlooks and beliefs hugely affect how they behave. There seems to be a strong correlation between secularism (lack of religion) and wealth – but this does not prove that poverty is caused by religion or that wealth is caused by secularism. To think this would be to commit the fallacy of false cause.
- Geography is a factor. Most of the poorest countries are located in tropical regions, which makes it difficult to cultivate crops that can be used for food. Animals do not survive as well, which makes farming and techonological advance difficult, and the warm, humid climate allows parasites and diseases to thrive. Countries that are landlocked struggle tremendously because they cannot engage in trade or transportation easily.
- Natural resources. We might assume lots of resources means lots of wealth, but this is only true if a country has good institutions. Natural resources are a problem for countries with bad institutions because it allows the corrupt, powerful citizens to grab up wealth without sharing it with the rest of society. The benefits of what should be a national resource are enjoyed by a few corrupt warlords.
Quote This:
An imbalance between rich and poor is the oldest and most fatal ailment of all republics. –Plutarch
See Also: Culture, Money, Politics, Poverty
Talk About It
- What is your initial reaction to this topic? What jumped out at you?
- Would you say the country you live in is rich, or is it poor? Explain.
- Have you ever been to a country that is notably poorer than your home country? What sort of things did you see there that surprised you or challenged you?
- What are some of the benefits of living in your home country? What are some of the drawbacks or challenges?
- Why do you think institutions are so important in determining wealth or poverty? Give an example.
- Why do you think people in poor countries are, on average, more religious than people in secular countries? (Remember: don’t commit the “correlation means causation” fallacy!)
- How do geography and climate affect wealth?
- How are natural resources “intensifiers”? Give a practical example if you have one.
- Why should we be modest and humble about our success if we live in a rich country?
- Why should people from rich countries show sympathy for those who live in poor countries?
- Write a personal action step based on this conversation.
