In the present day, why are some countries rich and other countries Essay

In the present day, why are some countries rich and other countries poor - Essay Example markable victory of capitalist financial systems in North America, Western Europe and East Asia and by the miserable breakdown of socialist schema in the eastern part of Europe and the former Soviet Union (Sachs, Mellinger and Gallup 2000). The ever-changing world system of economy aggravates discrimination and inequality in the Third World. Foreign ventures carry further wealth for the already highly-industrialised rich nations as manufacturing employments are lost to the underdeveloped nations. Hunger and poverty, being the most crucial dilemmas facing the Third World today will continue to prevail unless the gulf between the two nations is mended. This paper will explain the standpoints of the theories of Third World Dependency on the First World; the Capitalism and Protectionism by the Rich Nations; and Globalisation of markets. The uneven distribution of world income will likewise be presented, as well as the debt crisis that worsens the economic conditions of the deprived civilisations. Moreover, it will attempt to explain the gap between the developed and underdeveloped countries, which when not quickly bridged may aggravate hunger and poverty in the Third World and may cause the economic collapse of both worlds. The greatest distinct gauge of a nation’s success is gross national product (GNP) per capita or gross domestic product (GDP) per capita– the overall worth of a countrys economic production, divided by its population (Sachs, Mellinger and Gallup 2000). Figure 1 below shows the world distribution of GDP per capita obviously exposing the immense gap between the first and third worlds. The richest countries or the highly industrialised nations of the world include the United States, majority of Western Europe, Canada, Australia, New Zealand, and Japan. These countries have high per capita output and highly developed market economies based on the huge supply of capital goods, innovative technologies, and a highly-educated labour force. The