The World's Poorest Countries Assignment Example | Topics and Well Written Essays - 2500 words

The World's Poorest Countries - Assignment Example Countries with GDP per capita of $765 or lesser than that are declared to be the poor countries (The 10 poorest countries of the world, n. d) According to International monetary fund and the CIA world factbook, Zimbabwe was declared as the poorest country in the world in the year 2010. The study of the list of poorest country in the world also brings into notice that among the top 10 poorest country in the world, 9 of them are from the region of Africa which reflects the vulnerability of the African region. The table below shows the list of the top 10 poorest countries along with their respective GDP during the year 2010 as declared by the International monitory fund. Countries Annual GDP per- capita (in $) Zimbabwe 0.1 Democratic republic of Congo 334 Liberia 379 Burundi 401 Somalia 600 Niger 736 Eritrea 739 Sierra Leone 747 Afghanistan 800 (Top 10 poorest countries in the world 2010, 2010) Poverty is reigning in most of the countries. The causes underlying the poverty are varied in nature. It is not always the people who are responsible for the predicament. The governments of the country play a major role in framing policies which leads to the successful development, whereas failure from their behalf makes the people suffer for years. The leaders of the developed countries are also responsible as their external influences often make the government of poor countries helpless and results in unequal rules of trade. Structural adjustment has been one of the prime causes of poverty. To attract the investment form the developed nations, poor countries try to reduce the wage structure and provide cheaper resources but ultimately it results in the degradation of the economy and increases the poverty level among the people.... The study of the various socio economic conditions of the poorer nations reveals the fact that the opportunity of free trade is not present in the countries. The important factor required in the success of the free trade lies in the fact that the nations entering into the free trade should possess skills and resource to produce cost effective goods and services with which they can trade with other countries. It has been portrayed that the absence of adequate capital, labor and infrastructure prevails in most of the countries. The paper studies in detail about the various aspects of the poorer countries and studies whether any possibility of free trade exists among the poorer nations. The option of free trade would have definitely helped the countries to recover from their overall financial crisis, but the preliminary requirements of entering into the free trade are absent among the countries as highlighted in the study. It is recommended that the poorer nations should prevent them from entering into the free trade agreements unless and until they have the necessary infrastructure and they improve on their core sectors of the economy. If the countries decide to enter into free trade, it would become much more vulnerable for them instead of helping their situation. However the countries should make a strong effort in improving their conditions so that they are in a position to enter free trade as it will really provide an added advantage to them in the days to come. Help from the developed nations of the wo rld are also required for the promotion of free trade among the poorer nations.