Poorest Nations (per capita)
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As per per capita income, poorest nations of the world basically represent underdeveloped nations. These countries account for a low Gross Domestic Product (GDP) as compared to that of the developed and developing countries of the world.
As per per capita income, poorest nations of the world basically represent underdeveloped nations. These countries account for a low Gross Domestic Product (GDP) as compared to that of the developed and developing countries of the world.
The less developed countries of the world do not have a free market economy. Industrialization hasn’t reached the international standards. Absence of proper infrastructural facilities and beneficial social programs, lack of healthcare system, illiteracy are the major characteristics of these poor countries.
Besides these, most of the poor nations have experienced civil wars for a long period of time. This led to regression and stagnation in the economic development of the country.
Names of top ten poorest nations of the world, by way of per capita income, are mentioned below: (GDP nominal – 2007 data by World Bank)
Niger $294 Sierra Leone $286 Burkina Faso $458 Mali $556 Chad $658 Guinea-Bissau $211 Central African Republic $394 Ethiopia $245 Burundi $115 Mozambique $363
Niger is regarded as the poorest country. This landlocked country experiences droughts and food shortage quite frequently. The population of the country is almost 13,272,679, as per the July 2008 estimates. The country is heavily dependent on foreign aid from the IMF for its growth and development.
Chad experienced a growth in its economy as a result of foreign direct investments in its oil sector, in the year 2000. However, irrespective of this almost 80% of its population lives below poverty over here. The Central African Republic, with a ranking of 172, could not register good economic development on account of faulty economic policies, unskilled labor force, poor transportation facility and landlocked position.
Mozambique has 70% of its population below the poverty line. Ethiopia was adjudged a Highly Indebted Poor Country (HIPC) in November, 2001. The IMF forgave its huge debt in the year 2005.
Each of the poor countries depends heavily on foreign aid for their growth and development. The poorest nations seem to have been hit badly by the prevailing global financial crisis. As they depend on foreign investment, hence there are chances that they will be affected by this phenomenon.
