What Makes Countries RICH or POOR? (Qatar VS Nepal)
What Makes Countries RICH or POOR Economics
Traveling from Qatar to Nepal got me thinking; why are some countries rich and growing, while other countries are simply stagnant? Answer: Capital! Specifically physical capital, human capital, and organizational capital. Capital is what makes workers more efficient, it enables them to produce more.
But why do some countries accumulate capital, while others bleed it? Because in poor countries corrupt institutions (governments and businesses) misallocate or outright steal the capital that is produced in the country. Geography and cultural values also play an issue.