What is an important factor in the large gap between developed and developing nations?

The gap is generally caused by rich countries being able to exploit the poorer countries as they have the dominant political power to be able to do so. As a result, the poorer countries suffer from lack of resources and spiral into poverty cycles which widen the development gap.

Why is economic convergence important?

Furthermore, the combination of widening income gaps between countries and the globalization of ideas, knowledge, access to information and awareness of others’ living standards provides powerful incentives for the movement of people across international boundaries.

Why economists expect poor countries to grow at a faster rate than rich countries?

Developing countries have the potential to grow at a faster rate than developed countries because diminishing returns (in particular, to capital) are not as strong as in capital-rich countries. Furthermore, poorer countries can replicate the production methods, technologies, and institutions of developed countries.

Why is the development gap important?

Managing differences in development Many believe that the gap between the high income countries (HICs) and low income countries (LICs) is getting wider. Reducing the development gap would lead to an increase in the quality of life for millions of people around the world.

Why is there a gap between economic north and south widening?

There are many causes for these inequalities including the availability of natural resources; different levels of health and education; the nature of a country’s economy and its industrial sectors; international trading policies and access to markets; how countries are governed and international relationships between …

Why do some countries make progress towards development while others remain poor?

Social factors – some parts of the world have issues that are caused by people. These include low levels of education, poor water quality or a lack of doctors. Political factors – some countries are at war or the government may be corrupt. These can be sold and the money invested into developing the country.

Why do countries and cultures experience global convergence?

Cultural convergence is the theory that two cultures will be more and more like each other as their interactions increase. Basically, the more that cultures interact, the more that their values, ideologies, behaviors, arts, and customs will start to reflect each other.

Why do countries converge?

When countries with lower levels of GDP per capita catch up to countries with higher levels of GDP per capita, the process is called convergence. Convergence can occur even when both high- and low-income countries increase investment in physical and human capital with the objective of growing GDP.

Why do poorer countries often experience rapid economic growth?

Poorer countries may also be able to experience more rapid growth because they can replicate the production methods, technologies, and institutions of developed countries. Because developing markets have access to the technological know-how of the advanced nations, they often experienced rapid rates of growth.