A 013 POOREST NATIONS

20 POOREST COUNTRIES IN THE WORLD

A thousand dollars or less per person per year in GDP - the consequence of poverty, genocide, years of war, lack of natural resources, poor farm management, and limited access to clean water and health care.

This is the follow-up to 24/7 Wall St.’s Twenty Most Productive Nations. Eighteen of the poorest countries by GDP per capita are in Africa. That is not surprising given the famine and war that have racked the continent for the better part of the last four decades.  Contributing to these hardships is that many of these countries were recently territories or protectorates of European nations.

The concentration of poverty and the lack of national productivity would have looked very different five decades ago.  In the 1960s, China and India were relatively poor nations, with huge populations, low literacy rates, and tremendous untapped resources. Both nations improved their fortunes through education programs and through the organization of rural populations  who were brought to cities to turn raw materials into finished goods.

Most of the poorest nations in Africa do not have effective central governments due to instability and civil war. Corrupt officials at all levels bleed money from the economy, “redirecting” aid from the West and “taxing” whatever the country’s immature industries produce on their own.

Many of Africa’s nations are resource-rich. Some have taken advantage of it. Nigeria is one of the largest oil-producing nations in the world. Meanwhile, other African countries with significant natural resources, like the Democratic Republic of Congo, do not have access to the capital needed to create an infrastructure that could exploit its resources.

The greatest problem for many of these counties is that they have limited means to improve their financial conditions. Some do not have arable land, others have negligible deposits of metal, oil, or gas. Each one been perpetually poor. And with a few exceptions, there is only modest hope that their situations will improve in the decades to come. They must rely on whatever aid they receive from the West, and perhaps Russia and China. They are now and likely will remain the poorest nations.

 No. 1 

Democratic Republic of Congo

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*Population: 70.9 million

*GDP (ppp): $20.6 billion

*$GDP Per Capita: $332

Although rich with economic resources, the Democratic Republic of Congo has suffered from war and corruption since its independence in 1960.  Once the second most industrialized country in Africa, it now has in the lowest GDP per capita in the world.  Lack of infrastructure and the flight of businesses reflect the effects of what has been termed as Africa’s “world war,” where an estimated three million lives were lost.

No 2 

Republic Of Zimbabwe

*Population: 11.6 million

*GDP (ppp): $332 MILLION (note: whoa!)

*$GDP Per Capita: $354

One of, if not the poorest nation in the world, Zimbabwe’s economy has suffered from war with the Democratic Republic of Congo and hyperinflation as a result of the overprinting of currency. A violent land redistribution campaign has scared away most potential foreign investors.

No 3 

Republic Of Burundi

*Population: 9.8 million

*GDP (ppp): $3 billion

*$GDP Per Capita: $400

Having recently emerged from a civil war between the Hutu and Tutsi factions, Burundi’s economy faces many challenges.  It is landlocked, lacking in resources, largely uneducated (only one in two children attend school), and one in every fifteen adults has HIV/Aids.  Although recent political stability has proven beneficial, poverty remains extremely prominent.

No 4
 Republic Of Liberia

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*Population: 3.7 million

*GDP (ppp): $1.4 billion

*$GDP Per Capita: $424

As a result of years of civil war and a cycle of incompetent government administrations, Liberia has suffered extensive economic hardships since a 1980 military coup led by Samuel Doe.  Fortunately, an abundance of water, timber, and mineral resources offer a chance for salvation for to the nation’s war-ravaged infrastructure.

No 5 
State Of Eritrea

*Population: 5.8 million

*GDP (ppp): $3.7 billion

*$GDP Per Capita: $679

Having only gained its independence from Ethiopia 17 years ago, Eritrea has faced many problems. Problems that arise from its position as a small, underdeveloped country that continues to experience military conflict since its sovereignty.  The country’s single party government, run by the People’s Front for Democracy and Justice, maintains total control over the economy through military force and the expansion of government-owned businesses.

No 6
Republic Of Niger

*Population: 15.9 million

*GDP (ppp): $10.1 billion

*$GDP Per Capita: $719

Featuring an arid climate which suffers from drought cycles and desertification, Niger suffers from a stifled economy that is consistently undercut by price fluctuations in uranium, the country’s primary export.  These facts, in addition to Niger’s prolonged history of post-independence military rule, keep the nation as one of the poorest in the world, devastated by disease and corruption.

No 7 
Central African Republic

*Population: 4.8 million

*GDP (ppp): $3.2 billion

*$GDP Per Capita: $745

A site of constant political turmoil, the CAR has undergone three decades of bumbling military dictatorships , a decade of unruly civilian government, and an unstable transitional government established by a military coup.  All of  this has happened since gaining independence from France in 1960.  There is great potential for economic growth within CAR’s timber and diamond industries, however years of corruption and political instability have undermined this progress.

No. 8 
Republic Of Sierra Leone

*Population: 5.2 million

*GDP (ppp): $4.3 billion

*$GDP Per Capita: $759

Although rich in minerals and agricultural resources, Sierra Leone suffered a ten-year war, which ended in 2002.  Poverty and unemployment remain great hurdles for the recovering nation. The export of diamonds, often called “blood diamonds,” benefits only a small minority of the country. For much of the general population, peace and prosperity seem unattainable.

No 9 
Togolese Republic (Togo)

*Population: 6.2 million

*GDP (ppp): $5.3 billion

*$GDP Per Capita: $826

Experiencing ongoing political unrest since gaining independence from France in 1960, Togo is considered to be one of the world’s poorest countries.  Led by the universally condemned President Faure Gnassingbe, son of the corrupt political leader Gnassingbe Eyadema, Togo has only recently begun to rebuild its relationship with the international community after years of human rights violations.  With help from the World Bank and the IMF, Togo’s government has plans to work to improve economic growth through increased privatization, government transparency, and support from foreign donors.

No 10 
Republic Of Malawi

*Population: 15.4 million

*GDP (ppp): $11.3 billion

*$GDP Per Capita: $884

Although there have been slight improvements since the 2005 election of President Mutharika, high levels of poverty, HIV/Aids and corruption continue to burden Malawi, one of the world’s most densely populated and least developed countries.  In addition, the overuse of agricultural land – the nation’s primary natural resource – has contributed to over half of the Malawian population living below the poverty line. There are plans for exploiting the country’s uranium reserves.

No 11 
Republic Of Madagascar

*Population: 21.3 million

*GDP (ppp): $19.7 billion

*$GDP Per Capita: $932

Until 1990, Madagascar had a socialist-oriented government, which was replaced by one which has relied heavily on the IMF for economic guidance. A burgeoning tourism industry has developed, but several political crises, as well as the global recession, have hurt the nation’s best hope for growth in the past few years.

No 12
Republic Of Mozambique

*Population: 22 million

*GDP (ppp): $18.6 billion

*$GDP Per Capita: $933

Since becoming independent in 1975, Mozambique has struggled to bring itself out of extreme poverty. Working against massive foreign debt with the aid of international organizations, the nation has managed to garner some attention from investors and has developed a sizable aluminum industry. The growth and export potential of the aluminum industry has been hampered by a sharp drop in the price of the metal since the global economic recession.

No 13 
Federal Democratic Republic Of Ethiopia

*Population: 88 million

*GDP (ppp): $70.9 billion

*$GDP Per Capita: $954

One of the largest and poorest of the African nations, Ethiopia relies heavily on agricultural exports (particularly coffee) to sustain GDP. Heavy droughts, poor farming practices, price fluctuations, and a two-year war with Eritrea hurt the industry, causing many coffee growers to switch to other crops. In 2005, the IMF forgave the country’s debt, which has led to improved conditions.

No 14
Republic Of Guinea

*Population: 10.3 million

*GDP (ppp): $10.3 billion

*$GDP Per Capita: $991

Guinea retains significant potential in agricultural and mineral resources, as well as hydroelectric development, but a wide range of issues, including a literacy rate of less than 30% and political uncertainty, has left these industries underdeveloped.

No 15
Republic Of Rwanda

*Population: 11,055,976

*GDP (ppp): $9.9 billion

*$GDP Per Capita: $1,149

Rwanda is one of the countries on this list which shows signs of hope. The genocide in 1994 left the nation’s infrastructure in ruins and its people in the depths of poverty. Like several others on this list, this nation is rich in minerals. Efforts to develop this resource, aided by the international perception of increased stability after nearly 1 million deaths during the genocid , have caused mineral production to replace coffee and tea as Rwanda’s main export.

No 16 
Republic Of Mali

*Population: 13.7 million

*GDP (ppp): $15 billion

*$GDP Per Capita: $1,172

Another agriculture-heavy region, densely populated Mali relies heavily on its tobacco industry, which makes up at least 50% of total exports. While the government has attempted to develop an industrial infrastructure aided by the IMF, the UN, and several other philanthropic organizations, Mali has experienced major setbacks. In particular, the unpredictable and unreliable availability of utilities, including electricity, water and telecommunications has deterred foreign investors and hampered development.

No 17 
Republic Of Uganda

*Population: 33.4 million

*GDP (ppp): $36.9 billion

*$GDP Per Capita: $1,195

Uganda has a great deal of potential with its vast natural resources, particularly precious metals and minerals. However, more than 80% of the population is employed in agriculture.  The underdevelopment of a mining infrastructure, as well as a general lack of industrialization, is largely due to large-scale civil unrest and international conflict with neighboring countries, including this list’s number one: the Democratic Republic of Congo.

No 18
Federal Republic Of Nepal

*Population: 28.9 million

*GDP (ppp): $31.5 billion

*$GDP Per Capita: $1,205

Land-locked and isolated, one-third of Nepal’s GDP comes from small-time agriculture. Like Burkina Faso, the country has experienced much political instability over the past few decades. While the nation has significant potential for the development of a hydroelectric power infrastructure, this instability, coupled with the nation’s propensity for natural disasters, has left this resource largely untapped.

No 19
Burkina Faso

*Population: 16.2 million

*GDP (ppp): $17.7 billion

*$GDP Per Capita: $1,304

The infrastructure of this west African nation has been plagued by frequent droughts and several coups since the 1980s. This country’s main export is cotton, which due partly to these intense droughts and heavy fluctuations in the industry, has been an unreliable cash crop.

No 20
 Republic of Haiti

*Population: 9.2 million

*GDP (ppp): $11.5 billion

*$GDP Per Capita: $1,338

The poorest nation outside of the African continent, Haiti has been beset by natural disasters, poor health conditions, drought and famine. The country experienced some of its worst years under the 30-year rule of physician and brutal dictator Francois “Papa Doc” Duvalier, who was succeeded by his son, “Baby Doc” Jean-Claude. Under the rule of these men, Haiti experienced a massive brain drain, which it is still recovering from. The recent 7.0 earthquake in Port-au-Prince has not helped matters.

- Douglas A. McIntyre, Charles B. Stockdale, and Michael B. Sauter

Read more: The Twenty Poorest Nations In The World - 24/7 Wall St. http://247wallst.com/2010/07/06/the-twenty-poorest-nations-in-the-world/#ixzz1Ekq5c63P

Read more: The Twenty Poorest Nations In The World - 24/7 Wall St. http://247wallst.com/2010/07/06/the-twenty-poorest-nations-in-the-world/#ixzz1EkptpfcY