The world has over 196 countries out of which are 25 are Rich countries but others are either on a developing phase and others are very poor. In the rich countries the per capital income of a person is 100,000 Dollars while in the poor the per capita income is 1,000 dollars per year that means 3 Dollars per day.

Each country nowadays on a road of growth but the poor countries are moving very slowly. If we go on with the current rate it would take 2722 years to get the poor countries rich.

This is Now You Know and in today's video we will tell you how does a country becomes rich or poor and what are the factors affecting it.

There are 3 factors that determine that weather a country will be rich or poor.

Institution

These are one the important part in a country rich countries have proper and strong institution while the poor countries lack that. This is directly linked with the poverty and corruption rates. The rich countries are the least corrupt countries whereas the poor countries are the most. They are not able to collect taxes to escape the poverty trap

Culture

Here culture is directly linked to religion. If a country believes less in religion the more they stand their chance to get rich. United States is a expectation in this case. The poor country heavily relies on their religion and its beliefs. Countries like Africa, Pakistan focus more on their spiritual aspect rather than the economical one.

Geography

Have you noticed that the poor countries are based in tropical area where the temperature is at its extreme? The resource in these parts of the world is scares. The soil is not good plus agriculture never prospers in this situation. Life is tough in these countries. Lack of resources and minerals makes difficult for the institution to carry their business here.

So, Is your country Rich or Poor?