Why do some poor countries, such as Botswana, experience higher growth rates than others when all face the same challenges such as the HIV epidemic? Compare growth rates across countries by visiting The World Bank website (http://data.worldbank.org/indicator). How does GDP growth (GDP growth (annual %)) compare across developed countries such as the U.S. and poorer countries such as Nigeria. Why might growth rates of developed nations be lower than those of poorer countries?
This is the broadest possible question imaginable, and is a whole sub-set of economics focusing on growth and international development. As I could write pages and pages on this, I will keep the possibilities short and if you seek clarification, please let me know.
Why do some poor countries, such as Botswana, experience higher growth rates than others when all face the same challenges such as the HIV epidemic?
- Better institutions: respect for private property and an independent judiciary help countries grow faster
- Geography: Botswana may be better located to its potential markets; alternately it could be less afflicted by malaria and other diseases correlated with low growth
- Technology: it could have more access to better technology, meaning more efficient usage of labor ...
Why do some countries grow slower than others? This solution takes a brief overview at growth theory and the empirical evidence for slow growth over the past 60 years as applied to Botswana.