The Prevailing Trend in Poor Countries: Prosperity and Growth Eventually Human Fulfillment - Term Paper Example

Development is associated with economic growth, specifically the increase in Gross Domestic Product (GDP). The question as to why poor countries remain poor and people continue to live in poverty is often associated with the GDP of the country. This paper seeks factors that could affect the GDP growth and income per capita of poor countries and investigates how each factor has made poor countries poor. (Real GDP growth and income per capita are the dependent variables that were tested). This paper examines the relationship between each indicator and the dependent variable.

Theoretical concepts for the analysis of certain countries remaining poor were based on the different economic models. It encompasses four factors: geography and climate, overpopulation, infrastructure and government policies. One of the critical reasons for such a low income largely relies on its geographic location and climate. Historically, those regions that have flourished have been rich in primary resources such as water, irrigation, agriculture, fertile soil among others. Water is perhaps the most essential of these resources.

It has been a means for transportation, agriculture and it plays a key role in health. Nations without rivers and proper irrigation have had many problems developing (Gallup, et. al., 1998). On the other hand, unfavourable climates may lead to high disease vectors, which lower the GDP per capita of the country (Sachs, 2003). Apart from geography location and climate, another factor that can affect a country‘s economic development is the population and human capital.