Eradicating poverty from a country can be a difficult and daunting task, but it is not impossible. Some countries are able to develop solutions that bring their economy and their people out of disastrous living conditions. Here is a list of five countries that escaped from poverty and created a better future for their citizens.
5 Countries that Escaped From Poverty
- Ghana: In 1990, this small West African nation had a GDP per capita of $1,900 with a poverty rate of 52 percent. By 2018, their GDP had reached an all-time high of $4,211.85 and their poverty rate was cut to 21 percent. Their extreme poverty rate also dropped from 35.6 percent to 18.2 percent within the same time. How were they able to do this? The country focused on educating its citizens to be a well-educated workforce. This allowed them to industrialize and put people in charge that had the knowledge and resources to succeed. Agriculture was the main area of employment back in 1990, but with a diversification of the economy, they were able to boost other sectors to create more jobs. This included the manufacturing and exportation of technological goods and mining that helped them become one of the top producers in gold in the world.
- Norway: Having the highest standards of living in the world is not an easy feat. The GDP per capita of Norway as of 2018 is sitting at $8,1807.20, the highest in the country’s history. But they haven’t always had this success. Norway was once one of the poorest nations in the world. During the turn of the 20th century, the Northern European nation’s economy was reliant on agriculture and fishing industries. When these began to fail, hundreds of thousands of Norwegians began to leave the country to escape from poverty for economic opportunity elsewhere. It wasn’t until after World War II that Norway’s economy began to trend upward. The United States provided aid to the country that was ravaged by the fighting and they used the aid help kick start their battered economy. Once oil was discovered off their shores in the North Sea in the 1970s, their economy flourished and they have been consistently trending upwards ever since.
- Singapore: The small city-state of Singapore gained its independence from Malaysia in 1965. It was a rough start for the people and their economy. The country’s GDP per capita stood at $516 and more than 70 percent of the people lived in the slums with half of the population unable to read or write. Lee Kuan Yew was prime minister at the time and he installed reforms that were very successful for the people of Singapore and their economy. He began by revamping the education system and creating a workforce that was highly skilled and well trained. To bring in foreign investment, Singapore developed an attractive tax system that is one of the lowest in Asia. This would bring in shipping and manufacturing businesses to their shores. With the influx of money and a rise in the economy, they were able to improve the infrastructure and housing of the country that gave a boost to the standard of living. The country’s escape from poverty has been a success, as Singapore’s current GDP per capita is $57,714.30 as of 2017.
- Bolivia: Once regarded as one of the poorest nations in South America, landlocked Bolivia is now a rapidly growing economy. The country’s poverty rate plummeted from 59 percent in 2005 to 38 percent in 2015, while at the same time extreme poverty dropped from 38 percent to 18 percent. The recent success of Bolivia can be contributed to the policies of the current leader Evo Morales installed to fight poverty. He implemented price controls over the products being sold in Bolivia such as food and gasoline so the poor could properly afford these items. While this didn’t create jobs, it did increase spending and allowed the economy to grow. Morales also created a pension of $258 to go towards those aged 60 and up to allow the elderly to escape from poverty.
- South Korea: After years of Japanese occupation and the end of the Korean War, South Korea’s economy was suffering in the 1950s. South Korea was not an industrialized nation and the main focus of its economy was agriculture. In 1960, South Korea’s GDP per capita was $79, which changed once General Park Chung-hee took charge of the country. Chung-hee implemented a five-year plan in 1962 that industrialized South Korea, creating jobs for the people. Companies like Hyundai, Samsung and LG would receive economic incentives, such as tax breaks, to help grow their businesses. South Korea also took advantage of U.S. economic assistance in exchange for letting the United States military keep troops in the country. Today, South Korea is a thriving economy, and as of 2017, enjoys a GDP per capita of just under $30,000. In addition, the country now accounts for $56 billion of U.S. exports, indicating a strong return on the $5.6 billion of aid invested decades ago.
Being able to rid a country from the grips of poverty involves a certain level of risk and ingenuity. Whether it’s by using the resources in their country, receiving foreign aid from other countries or changing their economic system, these countries that escaped from poverty show it is possible.
– Sam Bostwick