The poorest countries in the world

Topics: World Bank, Non-governmental organization, United Nations Pages: 4 (1574 words) Published: December 3, 2013
The poorest countries in the world are most often referred to as the least developed countries, (LDC’s). 33 out of 49 of these are within Africa. The LDCs’ are categorised by the level of income, which is defined by $2 a day, and under $800 GDP per capita for three consecutive years. They are also named by the stability of the government, and vulnerability to natural disasters such as drought, earthquakes, and civil wars. It seems that without a doubt, these countries need assistance from the rest of the world in order to develop, but the type of assistance in order to enable this development more effectively is still being carefully speculated. The challenges faced by the LDCs’ almost always cannot be tackled alone. The majority of LDC’s require assistance from the wealthier nations such as the USA and the UK. This is either in the form of aid, or arrangements to set up trade blocks and agreements. Aid can be defined as financial or technical support given to a recipient country from the donor country, for the purpose of financial rehabilitation, and economic stabilisation. Aid can be fragmented into 3 different branches, bilateral, multilateral, and non-government organisation (NGO) donations. Somalia is a country in a sorry economic state, which faces challenges that minimize their opportunities for economic growth and development. The Somalian population is young and has high levels of unemployment with 73% of Somalis living on less than $2 a day. The “world Bank” say that the GNI per capita for Somalia is $150, which is below considerable below the $800 bench mark to be categorised as an LDC. Since 2000 the external debt racked up by Somali has increased form 2.6 billion USD to 3 billion USD. The low quality of primary products due to the dry arid climate crated a deficit of food for the Somalians’, as a result of the famine, there has been increased spending on agriculture, to produce more primary products. Somalia also receives aid from the IMF, to...
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