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How Rich Countries Got Rich and Why Poor Countries Stay Poor?

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Submitted By mary310
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According to the OECD report, the income of the richest 10 per cent of 34 member countrys is nearly 9.5 times more than that of the poor. It has been increased, compared with 9 times in 2007 and it means that income disparity has been exacerbated proportionately. The report especially highlight that the gap between rich and poor has been growing more quickly than the gap that has widened over the past 12 years. A global gap between rich countries and poor countries is more serious than ever.
Erik Reinert, the author of a book titled "How rich countries got rich and why poor countries stay poor?", discusses about this long title itself regarding the issue above. Once again, "How rich countries got rich and why poor countries stay poor?" Reinert is considering about what causes this phenomenon and how can we fix this problem in this book.
Orthodox development economists argue that mainstream economics(neo-liberalism) and international free trade can narrow the wage and rich-poor gap between rich countries and poor countries. Reinert criticizes them because there don't exist any exmaples of success in narrowing the gap historically and argues that "harmonious economy" is not a result of internationl free trade and laissez-faire but conscious policies since in contrast to rich countries which are already developed through protectionism, direct subsidies and government intervention so ready for free trade, poor countries are not because of their incompetitive industries. In other words, fair competition which free trade theory says cannot be possible.
Rich countries got rich by following the example of richer countries. For example, the United States emulated the United Kingdom which was industrialized behind protectionism and state activism. But now, they try to do poor countries out of following the example of development coutries. Intellectual property rights,

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