It’s quite an interesting phenomenon that the shape of global income distribution is that of a champagne glass. The richest fifth of the world’s population, owns 82.7% of the world wealth.

I don’t feel that the major international institutions are actively trying to keep the rich countries rich and the poor countries poor. There are many factors involved in holding poor countries back from economic success. These factors include lack of proper trade arrangements (China WTO example), level of education, control of resources and instability. One of the largest barriers developing nations need to overcome is increasing trade with other nation. For example, in Africa, transport and communications infrastructure and product variety are severely lacking. Without proper infrastructure, the transportation of goods becomes expensive and impractical. To put this in perspective, freight transportation in Africa amount to 13% of import costs, compared to 5% in industrialized nations. A common characteristic among developed nations is an emphasis on education. According to the German Federal Ministry for Economic Cooperation and Development, “Ninety-eight per cent of those who cannot read or write live in developing countries”. There are many reasons for the lack of education. In many 3rd world nations, women aren’t given the opportunity to attend school. Also, during times of civil war or turmoil, schools may be closed or destroyed. According to UNESCO, developing countries do not invest enough into education budgets. On average, these nations spend 4.4% of the nation’s income on education, compared to 5.5%+ in developed nations. Many 3rd world nations have natural resources that should be able to sustain their economies. However, more times than not, control for these resources lead to conflict and war. Larry Diamond of Stanford University reports “There are