Despite the development of technology, globalization and industrialization of other countries, the participants in the top 10 poorest countries in the world remain unchanged from year to year. They are moving very slowly to achieve the kind of improvements that wealthier nations have long had. Moreover, many of them are WTO members.
When compiling the rating of the least developed countries (LDC is a term officially used by the UN), we took into account such an important criterion as gross domestic product per capita. Essentially, this indicator reflects the average wealth of each person living in a particular state. GDP per capita is at the heart of any economic classification of countries in the world.
To compensate for the huge differences in cost of living and inflation rates, especially noticeable in most African countries, where local currencies have fallen sharply against the dollar, we have used a different notation. Namely - GDP per capita, adjusted for PPP (purchasing power parity). This provides a more realistic picture of the purchasing power of the average citizen within a given country.
10. Madagascar
GDP per capita in current prices - $ 404.9
GDP (PPP): $ 1,562
Madagascar Island is a biodiversity paradise located in the Indian Ocean off the coast of South Africa. it 3rd largest island in the world... In Madagascar, 90% of the flora and fauna of the Earth can be found.
One of the biggest problems for the islanders is the annual tropical cyclones. They lead to the destruction of infrastructure. Every year, many people in Madagascar become homeless as a result of this natural disaster. Cyclone losses have reached $ 250 million.
Another problem is the constant increase in population and depletion of the island's resources.
The main economic activities in Madagascar are rice and coffee growing, silk and palm oil production. These products are exported.
For a long time, Madagascar experienced not only an economic but also a political crisis. It was there that government officials stole millions of dollars from funds that were supposed to go to the development of the country. In addition, living in economic colonialism forces Madagascar to develop, mainly, such a direction as the extraction of resources (and they are not endless), and also includes the lack of investment in sustainable sectors of the economy.
As a result, more than 70% of the island's inhabitants live below the poverty line.
9. Eritrea
GDP per capita in current prices - $ 844.1
GDP (PPP): $ 1,349
Eritrea is in the top 3 countries with the lowest standard of living... It is run by an extremely secretive and repressive government that makes it difficult to obtain up-to-date economic indicators. Local authorities completely ignore such concepts as "human rights". Hundreds of thousands of citizens have left the country in search of a better life in European countries.
This is a state with a traditional economic model.That is, technologies are poorly developed, 80% of the population of Eritrea is dependent on subsistence agriculture, and uses outdated manual methods of tillage. The recurring drought in the Sahel region makes food security a particular concern for the country as a whole. However, there are prospects that mining operations could lead to further economic growth in Eritrea.
8. Guinea
GDP per capita in current prices - $ 532.3
GDP (PPP): $ 1,322
Equatorial Guinea is potentially one of the richest countries in the world due to its huge mineral deposits (the country has a quarter of the world's bauxite reserves).
However, the country's economy is largely dependent on agriculture and fishing. Since agriculture is subsistence farming, farmers do not have access to new technologies. Moreover, investors stopped seeing the country as promising after the Ebola outbreak, which officially ended in December 2015. That is why it is included in the list of the poorest countries in the world.
Recently, the Guinean government has forecast improved GDP growth as part of increased gold and bauxite production. In the meantime, the slow rise in living standards in conditions of poor material development, with rapid and poorly controlled urbanization leads to social tension in the country.
7. Mozambique
GDP per capita at current prices - $ 387.5
GDP (PPP): $ 1,322
Mozambique has shown consistent economic growth over the past decade. The government has devised a series of macroeconomic reforms to bring the economy back to normal. However, three factors remain that make Mozambique the seventh poorest country.
- First, the aftermath of the civil war is a major obstacle to Mozambique's development. For twenty years, pro- and anti-government groups have fought a bloody war that has killed nearly a million people.
- Secondly, Mozambique's external debt. During the war years, the external debt of this country exceeded $ 5 billion. Payments for servicing external debt "eat up" the funds necessary for the country and its inhabitants. And the disclosure in April 2016 of a previously undisclosed $ 1.4 billion debt led the IMF to suspend aid to the country.
- Third, agricultural productivity is very low, with less than 7% of Mozambique's land being arable.
6. Malawi
GDP per capita at current prices - $ 332
GDP (PPP): $ 1,182
The country is home to about 16 million people. Moreover, 85% of the population lives in rural areas. Malawi is one of the most populous countries in Africa.
Malawi's economy has shown positive dynamics in recent years. The government has embarked on reforms in education and health care. Nevertheless, in the field of finance, the situation is not the best: high inflation quickly eats up the income of the population. In addition, the country is overly dependent on foreign funding. And an economy that relies heavily on outside aid cannot be considered sustainable.
5. Niger
GDP per capita at current prices - $ 434
GDP (PPP): $ 1,159
According to the World Health Organization, one in six children in the state of Niger does not live to see their fifth birthday due to malnutrition and disease. Health and sanitation problems in Niger make this country one of the poorest.
Two thirds of the population in Niger live below the poverty line, subsisting on less than one dollar a day, and hunger is a daily problem for many families. Several attempts to boost the Niger economy have failed due to severe political instability, high levels of gender inequality, high birth rates and frequent ethnic conflicts.
Most of the population of this underdeveloped African country derives its livelihood from fishing and agriculture.
4. Liberia
GDP per capita at current prices - USD 518.4
GDP (PPP): $ 915.3
Liberia's economy was severely damaged by a 14-year civil war that ended in 2003. So far, the country is still recovering from its consequences.
Three quarters of the poor in Liberia live in rural areas, where subsistence farming is the main source of family income. However, Liberia's low access to agricultural technologies and limited access to markets are the reasons why the country is classified as one of the poorest as of 2018.
3. Burundi
GDP per capita at current prices - $ 263.2
GDP (PPP): $ 832.3
Burundi is a developing African landlocked country. In 2015, a military coup took place in Burundi, which led to massive bloodshed. As a result, many people became refugees, and the UN accused the country's government of crimes against humanity.
Political instability threatens any economic and institutional progress in this country. In addition, Burundi suffers from rampant government corruption.
The main reasons that led to the miserable state of Burundi:
- High pressure on arable land, with the result that the average farm size in the country does not exceed 0.5 hectares.
- Insecurity and constant movement of the population from place to place.
- Very frequent droughts.
- Scarcity or poor quality of agricultural tools and technology, and limited market incentive.
- Low labor productivity and low cash incomes from subsistence agriculture
The main export commodity is coffee. It accounts for 93% of the total Burundian exports.
2. Democratic Republic of the Congo
GDP per capita at current prices - USD 483.4
GDP (PPP): $ 811.2
Congo ranks second in the list of the poorest countries. This is due to several factors.
- First, most of the country's 6.7 million hungry people live in the five conflict-affected provinces in the eastern part of the country.
- In addition, almost half of Congo's children under the age of five are developmentally delayed, too young for their age, or malnourished.
- Due to the ongoing conflict, there are 2.7 million internally displaced persons in the DRC and neighboring regions.
1. Central African Republic
GDP per capita at current prices - $ 402
GDP (PPP): $ 693
Here is the answer to the question of which country is the poorest in the world as of 2018. Moreover, it is not only the poorest country in the world, but also the most hungry, according to the 2017 Hunger Index.
Three quarters of the CAR population is assessed by the World Bank as living in extreme poverty. The World Bank recently approved an ambitious $ 250 million program to help rebuild the country.
It seems surprising why such a wealthy country with many diamond mines is the poorest of any country in the world. This is due to many factors. Among them:
- Lack of education accessible to all strata of society.
- Slight economic growth, causing people to suffer from hunger and frustration with government actions.
- Poor development of agriculture, which is largely dependent on weather conditions. Moreover, only 4% of arable land is used in the country.
- Children and women are deprived of all rights.
- Finally, the country's health sector is underdeveloped, and HIV and widespread drug and alcohol use are serious health threats.