Top 10 Least Countries in the World
10. Madagascar – GDP per capita – $ 1477
Madagascar’s economy is based on huge agricultural potential. Madagascar has done relatively well in protecting its agricultural infrastructure by limiting trade barriers. Over the years, poor economic reforms and political instability have adversely affected the economy.
There has been unequal growth in various sectors of the economy, which has hampered growth. Growth in the private sector has also been hampered by a lack of sufficient funds for ordinary people to do business due to great poverty and corruption.
9. Guinea – GDP per capita – $ 1388
Since independence, Guinea has made little progress economically. This is due to the poor economic structure. This has resulted in unequal economic development. This is evident in the private sector.
This dynamic sector is experiencing stagnant growth, mainly due to the vulnerability of government agencies. Moreover, their judicial system has been eroded by political interference and has neglected to deal with corruption.
Although Guinea is rich in minerals such as bauxite, iron, diamonds and gold, major civil wars have not fully exploited the potential of its mining industry. Guinea’s external debt level is over $135.8 million.
8. Eritrea – GDP per capita – $ 1210
Eritrea’s economy is one of the most stagnant economies in growth. This field is largely underdeveloped. The judicial system is very weak in dealing with corruption and their rulers have been poor at developing and bringing about major economic reforms.
This has led to major immigration since 1998, which has affected the labor base. The public sector is still a major source of employment as the private sector has shrunk significantly.
Severe drought in the region is severely hampering agricultural growth in the country. Poor economic laws such as state ownership of land will continue to distort the economy.
7. Mozambique – GDP per capita – $ 1208
Mozambique has implemented major reforms to improve its current economic situation, but massive unsustainable public debt and widespread inflation have hindered these reforms. It has grown the most economically since independence in 2016. They are currently unable to pay their external debt on an agreed-upon schedule.
But economists predict that the situation will improve with better prices and demand for gas and coal products. Since independence, the private sector has made tremendous progress and government reforms are expected to increase foreign direct investment.
6. Niger – GDP per capita – $1069
Niger is a prime example of a mineral-rich but slow-growing country. Although Niger has vast uranium reserves, unstable international prices have severely damaged its economy. The lack of a diverse economy has hampered Niger’s growth. Corruption has spread through poor judicial systems and poor reforms.
Weak economic policies and institutions have not provided an adequate basis for nurturing a broad-based private sector. Niger also faces an underdeveloped labor market, mainly concentrated in the informal sector.
5. Burundi – GDP per capita – $951
Burundi is overly dependent on agriculture. More than 80% of the population gets jobs in this sector. Unfortunately, agriculture in Burundi is unstable and unpredictable. This is preventing the private sector from creating enough jobs and employment opportunities.
Political instability has shaken the country so that the current president does not resign. This has dampened the country’s business as most people are leaving the country. Also, widespread corruption has ruined the country. Countries are hoping to achieve significant economic growth. However, due to poor governance, notable growth is unlikely in the years to come.
4. Liberia – GDP per capita – $934
Liberia’s economy is developing significantly. With future leaders, Liberia is on a path of economic growth. By removing trade barriers and simplifying business licensing, we have achieved over 5% growth over the past five years. The country has made major changes in education, producing more skilled workers.
Liberia has been unable to cope with the short-term crisis as it is undergoing all these reforms. Massive corruption scandals and bad debt have plagued Liberia for years. This has made Liberia one of the poorest countries in the world.
3. Malawi – GDP per capita – $ 819
Malawi has embarked on major reforms aimed at decentralizing its economy. The government has embarked on a policy to ensure significant growth in the private sector and to ensure more foreign direct investment. Long-standing state intervention can affect long-term development.
Malawi’s standard of living is relatively low, as well as services such as education, infrastructure and general health standards. Persistent corruption and poor justice services can be major obstacles to growth. Moreover, it has sometimes threatened investors with a huge tax burden. In the coming year, if Malawi can fully implement the reforms, it will see great development results.
2. The Democratic Republic of Congo – GMP per capita – $753
This is a country that has been devastated by civil war and unrest. After independence, the DRC did not achieve political stability. Their old rulers made huge sums of money from their state treasuries. Even though the DRC is rich in minerals, the civil war has hampered massive exploration.
With a large race with over 80 ethnic groups, it was difficult to unite them. Poor economic reforms are undermining DRC’s economic potential. Its large external debt and high inflation rates have significantly hampered its growth.
1. Central African Republic – GDP per capita – $636
The past three years of political violence in the Central African Republic have already disrupted the volatile economy. The government was unable to manage the economy as well as inflationary prices. An unstructured regulatory system is hampering access to the finances needed to build a strong private sector.
CAR relies mainly on agriculture and diamond mining, but political instability has prevented growth in these sectors. Both individual and corporate taxes levied hefty taxes, deterring foreign direct investment and hampering economic growth.
