Why Many Rich Countries Still Remain Poor?

Liba Hopeson

Some countries are blessed with natural resources—gold, oil, diamonds, fertile land, and more. Yet, many of their people still live in deep poverty. This is true for many nations, especially in Africa. These countries are rich beneath the ground, but poor above it. Their land holds great wealth, but their people struggle daily. Why does this happen?

The main reason is not the lack of natural wealth, but the lack of human wealth. This means they do not have enough educated, skilled, and trained people to turn those resources into real progress. Economist Thomas Sowell and others have said the same thing—natural resources do not make a country rich. People do.

After the Second World War, many European countries were left in ruins. Buildings were destroyed, and their economies had collapsed. But they recovered quickly and became rich and stable again. Why? Because they had strong human capital. Their people had knowledge, skills, and the ability to rebuild.

Britain is a good example. It ruled many parts of the world because it had strong leaders, thinkers, and planners. It also had a long tradition of education. Oxford University, one of the oldest in the world, shows how much they valued learning. Their success came not just from power, but from knowledge.

The United States is the richest and most powerful country in the world today. One big reason is its strong focus on education. Most of the best universities in the world are in the US. Even now, it invests billions of dollars in schools, research, and technology. Its real strength is not just its army or economy, but the ideas and knowledge of its people.

The Jewish people are also known for their success across the world. Though small in number, they have made great progress in science, business, and leadership. Why? Because they place a high value on education. They raise their children to ask questions, read, think, and grow in wisdom. This love for learning helps them succeed wherever they go. Jews make up less than 0.2% of the world’s population, yet they have won over 20% of all Nobel Prizes. They dominate in fields like medicine, law, finance, science, and technology. This shows what a deep respect for education and knowledge can do for a people.

Singapore is another great example. It is a small country with no natural resources. But today, it is one of the richest and most advanced nations. This happened because they invested in people. They built excellent schools, trained professionals, and created a system that rewards hard work, talent, and discipline. They proved that a country can grow rich through education alone.

South Korea also used to be very poor, especially after the Korean War. But now it is a developed and high-tech country, home to global companies like Samsung and Hyundai. Their secret? Education. They trained their people, improved their schools, and built a strong and skilled workforce.

China is also rising fast. The US now sees China as its biggest competitor. Why? Because China has focused on learning, research, and innovation. It has invested billions in education and built world-class universities. Today, China leads in many areas like manufacturing, science, technology, and even space exploration.

India, on the other hand, invests far less in education and research compared to the US and China. In 2023, India spent about 2.9% of its GDP on education, which is around $90 billion. For research and development (R&D), it spent only 0.7% of GDP, which comes to about $22 billion. In contrast, China spent over 4% of its GDP on education, amounting to about $620 billion, and 2.4% on R&D, which is over $370 billion. The United States spent more than 6% of its GDP on education, about $1.4 trillion, and nearly 3.5% on R&D, which is around $950 billion. This wide gap explains why many Indian scientists, engineers, and researchers leave the country for better opportunities abroad—what we call brain drain. It also explains why India lags behind in inventions and discoveries. Without strong investment in education and research, true development is very difficult.

But in many societies like mine, we still do not value education enough. We praise those who have money, but we often ignore those with knowledge and ideas. This thinking must change. One clear proof of this problem is how poorly private school teachers are paid. These teachers shape the minds of future generations, yet they receive the least. This shows how little we value human capital. I will write more about this serious issue in another piece, but this must change.

We have many natural gifts—like medicinal plants, forests, and fertile land. But we lack the trained people to study them or turn them into useful products. That is why we remain poor, even though our land is rich.

To grow, we must change our mindset. We must start respecting education. We must invest in human resource development. We need to train people not just for jobs, but for leadership, creativity, and innovation. Money comes from ideas—and ideas come from knowledge.

Countries with gold can still be poor. But countries that build strong human capital will rise—even without natural resources. The future belongs to those who value learning, professionalism, and people. That is the path our society must take if we want to move forward.