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Effective Transformation - 7 Countries that Went from Poor to Richest

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Nika Chitadze, Professor of the IBSU, Director of the Center for International Studies 
19.10.21 21:00
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The most powerful countries in the world today once struggled with extreme poverty and financial crisis. However, after making effective decisions and taking other measures, they have been able to rise from poverty and today they are implementing an exemplary financial or social system. Many people even dream of living there because of the affordable education and sound financial as well as health care system that many do not have today.
 
1. Norway
 
One of the richest Scandinavian countries has experienced a difficult period in the past. In 19th-century Norway, people lived in very poor conditions, subsisting mainly on fishing and farming.
In the 20th century, the government decided to develop hydropower, which eventually created new jobs and led to GDP growth. Even after World War II, Norway did not suffer much - it received funding from the United States.
 
Norway received a lucky ticket in 1969 for its significant oil reserves in the North Sea. Since the rise in oil prices in the 1970s, Norway’s GDP has also risen and today the country has a high standard of living for the state.
 
2. Spain
 
Spain suffered a severe civil war in the 1930s. The country was ruled by dictator Francisco Franco, during whose rule the country's economy shrank significantly for decades. The years 1940-50 were exceptionally difficult for the country. Spain's borders were closed, imports were banned, leading to a large deficit and currency devaluation. In 1959, the economy became liberalized. Industrialization began and tourism flourished. The era of dictatorship ended in 1975 and in 1986 Spain joined the European Union.
 
3. Luxembourg
 
The tiny state, one of the richest in the world, had a difficult past. In the 19th century, about 80% of the population lived in poor conditions and was engaged only in agriculture. Lots of people were emigrating.
 
However, that all changed when stockpiles of iron ore were discovered. The steel industry began to develop, mines and factories were built. Eventually, Luxembourg became one of the leading steel producers in Europe. Lots of jobs were created. Other fields, such as the banking and advanced manufacturing industries, also developed actively in the 1960s. Today, this small European country is one of the richest in the world, with a GDP of $ 68.50 billion by the end of the year.
 
4. Switzerland
 
This European country has one of the highest living standards on the continent today, but it was once the lowest. Due to its mountainous position, the level of development in Switzerland was very low and difficult to develop.
 
Economic growth began in the 19th century, especially with tourism and banking. Another asset beneficial to the country is the well-known policy of neutrality. This allowed the country to avoid participating in two world wars. Today, Switzerland's position is very strong in the banking and arms export systems.
 
5. Ireland
 
In the early 1990s, GDP per capita in Ireland was only $ 14,000. The country has struggled with low economic growth, unemployment, and inflation. People lived in poor conditions. The negative period ended in the late 2000s when the "Celtic Tiger" period began.
 
From 1995 to 2007, the Irish economy flourished. Average annual growth rates reached 9.4% from 1995 to 2000, while GDP growth was 229%. This period has come thanks to foreign investment, EU membership, and subsidies.
In addition, the 2008 financial crisis affected the country's economy. However, thanks to increased foreign investment and consumer spending, it is successful. Today Ireland is an attractive place to do business.
 
6. South Korea
 
South Korea went through a civil war in the 1950s and was under Japanese occupation. When the war ended, the first five-year plan was implemented in 1962, which led to rapid industrialization. This is the period of the emergence of Samsung and LG. As a result, the steel and electronics industries developed, creating a high economic level.
 
7. Saudi Arabia
 
In 1932, Saudi Arabia was one of the poorest countries in the world. Its economy was entirely dependent on agriculture and the income of pilgrims. But since 1938 everything has changed dramatically - oil supplies were discovered that year. In 1973, when the price of oil rose, the country became rich. Although prices have fallen and Saudi Arabia has had to pay off some foreign debts, its citizens are still living in good conditions.