10 Worst Economies in the World

10 Worst Economies in the World

Forbes magazine has found out what the economy of developing the worst. The top ten losers included Ukraine, Armenia, Kyrgyzstan
 

$448. From 1970 to 2009, GDP per capita has tripled in Madagascar (adjusted for inflation), reaching, according to the UN, "colossal" $ 448. During the same time, GDP per capita in the nearby South Africa grew by more than 7 times - up to $ 5700.

A series of military coups, poor economic policies and continued growth of the population left Madagascar to remain in ruins, while other developing countries - South Africa, India and Brazil - rush forward. It is because of these artificial, man-made problems, Madagascar headed Forbes compiled the worst economies in the world ranking in 2011. Of course, there are more hopeless cases, such as Somalia. But among the countries for which the IMF has a relatively complete data, Madagascar, due to natural diversity is sometimes called the "eighth continent", stands a poor political leadership, corruption, poverty and lack of growth.

Compared to last year in the list of significant changes. Once outsiders, such as Ghana and Zimbabwe, have improved their economic legislation and leave the list, while Armenia and Jamaica were in the lower rows of the financial crisis. Other countries such as Madagascar and Nicaragua, have earned their positions due to inability to complete their governments.

Transparency International, Do not be surprised that 8 out of 10 countries with the worst economies in the world are in the bottom of the Corruption Perceptions Index Transparency International, and Guinea, Kyrgyzstan, and Venezuela are located at the very end of the list. Transparency International - "Corruption affects economic development - said the head of research projects Transparency International Robin Hodess - are affected by all indicators that reflect human development. Where governments are not working, the economy is not growing. "

To compile the annual ranking of the worst economies in the world the American Forbes estimated 177 countries on the average statistics for 3 years: GDP growth, inflation (including the IMF, 2012), per capita GDP and current account balance, which shows whether a country imports more than it exports.
 

 

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Madagascar

GDP per capita: $ 387
Inflation: 8.5%

Poor economic performance of Madagascar reflect internal political turmoil. After gaining independence from France in 1960, the country experienced a brief period of prosperity. But GDP per capita has to keep up with world figures from the early 70's, when the population began to grow faster than the economy.

Over the past two years, the retail price of rice has doubled in Madagascar. And before that the country has lost thousands of jobs in the textile sector, once in 2009, there was a military coup and the U.S. withdrew from the Madagascar of the Law on economic growth and trade opportunities in Africa, providing privileged access to their markets. According to the U.S. State Department, now a big part of the economy reduced to barter. And while the political situation does not improve, inflow of foreign investment on the island is not expected.
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Guinea

GDP per capita: $ 440
17% Inflation: 17%

The West African country has half the world's bauxite reserves are available, but does not attract investors. According to the U.S. State Department, economic development was constrained by poor roads, a recent (2008) and a military coup "government hostility towards investors." Alpha Conde, the election of president in 2010, it seems, diminished fear, and Abu Dhabi in conjunction with BHP Billiton to start Guinea $ 5-billion aluminum project.
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Ukraine

GDP per capita: $ 3483
10% Inflation: 10%

Country is rich in land and resources, and could be among the leaders on the European continent, but in fact behind the income even from countries such as Serbia and Bulgaria. The reason for that, according to U.S. Department of State, complex laws, poor corporate governance, weak protection of contracts and, especially, corruption.

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Jamaica 

GDP per capita: $ 5473
Inflation rate: 7%

Poverty rate has fallen in recent years, almost twice - up to 10%, and the literacy rate rose to 88%. But the crisis has hit hard on Jamaica: two years of GDP falls by 4% by the year 2015 promises to grow by only 3%. High inflation and constant current-account deficit does not bode islanders soon improve the quality of life.

 

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Venezuela

GDP per capita: $ 9886
32% Inflation: 32%

Serious illness of the dictator Hugo Chavez may bring relief to the unfortunate country that manages to keep people in poverty, despite untold natural riches. The only indicator of a healthy economy of Venezuela - a surplus current account balance. But inflation in the 32% GDP growth and the lack of demonstrated mismanagement of Hugo Chavez.

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Kyrgyzstan

GDP per capita: $ 943
Inflation: 12.6%

Transparency International - The Central Asian republic won 164 seats out of 178 countries on the Corruption Perceptions Index of Transparency International rating and suffer from unemployment at 11%. Rich in natural resources (except oil and gas, which must be imported) Kyrgyzstan faces challenges in attracting foreign capital in mining and metallurgical projects, because "local business conditions are very difficult for most companies."

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Swaziland

GDP per capita: $ 3109
Inflation: 7.3%

Because of the rapidly growing population and lack of employment, poverty in the African country is kept at above 60%, despite the rich agricultural areas, the export of sugar and an active tourist industry. More than 30 000 people in Swaziland to work in the garment industry, which contributed to the protectionist tariff policy, the U.S., while the global financial crisis and the growing South African Rand (currency of Swaziland is associated with it) does not spoil the demand.

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 Nicaragua

GDP per capita: $ 1197
Inflation rate: 9%

In a socialist dictator Daniel Ortega had plenty of time to turn the country into a paradise for workers. But per capita GDP in Nicaragua three times less than in neighboring El Salvador, and suggests that Ortega was not a suitable person for the job. Second among the poorest countries in the Western Hemisphere after Haiti, Nicaragua actively prevents foreign investment, and its citizens suffer from power cuts, water shortages and high energy costs that disproportionately hits the poor. Nearly half of Nicaraguans live below the poverty line, according to the World Bank.

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Iran 

GDP per capita: $ 5493
Inflation: 15%

Islamic Republic of Iran owns 10% of the world's identified oil reserves, according to the U.S. Energy Information Administration. But the country's economy, constrained internal control over important sectors of industry, international sanctions and poor leadership, develops at a rate of less than a third of the world's average level. In terms of GDP per capita ($ 5493) Iran is much closer to the war-ravaged Iraq than to the oil-rich Saudi Arabia and Kuwait. 

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Armenia 

GDP per capita: $ 2959
Inflation rate: 7%

Armenia's economy, which exists in large part by immigrant diaspora in 2009 fell by 15%. Projections for the future is not too rosy for the small republic, entirely dependent on Russia and Iran on the part of the energy. Per capita GDP is three times lower than in Turkey, while inflation reached 7%. As if that were not enough, Russia cut diamond exports, harming once a thriving manufacturing industry in Armenia.