From Switzerland To Singapore: 7 Countries That Used To Be Poor But Are Now Rich
Stories of going from poverty to wealth never fail to inspire, do they? To see an individual come from nothing and then go on to build an empire can give a lot of motivation to those who strive to be successful in life.?
Would you believe, if we tell you that even countries can have rags-to-riches stories ? The wealthiest nations in the world weren't always prosperous. Some of them were so poor that they had to overcome major economic crisis to become what they are today.?
Here¡¯s a list of 7 countries that turned their destiny around to become the world¡¯s wealthiest countries. Scroll!
1. Luxembourg
Luxembourg, currently boasting the third-highest GDP per capita globally, has a diversified economy built on banking, steel, and advanced manufacturing. However, its journey from poverty to affluence began in the early 19th century when around 80% of its population relied on agriculture, leading to widespread hardship. A significant exodus occurred, with a third of the population emigrating, mainly to the USA.
The discovery of iron ore reserves in the mid-19th century catalyzed Luxembourg's transformation, leading to the emergence of a thriving steel industry by the century's end. Despite challenges during the world wars, the steel industry flourished throughout the 20th century. Luxembourg further expanded into banking and advanced manufacturing sectors in the 1960s, propelling its economy to remarkable prosperity.
2. Switzerland
Switzerland, renowned for its wealth and economic prosperity was once a poor nation, almost 150 years ago. Hindered by mountainous terrain and primitive industry, many of its rural population had emigrated to escape poverty. However, in the late 19th century, industrialization, bolstered by favorable economic policies, began transforming the economy, alongside burgeoning banking and tourism sectors.
Switzerland's neutrality during the world wars allowed it to avoid devastation, enabling the nation to profit from arms exports and banking. Transitioning from an industrial to a service-based economy in the 1950s, Switzerland now generates 74% of its GDP from services, 25% from industry, and 1% from agriculture.?
3. Norway
Norway, with a high GDP per capita and substantial oil fund per citizen, ranks among the world's wealthiest nations. However, its history tells of agricultural and fishing-based hardships in the 19th century, followed by economic development through hydroelectric power in the early 20th century. Despite setbacks during the Great Depression and World War II, Norway rapidly recovered, aided by US funding. The discovery of oil reserves in 1969 led to significant economic growth, fueling the establishment of a renowned welfare state.
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4. South Korea
Korea, devastated by Japanese occupation and the Korean War, experienced a transformative economic turnaround under military rule led by General Park Chung-hee. Initiated in 1962, South Korea's first Five Year Plan spurred rapid industrialization, earning it the title "the Miracle on the Han River." With conglomerates like Samsung and LG receiving substantial support, the country's steel and electronics industries flourished, leading to remarkable economic growth throughout the 1960s and 1970s. By 1993, South Korea had transitioned into a developed nation. Today, it boasts a GDP per capita of around $32,305 (?25.4k), significantly higher than North Korea's, and surpassing that of several other countries.
5. Singapore
Singapore, upon gaining independence in 1965, faced poverty and high unemployment. Prime Minister Lee Kuan Yew implemented reforms that transformed the city-state, focusing on education, combating corruption, and attracting foreign investment. These efforts led to double-digit economic growth and improved living standards by the 1970s.?
By the time Lee stepped down in 1990, Singapore had evolved into the modern, prosperous city-state he envisioned. Today, Singapore boasts one of the world's most open and business-friendly economies, with a GDP per capita of around $78,144 (?61.4k), surpassing that of the UK, the US, and Germany.
6. Saudi Arabia
Saudi Arabia, initially one of the poorest nations globally upon its founding in 1932, relied on income from the Hajj pilgrimage and modest agriculture. The discovery of vast oil reserves in 1938 transformed its fortunes, with significant oil production beginning in the late 1940s. The 1973 oil crisis further enriched the economy, despite fluctuations in oil prices. While aiming to diversify its economy through initiatives like Saudi Vision 2030, Saudi Arabia remains heavily reliant on oil revenue, making over $200 billion (?157bn) in oil revenues last year, with a GDP per capita of approximately $30,436 (?23.9k).
7. Ireland
In the early 1990s, Ireland was one of Europe's poorest countries, facing high unemployment and economic stagnation. However, the country experienced a remarkable turnaround known as the "Celtic Tiger" period from the mid-1990s to the late 2000s. This era saw rapid economic growth fueled by factors such as an educated workforce and favorable business conditions, attracting significant foreign investment.
Unemployment dropped sharply, living standards improved, and GDP per capita soared. The boom came to an abrupt end in 2008 with the global financial crisis, leading to a severe recession and the need for an EU and IMF bailout.?
Despite this setback, Ireland has rebounded strongly in recent years, becoming one of Europe's fastest-growing economies once again, driven by foreign investment and increased consumer spending.
