Why Are Some Countries Rich and Others Poor?

Introduction

• The central question of economics: Why are some countries rich and others poor?
• Adam Smith's The Wealth of Nations considered the first proper economics book.
• Gaps between countries existed, but the disparity has grown significantly over time.

Historical Income Disparities

• As late as 1700, Western Europe was only 2.5 times richer than Africa in terms of per capita income.
• By 2001, Western Europe was nearly 13 times richer than Africa.
• Importance of