Why Poor Countries Get Stuck — The Poverty Trap #Shorts

Added: 2026-06-02

[00:00:00]Why do poor countries grow faster than rich ones? Diminishing returns. Adding a road to a country with no roads transforms it. Adding the thousandth highway to a country that already has 999 barely matters. So, poor countries should catch up. That's the convergence prediction. But many never do. They get stuck below a critical threshold of capital, a poverty trap, where saving is too low to overcome depreciation. The escape needs external help. Foreign aid, foreign investment, or one massive policy pushed to break through.