Why poor countries stay poor and rich get richer?

It is very alarming to look at living conditions in most of the African countries. The living standarts had been going down and down for the last decades despite the fact that many countries send financial aid on yearly basis. At the same time, countries such as England, France and Germany mostly never receive aid and keep expanding their economy and living standarts. Why is it so?

From my perspective during huge economic expansion of the 70s and 80s, when the oil prices were skyrocketing, European banks had a huge number of money that they didn't know what to do with. Such collosal amount of money would cause high rates of inflation if it would reach domestic markets or markets of United States. So what European banks decided to do is to give away that money to African countries, so they will be able to rebuild their Economy. More and more money from Saudi Arabian and Kuweit oil has been invested into growth and development of African nations.

At some point, most of the capital of European banks was allocated in Africa. What banks didn't expect is that at some point Arab nations would want their money back, when OPEC countries started for asking their money European banks didn't have sufficient funds to satisfy money demand, which resulted a Fiancial Panic. More and more people in oil exporting countries became aware that they cannot get their money back, which put a huge pressure on African countries that were borrowing at the beginning to pay back their debpts as soon as possible.

This pressure in African countries, resulted them borrowing from other US banks to pay for their older debts, which actually worsened their position. To some extend it was good for European banks, because now instead of asking money they could ask for licenses to extract resources such as diamonds from Zimbabwe and oil from Nigeria.

This licenses resulted huge profits for European companies, however lack of funds for the development of African economy. So since that Africa kept getting poor, Western world getting richer.




DECLAIMER: The information about might not be true or might be a fiction, I just express my point of view on things.