Eli5: How do countries get out of bad economic situations? Like if a country has no resources, money, etc. how can they get out of that situation?

Question

Eli5: How do countries get out of bad economic situations? Like if a country has no resources, money, etc. how can they get out of that situation?

In: Economics

Answer 1

Every country has some kind of resource. The least is their population.

There are multiple ways to better your economic situation, the most popular is taking on debt.

In Africa for example, many countries take out loans from china to improve infrastructure or buy machinery to exploit previously inaccessible resources.
You can also sell Resources more directly instead of letting them produce revenue. Like North Korea selling their population into slavery or South America, which sold their natural resources to western nations for exploitation.

If none of these ways or alternatives work, economic collapse is ineviteable. The Government will collapse, but a new one will form. Population will nearly always generate “revenue”, only mismanagement leads to economic misfortune on a country scale.