Final answer:
The world isn’t uniformly wealthy due to structural barriers, uneven foreign investment, and the challenges of capital accumulation. Disparities persist even with known economic growth principles, as nations face unique social, economic, and political hurdles.
Step-by-step explanation:
The question of why the entire world isn't wealthy, despite understanding the mechanisms that drive economic growth, is complex and multifaceted. One reason is structural barriers inherent in different countries which cannot be simply removed or applied uniformly. The factors contributing to a nation's wealth include political stability, access to education and healthcare, robust legal systems, and the ability to enforce contracts and property rights.
Another aspect is foreign investment, which doesn't flow evenly across the globe. Regions with instability, corruption, or a lack of infrastructure may struggle to attract the investment needed to fuel growth. Additionally, there's a critical minimum threshold of capital accumulation necessary to make impactful investments in physical and human capital, which poor countries often fall below.
Even if low-income countries experience rapid growth, disparities may remain significant due to the head start of wealthier nations and the diminishing returns of catch-up growth as economies evolve. Thus, while the principles of prosperity may be widely known, their practical application can be impeded by a range of economic, social, and political challenges.