Many studies have demonstrated the idea that institutions are the main factor of economic development because empirical evidence points to strong institutions being able to determine large growth of GDP per capita. Although the characteristics of strong institutions can be described as the potential fundamental cause of economic growth, the effects of geography and materials available to different certain regions have a huge hand in properly developing a society economically and allowing for further growth. The resources of the countries heavily depend on the raw materials available to each region and the kinds of animals they are able to domesticate. This is where the argument circulates around in which geography is a large determinant of whether a civilization or society can prosper in a certain area or not.
In the Acemeglu, Johnson and Robinson article, “Institutions as a Fundamental Cause of Long Term Growth”, the authors emphasize how institutions are the main determinant of economic development because stronger institutions allow for more growth in education, security, and health. To observe whether strong institutions determine economic growth it is important to mention the characteristics of a strong institution that allows for fast growth. Strong institutions are able to enforce property rights, a fair judiciary, efficient bureaucracies, intellectual property rights, corporation government bankruptcy laws, and democracy (e.g. “(Lecture 13)”). Going in depth
Jared Diamond discusses the reasons why geographical and environmental factors lead to a more rapid progression of certain civilizations throughout history. The book Guns, Germs and Steel portrays an argument that due to some societies’ access to an area witch contains sufficient amounts of wildlife and climates that are easily inhabitable, these societies developed into more advanced ways of living much easier and also earlier than societies who lacked these geographical attributes. These beneficial geographical attributes promoted the growth of technological improvements in weapons, religion, and farming.
Physical geography plays a significant part in the development and success of different people and countries. A country's location can greatly affect how that country does economically. For example, country’s near water typically do better economically than landlocked because water unlocks more trade opportunities. However, some landlocked countries can still do well because of it’s neighboring countries that may be located near water. Another example is the type of environment you’re located in. People in countries with a more agricultural based environment will live very differently than a country surrounded by desert that may focus on oil or minerals. Yet, some countries, like the U.S, are so big that they have many different climates, ecosystems, and environments; allowing for many different types of ways to make money, trade, and live.
In the video “Guns, Germs, and Steel: Episode 3”, the relationship between geography and history is examined and, to no surprise, it is extremely strong. In fact, it may arguably be the strongest determining factor of a nation’s success. It is also important to note that geography is one of the most important factors in shaping a nation’s culture and way of life. This means that a nation who is successful in their own geography may not be as successful in one that is very different from what they are used to. Europe’s dominance over Africa is a fantastic example of this.
Economic Development: Growth is associated with structural, social change and change in the important institutions of the economy.
The book by Jared Diamond “Guns, Germs and Steel” outlines a brief history, of how countries and groups of people became more prosperous and powerful through history. The book is focused on Diamond’s theory, of “Guns, Germs and Steel”; he argues that guns, germs and steel are the three main reasons for different countries rise to power. That being said the theory also places a tremendous amount of weight on the geographical attributes that certain groups of people had at their disposal, which allow for technological advances. Through this concept, Diamond in his theory attempts to demonstrate that prosperous groups of people through out history is not based on sheer intelligence and the different intellectual levels of people. He then looks at the advantages that different regions where given based initially on their geography. Such that China was unified much earlier in its history then Europe, due to there are less geographic barriers in China than Europe, therefore making communication easier between regions in China. Diamonds theory does go on to explain many of the worlds power differences
In the book Guns, Germs, and Steel: The Fates of Human Societies, by Jared Diamond, discusses in detail how material success was brought to some societies more easily than others. Diamond believes that geographic location was a key role in the success of these societal structures, however, it is also thought that a society 's failure could be attributed to the geography as well. Along with geography, food production, immunity, animal domestication, and the production and use of steel were all tied together to reach societal success.
The importance of geography in terms on economic development has been a long disputed topic, yet it is the most obvious explanation to the yawning gaps between several different economies, like the situation between Western Europe and Africa, in which the1820 average GDP per capita in Western Europe was about three times that in Africa; then by 1992, the average was more than thirteen times as high (Gallup, Mellinger, Sachs 1999 p.176). By saying that there is an apparent relationship between geography and economic development, it is meant that the geography of an economy, like location, climate, and natural resources, strongly influences different aspects of the economy, like trade and institution, which, in turn, determine the
Guns, Germs, and Steel by Jared Diamond is a thought-provoking book that looks for an explanation as to why some societies are more substantially successful than others. Diamond explains, this is a study of history’s “haves” and “have nots.” The author makes many compelling arguments that indicates the difference between human societies is not because of differences with the intelligence of different people, but the differences in their environments. Diamond argues Eurasia has always been more materially successful because the Eurasian land mass and environment has obvious natural advantages. He supports his argument by explaining three major points,there were more varieties of grains for large scale farming, more species of large animals could
In the grand scheme of things, geography can provide the natural resources and land required to sustain citizenry, but Geography can also play a less visible role as a political engine driving the development of political systems. Preexisting landscapes and natural borders lend weighty influence over determining the types of political systems that thrive within national bounds. Man-made alterations to existing environments also play a role in shaping political
For a long time there has been a controversial and mind boggling question asked by many. That question is; How should we measure the development of civilization? In other words, why were some nations rich and prosperous and others poor. There were many theories that it could be because of resources, technology, the government and politics, location or landscape, Specialization, beliefs and religion, trade, Economy/wealth, or philosophy. During expeditions in different parts of the world, one place that stood out was New Guinea as an undeveloped country, in which the people live similarly to the Amazonians. With many years of research, not many of these apply to the reasons why certain countries/nations and New Guinea do not evolve or thrive
Immediately after reading the prologue of guns, germs, and steel I was able to comprehend the intended message that the author created. As the book went from chapter to chapter it was understandable that the author strongly believed that one society can excel farther than another based on that society's geography. The author used charts and diagrams to introduce different beliefs and concepts to explain his hypothesis. Some major themes from the beginning to the end of the book that contributed to the author’s belief was that geography worked as a disadvantage for some societies causing unuseful agriculture, failed societies caused by geography led to the unsuccessful development of the hunter-gatherer lifestyle, and communities with lots
For any civilization to develop, it must not only be able to feed its people but also be affordable and keep up with rising population. Without a stable source of food and or livestock no nation could support an industrial evolution or even standard growth. For
England is a good example of how a “credible” government that protects rights can help boost economic growth (Hubbard and O’Brien 335). The economy wasn’t growing before the Industrial Revolution but afterwards the country that benefited from it was England with it being freed from the Kings rule. From then on the British government was in charge and the people trusted they would protect their property rights amongst other things that would allow their economy to prosper. The trust the British government was able to gain from the people by enforcing the rule of law therefore they were successful in economic growth. Another great example of economic growth would be India. After India gained its independence its economy rapidly began to grow this was because the government began to give people their freedom and they began to back away from centralized government. Although their economic growth might not continue the progress they made in such a quick time has helped millions of people that were in poverty (Hubbard and O’Brien 307). Asia and Africa are other countries amongst the ones that their economic growth is slow. Due to Asia and Africa’s poor growth rate this has greatly affected the people as well. The citizens have found themselves in poverty and people die more of diseases. Argentina is a country whose gross domestic product per capita is similar to that of other countries around the world but whose economic growth is slow (Hubbard and O’Brien 336). This only proves that per-capita gross domestic product does not always mean their economy is successful to all countries. However, income and wealth aren’t all that determine economic
Where people lived decided whether or not they would prosper. Even the most resourceful people will only get so far if they do not have any resources to work with. The Europeans thrived and flourished in their climate and geographic location, and there was nothing others could do to make up for the limitations nature imposed on its population. Pure environmental luck was the determining factor of a regions
This can be measured by the following formula; Per capita nominal GDP = Nominal GDP / Population, Per capita real GDP = Real GDP / Population. Seven factors determine economic growth. Natural resources such as land, mineral deposits, waterways; climatic conditions provide an essential foundation to economic growth. Combined with the other resources of capital, labor and enterprises, natural resources can be developed and organized to increase the productive capacity if the nation. Consequently the quality and size of the labor force is a major determinant of economic growth. Education and vocational training are essential the growth potential of a nation. The promotion of education and job training schemes increase the knowledge, skills and flexibility of the workforce that contributes to potentially higher levels of productivity and efficiency. Whether from natural increase or immigration population growth can cause a higher level of economic growth. An increasing population requires increased public spending on housing, education and other social needs while businesses expectations of