Geography Flashcards
what is the role of tropical conditions on development?
- high incidence of tropical diseases
- climate: droughts, excessive rains
- poor soils
- more natural disasters (another card)
what is adverse geography and its role on development?
adverse = unfavourable
= landlocked countries: no access to sea (ports)
= inaccessible terrain: deserts, forests, mountains
role: high transport costs
what does Collier argue about the role of neighbouring countries and landlocked countries on development?
- if resource abundant and landlocked = growth
- if resource scarce and not landlocked = growth (ports)
- if resource scarce and landlocked and growing neighbours = growth from spillover
- if resource scarce and landlocked and stagnant neighbours = very slow growth
According to Collier, what can landlocked countries do to stimulate development?
- improve trade and economic policy (better spillover)
- improve transport infrastructure (better spillover)
- become haven for region (center for politically sensitive goods e.g. financial services)
- don’t be airlocked or e-locked
- encourage remittances
- transparent and investor-friendly environment (attract investments)
- attract aid
- rural development
According to Sachs, what is the main cause of underdevelopment?
- multiple aspects of geography (rejects Acemoglu mono-causal explanation)
- unfavourable climate and soil (low agri productivity)
- low population density
- high disease
- also politics and history though, but mainly geography
According to Ezrow et al., what is the main cause of underdevelopment?
colonialism + geography
what is the effect of natural disasters on development?
- more frequent in tropical areas
- higher impact on countries with low HDI and income
- consequences: destruction, death, displacement
- consequences on economy: (disrupted trade, production, informal sector)
- need to invest in preparedness and response ability (but little funding and vicious recurrent disasters)
what is the effect of natural resources on development?
potential for income and wealth but in practice can hinder dev
what is the resource curse theory
potential but hinders in practice
- evidence: resource rich places are among poorest and asian tigers had little natural resources
1. little spending on education due to easy income (no need to invest in human capital)
2. dutch disease: presence of resources -> neglect of other sectors
3. with point resources: need to import machinery and tech -> dependence on MNCs -> little local employment and local econ
4. volatile int prices
5. rent seeking (captured by state) -> corruption and rentier state (patronage)
what are the 2 types of natural resources
point resources (geographically concentrated) (mines, oil) vs diffuse natural resources (forests) renewable vs non-renewable
why is a rentier state problematic?
rentier state -> buys supporters -> invest in unprofitable projects -> corruption -> little accountability -> no health or edu investment -> heavy borrowing due to high confidence -> system collapse at price drop
How can one prevent the resource curse theory/pitfalls of depending heavily on natural resources?
- diversify the economy
- develop industries for processing
- natural resource fund to stabilize income
- transparent tax regime for resource industry
- > all need strong, capable state and long-term, good policies (importance of institutions)
what is resource nationalism?
policy change of ownership of industry, property rights (private -> public)
strengthen role of state-owned enterprises
renegotiate contract with MNCs
taxation and fiscal measures
