Wars and Atrocities (1900-1925) map.
Another implication of the weak institutions is what happens when it comes
to stability and security
Geography and the Poverty Trap
- War poverty; poverty war
- Tropical regions (poor soil, disease), remote locations (large transportation
costs), land-locked (transportation costs, border costs) . Landlocked countries
tend to do less well than countries with access to maritime trade routes.
- Given the fundamental geographic inequality, won’t the third world always
be poor? (some people question if Africa is doomed to be poor)
- The idea of the poverty trap – Jeffery Sachs discusses this. In his work, he
says in order to escape the poverty trap (when they don’t even have enough
resources to start growing anything, any economy, any agriculture) – you
need access to very simple things like water, shelter, food, education – that’s
the type of aid you need because once they have this, they’ll be able to escape
the poverty trap)
Natural Disasters (UN Global Environment outlook 2000) - Sub Saharan
Africa is number one with natural disasters in the world. Here seems to be a
correlation between natural disasters, and the locations of underdevelopment
– so it might not be a coincidence. E.g., Haiti.
- Haiti and Chile went through similar earthquakes. But the infrastructure
in Chile is much better. The issue of natural resources when it comes to
number of casualties might not be about atural diasters but also about the
human conditions, the institutions etc and that brings us back to where we
Salvaging the Modernization Theory
- The theory is valid but the countries failed to follow its prescription and
hence flopped. The ‘blame’ is with local conditions in the LDC’s.
- Economic policies
- Natural Environment
- Thy opted for ISI rather than ELI…or these countries institutions are
wrong...Or modernization theory is correct but there are too many wars...OR
modernization theory is correct but there’s way too many natural disasters,