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Date Created: 04/02/14
Geography 6 World Regions 2414 1508 Jared Diamond Office Hours Bunch 1251 Tuesdays 12 1240 and 34pm Lecture 1 The Wealth of Nations economists term What makes some countries rich and others poor Huge difference in income between rich and poor countries Rich countries have an averages GDP of 400 times of the poorest countries Maybe poor countries with answers by analyzing this to become rich National difference in wealth ZambiaNetherlands Good Trip in 2004 Difference was interesting Netherlands long winter and short summer no worthwhile natural resources because the country is flat so no dams Depend on energy with imported fossil fuels 13 of the country is below the sea level Been invaded many times by Germany Zambia has advantages unlike other countries in the Africa Does not need to by any fossil fuels because it gets hydroelectric power in the Zambezi river by dams it provides all the energy in the grid and exports it to other countries near it Rich in minerals like copper and warm through out the year so able to grow more than one crop a year Peaceful stable and democratic and never has had a civil war or war or been invaded and has had peaceful elections Income between the nations Netherlands has a 100x more than in Zambia 30000 300 respectively institutions Becoming rich or poor depends on the institutions in the country Lack of corruption honesty Rule of law Unimpeded flow of capital in and out of the country Openness to trade export and import anywhere in the world Inflation well controlled Stable then good otherwise undermines economy Openly currency exchange Effectiveness of government Private property rights protected worthwhile to invest in something Educational investment in human capital do they invest in it Contracts are enforced can you count of the agreements that are made Are assassinations frequent high risk of murder All of these encourage people to work because their earning are safe Examples neighboring countries or divided countries one has good institutions and the other one has bad institutions ie North and South Korea two halves of the same peninsula but south Korea is so much richer due to the 0 East and West Germany west became so much richer and east Germany still suffers due to the o Hispaniola island south of Florida West is Haiti and the East by Dominican Republic Haiti has bad institutions while Dominican republic is much richer even though it is a developing country Political institutions 2 Haiti was a slave economy 2 Dominicans work for themselves 2 Both had horrible dictatorships and when this ended Dominicans held a democracy and the president does step done 2 Result of history Good institutions provide evidence of why some countries are rich and other countries are poor Some economist think that good institutions are overwhelming reason of wealth and poverty But it is incomplete other countries as well that need to be addressed Discussing today why this is incomplete Nothing about the origins of good institutions why did some countries have it and others don39t motivate the citizen Why is it difficult to make countries to adopt the good institutions Geography also plays a big role in why countries are rich and poor 0 Diseases 0 Land locked Non geographic variabes resources and colonialism Economies just done grow they can also collapse 0 Many reasons for this not just opposite of why they grow Proximate vs Ultimate Cause Good institutions are proximate cause of wealth 0 Reasons why they arose in the places they did connections between country Ultimate cause Origins of good institutions Where did they came from 13000 years ago no one had good complex institutions 0 hunter gathers had simple institutions had low population densities often nomadic no money no kings o no taxes complex societies and good institutions were depended on densely populated stagnant people farming society agriculture was really important developed about 11000 years ago began producing surpluses could be used to feed some people who were not producing food began inventing pottery and melting copper food surpluses are need for state government and are needed to make tools and writing prerequisite for developing a market economy and educated literate citizens development of agriculture require wild plants and animals that need to be domesticated very few have been domesticated few or none of these were developed in the places that are now the bread baskets of agriculture OOOO developed in small areas like the so called fertile crescent nine small parts of the world 0 middles east china Mexico west Africa and the Andes 0 places that developed the earliest from those nine home lands agriculture then spread all across the world 0 nine parts that had plants that could be domesticated o wheat in fertile crescent soybean in china 0 got a head start in developing complex institutions different regions of agriculture has had an affect on the development of state government long history of state agriculture have on the average higher income per person and gross national product length of the history of agriculture accounts for half of the reason why countries are rich and poor good institutions require complex institutions which grow out of agriculture and state governments Pictures in slide 1 Richer countries are together and poor countries are next to each other 2 Light bulbs difference of how wealth looks like based on city lights It reflects incomer per person and number of people 3 Cell phones and noise levels in the united states are a measure of the wealth 0 light blubs and noise levels dirty way to tell wealth levels and population density TERM PAPER Number of people times noise per person can we do a simple analysis creates in unites states is the difference in population density 4 Netherlands vs Zambia even though more populated in Zambia but more lights in Netherlands due to wealth o agriculture mechanized vs hand hoes 0 modern hospitals vs clinics 0 open air markets difference in wealth is evident by paved streets and buildings Tropical location two main reasons why they are poorer Agriculture infertile sends and agricultural pests fungus and molds causes heavy losses of crops Diseases malaria protozoans parasites do not confer life time immunity 0 Malaria is the most important infectious diseases in the world after aids Human tragedy what does it have to do with the poverty in Zambia People in the tropics die early so smaller lifespan Netherlands have a 80 year lifespan So doesn39t make sense to train the Zambians in like engineering because by the time they finish training they only work like 11 years while in the Netherlands work for like 50 years Often get sick and don39t die so not getting a 100 of their time Economic affect high mortality of children and parents expect that so they have a high birth rate to compensate the death of their children Low ratio of productive adults vs children non productive Also due to having many babies making women not being able to work because they are pregnant most of the time Hopeful because once you know the reasons you can invest in them Cant get rich by concentrating in agriculture so found other ways to compensate the economy Controlled program for the whole world to cure TB malaria and AIDS will cost 24Biion while the Three Gorges damn in China is costing 30 Billion dollars Temperate Location Are twice as rich as tropical locations near the equator Difference in agricultural productivity and access to healthcare Major reasons are that temperate zones are more fertile and public healthcare Cold winter kills most disease but have epidemic diseases are usually once in a lifetime Landlocked location Whether or not ships can deliver and take goods Land locked countries have to get them planes railroads and truck O O Cost at least 7 times higher then getting them shipped by sea So they do not have cheap way to get them in and out the goods Result is that Bolivia is the second poorest country in South America In Africa a lot of African countries are land locked reason why they are a poor continent Curse of natural resources An the average depending on natural resources makes the country poorer Lucky to be with out not want to be dependent on it Reasons O OOOOOO O Exportation Diseases Civil Wars Invitation for the elite to take control Finite amount Exploitation Corruption Raise prices and wages Reversal of Fortune Effects of colonialism Rich countries that were rich 500 years ago aren39t that rich anymore Extractive institutions to gain wealth from these wealthy agriculture countries in the 1500s legally corrupt government form the European side Now when they became independent still have the bad the extractive institutions are still their due to the colonialism of Europe Central America when Spanish arrived it was the richest part of central America in Guatemala 0 Costa rica Spanish people had to work themselves so today about five times richer than Guatemala Environmental Collapses Following paradox early agriculture and those that got a head start in developing complex institutions Iraq Iran Syria is that a different reversal of fortune due to environmental damage Live in a small rainfall area Countries that are rich don39t stay rich forever Good institutions stem for a long term history of agriculture food surplus market economy with gov democracy wiring metal Words Netherlands Zambia Agricultural productivity Hispaniola Proximate and ultimate causes Domestication Malaria Intro to class If had to ask a person one question with only a word answer asking when you born tells you about the life of the person and there life experiences And where you born living standards life expectancies income calorie intake access to medical care access to education and the possibility of being murdered Americans live In houses built by someone else most of our things by someone else low risk of being murdered because we are Americans All these differences are about the world geography and regions and why it has such enormous effects on our lives Human geography bio geography and physical geography Geography faded in the 50s because of a misconception that is was just memorizing countries and capitals Now coming back in the united states All the lectures given by Diamond will be breaks in lecture Everything at once Outlines for the lecture on ccle Midterm Exam on April 29 can make it up by submitting good questions two weeks prior consists of essays questions and specific questions over the lectures and you can bring in ideas from the readings Do well on midterm exam like an B and above will have the option to skip the final exam and do a paper on a subject you choose from the course Take subject that interests them and learn more about them 2414 1508 2414 1508
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