The Geography of Underdevelopment

This book examines why the differences in comparative economic development across the world have a geographical pattern. It argues that there is a missing component in the geography versus institutions debate, namely the role of culture and its impact either directly on development or indirectly through the establishment of institutions. The impact of geographical features such as climate and natural resources is studied both across countries and within political boundaries and is supplemented by the work of social scientists in other disciplines on culture and cultural evolution. By examining the direct effects of geography on standards of living as well as its indirect effects via culture and institutions, a case is made to tie all three factors into a cohesive explanation for underdevelopment. This book will appeal to readers interested in wider perspectives on under-development that go beyond explanations resting on standard neo-classical economic theory. A seminal paper in the field allows for an indirect effect of geography by arguing that those countries whose climates were more suited to settlement by white Europeans developed more participatory and democratic institutions whereas those countries in which Europeans had higher mortality rates due to diseases to which they had no immunity (the effect of an inhospitable climate), were exploited and thus the institutions that developed were reflective of that legacy (colonialism). Thus, the second part of the book will visit the issues posed above, by examining the case of the United States and drawing parallels between regional disparities in the U.S. and global disparities between developing and industrialized countries. The U.S. is an excellent example of a geographically (and climatically) diverse area where there was considerable disparity amongst the states in income per capita 130 years ago. The book will explore what economists and historians have written, about the reasons for the divergence in income in the pre-1940 South and then build the case for a comparison of the South to contemporary developing countries. Using empirical data on labour productivity and climate, evidence will be discussed which shows that both geography (location and climate) as well as institutions played significant roles in shaping the economic successes of U.S. states, although the effects of these variables have dissipated over time. However, the question of how institutions themselves are formed is still not satisfactorily answered. This is an issue that economists have consistently struggled with since it involves notions of culture which are not clearly defined in economic theory. Economists have also ignored the contributions of other disciplines, especially anthropology and sociology where more well-defined notions of culture exist. The third part of the book will make a case for the link between geography, culture and institutions. Two questions are asked. First, does geogr