Long run causes of comparative development physical

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Long-Run Causes of Comparative DevelopmentPhysical geographyoSome say that this has little impact on development, though landlocked status is certainly an impediment to growth Institutional quality - colonial and post-colonial (Institutions have been defined as the “rules of the game” of economic development by Nobel laureate Douglass North)oUnfavourable institutions favoured extraction over production incentivesColonial legacy – pre-colonial and comparative advantageoMost developing countries were once coloniesEvolution and timing of European developmentoEarlier colonisation generally involved more plunder and less active production than later colonisation, which was accompanied by more knowledge and advanced technologyInequality and Human capital
oNorth Americans enjoyed greater egalitarianism in general than elsewhereoWhere inequality was extreme there was less investment in human capitalType of colonial regimeKEY POINT:oThere are multiple paths to economic developmentoForces that protect narrow elites in ways that limit access of the broader population to opportunities for advancement are major obstacles to successful economic development. If institutions are highly resistant to attempts at reform, this helps clarify why development is so challenging.Conclusion:Conditions prevailing in a developing nation when European colonialism began largely shaped the subsequent history of inequality and institutional development in the nationPoor institutions have generally proved very resistant to efforts at reformConcomitant and complementary human capital, technological, social, and institutional changes must take place if long-term economic growth is to be realised.Unless there is some major structural, attitudinal, and institutional reform in the world economy, one that accommodates the rising aspirations and rewards the outstanding performances of individual developing nations, particularly the least developed countries, internal economic and social transformation within the developing world may be insufficient.Developing countries cannot assume without further investigation that patterning their policies and institutions on those of developed countries will always provide the fastest route to successful economic development

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