1. Geography, Climate, and Natural Resources
San Francisco State University| Michael Bar

2. Question What role Geography, Climate, Natural resources
play in the economic fate of single countries?
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3. Location Matters
On average, countries located further away from the equator, have higher standard of living. Why?
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4. Relationship between Latitude and Income per Capita
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5. Geography
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6. Proximity to Sea Even today, ocean transport is the cheapest.
The fastest growth in trade occurred in China’s coastal regions.
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7. Regional Variation in Income and Access to the Sea
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8. Geographic Concentration and Spillovers
Being close to a rich country is an advantage because of spillovers of technology.
Bad news for sub-Saharan Africa.
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9. Geography’s Effect on Government
Europe – many countries
China – Unified from 221 B.C.
Why? Europe is separated by geographical barriers into several regions.
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10. Core Areas in Preindustrial Europe
Europe: many core areas of fertile land, separated by large areas of infertile land and natural barriers (e.g. mountain chains, English canal).
Europe in 1600 had 500 states, in 1900 had 25 states
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11. Core Areas in Preindustrial China
China: only 4 core fertile areas, connected with rivers and grand canal (since 400 B.C.). Easier to govern as a single unit.
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China unified since 221. B.C.

12. Large unified country vs. many independent states
Advantages of large unified country
Large market and gains from specialization
Unity, fewer wars.
Advantages of many independent states
Outside competition:
If taxes are high in one country, businesses move to the neighbor.
Harder to suppress innovation (Columbus vs. prohibition of sea exploration in 16th century China).
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13. Guns, Germs and Geography (Jared Diamond 1997)
Q. Why Eurasia was more advanced than Americas, Australia and Africa?
Eurasia had more animals and plants that can be domesticated:
Eurasia: cows, horses, pigs, sheep and goats.
Americas: llamas and alpacas.
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14. Llama
Alpaca
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15. Geographic location of Eurasia is east-west, which allows the spread of agricultural techniques and useful plant and animal species throughout a zone of relatively similar climates. For example, the chicken could spread from china to Europe. Geographic location of Americas is north-south.
Europeans were partially immune to some diseases: measles and smallpox (come from animals).
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16. Climate
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17. Climate and GDP per capita
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19. Climate and agricultural productivity
Rain – in tropical areas very sporadic.
Frost – slows the decay of organic material and keeps the land fertile. In tropical areas there is no frost and organic matter breaks down rapidly, which requires extensive use of fertilizer.
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21. Climate and disease
Malaria – In 2016, there were 216 million cases of malaria worldwide resulting in an estimated 445,000 to 731,000 deaths. Approximately 90% of both cases and deaths occurred in Africa.
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22. Malaria Ecology versus Incidence of Malaria
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24. Climate and human effort
People in hot climate cannot work hard because of overheating.
Air-conditioning, possible in some industries, problematic in agriculture.
Labor force (world) - by occupation:
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25. Natural Resources
Having a lot of natural resources does not guarantee faster growth or higher GDP/capita.
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29. “Resource curse”
Overconsumption: countries consume more than what can be sustained by their stock of resources.
Dutch disease – relying on natural resources can lead to underdevelopment of other sectors, if there are no linkages to industry.
Backward linkages - locally produced goods are used in resource extraction.
Forward linkages - the natural resources are used in local industries.
Politics: (1) big government sector, (2) civil wars.
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30. Why did Industrial Revolution Happen in England and not in China?
Location of coal: in China coal is located far from centers of population and economic activity.
Different geology of coal mines: in Britain the mines were flooded and required pumping, which lead to improvements in steam engine. In China, the mines needed ventilation, and this technology was not used elsewhere.
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