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Geography - Coggle Diagram
Geography
Natural resources: political effects
Myopia = due to easy money patronage uses rent to buy support
RENT: UNEARNED OR EXCESS INCOME ABOVE THE NORMAL
Corruption captured by beneficiary interest groups
Rentner states
Conflict
BUT: Norway
Natural resources economic effects :
Commadity prices are volatile
Prebisch - Singer Hypothesis: overtime commodity prices decline compared to manufactured goods
Dutch disease: selling commadities pushes up exchange rate making it harder for the other industries
No spillover effects to the other parts of the economy
Male-dominated
Tropical and landlocked countries
transportation and coordination costs
Infertile lands or they are not used properly
Extrem weather (natural disasters) = nobody wants to invest
Europe
crops and mammals useful for development
Euroasia same horizontal line they could transport the techniques
biological advantage
Reverse of fortunes
USA has overtaken Latam but not Central-America
Negative correlation (countries that used to be rich are poor now)
Oil
Natural resources are harmful
institutions are already weak
resources are controlled by nationalized firms
when they generate large state controlled rents
BUT: landlocked countries like Switzerland or Singapore
challanges are not permament
Cuba and malaria
Local variations where geography is fixed
South Korea and electircity
Lack of convergence
Globalized trade