Lit.Org - a community for readers and writers Advanced Search
 




Average Rating
0.00

(0 votes)

You must login to vote

By Sam Vaknin
Author of "Malignant Self Love - Narcissism Revisited"

Macedonia has consistently ranked lowest in Europe in a variety of economic dimensions: from FDI to productivity. Its endemic poverty is the inevitable outcome of multiple factors: its corrupt and incompetent political elite; rent-seeking businessmen; primitive banking system; bankrupt education system, and so on. But, one important factor usually goes unmentioned: Macedonia is landlocked, it lacks access to the sea.

In April 1998, John Luke Gallup and Jeffrey Sachs, published a seminal study titled "Geography and Economic Growth". The two eminent development economists concluded that "location and climate have large effects on income levels and income growth through their effects on transport costs, disease burdens, and agricultural productivity."

Even more crucially, geographical constraints seem to affect economic policymaking. Thus "populations that are located far from coasts and navigable rivers and that thus face large transport costs for international trade, as well as of populations in tropical regions of high disease burden" are automatically disadvantaged. To these we must add the effects of inferior natural endowments and the impact of lack of access to natural resources (such as water, or oil) on growth.

As Irene Botosaru points out in another paper titled "Geography, Demography, Trade, and Economic Growth", geographical determinism is again in fashion among economists. Her recommendations:

(Landlocked countries) "should export more manufacturing goods rather than agricultural raw materials ... (and) would profit from improved political relations with their transshipping partners, from improved information and physical infrastructure, as well as from increased population density in urban areas and in areas close to the border with transshipping countries."

In other words, good relations with Greece should be the cornerstone of Macedonia's economic policies. The current jingoism is not only ridiculous, coming from a tiny nation, but it is also detrimental to economic growth and future prosperity.

All told, lacking access to sea lanes or large rivers "shaves" 0.7-1 percent off GDP growth every year. As these percentages accumulate, poverty is the outcome. till, what's new? Centuries ago, Adam Smith, wrote in "the Wealth of Nations":

""As by means of water-carriage a more extensive market is opened to every sort of industry than what land-carriage alone can afford it, so it is upon the sea-coast. that industry of every kind. begins. and it is. not till a long time that those improvements extend themselves to the inland parts of the country."

===================================

Author Bio

Sam Vaknin ( http://samvak.tripod.com ) is the author of Malignant Self Love - Narcissism Revisited and After the Rain - How the West Lost the East.

He served as a columnist for Central Europe Review, Global Politician, PopMatters, eBookWeb , and Bellaonline, and as a United Press International (UPI) Senior Business Correspondent. He was the editor of mental health and Central East Europe categories in The Open Directory and Suite101.

Visit Sam's Web site at http://samvak.tripod.com



Related Items

Comments

The following comments are for "Landlocked Countries and Growth"
by samvak





Add Your Comment

You Must be a member to post comments and ratings. If you are NOT already a member, signup now it only takes a few seconds!

All Fields are required

Commenting Guidelines:
  • All comments must be about the writing. Non-related comments will be deleted.
  • Flaming, derogatory or messages attacking other members well be deleted.
  • Adult/Sexual comments or messages will be deleted.
  • All subjects MUST be PG. No cursing in subjects.
  • All comments must follow the sites posting guidelines.
The purpose of commenting on Lit.Org is to help writers improve their writing. Please post constructive feedback to help the author improve their work.


Username:
Password:
Subject:
Comment:





Login:
Password: