Is there a relationship between a country's economic progress and its geographical location?

Answer 1

For some countries, evidently yes;

for some others, possibly;

and for others, possibly not.

FUNDAMENTALS TO CONSIDER

A country's economic progress depends on

1. the country's economic basis

2. management of its economy and resources

3. the market.

Therefore the challenges are

1. determining what is actually meant by the expression 'economic progress', and
2. selecting or creating appropriate measures or indicators of that progress.

Economic progress (EP) is often measured by 'growth', with GNP (gross national product) or adjusted gross domestic product (GDP) being commonly used as indicators. On this basis, a country's geographical location is just one of many factors which influence EP. The other factors include, but are not limited to: human, capital and technical resources; national infrastructure; and governmental factors e.g. policy, taxation and legal controls.

But is national 'growth' really a wise and sound measure of economic progress?

If national growth is the sole criterion, then social inequalities and widening economic differences between 'the haves and have nots' may easily be overlooked. Is a country with increasing 'national wealth' but decreasing standards of living for a vast and growing underclass really demonstrating 'economic progress'?

This can be illustrated by the 'economic progress' of Equatorial Guinea, second only to Azerbaijan in GDP rankings, yet its 'wealth' is concentrated in the hands of only a few. Yet Equatorial Guinea also ranks as 'worst in the world' in an international report on global human rights issues.

Given that a country is a nation of individuals, economic progress needs to be reflected, as far as possible, in the individual lives of all its citizens and residents. Achieving a national economy that provides a satisfactory and stable means of life for all those within its domain is surely a better sign of economic progress than the endless quest for annual increases in national wealth.

After all, resources are finite, and the quest for ever-increasing wealth must inevitably result in "I win, you lose" situations, adversely affecting global economies, and countries and individuals.

In today's world, with its international transport, international trading opportunities and global e-commerce, geographic locality is not always a significant factor in a country's ability to maintain economic strength. Or, as Brata (2009), [based on Nordhaus (2006)] put it, "geography is not the only determinant of economic performance."

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THE ECONOMIC PROGRESS of a country should be measured and evaluated, not by its national wealth but by the individual lives and lifestyles of its inhabitants. A simple nomadic animal-herding community with a livestock count into the thousands and ample grazing resources, yet doing no measurable trading (in GNP/GDP terms), is infinitely richer than a country that has high GDP, a bankrupt economy and/or starving millions within its borders.

However, the question is about a country's economic progress, not that of its individual constituent members. And, of course, in many countries geography is fundamental to the economy, with location and climate playing vital roles. Some countries have great Natural Resources due to geographical location. But whether a country is able to access and manage and exploit those resources is another matter. Economic progress depends on managing resources, not just on possessing them.

Similarly, there are countries whose economies are not particularly dependent on geographic location. In Switzerland, for example, a country with few natural resources, 73% of its workforce are in service-related industries, not particularly related to Switzerland's geographical location, yet it has a very high per-capita standard of living, and one of the most stable economies in the world. In Switzerland's case, good economic judgement, rather than geographic location, has been a major factor in its success if we measure economic success in terms of economic stability and the economic welfare of its citizens.

"... real economic development has to benefit everyone." ~Chibundu Onuzo, author/writer (The Guardian newspaper, September 3, 2012)

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IN SUMMARY, economic progress should be seen in terms of increasing national welfare, rather than in terms of increasing national wealth. And better welfare is not necessarily dependent on geographic location, especially within the context of globalization and its potential for all humanity, regardless of nationality, ethnicity, culture or social standing.

In view of the clear relationship between 'management of resources' and 'economic progress', any relationship between geographic location and economic progress should be seen more as a possible indirect relationship rather than as being a direct causal relationship.