Ricardo Hausmann's Article, Prisoners Of Geography

In Ricardo Hausmann’s article, “Prisoners of Geography,” he discusses the effects of geography on the economic stability of a certain area. After several detailed explanations, Hausmann comes to the conclusion that geography is the deciding factor in the development of a region’s economy with no regards to the people’s desires. The author’s belief that citizens are bound and chained to their geography and the effects the environment has on their economy despite their efforts is an accurate description of the correlation between location and economy.
At the beginning of the article, Hausmann introduces the main two factors of economic growth according to Adam Smith and Joseph Schumpeter, which are the country’s accessibility to markets and its technological progress. The author states that trade must be an obtainable necessity for a growing economy. Hausmann displays the higher costs of shipping goods across land in comparison to by sea. For example, he shows readers through accurate statistics that it costs much more to ship to the landlocked Central African Republic …show more content…
The research and development required to advance modern technology can only begin in certain areas of the globe due to the availability of specific natural resources. The author supports this claim by stating that these undeveloped countries can only produce what they need to subside off of, whereas developed countries can sell their surplus after receiving their necessities. Further evidence shows that the lack of a dynamic market in these undeveloped countries exists due to the fact that their lack of technology forces a higher input for a lower output compared to their developed counterparts. When comparing Africa to the United States, anyone can see the substantial value technology has on the economy, which is why Hausmann’s outlook on technology in regards to the economy is