Colder Countries are Richer than the Hotter Ones? | Why are Cold Countries Richer?

 



Summary Of Article

  • There seems to be a connection between a country's temperature and its economic development, with colder countries generally being more prosperous.
  • Studies have shown an inverse relationship between temperature and GDP per capita, indicating that colder countries tend to have higher GDP per capita.
  • Researchers are investigating if there's a hidden third factor influencing this relationship or if it's purely coincidental.
  • Historically, colder regions have been associated with disciplined populations and constant water availability, which could contribute to economic development.
  • Cold climates may enhance work capacity and industrial focus, leading to economic prosperity.
  • While many cold countries are rich, there are exceptions like Singapore and UAE, which are prosperous despite being warm.
  • Historically, warmer regions were associated with advanced civilizations due to better agricultural production.
  • In today's world, economic development depends more on industrialization, education, and innovation rather than climate.
  • While climate may have played a role historically, modern economic development is influenced by various factors beyond temperature.

 


Welcome to Historical Horizons. If we talk about countries like America, Canada, Great Britain, Switzerland, Finland and Germany, what comes to your mind? Off course your answer will be that all these countries are prosperous and developed. On the other hand, when countries like Sudan, Egypt, Libya, Nigeria, Brazil, Bangladesh and Pakistan are mentioned, we definitely think of a poor and under developed country.

But friends, they have one more thing in common. That is, most of the prosperous and developed countries are cold while the poor countries are mostly found in the warm regions of the world. Technically, the development of a country is directly related to factors like government stability, natural resources, credit rating, infrastructure etc.

But friends, at this time, apparently, the development of a country also seems closely related to the climate and temperature of that country. So is it just a coincidence that rich and developed countries are cold while poor and developing countries are hot or is there a real connection between climate and temperature to economic development? Did historically the developed civilizations also belong to the cold regions? Let's try to find out the answers to these questions.

An Apparent Relationship Between Temperature and Economic Growth

Currently, we have data on economic development and temperature of most countries in the world, so their correlation can be easily known. An important measure to measure the economic development of a country is the country's GDP per capita.

GDP per capita shows a country's economic output per person. It also indirectly determines the prosperity of a nation Cold countries usually have the large per capita GDP in the world Ireland, Norway, Switzerland, Iceland and Denmark are extremely cold countries and their per capita GDP is very high While Luxembourg, most of the US and Australia are also considered relatively cold.

If we talk about Australia, its two main and richest cities, Sydney and Melbourne, experience the coldest temperatures. On the other hand, Darwin, despite its abundant natural resources, is considered a poor city in Australia Darwin's average temperature is higher than Sydney and Melbourne. A study conducted in 2020 compared the per capita GDP and average temperature of 98 countries in the world and the result shows that there is an inverse or negative relationship between temperature and GDP per capita.

That is, countries with higher average temperatures have lower GDP per capita and countries with lower average temperatures have higher GDP per capita. According to this study, if the average temperature of a country is 1 degree higher than another country the per capita GDP of this country will be 725 dollars less than the other country.

Moreover, through this study and all available data, it was also estimated that GDP per capita depends on temperature by about 9%, which seems to be quite significant. On the other hand, all other factors including government stability, natural resources, credit rating, infrastructure etc accounts for about 91%. But friends, the question arises here, can all these data be random and unrelated and is it possible that there is a third factor that exists between temperature and GDP per capita? For example, what would you say if someone said that research shows that when air conditioners sale increases, the number of people who die from drowning increases? Of course, your answer will be that air conditioner sale have nothing to do with drowning people.

Indeed it is, but there is a third factor hidden in this connection that is common between air conditioner sale and drowning deaths and that is, the summer season means, air conditioners sell more in summer and the number of people bathing in swimming pools or beaches increases in summer due to which the number of drowning deaths in summer also increases. So, indirectly, when the sale of air conditioners increases, the number of people drowning in water also increases.

So guys, is there a hidden third factor between temperature and GDP per capita of a country? So far, several researchers have investigated the direct relationship between a country's temperature and its GDP per capita, or any third factor that exists between this relationship on technical grounds.

Let us examine the various factors that may have contributed to the development of colder countries.

Tough and Disciplined People

People living in cold regions are said to be tough and disciplined. Apparently, this seems to be true because historically, people used to plan in advance to survive in extreme cold People in extremely cold countries could not survive the harsh winters unless they planned ahead to store food, build good shelters, and conserve other resources.

So it can be said that the people of cold regions were always organized and even today that planning and discipline can be seen in their lives and perhaps this is the secret of their progress. Constant and moderate availability of water One thing that has dominated human development over the centuries is water.

Whether it is agriculture or waterborne trade, water has always been of utmost importance. In hot regions, the flow of water in rivers can increase or decrease up to 80 times throughout the year. This is because the rainy season or monsoons are widespread in hot climates. Floods prove to be very destructive in such areas. Whereas in colder countries, rainfall is regular and moderate, which keeps the water level in rivers and canals quite stable. As a result, waterway trade in such areas can be transported more consistently and efficiently.

Warm Weather and Human Work Capacity

Friends, a person's ability to work can decrease in hot weather. According to a study, when the temperature rises above 27 degrees Celsius, a person's ability to work begins to decrease by two to four percent per degree. A reduction in individual work capacity affects overall domestic production and livelihoods.

Here is a big advantage for countries with cold climates. Getting rid of a cold is relatively easy. The use of warm clothes, and the construction of buildings in a certain way can prevent the extremes of cold. In hot weather, using air conditioners can control the temperature inside a house or building but it is not possible to control the outdoor temperature and hot climate. Moreover, some hot countries cannot afford air conditioners usage on a large scale due to lack of resources.

Therefore, with limited resources, man can control the hot climate only to a certain extent and thus the productivity of hot countries remains relatively low.

Industrial Production

Crops cannot be grown on a large scale in extreme cold regions and moreover, there are some cold countries where natural resources such as oil and gas reserves do not exist. Therefore, such countries focus all their attention on industrial production and technology.

As a result, cooler countries become richer and more prosperous due to their industrial exports, better infrastructure and technology services.

Examples of Hot and Rich Countries

Friends, while we have countless examples of cold rich countries and hot poor countries, there are also counter examples like Singapore, Qatar, the United Arab Emirates and Saudi Arabia, which are still very rich and developed despite being warm. The only reason why Arab countries are rich is because of their abundant natural resources.

While Singapore is truly a country that has emerged as a strong economic country despite the lack of natural resources. On the other hand, North Korea is a poor country despite being very cold, reason being their political setup. In addition, Russia is a country that is very cold and rich in natural resources, but its per capita GDP is not so significant.

Ancient Civilizations and Climates

If we look at history, most civilizations such as Egypt, Persia, the civilizations around the Indus River, even the ancient Maya civilization, were actually concentrated in hot areas. At that time, the wealth of a country was determined by the production of food. Because a large number of crops and plants grow better and more abundantly in warmer climates these civilizations of warmer regions were considered more advanced due to greater agricultural production.

Conclusion

So friends, why did this change happen now and why are cold countries more developed than hot ones? This is because economic development in the modern world does not depend on how much food a country can produce, but on industrial development, education, research and innovation The provision of technology, defence and services has become more important and valuable As time has changed, the needs of the world have changed and the factors that determine countries' prosperity and GDP have also changed.

Therefore, the development of countries does not directly depend on weather or temperature, but regardless of the weather, every country has the potential to develop within its limited resources.

 So friends, how did you like this interesting and unique Article?

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