Summary: Chapt 4

Read the summary and the most important questions on chapt 4

• 1 I The Idea of Clinical Economics

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• Which countries had reached the $2,000 per capita income threshold by 1940?

  - By 1940, countries above the $2,000 per capita income threshold included the United States, Canada, Europe, the Soviet Union, Australia, New Zealand, Japan, and the Southern Cone of South America
  - Most of the world's countries had not reached this income level by then
  - The threshold symbolized a certain level of economic development and prosperity

• How did proximity to Britain influence the timing of reaching $2,000 per capita income?

  - The closer a European country was to Britain, the earlier it typically reached $2,000 per capita income
  - European countries reached this income level at varying times based on their distance from Britain
  - The Netherlands was among the earliest European countries to achieve this threshold
  - Balkan states were among the latest European countries to reach $2,000 per capita income

• What are some reasons why some countries developed while others stayed poor, according to McCord and Sachs (2013)?

  - Climate zone mattered, with development coming earliest in temperate regions like the Southern Cone of South America
  - Development reached coastal countries first and then landlocked countries like Afghanistan, Bolivia, and Mongolia much later
  - Geopolitics, such as domination by European or Asian imperial powers, affected industrialization in countries in Africa, South Asia, Southeast Asia, and Northeast Asia
  - Disease burden mattered as regions with heavy disease burdens were held back in development

• What were the three main points outlined regarding modern economic growth as discussed in the text?

  - Modern economic growth was a diffusion process starting in Britain and spreading worldwide
  - Patterns of diffusion are discernible and not a mystery
  - Various factors have contributed to growth over the past 250 years, with their relative importance changing as technologies evolve

• Why do many places mistakenly believe that economic growth depends solely on factors like "economic freedom," "inclusive institutions," or "controlling corruption"?

  - Some places oversimplify by attributing economic growth to single factors like economic freedom, inclusive institutions, or controlling corruption
  - While these factors may play a role, they are not the sole nor main contributors to development historically or globally
  - Individual factors alone do not explain developmental patterns or help predict future development accurately

• How is the complexity of the global economic system compared to in the text?

  - The complexity of the global economic system is likened to the complexity of the human body
  - Economic transformation is a complex process where many things can go wrong, similar to how the human body can face various issues

• How did disease burden impact the development of regions according to the text?

  - Regions with heavy disease burdens were held back in development as it depends on a healthy, educated population
  - In the United States, areas like the South with diseases like hookworm, malaria, and yellow fever lagged behind the North

• What barriers to development did malaria pose historically in Africa according to the text?

  - Malaria served as a significant barrier to development in Africa in the past
  - Recent advances in malaria prevention and treatment technologies are close to eliminating this barrier for the first time in history

• What analogy is made in the text to explain the complexity of the global economic system?

  - The complexity of the global economic system is compared to the complexity of the human body
  - Economic transformation, like the human body, is prone to various issues due to its intricate nature

• Why did some countries develop while others stayed poor?

  - Explanation of disease as punishment or imbalance failed to grasp complexity
  - Horrific diseases scientifically explained by tiny genetic changes
  - Diseases caused by single-site polymorphism or environmental factors
  - Modern medicine diagnoses specific causes, offers tailored prescriptions
  - Effective development practitioners diagnose accurately for each country's conditions