Theory and Political Economy

Every country is unique, but, it is feasible to ascertain many elements attributable to the development records of countries (Goldin, 2019). Many economic scholars have tried to link the configurations of resource endowments made possible by geographical, historical, cultural, or other attributes relating to that particular country.


In the aspect of the geographical location, I choose Austria and Ukraine because the former is landlocked while the latter has a coastline on the Black sea and the two countries represent a disparity in comparative advantage in terms of their location. Thus, a country like Ukraine has an accessible opportunity to sea trade operations or nearby wide marketplaces, which have lesser transportation costs as compared to Austria. This aspect enables it to outperform Austria because it is distant and landlocked.

Secondly, the historical aspect talks about the drives and nature of colonialism and settlement that fashioned long-term impacts on their economic growth. In this regard, I choose Congo because it has many dysfunctional institutions due to its colonial history with Belgium (Marchal, 2017). Congo, was left with restricted property entitlements and lesser controls against the government power to commit resources to the colonizers. On the other hand is Canada, which has a successful outcome through colonialism. Canada's legacy of colonialism steered to efforts that saw development in agriculture, industry among other sectors. Regarding this theory, the impact of colonization preceded the utilitarian misfortune, which enriched emerging countries and impoverished rich countries (Acemoglu & Robinson, 2010).

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Acemoglu, D., & Robinson, J. (2010). The role of institutions in growth and development. Leadership and growth, 135.

Goldin, I. (2019). Why Do Some Countries Develop and Others Not?. In Development in Turbulent Times (pp. 13-30). Springer, Cham.

Marchal, J. (2017). Lord Leverhulme's ghosts: colonial exploitation in the Congo. Verso Books.

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