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« Ta Prohm | Main | Psychology of Freedom »

April 01, 2011

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TFF


Sam,

Welcome Home! Wonderful pictures- can't wait to see more......I can't wait to travel to that part of the world some day soon.....

Ed Sheehy

Let me dispute your thesis, Sam. Mexico is more prosperous than Guatemala with a GDP per head three times that of its southern neighbor. Is that because Mexico shares a Protestant work ethic with the United States? Or is it that by being close to a leading economic power the US, there are positive externalities which benefit Mexico. Both economic and technological exchanges between neighboring states will be more frequent and more intensive than those more remote countries. Trade across neighbors breeds common conventions for contracting, credit and both business etiquette as well as expectations of common ethics. These customary ways of doing business together increase trade and so help create mutual prosperity. The larger culture of the nations involved need not be shared and might even be nominally antagonistic, e.g. the GDP per head for Jordan (an Arab State without oil) is materially higher than Yemen; Jordan may be said to benefit from the proximity and consequent exchanges with its more prosperous neighbor Israel without having any ideological sympathy.

Sam

Ed,
Excellent points! And I will agree that economic development is a big, complex process, not easily reduced to a single factor. Indeed, I would also say that what might be significant in one case, say Vietnam, might be insignificant in another, say Mexico...
But, there are some differences in the Vietnam/China relationship, compared to those that you raise.
First, time frame. The Chinese influence on Vietnam was early and persistent, beginning in the late first century BCE and lasting, in terms of formal political domination, until the tenth century CE. A millennium of Chinese control and influence that was fundamentally transformative of Vietnamese culture and, more importantly from my point of view, political structures. Not sure those other cases stack up in quite that way.
Second, the key for me is institutions. Confucianism in Vietnam was used to authorize and legitimate a relatively centralized Legalist state. And it is the persistence of that political structure, more so than some more subjective notion of "culture," that matters most over time.
I like your allusion to Weber and his protestant ethic argument. He has always baffled me: for much of his book on Chinese religion he is attuned to the structural context of Confucian thought, but at critical moments he veers off to embrace a more diffuse sense of beliefs (i.e. that Confucianism devalued merchant activity) which, I think, ultimately, is less useful in terms of historical explanation (after all, there has always been a very strong commercial element of Chinese societies, regardless of Confucianism's principled objection...).
Yes, we might descend into a kind of circularity: how do we untangle the relationship between beliefs and structures? But my political science background draws me more toward structure...

Ed Sheehy

There is undoubtedly support for a crucial point in your thesis that a strong political center and formal legal system encourage economic development and trade. Having standard weights and measures, contract terms, banking and commercial practices leads to a predictability which is necessary to minimize business risks.

Research into this area would be interesting to discern how and why certain developing economies advance (e.g Ghana) and others struggle (e.g. The Congo) Would I were in grad school.

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