Saturday, October 22, 2011

In accordance with the first article we read in class by Sokoloff and Engerman, there is an article featured on the site www.economist.com that talks heavily on the history and importance of sugar trade. Late 17th century Barbados, for example, received huge amounts of income from their cane plantations. From all the glorification of having mineral rich land, however, came some downfalls. As we saw in class, factor endowments and quality of natural resources were not sufficient or adequate explanations for the rise of the U.S. as a leading economic force throughout history. For those countries such as Barbados and Jamaica, they faced extreme climates that soon took tolls on the public. Mosquito-infested swamps, hurricanes, earthquakes, and diseases such as yellow fever all affected the growth of these societies. Also, the article takes into consideration that these countries consumed extreme amounts of rum because of it's easy access, resulting in large amounts of deaths. Perhaps the effects of factor endowments and natural resources/environment can be looked at in more detail than what was noted in Sokoloff and Engerman's article.

The entire article can be found here
http://www.economist.com/node/21525808

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