Economic development as domestication of a geoclimatic zone: The historic East-West divide and the current trends towards its closure
Lucy Badalian
Victor Krivorotov
This paper introduces a new concept – economic development through domestication of a geoclimatic zone, enabled by a special adaptation to its unique conditions. Development is thus seen not as a matter of choice. It is induced (or not) by demographic growth when the older zone and its unique economy fail to absorb and feed the growing masses. The paper shows that this new understanding explains many mysteries of development and international trade. Also, it allows for reconciliation of many feuding theories and models, bringing together, under one roof, the neoclassical school (Ricardo to Krugman), institutionalists (Veblen to North) and the long-waves adherents (Schumpeter to Freeman). We show the usefulness of this new concept in forecasting, using as an example China, which doesn’t fit any extant model of development.
JEL Codes: F02, F2, F4, F47, O11, O12, O13, O14, O15, N1, N2, L0, L1Keywords :
development, international trade, energy, demography, globalisation, East-West or North-South divide, resource shortages, economy of small series.
• Introduction
— China and West – the dissimilarity in power-use as the point of divergence
— The trends pointing to the future – the Object-Oriented Design (OOD)
— East and West – the two dissimilar ways of using one’s environment for supporting the demographic growth. The path forward may lie through their merging
• The Western path
— The exogenous limits of oil-based economy and what it portends for our future
— West and East – power versus precision
— The ecological catastrophes of the past
— The inner logic of the switch to a new resource
— The formation of the next economy, based on a totally new resource
• The Chinese way
— East and West: developing in parallel despite differences in means
— The military driven development of West versus the agrarian pursuits of East
— The final frontier – the ongoing merging of Eastern and Western practices or the path to the future through the past
• BIBLIOGRAPHY