@ Second theme (4 hours)

The Economies of the World Countries: their endowment with natural

resources and population development
1. The endowment with resources as a factor determining the comparative
advantages and Productive Powers of the Nations-States.
2. From Physical Geography to the development of Human Capital: an MIT
approach by Acemoglu, Johnson, and Robinson (2001) in ”The Colonial Origins
of Comparative Development: An Empirical Investigation”
3. Population dynamics in the World Countries as a prerequisite for developing
human capital and COMPETITIVE ADVANTAGES.
4. Comparative approach to the human capital of the developed and
developing countries: historical background and contemporary state.
Case Study: The approaches of Adam Smith (1776)
and Gunar Murdal (1968) applied to our Benchmark Case Study (2021) 1
Economy of the World States, Dr. Elina Benea-Popușoi, February 2021
 @ The ’substance’ of the economic system:
from Comparative to Competitive Advantages
through Capital / Productive Powers
3 COMPONENTS OF A COUNTRY’S ECONOMIC SYSTEM:
 ITS SPIRIT: MOTIVES OF THE ECONOMIC ACTIVITY;
 ITS FORM: GAME RULES;
 ITS SUBSTANCE: PRODUCTION FACTORS USED TO PRODUCE AND TRANSFORM THE GOODS ↴
COUNTRY’s COMPARATIVE ADVANTAGES → CAPITAL / PRODUCTIVE POWERS of the Country →
Country’s COMPETITIVE ADVANTAGES
The issue of NATION’s CAPITAL→ ?sustainability of the NATIONAL WEALTH
Endowment with resources → International specialization of the country → The
sectorial structure & the infrastructure of the national economy → Country’s
economic competitiveness.
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Economy of the World States, Dr. Elina Benea-Popușoi, February 2021
 @ Figure 2.1 The Capital / Productive Powers of a Nation-State
Friedrich List (y. 1841) components of the Productive Powers: Forms of capital
“The power of nature which they [individuals/nations] can make use of”:
 Geographical peculiarities (e.g. „Insular Supremacy” of Great Britain compared to
„Capital of nature”
the continental powers)
 Climate peculiarities „more or less favourable to bodily and mental exertion”
 Development of the „manufactures and commerce with agriculture” „Capital of matter”,
 Inventions implying:
 „Stability and continuity of work” Knowledge capital;
 Labour division combined with „union and balance of various productive powers Intellectual capital;
on behalf of a common production” Creative capital
“The social order which renders their [individuals`] energy fruitful” (e.g. Social capital,
abolition of slavery & of vassalage; hereditability of the throne; public control of including
state administration, legislation) Relationship capital
“The spirit which animates the individuals”, comprising religion, education, “Capital of mind”,
science, art (e.g. the Christian religion, monogamy, liberty of thought and including
conscience) Emotional capital
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Economy of the World States, Dr. Elina Benea-Popușoi, February 2021
Figure 2.2. Porter „diamond” – conditions for developing competitive
advantages.
Firm Strategy &
Rivalry
Incidental
events
Demand
Conditions

Factor (Input)
Conditions

State
policy

Related & Supporting

Industries

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Economy of the World States, Dr. Elina Benea-Popușoi, February 2021
@ Figure 2.3. Contribution of natural resources to GDP
(selected countries), WB data

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Economy of the World States, Dr. Elina Benea-Popușoi, February 2021
@Figure 2.4. Freshwater indicators (selected countries), WB data

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Economy of the World States, Dr. Elina Benea-Popușoi, February 2021
Figure 2.5.0. Reference Map of the World Countries

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Economy of the World States, Dr. Elina Benea-Popușoi, February 2021
Figure 2.5.1. Ecological Footprint per Capita 2019, global ha consumption per capita

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Economy of the World States, Dr. Elina Benea-Popușoi, February 2021
 Figure 2.5.2. Organic Production 2015, hectares: the total certified organic
production, including organic agriculture, wildculture, forestry and aquaculture

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Economy of the World States, Dr. Elina Benea-Popușoi, February 2021
Figure 2.5.3. CO₂ Emissions per capita 2016

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Economy of the World States, Dr. Elina Benea-Popușoi, February 2021
@ The approaches of:
Adam Smith (England, 1776): „Inquiry into the Nature and Causes of
the Wealth of Nations” &
Gunar Murdal (Nobel Prize Laureate, Sweden, 1968): „The Asian
Drama : Inquiry into the Nature and Causes of the Poverty of Nations”
applied to the Benchmark Case Study (2020) of our course→
FROM BELGIUM AND TANZANIA TO R. MOLDOVA: ”BUCURIA” PRODUCT REVEALING
THE COMPETITIVENESS OF THE COUNTRIES INVOLVED IN.
https://www.cocoaforschools.be/
https://www.youtube.com/watch?v=btgSpuyW5H8&feature=youtu.be
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Economy of the World States, Dr. Elina Benea-Popușoi, February 2021