Abstract
For the first time in history, almost all of the world's people are bound together in a global capitalist system. This momentous development forces us to think anew about the world economy. In the past, differences in policies across regions of the world resulted in vast differences in economic performance; in the future, policies are likely to be more similar. As a result, large parts of the developing world will narrow the income gap between themselves and richer nations. But this process of convergence, by itself, will go only so far. With or without markets, many developing countries will be left far behind. Adam Smith understood the limits of convergence, and the role that geography plays in defining those limits, better than many modern economists. He noted that sea-based trade is less expensive than overland trade, a fact that is still true despite the advent of railways, cars and air travel.
Recommended Citation
Sachs, Jeffrey D.
(1998)
"Projections and Perceptions Editorial Comment: The Limits of Convergence; Nature, Nurture, and Growth,"
The Geographical Bulletin: Vol. 40:
Iss.
1, Article 1.
Available at:
https://digitalcommons.kennesaw.edu/thegeographicalbulletin/vol40/iss1/1