Why do rich and poor countries coexist? The answer to this question cannot be summed up in a few words or presented in just one way. Contemporary economics is not the right perspective either; instead, we need to take a look at history to shed light on this issue.

Romain Wacziarg, professor of economics at the University of California at Los Angeles (UCLA), focused on these issues in his presentation, “Historical Barriers to the Wealth of Nations,” based on his research. He gave this presentation at the 8th NCID Research Workshop, organized by the Navarra Center for International Development (NCID) of the Institute for Culture and Society at the University of Navarra and by the Ramón Areces Foundation, where the event took place on April 4-5, 2019.

According to Wacziarg, history reveals why some countries develop more than others. He argues that identifying these causes involves knowing how far back to go in time. In his opinion, it is necessary to look beyond phenomena such as the Industrial Revolution in England or European colonization of America and Africa. For him, some development disparities can be explained starting from human beings’ first migrations and technological advances.

Learning from other nations’ experiences

"The entire history of modernity does not adequately explain why rich and poor countries co-occur," he said. There are different factors that unite or separate countries and create what Wacziarg calls "cultural distance," which is principally made up of geographical, linguistic and genetic factors.

He argues that sharing culture helps countries that have historically been related exchange positive values, aiding a similar development trajectory. However, cultural affinity can also be negative since wars and violence tend to intensify among members of the same community and culture. "People fight more with each other than with those from distant cultures," Wacziarg said.

In spite of this, he emphasized that these "historical barriers" are not definitive and can be overcome. To overcome them, and despite the difficulty involved, the researcher proposes applying the correct policies by learning from other nations’ experiences and adapting the means necessary to carry out innovations that aid advancement. The challenge is also in seeing the glass half empty or, as Wacziarg sees it, half full.

Finally, the speaker explained that history determines, at best, the development of nations at a rate of about 50%. "Societies decide the other 50% with their capacity to evolve and leave the past behind," he concluded.