Economic Themes (2015) 53 (3) 1, 314-330


Miomir Jakšić

Abstract: Deifferent destinies of particular conutries and not-existence of warranted economic and social prosperity are explained by two paradigms: geographical and institutional one. Geographical paradigm insists upon significance of phisical geography, climate, ecology, that shape technology and individual behaviour. Institutional paradigm central role attributes to institutions which promote investment in human, physical capital and technology. Those two approaches have their roots in 1. Traditional society theory (Asiatic mode of production theory): differences in traditional societies of each conntry explain their different growth rates and level of economic development, and 2. World system theory: only countries that escaped colonial status have chance to develop.

Keywords:  Asiatic mode of production; Institutions; Geographical deviation; Modern world system

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