GEOGRAPHIC FACTORS ON ECONOMIC DEVELOPMENT 1

What economically makes or breaks a country?

Mirjan S. Hipolito (2019-30037)

Graduate Certificate in ASEAN Studies

University of the Philippines Open University

GEOGRAPHIC FACTORS ON ECONOMIC DEVELOPMENT 2

They say that geographical factors have the tendency to make or break a country; location,

climate, soil, vegetation, and flora and fauna to name a few determines a country’s output a given

period. ASEAN occupies less than 3% of the world’s total land area yet it has positioned itself as

one of the most resource-rich and export-extensive regions in the world making up for the 25%

of the world’s total rice production, one of the largest producers of tin in the international market

(Indonesia and Malaysia), and a leading manufacturing export of hard disk drive (Singapore) to

name a few. It is classified into two major geographic divisions namely: Mainland and Maritime

Southeast Asia, and several other smaller Sub-ASEAN blocs such as BIMP-EAGA, IMT-GT,

and Greater Mekong Sub-Region-- all of which are strategically formed in the account of their

proximity with one another.

Mainland Southeast Asia is composed of Cambodia, Lao PDR, Myanmar, Thailand, and

Vietnam. It is heavily reliant on agriculture, all attributed to the presence of vast arable lands and

major rivers like the Irrawaddy, Chindwin, Salween, Chao Phraya, Song Hong, Song De, and of

course the Mekong River. Maritime Southeast Asia on the other hand is of “archipelagic” in

nature. Bounded by seas and oceans, it plays a strategic location in maritime navigation;

transportation, sea lanes, and trade routes. Not to mention, it is home to the two of the most

important trade routes that opened Southeast Asia to the rest of the world: the Strait of Melaka

and the Sunda Strait. It is made up of Brunei Darussalam, Indonesia, Malaysia, the Philippines,

and Singapore.
GEOGRAPHIC FACTORS ON ECONOMIC DEVELOPMENT 3

The geographic composition of a country speaks so much of its prevalent industries and

its economy in general but it does not account for the whole picture. Take for example,

Singapore. A land area of less than 700 sq. km., with only 1.5% of which is arable, no oil

reserves, no extensive biodiversity, and no 4, 350 km river like the Mekong so to speak, yet it is

considered as one of the Top 5 countries with highest GDP per capita (IMF, 2018) in the world

and one of the four Tiger Economies of Asia. Myanmar, on the other hand, is a resource-rich

country. Home to Southeast Asia’s highest elevation Hkakabo Razi, with four major rivers,

expansive arable lands with fluvisol, a soil type most suitable for paddy rice cultivation, yet,

despite of all these resources, it is still one of the poorest countries in Southeast Asia, next to

Cambodia.

With the data provided, it can be implied that while geographic factors are important in a

nation’s economic development, they are not the only determining factor in economic success.

According to Gupta (2005), institutional and legal reforms have significant impacts in the

economy. Institutional stability ensures that a country’s wealth is maximized to the best of every

citizen’s well-being. In economics, natural resources are considered as ‘intensifiers’ which make

or break a country. Rich countries with good institution and proper utilization of their resources

becomes richer while poor countries with bad institutions where only a chosen few benefits from

the utilization of resources becomes poorer. When only the top 1% have the access to a country’s

resources, uneven distribution of wealth happens thus broadening the wealth gap among citizens

leading to a higher poverty rate. High poverty rate means more budget allocation for poverty and
GEOGRAPHIC FACTORS ON ECONOMIC DEVELOPMENT 4

hunger alleviation and lesser budgets for national defense, educational reforms, healthcare

services and transportation-- all of these are important drivers for a more prosperous economy.

REFERENCES:

Avjit Gupta (2005). “The Physical Geography of Southeast Asia.” Oxford University Press

Mahiwo, S., et al., (2013). ASEAN Studies I, UP Open University

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