Reflection

a. The concept that I learned in this class that I believe will be the most useful and applicable to my understanding of the world would be Central Place Theory. Before this class, I had never known about, and probably had not even heard the words Central Place theory. This theory helps me understand why populations are drawn together through the market. It helps me understand why cities exist where they are, and how things work between them. It was also very interesting to learn about the hierarchy of places.

b. The topics I am interested in learning more about are the topics that Jared Diamond wrote about in his article New World and Old World: Differences. This article was very captivating to me because it answered a question that I hadn't even known had an answer. It delegitimizes scientific racism in one fell swoop.  I am eager to learn more on the subject, and have already added Guns, Germs, and Steel to my book list!

c. The advice that I would give a student considering taking this class to not think that it will be a reiteration of Econ 101, as I did. I thought that the content of the class would be just like that in 101, and while some of the course did overlap with 101, I quickly learned about more theories and concepts than I had expected.

Weekly Blog Post

The African Development Bank is organizing, starting Wednesday in Tanzania, a forum dedicated to Civil Society Organizations in Africa, where around 60 CSOs are expected to show. The forum is directed at discussing challenges and opportunities that Africa faces, particularly opportunities in becoming a green continent. The forum also aims to provide the opportunity to contribute to the long-term strategy that the ADB is developing.

The focus on creating a 'green' Africa relates to the environmental Kuznets curve. As Africa is becoming more and more developed, and the economic climate there keeps growing and growing, demands for cleaner air and water also keep increasing. More government regulation and 'cleaner' cars and other modes of transportation that are emerging on the market are also indicators of a cleaner environment. Also, because of high population growth rates, especially in urban areas, and global-warming related weather changes that affect crop growth and production, a healthier environment is in Africa's best interest.

Beware of Greeks Bearing Bonds

1. A passage that was interesting to me was that hardly anyone in Greece is punished for not paying their taxes. On top of that, I was surprised to learn the amount of corruption in Greece. The author states "People who go to public health clinics assume that they will need to bribe doctors in order to actually be taken care of." He also states that government ministers in public office usually emerge as multi-millionaires will several homes. No wonder the Greek economy is in the state its in!

2. Even though Greece's economy is very small compared to the other European Union economies, the economic problems that exist in Greece threaten the rest of Europe. This is because when Greece's credit ratings fell, it turned government bonds into junk. The IMF and the European Central Bank decided to lend Greece up to $145 billion dollars to make up for it, therefore making Greece a 'ward' of the other states. Also, Greece uses the Euro. Because of the financial state in Greece, the Euro will depreciate, as will investment in the Euro, therefore harming the other countries in the European Union. If Greece walks away from it's nearly $400 billion debt, then the other countries in the Union that are teetering on the edge of bankruptcy run the risk of following.

3. Greece has agreed to an austerity program offered by the EU as a sort of bailout. Austerity is a policy that refers to a policy of deficit cutting by lowering spending. Using the short-run national income model (GDP=G+I+C+NX), I will explain how this will end up contracting the European economy.

GDP=G+I+C+NX

If government spending decreases then it will result in a decrease in GDP. If taxes increase, then consumption in turn will decrease because people will have less money to spend. This will then lead to a decrease in GDP, and effect the other parts of the equation (Investment and Net Exports).

http://www.vanityfair.com/business/features/2010/10/greeks-bearing-bonds-201010

Weekly Blog Post

http://www.aps.sn/aps.php?page=articles&id_article=96311

Newly elected President, Macky Sall, announced today, Monday, May 21,2010, the establishment of a National Anti-Corruption Committee (OFNAC). The mission of the committee is to fight against corruption and similar offenses in order to strengthen the public governance. The committee will have significant powers including that of self-referral to any inquiry or investigation it deems fit. the OFNAC will also have the power to publish reports.

In other news, President Macky Sall announced the sale of one of the 2 Presidential planes. Sall said that having two planes was wasteful, and that the benefit of the sale of the device will be returned to the people. He also announced a series of other cutbacks to reduce the cost of the lavish lifestyle of the state. This includes such things as removing first class travel for ministers and state officials, and salaries of government ministers and advisors will be revised.

Senegal has heard promises of reduced corruption many times before, especially by the morally questionable former President Abdoulaye Wade. While this committee may seem like another structure destined for anemic funding and ultimately failure, the promise to reduce the cost of maintaining government seems to prove that President Macky Sall actually wants to keep his promise. Sall was born into poverty in Senegal, and worked his way up the ladder into the Presidency. He is a very promising figure for the future of Senegal.

Economically speaking, the construction of an Anti-Corruption Committee that works independently of the government, if implemented correctly, can greatly reduce the amount of corruption in Senegal. Seeing as how that is the greatest obstacle in starting a business in the country, the committee could attract more businesses to the country. This would further establish Senegal in the world economy, and the increased investment will stimulate the economy, leading overall to an increase in Gross Domestic Product.

How Walmart is Changing China

A passage from the reading that I found particularly interesting was the former presence of melamine in milk and baby formula. This dangerous chemical can lead to illness and death, and after 300,000 illnesses and 6 infant mortalities, the Chinese government rearranged it's food inspection system. This is a good example of government response to public outcry. It also shows how the government in China, a country with a seemingly completely open market, is forced to regulate and inspect some products to protect its' consumers.

An example from this reading that demonstrates the interaction between multinational firms, economics, and culture is the example of organic foods in Walmart. Because of widespread distrust of local markets - and their bad reputation for mixing rotten produce in with the bad - consumers rely on big names like Walmart to sell reliable products that are certified organic. With the rising demand for natural and organic products, Walmart has been feeling pressure to make sure these products are available. In 2007, Walmart established the Direct Farm Program which enables the company to work directly with local farms through co-ops. This 'eliminates pieces of the supply chain that are not productive, as well as raising farmer's income... and giving them increased market access.' This also allows Walmart to get fresher produce to cut down on food spoilage to reduce waste and lower prices. With this increased pressure for increased sustainability, Walmart puts pressure on local farms to grow natural and organic products. An example of this is Dalian Glory Times Logistics Company.

In Senegal, multinational firms have impacted economics to an extent. Legislation that allowed foreign trawlers to fish outside Dakar have led to a decline in the amount of fish in the area, better known as tragedy of the commons. This has also affected Senegalese fishing companies by decreasing the supply of fish drastically, and leading to a nation-wide seafood shortage.

Weekly Blog Post

http://www.aps.sn/aps.php?page=articles&id_article=95989

The post describes an agreement signed between USAID, the African Cashew Alliance, and the West African Development Bank. This was a memorandum of understandin loan of more than 6 billion CFA francs to help the process of cashew production in West Africa. The amount will fund operators and processors of cashews through USAID and the ACA. It includes technical assistance and insurance, as well as installation. By signing this memorandum of understanding, each party has committed itself to work for promoting the cashew industry.

By funding, sustaining, and promoting the cashew industry, the parties involved will help increase the output of cashews, increasing supply of cashews in the region. This could lower the price of cashews and increase the quantity of demand. In theory, this is what would happen. However, this increase in funding would more likely stabilize an already somewhat volatile cashew market.

Vehicle Market Executive Summary

The country of Senegal has a small, but growing economy. Senegal’s GDP per capita is slowly rising, and rests now at $1,900 per year. However, the nation has an unemployment rate of 48%, and 54% of the population is below the poverty line. Senegal has a population of 12,433,728, and 2,467,400 lives in the capital of Dakar.

Port Autonome de Dakar, the largest port in Western Africa, houses a new container terminal that allows post-Panamax containerships, a fishing port, and a ship repair facility.

Senegal is part of the West African Economic and Monetary Union. This union includes 8 countries and promotes free movement of goods and capital. The regional bloc represents 60 million consumers.

However, corruption is the biggest problem when starting a business in Senegal. Recently, institutions like the National Program for Good Governance have been created, but lack the funding to prevent large-scale corruption. 

Weekly Blog Post

http://www.aps.sn/aps.php?page=articles&id_article=95742

The Policy Network of Fisheries in West Africa said today, May 8, 2012, that they welcomed the Senegalese government's decision to cancel the authorization to fish on the high seas pelagic resources. Senegalese authorities have canceled 29 fishing authorizations granted to foreign trawlers to make fisheries in Senegal more sustainable. For more than ten years, Senegal has been a victim of bad governance leading to a type of 'tragedy of the commons'. The decline of fish stocks have left the resources in a state of overexploitation. The NGO thinks that a fisheries policy "creates wealth and jobs in Senegal through the establishment of a new form of participatory governance where actors are placed in the heart of decisions and actions implemented". This action will ensure adequate provisions for Senegalese households, stabilize Senegal's fishing industry, and support the local economy.

This relates to supply and demand. Before the cancellation of the authorizations, supply of fish was low in Senegal, causing the quantity of supply to move to the left, decreasing the quantity of demand and raising the price. This was an inefficient use of natural resources. Cancelling the authorizations will eventually restore supply of pelagic fish, and the supply curve will return to normal. Price will be lowered, and the quantity of demand will return to the equilibrium.

Something that I found interesting was the effect of the internet on prices. "The ready availability of price information has not driven prices of identical items into alignment. Price dispersion still exists even though information is available for no cost at all. Some buyers are even still apt to purchase the more expensive item because of laziness.

By transaction costs, the McMillan means the extra costs that arise when buying or selling a good in a market.  This includes search costs and evaluation costs. Search costs are the time, money, and effort it takes to find a good. Evaluation costs are the "difficulty buyers have in assessing quality"(McMillan 44). For example, when wandering around a market place, a person might buy the first good that they come across, even if it is more expensive or lesser quality. A different person, on the other hand, might take a really long time finding the best value, but lose more in 'search costs'.

One of the results of imperfect information is overpricing. A lack of information flow can leave the buyer vulnerable to high prices for low quality. If the consumers don't know the different prices offered, than they are willing to buy for what they think is the normal price. If sellers assume this ignorance, than they can hike up the prices for maximum profit to the disadvantage of the customer. Furthermore, some merchants will quote high prices if they know the other merchants are doing the same. This leaves the customer vulnerable.

A Fez of the Heart

One passage of the reading that I found particularly interesting was that fezzes were banned from Turkey in 1925. We usually associate the fez with Turkish culture, but it has been almost a century since they were 'bidden' in the country. The fez is associated with the old Turkey, not the new, modern, westernized Turkey.

An example of the interaction between economics and culture is the transition from the 'authentic' Turkey to the Turkey that caters to tourism. This is evident in the mixture of Turkish, American, and German cultures described on the main street. On page 8, the author writes "...The incursions of English and German had rendered Turkish a minority language. The author describes the presence of 'handburgers', and 'doner kebap' being advertised as traditional Turkish cuisine, as well as the European pop music played on the street to block out the sounds of the nearby mosque. Economics and culture interact in two ways in this prologue; resorts in Turkey modernizing in order to attract tourists, and tourists becoming attracted to what they see as 'authentic' Turkish culture(the fez).

The leading destination is Dakar. It is the nations capital, located on the beach, and one of the biggest ports in West Africa. There is an international airport, hospitals, universities, museums, and booming nightlife, and is famous for its large markets. Another popular destination is L'ile de Gorée, or Goree Island. It is located just off the coast of Dakar. It is famous for its history in the slave trade, and is home to the popular pilgrimage site, le Maison des Eclaves(house of slaves). It is a popular destination for African-americans who with to reflect upon their ancestry. Rebta Lake (Pink Lake) is a lake in Senegal that is a shade of red due to its high salt content and unique bacteria. It is a one-of-a-kind, and is the only pink lake in the world. It is also a popular destination for the fascinating salt harvesting that takes place.

Weekly Post

http://www.aps.sn/aps.php?page=articles&id_article=95360

Briefly, this article translates into an entrepreneur in the Matam region of Senegal who is starting an animal feed production company in order to have readily available feed for local farmers and encourage other citizens and farmers to move to this area and invest in local companies. The entrepreneur, Ibrahima Sow, has been encouraging local farmers to grow corn so he can support his business. Sow explains, "I created this company in order to encourage my brothers in the Diaspora who have more money than me to come and invest in the Matam region and help it's people live better." As part of its social policy, the company has given one million two hundred thousand CFA to a local health center to help pay for pharmaceuticals. Within the article, Sow mentions the setback of poor roads in the area.

This company is an example of the strive to create a stronger local economy in Senegal, and applies to Central Place theory. Sow and the company encourage people not only to invest in the company, but to move to the area. The company, just one year old, has 25 employees, but also stimulates the local economy by buying corn and other produce from local farmers. Donating to the local health center improves its' conditions and a sanitary and well-supplied hospital could be incentive for people to move to the Matam region. If the company grows and employs more, it will have a ripple effect on the economy and stimulate population growth in the region. This could also be an incentive for the local government to invest in road construction which will both employ people and encourage further growth to the area. The company will produce feed for poultry, which is also a somewhat large market in the area, and the farmers and the company will be mutually beneficial.

The history of the location of the textile industry illustrates that companies seek out the locations that produce the most for the cheapest. This includes countries that have the lowest restrictions on working conditions, no minimum wage, a population that is willing to work for very little money, where the workers personal traits include docility and obedience, and where even the small wages of factory work improve the living conditions of the workers. Today, this place is China. Rivoli's book also brings up both the negative and the positive consequences of industrialization. One negative long term and short term effect is pollution. Rivoli explains "Of the 20 cities in the world with the highest levels of air pollution, 16 are in china, and the majority of the water in the country's largest river systems is unsuitable for human contact" (Rivoli 89). She also gives the example of the factory that was dumping dye and poison into the river, and the river was then passing through the agricultural part of China. A short term positive effect is the increased sense of self-autonomy for women. For the women who would otherwise work in agriculture, the working conditions of the factory are somewhat better than they would be on the farm, and the ability to move away from home gives women independence from their families. Also, industrialization helps the economy. It provides jobs and cheaper goods to countries across the globe. A long term positive effect could be the universal demand for better working conditions and more strict regulations on gas emissions from the factories. Over time, the working conditions will improve, much like they did in the United States in the industrial revolution, and the lives of the workers will be better. One section that I found to be particularly interesting was the section that described to clothing industry to be a liberating field for women. These women, at the factory, work laboriously, follow strict rules and schedules, and are referred to as 'birds in a cage'. But this is a good alternative to the life that they would have on a farm. I never had considered this aspect of industrialization before.

The World is Spiky- Richard Florida

The author presents to sides to globalization. The first is Thomas Friedman's view; globalization has created a 'flat' world in which new technological innovations give the countries competing within the economy an equal chance. The flip side, Florida's view, is that globalization is polarizing and magnifying the differences between the highly populated economic centers, and the rural 'valleys' of the world. Florida argues that the growing disparities between rural and urban centers will inhibit future economic innovations because of the political climate that will occur from this stratification. This theory supports central place theory. They both represent the centralization and clustering of innovations and people in large city-regions such as New York, London, and Tokyo. A large availability of jobs, services, and goods all  bring people to these regions to reduce transportation and transaction costs, resulting in a cluster. This leaves agricultural workers in the 'valleys'. For study abroad, I will be traveling to Dakar, Senegal. Dakar has a population of about 2.5 million, making it by far the largest city in the country. It is also one of the largest cities in Western Africa, and acts as a main port for the area. Dakar has hospitals, an international airport, universities, and government buildings. There are a few other places in the continent of Africa that would rival Dakar in terms of largeness and 'spikiness', and those include Cairo and Johannesburg. A regional city would be St.Louis. It has a population of 176, 000. It has national parks, a university, museums, and regional government offices. A town would be Rao, and I was unable to find any useful information on the town. Of course, in the rural areas of Senegal, there are villages, or hamlets, where there are only a few dozen people living, give or take.

The primary ocean port in Senegal is in Dakar, the nations capital. It is one of the largest deep water ports along the West African coast. The total freight traffic averages about 10 million metric tons. The country, according to some sources, is well served by passenger trains and railroads. However, according to other sources, Senegal's trains, both freight and passenger, run very slow, at about 20 km/hour, due to poor condition. The highway system is extensive compared to West African standards, including paved roads reaching each corner of the country and all major towns. There are a total of 10 airports with paved runways. The main airport serves the Dakar region (and is also located in Dakar), called the Leopold Sedar Senghor International Airport. Other airports include the Saint-Louis Airport and the Richard Toll Airport. The airport in Dakar is the primary airport, and includes daily international flights, including flights to and from Johannesburg, Europe, and Atlanta.

The most interesting part of the chapter, to me, was learning that container terminals function so thoroughly and mechanically, with little room for human error. Levinson compares trade as it was not even 50 years ago to trade as it is now- clockwork. As someone who is interested in history, I liked learning how international trade and imports and exports have unfolded over the course of the past 100 years. The author sees the development of the shipping container as a contribution to globalization in the way that it lowered transportation costs immensely. Advanced containerships are much more efficient than the smaller ships of yesteryear, and also require less labor and time to load and unload. Now, business men see transportation as practically costless. Containers also account for the elimination of piece-by-piece freight handling, ultimately leading to less time spent on shipping. Levinson argues that the container stimulated trade and economic development. Historically speaking, transportation costs have always been very high, so trade was conducted amongst neighbors. In todays global economies, Levinson argues, incredibly low transportation costs allow companies to move to countries where there are low labor costs, abandoning economies that may have flourished previously. This economic geographical reorganization is what Levinson argues is the short run effect of the container. Levinson is unclear about what this has specifically to do with national income, but companies leaving for other countries can leave many people without jobs. Theoretically speaking, this would lower inflation. As we can see from the United States position at present, this would render the country in a recession.

A pure market theory states that supply and demand will adequately allocate all resources in a society to where they are needed. It relies on markets to provide and distribute resources without government intervention. This market does not exist in the world, and it cannot exist because markets are imperfect. Government intervention is necessary because markets are flawed and self-servient. An example of this in Rivoli's book is on page 32, where Rivoli discusses the authorizing of the Bracero program by Congress in 1942, which allowed Mexican labor to enter the United States for short periods to work in agriculture. Rivoli states that this program "illustrates again the political influence that enabled cotton farmers to avoid competitive markets." (Rivoli 32) This program allowed cotton to be picked more effectively than it would have otherwise, and protected farmers from the volatile labor market. Another example is the payment of subsidies from the U.S. government to cotton growers, put in place by the Farm Bill act of 2002. Under this bill, cotton farmers received a direct payment of "6.66 cents per pound of cotton regardless of the market price." (Rivoli 59). This bill protected farmers from business risks such as bad weather, bad credit, and tough competition. The Crop Disaster Program reimburses farmers for losses due to bad weather, and the Farm Loan Programs provide financing to farmers who are unable to get credit from private sources. The government has been a good friend to the cotton farmers, and have given them a leg up in the global cotton economy. While culture interacts with economics in the very broad sense that government interaction due to cultural values, a specific example from the text appears on page 30. Rivoli explains that the Deep South was more reluctant to trade in their traditional farming tools for more advanced technologies that would increase productivity. She explains that this hesitance to trade in their mules for tractors was due to a "faithful attachment to tradition and reluctance to change..."(Rivoli 30). This grasp to old ideals effected Deep South's cotton production greatly, placing them far behind Texas in annual production. One thing that surprised me in this section of the book was the small number of organic growers. During the summers I work on a blueberry farm, but about 7 years ago the owner, never a smoker, got lung cancer from the pesticides he sprayed on the fields. So, we switched to organic. Not only did greater demand for organic blueberries increase our sales, but we noticed that the blueberry plants responded better to the organic sprays than the chemical ones. Seeing the difference between the blueberry and cotton industry is very interesting to me because of this.

Five days ago, President Macky Sall was sworn into office as President of Senegal. His inauguration was inexpensive, taking place in a tent, and ending with a march through the streets of the capital, Dakar. His predecessor, Abdoulaye Wade, celebrated his inauguration with a lavish and expensive party. Wade has been increasingly criticized by leaders of the IMF and World Bank for public policies that worsened the effects of rising food prices, but most importantly, he lost popularity among the Senegalese. Wade has been blamed for installing his son in positions of power, attempting to change the constitution to make re-election easier, and seeking a third term when law limits terms of presidency to two. Wade also was blamed for superfluous spending, once spending $27 million dollars on a statue that, when finished, will be taller than the Statue of Liberty. Not only that, but he planned to profit from the statue himself, stating "So we should see how we share the benefits. The state will go with 65% and l shall take 35% for myself." No wonder Wade lost in a landslide to incoming president Macky Sall, who won nearly 66% of the vote. However, Sall now faces many economic problems, including rising food prices, high unemployment, a large debt, and a significant dependence of foreign aid. Sall has pledged to make tackling poverty a priority, promising to fund cuts to the price of basic necessities such as rice with reductions in the cost of running the government. This tactic is exactly what I would suggest for the country. Senegal's economy is in recession, and there are many unemployed people, and the cost of inflation is high. Redirecting government funds and reducing corruption within the government will ultimately increase government spending, particularly on social welfare programs and employment. Cutting the price of foods will increase the demand for it, and consumption will go up. Senegal should stick with this expansionary monetary and fiscal policy if it hopes to overcome the economic woes that Wade left behind. 


Articles used: http://www.reuters.com/article/2012/04/02/us-senegal-president-idUSBRE8310JD20120402, http://topics.nytimes.com/top/news/international/countriesandterritories/senegal/index.html, and http://news.bbc.co.uk/2/hi/africa/8353624.stm

In Milton Friedman's essay "The Social Responsibility of Business is to Increase its Profits", the main theme or motif that appears is the importance of maintaining a pure form of capitalism, and economy that is autonomous from the government. Friedman stresses that businesses do not have a 'social responsibility', but the 'invisible hand' of private enterprise forces business owners to be responsible for your own actions, therefore making it difficult to exploit workers. To put it simply, government regulations on business that force that business to act in a way that it otherwise wouldn't have is socialism, and socialism is evil. The cultural values that are most important to Friedman are individualism and meritocracy. In fact, those are the values that businessmen in the 1950's spent millions of dollars on propaganda promoting as the true 'American' values; values that promote capitalism and profits, values that make labor unions seem like an unnecessary evil. Personally, I do not see a conflict between business and social responsibility. Friedman explains that only people have responsibilities, therefore, businesses do not have responsibility, but the people running them do. Obviously, this is not true, because the government, AND the people running it have responsibilities to cater to the needs of the American people. Friedman also argues that the government must impose taxes on businesses because their policies are too unpopular among the people. "What it amounts to is an assertion that those who favor the taxes and expenditures in question have failed to persuade a majority of their fellow citizens to be of like mind and that they are seeking to attain by undemocratic procedures what they cannot attain by democratic proce­dures." Huh. Those who benefit from taxes (those who benefit from government aid programs like welfare, social security, medicaid, etc.) make up the majority of the American population. Friedman speaks from the viewpoint of the wealthy business elite - the people who popularize capitalism so they can augment their already bursting pocketbooks. Friedman is indeed a participant, or a victim of, a propaganda campaign beginning in post WWII America, when growing labor unions threatened the ideals of capitalism. I think businesses, as a facet of American society, have as much social responsibility as religious institutions, hospitals, and schools. 

In his lecture, Richard Shweder identified three major prophecies of the shape of a new world order. The first is the theory that liberal democracy is the final point of ideological evolution. This theory explains that all civilizations in the world have been searching for and evolving to fulfill what can be considered an 'ideal civilization', such as the United States in the 2nd half of the twentieth century. This thought is also called the Washington Consensus. The second prophecy is the return of the ideologically divided world, where countries coexist and compete with each other in the global arena. Shweder mentions that the most homogeneous countries are the most egalitarian, that is, the more culturally 'pure' a community is relates to how well it functions. He also points out that globalization brings about ideological conversions, such as technological advancements, but certain ideologies are more effective in certain countries. The third prophecy is there will be a return to a global empire that utilizes the better aspects of the Ottoman Empire. This incredibly diverse empire, Shweder explained, only collected taxes and prevented people from encroaching on other people's territories. Most civilizations throughout the history of the world have used empirical systems, and the modern nation-state is merely an exception, and not the rule. Indications of global change can be found in patterns of trade and ideological pressure. Countries that are both wealthy and dedicated to the spread and implementation of their political and economic ideology, like the United States, have immense impact on patterns of commerce. Refusal to trade with countries that don't share our values, like Cuba, could persuade countries out of becoming communist. Financial aid for countries who choose to implement democracies and capitalism could also be a strong selling point for poor countries. Also, historically speaking, patterns of global change throughout history could demonstrate the future. Another indicator would be the introduction of substitutes that would decrease a countries dependence on trade with another country. An example of this is United States dependency on oil from the Middle East. Culture is incredibly important in shaping economic outcomes. If a culture shares the same values concerning the economy, it is more likely to succeed. Take, for example, the United States. In America, there is strong pro-capitalism sentiment, and heavy anti-communism/socialism sentiment. This began at the end of World War II and intensified during the Cold War. This effects the countries we trade with and to what extent we will trade with them. Also, Americans value individualism and hard work for economic gain. These cultural values are economically efficient for the United States. Furthermore, religious organizations play a large part in American society and perpetuate economic values. Shweder himself stated that the most homogeneous societies are the most egalitarian.

Senegal has many natural resources, including fish, peanuts, phosphate, iron ore, gold, titanium, oil and gas, and cotton. Located on the ocean, Senegal's largest export is fish. Fishery exports account for approximately 15% of the employment in Senegal, and contributed 22% to Senegal's export earnings. In 2010, Senegal's labor force was documented to be 5.532 million strong, but at the moment, the country is experiencing nearly 50% unemployment rate. As for capital, Senegal is reforming capital expenditure in a long term program. Capital expenditure in 2009 was equivalent to 922.6m euro, to 1.04b in 2010. Important trading partners for Senegal are France, Italy, Mali, the Gambia, and India. Major exports from 2008 total $2.05 billion and include fish products, peanuts, phosphates, cotton. The fish sector is the largest sector of trade for Senegal. Major imports (2010) total $4.474 billion and include food, consumer goods, petroleum, machinery, transport equipment, petroleum products, computer equipment. Senegal receives these imports from France, United Kingdom, China, the Netherlands, Thailand, and the United States. International trade with Senegal is monitored through ECOWAS, the Economic Community of West African States. Nevertheless, trade with Europe and parts of Asia dominate trade with Senegal. Senegal uses African Financial Community franc (CFA), which is fixed to the euro. 656 CFA = 1 euro. 495.28 CFA = U.S. $1. The household final consumption expenditure (current LCU) is Senegal was, in 2010, 5127249103720.06 in 2010. The percent of investment of total GDP is 29.813 %. Government spending has increased to a level equivalent to 26.8 percent of total domestic product, and the number representing that is 78.5. Due to chronic debt, the amount of foreign aid in 2007 totaled to be 20% of government spending.

Senegal Statistics

Senegal's GDP using purchasing power parity is $25.4 billion, but the official GDP is $14.7 billion dollars. GDP per capita is $1,900. Unemployment is at 48%, poverty is at 54%, and inflation is at 3.4%. The literacy rate is at 39.3% and life expectancy is 60.18 years average; for men it is at 58.22 years, and for women it is 62.19 years.

In the article "Why Did Human History Unfold Differently On Different Continents For The Last 13,000 Years?", author Jared Diamond argues that differences among human societies can be attributed to unique environmental conditions instead of biological differences between the people themselves. Diamond constructs his argument by working from the Colonization Era backwards and ending with the conditions of the separate continents. He attributes Eurasia's success in colonization to it's axis that runs East to West as opposed to North and South. This axis, combined with easily domesticated livestock unique to the continent, expedited the spread of technologies and germs. The early exposure to germs in Eurasia overtime created an immunity among the population, but were carried by European explorers to these distant lands. The most important determinant that Diamond identifies as the key to a society's success is environmental differences. While the success of Eurasia could be attributed to the obvious factors of guns, germs, and steel, Diamond argues that the climate unique to Eurasia eventually led to the development of these technologies. These ideas led to the success of the continent during colonization, and the effects are still obvious today. Many of the countries in Europe and Asia have the biggest economies and highest GDP's in the world. The terms 'developed countries' and 'underdeveloped countries' were coined by members of these 'first world' countries, and are used to explain the differences between countries that use modern technologies and those that do not. Also, the lack of livestock or arable land in some continents can contribute to how large the country's GDP is and how large a population can get. Furthermore, Diamond's argument provides evidence that it is not physical or mental differences between people but environmental factors that led to the colonization of peoples. Up until quite recently, there has been a theory of evolution that states Europeans went through the 'neanderthal' stage, an extra stage of evolution unique to caucasians. During the Age of Exploration, the movement of scientific racism attributed the smaller skulls of African peoples to a lesser intellectual state than that of Europeans. Diamond proves that this is not at all the case, therefore changing scientific thought on the matter.