Correlative Theory: Why Warm Countries Are Poorer

Interesting observation: As you move closer to the equator, the air gets warmer, but the relative societies are also poorer.

Why?

An Interesting Puzzle

Across continents, wealth and temperature seem inversely correlated.

From Canada to Chile, Finland to Ghana, Norway to Nigeria, GDP per capita drops steadily toward the equator.

A few exceptions—Singapore, Hong Kong, the UAE, Barbados—prove the rule.

They’re either microstates, oil economies, or fully air-conditioned city-states that beat the heat with technology.

So what’s going on?

Classic Theories

Temperature and Productivity

Warm climates drain energy.
Studies show that for every +1 °C rise, GDP per capita drops by about 8.5%. Heat doesn’t make people lazier; it literally reduces cognitive and physical performance.

  • Manual labor productivity falls ~4% per +1 °C above 27 °C.

  • Exam scores, reaction time, and even politicians’ language complexity decline with heat.

  • Crime and aggression rise; sleep quality falls.

Air conditioning isn’t just comfort—it’s civilization infrastructure.

Lee Kuan Yew made AC a first-order priority when modernizing Singapore.

Humidity and Dew Point

Heat feels worse with humidity.

When the air is saturated, sweat can’t evaporate, and the human body loses its main cooling mechanism. Movement becomes unbearable; mold and disease thrive.

The result: work slows, productivity collapses, and “laziness” is actually physiological heat stress.

Disease Burden

Warm, humid regions are breeding grounds for malaria, dengue, yellow fever, parasitic worms, and countless other diseases that sap human capital.

Sick populations can’t accumulate knowledge, build institutions, or educate their children effectively.

Frost Inverse

Cold kills pathogens.

Regions that experience regular frost enjoy lower disease load and higher agricultural reliability—leading to more stable population growth and institutions.

Institution Genesis

Economists like Acemoglu, Johnson, and Robinson argued that European settlers died more frequently in hot climates, so they built extractive rather than inclusive institutions—governing through exploitation instead of investment.

Others later showed that European settlement patterns were more about ease of replication of their systems than mortality alone.

In either case, geography—not race or culture—remains the root cause.

Crops

Equatorial regions tend to favor labor-intensive cash crops—sugar, cotton, coffee—rather than capital-intensive grains.

This encouraged slavery, extractive economies, and institutions designed to control labor rather than foster innovation.

Abundant resources also distort economies. Easy wealth from oil or minerals inflates prices, chokes manufacturing, and discourages exports—the “resource curse.”

The Overlooked Factor: Altitude

Here’s the non-obvious point most theories miss.

Humans in tropical countries don’t live in the heat.

They live above it.

The Mountain Pattern

Using Colombia as an example: its three largest cities—Bogotá, Medellín, Cali—are all high in the Andes.

Ethiopia’s Addis Ababa, Kenya’s Nairobi, Mexico City, La Paz, Quito—all mountain capitals.

For every 1,000 meters of elevation, temperature drops 4–9 °C.

That’s why Bogotá (2,600 m) is ~14 °C cooler than coastal Barranquilla despite being nearer the equator.

Humans evolved in the temperate highlands of East Africa.

We’re optimized for stable spring-like conditions—around 18–22 °C—not the oppressive heat and humidity of tropical lowlands.

The evolutionary comfort zone explains why populations cluster on elevated plateaus in the tropics.

The Trade-Off

Mountains provide cooler air, fewer diseases, and workable humidity—but at enormous cost:

  1. Transportation — steep slopes, no navigable rivers, expensive infrastructure.

  2. Trade — limited connectivity means small local markets and little specialization.

  3. Fragmentation — valleys breed isolation, cultural divergence, and mistrust.

  4. Conflict — the classic “Balkanization” pattern: ethnic divisions, local warlords, and fragile institutions.

Across Latin America, Africa, and Iran, mountain terrain correlates with both high ethnic diversity and frequent internal conflict.

Two Paths of Poverty

Warm regions face two bad options:

  1. Lowlands: cheap trade routes, but heat, disease, and low productivity.

  2. Highlands: healthier climate, but isolation, conflict, and poor infrastructure.

Latin America and much of Africa chose altitude—the “mountain poverty trap.”

South and Southeast Asia stayed in the lowlands—the “heat and disease trap.”

What It Means for Development

Blame doesn’t help. Geography does.

Understanding these physical constraints gives us actionable levers:

For Low-Lying Hot Regions

  • Electrify everything.

  • Invest massively in air conditioning, solar energy, and mosquito eradication.

  • Improve sanitation and drainage to break disease cycles.

For Mountainous Regions

  • Build infrastructure that overcomes altitude: roads, rail, tunnels, and logistics tech.

  • Use digital connectivity to compensate for physical isolation.

  • Encourage regional integration to offset fragmentation.

Final Thoughts

in the grand story of human development, the most powerful anti-poverty device ever invented might just be… the air conditioner.