The ‘Western world’ is a broad term generally used to refer to the democratic and developed nations of Europe, North America, and Oceania. There are several factors common across all Western countries. However, ask many people and often they will say Western nations are among the wealthiest globally. In fact, they’d be correct. But why? Why are Western countries so rich? Well, let us tell you…
1. The Climate of the Western World
A first reason why Western countries are so rich is because of their climate.
A nation’s climate has a major affect on how a society develops. Generally, Western countries have colder and more temperate climates. Many historians believe that colder climates made people more organised as lower temperatures forced people to work together to survive. This meant that societies developed that were more industrial and entrepreneurial. This is seen as one reason why Western countries are wealthier today.
Another climatic factor that is seen as contributing to Western countries becoming wealth is the changing seasons. Unlike tropical countries, many Western countries experience a range of temperatures throughout the year. This meant that societies had to plan their food supplies and ensure crops were sowed, harvested, and stored so that people did not starve during winters. This resulted in more ordered and structured societies, which in-turn helped in creating wealthier nations.
Climate is a key factor in determining how people live their lives. There is much evidence that the colder and more varied climates of Western nations resulted in the development of societies that were able to become rich.
2. The Geography of Western Nations
A second reason why western countries are rich is because of their favourable geography.
Geography is another major factor affecting how nations develop. Geographical features, such as mountains, rivers, flatlands, and forests, determine how people live. Countries with natural features that can help with defence, as well as significant amounts of arable land and navigable rivers, often fair better than countries without these geographical features.
Western countries generally have favourable geography. Many Western nations have developed around strong geographical boundaries. They also have extensive fertile land. Many countries in the Western world have coastal areas and navigable rivers – features also seen as key for nations to develop successfully.
The strong geography of many Western countries allowed their societies to develop in ways that resulted in them becoming rich.
3. The West’s History of Colonialism
A third reason why Western countries are rich is because of colonialism.
From the 1500s onwards, many Western countries began taking land and forming colonies around the world. This began with European countries, including Britain, France, Spain, and Portugal. By the 19th Century, even some Western nations that were former colonies, such as the United States, had began establishing their own overseas territories.
Establishing colonies helped to make Western countries wealthy. Colonial powers were able to exploit both the natural resources and human labour of their colonies and use it fund their industrialisation. Many Western countries also took colonies in strategically important locations, allowing them to cement their grip on global trade and project their military power. These factors combined helped to make Western countries rich.
Although colonialism is not the only, or even the main, reason why Western countries are wealthy, it cannot be ignored as a major factor.
4. Western Countries Have Developed Effective institutions
As key reason why Western countries are rich is because they have developed effective institutions.
A nations institutions include its government, legal system, financial bodies, and businesses. The success of a nation depends on how effectively its institutions are ran. For a country to become rich, it needs efficient, transparent, and accountable institutions.
Countries with effective institutions become wealthier. This is because good institutions encourage fair competition between enterprises as well as ensure that the rule of law and ownership of private property is protected. People are more likely to invest, innovate and develop new technologies if they feel there is fair treatment and protection granted by the country’s institutions.
Western countries have strong legal frameworks, in-built protections, and accountability mechanisms within their institutions. As a result, people trust that institutions work for them and will protect their interests. This makes Western countries rich because it allows people to build businesses and work productively knowing their investments cannot be lost arbitrarily.
5. The West Embraced Competition
A further reason why Western countries are rich is because they embraced competition.
Western countries developed as smaller nations often closely surrounded by other countries. This resulted in competition between nations for land and resources. Many historians believe this competition benefitted Western nations as it forced them to evolve and adapt in order to keep up with their competitors.
Competition between Western nations is a major reason why they are rich today. The concentration of small nations within the Western world pressured these societies to try and outcompete each other. This pressure resulted in the development of the efficient allocation of resources and eventually towards industrialisation. The mentality that competition instilled in Europe was then expanded to North America by colonisation. As a result, Western countries have benefited significantly from the competition they experienced, and this is seen as one reason why they are rich today.
6. Western Culture
A final reason why Western countries are so rich is because of the way their culture developed.
The factors we’ve already discussed, including geography, climate, scarcity of natural resources and competition between nations all resulted in a unique culture developing within Western society. Western culture includes key tenants such as individualism, human rights, and limits on state power. Factors such as these were vital in the West becoming rich. They created a culture where individuals could prosper and helped to ensure strong economic systems could be put in place.
Every nation has a rich and deep culture. All peoples have extensive histories that impact their societies today. However, the culture that developed within Western nations proved to a key factor in allowing them to develop economically and become prosperous. Although culture alone cannot explain why the Western world is so rich, combined with the other major factors we’ve discussed, most historians believe it is one of the reasons why Western countries are so now wealthy.
