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Why Heat Makes Countries Poor?

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Ever wondered why countries near the equator remain poorer despite being rich in natural beauty? The answer might shock you. Every extra 1ºC in temperature can shrink a country’s GDP per capita by 8.5%! That’s nearly a quarter of the income gap between nations explained by heat alone. High temperatures reduce manual labor productivity-a +10ºC rise can slash output by 35%!

But heat isn’t the only villain. Many tropical countries struggle with nutrient-poor soils, constantly leached by heavy rains. The Amazon rainforest, Borneo, and Sumatra remain nearly impossible to farm. Java is a rare exception, thanks to fertile volcanic soil.

History shows that managing heat transforms economies. Air conditioning boosts worker productivity, and solar-powered electrification can reduce diseases and increase output. Countries that harness technology to tame the climate can turn this challenge into opportunity.

The lesson is clear: climate shapes wealth, and understanding its impact is essential for policymakers, entrepreneurs, and innovators aiming to change the economic destiny of tropical nations.

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