The Importance of Economic Growth

Today I got to see why economic growth is so vital to a nation's stability and future.  Today Barbados was hit by a MASSIVE rain storm.  It poured for hours on end and almost every street was flooded as a result.  During a brief halt in the storm I decided to go out to get a package at the post office (more books for school) and go grocery shopping.  Sitting in traffic while running these errands gave me ample time to think about what the outcome of a similar rain storm in other, poorer, countries would be.  Sadly, the first country to enter my mind was Haiti.  If a similar storm hit Haiti there would be massive mudslides that would kill hundreds and displace thousands more.  Why does Barbados simply have flooded streets while Haiti suffers mudslides?  The answer is economic growth.

In Haiti, because people are so poor, they chop down trees and use the wood to fuel their stoves and heat their homes.  The result is massive deforestation which ultimately leads to mudslides during rainstorms because without a strong root network to keep soil in place, it simply washes away.  Barbados has been able to avoid this fate because its people, on average, are far more wealthy than Haitians.  They are able to afford alternatives to wood for fuel, build decent drainage infrastructure, and construct sturdy homes.  Thus, while Haiti suffers a vicious circle (poverty leads to deadly mudslides and poor infrastructure, which in turn leads to more poverty) Barbados enjoys a virtuous cycle (relative wealth allows sounds investments in infrastructure and fuel sources, which in turn lead to more economic growth). 

Of course, the key questions are: 1) why did Barbados end up on the virtuous cycle and Haiti the vicious circle, and 2) what can be done to transition Haiti to a virtuous cycle?  These are questions many economists, historians, sociologists, engineers, and politicians have tried to answer to no avail so far.  Hopefully the rebuilding effort that is going on in Haiti right now due to the tragic earthquake can lead to some positive changes that get Haiti on the path to growth and stability.  But what about all the other countries stuck in vicious circles?  Will they have to wait until massive natural disasters destroy their countries for change to come?