Climatic determinism

The equatorial paradox is an aspect of economic geography. About 70% of the economic development of a country can be predicted from the distance between that country and the equator. In other words, the further from the equator the more developed a country tends to be. The paradox applies equally well both north and south of the equator. Australia, for example, has a higher level of economic development than Indonesia. The paradox also applies within countries - the northern U.S. states are more developed then the southern U.S. states.

Singapore is a notable counter-example: it is located at 1.22° N and is one of the world's most prosperous countries. This prosperity is based on its position as a port. Other exceptions to the paradox tend to have large natural resources. Saudi Arabia is a good example.