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This chapter discusses the influence of the environment and geography on prosperity and corruption and reviews some leading empirical works.  A direct and robust empirical relationship exists between the environment/geography and the prosperity of nations. For instance, countries located in the inter-tropical or equatorial zone tend to be poorer than those located in temperate zones. Seasonal dynamics lead ecosystems and societies to accumulate and manage more resources, while equatorial species and people tend to consume the available resources immediately rather than storing, accumulating, and reinvesting the excess capital.  An abundance of natural resources (i.e. fuels and minerals) tends to generate conditions for rent-seeking and corruption. Venezuela, Nigeria, or Arab countries are examples of countries located on the equator characterised by an abundance of natural resources and by high levels of corruption.

Environment/Geography and Prosperity/Transparency (E), (4), (7)