Chapter Summary

Division of labor can only take place where there is a large population, that will generate enough of a demand for specialized services. Some services will only be able to find constant employment in towns. And those that live in remote villages and in the highlands of Scotland, can not rely on specialized services, and thus must learn to provide for themselves. In those areas even common trades will seldom find a market for even a days worth of their work.

Coastal areas, and cities on rivers have been the fastest to develop, as their goods can be very cheaply transported across water versus land. Thus while cities on water will develop, those landlocked will be stifled, as land transportation is vastly more expensive the sea transportation. And since land locked areas are limited in their potential for wealth by the neighboring land, those with navigation available are not so limited.

This is probably why the ancient civilizations formed around theMediterranean, with it's easy navigation they could grow fast. This is especially true of countries that had great inland navigation, such as Egypt, China, and India. While countries that are landlocked (or with rivers that do not flow into a usable ocean or through another country) seem to be stuck in a barbarous state.