It's all about Extractive/Inclusive Political Institutions: A Good Alternate Perspective to Guns, Germs, & Steel, Wealth and Poverty of Nations, and EIt's all about Extractive/Inclusive Political Institutions: A Good Alternate Perspective to Guns, Germs, & Steel, Wealth and Poverty of Nations, and Empire/Civilization
This is an excellent complement to Jared Diamond's Guns, Germs, & Steel (geography/environment is the most important development factor), David Landes' Wealth and Poverty of Nations, and Niall Ferguson's Empire/Civilization (West dominates due to superior political/economic institutions), which is why I have read it in the order above.
If you want to understand the Big Picture and the underlying reasons why some nations are rich, democratic, fair, and inclusive, and others are poor, despotic, corrupt, and dominated by a power elite, we all know there is no single answer. In fact, there is not even a dozen answers that satisfy all the questions we naturally have. If it were that simple, then it would simply be a matter of the successful nations teaching the struggling nations what they're doing wrong in terms of political institutions, economic systems, market incentives, education, administrative structures, and cultural factors.
In fact, one of the key points made by Daron Acemoğlu , an economist at MIT, is that it is not ignorance of better ways to do things that is preventing poorer countries from bettering their lot. Rather, it is the existing political institutions, elites in power, and economic structures and incentives, basically the vested interests that hold political and economic power, that hold the key to embracing change through inclusive powers, or resisting it to maintain corrupt and extractive regimes.
That is why the well-meaning development policies that have continued to be applied to poorer countries with extractive institutions and despotic, corrupt regimes have encountered so little success, as shown by the failure of IMF and World Bank and myriad NGO efforts to show how things should be done. By not addressing the incumbent forces in power, who have obvious incentives to resist efforts to redistribute power and dismantle their entrenched structures, we should the repeated cycle of aid and advisors coming into countries, sometimes regimes getting replaced through peaceful or violent means, but then the erstwhile liberators reverting right back into the repressive political regimes and becoming the next dictators, beholden to the entrenched elite who back them, rather than to the majority of people who continue to suffer from a lack of say in political decisions, lack of means to pursue business endeavors without fear of having any gains stolen by corrupt officials, lack of basic rule of law to preserve property rights, and lack of access to progressive education aimed at developing skills to pursue betterment for themselves and their families.
So the majority of the book explores dozens of examples in both antiquity, the middle ages, and the 19th and 20th centuries, of extractive (exploitive) political regimes and inclusive (democratic) political regimes and the difference in economic and societal outcomes that have resulted. It covers a lot of territory and history, including the Roman Empire, the Mayan city-states, medieval Venice, the Soviet Union, Latin America, England, Europe, the United States, and Africa, so is much more even-handed in its approach than Niall Ferguson for example, with his strong bias towards Western civilization and political/economic systems, particularly the UK and the US. While he does address initially the environmental factors that affect development by crediting Jared Diamond, he essentially leaves this alone to focus on political institutions, and by keeping that focus the argument is very lucid and consistent. He knows that there are cultural and environmental factors involved, but again and again makes the argument that political systems are the root behind the success and failure of nations and empires throughout history, regardless of culture or geography. From my perspective, it was quite convincing and a refreshing take that attacks the lazy Western attitude that "if poor countries would just imitate our political and economic and cultural institutions, they wouldn't be in such a mess."...more
A relentless tale of deceptions, betrayals, rebellion, gender identity, politics, with a royal accountant protagonist Kevin Wei’s review at Fantasy Li A relentless tale of deceptions, betrayals, rebellion, gender identity, politics, with a royal accountant protagonist Kevin Wei’s review at Fantasy Literature covers the themes and merits of this excellent book so eloquently that there isn’t much more I can add, other than to say this book is fiercely intelligent, frequently brutal in the moral dilemmas that its central character Baru Cormorant faces, and the world it depicts is incredibly detailed and complicated, just like our own world. It reminds me in many ways of N.K. Jemisin’s BROKEN EARTH series in its unflinching exploration of serious themes in a fast-paced, original, dark, and gripping narrative, and Yoon Ha Lee’s Ninefox Gambit in its treatment of gender identity and societal restrictions on sexuality.
In particular, this book delves deeply into what it means to deceive both others and one’s self in the name of seizing power for revenge. The layers of deceptions, facades, plots, betrayals, identity, control, rebellion, and suppression that infuse the characters and story are byzantine and yet fully controlled by author Seth Dickinson. It’s an oft-repeated cliche, but this does not read like a debut novel. To get a sense of how widely-read Dickinson is, read his FanLit interview with Kevin - fantastic insights that show just how deeply he has thought about these themes and issues, and Kevin’s questions are pure genius.
Overall, this book was both exhilarating and harrowing, and I particularly appreciated that the main character is a royal accountant who understands that both governments and rebellions need funding to survive, and the same goes for the military. It’s a subject that rarely gets detailed treatment in fantasy fiction, but it was very relevant to the story and gave it added realism. In fact, I was hard-pressed to find any magical elements in the story, much more like an alternate world with a fantasy feel to it.
Given the depth and complexity of the story, I think it is probably best read in print rather than audiobook to get the full effect, but narrator Christine Marshall does an excellent job nonetheless. It’s just that it’s harder to stop an audiobook to reflect on a certain passage the way you can with a print copy. If I had more time in my daily life, I would definitely read it in hardcopy. I’ve heard the author is working on a sequel, and it’s a no-brainer that it would go straight to the top of my TBR list....more
As funny, shallow and obnoxious as having a couple beers with neophyte investment bankers after getting their bonus "numbers". Love the part about theAs funny, shallow and obnoxious as having a couple beers with neophyte investment bankers after getting their bonus "numbers". Love the part about the endless rewrites of pitch books....more
A fascinating look at stock trader Jessie Livermore, a self-made speculator who made and lost fortunes repeatedly in the early 1900s, before the advenA fascinating look at stock trader Jessie Livermore, a self-made speculator who made and lost fortunes repeatedly in the early 1900s, before the advent of the Great Depression and securities regulations (no accident, I might add). The first part of the book is very interesting, covering his early swashbuckling days making money from "bucket shops", essentially unregulated stock gambling establishments where the house bets against unsuspecting customers. He gets so successful that he has to rotate among different locations and use disguises to avoid being discovered (a lot like modern-day card sharks or the movie "21".
Once he moves into more legitimate brokerage trading, the story gets quite repetitive detailing his various trading schemes, along with successes and failures. We do gain great insight on trading psychology and market behavior (mainly greed and fear, as Warren Buffet has explained), and it's ironic to realize that nothing has changed on the human side, just the technology and market complexity.
I couldn't give it a higher rating though since it doesn't go anywhere further with the story, and unless you actually are a trader, the thrill of beating your rivals gets old after a while....more
An Excellent Melding of Trade and Economic HistoryA wonderful history of trade and economic history of the very first exchanges of precious goods, disAn Excellent Melding of Trade and Economic HistoryA wonderful history of trade and economic history of the very first exchanges of precious goods, discovery of comparative advantage, backlash of protectionism, and the cultural differences that underpin how different countries have viewed trade and mercantilism and colonial expansion to feed market-driven economies. Really fascinating content for history and economics buffs, written in a intelligent but accessible style....more
Unapologetically Eurocentric Treatise on the Cultural Factors that Fueled the Industrial Revolution in England and the Dominance of Europe Until WWII,Unapologetically Eurocentric Treatise on the Cultural Factors that Fueled the Industrial Revolution in England and the Dominance of Europe Until WWII, and the Reasons Why This Has Not Happened in Some Other Nations This is a big, ambitious, opinionated, contentious, erudite, and detail-filled book. It's a spiritual successor to that seminal work by Adam Smith back in 1776, in many ways a modern sequel that seeks to drill down and understand why it is that there are such stark gaps in economic, political, and cultural development around the world, and how geography, scientific inquiry, religious dogma, the 'Protestant' work ethic (or lack of it), cultural chauvinism, imperialism, colonialism, commerce, greed, ambition, indolence, curiosity (or lack of it), and drive to betterment have combined throughout history to shape the complex and deeply unequal global society of today (actually, the book was written over two decades ago in 1998, so it is fascinating to see how things have progressed since then, and what affect that may have on his thesis).
I could try to write a massive review that covers the fountain of ideas, examples, and historical events he writes about with a dry, acerbic wit and keen intellect that seems very British (but in fact he is American). But that is a task far beyond my review-writing energy levels these days. Rather I was drawn to the book as a different approach to the same question posed by Jared Diamond in his excellent book "Guns, Germs, and Steel". Whereas Diamond's main thesis is that environment has had a huge and hereunto unacknowledged influence on the development of societies over the past millennia, leading to a revision of the prior assumption that European countries have dominated the world due to innate superiority in the past few centuries, Landes accepts that basic concept but then dives into the far more contentious subject of the role of cultures and religions on development and stagnation, leading to such diverse outcomes as we see today.
He gleefully goes against the politically-correct trend of attacking Western imperialism and exploitation and cultural chauvinism (White Man's Burden, Manifest Destiny) not by denying the wrong-doings of the past, but by re-examining the view that the West has exploited much of the developing world for its own benefit, while smugly justifying itself by claiming to be bettering the lot of those colonial subjects. He concludes this aspect is absolutely undeniable, so he is no apologist for Western imperialism, providing copious examples of the condescending and exploitive attitude Europeans have had towards Africa, the Middle East, South America, and Asia as they expanded their economic and political spheres of influence through empire-building.
However, and this is the crux of the book, many of the ideas that took root in modern Western countries also deserve credit for fueling their rise in economic and political power, not to mention promotion of less oppressive political systems than in the pre-industrial world, and though Western nations were often happy to celebrate enlightened intellectual and cultural ideas in their own societies while withholding them from their vassal states, these innovations did in fact improve the lot of millions of people that would potentially have remained trapped in feudal and religiously oppressive regimes for many more centuries without that disruptive Western interference and domination.
Does that make Western Imperialism justified, if the end-outcomes were positive? That would be far too simplistic a conclusion, as there is plenty of morally-dubious claims at play, but Landes goes to great lengths to show how British rule in India, for example, led over time to rapid political and social and economic development there that would almost certainly not have happened under Mughal or native rule (though we'll never know of course, this being an intellectual exercise). But I really respect his unflinching examination of the casual arrogance and superiority of the British colonial regimes and civil workers, along with the well-meaning urge to bring the 'light of civilization' and Christian ethics to dark continents, as they might have seen themselves. We can certainly decry this cultural chauvinism in our modern, global, and diverse society, but there are undeniable economic and political benefits that were bestowed through example from the British rule of many of its colonies, self-serving and exploitive though it may have been.
He then explores what has happened in so many former colonies and nations once they have been freed of the yoke of Western imperial rule, and sadly the outcomes have not all been positive, which some continue to blame on the Western powers exploitive treatment, half a century after gaining independence. While it's undeniable that much of the debt and political instability can be blamed on sudden independence following WWII, the contrasting the economic emergence of the biggest losers of the war becoming the biggest economic winners (Germany and Japan) and the Asia Tigers with the stagnation, instability, civil wars, corruption, and religious fundamentalism seen in the Middle East, Africa, and South America since gaining independence and self-agency can be firmly attributed to cultural values that discourage innovation, impose religious dogmas, suppress the role of women, reward cronyism, protect a corrupt elite, and encourage dysfunctional socialist political systems. Given today's atmosphere of political correctness and the taboo of criticising any non-Western culture, and blaming it all on the West, I thought this was a refreshingly brash and unapologetic view and provided much food for thought....more
A fairly interesting collection of articles on unusual data correlations in various aspects of life that people would not normally have considered. DoA fairly interesting collection of articles on unusual data correlations in various aspects of life that people would not normally have considered. Doesn't add up to a book as such, but very entertaining....more
A call to arms to address global warning, population growth, fossil fuels, renewable energy, and the desire of developing countries to achieve first-wA call to arms to address global warning, population growth, fossil fuels, renewable energy, and the desire of developing countries to achieve first-world lifestyles. Told in Friedman's typically earnest, simplistic, and fairly cloying style. Reminds me of a less intelligent Jared Diamond....more
"Michael Lewis is great at making fun of financial hubris and foolishness, and Boomerang is no different. It is a form of "financial disaster tourism""Michael Lewis is great at making fun of financial hubris and foolishness, and Boomerang is no different. It is a form of "financial disaster tourism", where he visits Iceland, Greece, Ireland, and Germany, and tries to examine how these economies got entangled in the US subprime mortgage mess and general irrational exuberance that led to the global financial crisis. By the end of it, I felt like the Eurozone is in for some very hard times ahead (obvious if you follow the news, of course). Still he comes full circle at the end to California to examine the fallout in local US governments and how they too are still deeply in the hole. Hard to know whether to be entertained or horrified, but definitely an eye-opening account of the European side of the crisis from a very American perspective."...more
"An interesting view of the four major central banks (US, England, France, Germany) during the period after WWI as they sought to reconcile the excess"An interesting view of the four major central banks (US, England, France, Germany) during the period after WWI as they sought to reconcile the excessive reparation demands made to Germany, which unfortunately wrecked any attempts to rebuild there and laid the seeds for hyperinflation, the Nazi movement, and finally WWII. A rarely explored perspective on how monetary policy is closely intertwined with global politics."...more
"A good primer on how the World Bank and IMF view economic development in emerging nations and how their efforts to promote growth often backfire, and"A good primer on how the World Bank and IMF view economic development in emerging nations and how their efforts to promote growth often backfire, and how the resultant austerity solutions to excessive debt tend to exacerbate the problem and cause further misery. Not sure if countries would be better off without any IMF/WB interference, but clearly they need to reexamine their policies, especially after a number of prominent policy failures. The author actually served as chief economist at the World Bank, so his views carry more weight than usual. Eager to read his follow-up Making Globalization Work."...more
"The classic sendup of investment banking and all the colorful characters who occupy this insulated world where money flows to those who are able to f"The classic sendup of investment banking and all the colorful characters who occupy this insulated world where money flows to those who are able to find a steady stream of greater fools to sell financial products to. Absolutely hilarious story told from his personal experience of the high-flying 80s."...more
"A very revealing and thought-provoking look inside the secretive Wal-Mart corporate mind, which takes a neutral but critical look at how Sam Walton's"A very revealing and thought-provoking look inside the secretive Wal-Mart corporate mind, which takes a neutral but critical look at how Sam Walton's relentless pursuit of greater cost efficiency and distribution innovations created a retail juggernaut, but the withering effect on its suppliers that forces them to cut costs by 10% every year or face extinction. Now we also know that Wal-Mart short-changes its employees on healthcare and instead encourages them to go on welfare and Medicaid, essentially letting the government foot their medical costs. Is this successful capitalism or socially irresponsible? Lots of telling details about this often-maligned (and justifiably so) company from Bentonville, Arkansas."...more
"In my opinion, the best description of how the subprime mortgage crisis emerged from Southern California, with a detailed expose of the mortgage brok"In my opinion, the best description of how the subprime mortgage crisis emerged from Southern California, with a detailed expose of the mortgage brokers, gullible home buyers, greedy investment banks, yield hungry investors, lax regulators and excess liquidity, all worked together to create a massive financial crisis that we still have not recovered from."...more
"Presents the now-familiar argument that the benefits of globalization outweigh its demerits. The text is overlong, repetitive and filled with endless"Presents the now-familiar argument that the benefits of globalization outweigh its demerits. The text is overlong, repetitive and filled with endless anecdotes about insightful chats with cab drivers, hotel staff, tech support, etc. Still, it does make a decent case that we are better off embracing globalization and making the best of it than trying to resist it. Just one too many simplistic concepts like the McDonalds' Theory of Conflict Resolution. Worth reading as a counterpoint to books like Stiglitz' Globalization and its Discontents, though Stiglitz is a far more insightful and intelligent thinker and writer."...more
"An enjoyable collage of stories of the financial crisis and how many participants were making far too much money to stop and think about the inevitab"An enjoyable collage of stories of the financial crisis and how many participants were making far too much money to stop and think about the inevitable denouement that was coming. As always, Michael Lewis can elicit laughs of recognition as he skewers the greed and arrogance that drive Wall Street, along with the naive investors who continue to play into it."...more
"My favorite book on how financial chicanery, misuse of mark-to-market accounting and off-balance sheet entities, and thoroughly compromised auditors "My favorite book on how financial chicanery, misuse of mark-to-market accounting and off-balance sheet entities, and thoroughly compromised auditors led to a brief but amazing rise of an energy-trading giant that quickly collapsed as it's dubious accounting methods could no longer hide its massive losses. Very topical even now, and explains the electicity deregulation crisis that hit California in 2000."...more
"An excellent book about how a group of super smart financial gurus set out to beat the system using advanced mathematical models and relative value ("An excellent book about how a group of super smart financial gurus set out to beat the system using advanced mathematical models and relative value (arbitrage) strategies, which did work for a time before succumbing to their own success, and were done in by the Asian and Russian currency crises. Probably the best book on the subject of hedge funds and credit arbitrage for non-experts."...more
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