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Daniel

China can’t make it rain

by Daniel on February 14, 2008

I have a post up at the Guardian blog on the general subject of it not being terribly practical to assume that if we all shout hard enough at the Chinese government, they will wave their Chinese magic wand and the Darfur crisis will go away. In the post, I unaccountably forgot to link to Alex Harrowell at Fistful of Euros, who inspired the post by reminding me that I held this view. I’m now correcting this (frankly the CT referral stream is probably a little less, shall we say, problematic[1] than the Comment is Free one). So let the circle-jerk be unbroken, etc. Sorry Alex.

In general, though, and I didn’t explore this enough because it would have looked like rambling, a lot of people seem to think that the Olympic Games is the most important thing in the world to China. How much do we think they really care about it going well? I mean, seriously, we are going to be hosting this thing in London soon, and if it really is true that major world governments regularly make massive shifts of geopolitical influence in order to avoid a few slightly embarrassing scenes at their opening ceremony, then I am rather worried about what the rest of the world might have planned for us.

[1] No, let’s say “insane”

Gentlemen don’t bug their MPs’ conversations

by Daniel on February 8, 2008

The UK is all agog at the moment over the bugging of an MP’s conversations with one of his constituents, while the constituent was being held by police on (apparently credible) suspicion of terrorist offences. There seems to be quite a debate going back and forth about whether the “Wilson Doctrine” (basically forbidding the tapping of MPs’ telephones and commonly thought to also rule out bugging them in more modern ways) has any place in the new world order. I think this is a very easy question to answer, along game-theoretic lines not a million miles from those suggested by John in a post on the general subject of bugging and spying a couple of years ago. All one has to do is to remember the following fairly basic general principle, which would hardly make it onto the syllabus at most decent business schools because it’s so obvious:

If you create the presumption that the cops can hear anything that you tell an MP, then people will only tell their MP things that they would be happy to tell a cop

I would guess that there are plenty of people in the Muslim community in Tooting who would tell Sadiq Khan MP things that they would not tell the police. I would further surmise that the general security of the British public (ie me) is benefited to some small extent from the fact that there are people in the Muslim community in Tooting who would tell Sadiq Khan MP things that they would not tell the police. I rather suspect that the bod who decided to bug Sadiq Khan’s conversation with Babar Ahmad was concentrating purely on his own case and did not consider the more general ramifications of undermining the general principle that MPs conversations are not directly accessible to the police.

Of Development and Debt

by Daniel on January 25, 2008

note: I originally wrote this for the Dani Rodrik seminar. As it grew, though, it became apparent that it didn’t really have much to do with “One Economics, Many Recipes” and that it was thus a bit unfair to ask Dani to comment on it. On the other hand, I liked it too much to kill it altogether – dd

“One Economics, Many Recipes” makes a lot of useful and constructive suggestions about how to attack the central problems of economic development. However I don’t think it gives enough emphasis (fundamentally because I don’t think it’s possible to give enough emphasis) to international debt as a constraint on development. Nearly all of the success stories in the book relate to countries which started their periods of development without a large debt burden, and the presence or absence of large net external debt is certainly one characteristic which matches up well to the motivating stylised fact in the book – the distinction between those countries like Argentina which followed all the standard policy recommendations but didn’t develop and those like China which ignored them and did. In this essay, I’ll try and flesh out a few provocative views on the financial aspects of development policy, which in my view are just as important real-world constraints as the institutional real-economy factors that are the main subject matter of the book.

Actually, just as I don’t think it’s sensible to carry out international comparisons of crime rates without taking demographics and urbanisation into account, I don’t think that any kind of comparative analysis of developing economies can be carried out at all without conditioning on the debt burden. It’s that important. When you have a situation in which a country’s capital account is dominated by contractual flows payable in foreign exchange, that is far and away the most important fact about that country’s economy. This is because as long as the debt service constraint is binding (and I discuss what happens when it isn’t, below), then unless the country is receiving massive net transfers from abroad, the entire economic development program is going to end up being twisted toward a capital account constraint which almost certainly has nothing to do with a sensible locally-based development plan of the kind that Dani advocates.
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Apparently I am on “mea culpa watch” from Tyler Cowen, Picture me at present pursing my lips and flapping my wrist in the international signal for “ooh! Get her!”. I have looked at the NEJM study, had a look at some of the online discussion of it, and I think that few of my friends and few of my enemies will be disappointed to learn that my response is not so much “mea culpa” as “pogue mahone”. In particular, see below the fold for a list of apologies not forthcoming, additional castigation, and new heretics who need to be squelched.
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Closing the books

by Daniel on January 4, 2008

I have a minor annual tradition (as in, I did it once) of beginning the year with a short list of arguments that I am no longer going to have. As I said when I produced the first such list, while not necessarily claiming to have the definitive truth on these subjects, my views

“Are no longer up for argument, pending absolutely spectacular new evidence. I’ve had a number of arguments on all of these points over the last year; I’ve heard all sides, and I’ve made up my mind. If anyone has an argument which they genuinely believe to be new, go ahead, but don’t expect much. Please note also that I am no longer interested in methodological debates over the merits of statistical studies which purport to prove the matter one way or another on any of these propositions.”

It’s basically a way of clearing the decks of old pointless arguments, leaving room for new pointless and bitter arguments (I hope to post next week a short list of things that I plan to argue about a heck of a lot more, being a list of tacit assumptions made by other people that I regard as highly questionable). If you want to have a last go on any of the short list below, now’s the time, but otherwise it is books closed, I’m afraid; I have made a reasonable donation to the Grice United Fund which ought to cover any genuinely deserving intellectual charity cases. So here’s the list – it’s actually shorter than previous years.
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What do we owe?

by Daniel on December 12, 2007

On the front page of the Times today, it appears that the UK is attempting to wriggle out of its commitments to Iraqi employees of the British Army, even as we’re preparing to leave Basra. Part of me wants to believe that this is a matter of bureaucratic callousness rather than anything else, but as Brad DeLong says, the Cossacks work for the Czar – if people in David Milliband’s department are trying to wriggle out of a commitment that David Milliband made, then they’re doing it because he told them to, or because he doesn’t care whether they do it or not.

The last time we had a discussion of this on Crooked Timber, it turned pretty ugly pretty quickly, but I’m prepared to have another go. The general obligations of a country which is carrying out a morally unjustified war of aggression[1] to the locals of the country it is invading are set out pretty clearly in the relevant Geneva Conventions, but what special obligations exist to local employees?

Personally I think this is pretty cut and dried. On grounds of fairness, the invading power should not discriminate between its employees on grounds of nationality, so they have a duty to give local employees the same kind of protection against harm that they would one of their own citizens. On prudential grounds, it is fairly obvious that any country has a long-term interest in establishing a reputation for protecting its employees. I am not convinced by any of the arguments against, most of which seem to involve fairly empty assertions about whether people might have been accessories to war crimes, combined with a strange insouciance about whether these alleged offences should be prosecuted in a proper court, or enforced ad hoc by death squads.

If anyone wants to argue either side of the case, go ahead. If you end up being convinced by my view, then perhaps you’d care to express this opinion to the British government. As far as I can tell, the most effective means to doing this (by far – the difference to the next best alternative is orders of magnitude) is by writing a letter or email to your MP. Dan Hardie has got a lot of anecdotal evidence that these letters have made a big difference so far in preventing this issue from being swept under the rug. (Update: You could ask your MP to sign Early Day Motion 401, tabled by Lynne Featherstone MP, please).

Comments policy notice: Just to make it clear, although this is a genuine invitation to a discussion, it’s a sensitive issue and will be moderated with extreme prejudice. In particular, racial epithets won’t be tolerated any more than they are on other CT threads. I am not going to delete or disenvowel people just for using the word “traitor” or equivalent, but nor am I going to tolerate blatant trolling. In which context I remind readers that the requirement for a genuine email address with every comment is still there, and the fact that it’s not particularly consistently enforced is not something anyone should rely on.

[1] Albeit one that was probably legal within the strict terms of these things, which in my mind simply shows it’s already much easier to start a war than it ought to be.

Via Matthew Yglesias, this is enough to make a cat laugh. As I’ve argued elsewhere, although the Mearsheimer & Walt “Israel Lobby” does have a referent which is a real and definable set of groups and institutions, this lobby really doesn’t have all that much to do with Israel. Every time this slightly scary bunch of warlike, paranoid and rather right-wing people are asked to make a choice between the national interests of Israel and their own vanity politics, it’s Israel that gets shafted. Any concern over “divided loyalties” or what have you is completely misplaced – the “Israel Lobby” are nationalists of a completely imaginary state, one which has no meaningful politics of its own, no need to compromise with reality and no national interests other than constant war.

Note also that the well-known South Africa analogy, which has been pronounced to be intrinsically bigoted and anti-semitic by the wisest heads outside Israel, is considered normal politics by the head of government of that country. I begin to think that the Israeli state (which has, over the years, played its part in giving these nutters much more prominence and credibility than they deserve) has been lately finding the wingnuttier wing of American “pro-Israel” politics to be more trouble than it is worth. There are all sorts of reasons one might have to be less than happy with the human rights record of the State of Israel, but as far as I can see they don’t deserve to be blamed for the extremely negative contribution made to public debate in English-speaking politics by the political organisation trading under their name.

Bumper stickernomics

by Daniel on November 30, 2007

Dennis Perrin, who I’ve just realised is the same bloke as the Dennis Perrin I used to have really nasty flamewars with on a mailing list five years ago, has a post up which, among other things, mentions a bumper sticker he recently saw which read:

“As Hillary, Nancy and Jennifer Rise In Stature, They Give New Meaning To The Phrase Ho Ho Ho!”

Well it got me thinking. Quite a number of points, below. I tried, but failed, to keep the footnotes under control this time.
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Iraqi employees – the nightmare continues

by Daniel on November 26, 2007

Dan Hardie just emailed me with some news about the Iraqi employees campaign. God help us all, but the compromise asylum arrangements have been so poorly publicised that several Iraqi employees have been left searching the internet for information and ended up at Dan’s blog.

I have, with permission, reproduced the whole of his post below the fold, but in summary we’re basically making another call on your good nature. The last set of emails and letters to British MPs worked, in as much as they pretty directly led to the Milliband statement and the announcement of asylum and resettlement packages. However, it’s clear that we need to keep making the point (politely) that the British blog reading public has not forgotten about this one, and to insist that the policy is generously and efficiently implemented. So basically, we need people to send emails and letters to their MPs. Crooked Timber readers have done us proud in the campaign so far and I hope we can rely on your support once more.

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Busty barmaids and other developments in science

by Daniel on November 16, 2007

This week in evolutionary psychology fun and games (and via Marginal Revolution), I engage in the most shameless piece of dumpster-diving yet. A commenter on last week’s post picked me up for a tendency to pluck out the most ridiculous things I can find and present them as representative of the entire field of evolutionary psychology, rather in the manner of those irritating “Crazzzeeeee Postmodernists!” articles that you used to find in the National Review during the 1980s (or on “Butterflies and Wheels” now). I suspect that commenter is unlikely to be impressed with the latest find, because it comes from that world-renowned centre of evolutionary genetics research, the Cornell University School of Hotel Administration. On that age old question of “Do Sexy Waitresses Get More Tips?”.

Attention conservation notice / Irritation advance warning: If you think I’m going to get through this without making at least a few puerile jokes and maybe more, you’re probably wrong.
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The Undercover Apostate

by Daniel on November 13, 2007

Rather as Galileo and Newton used to make sure to profess allegiance to the doctrines of the Holy Church, “One Economics, Many Recipes” asserts firmly in its introduction that the book is firmly in the neoclassical tradition and that although substantial use is made of case studies, the author is a believer in the catchechism of econometrics – the validity of cross-sectional regressions as a means of extracting underlying structural facts. In actual fact, however, the first cross-sectional regression does not appear until page 170, and when it does it really does throw into sharp relief the weakness of cross sectional regressions relative to case studies (it’s a regression which uses one of those Freedom House indices as if it were an unproblematic proxy for “democratic institutions”) [click to continue…]

From the Department of “Are you absolutely sure about that?”, evolutionary psychology once more is on the march:

Love songs may rhapsodise “something in the way she moves”, but a sexy walk is not a sign that a woman is ready to become pregnant. In fact, a new study suggests that the way a woman walks changes during her monthly cycle, and that the most seductive wiggle occurs when she is least fertile.[…]

For the latest study, Dr Provost and her team dressed female volunteers in suits adorned with light markers, as used in Hollywood special effects departments, along the joints and limbs.

This allowed them to film each woman as she walked and then analyse her gait. They also collected saliva samples to find out whether each woman was in the more or less fertile phase of her menstrual cycle.

The women who were ovulating walked with smaller hip movements and with their knees closer together, New Scientist magazine reported. When 40 men were shown the images of the women walking they rated those in the less fertile part of their cycle as having the sexiest walks. […]

That makes evolutionary sense, because it would benefit a woman to advertise her fertility only to those men she believes would make a suitable mate. In contrast, men can pick up on the attractiveness of a woman’s walk from long distance, and it can therefore act as an unwitting signal to less appealing males whom she might not want to choose.

Hmmm. I think the best you can say about this is at least they did the right thing and went ahead and published these desperately unconvincing results rather than sweeping them under a rug.

I’m going to write a letter to my MP!

by Daniel on October 12, 2007

You know middle age has arrived when you think to yourself “I’m going to write a letter to my MP!“. It’s a tacit admission that your days of throwing petrol bombs are probably behind you and that you have been ground down and co-opted into the System, Man.

On the other hand, kids grow up much faster these days, so maybe it’s not as unfashionable as it used to be. Maybe if we all try, we can make writing a letter to your MP become the next cool craze among the hip, trendy, pipe-smoking, tweed-wearing crowd. Let’s all try it this evening – come back from work, stride through the door, hang your bowler hat on the stand and loudly announce to your long-suffering spouse or partner “Dammit, Muriel! I’m going to write a letter to my MP!”. Writing a letter to your MP is the new black.

What should we all write a letter to our MPs about? I know! How about the Iraqi employees campaign talking points?

  • David Miliband’s Statement on ‘Iraq: Locally Recruited Civilians’ of 9th October stated that Britain will help to resettle- in the wider Middle East, or in the United Kingdom- Iraqis who can prove that they have worked for this country’s soldiers or diplomats for a continuous period of twelve months.
  • Hundreds of Iraqis have been targeted for assassination for having worked for this country. Some have worked for a period of twelve months exclusively for the British and can prove this. Some have not but have been pinpointed for murder anyway. We have a responsibility to save these people from being murdered for the ‘crime’ of working for the British.
  • There are a lot of local employees who fled their jobs before 12 months precisely because they had been targeted, or who did a 6-month tour for one British battalion and were then told to go and work for the Americans, or who did 12 months or more with interruptions, or who the Army didn’t give proper documentation too.
  • Iraqi staff members must be given shelter not because of their provable length of service but according to whether they have been identified for murder by local death squads. This can be investigated on the spot by Army officers and referred rapidly to London: the process needs to start now.
  • Mr Miliband’s statement did not mention the families of Iraqi employees. As Iraqi militias also murder the families of their ‘enemies’, we must resettle our employees’ families as well. Mark Brockway, an ex-soldier who hired many Iraqis, estimates that we are talking about a maximum of 700 Iraqis to resettle: this country admits 190,000 immigrants net every year.
  • Iraqis have already been targeted for murder for having worked for this country. We will be shamed if we allow more to be killed for the same reason. Our soldiers, who are angry at this betrayal, and our diplomats, will be placed at risk if they gain a reputation for abandoning their local helpers.

I’d add that, of course, to tie the relocation package and thus the risk of death to 12 months’ continuous employment puts the employers of local staff in an utterly invidious position – how the hell do you manage your personnel and budget if you know that making someone redundant is tantamount to signing their death warrant? But anyway, come on folks, it’s so far out that it’s far in again! Write a letter to your MP! Seriously, write a letter to your MP. I am trying to jolly things along but it is a really important campaign. Write a letter to your MP.

Iraqi government bonds

by Daniel on September 18, 2007

Via Marginal Revolution and the Freakonomics blog, Michael Greenstone of MIT’s analysis of developments in Iraq since the beginning of the surge. Most of it is pretty unobjectionable stuff (if not terribly related to economics), but the bit that caught my eye was the use of the secondary market price of Iraqi government bonds (they’re tanking) as an indicator of whether the surge is working.

IRAQI EMPLOYEES CAMPAIGN UPDATE: sorry to interrupt – the post is continued below the fold. The following update is mainly aimed at our British readers – once more could I prevail on the goodwill of other CT authors to keep this one at the top for the rest of UK daytime? Thanks.

Frank Dobson, my local MP, has replied to me about the Iraqi employees. His letter is mainly concerned with administrative arrangements for the speaker meeting on the 9th – I had asked him to book a room for us, but Dan had already sorted one out. He is, however, in firm sympathy with the campaign and is utterly sound on the issue. If any readers who wrote letters the last time we asked have received replies from their MPs, then do please say so in the comments here (or if you have a blog, post them there). We’re trying to keep the list of MP replies up to date; Dan’s apparently having quite a good response to the mailing we sent out but it’s important to keep the blog campaign running too. Thanks very much.
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The lazy man’s way to business success

by Daniel on September 11, 2007

I’ve just realised that as well as the new academic year for PhD programs, it’s also graduate intake season in the world of proper jobs, and thus a new generation of CT readers will be entering the workforce. And thus, my “Advice to a Young Person”. I only actually have one tip.

Basically it’s this. If you are a young man or woman of fair-to-middling ability, or even a borderline dullard, but you want to get a reputation as an uncommonly bright and perspicacious thinker, it’s really not that hard to do. The secret weapon is this: take an interest in what happens in other countries.

It’s really quite unusual to find an important issue on which international comparisons aren’t worth knowing about. Even in situations which look purely domestic, you can often get an entirely new perspective on things by looking at your fundamental assumptions in the light of what happens overseas. There are few sights sweeter than the look on someone’s face after they’ve confidently proclaimed something to be impossible, only to be informed that they’ve been doing things that way in Australia for the last twenty years.

It’s also a great way to generate ideas; it’s both easier than coming up with something yourself, and more likely to succeed, to plagiarise something that’s already worked well in a different time zone. So few people bother to keep up with the international news that one doesn’t even need to be an expert in these things; simply reading the relevant pages of your daily newspaper will probably do, whereas reading the superficially more “relevant” domestic or business pages will usually just tell you a load of crap you know already, and tell it wrong.

So my advice to a young businessperson is to save ten minutes a day by not reading the domestic news, and spend them on reading the international news properly. Within six months of the graduate program you’ll see I’m right, not least because at least once or twice you’ll quite likely be asked to prepared an analysis of international comparisons by a senior executive who got where he is by following my method.

PS: another great tip is never put question marks on your Powerpoint slides, it always looks really weak.