UN Human Development Report 2004

by Chris Bertram on July 21, 2004

Via “Norm”:http://normblog.typepad.com/normblog/2004/07/un_human_develo.html , I see that the “United Nations Human Development Report 2004”:http://hdr.undp.org/reports/global/2004/ is out. Most of “the headline coverage”:http://edition.cnn.com/2004/WORLD/europe/07/16/norway.best/index.html is about various country rankings in the Human Development Index. Oil-rich Norway comes top, the US is 8th, the UK 12th, and France has slipped to 16th with Germany down at 19th. But, for the high-income nations, this is not particularly meaningful. As the report warns:

bq. The HDI in this Report is constructed to compare country achievements across all levels of human development. The indicators currently used in the HDI yield very small differences among the top HDI countries, and thus the top of the HDI rankings often reflects only the very small differences in these underlying indicators. For these high-income countries an alternative index—the human poverty index (shown in indicator table 4 and discussed in Statistical feature 1, The state of human development)—can better reflect the extent of human deprivation that still exists among these populations and help direct the focus of public policies. (p. 138)

So what rankings (p. 151) do we get for high-income countries on the human poverty index?

bq. 1 Sweden
2 Norway
3 Netherlands
4 Finland
5 Denmark
6 Germany
7 Luxembourg
8 France
9 Spain
10 Japan
11 Italy
12 Canada
13 Belgium
14 Australia
15 United Kingdom
16 Ireland
17 United States

Cold comfort for the advocates of the “anglosphere”, “anglo-saxon capitalism” etc etc. one would have thought. No doubt they’ll be posting shrill comments: “It just isn’t trooo!” etc.

{ 68 comments }

1

Doug 07.21.04 at 9:56 am

What, you mean it’s possible to juggle criteria to make Sweden and Norway look better than the US and the UK? Really?

Such a neat idea. Surprised it hasn’t been done before. I wonder what other fun could be had with statistics…

2

Bob 07.21.04 at 9:58 am

Chris,

Had you not realised that we were led up the garden path by New Labour in the run up to the 1997 election?

“The gap between rich and poor in Britain is at its largest in 13 years and poverty levels under Tony Blair exceed those under Margaret Thatcher, government statistics reveal.

“Figures from the Office for National Statistics for income inequality show that differences in disposable, post-tax income at the top and bottom of society have returned to levels last seen in 1990.

“The report shows that the ‘Gini coefficient’, an international measure of inequality, has increased from an average of 29 points under Baroness Thatcher to 35 points under Mr Blair. The figure for 2001-02 was 36 points.

“The gap between rich and poor, which was relatively static in the early Tory years, soared in the late 1980s and then declined slightly through the early 1990s. It began an upward trend in 1995 and continued to rise under Labour, which came to power in 1997. . .”

– from (subscription): http://news.independent.co.uk/uk/politics/story.jsp?story=405436

3

Pete 07.21.04 at 11:02 am

I decided to take a closer look at the table to work out why this was in the UK. Two things stand out. The life expectancy figures are slightly lower in the Anglosphere countries (for which we can blame health service problems and obesity), and the huge number of people under the $11/day poverty line. That figure really surprised me, so I tried to figure out what the minimum income from benefits was. It’s not at all clear from the various government websites, and is complicated by the NI system (some benefits are relative to your pre-unemployment income). The basic state pension is £77/week, which is
clearly above that line, and is a useful proxy for the amount of money the government thinks is a minimum.

I’d really like to know who those 9.5 million people on below $11/day are, and why they don’t show up in politics demanding more.

4

yabonn 07.21.04 at 11:19 am

Why do these statistics hate anglo saxon capitalism so much?

The ranking is not bad, but seen the goverment we have now in france, i wouldn’t be surprised to see a downward trend there in the next years.

5

Sam Dodsworth 07.21.04 at 11:29 am

That’s $11/day in 1994 PPP-adjusted dollars, if I read the notes right. I don’t know how that converts to 2004 UK pounds.

If you’re looking for what the government thinks is a minimum, then the benefit to look at is Income Support, which is what you get if you’ve not made enough National Insurance contributions to qualify for Unemployment Benefit. That comes to £42.70 a week but isn’t intended to cover rent, which is paid by local authorities as Housing Benefit.

6

Andrew Boucher 07.21.04 at 12:46 pm

Chris seems to have preconceived ideas about Anglo-Saxon capitalism or maybe just capitalism in general and therefore latches on to whatever figures seems to support his case.

I don’t think many would deny that Anglo-Saxon allows for more poverty than the continental European model. The leap is from that singular statistic to conclusions about some concept called “Human Development.”

There are obviously advantages and disadvantages in both Anglo-Saxon and continental economic and societal structures; they do good jobs in certain things, bad jobs in others. Maybe we should leave it at that, rather than thinking some linear ordering with a Top Ten or a Top 20 has any meaning.

7

Rod Dacombe 07.21.04 at 1:26 pm

I agree. I’m not sure that this tells us very much, except that Nordic welfare regimes are probably better at reducing relative levels of poverty – which we already knew.

8

bull 07.21.04 at 1:32 pm

When the poor of the world stop battering down the door to get into the U.S., I’ll start losing some sleep over such rankings.

9

tim a 07.21.04 at 1:35 pm

Norway and Sweden win by virtue of their vastly superior heavy metal bands.

10

Kevin Donoghue 07.21.04 at 2:22 pm

AFAICT the gist is that countries which have relatively rapid growth (and therefore attract immigrants), and which also tolerate substantial inequality, bring up the rear. So far as the last three in your list are concerned you could trace that stance back to Thatcher, Reagan and (in Ireland’s case) near-bankruptcy in the early 1980s as our politicians gave rampant profligacy a bad name. (We used to say that our fiscal policy was designed to pull the world out of recession.)

I am puzzled as to why Belgium trails so far behind Spain. Any ideas?

11

Kevin Donoghue 07.21.04 at 2:37 pm

“What, you mean it’s possible to juggle criteria to make Sweden and Norway look better than the US and the UK?”

Since Norway also has a higher level (and growth rate) of GDP per capita, it might be a challenge to juggle criteria so as to push it below the US and the UK.

12

Zizka 07.21.04 at 2:54 pm

“I don’t think many would deny that Anglo-Saxon allows for more poverty than the continental European model”.

There are actually various arguments that poverty is a good thing, based on ideas of original sin, individual responsibility, labor discipline, motivation, just desert, etc. You will hear these ideas stated publicly from time to time among the Republican faithful in unofficial contexts.

I have never heard a conservative complain recently that there was too little poverty and that people were getting soft, but I remember reading stuff of that kind from the great age of capitalism (ca, WWWI by someone in Wilson’s cabinet).

I believe that the good conservative response to poverty is a genteel “out-of-sight, out of mind” ameliorated with little charitable gestures. It’s not something to talk about in polite society. The social-problem approach is to be avoided, since society has been shown not to exist. Veiled references to certain historical factors deriving from the Emancipation Proclamation are allowed.

13

harry 07.21.04 at 3:15 pm

Zizka’s putative defences of poverty are distinctly odd, at least in making comparisons between countries. They require some system-independent account of how much the lazy and irresponsible should get relative to the hard working and responsible, which conservatives have a hard time providing. (Not accusing you of this, zizka, obviously, just your putative conservatives). Since the only country in the list with notably greater relative social mobility than the others is Sweden, that is the only country in which we have any reason to believe that the kinds of traits conservatives want to reward and punish are better rewarded than in the other countries. But even that may be deceptive because sociologists measure relative social mobility NOT by reference to the social distance travelled, but by reference to the movement relative to others. Since Sweden is more equal than most other countries, the socially mobile don’t move as far as in, say, the US, at least in some intuitive sense of ‘distance’.

The other argument for poverty/inequality is that it’s good for growth. This turns out to have no empirical support (within the domain of rich countries), as Goodin et al show in *The Real Worlds of Welfare Capitalism*. And even if it did, economic growth, above a certain level that the coutnries on the list have already passed, has very little relationship with human wellbeing.

I agree with Andrew Boucher that any index like this is highly subjective — reducing relative poverty isn’t the only good thing (although it is, in fact, an enormously good thing, and would get very heavy weighting in any sensible index for rich coutnries). But what, exactly, do the anglosphere countries do better than the Nordic regimes that really matters for the wellbeing of their citizens? Not at all clear to me that there’s any serious contender for an index on which they’d come close.

14

Michael Otsuka 07.21.04 at 3:19 pm

I think the USA’s low ranking is misleading because it fails to take into account all of the benefits which the poor enjoy under Bush — such as their ability to win millions in the lottery and bequeath it all to other poor people without having to pay any estate tax.

15

Dave 07.21.04 at 3:42 pm

I suspect that the number of folks in the U.S. below the poverty limit given in the report is due to counting people who are in the U.S. illegally – since the minimum wage and pretty much any form of government assistance would put a person above that line, even in the U.S. If that’s true, it’s horribly unfair – you might as well mark down the U.S. for all the poverty in Mexico, or France for Africa.

That said, the numbers are misleading, because they’re only one component of the HDI. If I remember the news reports, overall, the U.S. was #8, right in the middle of the pack.

16

Alex Halavais 07.21.04 at 3:43 pm

harry: “But what, exactly, do the anglosphere countries do better than the Nordic regimes that really matters for the wellbeing of their citizens? Not at all clear to me that there’s any serious contender for an index on which they’d come close.”

If I was worried that I had no patriotism left at all, this really called it back up…

Number of Nobel prizes per capita? (Actually, I think they might take this, but they do have a home field advantage.)

Patents per capita?

Railway miles?

Firearms sales?

Exploded ordinance over the last decade, in tons?

Cacti counts?

Teen pregnancy and infant mortality? (Er, that is, we beat them in this by having more of both.)

We have more lawyers, prisoners, fast food workers, surfers, and pro wrestlers.

Blogs? Balls of twine? Fords (no j)? Nuclear weapons?

17

Anglo-Saxon Capitalist 07.21.04 at 3:53 pm

It just isn’t trooo!

18

Henry 07.21.04 at 4:15 pm

bq. I have never heard a conservative complain recently that there was too little poverty and that people were getting soft, but I remember reading stuff of that kind from the great age of capitalism

Just haven’t been listening to the right conservatives – cf John Holbo on “David Frum”:http://examinedlife.typepad.com/johnbelle/2003/11/dead_right.html for dissection of a modern version of this trope.

19

BigMacAttack 07.21.04 at 4:23 pm

How can someone so smart regurgitate such utter bilge?

The HD poverty index is based on 50% of income. Those making less than 50% of some income level are considered poor.

So in the US GDP per capita is 35,400 and in Spain GDP per capita is 14,580.

So in the US 50% of GDP per capita is 3,400 more than Spain’s GDP per capita.

So using that income level someone poor in the US has an income 20% above the average Spanish income.

Now I don’t want to shovel my own load of crap.

So, yea, the HDPI is measured at 50% of median household income and for a cross country measure it would probably make sense to adjust for PPP.

I have always wanted to actually do this, it’s easy and it makes sense, but can never find the data, raw household income numbers by country, the numbers used by the HD, and PPP adjusters for the given year, free and easy on the internet.

(I have no idea what the results would be, maybe the US would still rank 17, maybe all the results would pretty much stay the same, meaybe this has been considered and I am being a little harsh by using the term bilge, but I doubt it.)

If anyone knows where I could find the data, free or otherwise, please post a comment.

That would be great.

In the meantime it might or might not be troooo but I says the measure stinks.

20

harry 07.21.04 at 4:40 pm

bigmacattack,

in several countries high on the list the absolute poverty levels are lower than in the US, adjusting for PPP. I can’t give you page cites, but I dredged this a couple of years ago out of a combination of the Goodin cite above, Lipset and Martin’s *It Didn’t Happen Here*, and Nancy Folbre’s *Invisible Heart*, and Sen’s Development as Freedom. Sorry I can’t be more helpful.

BUT, it doesn’t matter, because relative, not absolute, poverty is what matters in a rich society, even adjusting for PPP. ABove a certain level of material wellbeing, how well off one is depends enormously on how well off others are. SO many goods — from self-respect and social status to access to political power — are strongly connected to one’s position relative to others. The HDI is flawed in many ways, but on this it is absolutely right.

21

BigMacAttack 07.21.04 at 5:12 pm

harry,

Thanks. I will check it out.

I can see measuring poverty in a relative(or semi-relative) manner within a country. Especially with some goods and services like health care.

But across nations? No way. As I noted above the results become absurd.

Poverty as mostly or soley a psychological phenomena? Hmmmmm.
Conservatives have been making that claim for years. I don’t think the general public is all that interested in eliminating such poverty.

22

rea 07.21.04 at 5:30 pm

“I have never heard a conservative complain recently that there was too little poverty”

A couple of months ago I heard Betsy DeVos, Chairwoman of the Michigan Republican Party (she got the position by being a billionaire and wife of one of the Amway founders) explain that the problem with the economy was that workers’ wages were too high. Does that count?

23

bull 07.21.04 at 6:17 pm

Ratings like these remind me of the New York Times ratings of best movies. They’re actually the movies that the critics like best and not the ones that people like best. While I tend to prefer the critics’ views over the average person’s, the result is skewed toward the views of UN bureaucrats and CT readers.

So what are the people’s views? Where do people emigrate to? Are they dying to go to the Scandinavian countries, and do our perfect blond cousins welcome them with open arms? Apparently not. They go to those nasty old anglo-saxon countries.

http://www.nationmaster.com/graph-T/imm_for_pop

24

Giles 07.21.04 at 6:50 pm

what this table actually measures is where someone who wants to work on poverty* would want to live.

* Social workers, sociologists and other middle class state-sponsored welfare spongers!

25

Sebastian Holsclaw 07.21.04 at 6:52 pm

There are 4 factors in the HPI-2 I will take them individually.

1. Probability at birth of not surviving to age 60. This, like life expectancy statistics, is influenced by the fact that the US is much more agressive in treating premature births, and does not count them in the miscarriage statistics. This is also influenced by US lifestyle choices (unhealthy compared to many) and by high rates of immigration (immigrants often come from countries with poorer nutrition in formative years, which cannot entirely be made up later.)

2. Literacy Rates. See very high levels of immigration.

3. Long term unemployment. Hey we score well here. Which is interesting considering our very high levels of immigration.

4. Poverty rates. We score worst on %of people below 50% of median income. Which in a rich country stikes me as a very poor indicator of poverty. Ohh, and also see our very high levels of immigration.

Now I don’t want you to come away from this thinking that I’m anti-immigration. I’m not. I’m actively pro-immigration. Anyone who wants to become an American in ethos and citizenship should come here. I’m just saying that it isn’t surprising that we have a slightly lower literacy rate when we absorb so many people who don’t speak English as their first language. Same concepts apply to the other statistics.

“BUT, it doesn’t matter, because relative, not absolute, poverty is what matters in a rich society, even adjusting for PPP. ABove a certain level of material wellbeing, how well off one is depends enormously on how well off others are. SO many goods — from self-respect and social status to access to political power — are strongly connected to one’s position relative to others. The HDI is flawed in many ways, but on this it is absolutely right.”

This is a political judgment, not an ‘indicator’ of poverty. It is a political judgment not shared by a majority of the US population, therefore it is not surprising that the US does ‘worse’ than countries where it is a political judgment that is shared.

26

dsquared 07.21.04 at 7:08 pm

Sebastian, the USA has just shy of 20m inhabitants who were born elsewhere, of which 3.4m were born in places where the life expectancy is either higher or statistically insignificant from that of the USA. (UK, Canada, Germany, Italy, Cuba). It’s just not plausible to assume that this is a major factor in the life expectancy numbers for the USA.

27

Dave 07.21.04 at 7:32 pm

If the “poverty level” is being set at half of median income then all you are measuring is inequality, which due to cultural factors is higher in Anglo countries. You haven’t demonstrated anything negative or positive about those countries relative to others unless you come up with a measurement that is absolute for all countries involved.

28

mc 07.21.04 at 7:34 pm

1 Sweden
2 Norway
3 Netherlands
4 Finland
5 Denmark

My memory may be poor but I seem to remember that in those lists about overall quality of life, these are the European countries that tend to come up higher. (Including outside of Europe, Canada usually beats them all).

I don’t much care for lists, and certainly don’t give a toss for that kind of competitive-nationalist mentality with which some people seem to be interpreting them. My milkshake is better than yours anyway. But anyone who’s been to those countries just knows how much better they have it.

“Norway and Sweden win by virtue of their vastly superior heavy metal bands.”

Nah. You can dance, you can sing, having the time of your life. That’s what single-handedly upheld the quality of life in Scandinavia.

29

Kevin Donoghue 07.21.04 at 7:49 pm

If D^2 is right about the number of foreign-born inhabitants in the USA then there is something wrong with Bull’s “Nationmaster” chart which shows 10.4% foreign population.

With regard to Sebastian Holsclaw’s comment: life expectancy for African Americans is very low – lower than in some extremely poor countries. Surely that is what drags the average down.

30

harry 07.21.04 at 7:51 pm

I’d have said it was an empirical judgement, Sebastian, though it’s hard in these kinds of cases to distinguish moral and empirical judgements. Sure, most Americans may not share it. If so they are wrong, I think. I think careful investigation would show them that relative poverty is a greater threat to the things they think constitute good aspects of life than absolute poverty, as long as some level of economic wellbeing has already been achieved (which it has in OECD countries). They still might make a political judgment that it doesn’t matter, because relative poverty is fine if people are lazy and irresponsible. Then they’d have to answer the questions I quasi-posed to zizka. I’ve never seen serious answers to those questions (that is, answers that do not take the status quo in the US as the only possible standpoint from which to answer them). Or they might make a political judgment that relative poverty doesn’t matter for other, as-yet-undisclosed reasons, and we could have a useful chat about it.

31

Sebastian Holsclaw 07.21.04 at 8:06 pm

Actually my immigrant hypothesis for life expectancy is just flatly wrong . On average US immigrants live longer than those born here. I’m not sure how that interacts with the live to 60 stat, but unless something shocking happened it seems that it would be similar.

Point still stands about immigrants and literacy and the amazing fact that we can have such low unemployment despite taking in so many immigrants. But I was wrong about the life expectancy issue (with repsect to immigrants–lifestyle choices comment still applies)

32

Sebastian Holsclaw 07.21.04 at 8:16 pm

Frankly, I and many Americans do not see relative poverty (at least as expressed in the US) as much of a problem at all. The absolute wealth of even the lower-middle class is incredibly high.

It isn’t shrill to notice that the US makes policy choices that Europe disagrees with, so a statistic that directly measures that policy choice will of course reflect that policy choice. And therefore a ‘ranking’ which relies on that for 1/4 of its score will obviously put the US lower on the chart.

Just as a chart which counts religous freedom as important might cause problems in the ranking for France since the headscarf-banning, or a chart which counts libel laws might depress the ranking of the UK.

33

harry 07.21.04 at 8:25 pm

bq. Frankly, I and many Americans do not see relative poverty (at least as expressed in the US) as much of a problem at all.

I’m sure you are right. Oddly, though, it has always seemed to me that in the US more than anywhere else I know (which is really just the UK, Ireland, and France) the (relatively) poor are at a greater disadvantage; i.e. more socially excluded. Partly because of the lousiness of public services, partly because the population sparsity makes it easier to exclude them, partly because race is so significant, and partly, probably, because I’ve lived here 1986 on, in a time when the poor are so unself-consciously despised in the public culture.
The first 3 probably account more than the apparently spectacular wealth of the lower middle classes for people not caring much about it.
But this is all anecdotal, conjectural, and strictly inadmissable in formulating indices.

34

dsquared 07.21.04 at 8:26 pm

Kevin: glancing again at the OECD website where I got those numbers from reveals that they’re quite out of date; 19m out of 225m is close enough to 10.4% for me to think that yer man’s chart is probably right.

35

Bob 07.21.04 at 9:05 pm

Of course, it doesn’t help to alleviate poverty in anglo-saxon Britain when this sort of thing happens:

“The former head of the National Local Government Forum Against Poverty has been charged with fraud following police investigations into allegations that money had gone missing from the fund.

“Garvin Reed, former national convenor and finance chair of the organisation, was charged on Friday with conspiracy to defraud following a two-year investigation, codenamed Operation Fear, by fraud officers from South Yorkshire police. . . ” – from: http://society.guardian.co.uk/localgovt/news/0,8368,467435,00.html

“The former deputy leader of Rotherham Council has been sentenced to three years in prison for plotting to steal £172,000 from a charity. Garvin Reed, a Labour councillor, admitted spending thousands of pounds of a charity’s cash on prostitutes, lavish hotels, meals, and outings. . ” – from: http://news.bbc.co.uk/1/hi/england/2511047.stm

“A council at the centre of a police fraud inquiry has been criticised in an independent report for blatant junketing which cost the taxpayer hundreds of thousands of pounds. . . ” – from: http://news.bbc.co.uk/1/hi/uk/40990.stm

36

BigMacAttack 07.21.04 at 9:06 pm

harry,

Very little or no help for the lazy and irresponsible. Some very bare minimum.

Because curing poverty caused by laziness and irresponisbility is a greater threat to the good life than that poverty.

37

Omri 07.21.04 at 9:16 pm

Any reason why I should pay this index any more attention than I pay to the US News college rankings?

38

Steve Carr 07.21.04 at 9:33 pm

Harry, your argument for why relative inequality matters is at core a psychological one, since as you it’s not absolute, purchasing-power-adjusted wealth that matters but rather relative wealth. And so inequality, you say, has negative effects on “self-respect” and “social status.”

But if the vast majority of Americans, including the vast majority of those who are “relatively poor,” don’t care much about inequality — as, for instance, a pile of papers from Alberto Alesina, et.al., suggests — then it seems implausible that it has the negative psychological effects you ascribe to it. And I can’t understand what you mean when you say that if most Americans don’t feel that relative poverty is a problem, they’re wrong, since by your own definition the real harm that “relative poverty” — and again we’re not talking here about people not being able to feed or house themselves, but about people whose income is low relative to the median, regardless of how high that is — is in large part psychological. How can people be wrong about how they feel about their experience of relative poverty?

That’s not to say that Americans are happy with low wages or job insecurity, etc. But that’s because they want to improve their absolute purchasing power, not to have society be more equal.

(Alesina’s work, incidentally, also suggests that not having a job — which is obviously a much bigger problem in most of Europe — is far more troubling to people than not being paid that well.)

39

Iain Murray 07.21.04 at 9:37 pm

Current foreign-born population of the US is estimated at 32.5 million, representing 11.5% of the population.

40

harry 07.21.04 at 10:27 pm

Steve,

the actual causes of our psychological states are not always entirely transparent to us, surely? We might think, ‘I’m being made miserable by my marriage’, when in fact what we are being made miserable by is our lack of exercise, or lack of sunlight, or whatever. Or vice versa.

Even if people did know, clearly, what caused their psychological states, the following story might be true:

1/3 richest say: “I’m doing very well out of the highly unequal distribution. Why should I care that some are doing badly?”

Next 1/3rd might say “I could be doing better, but at least I am not doing as badly as bottom 1/3rd, and I suspect that the kinds of policies that are really likely to be implemented to benefit bottom 1/3rd would not benefit me, in fact would damage me, because Top 1/3rd have so much power that they can insulate themselves from any redistribution”

Bottom 1/3rd might think: “I’m buggered”

I don’t think that is true, because I don’t think most people know what causes their sense of subjective wellbeing. But it would be a story consistent with full self-knowledge and both my claims.

I also believe, however, that there is a lot of resistance to redistributive policies on the kinds of grounds I have attributed to middle 1/3rd and rich 1/3rd, by the way.

bigmacattack
see your point. How strong it is depends on the actual policies proposed. I think the redistributive social democracies do better on good life grounds. Doesn’t mean that the US would, given the actual redistributive policies that would actually come out of the policy process, though. I have lots of sympathy with certain kinds of right-wing critiques of particular policies, while being completely out of sympathy with right wing opposition to redistribution in general.

41

Bob 07.21.04 at 10:53 pm

There is in all this, I think, a serious risk of the abuse of the descriptive qualifier: “anglo-saxon.”

While it is certainly intended to be pejorative in parts of mainland Europe – as when the Belgium finance minister in 1996 said that European monetary union was about “preventing the encroachment of Anglo-Saxon values in Europe” – it is none too clear what the intended connotations were. Personally, I believe the expression relates to an embedded preference for common law systems over the code Napoleon and for empiricism over rationalism. And that it also represents the antithesis of political traditions often labelled “dirigisme” or “statism” or what Edouard Balladur, a Conseravtive prime minister of France, meant when he said in 1993, “What is the market? It is the law of the jungle, the law of nature. And what is civilisation? It is the struggle against nature.” – quoted at: http://yoz.com/wired/1.01/features/culture_war.html
http://www.economist.com/displayStory.cfm?story_id=719888

It can be seriously argued that the distant historic roots of governmental welfare provision for the poor and needy go back to the Elizabethan poor laws in England: http://www.victorianweb.org/history/poorlaw/elizpl.html

What I do not believe is that there is anything necessarily inherent in anglo-saxon traditions to explain this:

“The Department of Defense, already infamous for spending $640 for a toilet seat, once again finds itself under intense scrutiny, only this time because it couldn’t account for more than a trillion dollars in financial transactions, not to mention dozens of tanks, missiles and planes. . . A GAO report found Defense inventory systems so lax that the U.S. Army lost track of 56 airplanes, 32 tanks, and 36 Javelin missile command launch-units. . . ” – from: http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2003/05/18/MN251738.DTL

In any event, Europeans, anglo-saxon or otherwise, have no special reason to feel smug:

“[Britain’s] National Audit Office has vowed to increase its scrutiny of EU spending after Europe’s own financial watchdog failed to approve euro accounts. The NAO stressed that problems in the management of the EU’s funds were a matter of concern, especially in view of worries over enlargement costs. . . The EU’s Court of Auditors failed to approve the EU’s accounts in November for the NINTH year in a row.” – from: http://news.bbc.co.uk/2/hi/uk_news/politics/3688241.stm

42

Andrew Boucher 07.21.04 at 11:02 pm

I think the relative-absolute debate has taken as given that American poor are better off in absolute terms than in continental countries. That just can’t be. I presume that, in the measure of income, free government-provided services, such as health care and a stronger safety net, are not included. These non-income benefits improve the well-being of the poor without increasing their (absolute) income. I guess this is just another argument against the definition which was used to define poverty.

43

Matt McGrattan 07.22.04 at 12:01 am

Excellent point, Andrew.

I had a quick look at the OECD figures on unemployment and the Euro zone as a whole does have a higher rate of unemployment compared to the US – 9.0% for the Euro zone versus 5.6% for the US.

However, the UK, despite a considerably stronger social safety net in fact has a lower unemployment rate than the US at 4.7%

First, I’d be wary of making too strong a connection between the so-called ‘anglo-saxon’ nations since UK social welfare policy does still seem to be substantially different from that practiced in the US.

Second, I’d also be wary of drawing too strong a correlation between unemployment levels and social welfare.

Of the three countries at the top of the poverty list given above the figures are as follows:

Norway, had unemployment figures of 4.3% at the last measure, Sweden of 6.7% and the Netherlands 4.9%.

It seems these countries are managing to do well on the poverty index AND maintain unemployment levels lower than or only marginally higher than that of the US.

44

Bob 07.22.04 at 12:31 am

“However, the UK, despite a considerably stronger social safety net in fact has a lower unemployment rate than the US at 4.7%”

As we can see from the UK government’s own job figures, from 2001, public sector job growth in both percentage and absolute terms has been growing faster than private sector employment: Table 3 in: http://www.statistics.gov.uk/articles/labour_market_trends/public_sector_jobs.pdf

Civil service jobs alone increased by more than 10% from October 1999 through October 2003. By press reports: “Last year, every week saw another 511 people enter the civil service. Since 1998, the numbers employed in the public sector have grown by 509,000.” – at: http://business.timesonline.co.uk/article/0,,8210-1177601,00.html

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harry 07.22.04 at 12:32 am

On unemployment figures — different countries do them differently. And the US imprisons a staggering percentage of its working age population, which might just result in artificially low unemployment rates compared with other countries that incarcerate less.

Andrew — I did in my defence point out that the relatively poor in many other OECD countries are less absolutely poor than the relatviely poor in the US. That’s without even adding in the considerations you adduce, which seem absolutely right. There’s probably something to say about pension rights, too, which vary a lot in their generosity, and probably don’t count as income, although they should (though its hard to figure out how). Similarly (to the US’s advantage, this time) differences in upfront costs of goods like higher education.

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Bob 07.22.04 at 12:48 am

“On unemployment figures – different countries do them differently.”

Eurostat produces “harmonised” or standardised unemployment figures for all EU countries, as here: http://europa.eu.int/comm/eurostat/Public/datashop/print-product/EN?catalogue=Eurostat&product=3-08012004-EN-BP-EN&mode=download

And with a short lag, the OECD produces standardised unemployment rates for the major OECD economies: http://www.oecd.org/dataoecd/5/63/29590575.pdf

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Matt McGrattan 07.22.04 at 12:52 am

The OECD report I quoted on unemployment claims (as far as I can see) to use the same standardised measure of unemployment so the direct comparison of figures seems fair.

Quote –

“he OECD standardised unemployment rates, compiled for 27 OECD member countries, are based on definitions of the 13th Conference of Labour Statisticians (generally referred to as the ILO guidelines). Under these definitions, the unemployed are persons of working age who, in the reference period, are without work, are available for work and have taken specific steps to find work.

The uniform application of the definitions results in estimates that are more internationally comparable than those based on national definitions”

If the claim re: imprisonment holds true (and I have no reason to think it doesn’t) then the US is in fact doing rather worse than most of the countries ranked higher on the poverty list.

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harry 07.22.04 at 1:03 am

Thanks Matt, yes that looks pretty uniform and does look as if the imprisoned would not coount as unemployed. There’s a dissertation topic here, someone.

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Paul Craddick 07.22.04 at 2:21 am

If one begins – as does the UN (cp. the Universal Declaration of Human Rights), and, apparently, Harry – from the premise that the Welfare State and its moral underpinnings are the expression of the most fitting or humane society, then the ranking in this report is not surprising. To pretend that the report somehow leads to – vs. from – that view is unwarranted.

As to the question “But what, exactly, do the anglosphere countries do better than the Nordic regimes that really matters for the wellbeing of their citizens?” …
It’s obvious what’s being asked, but a linguistic ambiguity – the referent of “their” – can be exploited to address a different question besides; the question could be read as either “what have the anglosphere countries done for their own citizens that is better than what Nordic countries have done for their own citizens?” (the natural and intended meaning), or “what have the anglosphere countries done for the citizens of the Nordic countries that is ‘better’ than what the Nordic governments have done?”

The Anglosphere countries (well, the U.S., and Britain to a point) provide their citizens with a military that is truly efficacious – able to forward-deploy and project credible force. So, for their own citizens, they offer genuine protection from foreign threats and adveraries. They – espec. the United States – also have implicitly and explicitly provided a defensive perimeter for other countries – ironically, facilitating the development of the welfare state in Europe, which for some is now emblematic of Europe’s moral-social superiority.

To answer the question that wasn’t intended: the Anglosphere has provided the citizens of Europe – including the Nordic countries – with something that their own goverments didn’t provide: a genuine security umbrella.

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Bob 07.22.04 at 2:48 am

Matt: “If the claim re: imprisonment holds true (and I have no reason to think it doesn’t) then the US is in fact doing rather worse than most of the countries ranked higher on the poverty list.”

I am not disputing your valid point about imprisonment in the US and the implications of that for the unemployment rate, whether standardised or not – btw believe me, I have heard that remarked upon by very senior and influential UK economists years back so it has not been missed. However, before boosting the reputation of the Eurozone, please note that the stats annex of Saturday’s The Economist shows the latest available Eurozone unemployment rate at 9%, which is higher than the US rate quoted therein at 5.6% even if we then add on, say, 2% to the US rate to adjust for the numbers of prisoners. We ought to note that with the prevailing monetary policy framework on both sides of the Atlantic, the unemployment rate is what ever comes from maintaining the inflation rate at or near the respective rates targeted by the relevant central banks. Market flexibility is the topical issue.

However, I do think it would be more illuminating to discuss how all this relates to the term “anglo-saxon”, which tends to be pejoratively deployed in mainland Europe but without any clear exposition of what precisely it is intended to connote. What is clear is that the UK has lower rates of both unemployment AND inflation than the Euzozone, and by significant margins. Why that is so ought IMO to be a challenging (technical?) issue for discussion.

It is also relevant to note that the UK has more imprisoned per head of population compared with other west European countries and, by accounts, one of the highest crime rates in western Europe in so far as it is possible to compare crime rates across national bondaries because of the differences in laws and reporting and recording practices. Comparing unemployment rates is a doddle compared with crime.

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Sam 07.22.04 at 3:23 am

Re the measurement of poverty using relative vs absolute income, I’ve never forgotten my university economics professor’s comment.

“Defining ‘poor’ as ‘less than 50% of the mean income’ means that if you discover an oil well in your back yard and nothing else changes, poverty in your town goes up.” The same would be true if you use the ‘50% of median income’ figure, although the effect would be less pronounced.

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q 07.22.04 at 3:44 am

Will this survey be used to make people move TO Sweden, Norway, Netherlands, Finland, Denmark and Germany and AWAY from Ireland and the UK?

If yes, I am all in favour of it!

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Peter Murphy 07.22.04 at 4:02 am

Bloatware. That’s what I have to say about Adobe Acrobat Reader. I’m trying to download it at the moment to read the report – all 16 M of it! How the hell did it grow from 5 Megabytes – the size of the last version I downloaded? Grumble aside, let’s get to the meat of the matter…

All the whinging about Anglo-Saxon Capitalism versus Continental Capitalism misses the point: the HDI seems to like Capitalism, period. If you jump to the meat of the matter, there’s a lot of capitalism at the top end – and pretty damned little of it at the other end.

Some of the people here appear to be whinging that the United States was relegated to a honorable eighth place in the ranking. Out of 177, that ain’t bad. Take your compliments like a man, you sons.

(What gets me is that Viet Nam – where I’m living – is ahead of South Africa despite having a fifth of the income. That’s very odd.)

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hutong 07.22.04 at 4:09 am

All caveats acknowledging the pitfalls of cross-country comparisons, etc…

Canada, for instance, has 67% more immigration (as a share of pop., 17.4% vs. 10.4%) than the US, yet Canada has better development outcomes: infant mortality, literacy, life expectancy, #’s of pop. in poverty, relative and absolute. (Interestingly, the UK has less than half the US rate of immigration).

Some (conservatives) claim that Canada gets a different “class” of immigrant than the US, more Asian, less Latin American. (Still poor, nonetheless). Even if true, the numbers aren’t sufficient to explain differential outcomes between US and Europeans/Canadians.

I believe one need look elsewhere for the main causal factor. The US has a substantial, and persistent, population of poor. Relatively and absolutely. Claiming US poor are better off than rich in the third world is not really the issue.

Whether US poverty might be alleviated with more generous welfare policies is another matter.

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q 07.22.04 at 4:35 am

I wonder how it varies across the USA?

Texas vs California vs Minnesota vs Illinois vs Colorado.

If you can’t afford to heat your home in Minnesota, you’ve got a problem. Less so in California.

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q 07.22.04 at 5:02 am

And on a related point, it would be worth getting separate figures for:
Italy-North,
Italy-Middle
Italy-South.

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cw 07.22.04 at 5:52 am

No one in the absolout vrs. relative poverty dispute has said anything about cost of living. Where I live in the US the median home cost is $200K. A gallon of milk is $2. A trip to the doctor is about $150. Etc.

The way poverty should be figured is at what percentage of the population in terms of earnings do you have to be at to afford the basics.

Depending on where you live in the US you can make $1500 a month and not be able to afford the basics. That same $1500 a month is a kings ransom in, say, india.

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Bob 07.22.04 at 7:56 am

Paul: “The Anglosphere countries (well, the U.S., and Britain to a point) provide their citizens with a military that is truly efficacious – able to forward-deploy and project credible force.”

The trouble is that didn’t work for the US in Vietnam just as it didn’t work for the Soviets in Afghanistan or for the French in Indo-China and Algeria. The only example since WW2 of a successful counter-insurgency campaign in an asymmetric war leading to a benign outcome seems to have been the British in the “state of emergency” in Malaya 1948-60. The eventual result was the independent, sovereign state of Malaysia.

I found this on Fourth Generation warfare illuminating: http://www.lewrockwell.com/lind/lind3b.html

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mc 07.22.04 at 11:38 am

Paul Craddick: if I had a dollar for each time I heard that security-umbrella argument, I’d be beating Norway to the top of that list.

It’s a cliché, like all clichés where politics come into play, it has one part truth and three parts ideology and myth, and maybe it’d be nicer to separate the two things.

Also, that so-called “security umbrella” didn’t come for free. And it was primarily in the interests of the US to be a global military power. It wasn’t done out of sheer generosity so the Swedes and Dutch could enjoy their generous state subsidies.

Besides, the expense needed to maintain the military in the US would be ridiculously out of proportion in any European country. So what’s the point of comparing that?

I mean, there’s a whole lot of other factors and differences involved if you want to make a comparison at all, you’ve got to take them into consideration. I would think this sort of lists have some usefulness as indicators of what they’re supposed to reflect, but they’re hardly contest results. They leave out so many aspects and they abstract and generalise too much.

I don’t even think a higher/lower poverty and class divide depends entirely on the welfare model. But even the welfare model itself relies on a certain culture and mentality rather than just economic factors. I don’t think every country has to embrace it, just like, say, Europe doesn’t have to embrace certain peculiarly American mentalities and social models. It’s different countries, different histories, etc.. There’s not one absolutely best solution. It’s all relative, and how each country organises itself doesn’t all revolve around America and its superpower status that certainly no one forced upon her, no matter how the myths on that would have it.

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Bob 07.22.04 at 3:06 pm

mc: “It wasn’t done out of sheer generosity so the Swedes and Dutch could enjoy their generous state subsidies.”

May be for the quantity or quality of personal welfare benefits but for industrial subsidies (or State Aids) the Swedes and the Dutch are entirely the wrong countries to target.

“The European Commission said Tuesday it was demanding that telecommunications operator France Telecom repay back taxes amounting to between 800 million (990 million dollars) and 1.1 billion euros plus interest to the French state. . .

“The European Commission said Tuesday it was demanding that telecommunications operator France Telecom repay back taxes amounting to between 800 million (990 million dollars) and 1.1 billion euros plus interest to the French state. . .

“The case of France Telecom is one of a string of disputes between Paris and the commission over competition issues and state aid.” – from: http://www.eubusiness.com/afp/040720135427.7zp8ek2y

Btw while Sweden tops the west European league table for total tax revenues (including social security) as a percentage of national GDP, the tax burden in the Netherlands, measured that way, is relatively modest by European standards, as readers can confirm here:
http://europa.eu.int/comm/eurostat/Public/datashop/print-product/EN?catalogue=Eurostat&product=2-01072004-EN-BP-EN&type=pdf

The EU State Aids (to business) indicator scoreboard is here: http://europa.eu.int/comm/competition/state_aid/scoreboard/key_indicators.html

A full and recent EU report on State Aids is here: http://europa.eu.int/comm/competition/state_aid/scoreboard/2004/en.pdf

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Paul Craddick 07.22.04 at 10:36 pm

Bob,

I’m wondering at how you defined the criteria for success: “successful counter-insurgency campaign in an asymmetric war leading to a benign outcome.” That seems overly restrictive to me, but even in the case of Vietnam, surely it’s at least arguable that the failure was one of (political) will, not some military deficiency. To simplify, I’m thinking of necessary conditions (troop numbers, hardware, organization, military culture, etc.), not sufficient ones.

MC,

I guess you think my thesis is nearly below rational engagment – since your reply, in essence, was merely a proclamation to the contrary.

That the U.S. has extended the “umbrella” for self-interested reasons is irrelevant to my point, as is the relative cost of running a viable military in the U.S. vs. somewhere in Northern Europe.

I answered the question that Harry had posed – what do “Anglosphere” nations do for their own citizens that is “better” than what the Nordic governments undertake for their populations? My answer: fulfill the first, primary function of government – protect from enemies within AND without.

The irony I noticed is that the U.S. has essentially provided that benefit – yes, at a “price” – to the nations of Europe too; yet it is roundly criticized for not running a – take your pick of descriptors, “more generous” or “more indulgent” – welfare state, which would likely have prevented it from providing the security that contributed to the efflorescence of the welfare state in Europe.

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Zizka 07.23.04 at 12:31 am

Q: I don’t think heat is a factor. I grew up in NW Minnesota in an area which I found out later was one of the poorest non-minority areas in the North. Many kids I grew up with had wood heat and no running water. But you did not see the pathologies of poverty (crime, ignorance, dependency, disease) that you would in California. I think that it was because of strong, religiously based (Catholic or Lutheran) local communities plus the Minnesota welfare state, which approximated European standards.

It was also an extremely rural area and there are local amenities which soften rural poverty (absent strip-mining or the KKK) — the whole place is like a park or a zoo.

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Bob 07.23.04 at 1:31 am

Paul,

Britain’s counter-insurgency campaign in Malaysia was successful in that the country did not succumb to the (Communist) agenda of the insurgents. The outcome was the creation in 1963 of an independent state, which has maintained the practice of regular contested elections since and which withstood, without violent conflict, the secession of Singapore in 1965. In both military and political terms, the campaign was successful.

It’s perhaps important to recognise that in asymmetric wars, what matters is which side eventually achieves its aims and objectives, not upon whether the outcome depended on failing political will on the part of the powerful combatant or its military failure on the battlefield. Military prowess is much less important than the capability to win hearts and minds. Consent is what matters in the end.

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Paul Craddick 07.23.04 at 2:48 am

Bob,

“Military prowess is much less important than the capability to win hearts and minds.”

Good pt – I believe that that complements my contention that “military capacity” is a necessary, though insufficient, condition vis-a-vis the proper defense of a nation.

But, by definition, the absence of a necessary condition vitiates that of which it’s a necessary condition.

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Bob 07.23.04 at 12:23 pm

Paul,

In asymmetric wars and wars against terrorism, conventional military defense capability is unlikely to be effective. That was the lesson from Vietnam and the Soviet experience in Afghanistan.

Winning hearts and minds is more likely to do better, as well as, sad to say, pervasive and intrusive intelligence gathering with covert operations. We need to re-focus on the threatening ideologies and the capabilities of their adherents.

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mc 07.23.04 at 7:00 pm

Paul, no, the irony is that the US has “provided that benefit” to themselves first of all. European nations had their own military all along. Of course after WWII and with NATO there was a mutual pact and mutual benefits. Even without NATO, European countries that were members to it would have never had the amount of defense spending the US has, it would have been disproportionate to their needs. In fact, that spending is disproportionate to the purpose of providing security for American citizens alone. It is proportionate to the costs of maintaining a global strategy that go far beyond that purpose. It is also proportionate to the interests of a whole gigantic military industry which in turn feeds back into the economy.

So the self-interest argument is very relevant in a response to your “generosity” argument.

Even more relevant is the fact that it is not a lower defense budget that allows most European countries to provide more welfare.

It is higher taxes and a different mentality.

And on my part, no, I have no interest in criticising the US for “not running a – take your pick of descriptors, ‘more generous’ or ‘more indulgent’ – welfare state” – like I said, different countries choose different systems, its got to be ok with their own citizens, not with others. As long as Americans are happy with their system, and Europeans with theirs, I see no reason for silly “who’s your daddy” arrogance from one side or snobbishness from the other. I don’t see countries as entities in competition on these matters, and I’m quite happy with them having their own preferred system. I just find it very disingenous to claim a higher welfare expense would likely have prevented it from providing the security that contributed to the efflorescence of the welfare state in Europe – that’s a string of biased assumptions and hypotheses you can’t verify.

The US has a relatively lower welfare expense because it has a different history and a different mentality about that is prevailing, sooo, there are lower taxes and a different system of spending that money. It’s not just “because” there is huge military spending). I don’t see that direct cause-effect link, I don’t see why one has to posit this either/or absolute dichotomy. The whole culture behind welfare that prevails (used to prevail) in Europe is just the approach in the US, just like the mentality about gun ownership is not the approach in Europe.

IF there was enough political support and widespread cultural acceptance for the idea of subsidies like they get in Scandinavian countries, I don’t see how the US would struggle to meet that demand, even while at the same time maintaining its huge defense spending. It’s simple. You just raise taxes.

Of course if people are used to have relatively lower taxes than in other countries, and also tend to have a notion of welfare as “freeloading”, or if that notion tends to be prevalent in business circles, etc. etc. etc. then it becomes politically hard to do that.

It’s a mentality thing first of all, that’s where the main difference between US and Europe lies, on this matter as well as others. And it goes back a lot longer than the cold war. The US achieved independence by rebelling against taxes. The US have always emphasised the idea of self-reliance. Protestantism added to that a lot. Whereas in most of Europe, Catholicism contributed hugely to the modern idea of welfare. Just as communism did, and that’s another influence the US didn’t have. There’s lots of factors but they’re mostly a matter of culture that were present even before the era of American military expansion. It’s a bit too reductive to ignore them in favour of that cliché about European welfare being entirely the creation of US military strategies.

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mc 07.23.04 at 7:02 pm

…I left out a “not” in “The whole culture behind welfare that prevails in Europe is just _not_ the approach in the US”…

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cd 07.24.04 at 12:46 am

Hey, Paul, check out who had the world’s third largest air force up until the Sixties. The answer may surprise you.

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