From the category archives:

World Economy

Taiwan and Romania join a very special club

by Doug Muir on November 24, 2024

So in the last three years or so — since COVID, basically — Romania and Taiwan have both joined a very special club of countries.

There are not a lot of countries in this club. If you’re very generous, you could include perhaps a dozen or so. But to my way of thinking, there are only about eight. They include:

Ireland (pretty much the type specimen)
South Korea
Singapore
All three Baltic states — Lithuania, Latvia, and Estonia
Taiwan
Romania

There are some definitional issues. Romania, in particular, s a borderline case.  It only qualifies as… half a member, let’s say. Microstates are excluded; to join this club, you must have at least half a million people. In theory, you could argue for the list to include Australia, Israel, Slovenia, and even the United States, but I except them because reasons.  

Okay, so:  What is this club?

The answer is below the cut.  But first: take a moment, look at that list, think about it.  (Here’s a hint: remember what I do for a living.)  Try to come up with an answer, and then put it in the comments. I’ll be curious to see what people think.

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Every few years the UN publishes one of these big papers on “world population prospects”, which are… exactly what they sound like: a best guess at what’s going to happen with the world’s population over the next few decades.

Nut graph after the jump:
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I was reading a book on migration ethics recently – I may write a review later 1 — and it reminded me how a certain picture of the normal liberal state and its place in the world figures in a lot of political philosophy. Although the normative arguments are supposedly independent of historical facts, history is to be found everywhere, but only in a highly selective version that reflects the dominance of the United States within the discipline and the prominence of prosperous white liberals as both the writers of the important texts and as the readers and gatekeepers. 2 Their assumptions about the world and the US place in it shine through and form a "common ground" that is presupposed in much of this writing.3

In this vision, all the world is America 4 — though not one that corresponds to the actual history of the US — and the rest of the world mostly consists of little proto-Americas that will or should get there in the end (thereby echoing Marx’s dictum that the more developed country shows the less developed one a picture of its own future). This imaginary, but also not-imaginary, state is a sort-of cleaned-up and aspirational version of the actual one, cleansed of embarrassing details that are mere contingencies that detract or distract from what US liberals suppose to be its real essence or telos. Crucially, it is also considered as a basically self-contained entity, where all the important relationships are ones among people on the territory.5 It is an association of free and equal persons that has simply arisen on virgin soil. Both the actual United States and other countries fall short of this model, of course, but with time and good will wrinkles and carbuncles will be removed. 6

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One of the lessons of Branko Milanovic’s work on global inequality has been the realization that location, and perhaps more pertinently, nationality, is a more important explanation of how well and badly off people are than class is. Citizens of wealthy countries enjoy a “citizenship premium” over the inhabitants of poor ones that exists because they have access to labour markets and welfare systems that their fellow humans largely do not. Of course, there’s a sense in which this global difference also represents a class difference, with many of the workers simply located elsewhere while the residual “proletarians” of the wealthy world enjoy a contradictory class location (to repurpose a term from Erik Olin Wright). While it might be that world GDP would increase dramatically if barriers to movement were removed, as some economists have claimed, the relative position of the rich world poor depends upon those barriers being in place. Or to put it another way, free movement could make many poor people much better off and might not make the rich world poor any worse off in absolute terms, but it would erode their relative advantage. And people, however misguidedly care about their relative advantage.

What kind of politics would we expect to have in rich countries in a world like ours, if people were fully cognizant of this citizenship premium? I suspect the answer is that we would expect to see stronger nationalist movements seeking to preserve the advantage of members of the national collective over outsiders and correspondingly weaker parties based on class disadvantage within those countries. Which is, in fact, the tendency we do see in many European countries where traditional social democracy is struggling badly at the moment. In those same countries we might also expect to see some voters who are unthreatened by freer movement, or by the rise of new powers in the world, being more open to a more cosmopolitan politics and more preoccupied by other issues such as climate change and the environment. And this is, in fact, what we do see.

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I spend yesterday reading Emily Kenway’s excellent The Truth About Modern Slavery (Pluto Press, 2021). Kenway, a former advisor to the UK’s anti-slavery commissioner has her sights set on one of the most pernicious moral panics of recent years, espoused by right-wing politicians and “radical feminists” alike and used to legitimize a range of policy interventions, but particularly the hardening of borders, increased surveillance and, in relation to the sex industry, the “Nordic model”. Kenway’s argument is that the “modern slavery” industry, leveraging a parallel with actual slavery that is unjustified, promotes a focus on practices of coercion and exploitation that are represented as exceptional and abusive and as contaminating a system of labour and employment that is otherwise well-functioning. It leads to a discourse that emphasises the rescuing of victims from the evil gangs that exploit them and obscures the fact that the everyday operations of capitalism and the nation state generate the the conditions under which people make choices, often freely and rationally, to accept pretty horrible conditions, because those conditions are, for them, the best ones on offer. The book is very much focused on the UK, but readers elsewhere will certainly find parallels in their own countries.

Kenway is very good on the way in which the very same politician who have made “modern slavery” into a crusade have also been the ones who have increased the precarity that marginalized workers and irregular migrants experience. At the same time as May was issuing declarations on the subject, she was pioneering, as UK Home Secretary, the Hostile Environment that made it far more difficulty for migrants to get employment in the regular economy. Kenway highlights the ambigious status that workers at the sharp end of this discourse have: victims, if they are found dead in a trailer or “rescued” from a brothel; perpetrators and immigration offenders if they emerge from a trailer alive. The book is very up to date, but since its publication Priti Patel, the UK’s new Home Secretary, introducing a yet more restrictive immigration regime has complained that “illegals” are “abusing” the modern slavery protections in order to remain in the UK. So it goes.
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It’s time for the Green Human Development Index

by Ingrid Robeyns on November 16, 2020

The United Nations Development Program’s flagship index of wellbeing and social progress, the Human Development Index, no longer captures what humans need, and needs to be replaced by a Green Human Development Index. That’s what I’ll argue in this post.

First, some context for those who do not know the Human Development Index (HDI). The HDI is the main index of the annual Human Development Reports, which, since 1990, have been published by the United Nations Development Program (UNDP). The reports analyse how countries are doing in terms of the wellbeing of their citizens, rather than the size of the economy. In 1990, the Pakistani economist Mahbub ul Haq had the visionary idea that in order to dethrone GDP per capita and economic growth as the yardstick for governmental policies, an alternative index was needed. He asked Amartya Sen to help him construct such an index. The rest is history. The HDI became a powerful alternative to GDP per capita. It consists of three dimensions and several indicators. The first dimension is human life itself, for which the indicators are child mortality and life expectancy. The second dimension is knowledge, captured by school enrollment rates and adult literacy rates. And the last dimension is the standard of living, for which the logarithmic function of GDP per capita is used.

It is easy to criticize the HDI for not capturing all dimensions of wellbeing, or for other shortcomings. For whatever those academic arguments are worth, there is no denying at how successful the HDI has been at accomplishing its two primary purposes: to dethrone GDP per capita and economic growth as the sole yardsticks for societal progress, and to stimulate policy makers to put human beings central in their institutional design and policy making. And by that yardstick, the HDI has been a great success. Each year, the release of the Human Development Reports captures the attention of media and policy makers worldwide. Many politicians and governments care about their ranking in comparison with other countries. And, most importantly, the political power of the HDI provides an incentive for countries to try to invest more in education and health, combatting child mortality and increasing life expectancy.

Yet, it is now time to abandon the HDI. Paradoxically, this is not despite, but because of its political success. The reason is that we have entered the Anthropocene – the geological epoch in which the human species is changing ecosystems and the geology of the Earth. The most well-known of those changes that humans have caused is climate change. And since these ecosystems and planetary boundaries in turn affect human flourishing, they must be central in any analyses of that human flourishing. [click to continue…]

The Economic Consequences of the Pandemic

by John Q on July 4, 2020

That’s the title of a book I’ve agreed to write for Yale University Press (their editorial director) Seth Ditchik commissioned my previous two books, Zombie Economics and Economics in Two Lessons when he was at Princeton UP.

When we first discussed the book, I took the view that most of the writing would have to be done after November, since the outcome of the US presidential election would be crucial to developments in the US and globally. I’m now working on the assumptions that
(a) Biden will be the next president
(b) he will have a workable majority in Congress.
(c) mainstream Democrats recognise the need for radical change, and Biden will align with the mainstream position as he always has done

The first of these assumptions was problematic until recently, but seems safe enough to work on now. The third, I’ll leave for comments.
That leaves the question of a workable majority. Roughly speaking, I mean that the Dems have enough votes in the Senate to abolish or restrict the filibuster and pass the kind of program I’ll be advocating (allowing for a couple of defections, that would be 52 or more). Winning that many seats is still a stretch on current polling, but not out of reach.

The immediate question is that of how to get rid of the filibuster. Doing so pre-emptively would be problematic in all sorts of ways. Biden needs to start with the 2008 Obama playbook of reaching out across the aisle in the spirit of bipartisanship. But unlike in Obama’s case, once the proffered hand (or perhaps elbow bump) of friendship is slapped down, as it surely will be, Biden needs to point to his electoral mandate and whip up the necessary votes. Obama realised this, to some extent, in his second term, but by then he had a hostile Congress.

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On seeing Astra Taylor’s What is Democracy?

by Chris Bertram on October 22, 2019

I went to see occasional Timberite Astra Taylor’s remarkable film *What is Democracy?* last night. It takes us from Siena, Italy to Florida to Athens and from Ancient Athenian democracy through the renaissance and the beginning of capitalism to the Greek debt crisis, occupy and the limbo life of people who have fled Syria and now find themselves stuck. It combines the voices of Plato and Rousseau with those of ordinary voters from left and right, Greek nationalists and cosmopolitans, ex-prisoners, with trauma surgeons in Miami, Guatemalan migrants in the US, with lawmakers and academics, and with refugees from Syria and Afghanistan. All the while it poses the questions of whether democracy is compatible with inequality and global financial systems and the boundaries of inclusion.

Some of the testimonies are arresting: the ex-prisoner turned barber who tells us of his nine years in a US prison of a hunger strike when the authorities tried to take the library away and of his problems adjusting to life of the outside, to being around women, and the fact that he’s denied the vote. And all the time he’s telling you this with attention and passion he’s clipping a customers beard, which adds a note of tension. We hear from trauma surgeons who tell us of the levels of violence in Miami – so much blood that the city is used for training by medics from the US military – and the shock of cycling from one neighbourhood to the next and experiencing swift transitions from opulence to utter destitution. We hear from a young Syrian woman who relates how she had to leave Aleppo after her mother was wounded by a stray bullet in her own home and whose idea of democracy is a country where she can lie safely in her bed.
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Green new deals and natural resources

by Chris Bertram on June 11, 2019

I’m nearly through reading Barbara Kingsolver’s *The Poisonwood Bible* at the moment, and very good it is too. For those who don’t know, the main part of Kingsolver’s novel is set in the Congo during the period comprising independence in 1960 and the murder of its first Prime Minister, Patrice Lumumba, on 17 January 1961 at the hands of Katangan “rebels” backed by Belgium and the US. And DR Congo (sometime Zaire) has been pretty continuously violent and unstable ever since. With its origins in King Leopold’s extractive private state (rubber), Congo has been coveted and plundered for the sake of its natural resources ever since. At the time of the Katanga crisis copper was the thing. But now what was previously a little-wanted by-product of copper extraction, cobalt, is in heavy demand because of its use in batteries.

My attention was caught yesterday by [a press release from the UK’s Natural History Museum](https://www.nhm.ac.uk/press-office/press-releases/leading-scientists-set-out-resource-challenge-of-meeting-net-zer.html), authored by a group of British geoscientists:

> The letter explains that to meet UK electric car targets for 2050 we would need to produce just under two times the current total annual world cobalt production, nearly the entire world production of neodymium, three quarters the world’s lithium production and at least half of the world’s copper production.

A friend alerted me to a piece by Asad Rehman of War on Want, provocatively entitled [*The ‘green new deal’ supported by Ocasio-Cortez and Corbyn is just a new form of colonialism*](https://www.independent.co.uk/voices/green-new-deal-alexandria-ocasio-cortez-corbyn-colonialism-climate-change-a8899876.html) which makes the point:

> The demand for renewable energy and storage technologies will far exceed the reserves for cobalt, lithium and nickel. In the case of cobalt, of which 58 per cent is currently mined in the DR of Congo, it has helped fuel a conflict that has blighted the lives of millions, led to the contamination of air, water and soil, and left the mining area as one of the top 10 most polluted places in the world.

People who are optimistic about the possibilities of decarbonizing without major disruption to Western ways of life and standards of living are often enthusiastic about new technologies, battery developments etc. I’ll include CT’s John Quiggin in that (see John’s piece from CT [Can we get to 350ppm? Yes we can from 2017](https://crookedtimber.org/2017/07/22/42710/)). John tells me he’s sceptical about claims that we are about to run out of some scare resource. Maybe he’s right about that and more exploration will reveal big reserves of copper and cobalt in other places. But even if he is, we still have to get that stuff out of the ground, and that’s predictably bad for local environments and their people, and in the short to medium term it may yet be further bad news for the people of DR Congo who have already endured seventy plus plus years as a “free” country (and 135 years since Leopold set up in business) in conditions of violence and exploitation, whilst already wealthy northerners get all the benefits.

Not in our name

by Chris Bertram on June 20, 2018

For as long as I can remember, the philosopher’s stock example of a proposition that is morally uncontroversial has been “torturing babies is wrong”. Yet it turns out that torturing babies, or at least toddlers, is US government policy, where that policy involves separating them from their parents, leaving them in acute distress and certainly consigning many of them to a lifetime of mental health problems. And all so that Donald Trump can play at symbolic politics with his base. The justification given to the policy by people like Attorney General Jeff Sessions seems to be that the government is simply enforcing the law.

This discourse, that the law has to be enforced and that unauthorized immigrants are lawbreakers who must be punished, is pretty questionable in itself. But in this case it flies in the face of the US government’s commitments under the Refugee Convention, incorporated into US domestic law, according to which refugees are not liable to criminal sanction for unlawful entry. There’s also the Convention on the Rights of the Child, which the US has signed up to but not ratified. So, even if you think that laws must be followed and enforced, the question of who the lawbreakers are here is one that does not admit of a clear answer. Not that one should have confidence that the Supreme Court of the United States would interpret the United States’ legal obligation under the Convention in a way that that does not reflect partisan political judgement. Government of laws not of men? Not really.

As a European it is tempting simply to point the finger at Trump, but our own well is just as poisoned. Hungary now intends to criminalize those who give assistance to migrants and refugees, including merely informing them of their legal rights. Salvini, the new Italian interior minister, having refused to allow migrants to dock at Italian ports, now contemplates a purge of people of Roma ethnicity from Italian territory and regrets that he cannot deport the ones who have Italian nationality. And then there are Europe’s 34,361 dead migrants. Terrible times, and all the more terrible because electorates, or at best substantial minorities of them, are willing this stuff. We who disagree have to say: not in our name. And we have to do what we can to push back.

Adam Smith against nativist immigration policy

by Chris Bertram on January 21, 2018

Paul Sagar has [a very nice piece at Aeon about Adam Smith](https://aeon.co/essays/we-should-look-closely-at-what-adam-smith-actually-believed), his legacy, and his contemporary relevance. Towards the end of his essay, he quotes a famous passage from Smith’s Theory of the Moral Sentiments:

> [The man of system] seems to imagine that he can arrange the different members of a great society with as much ease as the hand arranges the different pieces upon a chessboard. He does not consider that the pieces upon the chessboard have no other principle of motion besides that which the hand impresses upon them; but that, in the great chessboard of human society, every single piece has a principle of motion of its own, altogether different from that which the legislature might choose to impress upon it. If those two principles coincide and act in the same direction, the game of human society will go on easily and harmoniously, and is very likely to be happy and successful. If they are opposite or different, the game will go on miserably, and the society must be at all times in the highest degree of disorder.

An arresting passage when considered against the background of the nativist immigration policies of countries like the United Kingdom and the United States and one that underlines the utopian (in a bad way) nature of natonalist projects. At present our governments are conducting a war against migrants. In the UK, “foreign criminals” (who may or may not have been convicted of actual crimes) are deported to countries they may be utterly unfamiliar with, landlords and employers are threatened with fines if they house or employ people without the right of residency (and deprive many others of opportunities because they look or sound as if they might be “foreign”), asylum seekers are deported to war zones like Afghanistan (a “safe country”) and thousands of people are separated from partners or children because they don’t earn enough for a spousal visa. Brexit Britain has now cast this shroud of insecurity over EU nationals too. In the United States, Trump is still going on about his wall, thousands of young people who are functionally Americans can’t rest secure because politicians can’t agree how to regularize their status, whilst others who came as children are ripped from their families and deported.

And yet we will win. The “game” is going on “miserably” and human beings who have principles of motion of their own, altogether different from those that polticians seek to impress on them, will carry on moving, fleeing, working, associating, trading with, and loving those of nationalities other than their own, because human beings always have and always will. When we talk of freer movement, of more open borders, of a global order that works for everyone and isn’t just in hock to nativist anxieties in wealthy countries, the conventional wisdom is that this is unrealistic and utopian. Yet the true unrealism and utopianism is the project of keeping human beings in self-contained political orders with others “like them”.

My book, [Does the State Have the Right to Exclude Immigrants](http://politybooks.com/bookdetail/?isbn=9781509521951), comes out with Polity on May 25th.

Jane Jacobs, the tyranny of experts and Brexit

by Chris Bertram on May 16, 2017

Last night I watched Citizen Jane, a recent biopic about Jane Jacobs and her long fight against Robert Moses’s plans for New York. Of course, Jacobs was largely correct: Moses’s grand utopian schemes wrecked the ecologies of street and community and eventually produced neighbourhoods worse than the ones they replaced, whilst failing to solve even the problems, like traffic congestion, they seemed best suited to. But being already familiar with the substance of the dispute, and with Jacobs’s great work, *The Death and Life of Great American Cities*, what struck me most forcefully was the rhetoric. On the one hand, there were the self-proclaimed “experts”, on the other, ordinary people with their lived experience, sceptical about whether the “experts” had their best interests at heart (or if they did, whether they shared the same conception of their interests). A great irony of the Jacobs case is that though she was right about Moses and his plans, the net result of her activism has not been, in the end, to preserve those neighbourhoods for the kinds of people who lived there then, but rather to give them an afterlife to be enjoyed by the people who can now afford to live in them.

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On the alleged failure of “liberal progressivism”

by Chris Bertram on November 13, 2016

The other day, [an article by Chris Deerin](http://capx.co/its-official-western-politics-is-now-defunct/), a writer for the Scottish Daily Mail, appeared on my twitter timeline, retweeted and endorsed by several people I respect. The article argued Trump and Brexit mean that “liberal progressives” have lost and that “the model that has more or less dominated Western politics for the past three decades is defunct. It could not be more dead.” “We” misused that hegemony and are responsible for our own downfall:

> We used our hegemony to take down barriers and borders, to connect and build, to (yes) line our own pockets and smugly luxuriate in the goodness of our ideas and intentions. Meantime, we forgot about those who weren’t able to take part, who weren’t benefiting, to whom free trade and open borders meant greater hardship and uneasy cultural compromises. Or, let’s be honest, we didn’t forget – we just chose to conveniently ignore. We stopped asking for their permission, ploughed on through the warning signs, and fell off the end of the road.

Now “liberal” is a funny old word, mostly used as an insult these days by the Jacobin crowd on the one hand and conservatives on the other. Still, I can’t help but feel that my politics is being condemned here as infeasible and dead whilst wondering whether it is in fact true that I’ve enjoyed such “hegemony” for the past 30 years, because that certainly doesn’t gel with my experience.
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After neoliberalism: a snippet

by John Q on August 30, 2016

Over the fold, some concluding comments from a chapter I’ve written about the rise and decline of neoliberalism. I’m drawing on the “three-party system” analysis I’ve put forward before, in which neoliberalism (in both ‘hard’ and ‘soft’ forms) is increasingly breaking down under pressure from tribalists on the right, and from an amorphous, but still resurgent left.

This is just a snippet, which I hope will evolve into a more extensive discussion of the policies and political strategies the left should adopt in response to the breakdown of the neoliberal order.

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Piketty, Rousseau and the desire for inequality

by Chris Bertram on December 9, 2015

Thomas Piketty’s *Capital in the 21st Century* tells us a great deal about the evolution of inequality in wealth and income over a long period and how that distribution is likely to evolve unless we intervene. What Piketty does not do is to tell us why inequality is bad or why people care about inequality, although we can glean some knowledge of his personal beliefs here and there. In what follows I draw on some aspects of Rousseauvian moral psychology to suggest that the reasons people care about inequality matter enormously and that because some people value inequality for its own sake, it will be harder (even harder than Piketty thinks) to steer our societies away from the whirlpool of inequality. [click to continue…]