Economic Growth – Page 27 – artdiamondblog.com

NGO Workers Are More Concerned with Following Plan than Achieving Mission

Source of book image: http://www.bibliovault.org/thumbs/978-0-8047-7672-1-frontcover.jpg

In the quote below, “NGO” means “Non-Government Organization,” for instance, a philanthropy.

(p. 17) As for the state’s representatives, their authority was what Coburn calls a “useful fiction.” The district governor wielded his connections to Kabul as best he could, but did not possess great influence, in part because — in keeping with the most sophisticated state-building methods — government aid was mainly distributed by locally elected committees. Istalif’s police were seen as hapless at best, predatory at worst; Coburn found that villagers were eager to protect him from a local officer. The French soldiers who periodically showed up in the bazaar had little impact, though their presence did become an excuse for keeping women out of the area. But Coburn observed that “no group was less effective at accumulating influence” than the NGO community. The best development experts accomplished little: their turnover was high, and they frequently bestowed their largess on deserving locals — women, refugees who’d returned from abroad with some education, victims of wartime injuries — who didn’t have the connections or ability to capitalize on their good fortune. NGO workers seemed less concerned with achieving a valuable outcome than with demonstrating to their backers that they had followed a mission plan to the letter.

For the full review, see:
ALEXANDER STAR. “Applied Anthropology.” The New York Times Book Review (Sun., November 20, 2011): 16-17.
(Note: the online version of the commentary is dated November 18, 2011, and has the title “Afghanistan: What the Anthropologists Say.”)

The book being discussed is:
Coburn, Noah. Bazaar Politics: Power and Pottery in an Afghan Market Town. Stanford Studies in Middle Eastern and Islamic Societies and Cultures. Stanford, CA: Stanford University Press, 2011.

“Dematerialization” Means More Goods from Fewer Resources

(p. C4) Economic growth is a form of deflation. If the cost of, say, computing power goes down, then the users of computing power acquire more of it for less–and thus attain a higher standard of living. One thing that makes such deflation possible is dematerialization, the reduction in the quantity of stuff needed to produce a product. An iPhone, for example, weighs 1/100th and costs 1/10th as much as an Osborne Executive computer did in 1982, but it has 150 times the processing speed and 100,000 times the memory.
Dematerialization is occurring with all sorts of products. Banking has shrunk to a handful of electrons moving on a cellphone, as have maps, encyclopedias, cameras, books, card games, music, records and letters–none of which now need to occupy physical space of their own. And it’s happening to food, too. In recent decades, wheat straw has shrunk as grain production has grown, because breeders have persuaded the plant to devote more of its energy to making the thing that we value most. Future dematerialization includes the possibility of synthetic meat–produced in a lab without brains, legs or guts.
Dematerialization is one of the reasons that Peter Diamandis and Steven Kotler give for the future’s being “better than you think” in their new book, “Abundance.”

For the full commentary, see:
MATT RIDLEY. “MIND & MATTER; The Future Is So Bright, it’s Dematerializing.” The Wall Street Journal (Sat., February 25, 2012): C4.

The book mentioned by Ridley is:
Diamandis, Peter H., and Steven Kotler. Abundance: The Future Is Better Than You Think. New York: Free Press, 2012.

Upper Class “Have Lost the Confidence to Preach What They Practice”

Source of book image:
http://4.bp.blogspot.com/-K9jKNHD0vwE/Tzn4yKgEtII/AAAAAAAAC8Q/2wZqk1Hl1V4/s1600/murray-coming-apart.jpg

(p. 9) The problem, Murray argues, is not that members of the new upper class eat French cheese or vote for Barack Obama. It is that they have lost the confidence to preach what they practice, adopting instead a creed of “ecumenical niceness.” They work, marry and raise children, but they refuse to insist that the rest of the country do so, too. “The belief that being a good American involved behaving in certain kinds of ways, and that the nation itself relied upon a certain kind of people in order to succeed, had begun to fade and has not revived,” Murray writes.

For the full review, see:
NICHOLAS CONFESSORE. “Tramps Like Them; Charles Murray Argues that the White Working Class Is No Longer a Virtuous Silent Majority.” The New York Times Book Review (Sun., February 12, 2012): 9.
(Note: the online version of the review has the date February 10, 2012 and has the title “Tramps Like Them; Charles Murray Examines the White Working Class in ‘Coming Apart’.”)

In China the Rich and Creative Prepare to Vote with Their Feet

“Shi Kang, a millionaire writer living in Beijing, started thinking about emigrating after a long road trip last year around the U.S.” Source of caption and photo: online version of the WSJ article quoted and cited below.

(p. A1) BEIJING–This time last year, Shi Kang considered himself a happy man.

Writing 15 novels had made him a millionaire. He owned a luxury apartment and a new silver Mercedes. He was so content with his carefree life in Beijing that he never even traveled overseas.
Today, a year later, Mr. Shi is considering emigrating to the U.S.–one of a growing number of rich Chinese either contemplating leaving their homeland or already arranging to do it.
. . .
(p. A12) A survey published in November found that 60% of about 960,000 Chinese people with assets over 10 million yuan ($1.6 million) were either thinking about emigrating or taking steps to do so. The U.S. was the top destination, followed by Canada, Singapore and Europe, according to the survey by the state-run Bank of China and Hurun Report, which analyzes trends among China’s wealthy.
. . .
Mr. Su was no dissident, though. Like many of his generation, he turned his attention to getting rich. Today, at 46, Mr. Su runs his own aerospace technology company and estimates his own net worth, including the various properties he owns, at around 80 million yuan, or close to $13 million.
His main reason for leaving, he says, is the business environment. “The government has too much power,” he says. “Regulations here mean that businessmen have to do a lot of illegal things. That gives people a real sense of insecurity.” He said four of his distributors have also applied for investment immigration to Canada.
. . .
“The problem is that government power is too great,” Mr. Su says. “When the economy is going up, they think that everything they are doing is right.” If they don’t change, he worries, “another revolution will come soon.”
. . .
The current migrant wave is different in that they are escaping neither poverty nor political unrest–and many say they are leaving for good. The Hurun survey showed that the average respondent had 60 million yuan in assets and was 42, old enough to remember the 1989 Tiananmen crackdown, but young enough to have learned how to prosper in a market economy.
Deng Jie fits the profile. Twenty-seven years ago, in the fledgling years of China’s market reforms, he began his career in a state-run ceramics factory in Beijing, sharing a cramped dormitory with colleagues and earning 50 yuan a month (about $13 in those days).
Today, at 48, he runs his own chemical pigments business and lives with his wife and daughter in one of the three luxury apartments he owns. In dollar terms, he is a millionaire several times over. His properties alone have appreciated by 800% in a decade.
Yet the hope he felt for his country in the 1980s, he says, has “been doused with bucket after bucket of cold water.” He cited a host of concerns, including rampant corruption among the officials he deals with, and new labor regulations that he says have made his work force too costly and demanding.
“I’m representing a lot of other people like me,” he says. “We used to want to contribute to the nation. But now we just feel so disappointed. China cannot continue like this. It has to change.”

For the full story, see:

JEREMY PAGE. “Plan B for China’s Wealthy: Moving to the U.S., Europe.” The Wall Street Journal (Thurs., FEBRUARY 22, 2012): A1 & A12.
(Note: ellipses added.)

Source of graph: online version of the WSJ article quoted and cited above.

Manifesto for a Rising Standard of Living

Source of book image: online version of the WSJ review quoted and cited below.

(p. A13) Mr. Diamandis is the chairman and chief executive of the X Prize Foundation and the founder of more than a dozen high-tech companies. With his journalist co-author, he has produced a manifesto for the future that is grounded in practical solutions addressing the world’s most pressing concerns: overpopulation, food, water, energy, education, health care and freedom. The authors suggest that “humanity is now entering a period of radical transformation where technology has the potential to significantly raise the basic standard of living for every man, woman, and child on the planet.”
. . .
Predictions of a rosy future have a way of sounding as unrealistic as end-is-nigh forecasts. But Messrs. Diamandis and Kotler are not just dreamers. They lay out a plausible road map, discussing, among other things, the benefits of do-it-yourself tinkering–like the work by geneticist J. Craig Venter in beating the U.S. government in the race to sequence the human genome–and the growing willingness of techno-philanthropists like Bill Gates to tackle real-world problems.
The biggest hurdles, however, are not scientific or technological but political. There are still too many corrupt dictators and backward-looking governments keeping millions in penury. But as we have seen lately, the misruled have a way of throwing off despotic governments. With ever more people reaching for freedom, countless millions are tacitly embracing the Diamandis motto: “The best way to predict the future is to create it yourself.”

For the full review, see:
MICHAEL SHERMER. “BOOKSHELF; Defying the Doomsayers; Abundance” argues that growing technologies have the potential not only to spread information but to solve some of humanity’s most vexing problems.” The Wall Street Journal (Thurs., FEBRUARY 22, 2012): A13.
(Note: ellipsis added.)

The book being reviewed is:
Diamandis, Peter H., and Steven Kotler. Abundance: The Future Is Better Than You Think. New York: Free Press, 2012.

Nasar Gives Compelling Portrait of Joseph Schumpeter and His Vienna

Source of book image: http://luxuryreading.com/wp-content/uploads/2011/10/grand-pursuit.jpg

(p. C31) Ms. Nasar gives us Belle Époque Vienna — infatuated with modernity and challenging London in the race to electrify with new telephone service, state-of-the-art factories and power-driven trams — and then a devastating picture of Vienna at the end of World War I: war veterans loitering outside restaurants waiting for scraps, and desperate members of a middle class that saw inflation wipe out all its savings trading a piano for a sack of flour, a gold watch chain for a few sacks of potatoes.
. . .
Among the more compelling portraits in this volume is that of Joseph Alois Schumpeter, the brilliant European economist who argued that the distinctive feature of capitalism was “incessant innovation” — a “perennial gale of creative destruction” — and who identified the entrepreneur as the visionary who could “revolutionize the pattern of production by exploiting an invention” or “an untried technological possibility.”

For the full review, see:
MICHIKO KAKUTANI. “BOOKS OF THE TIMES; The Economist’s Progress: Better Living Through Fiscal Chemistry.” The New York Times (Fri., December 2, 2011): C31.
(Note: ellipsis added.)
(Note: the online version of the article is dated December 1, 2011.)

Paleolithic Homo Sapiens Engaged in Long Distance Trade

(p. 71) At Mezherich, in what is now Ukraine, 18,000 years ago, jewellery made of shells from the Black Sea and amber from the Baltic implied trade over hundreds of miles.
This is in striking contrast to the Neanderthals, whose stone tools were virtually always made from raw material available within an hour’s walk of where the tool was used.

Source:
Ridley, Matt. The Rational Optimist: How Prosperity Evolves. New York: Harper, 2010.

Hunter-Gatherers Suffered Violence, Famine and Disease–No Idyllic Golden Age

(p. 44) The warfare death rate of 0.5 per cent of the population per year that was typical of many hunter-gatherer societies would equate to two billion people dying during the twentieth century (instead of 100 million). At a cemetery uncovered at Jebel Sahaba, in Egypt, dating from 14,000 years ago, twenty-four of the fifty-nine bodies had died from unhealed wounds caused by spears, darts and arrows. Forty of these bodies were women or children. Women and children generally do not take part in warfare – but they are (p. 45) frequently the object of the fighting. To be abducted as a sexual prize and see your children killed was almost certainly not a rare female fate in hunter-gatherer society. After Jebel Sahaba, forget the Garden of Eden; think Mad Max.
It was not just warfare that limited population growth. Hunter-gatherers are often vulnerable to famines. Even when food is abundant, it might take so much travelling and trouble to collect enough food that women would not maintain a sufficient surplus to keep themselves fully fertile for more than a few prime years. Infanticide was a common resort in bad times. Nor was disease ever far away: gangrene, tetanus and many kinds of parasite would have been big killers. Did I mention slavery? Common in the Pacific north-west. Wife beating? Routine in Tierra del Fuego. The lack of soap, hot water, bread, books, films, metal, paper, cloth? When you meet one of those people who go so far as to say they would rather have lived in some supposedly more delightful past age, just remind them of the toilet facilities of the Pleistocene, the transport options of Roman emperors or the lice of Versailles.

Source:
Ridley, Matt. The Rational Optimist: How Prosperity Evolves. New York: Harper, 2010.

Pedro de Verona Rodrigues Pires Wins Ibrahim Prize for Achievement in African Leadership

“Pedro de Verona Rodrigues Pires” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A10) MONROVIA, Liberia — Pedro de Verona Rodrigues Pires, the former president of Cape Verde, the desertlike archipelago about 300 miles off the coast of West Africa, has won one of the world’s major prizes, the $5 million Ibrahim Prize for Achievement in African Leadership.

The record of governing in Africa has been poor enough lately that the Mo Ibrahim Foundation decided not to award the prize for the past two years. In many African countries, leaders have refused to leave office after losing elections, tried to alter constitutions to ensure their continued tenure or gone back on pledges not to run for re-election.
. . .
Mr. Pires served two terms — 10 years — as president until stepping down last month. During that period, the foundation noted, Cape Verde became only the second African nation to move up from the United Nations’ “least developed” category. The foundation says the prize is given only to a democratically elected president who has stayed “within the limits set by the country’s constitution, has left office in the last three years and has demonstrated excellence in office.”

For the full story, see:
ADAM NOSSITER. “Ex-President of Cape Verde Wins Good-Government Prize.” The New York Times (Tues., October 11, 2011): A10.
(Note: ellipsis added.)
(Note: the online version of the article is dated October 10, 2011.)

In 1800 the Life of a Peasant Was Not Pleasant

(p. 12) There are people today who think life was better in the past. They argue that there was not only a simplicity, tranquility, sociability and spirituality about life in the distant past that has been lost, but a virtue too. This rose-tinted nostalgia, please note, is generally confined to the wealthy. It is easier to wax elegiac for the life of a peasant when you do not have to use a long-drop toilet. Imagine that it is 1800, somewhere in Western Europe or eastern North America. The family is gathering around the hearth in the (p. 13) simple timber-framed house. Father reads aloud from the Bible while mother prepares to dish out a stew of beef and onions. The baby boy is being comforted by one of his sisters and the eldest lad is pouring water from a pitcher into the earthenware mugs on the table. His elder sister is feeding the horse in the stable. Outside there is no noise of traffic, there are no drug dealers and neither dioxins nor radioactive fall-out have been found in the cow’s milk. All is tranquil; a bird sings outside the window.
Oh please! Though this is one of the better-off families in the village, father’s Scripture reading is interrupted by a bronchitic cough that presages the pneumonia that will kill him at 53 – not helped by the wood smoke of the fire. (He is lucky: life expectancy even in England was less than 40 in 1800.) The baby will die of the smallpox that is now causing him to cry; his sister will soon be the chattel of a drunken husband. The water the son is pouring tastes of the cows that drink from the brook. Toothache tortures the mother. The neighbour’s lodger is getting the other girl pregnant in the hayshed even now and her child will be sent to an orphanage. The stew is grey and gristly yet meat is a rare change from gruel; there is no fruit or salad at this season. It is eaten with a wooden spoon from a wooden bowl. Candles cost too much, so firelight is all there is to see by. Nobody in the family has ever seen a play, painted a picture or heard a piano. School is a few years of dull Latin taught by a bigoted martinet at the vicarage. Father visited the city once, but the travel cost him a week’s wages and the others have never travelled more than fifteen miles from home. Each daughter owns two wool dresses, two linen shirts and one pair of shoes. Father’s jacket cost him a month’s wages but is now infested with lice. The children sleep two to a bed on straw mattresses on the floor. As for the bird outside the window, tomorrow it will be trapped and eaten by the boy.

Source:
Ridley, Matt. The Rational Optimist: How Prosperity Evolves. New York: Harper, 2010.

Ridley Argues that Our Future Can Be Bright

Source of book image: http://1.bp.blogspot.com/_cheRMv1X2oI/TAOvTFTnoeI/AAAAAAAAAgU/WAp7q0I_5mw/s1600/Ridley+Rational+Optimist.jpg

Ridley’s book is very well-written, well-argued and well-documented. He takes on all the main arguments against a happy future for humans. I agree with most of what he writes. (One exception is that I think he underestimates the importance of patents in enabling a broader group of inventors to continue inventing.)
In the coming weeks, I will be quoting some of the more memorable, thought-provoking, or useful passages.

Book discussed:
Ridley, Matt. The Rational Optimist: How Prosperity Evolves. New York: Harper, 2010.