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Articles I liked 4/12/2014

Here’s a few articles I’ve been reading this morning that I liked.

Intellectual Property Rights, the Pool of Knowledge, and Innovation by Joe Stiglitz (National Bureau of Economic Research)

We began by noting that some observers of innovation have claimed that a more important determinant of the levels of investment in R & D and the pace of
innovation than the intellectual property regime is the “opportunity set,” the knowledge pool from which applied researchers can draw. Knowledge, it is has long been recognized, is a public good—a
common resource from which all can draw (see, e.g., Stiglitz 1987).32 Intellectual property provides a way of appropriating the returns to investments in knowledge, but in doing so, effectively privatizes a public good. But every innovation draws upon prior knowledge, and the boundaries of “new” knowledge are inherently imprecise. Patents inevitably enclose what would otherwise have been in the
public domain. In doing so, not only do they impede the efficient use of knowledge, but because knowledge itself is the most important input into the production of further knowledge (innovations),
they may even impede the flow of innovations.

Democracy does cause growth (National Bureau of Economic Research)

Our baseline results use a linear model for GDP dynamics estimated using either a standard within estimator or various different Generalized Method of Moments estimators, and show that democratizations increase GDP per capita by about 20% in the long run. These results are confirmed when we use a semiparametric propensity score matching estimator to control for GDP dynamics. We also obtain similar results using regional waves of democratizations and reversals to instrument for country democracy. Our results suggest that democracy increases future GDP by encouraging investment, increasing schooling, inducing economic reforms, improving public good provision, and reducing social unrest. We find little support for the view that democracy is a constraint on economic growth for less developed economies.

Abe’s Law: Domestic Dimensions of Japan’s Collective Self-Defense Debate (HERE)

The Edutainment Industrial Complex (Africa is a country)

So this is their strategy? Ask a bunch of relatively wealthy, globally-mobile pop superstars to tell rural youth to not participate in the flashy urban lifestyle they (the artists) usually promote–to stay in the countryside and participate in the resource extraction side of global capitalism? As Sean pointed out to me over email, the video isn’t unlike the type campaign some dictatorship (South Africa’s racist regime was fond of it) might use as a tool of “national development” or to fight crime or build national morale.

Is this a surprise? Western liberals have long romanticized rural poverty and encouraged Africans to simply do nothing about their developmental problems. Sorry, I had to put on my curmudgeon hat for a while.

What I’m reading now March 23, 2014

Well, it should really be, what I was reading two weeks ago, but… details, details….

TOEThe Tyranny of Experts: Economists, Dictators, and the Forgotten Rights of the Poor Generally speaking, I like Bill Easterly’s views on aid and development. Easterly questions traditional models of development, arguing that top down strategies which rely on purely technical solutions rarely work, and often do more harm than good. Here, Easterly again makes the argument that the development world is full of bumbling technocrats, who fail to see the simplicity of the real problem of African development.

Note, however, that I do not share the views of uninformed cynics, which laugh at the “folly of development” and the evils of foreign aid indiscriminately. Easterly is often propped up by cynical opponents of foreign aid as a spokesperson for why we shouldn’t be given money to poor people, or by Ron Paul style non-interventionists who are quick to dismiss anything the United States does outside it’s borders, not to suggest at all that the United States alone is responsible for development. To me, and call me stupid, the issue is far too complex to boil down to a black and white view of a few self satisfied cynics. Debates over what works and what doesn’t work in development are far more interesting to me than debates of whether development is “good” or “bad.” But… I digress…

Easterly argues that what’s missing from the picture is the guarantee of true democratic rights, that is, legal restrictions on the powers of government. The reason democracy is faulty in Africa, is that most African governments equate democracy with merely having elections, when, in fact, democracy is a function of checks on the ability of government to stifle opposition and the guarantee that citizens are fully protected under the law. He is absolutely right. The structures of African governments (in general) were initially constructed to support a colonial model, which guaranteed that power would be held by a privileged (white) few. However, post-independence, few governments have made substantive changes to the ways in which they govern, despite having had, in most cases, nearly 50 years to do so. Easterly lays blame with development organizations, which offer highly technical solutions to basic problems, but are weak-kneed in demanding that governments work to guarantee basic rights to their citizens.

While I agree that democracy is about more than just having elections, and agree that basic rights must be guaranteed in order to have a free state, I wonder if he gets so caught up in the grand academic thought process, and misses some of the details. His treatment of Asia is quite limited, for example. There, most governments achieved their developmental goals without guaranteeing the rights of citizens and sometime achieved them under incredibly authoritarian and sometimes brutal one party systems. While I don’t think that the end of development is worth the means of authoritarian brutality, it must be pointed out that many governments (for example, South Korea and Taiwan) only loosened their grip after they had an educated middle class which demanded increased freedoms and rights (see the work of Ha-Joong Chang and Joe Stiglitz for a reasonable treatment of the subject). While Africa and Asia are two very different places, any discussion of development has to include both.

Easterly makes me feel good, though, in his preface. Mentioning anywhere that markets are good things in a discussion of development will have one branded as a rabid right winger, which is just a pathetically myopic view (or merely a by-product of total ignorance). The tired argument of market vs state which dominates political discussions in the US (and elsewhere) is merely a distraction from the real argument we should be having, which is over rights vs. non-rights. Are rights being protected or not? Is there proper representation or not? You can have any type of free market system you like or even a heavy welfare state, but if the guarantee of basic rights to free speech, assembly, expression and representation aren’t there, you don’t have a democracy and you probably don’t have continued development of the type that matters most.

But, I’m not a political scientist, and could easily rant on aimlessly for hours to no end whatsoever.

Politics in West Africa – Sir Arthur Lewis (1965) - Sir Arthur Lewis was a Nobel Prize winning economist from St. Lucia. He wrote this fantastic little book on the state of West African politics following independence in 1965. It’s just as relevant now as it was back then. His scathing criticism of authoritarian African governments and the multitude of missed opportunities for development for African countries were both timely and eerily prophetic. I’m particularly drawn to his criticism of viewing Africa through a Marxist lens, pointing out that, outside of a few foreign corporations, there are few true capitalists and that the plentiful nature of land compromises efforts to commodify it, and thus create a European style, class based system. He also points out the problems with the one party state, pointing out that the one party state was often created by force following independence, rather than consensus. In fact, the nature of the independence movements themselves compromised the creation of true constitutional democracies, which guarantee the rights of the minority. Independence movements were created to topple minority rule. Great book.

ATSAgainst the State: Politics and Social Protest in Japans I can’t put this book down. An excellent account of the fight to stop the building of Narita airport in the 1960′s, the implications of which were more than merely a struggle of some farmers unwilling to part with land. The struggle for Sanrizuka was a culmination of the coalescence of a wide variety of actors, many of which had little in common ideologically, reacting to an ever disconnected state. Apter rightly points out that despite strict rules on social behavior and self-control, Japan’s history is filled with examples of social change brought about not through discussion, but incredible and coordinated violence.

VOFCThe Violence of Financial Capitalism (Semiotext(e) / Intervention Series) I bought this book thinking it might be an interesting perspective on the financial crash and the events which followed it. I was somehow let down to find that the book didn’t really live up to it’s striking title. Marazzi views the crash as not an aberration, but rather another aspect of capital accumulation by financial elites, a tool of undermining labor and a method of creating conditions of social change which benefits a minority of privileged individuals. While I don’t really argue that these things didn’t (aren’t) occurring, the treatment of the subject was far too academic and disconnected for me to get behind. It is possible that I’m just not well informed on the particular academic perspective of this author. I will have to read it again.

Today’s Reads

Lacking anything constructive to write about, I thought I’d list what’s been on my reading list today.

First was an article from the Guardian reporting on Mark Zuckerberg’s statements that internet connectivity is a “human right.”

I’m not sure we should go so far as to classify connectivity as a “human right,” given that there are other things like food, security, education and health care that many people around the world don’t have access to, but I do agree that communications are essential for all four. Anti-tech folks will, of course, be annoyed but fortunately powerless. Communications development in Sub Saharan Africa, fueled by intense and enthusiastic demand, is nothing short of impressive. It’s hard to measure, but from a recent survey I performed in Kenya, it would seem that people on the ground are enthusiastic about the technology.

Second was an article on cancer meds in India in the NYT. Drug makers are apparently worried that India will flour patent laws and produce expensive cancer drugs cheaply, pricing out US and European markets. I’m encouraged that anyone at all is talking of cancer in a developing country.

India, no stranger to ignoring onerous patent restrictions on meds, is right to move against the hard-headed pharma industry. While the noted concerns of drug makers are certainly legitimate, there have to be ways to accommodate demand in developing countries while still insuring profitable domestic and international enterprises. If they can’t think of a way to do it, they aren’t thinking hard enough.

Third was an article on GMOs from Henry Miller a molecular biologist at Stanford on the unreasonable hysteria surrounding genetically modified foods.

While it is right to be concerned about the safety of new technologies, the attention and regulatory backlash against GMOs is disproportionate. It is akin to a bizarre witch-hunt or maybe a good Christian book burning. I’m sure that many would not agree with Dr. Miller’s position but I found it to be an interesting article.

But then, maybe he’s just a paid stooge of Monsanto and we really all are slowly dying from “GMO poisoning”. It’s certainly possible; the credibility of academics is being called into question over connections with Wall Street. I’m interested in reading the work of the two academics interviewed here, which argues that price increases in commodities throughout the 00′s had little to do with speculation.

Just as I’m not an expert on biotech, I’m also not an expert on finance but the data shows that price increases seem to be slowing as regulation to control commodity futures speculation has been in the works.

Does malaria facilitate the development of exploitative agricultural estates? Interview with Dr. Luis Chavez

905237_334159403372948_183902807_oMy friend Luis just published a paper in PlosOne on land consolidation or the formation of “latifundia” in Spain. Latifundia were large agricultural estates owned by the Romans, often dependent on slave labor, the growth of which has been implicated in Rome’s fall.

Luis creates a mathematical model to describe the formation of these large estates. He then tests the hypothesis that malaria transmission exacerbated the situation, by forcing land owners to sell cheaply to opportunistic land owners in less malarious areas.

Luis, an ecologist who works on issues of disease transmission (and all around great guy), is somewhat unique in the world of quantitative sciences. He took a few minutes to talk to me so that you can see why.

Who are you and what’s your background?

If you ask the japanese they might say: O gata no hen na gaijinsan. As to my academic background, I studied biology/parasitology as an undergraduate, then mathematical ecology for a M.Sc. and then was granted a Ph.D. in ecology and evolutionary biology (note: at the University of Michigan).

Nevertheless, I have always been interested in the humanities, especially history since it gives the best vantage point to understand the present. I grew up in a household where mixing things/topics was usual. Both my father and grandfather went to grad school, something unusual in Latin America, and since i was child lunch time talk was heavy on the side of human rights and solidarity, science and the need for change. When Nelson Mandela died i remembered that a lovely family activity during my childhood was going to a cultural/educational event in solidarity with Nelson Mandela and the South African people to end the apartheid.

For lay people, what’s the paper about and what motivated you to explore it?

The paper presents a mathematical model that can explain the formation of latifundia (large estates) when the profitability of land varies across landowners in a landscape. The model is also used to show that when such differences are not present latifundia still can emerge if there are differences in the risk of acquiring an infectious diseases. I built the model based on historical records to show that both patterns have been observed in societies as different as “latin” Europe (Italy and Spain) and China.

What’s a “latifundium” in Spain? I dug around a bit and could find some things about Rome and Latin America, but not so much about Spain. Why choose Spain?

A latifundium is a large estate, which requires the labor of people that do not own the land. I chose Spain because a essay by Chantal Beauchamp presented a couple of striking maps showing that places where malaria was common were those where Latifundia were common during the 1930s (Fig. 2): http://www.persee.fr/web/revues/home/prescript/article/ahess_0395-2649_1988_num_43_1_283483

The pattern of association between malaria and latifundia was not new, but only Beauchamp had data amenable for a quantitative analysis.

Are you trying to say that malaria helped enable capitalist land appropriation?

It might be the case. The hypothesis that malaria helped to enable land appropriation was put forward by the great italian malariologist, Angelo Celli. He has a book on the topic [reference 8 in the paper, available at the UMICH SPH library]. Celli was probably the most advanced malaria epidemiologist at the turn of the 20th century.

Unfortunately, he and other italians [most notably Grassi] were blackbolded in the Anglo-Saxon world because they threatened the ego of Ronald Ross by saying malaria was not just due to a parasite transmitted by the bite of a mosquito [a biological fact that, nevertheless, they independently showed and published in Italian]. If you are interested just check the oldest records for malaria in the Nature archives.

Though issues of land tenure are very different in the US (given that we killed all the natives and stole it all), we did have some big and awful land plantations in the South along with a serious malaria problem. Might we also try to apply this to the United States, and, if so, how?

I think it might have helped to the consolidation of large estates in the south. Interestingly in the Midwest you never had the latifundia observed in the south, but you had malaria in Michigan (the midwest) at some point (See Humphreys M. 2001. Malaria: Poverty, Race, and Public Health in the United States. Baltimore (MD): Johns Hopkins University Press.).

Nevertheless, in the south due, for example, to Jim Crow laws there might have been a differential risk of malaria infection not observed in the Midwest. However, i found no data to go beyond speculation, well other that in the Canal Zone the Jim Crow housing organization showed the differential malaria risk: http://www.jstor.org/stable/10.1086/529265

I find these quantitative approaches to historical problems fascinating (I also started work on a paper on malaria in post-conflict Angola, maybe I should publish it). Do you think applying these methods to history as informative to present day problems? If so, how?

I think so, history probably gives the best vantage point to understand the present (Rendering history a tinker damn’s is a good strategy to sell things no matter if they are useful or even safe, Henry Ford was clear about this). In theory failures can be highly educational, something the model suggests is that equity in land tenure is an unstable equilibrium that could only be maintained by an external policy as the Chinese did before the An Lushan rebellion, and that any kind of unfair land redistribution could only be expected to not work (latifundia will be eventually formed), as observed over and over in most Latin American nations.

The mix of methods is rather novel. However, in the discipline focused and partitioned environment of academia, do you find that its hard to get an audience for this kind of work? Is there a future in it?

I can tell you this stuff is only suitable for publication on the Arxiv.org or PLoS One/ Springer Plus, if you want it to be peer reviewed and you don’t sign your paper with an address in Princeton or Oxford. I think the audience does not belong in any department, though scholars working on the diverse fields of ecology, health, sociology, maths, economics and even history might find it interesting. I think there is some future, there is the emerging field of cliodynamics that looks at historical dynamics and there is even a journal for cliodynamics where they, every once on a while, publish good food for thought like this paper: http://escholarship.org/uc/item/1ks0g7dr#page-1

I thought my data was not dynamical enough, so I didn’t try there.

This work is heavily political. Do you think there is a place for politics in science?

I think everything gets embedded in politics. Otherwise there would have been no shutdown in the CDC and other US government agencies few months ago, etc. I don’t think my work is more or less political than a risk factor analysis for lung cancer and smoking. I think i might be blackbolded by some of the references I cited, but to understand Capitalism even the Catholic Church is studying Marx [Funny the leading scholar is the Munich Bishop, whose last name is Marx]:

http://www.catholicherald.co.uk/news/2012/06/01/cardinal-marx-urges-europe-to-move-beyond-capitalism/

Readings 1/22/2012

Some readings for today. I need to break these into categories. I must appear insane. What are y’all reading?

  1. UN Warns of Rising Unemployment. I’m not sure where these people live. The article claims that 197 mil. people worldwide are unemployed. Assuming that half the world is of working age, this means that the worldwide unemployment rate is only a cool 5.6%? (NYT)
  2. Joe Stiglitz writes a great piece on how rising American inequality is stifling post-economic-crisis growth. (NYT)
  3. Which prompted this response from fellow economist Paul Krugman who says that it’s (partially) not. (NYT)
  4. The reader outrage to which prompted Krugman to respond to his own response. (NYT)
  5. Japan is finally taking on the Republican Party’s health care plan. Old people should just “hurry up and die” according to finance minister Taro Aso to save the government a few bucks. (Worldcrunch)
  6. Obama’s Liberal Definition of Rights. The Obama inaugural speech shamelessly codified what it means to be a Liberal in 21st Century America. That’s my opinion, not the one expressed in the article, but I thought of it having read this article. (Bloomberg)
  7. Why Americans aren’t interested in electric cars. Personally, I’m interested, but broke. (Fiscal Times)
  8. Four African countries get free access to the EU market, 3 of which are islands and one of which is Zimbabwe. Could they have picked a worse government to deal with? (EP News)
  9. Economics Journals: More articles submitted, less articles published. (Vox)
  10. Diabetes’ drugs hard to get in Malawi. As people live longer, chronic disease is going to present ever greater challenges. (Nyasa Times)

Today’s Readings 1/18/2013

Happy Friday all! Ten readings for today. What are y’all checking out?

  1. Japan is likely so addicted to deflation that their economy will depressed for the long haul. Inflation is a necessity, particularly in a country that relies on exports. The Japanese, both the government and its overly careful populace, have to finally move out of the managed, fixed currency economy of the past and enter the developed world. (Bloomberg)
  2. Brazilian waxing has had the unexpected, though logical, benefit of reducing incidence of pubic lice. (Bloomberg
  3. Climate change is kicking us in the ass. Congress members may be earning political points (and exposing their own ignorance) by denying it, but the US Global Change Research Program isn’t. (Mother Jones) and here’s the portal for the 170 page report.
  4. The climate change debate isn’t a debate at all. A list of groups on both “sides” (reality vs. fantasy). The disbelievers are, of course, mostly made up of petroleum and coal producers, construction companies and “The Astroturfing Consortium”. (Big Picture)
  5. With the attacks in Mali and Algeria, the situation on the African continent gets worse and worse, and will do future economic growth no favors. (Bloomberg)
  6. Why I should sever my internet connection. Even 3 seconds of interruption at work significantly increases the likelihood of mistakes. (Fiscal Times)
  7. The deficit is NOT our biggest problem, but screaming calamity 24/7 scores political points for right wingers hell bent on eliminating social and entitlement programs. (Krugman NYT)
  8. The IMF’s Christine Lagarde lectures the Americans and the Europeans to get their political houses together or the world economic growth will remain stagnant. (NYT)
  9. Ideology as cognitive bias. It doesn’t pay to be an optimist. (Stumbling and Mumbling)
  10. Ethiopian kids on the way to becoming autodidacts (self taught), through a healthy dose of free tablet computers, but no teachers. (Africa Report)

Today’s Readings 1/15/2013

This feature may be making me lazy, but I’m short on time. What are you guys reading?

1. A new stimulus package could help jump-start Japan’s moribund economy, but structural reforms are needed for long-term revival.NYT
2. According to the Tunisian President, all dictators in the Mid East/North Africa are doomed to fall.Bloomberg
3. Japan Steps Out: A unorthodox dose of stimulus isn’t new, but signals an important change in a world of crushing austerityNYT
4. Taiwan might be the first Asian country to legalize same sex marriage.IHT
5. Best and worst Japanese films from a number of foreign critics.Midnight Eye
6. Health care costs may be eating into wages.Bloomberg
7. Bernanke speaks at the UM, and the NYT writes better than I do.NYT
8. Filmmaker Oshima Nagisa is dead at 80.Japan Times
9. China’s impact on US inflationFederal Reserve Bank of New York
10. The hidden gains of trade liberalizationVox

And

11. Tide detergent is now a target for shoplifters, drug dealers and thieves. The NYT has a debate to figure out why. One has to wonder why, in all of the meandering argument, they didn’t just ask the thieves why Tide is attractive. I’m betting it’s being used in the manufacture of drugs.NYT

Today’s Readings (Sunday) 1/13/2013

  1. Male and female mating behavior is more complicated than previously though, challenging notions that human sexual behavior is evolutionarily determined. (NYT) In other news, courtship may be over (NYT)
  2. Prime Minister Shinzo Abe’s stimulus plan reeks of petty cronyism and cement laden gifts (Noahpinion), but could have the happy benefit of pulling Japan out of its deflationary trap. (NYT) If, however, the $100B stimulus planning is squandered on pointless projects, rather than updating Japan’s creaking infrastructure, the entire experiment could be for naught. (Economist)
  3. Compartmentalization of the mind could explain why otherwise intelligent people hang on to debunked ideas like climate change denial, Bush-9/11 conspiracies, vaccine/autism links abortion-cancer links, creationism, and birthirism. (Scientific American)
  4. Gun rhetoric vs. gun facts. Regarding guns, what people state as fact could mostly just be wishful thinking. Of course, this is related to readings 2) above (Fact Check) I’m thinking that I have to do a compilation of all of the great gun related articles that have been coming out. I’ve been impressed at the amount of evidence based discussion.
  5. The science of why comment trolls suck, and they do. (Mother Jones)
  6. The Economist agrees that the US debt ceiling is an anachronism and should be abolished. At the very least it would spare us from this yearly round of pointless squabbling. Politicians have plenty of other ways of getting what they want without holding the entire world’s economy hostage. (Economist)
  7. The world suspends aid to Rwanda, blaming them for a wave of conflict in the neighboring DRC, which could stifle growth in a place where growth is needed. (Economist)
  8. Ten trends to watch in finance for 2013 (Big Picture)

And that’s good enough for this Sunday. What have y’all got for readings?

Today’s Readings 1/11/2013

1. The latest redefinition of “teacher” and “student.” Now, students are “entrepreneurs.” It is true that we don’t teach enough risk taking to college students. The present bunch, in particular, is quite risk averse. (Bloomberg)

2. Indonesian nurse passes Japan’s nursing certification despite incredible barriers. Japan needs to accept that there is no future in isolation. (Japan Times)

3. Princeton seeks to divest itself from gun companies. Probably easy said than done. There aren’t many publicly traded gun companies, and private equity investment in firearm manufacturers is shady and difficult to assess. Plus, once one goes down this road, defense is next, then pharma, then agra, then a hot of others. I’m about ethical investments, but where does one stop? (Bloomberg)

4. Yep, colonialism was bad for Africa. (Vox)

5. Africa is suffering from an food crisis in that it imports more and more of its food. This needs to change but will require a herculean change is how Africa manages trade. Africa is capable of feeding itself. An end to farm subsidies in the US and gas refining capability on the Continent wouldn’t hurt either. (Vox)

6. Japanese boy hangs himself after being hit repeatedly by his basketball coach. I once saw an autistic boy savagely beaten by a teacher at a Japanese school and heard countless tales of physical abuse by teachers. It’s disgusting that it’s allowed to continue, but it does. (Japan Times) and (Japan Times)

7. Normal people think that economists are either bozos, space aliens, or both. (Noahpinion Blog).

8. Too few women compromise China’s future, or rather, unchanging attitudes that favor men will be the downfall of Asia as a whole. (Bloomberg)

9. Regarding nationalist Shinzo Abe’s stimulus plan, “It will be a bitter irony if a pretty bad guy, with all the wrong motives, ends up doing the right thing economically, while all the good guys fail because they’re too determined to be, well, good guys.” (Japan Times)

Today’s Readings 1/10/2013

1. Economists often use shoddy data. This isn’t really news to people who work with data. Everyone uses shoddy data, since that’s all we have. Pony up some serious cash, we can get some good data. (Slate)

2. Washington is fixing the debt crisis in small increments, because that’s the way things are done in the United States. (Financial Times)

3. AIG, having been bailed out by US taxpayers, threatens to sue, claiming losses, (Washington Post), but it’s not as crazy as you think (CNBC), but it doesn’t matter, because they’re not going to sue after all. (Reuters) I admit, I was fooled.

4. Profit making and health care don’t mix well. (NYT)

5. Complex systems theorists forecast global riots for 2013 because of rising food prices. (Vice)

6. Even Krugman is into this stupid coin idea. Yeah, the one that will be minted with platinum the government already owns anyway (which makes the debt ceiling debate even more preposterous). (NYT)

7. British institution cancels affiliation with Ugandan University over anti-homosexuality stance. (Africa Report)

8. Trying to write a new Zimbabwean constitution while Mugabe is still alive is a futile effort, but they’re trying to anyway. (Africa Report)

9. I can’t figure out who the biggest loser is in the ongoing dispute between China and Japan. Likely, we all lose. (Bloomberg)

10. I didn’t know that American players go to China to play basketball. Looks like one tested positive for weed, even. (Bloomberg)

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