Book Description

A key topic of interest in the world of finance is corporate governance, an area which covers the principal/agent problem dealing with the rights and obligations of shareholders and stakeholders, as well as regulation and corporate takeovers. Studies in Comparative Corporate Governance Systems takes a critical look at this topic of growing interest by examining corporate governance internationally with eight articles on Europe, Japan, and South Africa. ... Read more

Reviews (2)

Useful concise book
As admitted in the book there is an overemphasis on American governance systems due to the many high quality research papers available by leading US academics. The strong point of this book is that the research has been condensed into concise short papers easily understood by corporate accountants (like myself). It gives a broad view of Agency Theory and the associated costs and benefits of various governance models and real life examples. As I am working in Japan, my interest was in the comparision of systems between Japan & US (as an Australian I was dissapointed at no analysis of the Australian perspective). However, the rapid change in the Japanese corporate environment in the last 1-2 years makes some of the discussions marginally out of date. A lot of the analysis though is so fundamental it is unlikely its basis will change much in the next 10 years. A good read and very thought provoking.

Written by top finance professors
This book was written by a number of famous finance professors including several Novel Prize winners. Each chapter was written by the world class academics and this contains comprehensive topics relating to international finance and governance system. This book is not expensive at all but you can learn a lot. ... Read more

Reviews (1)

Capitalism doesn't work!
This collection of 19 articles is divided into three parts, on Capital, exploitation and conflict, Global capitalism, and Crisis and the supercession of capitalism. The contributors, from across the world, reflect the increasingly widespread understanding that capitalism doesn't work. They analyse the exploitation intrinsic to capitalism and recognise that in countries like Britain there are just the two classes, a tiny minority of exploiters and the vast majority who depend on selling their labour power to make a living.

The struggle against capitalism is rooted in the workplace, where we must fight for democracy, as Saad-Filho says in his Introduction. We need to be in work, in our union, and fighting the employer. Adding together any number of pressure groups, even infusing those groups with anti-capitalist ideology will not do what is needed to end capitalism - transform the ideology of the working class.

Ben Fine accuses our trade unions of pursuing sectional interests both nationally and sectorally, when the problem is that our unions are hardly fighting for our industries and services at all. He also sees defence workers as depending on war, and energy and car workers as depending on pollution: so to end war and pollution, all we have to do is destroy what remains of our manufacturing industry!

Targeting the IMF or McDonald's is to attack symptoms, not the root of the problem, as Ellen Meiksins Wood shows. It is not a matter of building a bigger demo next time. It would really terrify the ruling classes of the world if all the anti-globalisation protestors turned to focus on working in their workplaces and trade unions to weaken and destroy capitalism.

We need workers' nationalism, that is, workers deciding their own future, in their own lands and for their own interests. As Marx wrote in the Manifesto, each working class must first of all settle accounts with its own bourgeoisie. We also need workers' internationalism, to save the future of the world and defeat the vested interest of the multinationals and the proponents of reaction and fundamentalism. ... Read more

Book Description

"What do you want?" is a constant query put to economic and globalization activists decrying current poverty, alienation, and degradation. In this highly praised new work, destined to attract worldwide attention and support, Michael Albert provides an answer: "Participatory Economics"— "Parecon" for short—a new economy, an alternative to capitalism, built on familiar values including solidarity, equity, diversity, and people democratically controlling their own lives. ... Read more

Reviews (11)

Clear alternative to capitalism
This is the clearest exposition yet of participatory economics,
an alternative to captitalism, market socialism, and
Soviet-style central planning. The participatory economics
model was developed by Michael Albert in collaboration
with Robin Hahnel. I would recommend reading this book
with Hahnel's recent book, The ABCs of Political Economy,
which provides a more in-depth critique of mainstream
pro-market economics.

Instead of allocation by how much
power or bargaining clout you have -- which is how markets
really work (forget about mainstream propaganda
about markets as "efficiency machines"!) --
participatory economics is based on the idea of
self-management -- each is to have a say over economic
decisions in proportion to how much they are impacted.

Governance by corporations and the state is replaced
by democratic worker and neighborhood organizations.
The market is replaced by participatory planning -- the
creation of a comprehensive agenda for production by
the direct input of requests
for work and consumption outcomes by individuals and
groups, and a back and forth process of negotiation.
Intead of elite planners, as in Soviet-style central
planning, we all would craft the economic plan.

In the process of individuals and groups evaluating
possible outcomes, the planning system takes account
of consumer and worker preferences, thus giving measures
of social benefits and costs. As each production group
approximates to the average social cost/benefit, waste
is avoided. The overall structure is designed to support
the tendencies in human nature towards solidarity and
cooperation, as opposed to the market, which imposes
a regime where "nice guys finish last."

Parecon has a particularly elegant solution to the
problem of under-production of collective goods,
and over-production of negative external effects,
like pollution, which are widespread and destructive
effects of markets.

Little is said about how such an economic framework
would come about. Albert thinks that having a good
vision of where we want to go is important to motivating
the kinds of mass movements that would be needed to
bring about such a change.

Economies Affect People
When was the last time you had a voice regarding what's being produced in the economy? And how much of an influence did you have over the cost of your last doctor visit? Finally, does the market care about the homeless or the environment, or does it only care about profits, leaving the former two concerns for you, the taxpayer, to deal with (i.e., market discipline)? People should ask themselves questions such as these before reading Michael Albert's Parecon: Life After Capitalism.

In a nutshell, this book offers an alternative economic vision that could fulfill human potentials and needs in participatory ways. Parecon's guiding values are equity, diversity, solidarity, and participatory self-management.

Clearly then, this book requires critical thinking on the part of the reader. Prepare to be challenged at first, as Albert analyzes the inherent weaknesses of both capitalist and the so-called "socialist" economies (e.g., former USSR), and how they both subvert human values to a considerable extent. In fact, he demonstrates conclusively how capitalism destroys equity, limits choices, wrecks solidarity, and smashes worker self-management. And because capitalism remunerates for bargaining power and has corporate divisions of labor, these ill-effects will be inevitable under capitalism, according to Albert. Therefore, Albert dismisses capitalism when thinking about a desirable economic vision.

Albert picks apart the so-called "socialist" economies in the same way. He shows the reader that such economies are clearly totalitarian, as they typically have state ownership and central planning; despite some marginal democratic forms on the periphery. Further, he argues that such systems create a new class of people who monopolize skills and decision-making -- what he calls the "coordinator class". Ironically, the philosopher Bakunin warned of this over a century ago about such a systems; a system under the control of an elite minority "overflowing with brains". Ultimately, Albert proclaims, we should reject such "socialist" systems on the same grounds that we reject capitalism; they're flawed, and violate basic human rights and "the values we hold dear".

But again, the focus of this book is to actually develop a new economy -- its relations, institutions, and so on. At the same time, it's remarkably consistent with a long tradition of libertarian thought from the Left. Albert merely expands upon those ideas in order to arrive at a realistic, desirable economic vision for the future.

Economies affect people. Understanding this and working to make that relationship compatible should be our concern. This book is an important step in that direction.

Just another attempt at brainwashing the masses
This book is good for two audiences:

1. People who are socialists and want to read more ways they can implement their big plans to destroy capitalism.

2. People who are reasonable/capitalists who want to read a laughable proposal to unite the masses and bring down the great evil capitalist societies of the world.

So basically this book is suitable for anyone. But seriously, it is simply another way to say "Down with successful people! I deserve an equal share of the economic pie just because I'm a human and I'm equal to everyone else!" and other familiar chants of the far, far left wing. It's actually quite amazing to me that people still propose such nonsensical "progressive" ideas to implement socialism and can keep a straight face. Some people are incapable of reason and/or learning apparently. This book tries to counter the common (as in common-sense) attacks on socialism and uses the familiar notion that past attempts at socialism were different or implemented incorrectly and that this new great revolutionary book has the answers to make sure the next attempt is successful.

2 points for effort, 1 for result
Credit to Albert for exploring new ideas. A few good insights. But I haven't been able to finish.

I found the writing style tedious.

The vision described feels stifling and bureaucratic. It does not appear to put a lot of value on individual freedom. For one thing, in a Parecon I need to get approval before I do anything. I even have to submit a plan for personal consumption. It seems I can't take any entrepreneurial initiative without approval, which aside from negative impacts on the economy and on innovation, strikes me as an unjustified restriction. (Sure, many people in a capitalist economy don't have these opportunities, but Parecon is taking us further backward in terms of some liberties).

The idea of being evaluated by workers' councils feels intimidating, but if done properly it could work well.

Okay, some things are worth trying. I'm convinced that a more cooperative approach to organising society is possible and desirable, but as for the more radical Parecon ideas, I'm highly sceptical.

It's not only this book and it's not only on the Left side of politics. Bias and a lack of rigour are too common: The Lexus and the Olive Tree by Tom Friedman was unsatisfying in its lack of rigourous, balanced analysis; and "The Road to Serfdom" was infuriating in its mixture of 1. half-truths (the efficiency of the market, and the inefficiency of government price-setting. Post-WW2 Britain even had inspector ensuring haircuts were the right price, so Hayek did have valid concerns), 2. blatant untruths (compromising the market leads inevitably to totalitarianism) and 3. enormous blind spots (Hayek completely ignores externalities, the free rider problem, and inequalities in opportunity due to differences in health care and education).

So Friedman and Hayek are no more satisfactory than Albert. Actually, Albert has been far more willing to push the boundaries and explore new ideas. So Parecon does have value.

It's worth reading someone who is genuinely insightful and rigourous and isn't stuck in one viewpoint. I'm very impressed with Amartya Sen's "Development and Freedom". Intelligent, rigourous and balanced. Importantly, it balances a philosophical analysis of freedom with a very empirical examination of outcomes. I'm having to read it very slowly, but it's got far more substance than Parecon, or the other books mentioned. I can see why Sen won a Nobel Prize.

Parecon has its place, but I'd recommend getting a firmer grip on economics and issues of freedom before you do - and Sen's book is a good place to start.

Albert's best work on ParEcon yet.
It is amazing to see critics trivialize the incredible amount of evolution in economic theory that it has taken to get us to the point of a workable and equitable product that both enhances work output and quality of life. Demonizing Participatory Economics is very easy.. unless you've actually read the book.

What Albert presents in PARECON is a solid, workable plan worthy of thought, discussion and debate in every level of society. Albert has solidified the original economic theories that he developed with Robin Hahnel in their previous works together (Looking Forward; Political Economy of Participatory Economics), and has presented thoughtful reflections on the workability of such a system in our world.

It is often that critics who have not actually read through the proposals that ParEcon presents argue against it with such erroneous statements as, "the jobs that produce the most value, i.e., the most important jobs, will go unfilled!" I challenge you, the reader, to find out just how untrue this is for yourself. Participatory Economics is a long-awaited step in the evolution of economic theory, and I encourage everyone to take a look into it. ... Read more

Book Description

If our economy is doing so well, why are so few of us better off? The answer: rising wage inequality.

Since the early 1970s, the gains of growth have gone almost entirely to a small fraction of the wealthiest and most powerful. Today, American wage inequality is a national crisis, and the question must be: What are we going to do about it?

In an impassioned argument backed by impressive statistical evidence, James Galbraith shows that inequality is not inevitable, nor irreversible, nor the result of impersonal market forces. Instead, blame belongs to specific political decisions and the poor economic performance they produced. And the solution lies within reach, through a return to an economic policy commited to full employment, low and stable interest rates, strong and stable economic growth, and control of inflation by civilized means.

For decades before 1970, America was home to booming technological progress amidst a stable relationship between rich and poor. We were, in those years, a true middle-class society. It was only when the government decided to abandon the goal of full employment, to fight inflation by throwing people out of work, and to use high interest rates like a bludgeon, that inequality began to threaten the American dream.

In Created Unequal, Galbraith explains the relationship between economic policy and the structure of pay. He shows why "knowledge" workers have done well and why service workers have not; why consumer industries have lost ground and why the true service economy is smaller than you think. Whether you are in the aircraft industry (rich) or the garment business (poor), medicine (up-and-coming despite HMOs) or residential construction (in deep decline), you will be surprised and provoked by his findings. Most of all, Galbraith gives us all hope that we can reclaim our country through economic understanding, commonsense policy, and political action. ... Read more

Reviews (12)

Outstanding..filled with technical analysis, insights, data.
Argues that America's wage gap was driven up by public policies shaped by and for the wealthy. Explains the relationship between economic policy and the structure of pay. Shows why knowledge workers have done well and why service worker have not; why consumer industries have lost ground. Shows that differential power, rather than a theory of differential skills, explains inequality in pay. Includes technical notes and bibliography. For those who want to gain insight into inequality in pay this work, by a leading economist, This book is outstanding and filled with technical analysis, insights and supporting data.

A Great Antidote for Greenspan Worshippers
Jamie has all of his father's flair for writing plus James K. Galbraith, like his idol John Maynard Keynes, seems to be defying the law of regression. Jamie has all of his father's flair for writing plus the modern statistical tools of his trade. Many economists consider the market as the chief producer of inequality, a major pillar of his father's thinking and the need for state expenditures to reverse this tendency. Jamie blames policy-makers after 1970 since this seems to be the dividing line between stability in the distribution of U.S. wages and the subsequent increase in wage inequality. Students of economic doctrines tend to emphasize Alfred Marshall's belief that the evolution of capitalist markets would produce greater equality in income (and presumably wage) distribution. This idea was reinforced by Nobel prize-winner Simon Kuznets' work in the early fifties in the U.S. which claimed that recent statistics showed increased equality in income distribution. What Kuznets was measuring, however, was the temporary influence of full employment during World War II on U.S. income distribution, something that Jamie argues was reproduced by "New Economics" policy-makers in the 60s and for a couple of years under Reaganomics in the mid-80s. The ultimate source of this power to create less-than-full employment and increased inequality lies at the door of Paul Volcker and his successor Alan Greenspan, Chairmen of the Fed from 1979 until today..Jamie, in contrast to the conventional wisdom, is relentless in his criticism of Greenspan feeling that we might have to go back to the drawing board in changing the thrust of our macroeconomic policy. Having opted for balanced budgets and neutral fiscal policy, monetary policy has become the only game in town under President Clinton. Whereas Greenspan cut the federal funds rate in half in early 1992 in a futile attempt to reelect President Bush, he reversed course under Clinton by almost doubling the rate beginning in February 1994 ina totally unnecessary attempt to control phantom inflation. With the continued disinflation under Clinton, real (inflation-adjusted) interest rates have risen and produced what Jamie feels is an overvalued dollar especially with respect to Japan and Germany. But the dollar is undervalued with respect to Latin America. This dichotomy reflects the dirty float of the past three decades and helps explain the relative stagnation of Latin America. I am totally in agreement with Galbraith's conclusions on the need to return to the low real interest rates before Volcker's biting of the proverbial bullet and tend to subscribe to the casual attitude towards controlling inflation. If we ever get back to a demand-pull inflationary situation, there would be time to act. As it is, the principal problem of the millenium would appear to be the deflation and deflationary expectations . As Galbraith admits,"the extreme proto-Keynesian position, that the risk of inflation ought simply to be ignored, should not be dismissed entirely out-of-hand."

Technically solid, but weaker on policy arguments
"Created Unequal" is an impressive work of economic analysis of wage and wealth inequality. Although the book occasionally gets into some relatively rigorous economics, it should be accessible to the determined lay reader.

Professor Galbraith's central thesis is that the amount of wage inequality (the difference between what the wealthiest make and what the poorest make) is tied directly to a number of key factors: the unemployment rate, the interest rate, the strength of the dollar, and so on. Essentially, the lower the unemployment rate, the less the degree of wage inequality. I am simplifying his thesis considerably here, but this is the essence of it. There is a considerable amount of technical research presented that supports the thesis and demonstrating a strong correlation between wage inequality and unemployment.

So, Professor Galbraith makes a persuasive case that the government can affect wage inequality by making certain policy decisions, such as lowering unemployment, raising the minimum wage, weakening the dollar against international currencies, and so on.

But, what is missing from the book is a serious justification of why the free market should not dictate the value of labor. In other words, from a normative standpoint, why should workers be paid two or three or more times the value of their labor? There are egalitarian arguments to be made, of course, but at the same time, if the value of Bill Gates' labor is, say, 100 times more valuable than the work of a custodian, why should Gates' wages be limited to, say, 30 times that of custodian? (At one point, Professor Galbraith suggests a 30-1 limitation.)

In the end, this is an impressive and valuable work. You may or may not agree with the policy decisions that Professor Galbraith supports, but his analysis must be reckoned with.

A compelling case that politics affects wages.
Galbraith provides a cogent, well-documented argument that instability has more to do with wage inequality than does a mechanism for market efficiency. "When the ocean is flat, rowboats and dinghies can join the trawlers out on the reef where the fish are running. But in a gale, the little boats sink while the large ones do not." He argues that reasonable wages obtain from low unemployment and that expecting science and technology to act as the "centerpiece of a progressive agenda is absurd." Highly recommended.

A book for Europeans
Polititians and business people in Europe often recommend to learn from the US. But usually they don't tell the full story. Galbraith's book does. ... Read more

Book Description

Can Russia's recent burst of economic growth be sustained? Taking a comprehensive look at the economic and political regime shift from Yeltsin to Putin, this book explores the key challenges facing the Russian economy: to narrow the productivity gap between Russian and Western firms and industries; to attract more domestic and foreign investment; and, underlying these goals, to implement the judicial, administrative, social, and banking reforms necessary to future growth.

Written by a team of researchers from the Center for Economic and Financial Research--a Moscow-based independent think tank--the book draws on a wealth of new research and data. The authors emphasize the need to strengthen the protection of property rights, restructure the banking sector, and reduce government officials' powers to intervene arbitrarily in private businesses. They also stress the importance of enhancing human capital--through educational reform and by reducing barriers to citizens' geographical and sectoral mobility. Considering political institutions, the authors examine the promise and risks of the centralization of power around President Putin. Finally, they discuss the likely impact of Russia's greater integration into the world economy, notably through its potential membership in the World Trade Organization. ... Read more

Reviews (1)

economy
I am staying in russia. I am student here. I want to know more about russian economy ,because iam studing economy. ... Read more

Book Description

It is widely believed that globalization has proceeded to thepoint where international economic linkages are as strong as thosewithin nations. Struck by research suggesting that this perception isdramatically mistaken, John Helliwell spent three years assessing theevidence. The results are reported in this book, the latest inBrookings' Integrating National Economies series. It provides the mostsystematic measurements yet available of the relative importance ofglobal and national economic ties.The original finding, based ona gravity model of trade flows, was that 1988 trade linkages betweenCanadian provinces were twenty times as dense as those between Canadianprovinces and U.S. states of similar size and distance. A much longerand more detailed body of data is used to expand and explain thesefindings. Data for trade within and among OECD and some developingcountries are used to show that the Canadian-U.S. results areapplicable to other countries. Helliwell then surveys and extends theevidence relating to price linkages, capital mobility, migration, andknowledge spillovers, finding in all cases very large border effects. The evidence offers a challenge to economists, policymakers, andcitizens to explain why national economies have so much staying power,and to consider whether this is a good or bad thing. Helliwell arguesthat since large and small industrial economies have similar levels ofincome, there are likely to be diminishing returns from increases inglobalization beyond levels sufficient to permit the ready exploitationof comparative advantages in trade, and relatively easy access toknowledge developed elsewhere. ... Read more

Book Description

Is there one best way to run the modern business corporation? What is the appropriate balance between shareholders, executives, and employees? These questions are being vigorously debated as layoffs, scandals, and restructurings rattle companies around the world. The common assumption is that globalization is merging the varieties of corporate capitalism. Yet, as this book shows, corporations in Japan and the United States are responding differently to the pressures unleashed by globalization. In America, shareholders have emerged as dominant while employment is more transitory and market-oriented. In Japan, shareholders are gaining influence but employees still play a key role in corporate strategy and governance. In The Embedded Corporation, Sanford Jacoby traces this enduring diversity to national differences in economic history and social norms, and, paradoxically, to global competition itself.

The book's vantage point for exploring the varieties of capitalism is the headquarters of large corporations--in particular, their human resource departments, where changes in markets and technology turn into corporate labor policies affecting millions of workers. Jacoby reveals the inner workings of these departments. Despite some cross-fertilization, Japanese and American corporations maintain distinctive approaches to human resource management, with Japanese HR departments occupying a more central position within the corporation. As Jacoby shows, this has important consequences for how firms compete, for corporate governance, and even for the level of inequality in Japan and the United States.

The Embedded Corporation is a major contribution to our understanding of comparative management and the relationship between business, society, and the global economy.

... Read more

Book Description

The process of globalization, evidenced by environmental change, migration, industrial relations and the extraordinary acceleration of industrial economic relations, has not led to increased convergence in the global economy. Rather, in some cases it has been accompanied by greater divergence between the fortunes of the world's richest and poorest nations. Professor Sylos Labini offers a new approach to the theory of economic growth and reminds us of the great variety of economic trajectories in developing countries. He further proposes a strategy of institutional reform to respond to the problem of underdevelopment. ... Read more

Book Description

In most of the currency crises of the 1990s, the largest output falls have occurred in those emerging economies with large currency mismatches, a phenomenon that occurs when assets and liabilities are denominated in different currencies such that net worth is sensitive to changes in the exchange rate. Currency mismatching makes crisis management much more difficult since it constrains the willingness of the monetary authority to reduce interest rates in a recession (for fear of initiating a large fall in the currency that would bring with it large-scale insolvencies). The mismatching also produces a "fear of floating" on the part of emerging economies, sometimes inducing them to make currency-regime choices that are not in their own long-term interest. Authors Morris Goldstein and Philip Turner summarize what is known about the origins of currency mismatching in emerging economies, discuss how best to define and measure currency mismatching, and review policy options for reducing the size of the problem. ... Read more

Reviews (1)

Strongly recommended reading for policy makers
In Controlling Currency Mismatches In Emerging Markets, Morris Goldstein (Dennis Weatherstone Senior Fellow at IIE) and Philip Turner (Head of the Secretariat Group in the Monetary and Economics Department, Bank for International Settlements) collaborate in revealing and dealing with past and present weaknesses in economic policies and institutions in contemporary and emerging markets around the globe. But more than a simply litany of flawed policies and economic ills, the authors present an effective and practical plan of action to control currency mismatches through a managed floating currency regime, an inflation targeting regime for monetary policy, regular publication of data on currency mismatches at the sectoral and economy wide levels, stepped up supervision and monitoring of currency mismatches in banks and in the loan customers, changes in official safety nets and in IMF policy conditionality, implementation of more prudent debt and reserve management policies in emerging economies, and a higher priority with respect to developing domestic bond markets, hedging instruments, and reduced barriers respecting foreign-owned banks within emerging economies. Informed and informative, Controlling Currency Mismatches In Emerging Markets is a sold work of seminal research and strongly recommended reading for policy makers with respect to international economic issues. ... Read more

Book Description

Reviews (1)

excellent analysis of hegemonic control over periphery
This is without doubt one of the best books I've ever read. It traces the ways that Ireland was incorporated into first British and later U.S. economic hegemony, touching on such far-reaching issues as the true nature of the Marshall Plan (a calculating attempt to create European dependence on the U.S. and open European markets to U.S. products) and the ways in which core economic powers control the economic policies and decisions of apparently autonomous peripheral nations. It is an extremely valuable study, not least because of the relative proximity* of the players--culturally, racially and geographically--which sidesteps many of the other distracting variables that appear in many cases of core-periphery interaction. O'Hearn combines quantitative analytical depth with a readable and compelling style, making this book useful to professional economists and sociologists, yet accessible to undergrads and other well-read individuals. A must-have for anyone interested in political economy in any region or time period within the last milennium.

*British and Irish readers: I said _relative_ proximity. There's no need to take offense. ... Read more

Book Description

Why has capitalism produced economic growth that so vastly dwarfs the growth record of other economic systems, past and present? Why have living standards in countries from America to Germany to Japan risen exponentially over the past century? William Baumol rejects the conventional view that capitalism benefits society through price competition--that is, products and services become less costly as firms vie for consumers. Where most others have seen this as the driving force behind growth, he sees something different--a compound of systematic innovation activity within the firm, an arms race in which no firm in an innovating industry dares to fall behind the others in new products and processes, and inter-firm collaboration in the creation and use of innovations.

While giving price competition due credit, Baumol stresses that large firms use innovation as a prime competitive weapon. However, as he explains it, firms do not wish to risk too much innovation, because it is costly, and can be made obsolete by rival innovation. So firms have split the difference through the sale of technology licenses and participation in technology-sharing compacts that pay huge dividends to the economy as a whole--and thereby made innovation a routine feature of economic life. This process, in Baumol's view, accounts for the unparalleled growth of modern capitalist economies. Drawing on extensive research and years of consulting work for many large global firms, Baumol shows in this original work that the capitalist growth process, at least in societies where the rule of law prevails, comes far closer to the requirements of economic efficiency than is typically understood.

Resounding with rare intellectual force, this book marks a milestone in the comprehension of the accomplishments of our free-market economic system--a new understanding that, suggests the author, promises to benefit many countries that lack the advantages of this immense innovation machine. ... Read more

Reviews (2)

Packed with Knowledge!
This book should certainly be on every businessperson's reading list, and every legislator's, and every student's. It is a lucid, well-organized and admirably logical presentation of the role of innovation in capitalism, and the role of capitalism in innovation. Author William J. Baumol accomplishes something rare indeed by spanning the chasm between quantitative and qualitative economic writing. He has the verbal skill to write clearly and accessibly, explaining his points in plain if elevated and austere language, and illustrating them with interesting historical examples. His rigorous mathematical demonstration would satisfy the most demanding academic economist. Baumol's insight that capitalism's great achievement is to make innovation routine distinguishes this book from others on innovation, entrepreneurship and creativity. Although the lone inventor matters, ancient Rome and China had lone inventors and yet those empires did not produce economic growth on the scale that capitalism has produced it. Capitalism is distinctly productive because it makes innovation a self-sustaining and indispensable phenomenon, driving and driven by competition. We find this intriguing thesis well worth serious consideration.

Good Book on Necessity of Institutional Rules
"The thesis of William J. Baumol's latest book is articulated clearly at the start. The free-market growth engine depends ultimately on institutional rules. People may have a natural entrepreuneurial instinct, but that instinct can find outlet in criminal, rent-seeking, or other destructive activities as easily as in productive venues. Economic growth depends, however, on more than just rules and norms that channel such inclinations in the "right" direction. It depends also on rules governing the appropriation of intellectual property and on the precise trade-off a society makes between pricing information at its marginal cost (making it free) and providing incentives for invention and innovation by creating rules to allow appropriobility for fixed periods of time. We call this body of rules patent, copyright, and, in general, intellectual property law (although, as Baumol argues, antitrust is also relevant). The dilemma is that in the absence of such protection there are few private incentives for producing new information or discoveries, but in the presence of such protection we impose monopoly pricing and, consequently, static efficiency losses."

"The first section of the book, devoted to the "capitalist growth mechanism," is the most interesting. Here Baumol develops his vision of a capitalist economy as consisting of competitive price-taking sector and an oligopolistic sector in which competition occurs more often on the innovation margin rather than on the price margin. The pharmaceutical and computer industries are cases in point. This oligopolistic sector is the economy's engine of growth. Firms here must innovate or they die; they also must price discriminate or die because the heavy fixed costs of innovation cannot be covered if everyone pays a price equal to marginal cost. These costs must be recouped in the same way that railroads were forced to price discriminate to cover their fixed costs for rolling stock and permanent way. Baumol cautions antitrust authorities against jumping to the conclusion that departures from marginal-cost pricing are necessarily evident of monopoly power."

"As Baumol's book proceeds, it devotes a generally increasing share of space to formal models...[and] it was somewhat dissapointing...to discover how much of the second half of the book is devoted to model building as opposed to discussion..." ... Read more

Book Description

In the 1980s and 1990s, nations throughout Latin America experienced the dual transformations of market liberalizing reforms and democratization. Since then, perhaps no issue has been more controversial among those who study the region than the exact nature of the relationship between these two processes. Bringing a much-needed comparative perspective to the discussion, Judith Teichman examines the politics of market reform in Chile, Argentina, and Mexico, analyzing its implications for democratic practices in each case.

Teichman considers both internal and external influences on the process of Latin American market reform, anchoring her investigation in the historical, political, and cultural contexts unique to each country, while also highlighting the important role played by such international actors as the World Bank and the International Monetary Fund (IMF). Informed by interviews with more than one hundred senior officials involved in the reform process, her analysis reveals that while the initial stage of market reform is associated with authoritarian political practices, later phases witness a rise in the importance of electoral democracy. She concludes, however, that the legacy of authoritarian decision making represents a significant obstacle to substantive democratization. ... Read more

Book Description

Larsson takes the reader on a fast-paced, worldwide journey that extends from the slums of Rio to the brothels of Bangkok and shows what access to global markets means forthose struggling to get ahead in the world. ... Read more

Reviews (9)

Sunny Side Up
I had to read this book for a Business course. Larsson meanders through the chapters, dropping and picking up points like a stream-of-concience dictation. While his Pro-globalization points are good, he disregards the arguments against globalization as if they are irrelevant. The point of the book could be made in about half the pages, especially if Larsson would leave politial bashing out.
If you want to explore the issues of globalization to make your own decision on whether you agree with it or not, choose something else, or supplement this book heavily. It's a little boring, but may be useful once you have the background on globalization.
If you have a background in business, don't waste your time with this book. The arguments are based almost soley on Macro and Microeconomics 101 priciples.
If you are looking for fuel to support your Free-Trade fire, this book will provide you with many supportive case studies. You have my blessing to read this book.

typical cato friendly misfirings, innocent people hit
Check out the cato institutes site, much more interesting and cheaper.
Then rememember who funds cato. Maybe if they'd just come out of the closet that their ideology and analysis is slanted by contributors it wouldn't be side. Check their contribution page, too. No cheapo's are allowed.
The old truism rears it's ugly head: "He who calls the piper calls the tune." especially when it comes to politcal economy.

The world was more global prior to WWI than it is now. All industries have flourished and been rescued as a result of keynesian policies and government intervention. All the buzzwords flying around mean that labor and wages will be further destabilized and thrust downward, all in the name of returns on bonds and stock knockers, the part of the economy that receives the most welfare and protectionism. A stable, productive, and well-paid working class make for a strong economy. This one proposes slight variants on the current pyramid scheming. Should be called something along the lines of "health and happiness through starvation."

From 73 to 97 productivity went up some 37% while wages fell 14%. Fool's progress. This is the trend that people who thrive on this would like to see continue. If this is you then you'll like this book.

Good, but too much Asian-focused
The book is a good read, however, there is too much focus and evidence on Asian countries. This may be due to the author's obvious familiarity with the region. However, this renders the evidence for his case rather skewed and less colourful. Also, the book gets off the track occasionally and loses its touch with the argument for globalization. Frankly, I am not sure whether I liked the book overall or not as I have a feeling that the arguments could have been put forward in less space. I wish it was written in a more succinct way.

The Race to the Top: The Real Story of Globalization
This book certainly attempts to show the merits of free-trade against the alternatives of protectionism, mercantilism or colonialism. However, Larsson's book left many things unsaid. His analysis is too anecdotal, and if I were a anti free-trader (which I am not), then I could by the same token come out and give a multitude of horror stories that are seem to be the result of free trade.

Those of you who wish to buy a comprehensive defense of free trade, this book is not for you. This book is rather a good source of stories and vignettes that would be helpful in a bar argument with the big hairy white guy next to you. Instead, I suggest that you pick up Against the Dead Hand by Brink Lindsey; it is much more comprehensive and gives a concise and accurate history of the struggle to "race to the top."

Pretty Good Account of Reality
Tomas Larsson's The Race to the Top is an interesting read. While acknowledging the bad aspects of the new global economy that globaphobics are prone to point out, he suggests that the alternative (if there is one) is much worse. Globalization has helped to increase people's income the world over, while isolation, as practiced by various countries from Brazil to North Korea has led to economic stagnation and corruption. Larsson suggests that the current state of many developing countries can be attributed to too little globalization, and too much governance (not the opposite, as many in the anti-globalization camp would contend). The book tends too lose steam as it hits the last third of the book: the almost-mandatory anecdotes that it seems every book supporting globalization is required to have (most likely to help counter the same pervasive tendency in the globaphobic camp). Perhaps I'm less sympathetic to the anecdotal approach because of my economics background, and I've already heard a million anecdotes from both sides. In any case, the first two-thirds are definitely worth reading, especially for those who are still sitting on the fence in the pro or con debate. ... Read more

Book Description

A Companion to Economic Forecasting provides an accessible and comprehensive account of recent developments in economic forecasting. Each of the chapters has been specially written by an expert in the field, bringing together in a single volume a range of contrasting approaches and views. Forecasting is a practical venture, so many of the chapters are aimed at practitioners and nonspecialists.

This book surveys a field that has expanded rapidly in recent years. There are no other up-to-date treatments that survey forecasting in a single volume. At present, the interested reader has little option but to seek out journal articles and books which often extol the virtues of one approach among many, or explain just one of the many problems that beset economic forecasting. The Companion provides a comprehensive account of the leading approaches and modeling strategies that are routinely employed. An extensive editorial overview places the contributions in context, and shows their interconnections and commonalities. ... Read more