Book Description

Understanding Capitalism, 3/e provides an introduction to economics with extensive attention to the global economy, inequality, the information revolution, the exercise of power and the historical evolution of economic institutions and individual preferences. Its 'three dimensional approach' focuses on competition in markets, command in firms, governments and international relations, and change as a permanent feature of a capitalist economy promoted by technical innovation and conflict over the distribution of income.Understanding Capitalism, 3/e, is designed for introductory undergraduate courses in economics and students of political economy throughout the social sciences. ... Read more

Reviews (35)

Very good read but flawed
As we are used from the authors ( The Prize and their work in CERA) we get a very well written and well researched expose. It is by far not as dry as most books on this subject and actually it is quite light reading.

It starts of well by demonstrating the rise and decline of Government dominated economies in the West as well as in other parts of the world. They describe the initial successes and later failures. The transition to the free market economies we have seen in the past two decades is described well. Unfortunately the book does little more than that...description.

In particular the idea that we have fixed everything now with the global free markets radiates from some of the pages on the Chicago/Harvard experts. The questions posed in the introduction on e.g. how to deal in terms of social and moral systems with the new economic order do not get attention. Instead we gate the same feeling as with reading Fukuyama's End of the World History which at that time was pretentious and looks utterly ridiculous today.

It is not only the current economic crisis but also the imbalances the new system has brought ( eg overproduction of commodities, loss of control over currencies, destabilized capital flows) that has not been identified as possible outcomes of the free market policy. This leaves alone the many disasters the world has seen with privatization.

Therefore, a very good and entertaing read but a bit short on the thought provoking side.

Offers insightful understanding of globalization.
Daniel Yergin provides the reader extraordinary insight into contemporary globalization. In a masterful, sweeping work that encompasses economic and social history of the post-war era, Yergin (who won the Pulitzer Prize for "The Prize," his study of the oil industry) and his co-author Joseph Stanislaw help us understand how economies around the world, but especially in the third world, are abandoning the old faith in big government and are embracing the marketplace. But Yergin and Stanislaw also warn that the marketplace -- laissez-faire -- is fraught with perils for countries that don't have sound governance and indigenous institutions and entrepreneurs who are able to function responsibly in an increasingly interdependent world. I found the book's analysis particularly lucid; the chronology at the end, which details the evolution of economic theory as well as cites political trends, should be especially useful to students. This is a book I'd recommend highly for laymen and scholars alike.

Resource Allocation and the Battle of Economic Ideals
In Carl Sagan's "Contact," the unknown entity encountered by Arroway after her journey into the wormhole delivers a scathing critique of the human condition, and goes on to express his concern about Earth's "astonishingly backward economic systems." "Commanding Heights" is a comprehensive account of those "backward" economic systems and chronicles the seemingly amaranthine battle between governments and the marketplace for control of the most important elements of the global economy. The discussion centers on the economic events of the second half of the twentieth century, sandwiched between the establishment of the British welfare state at the conclusion of the Second World War and the Asian financial contagion unfolding at the time of the book's publication.

The theme of "Commanding Heights" is the superiority of resource allocation via free markets vis-à-vis resource allocation by means of government control of strategic business undertakings. Along this free market-government control continuum, there are three fundamental, ideological positions concerning the workings of an economy: economic totalitarianism, strategic intervention, and non-interventionism. Given this backdrop, the second half of the twentieth century is depicted as a colossal experiment in wealth creation and redistribution. Advocates of neoclassical economics such as Friedrich von Hayek pitted their ideas against Keynesians and supporters of the command-and-control system.

World War II and its concomitant cost in human lives and shattered economic potential served as the catalyst for a remaking of the global economic order. Policymakers and politicians began questioning the effectiveness of a purely laissez-faire market system in mitigating the impact of macroeconomic failures and in addressing the issues of equity, poverty, and unemployment. Keynes provided a blueprint for the emergence of the so-called mixed economy, advocating government intervention through fiscal and monetary measures. Nationalization of strategic industries, central planning, and direct regulation were some of the tools made available to administrators.

By the time of the oil shocks of the 1970s, it became increasingly clear that this system of state control over essential economic activities was ill-equipped to deal with market shocks, and that regulatory capture rendered direct government supervision of natural monopolies and fundamental services ineffective and untenable. At the end of the 1980s, concerns about market failure started to give way to belief in the superiority of the market in allocating resources and ensuring that economic actors adhere to the principles of equity and fair play. Government began to take a back seat from managing the commanding heights of the economy, and privatization, deregulation, and liberalization became the norm.

The authors are unabashedly in favor of laissez-faire economics; this is shown by the recounting of recent economic history as a set of multifarious journeys undertaken by various countries that nearly invariably leads to the adoption of neoclassical economics as the sole logical solution to the ills caused by big government.

Ultimately, whether the experiment with 'enlightened' free enterprise and the continuing retreat of government will succeed or not in the long term will depend on a host of factors, such as: (1) is the pursuit of pure profit by erstwhile government-owned entities detrimental to public welfare? (2) will liberalization ensure a fair distribution of wealth? (3) does internationally mobile capital impinge on national sovereignty? (4) is the marketplace inherently superior in price determination, especially in the short term? and (5) will the "balance of confidence" turn out to be in favor of free markets?

GREAT BOOK
Extraordinary ! Hard to write, easy to read ! Academic approach with a non-academic language ! While you are reading this book, you are learning without realizing ! This book makes learning economics enjoyable.
A good look at the battle between government and market forces in the history of economy. New economies, emerging markets, economic thoughts, governments, all of them are included in this book. From China to Argentina, you can trace the history of economic battle between the governments and market forces. All I can say is , if you are interested in world politics and world economics, if you are running for presidency, if you are a businessman or bureaucrat, you need this book in order to get some lessons from the past.

Did You Say "A Lively Economics Book"?
Don't be scared, Commanding Heights, in every sense, is a lively yet informative economics book. A text for everyone, from the main street person to Milton Friedman

The writers, Daniel Yergin and Joseph Stanislaw, are both players of the business world, and Ph.D. holders (Yergin's from Cambridge University, where he was Marshall Scholar, and Stanislaw holds a Ph.D. from Edinburgh University). Furthermore, Yergin's book "The Prize" was awarded the Pulitzer Prize. One could only expect a dry, scholarly frightening work from the two, but, surprisingly, Commanding Heights is anything but intimidating.

This is a very good introduction to 20th century's economic plans and philosophies- from Gandhi's "swadeshi" to Thatcherism of the late 1970s and 80s to the 'global economy' of the 90s and present.

The book's treatment of Thatcher and Thatcherism is very good and readable, and almost enlightening. The portrayal of Margaret Thatcher is illuminating, if not flattering for the subject. The Thatcher of the book is not the evil witch of left-wing politics, but that of a hard-working, decent and uncompromising woman from a lower middle class background. Her (political) partnership with Joseph Keith and her devotion to Keith's plan is intriguing, and her David-and-Goliath battles with the 'establishment' is inspirational. ("I am the rebel head of an establishment government" she once boasted). Keynesians beware- this book might turn you into a Thatcherite!

Another highlight is the book's treatment of Latin America's economic dogmas and policies. Here, Chapter Nine of the book, it reads like a dark, compelling, political thriller authored by Vargas Llosa (Not surprisingly, Llosa's name appears in this book). Like the rest of the book, this chapter is highly fascinating and lively.

With great clarity and intelligence, this is a highly recommended 'big' book. A great companion as we face a new century. READ IT! ... Read more

Book Description

After Capitalism is the apex of the life’s work of one of the most respected scholars of the American workplace. For nearly half a century, Seymour Melman has been an influential commentatoron capitalism, militarism and their discontents. In After Capitalism he explores a growing trend in capitalist systems worldwide: workplace democracy.

The end of the Cold War in 1991 inspired an unprecedented outburst of triumphalist rhetoricamong proponents of unfettered capitalism. Free-marketeers believed that we were witnessing “the end of history,” and proclaimed that the market economy was here to stay, that all alternatives had been proven inferior. Melman, in dissent, tracks the increasing social and economicinequities and the resulting cries for workplace reform.

He points out the ominous parallels between the Soviet Union’s planned economy and the relentless onward march of American capitalism. Just as the Soviet planned economy venerated “the State” above all else, American capitalism views the health and eternal expansion of the free market as the ultimate goal: both propagate vast and harmful income gaps, both rely on and promote militarism—and neither leaves much room for consideration of workers’ well-being. Melman analyzes the adverse economic impact of these flaws and oversights, which have led to “grave production weaknesses in the U.S. economy,” and he suggests an alternative to current economic organization that holds out the promise of both greater fairness and equity and more soundly balanced production.

“Workplace democracy,” in which workers actively participate in the management of their workplace, is gaining ground in venues as diverse as Israeli kibbutzim and Basque factories. Melman explains how workplace democracy can, and why it should, be implemented in America. After Capitalism is the new century’s first essential book about labor: thoughtful, humane, at once commonsensical and revolutionary, Melman’s prescriptions can inspire changes in the way the world works. ... Read more

Book Description

Updated and Expanded Edition

Winner of the Grawemeyer Award for Ideas Improving World Order 1992, Named New Options Best Political Book


Economist Herman Daly and theologian John Cobb, Jr., demonstrate how conventional economics and a growth-oriented industrial economy have led us to the brink of environmental disaster, and show the possibility of a different future. ... Read more

Reviews (7)

Ethical, Humanitarian, Communitarian, Sustainable

Dr. Herman E. Daly may well be a future Nobel Prize winner ...he is especially well-regarded in Norway and Sweden, where he has received prizes one step short of the Nobel. He is the author, co-author, or primary contributing editor of many books that fully integrate the disciplines of economics and ecology. I bought the three most recent for the purpose of selecting one to give out at my annual Global Information Forum. I ended up choosing this book to give away to hundreds, in part because it is available in paperback and is not a more expensive "trade" publication; and in part because it is strong in laying out specific ecological policy areas in the context of a strong theological or ethical perspective.

Of the three books I reviewed, (the newest "Ecological Economics: Principles and Applications", the oldest, updated, "Valuing the Earth: Economics, Ecology, Ethics") the first, the text-book, is assuredly the most up-to-date and the most detailed. If you are buying only one book for yourself, that is the one that I recommend, because these are important issues and a detailed understanding is required with the level of detail that this book provided. It should, ideally, be read with "Valuing the Earth" first (see my separate review of that book, from the 1970's updated with 1990's material and new contributions), then this book ("For the Common Good"), and finally the text book as a capstone. But if you buy only one, buy the text book.

This is a second-edition work, updated from the 1984 first edition. I like it very much in part because it comes across as less academic and more common-sense in nature. Part One does a lovely job of tearing apart the fallacy of misplaced concreteness with respect to economics, the market, measuring economic success, the reduction of the human to a "good" that can be traded without regard to humanity and ethics and community, and land. Part Two gently introduces the reader to the many distinguished thought-leaders and practitioners who have gradually matured the discipline of economics to embrace humanity, community, and sustainability as non-negotiable realities that cannot be ignored.

Part Three, a major factor in my choosing this book over the others for broad pro-bono distribution, addresses the specifics of policies one element at a time: free trade versus community; population; land use; agriculture; industry; labor; income policies and taxes; from world domination to national security as an objective. Finally, Part Four, without being corny or preachy, describes the religious or ethical vision (I still think the Golden Rule works as a one-sentence definition of common interest).

An afterword on debt in relation to money and wealth is particularly timely as the American public foolishly allows the White House carpetbaggers to run up a $7 trillion deficit that our great-grandchilden will never be able to pay off if we continue is these evil and irresponsible directions, all in sharp opposition to the sensible and ethical constructs in this book.

Of the three books, none of which really duplicate one another in any negative way, albeit with overlaps, this is the second that I recommend for purchase, after the textbook.

Great ideas, will they work?
The opening criticisms of how economics is taught in today's university structure along with the inappropriate credence given this largely theoretical topic's conclusions are well-presented and well-received. Similarly, the general theme of the recommendations is presented very nicely. Basically, we must focus on more local goods, more self-sufficiency in communities. The authors take the time and care to address such technicalities as what exactly they mean by communities. In general their care is a strength of the book, though perhaps more of the details could have been put in appendices or footnotes rather than disturbing the flow of the text. My main complaint is that no EXAMPLES are given--real-life attempts, either successful or failed, at some of their recommendations. Without examples, all their suggestions seem unsubstantiated. A lengthy but decent read, with a nice underlying philosophy.

Humane and incisive
Because of the large number of issues and sometimes conflicting solutions proposed, this is a difficult book to classify. Key, however, is the authors' profound refusal to subordinate the common good of the community to the god of the free market. This does not mean the elimination of markets where they have proven effective and non-destructive. It does mean keeping their operation within strict limits, so that people can regain a sense of community and a sustainable environment. Much of the book is taken up with showing the limits of market theory and practice, and in that sense should be studied by all with an interest in America's secular religion. Proposed solutions are decidedly non-ideological and largely eclectic. Both the left and the right should find points of agreement. All in all, this is an invaluable guide to many of the planet's most pressing problems and should be required reading for college undergraduates.

Thought-Provoking in Every Way
To dismiss this book as leftist ranting or environmental hysteria is simply wrong -- and I would bet that the reviewers offering these opinions did not read the whole book. This book offers a stunning combination of ecological economics and philospohical critique. It is this dual focus that helps it avoid the dryness of most economics books and the abstractness of most environmental treatises. At bottom, Daly and Cobb are pushing for more human and manageable SCALE: meaningful work in more localized economies. Only by creating these smaller units, where entire processes can be grasped and influenced, can people change the way they think and live. The book crescendos with a discussion of the human prospect itself -- whether or not our species is on an inherently self-destructive trajectory, thanks to our very powers of ingenuity and adaptabilty. This is a book that should produce a profound change in the reader; but only if it is read slowly, carefully, and thoughtfully.

Excellent critique Global-Capitalism -- good/bad solutions.
Agrarian Localist that I am, with roots in the cultural and political Right -- Daly was refreshing and often challenging from the 'New and Improved Left. He brilliantly and repeatedly shows the 'fallacy of misplaced concreteness'-- that is the dubious use of logical abstractions which supposedly lead to good conclusions. NOT! In logic, it is similar to 'the undistributed middle'-- or in laymen's terms -- there is yet far too much we simply don't know to conclude 'this'. Those pegging him a traditional UN Internationalists look like blind Libertarians who are simply dead wrong, and didn't read carefully. Daly is a modest Decentralists/Federalists' in calling for a 'return to the Local'. His call is for a federalism with far more attention to Local and Regional markets and development than we've had in this country since Lincoln. Yet Daly still uncomfortablly allows for some heiarchialism at national and international levels. Suprisingly, he uncritically buys all the status-quo environmental hysteria as 'Fact', indeed 'wild facts' he calls them. Thus, you have a mixd book -- full of brilliant and insightful critique -- and sullied by a good bit of carried-over authoritarian leftism. David E. Rockett ... Read more

Reviews (12)

Foreign Aid Corruption
In his book Lords of Poverty, Mr. Graham Hancock offers a very detailed account of the so-called Aid Industry. Unfortunately, the case study he presents is completely out of date (the 80's). This is the year 2000 and, hence, fresh figures, new dates and new names are needed.

The other flaw of his book is that, like every one else who has written on the subject of foreign aid, Mr. Hancock bases his account on his experiences in India and in some other regions of Africa. But what about the rest of the world. What we need is a much broader and deeper look of the foreign aid industry as the self perpetuating industry that it actually is, particularly with regard to the secret internal modus operandi of bureaucratic institutions such as the UN, World Bank, OAS, USIAD, etc, etc. In other words, we want the true inside story. It is the only way to really know what's going on.

Few people are aware that these organizations are ran mainly by "political rejects" who after having been thrown out from their own countries accused of becoming political trouble makers, or misfits, they find "haven" in those international aid organizations. Sort of like "dying and going to haven".

The fact that the head of the World Bank or the Secretary General of the UN might have been a head of state before he was rewarded with the current top job does not mean in any way that he is fit for the job that he is holding now. Those top positions and other of lesser importance, are usually regarded as political favors. The same holds true of those professionals who are looking for a place to land a good paying job that requires little or no work at all. To keep a good paying job with private industry, professionals would be required to work very hard, something that many of them don't have to do at the UN or any other international aid organization. These are the "technicians", the "experts" who come to poor third world countries to "straighten things out", as they say, when in fact all they are doing is enjoying officially sponsored vacations with all their expenses paid for with taxpayers money from the industrialized nations. That, I believe, is one of the reasons for the high rate of failure of such organizations: bureaucratic incompetence. It is for this reason that I also believe that some form of tight government control and public scrutiny should be implemented in order to make foreign aid agencies fully accountable for every dime they spend. Otherwise they will continue to function as international clubs of free-loaders.

I guarantee that any American taxpayer would be infuriated to know that the great majority of the employees of these international aid organizations headquartered in the U.S.A. do not, I repeat, do not pay any form of local and/or federal income tax because these organizations (UN, OAS, PAHO, IDB, etc.) are not required by law to report salaries paid to their employees. Therefore, the IRS does not have any way to know who's earning what and who owes what. But even those employees who, by some special circumstance, must file a tax return will do so with the understanding that the organization will not only compute their own taxes, but will also issue them a check for taxes owed on their income. Oh yes, no matter how you cut it, "working" in any of those international organizations is like dying and going to haven; or almost like wining the lottery.

V.P.Reyna Guatemala, Guatemala Mepolly@xela.net.gt

All your suspicions will be confirmed
This book is getting a little dated now, but remains a classic critique of the international aid business. Using colourful anecdotes and solid stats, Graham Hancock convincingly demonstrates how the IMF, World Bank and other international aid/development agencies effectively worsen Third World poverty. What they do is transfer wealth from the poor to the rich in donor and recipient countries alike. In the 1st world, taxes of mainly not-particularly-rich people finance these international organizations, whose administrators often lead lives of incredible luxury. In the 3rd world, money from the organizations helps to sustain corrupt regimes and swell the bank accounts of their leaders, while in many cases the money eventually has to be repaid with interest by taxes which again tend to come mainly from the poor, thereby creating an extra burden for the people it was supposed in theory to help. Meanwhile the projects financed by the money are often wholly irrelevant to the needs of the recipient country, e.g. expressways in countries where only a rich minority own cars, and often the infrastructure is built by companies from the donor country (tied aid) and proceeds to fall to pieces long before the debt incurred has been paid off. This book caused a fair bit of controversy when first published, but was soon forgotten. It's been business as usual for the IMF etc ever since. Meanwhile Graham Hancock got so depressed with uncovering corruption in big aid agencies that he abandoned the field entirely and switched to writing all those speculative books about lost cities of the gods etc. -- yep, it's the very same Graham Hancock in case you're wondering.

One part fact, one part rant
The first half of this short book is a relatively informative overview of the responsibilities and functions of major aid and development agencies, although the statistics are now well out of date. That said, little of any of this is primary research and the author relies fairly selectively on sensationalistic quotes and facts that tell the part of the story he wants to tell.

The second half of the book, however, is little more than a rant during which the author mocks and insults aid and development workers for about 100 pages. The vitriolic quality of writing makes one wonder if an aid worker dumped him at some point. You could skip this whole part of the book and be better off for it.

Maybe I take it personally since I'm an aid worker, but I can tell you with authority that Mr. Hancock really doesn't have any idea what he's writing about - he mischaracterizes the lives and personalities of most aid workers and oversimplifies the challenges and complexity of the work. He's angry and bitter about something and I don't think it's corruption or incompetence.

And just for the record: Reviewer Viola P. Reyna doesn't have command of the facts either. Most foreign aid workers are required to pay taxes in their home countries while living abroad. Americans living abroad for more than 330 days a year, whether they are aid workers or oil drillers or whatever, are not required to pay taxes unless they make over $80,000. Everyone is still, however, required to report their incomes and file their tax returns. So contrary to what Viola says, the US Government knows exactly what everyone is making.

A spirited rant
This book has the flavour of someone who has stewed over the question of foriegn aid for some time and then suddenly this book has been an outpouring of every bit of frustration ever felt by the author. From looking at his other books it appears that he is a person with a thorough background in the industry.

The book is one of the most daming that I have read. Although short the book marshals its facts and explains every argument with a clarity that is breathtaking.

The arguments are that the organisations which are involved in providing aid are incompetent. There are a number of reasons for the incompetance but all orginsations which deal with aid are incompetant and corrupt.

At the head of the list is the world bank. The world bank is willing to make grants of aid conditional on changes to monetary policy and dismanteling of anti competative market systems but it never wants to make aid conditional on introducing human rights or democracy. As a result changes to make the market more competative almost always damage the poor by for example the removal of food subsidies. The benifits of World Bank loans almost always flow to the middle class or urban dwellers. The Indian Economist Sen has shown that democracies do not have famines. If the world bank was to make democracy the condition of aid packages it would be more likely to reduce famines in these countries. In fact govermental corruption or incompetance is the real reason for the sorts of problems which require aid in the first place.

The world bank is addicted to large capital intensive projects. Most of these turn out to be white elephants and have unsustainable maintence costs. Again the benifits of electification or transport benifits mainly the urban centres.

Those who are responsible for aid projects are overpaid, come from foriegn countries and lack language skills to properly evlaute projects. The result is that huge amounts of aid are used to pay for incompetant staff at aid bodies.

The author says that the proof of the pudding is that those countries which have had huge amounts of aid have simply gotten poorer. Aid projects have generally failed. The world would be a better place without any aid at all.

Whilst this is an extreme position the book is a valuable addition to debate in the area.

Still very relevant
It's too bad that updated editions of "Lords of Poverty" were never published; indeed, even this edition was out of print for several years before this reprint edition. Hancock's writing style here may be a sustained rant, but it nevertheless provides a great deal of useful information and tears down many of the misconceptions most Americans or Europeans may have about the international aid industry. Particularly interesting is his criticism of the various UN agencies and, especially, the World Bank and the IMF - whose projects all too often do more harm than good (if they do any good at all). Perhaps the most disturbing aspect exposed in this book is still quite valid today: that taxpayers in the big donor countries like the U.S., Germany, Japan, the U.K. etc. are footing the bill for many disastrous projects worldwide that make the lives of impoverished populations even worse and often destroy in the environment in the process. "Lords of Poverty" may be dated, but it's still well worth the read. ... Read more

Book Description

In the seven years since the publication of the first edition of Wall Street, America's financial industry has undergone a series of wrenching events that have dramatically changed the nation's economic landscape. The bull market of the 1990's came to a close, ushering in the end of the dot com boom, a record number of mergers occurred, and accounting scandals in companies like Enron and WorldCom shook the financial industry to its core. In this wide-ranging volume, financial historian Charles Geisst provides the first history of Wall Street, explaining how a small, concentrated pocket of lower Manhattan came to have such enormous influence in national and world affairs. In this updated edition, Geisst sums up the recent turbulence that has threatened America's financial industry. He shows how in 1997 thirty NASDAQ market makers paid a record $1.3 billion fine for price irregularities in stocks. He makes sense of the closing of the bull market, and explains a major change in the accounting rules for mergers that caused monumental losses for companies like AOL Time Warner. And he recounts how in the aftermath of the speculative fever that swept Wall Street in the 1990's, the scandals at Enron, Tyco, Worldcom, and Conseco represent a last gasp of mergermania and a fallout from a bubble-like market. Wall Street is at once the story of the street itself, from the days when the wall was merely a defensive barricade built by Peter Stuyvesant, to the modern billion-dollar computer-driven colossus of today. In a broader sense it is an engaging economic history of the United States, the role Wall Street played in making America the most powerful economy in the world, and the many challenges to that role it has faced in recent years. ... Read more

Book Description

Is economic development conducive to political democracy? Does democracy foster or hinder material welfare?These two questions are examined by looking at the experiences of 135 countries between 1950 and 1990. Descriptive information, statistical analyses, and historical narratives are interwoven to gain an understanding of the dynamic of political regimes and their impact on economic development. The often surprising findings dispel any notion of a tradeoff between democracy and development.Economic development does not generate democracies, but democracies are much more likely to survive in wealthy societies. ... Read more

Reviews (3)

Interesting Work
I had a love/hate relationship with this book. First, and this is purely a stylistic point, I believe it could have been far better edited. It was an avalanche of statistics, statistical analyses, and presented results without a lot of discussion of why relationships emerged. Their first goal -- showing development does not "cause" democratization is, I believe, a revamp of earlier published work. It is, nonetheless, an important finding that is worth repeating.

More interesting is the relationship between dictatorships and demography, but, again, aside from a little theorizing and a few statistical tests I believe the authors do little to shed much light on why different regimes affect demography differently. They begin to flesh out an argument the crux of which revolves around the ability of democratic polities to "commit" to providing social welfare over the long run, but this seems to run counter to their initial dismissal earlier in the book of the Neo-Institutional economics claim put forth by Douglass North, among others, as to the importance of institutions in "binding the hands of the sovereign."

Finally, their results do show that democracies tend to survive in wealthy states, in essence becoming "unkillable" after a certain level of wealth is reached. They do little to really explain why this is, but the result gives credence to Lipset's thesis that devolpment, at the very least, helps sustain democracies.

Overall I liked to book and would reccommend it as an assigned book in a comparative politics/political economy class.

Monumental Work!!!
Too many conjectures and too many theories have been addressed concerning the relationship between polities and material well-being in the world. But they have been raised without a proper test of them, without empirics. This book completely cleans all kinds of intellectual garbages, clarifies the existing arguments, and above all provides a series of the sohpisticated tests. Adam Przeworski and his comrades did a marvelous job.

A Major Book With Only a Minor Contribution
This will clearly be a major book within political science and political economy. Unfortunately, the book's prominence will be due more to the preeminence of the lead author, Adam Przeworski, than to the scholarly contribution of the work. The bulk of the book is a series of statistical analyses that probe the effects of regime type (democracy or dictatorship) on a series of dependent variables. While the book is competent and this is an interesting topic, it is also a topic which has been studied in depth in the existing literature. In fact, dozens of journal articles over the last five years address the questions that drive this book, and many of those articles make use of better data and are methodologically more sophisticated than "Democracy and Development." If this book has a genuine professional contribution to make, it will probably consist in drawing more attention to other people's better, more innovative work on the same subjects. ... Read more

Book Description

Book Description

Research on economic growth has exploded in the past decade. Hundreds of empirical studies on economic growth across countries have highlighted the correlation between growth and a variety of variables. Determinants of Economic Growth, based on Robert Barro's Lionel Robbins Memorial Lectures, delivered at the London School of Economics in February 1996, summarizes this important literature.

The book contains three essays. The first is a survey of the research on the determinants of long-run growth through the estimation of panels of cross-country data. The second essay details the interplay between growth and political freedom or democracy and finds some evidence of a nonlinear relationship. At low levels of political rights, an expansion of rights stimulates growth; however, once a moderate level of democracy has been obtained, a further expansion of rights reduces growth. The final essay looks at the connection between inflation and economic growth. Its basic finding is that higher inflation goes along with a lower rate of economic growth. ... Read more

Reviews (2)

For advanced students
The person who buys this book must be really acquainted with economics (senior or master). It involves, as the title states, the determinants of growth and inflation, along with political matters. I really liked this book because it gathers econometric models to support the essays that consists in many political variables just as democracy and civil rights. Barro, as a Harvard professor, has a well-known academic life. So I would suggest for every macroeconomic student to buy this book, it really helps for courses just as Macroecon or Development Economics.

A careful study.
This book is essentially a report on a series of analyses of the determinants of growth, democracy, civil liberties, and inflation. As a statistical analysis with interpretation, it is excellent. If you want to know what factors really affect these variables, you will find answers here. However, the utility for modelers is limited, because the author inexplicably omits to report the extimated constant terms in any of his regressions. One hopes that succeeding publications will provide more help to those who are trying to construct dynamic models of economic growth. ... Read more

Book Description

Twenty-one sets of twenty-one ideas, activities and tips drawn from decades of international practical experience

Making participation real requires workshops, training and learning that are themselves participatory. This sourcebook presents the results of the author's vast experience in the form of twenty-one sets of ideas, activities and tips, both serious and fun, for topics such as getting started, seating, forming groups, managing large numbers, analysis, feedback, evaluation and ending.

From the Preface: "This is for all who try to help others learn and change... There is something here for participatory teachers and trainers; for organizers, moderators and facilitators who want their conferences and workshops to be interactive; for staff in training institutes who want to enliven their courses; for faculty and teachers in universities, colleges and schools who would like to enable students to do more of their own analysis; and for those engaged in management training who want to widen their repertoire." ... Read more

Reviews (1)

Single best volume
I have taught facilitation for 20 years and maintain an extended bibliography of available books. If someone said they can buy only one book as a resource in facilitating, I would recommend this one. It is a remarkable collection of exercises, tools, strategies, and tips. ... Read more

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Professor David S. Landes takes a historic approach to the analysis of the distribution of wealth in this landmark study of world economics. Landes argues that the key to today's disparity between the rich and poor nations of the world stems directly from the industrial revolution, in which some countries made the leap to industrialization and became fabulously rich, while other countries failed to adapt and remained poor. Why some countries were able to industrialize and others weren't has been the subject of much heated debate over the decades; climate, natural resources, and geography have all been put forward as explanations--and are all brushed aside by Landes in favor of his own controversial theory: that the ability to effect an industrial revolution is dependent on certain cultural traits, without which industrialization is impossible to sustain. Landes contrasts the characteristics of successfully industrialized nations--work, thrift, honesty, patience, and tenacity--with those of nonindustrial countries, arguing that until these values are internalized by all nations, the gulf between the rich and poor will continue to grow. ... Read more

Reviews (127)

academic overspecialization at its worst
I am an economics major at the University of Chicago. I started this book on a reccomendation from an economist friend of mine, and while I was not impressed by his language in the first chapter, I can honestly say that I still seriously expected to find some penetrating economic analysis. What I found was a really bad case of somebody trying to do something he obviously wasn't trained to do. His main point is that culture, or more precisely, values, matter to economic development. This has long been of interest to anthropologists and sociologists and they have done a lot of good, sophisticated writing on the subject, which David Landes obviously hasn't read. The really sad thing about this is that, in addition to being much more subtle and clever, they make a lot of the same points (but without the vulgarity and racism). See, for example, Benedict Anderson's Imagined_Communities, which discusses the rise and role of nationalism.

He supports his arguments with a crude analysis of European and Japanese cultural and industrial developments. But as he says, the questions of why the West industrialized and why the rest of the world didn't are really one and the same. And he singularly fails to give an effective analysis of the other cultures. Here's an example: he says that the armies "Oriental despots" fought poorly because they had no reason to be loyal to a despotic government. He cites as evidence (if it can even be called that) just one case where British troops fought against an Indian ruler, whose troops mostly ran away. He never asks whether they did this in battles against other Indian rulers who didn't have the prestige or technical sophistication of the British. He even goes so far as to say that these "Oriental despotisms," which he does not differentiate, appointed officials by fiat and not by merit. I shouldn't need to mention the Chinese examination system. Even he does't think knowledge of Confucian classics counts as merit, he should have known that during the Tang dynasty the officials were selected by a practical exam rather than Confucian classics. But that's exactly the problem--he's trying to write a history of the world that compares European and non-European cultures starting from the assumption that since Europe invented almost everything, only Europe needs to be seriously researched (if you don't believe me, check the bibliography). And he finds (surprise) that only Europe has made significant contributions to the industrial revolution and that this was contributed to by its culture (was anything any society ever did not influenced by the culture?). The reasoning is highly circular. Anybody that disagrees with him is, he says, just writing feel-good history with no regard to the facts (the irony here is just unbearable). I would say that he should leave history to the historians and sociology to the sociologists, but most of these don't know economics well enough to write an economic history. What we really need is for more economists to throw away their ridiculous pretension that economics is the only "scientific" social science and start taking the other social sciences seriously. This one in particular clearly has a lot to learn from them.

Insightful analysis of Earth history
The beauty of this book is that it makes you realize that that the forces which shaped the history of the world are taking place right now--you can apply Landes' theories to today's headlines. Landes takes the ET-looking-at-Earth approach--and it is convincing. An alien intelligence would see that a country called Great Britain started industrializing in the l800s and the rest of the world is catching up to this very day (note China). The other major theme is that freedom of thought and democracy is the prime motivator of invention and industry, and that state-controlled societies remain static. I live in Japan which is a combination of the two--and hence explains to a large degree its rapid development after World War 2 as well as its current economic malaise. The most controversial factor of Landes' equation is the variable of culture and values. The undisputable historical fact, however, is that some countries have been more aware of "being behind the times" than others. Lack of a national consciousness (Landes' phrase: "they knew who they were") with a corresponding awareness of the rest of the world keeps societies in the past. Only knowledge and the desire for change sets people moving. That is why the Internet is such as boon for the free market--and why countries such as Japan are striving to catch up with the world's leader in this current hot technolgy--the U.S. Ever since the Meiji Restoration, the Japanese have been a trend-conscious people; it's in their culture. And you can bet your Palm Pilots that when China adopts more liberal reforms (perhaps even the disbanding of the Communist State itself), it will be a world titan by the middle of the 21st century.

Excellent Book
Very good book. Logical, factual and thorough research. The conclusions are not tinted by political opinions. Gives an honest, even maybe harsh, reasoning behind the current state of economic developments throughout the world.

Great overview of world history from the Economic viewpoint
Whats not to like about this book? If you have any interest in history, sociology, or economics it will be right up your alley. As a Senior finishing up my Econ degree I found the background information in the book to be very illuminating. Despite high level of information contained inside it is written clearly and in a manner that the layperson may understand. This book will rest on my shelf amidst my favorites.

Simply Idiotic
Though I enjoyed Landes' humour sometimes, this book is by no means an honest endeavour to answer the question posed by the title. The work is mostly rhetoric. Though I agree with some of his conclusions but his arguments are almost always fellacious. This is my first history reading and I have almost no background on the subject. Still after few chapters it became clear that the book does not meet the criteria of an academic writing. It is a shame for Harvard that Landes carries its credentials! ... Read more

Amazon.com

The Rule of Three, by Jagdish Sheth and Rajendra Sisodia, offers an innovative take on corporate development that could help leaders put their own operations into a new context that improves competitive strategies and boosts market performance. Sheth and Sisodia, consultants and marketing professors, base it on their contention that just three major players ultimately emerge in all markets--such as ExxonMobil, Texaco, and Chevron in petroleum, and Gerber, Beech-Nut, and Heinz in baby foods. These giant "full-line generalists" are eventually surrounded by smaller "specialists" who successfully concentrate on niche products (such as high-end audio gear) or niche markets (like fashions for professional women), along with midsized "ditch-dwellers" who struggle to reach an audience in between (like second-tier airlines that compete with goliaths on price and regionals on service). The authors examine this pattern of market evolution and the "radical disruption" that can occur when technology or regulation changes or a new entry "succeeds in altering the rules" (as Starbucks did by sneaking up on coffee's Big Three). Appendices present helpful examples of the way this has shaken out in various industries.--Howard Rothman ... Read more

Reviews (3)

Incredible Book for Making Strategic Decisions
This book increases my ability to weigh my competitors in my industry and give me better tools to position my company against my competitors... Read it you will find it interesting or your company in a big ditch...

The best tool to predict a company's future in this economy.
The future looks very uncertain to all of us - no matter what company we are in: big or small, none of us has been spared from this mass anxiety that started in 2001. The old saying 'what goes up must come down' became true after 10 years of the best boom time in America. But will 'things have to eventually turn around' come true? Of course it will, but it would seem that in the process a lot of companies will not survive (as has already been witnessed in the last 2 years). So rather than worrying about when things will turn around, it may be more prudent to focus on figuring out which companies will survive these extremely difficult and trying times.

The book is very deep and I am still in the process of digesting all the material. But I was so moved by the very powerful and sound theory presented in the book that I wanted to share my views immediately and hence this review. So bear with me as the terms I use aren't exactly the ones used in the book. I am using them to help me communicate these ideas faster and more effectively.

This book offers some incredible insight into the fundamental way in which businesses and consumer markets interact. And in the process it provides vital clues that could be used to assess what companies will survive. There are only 8 chapters in this book and a conclusion along with 3 appendices. The first chapter gives some preliminary information on the mechanisms by which consumer markets in free market economies force efficiency increases in the businesses involved. The second chapter addresses the fundamental Rule of Three and why eventually after the dust settles, there can only be three left in an industry - no more and no less.

Chapter 3 broadly categorizes all companies into either Specialists or Generalists and futher defines them into five groups - Full-line Generalists, Portfolio Generalists, Product Specialists, Market Specialists, and Super Nichers. This chapter is especially important as it describes in great detail several of the primary chateristics of both Generalists and Specialists. This is important because it later ties into the successful strategies that must be adopted in order to survive difficult economic times. Chapter 4 shows how companies can get in serious trouble and eventually not survive the difficult times. The authors call this 'The Ditch'.

I wasn't too interested in Chapter 5 which addresses Globalization and the Rule of Three. I still forced myself to read this chapter as I didn't want to miss anything that is used in later chapters. But Chapter 6 and 7 are the ones that everyone has to read! This is where all the secrets lie - the successful strategies one must follow in order to survive this all powerful Rule of Three. Chapter 6 is relevant to the Generalist companies and Chapter 7 is for Specialist companies.

Finally, Chapter 8 introduces the subject of market disruptions - simply speaking how some discontinuous changes in the marketplace (new technologies that can do the same things faster, better, and cheaper - like the Internet) can put someone at immediate risk of failing due to the enormous investment they may already have in terms of time and money in the old technologies.

The authors' conclusion follows these 8 chapters. This is again extremely important as it contains 22 general rules (just a few lines each) that you can't ignore if you are trying to predict where your company future lies. The appendices contain some very good research. For example - the three survivors in all the major industries across the world. As can be expected of a book written by two Ph.D's, there is a very complete reference section at the end of the book where you can check and verify the source data.

There are so many aspects to making a business successful and there are so many books out there on the subject that it is easy to overlook such a critical book as this one. I was fortunate enough to run into this book as a result of my frenzied After Christmas bargain shopping at Amazon where I RANDOMLY selected 30-40 books that were all priced at just a few dollars thinking I can't go wrong even if I find one good book out of three (since the bargain price was a third of the original price). After that it sat on my bookshelf till I recently decided to skim through a few pages of the book. That's when it struck me that this is a landmark book and absolutely essential in predicting the future. I immediately put this book at the top of my reading list and have been devouring it ever since. I consider myself very lucky to find this treasure map of a book. Well, it would be a treasure map only if you are trying to figure out which company is going to survive. Otherwise, you can conveniently skip this book.

Strategic Hypotheses from an Industry Structure Perspective
This book deserves more than five stars.

The Rule of Three is well-documented, easy to read and understand, is filled with practical advice that can be used for many strategic purposes. Regardless of your industry, the size of your business, and your ambitions, you will be well rewarded by the time you spend with this book. It will provide a useful perspective of the sort that you probably have gained from books like The Innovator's Dilemma, The Discipline of Market Leaders, and The New Market Leaders.

For a quick overview of the book, I suggest you begin by reading the clear summary of key points on pages 200-202.

The idea that most industries will eventually be dominated by three broad-scale suppliers with a few profitable specialists was one I first heard from Bruce Henderson, CEO of The Boston Consulting Group, about 1972. My quick look around at the time showed that this pattern did frequently occur (domestic autos, breakfast cereal, and beer came to mind then). This industry structure is more often present now than it was then due to the massive consolidations through acquisitions and business failures that have happened in the United States and world wide. Since learning about the empirical observation, I have usually seen the point applied to the questions of how a market leader could most effectively put pressure on the third largest company in the industry and vice versa. The Rule of Three goes well beyond that scope.

As a result, I was delighted to see that the authors of this fine book have provided extensive empirical documentation of their observations by listing many different industries where this structure occurred, case examples from dozens of old and new industries, and definitions of what can trigger this development. Of particular value to readers will be the detailed descriptions of the strategies that are most likely to succeed and fail, and the most frequent causes of those outcomes.

The detailed observations were usually spot on. I only detected a few places where I disagreed with points that were made. For example, EMC was listed in an appendix as being in the computer peripheral industry along with companies that mostly make PC peripherals. I see EMC as mainly competing instead with the likes of IBM, Hewlett-Packard, Fujitsu, Dell and Storage Networks. The authors also argue that the large general competitors usually enjoy a stock-price multiple over the specialist, niche players who have high returns. I would argue that it is usually just the opposite.

I thought that the problem of the #4, #5, #6 and so forth general suppliers was well described as falling into "the ditch" where the lowest returns on assets are earned. These companies lack the benefits of being a specialist and the scale of being a leader. Often, they succumb. If they can merge to become or join a top company, then the situation may change.

I was pleased to see that the authors described how a company may "change the rules" citing how Starbucks has made progress against the traditional coffee suppliers (Maxwell House, Folger's, and Nestle) by providing more accessible, better quality coffee at a higher price. The main opportunity to strengthen the book would have been to discuss this point with more examples and in more detail.

I also enjoyed the discussion of how specialist companies can be lured into chasing unprofitable market share, and falling by the wayside as a result.

Many authors with an empirical theory like this one would try to avoid talking about situations where one company has almost all the market share (such as occurs in personal computer software), or two companies get almost all the business (as in commercial airframe manufacturers), or even four (as often occurs in Europe and Japan). The authors actually strengthened their main point by examining those exceptions to their rule, and showing the influences that made these results occur.

As someone who is interested in uncontrollable forces that can influence industry structure, I thought that the focus here was good although much simpler than the detailed lists that Professor Michael Porter provides.

Having understood these points, I encourage you to think through how you could use these forces against the current market leaders. As the book suggests, the leaders' efficiencies and size make them vulnerable to nimble competitors offering new business models that serve customers and stakeholders in more ways than by lowering costs. Like the cataclysmic event that killed off the dinosaurs, new business models can doom the existing leaders to being poorly fit for the new environment.

Look for the ultimate competitive advantage!

... Read more

Book Description

There has been a radical series of transformations in the economic, political, social, and cultural life of Latin America. This text offers a holistic approach to understanding these changes, relating them to the wider processes of modernization and globalization. An international team of contributors from a range of disciplines contextualize their different fields within a broad political economy approach that provides a critical yet balanced analysis of the neoliberal policies provided by nearly every country in the region over the last two decades. They then argue that a new political economy is being constructed in Latin America; as national economies become radically restructured and transformed, democracy becomes the institutional norm and new social arrangements are being created within national societies. ... Read more

Reviews (2)

Excellent analysis of current issues in Latin America.
The is a most impressive analysis of economic, political, social and cultural life in Latin America. This excellent book offers an holistic approach to understanding these changes, relating them to the wider processes of modernization and globalization. An international group of scholars with impressive credentials and from a wide range of disciplines attempt to contextualize their different disciplinary foci within a broad political economic approach that provides a critical yet balanced view and detailed analysis of the neoliberal policies pursued by almost all countries in the region. They contend that a new political economy is being contructed in Latin America, as national economies become radically reconstructed and transformed, democracy becomes the instituional norm, and new social arrangements are being created. The constestation and alternatives to this new global modernity are also explored. In sum, this excellent book fulfills a much needed market niche for students, scholars, and the educated avid reader, who require an interdisciplinary and contemporary approach to Latin American development.

Roberto Cabello-Argandona

Complete, coherent political-economic analysis of Lat. Am.
Robert Gwynne and Cristobal Kay have put together an impressive and timely analysis of current trends in Latin American Development. The coverage of the countries of the region is excellent, as is that of their economic, political, and social trends...The range of issues raised and the quality of their documentation make this an excellent text for teaching and for research. Prof. Bryan Roberts, University of Texas at Austin ... Read more

Book Description

This new edition in the Sociology for a New Century Series is a wonderful supplement to any course in the undergraduate or beginning graduate curriculum that focuses on globalization. It is the first book published for undergraduates which presents a coherent explanation for how "globalization" took root in the public discourse and how "globalization" represents a shift away from "development" as a way to think about non-western societies. The book is full of case studies that help to make the intricacies of globalization concrete, meaningful, and clear to students.

Reviews (3)

Fabulous!
Usually professors who assign their own book for a class tend to be egotists.McMichael bucked that trend, however, by assigning his book which explained everything I ever needed or wanted to know about how the world works.The structure of the book makes it easy for anyone to understand and explains the state of the world today using historical context, which I found fascinating.However cheesy this may be, I honestly think the world would be a better place if more people read this book.

An excellent place to start
I completely agree with Mr. Jones' review.I can name countless books that offer strong arguments and good research.I can also recommend many books that are written with such clear and graceful style that they are a pleasure to read.McMichael is one of the few authors who can manage to combine these two aspects.I thank him for making it both easy and interesting for me to learn about this field of study.

Beyond modernization and underdevelopment
McMichael avoids the classic pitfall of falsely dichotomizing his development themes into modernization and/or underdevelopment theory.Nor does he leave us in the postmodern paralysis of absolute relativity.His straightforward and readable style reveals the entire postwar development project and its consequences, as well as the rise of the globalization project now under way.McMichael underscores his points with case studies and acutely observes the cultural phenomena and localized resistance of our times.Development and Social Change brings the sociology of development to the edge of modernity and the end of our century, in a vocabulary and style open to laypersons and sociologists alike. ... Read more

Book Description

"This book represents the culmination of a decade's work and succeeds. Forester, perhaps the finest planning theorist in the U.S., uses a variety of case studies to show how his ideas about deliberation shape planning practice. He speaks to the problems and worries of practitioners and students of planning in all types of public settings. This book will likely prove popular as a text in planning schools and appeal to professionals in a variety of allied disciplines." -- Charles J. Hoch, Professor, Urban Planning and Policy Program, University of Illinois at Chicago

Citizen participation in such complex issues as the quality of the environment, neighborhood housing, urban design, and economic development often brings with it suspicion of government, anger between stakeholders, and power plays by many--as well as appeals to rational argument. Deliberative planning practice in these contexts takes political vision and pragmatic skill. Working from the accounts of practitioners in urban and rural settings, North and South, John Forester shows how skillful deliberative practices can facilitate practical and timely participatory planning processes. In so doing, he provides a window onto the wider world of democratic governance, participation, and practical decisionmaking. Integrating interpretation and theoretical insight with diverse accounts of practice, Forester draws on political science, law, philosophy, literature, and planning to explore the challenges and possibilities of deliberative practice. ... Read more

Reviews (3)

Searching for theory behind praxis
Once I started reading this book I could not put it aside for long. Perhaps this is because so many of the insights that the author offers on what practioners of deliberative planning and rural development actually do resonates so much with the work I am involved with in Indonesia and the Philippines.

Unlike many other books I have read on planning and development, this book relates stories of planners' real world experiences. It appears that most of the skills practitioners use to deal with the diversity of interests in the face of conflict are rarely taught in universities or textbooks. One wonders where practitioners learn what they do best.

While a solid professional background is necessary, planners must also use improvisation to deal with deliberative processes which involve many stakeholders. What I enjoyed most about this book, unlike many others, is that it contrasts rationality with emotional sensitivity, calculation with improvisation, all of which are necessary for good practice.

The author aslo addresses an often overlooked aspect of deliberative processes in the design professions, that is, how to balance pragmatism in contexts where there has been a history of injustice towards particular groups.

The book makes use of extensive practical experiences of real-life planners and attempts to draw theory from that praxis. These experiences are just as fascinating to read as