Book Description

Civil war usually has devastating consequences – it is development in reverse. As civil wars have accumulated and persisted, they have generated or intensified a significant part of the global poverty problem that is the World Bank’s core mission to confront.

Part of the purpose of this Report is to alert the international community to the adverse consequences of civil war for development. These consequences are suffered mostly by civilians, often by children and by those in neighboring countries. Those who take the decisions to start or to sustain wars are often relatively immune to their adverse effects. The international community therefore has a legitimate role as an advocate for those who are victims. The second reason why the World Bank should focus on civil war is that development can be an effective instrument for conflict prevention. The risk of civil war is much higher in low-income countries than in middle-income countries. Civil war thus reflects not just a problem for development, but a failure of development.

The research yields three main findings. First, civil wars have highly adverse ripple effects that are obviously not taken into account by those who determine whether they start or end. Second, the risks of civil war differ massively according to a country’s characteristics, including its economic characteristics. As a result, there is a conflict trap, and civil war is becoming increasingly concentrated in relatively few developing countries. The third finding is that feasible international actions could substantially reduce the global incidence of civil war. ... Read more

Book Description

Praise for the first edition ". . . a valuable reference for anyone interested in Japan's economy. . . provides essential background information as to how Japan's bureaucracy functions, how its trade relationships have developed, and why some policies are as firmly entrenched as they are." -- Far Eastern Economic Review

The MIT Encyclopedia of the Japanese Economy was the first English-language encyclopedia to cover all major aspects of Japan's postwar economy. The second edition has been fully revised and expanded, and includes previously unpublished data as well as coverage of recent developments in the economy. The definitional entries concisely explain major economic concepts and include translations of Japanese economic terms and cross references to the longer topical essays. The 180 topical essays cover banks, financial systems, major industries, corporate groups, management practices, labor unions, international trade and investments, government economic policies, and more. They also include comprehensive statistics, American and Japanese views on economic relations between the two countries, and suggestions for further reading. A new index contains names of major companies. ... Read more

Reviews (1)

Invaluable reference source
As an international equity portfolio manager specializing in Japanese equities, this book is a very valuable reference source. The book describes many of the key institutions and their interlocking nature. Full of cross references, addresses & phone numbers (for institutions) and mini bibliographies for most major concepts, this book is a great hub for studying the Japanese economy. I look forward to the next edition. ... Read more

Book Description

A witty and accessible tour de force that is immersed in the latest economic thinking, Culture and Prosperity is an indispensable guide to the world around us and destined to become a classic text for understanding the politics of globalization.

Guided by the belief that a combination of lightly regulated capitalism and liberal democracy -- the American business model -- is not just appropriate for America at the dawn of the twenty-first century, but a universal path to freedom and prosperity, the United States is an unrivaled colossus seeking to remake the world in its own image.

After a decade of successive market revolutions around the world, beginning with the collapse of the Berlin Wall and continuing in countries as diverse as Argentina and New Zealand, the effectiveness of the market economy as a route to prosperity and growth is not in question, but a more sophisticated appreciation of the strengths and limits of markets is urgently required.

In this new and illuminating analysis of the nature and evolution of the market economy, John Kay attacks the oversimplified account of its operation, contained in the American business model and favored by politicians and business people. He even questions whether it offers an accurate description of the success of the American economy itself.

In an absorbing argument that rewards close reading, and rereading, Culture and Prosperity examines every assumption we have about economic life from a refreshingly new angle. Taking the reader from the shores of Lake Zurich to the streets of Mumbai, from the flower market of San Remo to the sales rooms at Christie's, John Kay reveals the connection between a nation's social, political, and cultural context and its economic performance.

Reviews (5)

A book for social democrats and europhiles
New Keynesians, Europhiles, and those who like to set up a straw-man model of the American economy and then have it will like this book a great deal. Mr. Kay has an elegant and confident style that inspires belief that his pronouncements are the way things are. He does not have much use for the Chicago school of economics, nor of the idea that small government and lower taxes can add vibrancy to an economy. He is a Social Democrat who sees little difference between Mao, Stalin, and the management at Ford Motor Company.

This idea is so strange as to seem laughable to me. Mao and Stalin brutalized entire peoples and mismanaged entire countries. Ford, an international company, is still a miniscule part of the American economy and any mismanagement it might engage in has much more limited effects. Employees who dislike working at Ford and consumers who become disenchanted with its products have other places to work and other products to buy. The citizens of the USSR and China had no such option.

Mr. Kay also says, strangely, that European productivity is higher than that in America but really doesn't explain the way the measurement is made nor the effect the recently higher Euro against the Dollar has played in that measurement. I am not declaring him wrong, I simply would like to have a more complete demonstration of his claim.

A most egregious mistake he makes, like many who dislike capitalism, is to equate greed with self-interest. He claims that many people do things that are not directly related to acquisition or more money or material goods and claims this to be a proof that people don't act as capitalism claims. Adam Smith and other explainers of the capitalist model and any of us who believe it in always talk about rational self-interest NOT naked greed, which is a form of irrationality. That people want to build concert halls or have parks or shelters for the indigent is not irrational nor against a person's self-interest. However, opponents of capitalism need to have greed as the straw man to knock down however silly the claim that it is a foundational principle of capitalism.

Does the book explain why some nations are rich but most remain poor as the subtitle promises? I think that Hernando Desoto's "The Mystery of Capital" is much more convincing. But I have my own beliefs, and while I am a fan of European history and culture, I think that Socialism has cost Europe a great deal. However, you may believe differently and if you do, you will likely enjoy this book more than I.

A description of how complex comparative economics is
There have been many arguments put forward as to why some nations seem forever destined to remain poor and others, primarily European in cultural heritage, are prosperous. Those arguments range from the extreme believers in absolutely free markets as the reason for wealth to the relentless and continuous exploitation of the poor as the reason for poverty. As is nearly always the case when there are two extremes, the truth is somewhere in the middle, with each nation having different reasons for their economic performance. However, there are some general reasons, and Kay cites them with examples.
The first requirement for prosperity is a government whose members are not concerned solely with increasing their personal wealth. Although there are many others that he could have used, Kay cites the example of Joseph Mobutu in the Congo (Zaire). In terms of natural resources, the nation is extremely wealthy, but under Mobutu the country, with the exception of his cronies, was completely bankrupted. Kay also places a lot of blame on Western institutions that supported the Mobutu regime, lending billions of dollars that have largely vanished with no physical evidence remaining. Organized mineral production in the country has largely ceased.
In general, the countries of sub-Saharan Africa all suffer from the problem of greed and weak, incompetent government. In an excellent quote, Tom Friedman states, "Come to Africa- it's a freshman Republican's paradise. Yes, sir, nobody in Liberia pays taxes. There's no gun control in Angola. There's no welfare as we know it in Burundi, and no big government to interfere in the market in Rwanda. But a lot of their people sure wish there were." These examples also demonstrate that free markets are not the answer. Some of the freest markets in the world are in these countries, where bandits rule by controlling mining and then sell their ill-gotten gains to the highest bidder. Government leaders also readily sell their decisions to the one willing to pay the most. It is very sad to note that in many of these countries, economic productivity is now lower than it was when they were still under colonial rule.
Stable governments with honest leaders are also not enough. Kay cites the example of Tanzanian President Julius Nyerere, one of the few honest leaders to emerge in sub-Saharan Africa. Nyerere ran a government largely free of corruption and tried to develop factories and a stable economic infrastructure. Under his rule, Tanzania was considered one country that could possibly rise from the muck that is the disaster of Africa. Unfortunately, despite all of the aid and advice from Westerners, the GDP of Tanzania was lower when Nyerere retired than it was when he took office. One giant factory designed to supply the entire country with shoes was a disaster and never operated at more than 5% of capacity before it was closed.
Kay also has a true sense of history, something often lacking in modern commentators on economics. He reminds us that the early industrial revolution in England was very hard on the social structure, people and the environment. Thousands were herded into slums to provide the labor pool, and left to fend for themselves when they were no longer needed. Children were forced to work very long hours at dangerous jobs that required someone of their size and dexterity. Westerners travel to sweatshops in third world countries and are strongly critical of the conditions they find. It is often forgotten that the conditions they find are much better than when Europe industrialized. The reality is that economic conditions eventually dramatically improve, it just takes some time.
In examining the conditions that lead to a country being prosperous, Kay concludes that the following conditions must hold:

* Stable, honest government.
* Laws that clearly define property rights and that are enforced in an even-handed way.
* A sense of community, where people do not blindly follow the path of personal self-interest.
* A spirit of innovation, where new ideas are constantly generated, tried in small experiments and then only executed in the large when they have passed the initial tests.

Kay also spends a great deal of time on the American stock market bubble fueled by the dot-com craze of the nineties. His statements and conclusions regarding the behavior of the American economy will not please those who praise it as the model of efficiency. He considers the descriptions of the American economy to be vastly oversimplified and even whether they accurately describe how it functions.
I enjoyed the book, especially the examples of economic successes and failures. So much so, I wished there had been more of them. A large section is spent on describing the fundamentals of markets, which I largely skimmed. One thing is very clear. In performing a comparison of the economic performance of countries, you realize how complex economic productivity is. Those who argue that all will be well if only free markets and democracy take hold are misguided and/or simple-minded. Societies and cultures are extremely complex and Kay demonstrates that even well intentioned actions can be detrimental.

Analysis of the intersection of culture and economic theory
The subtitle to this book describes the content succinctly - "Why Some Nations are Rich but Most Remain Poor". Author John Kay, a prominent British economist, postulates that one of the reasons is due to cultural factors. These cultural norms may both free and confine the society when it comes to prosperity. If international trade benefits both rich and poor countries then why do poor countries remain poor? In a brilliant exposition of economics he argues that it is not the free markets and constant search for materialistic acquisition that has made America prosperous but it is largely a factor of the various institutions we have in place. That is one reason why many countries have been unsuccessful in trying to emulate the American economic machine. If our success were based entirely on free markets then bringing them to other countries would allow them to prosper, but they often do not. If you were taught the traditional Adam Smith and Keynesian economic models you will be delighted with this additional perspective on the international market and why our models often don't work in other countries. By the same token the models that work in their cultures may not work at all in ours. A fascinating read and a fresh view of international economics, "Culture and Prosperity" is a highly recommended book.

Illuminating if a bit dense
John Kay is one of those writers with the rare knack for making economics understandable, and his skills are in full display in this book. Kay offers a sophisticated critique of the assumption that markets can, on their own, guarantee prosperity, and he shows how culture and institutions play a crucial role in driving economic growth. At the same time, he rejects facile attacks on capitalism, arguing convincingly that markets remain the most powerful engine of prosperity ever invented.

Kay's style is generally quite readable, but at times here -- more so than in his FT work -- he gets bogged down in theory and detail, and there are ponderous passages to wade through. On the whole, though, this is illuminating stuff, and anyone interested in understanding why some parts of the world are rich while others are poor should take a look.

Informative and entertaining
This excellent book is an illuminating introduction to the key economic issues of our time. I had never imagined that a book on economics could be interesting, yet this work has shown me not only that the label of 'the dismal science' is unjustified, but also that the workings of the market economy can be explained with wit and lucidity. Highly recommended. ... Read more

Book Description

With grand announcements, recycled promises, and much hype about debt relief by the leaders of the world's rich creditor countries, the International Monetary Fund (IMF), and the World Bank since 1999, many of us can be forgiven for believing that the debt crisis of the world's poor countries is over. Far from it.

Reviews (6)

Very sensible propositions
Noreena Hertz's basic principle is that the rights of creditors do not stand above fundamental human rights.
Debt repayments should not be imposed on governments when they could put in danger a minimum level of food, health care, clothing, water, education and housing for the entire population.

But as US president Calvin Coolidge said to the English delegation after WWI: 'We lent you money. Didn't we?'
The fact is that a lot of money was lent to corrupt and despotic regimes (Suharto, Marcos, Abacha, Ceaucescu, Mengistu, the South-African apartheid regime ...). More, after the end of the cold war, the US asked immediate debt repayment from States which were no longer strategically important.

Democratic governments should not be responsible for irresponsible lending by States or International Organizations.
She remarks that 60-70 % of all World bank projects under Mc Namara were failures and that only 10 % were ecologically and socially sound investments.

For her, debt should be forgiven if it was lent to undemocratic regimes, if the investments were against the interests of the majority of the population and when those who gave the money knew for what it was disbursed.
Ultimately, debt forgiveness will ot only favour the poor but also the rich countries, for it should not force nations to implement unsound policies and should improve security in the world.

By the way, she rightly lambastes massive arms investments (4 stealth bombers represent 1 schoolyear for 155 million children) and agricultural subsidies in the US and Europe (every cow receives 2,20 $ per day, or more that 1 billion human beings on our planet).

This book is a must read about a crucial problem for a massive part of the world population.

Honest, but .....
Just as her other great book , The Silent Takeover, this one is an honest effort, well documented and basically well intended.I think Ms. Hertz is brilliant and brave in her exposure of the facts. But...and there is always a but. I think that, her final proposals tend to be naive. Do not misunderstand me. Herproposals would be very good...if and only if, the people with the power to move ahead with the kind of actions that are needed were really interested in the fate of poor countries and in the people of their own countries ( as she very well explains). What they are interested in , I mean the elites everywhere,is in PROFITS and power..that is the reason and the blood of limitless capitalism. All other issues, including the welfare of the people or the environment are simply not considered.
Another point is that the role of the corrupt political elite in third world countries is in some way minimized. These guys are gangsters and must be treated as such. But instead they are very well treated by the political and corporative elites in the developed nations...and when they no longer represent PROFITS or geopolitical advantages they are simply discarded..Just remember Noriega or Saddam...The sad point is that the people of these countries can not discard these gangsters by their own means..Why?? Because of the support the corrupt Govts' receive from the rich countries..And they preach about moral and ethics....!!!Very good read....Worth your time.

The Plague
Back in the good old days of Western imperialism, Western powers used the same tried and true approach over and over again to extract wealth from and subdue non-Western peoples: invasion and/or colonization, and/or enslavement. This method was effective for a few hundred years, until subjugated populations after living in close quarters with their masters and learning their weaknesses, mounted various successful forms of resistance against them, e.g., the Algerians' violent resistance of the French, or Gandhi's non-violent resistance of the British.After the First World War, the Western powers (although with much backsliding, evident now in Iraq), began to withdraw their armies and close up their colonial shops.After the great bloodbath ofWWI the old cover stories -- "The White Man's Burden" - were so threadbare that the average Westerner could at last see imperialism for the nasty racket it was.

But wait. It turns out that was just the opening chapter of imperialism.There's a new chapter, or in business-speak a "new paradigm."Through the relatively abstract miracle of debt, rich countries since WWII have been able to reclaim their hegemony. The beauty part for the West has been that invasion through debt does not require much in the way of armies and colonists.In fact, what is really sweet about the new way of doing business is that invaders get to dictate terms to poor countries and don't usually have to back up their threats with armies.Instead there's the threat that global traders will lower poor nations' bond ratings, squeeze their economies, and, by extension, their people, until they see the light. Kind of like loan sharking when you think about it.

Loan sharks, contrary to the stories told in movies and books, generally like to keep their customers alive, because after all, they want to get their money back.In this new form of colonialism that's pretty much true, too.But still, people do get killed like they did during the traditional imperialist paradigm.Hertz shows in chilling detail, for instance, how a cholera epidemic swept through Peru because Alberto Fujimori, following the dictates of the IMF and World Bank, sent every nickel he could get his hands on to pay the interest on Peru's national debt so Peru would get back into the good graces of the financial markets.Healthcare services, welfare and other human services were curtailed or cut to pay the debt.When Peru and opened up its economy to the international market as per the IMF just as commodity prices dropped, unemployment and poverty rates went through the roof.Rural dwellers moved to the city seeking work.Work was not available; unsanitary conditions were.So desperate was their poverty that these Peruvians couldn't afford soap to wash their hands or kerosene to boil their water.And so cholera killed nearly 4,000 in less than a year.

Ms. Hertz provides much needed insight into the history of the debt threat.It began in the Cold War - the era of the "chessboard and the checkbook" in Thomas Friedman's phrase - when the U.S. and the Soviets were buying allies.Few restrictions applied to these loans.Dictators and oligarchs could spend it any way they wanted as long as they remained friends.Then in the 70s came the commercial U.S. banks, awash in petrodollars, making loans and betting that Uncle Sam would reach into the pockets of the U.S. taxpayer to bail them out if necessary.After the Soviet collapse ended the era of checkbook diplomacy, a newly invigorated IMF and World Bank began its recent career as a lender of last resort.Their one size fits all free market approach placed the same onerous restrictions on every nation they did business with.Debt enslaved nations meekly agreed to more enslavement lest these agencies tighten the screws further.

Ms. Hertz takes us through this history at a brisk pace and shows through examples that though the approach may have changed, the result is the same: poor countries in thrall to rich countries.She shows with gripping examples not only how the racket works but, more importantly, how these practices put the West in danger by promoting dangerous conditions around the world.For instance, disease can now board an airplane and land in any Western nation in a matter of hours.Poor people grown even poorer because of their nations cannot afford basic health services and so grow weaker, more susceptible.Their afflictions mutate and metastasize, and soon the entire body of humanity is at risk.Then, of course, there is the wholesale destruction of the environment as poor countries rip up their forests and sell their oil to the West so it may be burned or turned into toxins.And, of course, there are terrorists who find an ever expanding pool of ready recruits among the poor, a whole new class of young men who are boiling with resentment and rage.Tragically, in the narrow Western ethos of profit and loss, payment of debt must override all other concerns, because profit-making is the only goal, and capitalism the best of all possible alternatives.

With THE DEBT THREAT,Ms. Hertz's continues to demonstrate how the forces of global hypercapitalism that she explored in her first book ("The Silent Takeover") put the lives of everyone in physical, and at the very least, moral jeopardy.As in that book, her personal story gives one hope: an economist trained at Wharton (she was there to help "jump start" the Soviet economy in the early 90s and was witness first hand to the anti-human ethos of the free-market fabulists), she has switched her allegiance to the other side of the barricades.On a positive note, global protests and activism has managed to arrest some of the worst abuses of the World Bank and IMF, the commercial banks and ECAs.One can only hope that this cogently argued work will awaken more and more people to this latest, and perhaps even more deadly strain of imperialism.

Third world debt is a noose and a time bomb
Large amounts of government debt are a combination of a noose around the neck of many developing countries as well as a potential time bomb that could explode and threaten the developed countries as well. When I was growing up, I was repeatedly told how much the United States was giving to the poor countries of the world in foreign aid: money, equipment and food. I also heard many times about the anti-American stance that people in those countries had and how their lack of gratitude was disgraceful. Once I entered graduate school, I encountered people from other countries and we talked very frankly about how they perceived the United States. Those from Chile talked about how they watched the Chilean military round up their friends and take them to the soccer field, and how they later heard gunshots and never saw the people again. They also described how the same thing was happening in Argentina. At the time, those regimes were strongly backed by the U. S. as fellow anticommunist governments and received substantial amounts of American aid.
Students from other countries considered U. S. allies also talked about how the aid sent by the United States and other western countries was used to buy arms and equipment for the government forces and very little was ever distributed to the people. A large amount of the aid that the United States sent to third world countries before the collapse of the Soviet Union was used to buy weaponry or to bribe the leaders. The only two conditions imposed on them were that the weapons had to be purchased from the west and the country had to maintain a firm stance against communism. If the leaders receiving the money followed these guidelines, then they were free to skim whatever they felt they needed with no threat of the funds being cut off. Therefore, those nations are now overloaded with vast amounts of debt that they can never repay. One of the main themes of the book is that most of the debt of the third world countries should be forgiven. Since it was the price that the west paid to defeat communism, that is one strong argument in favor of the debt cancellation.
There is also the ugly history of the origin of much of the debt, namely greedy bankers who literally pushed the debt onto governments, giving out massive loans, knowing that the U. S. government would step in to avoid defaults in the worst cases. The International Monetary Fund (IMF) and the World Bank have forced debtor governments to institute policies that have made bad situations worse. In Rwanda, after the horror of the genocide was over, and there was not even so much as a stapler in the government buildings, the new government pleaded with the IMF to give them an emergency loan. The response was that they first needed to pay the three million in interest that they currently owed.
This theme of western rapaciousness in the face of increasing problems is the saddest aspect of the situation. In western societies, if a person goes bankrupt, the law allows them to keep some of their assets and at least tries to let them keep enough so that they can work, seek medical care and avoid starvation. That has not been the case with the IMF, which has forced nations to chose between making their interest payments and providing medical care and education for their citizens. In many nations, schools and hospitals have closed, as there is no longer any money to keep them open. The IMF had dictated that in order to get additional assistance, they must make their onerous payments. Such policies will only make the situation worse in the long term and is breeding a great deal of resentment. As Hertz points out, many of those nations are Muslim and this is the source of a great deal of anti-western hostility.
The worst two aspects of this situation are how rich some western people and institutions are getting from this. She describes how much money many of the lending institutions have made from these bad loans; few of them have truly lost significant money, even when a nation has defaulted. In my mind, the worst is what Hertz refers to as the debt vultures. These are people who spend their time in the legal system acquiring what few assets the debtor nations have in the west, stripping them of one of the few things they have of value. This is done in an attempt to pay off some of their debt. When she interviews one and asks about any feelings of remorse he may have because he is literally forcing thousands of people to an early death from starvation and disease, the vulture shows none. Such actions are considered criminal in the United States, but are routinely committed against the poor of the third world.
Hertz was in the former Soviet Union as it was collapsing, working with the international banking agencies and implementing their policies. Her opinion is that those policies were so destructive and shortsighted that they helped accelerate the collapse of the Russian economy. By trying to impose a western style capitalist economy, the functional parts of the old Soviet economy collapsed and this led to the rise of the underground and criminal economy.
This is a book that all people who study the relationships between the wealthy and poor nations should read. I will never forget my discussions with my classmates from Chile. While we all got along and they enjoyed being in the United States, there was bitterness in their voices when they talked about the events in their country. I realize that they will never forget that the United States encouraged and bankrolled the Chilean military and will always assign some blame to the United States. I also understand that they are only a few of the billions of people around the world who have similar reasons to hate the United States. It is time that western banking and political institutions recognize that it is in their best interests to implement a policy that will allow the debtor nations to recover from their indebtedness and begin to expand their infrastructure, educate their people, treat their sick and protect their natural resources.

Important and accessible history (and solutions)
A highly readable and accessible book on an important subject that most people believe is too difficult to understand. Hertz's history of third world debt, which takes us from the Bretton Woods agreements to the present day, is interspersed with stories from the author's work and observations, such as Bono's Jubilee activism and the author's own foray to Russia as a consultant for the World Bank and International Monetoary Fund. Every American should read this book -- particularly every American who finds the subject off-putting, doesn't think it really matters, or has wondered why all those people are protesting globalization. ... Read more

Reviews (22)

A Book to Reinvent Our Goals
Alan Weisman, a journalist hired by NPR to investigate solutions for environmental crises, spent years collecting information in a tiny, remote village at the eastern edge of the war-torn country of Colombia. That village was Gaviotas; this book is his result.

I read this book on a recommendation from Daniel Quinn, author of "The Story of B" and "Beyond Civilization." Quinn's entire philosophy rests on two ideas: living in a sustainable manner, and allowing the reader to come up with their own solutions for doing so. Gaviotas is a community where people did just that - through ingenuity, creativity, and hard work, the residents of this planned village created a place where water is pulled from the ground using pumps attached to children's see-saws, heat is provided by the sun, and electricity by the wind.

It's a progressive's dream come true, and an experiment that has succeeded in all possible ways. This book lays out the history of Gaviotas and its unique founder, Paolo Lugari, and places it within the context of the ongoing struggles in Colombia. In the wake of the World Trade Center attack, I decided to re-read Gaviotas to remind myself that not only is there hope for humanity as a whole, but hope that individuals will begin to take responsibility to begin freeing ourselves from the confining forces of our self-imposed prisons called "civilization," but still manage to retain the good things, too.

Every person on earth should read and re-read this book. If you haven't, buy it now or start hoofing it to the library.

Wonderful, Inspiring, Hopeful!
It was one of the best books I've ever read.
Go get it right now!

Gaviotas is an inspiring story of hope and success
Gaviotas the place is amazing! I can't believe how many good ideas were put into practice in one community! Incredible. All working/aspiring engineers, city planners, architects, etc. should having a working knowledge of the theories and practices Alan Weisman describes in this book.

Humans CAN be part of a non-destructive, even a positive, productive relationship with their surroundings. We CAN prosper without decimating everything with which we interact. Gaviotas is a good start--a good example for the rest of the world.

READ THE BOOK! BUY THE BOOK!

Hope Floats
I read this book after one of my Colombian friend recommended it. I could not put it down once I started reading it. It is not an easy reading and it requires you to think about how everybody in the western world takes life and facilities for granted which people in countries like Colombia strive hard to achieve.

This book is a fantastic tale of individuals who don't take no for an answer, who had a dream and they worked to achieve it and in the process created an outstanding example of the fact that 'life and nature can co-exist' because that is how they were before we made discoveries and inventions to conquer nature.

The book ends with a final message...If you have a dream then pursue it...you will meet people along the way who share your thinking...Hope floats.

A vision of humanities existence
Gaviotas

I can honestly say that this book completely changed the way I look human existence and relation to nature. Not only are the people of Gaviotas innovators, but visionaries aided by the studies past and present technologies. While reading this tale I was not only amazed by the resourcefulness of a few people, rather what the implications are to the human family as a whole. It seems that the people of Gaviotas have given themselves an education that no classroom can offer. In fact quite the contrary, they are scholars of the laws of nature.
One thing that I learned from this book is that it is easy to get stuck thinking within the parameters of modern society. It seems that every technology around us is based purely on the short term and hard resources. However it is the natural dynamics of Earth which run the resource base for the natural world, the wind, hot, cold and ultimately the sun. ... Read more

Book Description

The extraordinary growth enjoyed over the last several decades by many East Asian countries has amounted to nothing less than an economic miracle. Employing unorthodox policies, Hong Kong, Indonesia, Japan, Malaysia, the Republic of Korea, Singapore, Taiwan, and Thailand have all produced dramatic results with far-reaching improvements in human welfare and income distribution, leading many to ask whether a similar achievement can be duplicated elsewhere.

Written for the nonspecialist, this World Bank Policy Research Report--the first in an important new series--discusses in detail the means by which these high-performing Asian economies (HPAEs) realized their staggering success between 1965 and 1990. Examining how these countries stabilized their economies with sound development programs that led to fast growth, the book also shows how they shared the new prosperity by making income distribution more equitable.

The book makes clear how the HPAEs promoted rapid capital accumulation by making banks more reliable and encouraging high levels of domestic savings, while universal primary schooling and better primary and secondary education quickly increased their skilled labor forces. Also included are illustrative examples of productive agricultural programs, modest tax policies, the modification of price distortions, foreign technology and investment, and the cooperation of government and private enterprise.

Exposing to a broad audience the revolutionary process that transformed East Asia into the collection of economic juggernauts that it is today, this provocative World Bank report offers wisdom for today's up-and-coming markets, highlighting the policies that will make a difference as well as those that, despite their effectiveness in the Orient, could prove disastrous elsewhere. ... Read more

Reviews (1)

Good pre1997 crisis book, interesting contradictions
This book explores the causes for the extraordinary growth experienced by a few Asian countries in the pre-1997 crisis era. It describes, in great detail, the policies adopted in each country that are believed to have spurred such development; to its credit (being a World Bank book), it even suggests that some unorthodox policies may have been beneficial, even though it does suggest that these benefits are not there to be reaped again by a country trying to emulate them. One of the main arguments is also that income distribution improvements have been a common experience across these countries, which is a topic not often discussed in development economics.

There are, however, some obvious fallacies in this book. Having been written pre-1997 crisis, it does highlight the strenght of the banking system in many of these countries; these banking systems were later to be blamed for much of the pain in the 1997 crisis.

I find this book fascinating, not as a source of development ideas (those can be found elsewhere), but due to the historical context in which it was written (praising economies that were about to collapse). Of course, these economies are still better off that most developing countries, so I do not believe that they are mistaken in many points, but there are certain contradictions that arose with the crisis that make it worth reading this book to determine what is good advice and what is hot air. ... Read more

Reviews (5)

To Free Global Capitalism or Too Free?
The main benefit of this book is to provide an overview of international economic forms of cooperation in the 20th century. That overview is, however, flawed by simplifications that often distort rather than illuminate that historical view. The argument about what must be done next is incomplete and unsatisfying. This book is written for the reader who has some college-level training in economics, and is interested in the interaction between national politics and international economics.

The basic argument is that free markets create excesses which can only be eliminated by international intervention. Such interventions were frequent and reasonably effective during the period just prior to World War I and in the free world after World War II. Professor Gilpin argues that parochial American leadership since the end of the cold war has undermined the international political system for stabilizing the international economy. He calls for stronger American leadership in forging a better coalition with the European Union countries and Japan.

The central thesis of the book is sound in one area: Unrestrained capital flows can create distortions in a world in which everything else (businesses, people, and trade flows) are not nearly so unrestrained. The problem here is that these rapid capital flows out of a country primarily occur because of years of earlier abuses (as I describe in The Irresitible Growth Enterprise) such as speculative spending on infrastructure and investments that are not needed (as happened in several Southeast Asian countries prior to their currency crises in 1998).

Virtually every problem that Professor Gilpin warns against and wants to solve with international authority is really created by poor national economic policies. We would probably create sounder world economic growth if we focused on encouraging all nations to pursue sound lending, appropriate national borrowing, and constructive trade policies (our attention is usually focused on the last). Where governments are weak or corrupt, abuses will always develop and linger. My counterargument would be that strong democracies will almost always pursue reasonably sound economic policies. Solve that problem of governmental form and effectiveness of political process at the national level, and the world economy will be sound. If this counterargument is right, then we may need a second generation of informational efforts in favor of effective democracy, in the same way that one was needed during the cold war through Radio Free Europe and Voice of America.

At another level, much of what is described here as weaknesses and problems can be attributed to weak currencies. Again, informational efforts and research could help countries with weak currencies appreciate how to strenthen those currencies. Certainly, pegging to stronger currencies is proving to be effective in many cases. Pegging to a basket of stronger currencies might work even better. There could even be a role for pegging to sound economic policies to change expectations, as some South American countries have done.

Many of the worldwide risks today relate to the U.S. trade imbalance. In the same way that greater public awareness and an economic boom led to eliminating the U.S. budget deficits, the trade imbalance can be solved. Again, this is a national issue, not an international one. The weak savings rate in the U.S. can also be solved by changing the tax laws, again at a national level.

Basically, the argument I am making is that the markets are having problems because national politics are impinging too much on free markets. In that regard, the free market of ideas that is democracy can then adjust the national politics to achieve more healthy, free market results. The U.S. should lead the way by improving the savings rate and reducing the trade deficit. That would take many of the strains off of the world economy, and create the basis for another ten years of economic boom in the United States. Can our U.S. politicians get together and work on this after the November election? I certainly hope so.

Another area where Professor Gilpin is misfocused is in his concern about the growth of trading blocs like the EU and NAFTA. Actually, these blocs are creating freer markets within them and are an unavoidable precursor to creating the same level of freedom internationally with all countries. If there were three trading blocs in the world, they would simply merge into one at some point. That would be progress.

Complexity science tells us that having many countries pursuing their own ideas of economic prosperity will work better than having an internationally coordinated system. And the more intelligent, responsive, and focused those countries are, the better the whole system will work.

After you have finished reading this book, can you think of other places where we rely on precedent too much in our thinking rather than potential? If you find any of this happening in your own thinking, how can you learn to seek out better solutions rather than simply aping past solutions?

Good start for a basic understanding
This is a higly readable and extensive survey of the major IPE issues facing Americans and the rest of the world today. It successfully analyzes and challenges the economists' arguments about the primacy of economics, or even economic theory, over politics or political science. This is an excellent book for someone just beginning to educate themselves about the nature and state of the international economy. It's significantly broad, but also does an excellent job of explaining complex phenomena. However, I have a few caveats. First, it moves too quickly and soflty over the larger issues, specifically, whether globalization has been helpful or harmful to the world polity. I agree with a previous review that it overestimates the threat of EU protectionism. In fact, he overestimates the threat of protectionism entirely. The greatest threat to, or promise against, globalization is the rise of social protest movements across the globe, being channeled in new ways not seen before. Therefore, I would urge most people to read this book, but then pick up either a contrarian book, like Grieder's One World: Ready or Not, or Globalization by Sasskia Sassen. Avoid Friedman's The Lexus and the Olive Tree at all costs.

reasonable overview for graduate students
Prof. Gilpin has an excellent reputation in the field of IPE, International Political Economy, and I bought this book on that recommendation.

It gives a good overview of major developments in the globalization and globalization debate in the 90s, with political economy analysis and lots of references to economic analysis. I would recommend it for graduate students, but I must say i was a bit disappointed, not much new or inspirational there. I could read the book very quickly without ever really having to stop and think. Here i think it is only fair to reveal my own background, which is in international economic relations and history of EU integration. Some of his points on the nature and development of the European Union and the economics are frankly quite contestable, especially on the openness or closedness of the EU. The debate on 'Fortress Europe' is really out of date by now ever since it became clear that the Single European Act of 1987 and the '1992' project were not about closing the EU economy, quite the contrary. Do I detect an US bias here?

Yes, as prof. Gilpin points out, economists indeed disagree on many key issues. But you will find that strife also within IPE and political science and in any other social science discipline. So? It reflects the complexity of the issues rather than weakness of the discipline, i'd argue (but then, I would would I, as an economist...) A number of problems in globalization and the international financial system are presented as (relatively) new, but I'd argue that more often than not these problems were always there in history. Also, the point that regionalization threatens globalization is too strong as put there, and not necessarily correct and so clear-cut at all: many regional economic agreements were made in the course of the Uruguay Round trade negotiations at GATT/WTO out of frustration with the slow pace of negotiations and as a 'back-up' plan in case of UR failure. Hardly a threat to globalization which, in any case, throughout history never really progressed smoothly at all.

All that said, the book does do a solid job of pointing out some of the main issues and discussions and it will do well as a topical reference book.

Global Capitalism = American Corporate Imperialism
America began opening it's markets to the world in the 1970's. Since then, as the economy has grown steadily, most Americans have seen stagnant wages and the country has seen an increase in all types of inequality. The idea that the problems can be fixed presupposes a will to fix them. There is none. A palliative to this claptrap would be Chambers Johnson's book Blowback.

Don't fear Globalization, just fix it.
In The Challenge of Global Capitalism Robert Gilpin asserts: "The Achilles heel of the post-Cold War world order is the poor public understanding of economic liberalism, of the functioning of the market system, and of how capitalism creates wealth." That heel was showing in Seattle during the WTO meetings last November and again April 16-17 in Washington when in-your-face, "Globalize-This!" protestors tried to block IMF and World Bank meetings. The protestors would serve themselves and their causes well by reading Gilpin's book, which explains how the global economy has developed over the last half-century to reach the current stage of globalization, defined by Gilpin as "the increasing linkage of national economies through trade, financial flows, and foreign direct investment by multinational firms." Globalization holds great potential for good and presents serious challenges. The principal challenge, according to Gilpin, is to find ways to fortify the international financial system against future threats to global economic stability like those caused by the East Asian economic crisis and resulting global economic turmoil of the late 1990s. Although economists and Western governments are not in agreement on all the specific measures to adopt to prevent international financial crises in the age of globalization, most do expect the IMF to play a necessary, constructive role in behalf of international financial stability.

Gilpin educates about globalization, but not as an apologist. Rather, he is quick to point out globalization's faults and to call for corrective measures. Gilpin insists "the fears arising from globalization must be addressed and must not be rejected out of hand." In the United States this means "solutions must be devised for the problems of growing income inequality, the plight of low-skilled workers, and job insecurity. Reforms should include strengthened safety nets, greatly expanded job training, and a new social contract between capital and labor." ... Read more

Book Description

The proliferation of regional trade agreements is fundamentally altering the world trade landscape. The number of agreements in force surpasses 200 and has risen eight-fold in two decades. Today as much as 40 percent of global trade takes place among countries that have some form of reciprocal regional trade agreement.

Global Economic Prospects 2005: Trade, Regionalism, and Development addresses two questions:

** What are the characteristics of agreements that most promote—or hinder—development for member countries?
** Does the proliferation of agreements pose risks to the multilateral trading system, and if so, how can these risks be managed?

The report argues that agreements leading to open regionalism—that is, deeper integration of trade as a result of low external tariffs, increased services competition, and efforts to reduce cross-border and customs delays costs—are effective as part of a larger trade strategy to promote growth. Such regional agreements can complement a strategy that, on the one hand, includes autonomous liberalization to promote productivity gains and, on the other hand, leverages domestic reforms to enhance market access.

Although regional agreements can prove beneficial to member countries, they can have adverse effects on excluded countries. Lowering of border barriers around the world is crucial to minimizing these effects. The completion of the Doha Development Agenda by all countries in the World Trade Organization will reduce the risk of trade diversion associated with regional agreements and will decrease trade losses of countries excluded from agreements. ... Read more

Reviews (2)

Jim
It is unfortunate the turn that the field of Geography has made into the Marxist realm. While the academic side of geography takes comfort in the "feel good" ideas of this approach, it serves no purpose in advancing relevant work.

Do your self a favor - skip this book and go buy an old copy (prior to 1970) of almost any geography text. You will be much better served.

Brilliant revitalization of Geography
The influence of David Harvey on the academic discipline of geography cannot be overstated. With incredibly perseverance, Harvey called for greater ethical commitment right from the 1970s which saw the beginning of his career. This book charts the course of his views as they change from then till now. Before I tell you what the book is about, let me say a few words about the style: Harvey writes in incredibly moving and deceptively simple prose (though his ideas are as complicated as any of the Continental thinkers who dominate elite theory today). In a community of theorists who rival each other in being prolix and obscure, this is truly refreshing.

The first part of the book contains several essays, written between 1974 and 2000, all exploring two key themes:1) the discipline of geography and its relevance to today and 2) the nexus between certain forms of geographical knowledge and political power. Some essays are absolute gems. Specially noteworthy are the last two: City and Social Justice, and Cartographic Identities. In the first, Harvey theorizes the possibility of radical urban grassroots movements and the conditions for their 'success' (a bit problematic it must be admitted with its urbanist telos, specially for someone from the economic South like me) and in the second, he envisions a program for a synthetic study of (mostly mutually noncompatible) geographical knowledges constitued at different institutional sites (academic, the State apparatus, transnational orgs like IMF etc, multinational corporations, military, popular knowledge etc etc) as a task for geographers of the near future.

The second set of essays try with great skill (though it must be admitted that to someone not overly familiar with the historical-materialist tradition, they are hard to get through) to insert the thematics of space (especially important when one considers the growing unequality of development in today's world and the international (gendered) division of labor)in a historical-materialist tradition with the project of founding a historico-geographical materialist tradition.

In any case, WHATEVER your background read this book. You may not agree with everything but it will trulymake you question a lot of your received notions. ... Read more

Book Description

The Sen and Dreze omnibus comprises three outstanding works by two of the world's finest economists. The volume is a trilogy on the causes of hunger, the role public action can play in its alleviation, and the Indian experience in this context. Together the three works provide a comprehensive theoretical and empirical analysis of relevant developmental issues. ... Read more

Reviews (2)

to better the understand the third world
Handelman provides what the third world has to deal with to become industrialized democracies. He foucses on underdevelopment, democratic changes. religion and politics, ethnic conflict, women in development, agrarian reform, and rapid uranization among other topics. THe book was published recently so it even has some information about 9-11 and its impact.

Good source for third world development.

Great Textbook and Resource Tool
I had to read this book for an undergraduate course on the politics of the developing world.It can be difficult to read at times if the reader does not have some understanding of the developing world or the theories that surround their slow development into modernity.Overall it is an wonderful text for building a knowledge base and an excelllent reference tool. ... Read more

Book Description

China and the WTO analyzes the nature of the reforms involved in Chinas accession to the WTO, assesses their implications for the world economy, and examines the implications for individual households, particularly the poor. Its key objective is to provide the information that will allow policy makers to implement WTO commitments and formulate supporting policies to contribute strongly to economic development and poverty reduction. ... Read more

Book Description

This book proposes a new approach to helping communities worldwide create healthier and cleaner living environments.

Just and Lasting Change presents how to transform communities rapidly and in locally appropriate ways. Daniel Taylor-Ide and Carl Taylor have been present at key events and worked with key thinkers in dealing with the large forces of inequity, environmental change, and globalization. The approach they have synthesized builds on what has worked over the last century—and can now be implemented rapidly and cost-effectively in many parts of the world. It relies on a three-way partnership of "bottom-up" initiatives from the community level, "top-down" support from government agencies, and "outside-in" ingenuity and objectivity from experts.Based on both a diverse range of case studies—from the earliest attempts to promote social development in India a century ago to current efforts in Tibet, the Peruvian Andes, China, and the American Southwest—and engaging personal experiences, this book describes, step-by-step, how SEED-SCALE can be effectively implemented.

With contributions from leading international experts in community-based development and public health, Just and Lasting Change offers a hopeful description of how people have made a difference in diverse communities around the world and a practical, accessible handbook for those trying to improve the quality of life in underdeveloped communities everywhere. ... Read more

Reviews (2)

new Reformation
As we watch news reports of the world in chaos and trouble this Book offers not just salve to ease the pain of some of these small communties but also real solution as they being to restore their dignity with justice for all involved.
The Model SEED/Scale is one that I believe should be studied and applied in some of the rural areas, small towns in this part of Southwest Oklahoma. This method is about a reformation of attitude, self-awareness , and possibilites for growth and change bringing the best healthiest new life possible.
I think that Churches could apply the model as well as a way to restoring justice and change withn themselves and within the communities they serve. Revitalization is something that churches in rural arears everywhere talk about I believe this model could be applied with success.
This book should have a broad readership. It could help change the world.
Rev. Bobbie G. McGarey, Southwest Oklahoma Presbyerian Parish Pastor, Frederick, Temple, Walters, Chattanooga, and Grandfield. Oklahoma.

A methodology for durable social change in poor communities
The poor communities of the world are, unfortunately, a laboratory for many thousands of mostly failed experiments in how to improve their situation. This important and valuable book builds on decades of practical experience by the authors in the successful, durable transformation of poor communities. The authors' key insights are (1) the necessity for change to be driven by the collaboration of the community, outside experts, and local government; (this may seem obvious, but many projects fail because they treat one of these three groups as an enemy or obstacle rather than a vital element), (2) to have measurable results, (3) to use the power of the community to modify behavior that is an obstacle to success. This book should be read by donors as well as those directly involved in development activities such as community leaders, government officials, and NGO workers. ... Read more

Book Description

In the 1970s and 1980s the countries of Latin America dealt with their similar debt problems in very different ways--ranging from militantly market-oriented approaches to massive state intervention in their economies--while their political systems headed toward either democracy or authoritarianism. Applying the tools of modern political economy to a developing-country context, Jeffry Frieden analyzes the different patterns of national economic and political behavior that arose in Argentina, Brazil, Chile, Mexico, and Venezuela. This book will be useful to those interested in comparative politics, international studies, development studies, and political economy more generally. "Jeffry Frieden weaves together a powerful theoretical framework with comparative case studies of the region's five largest debtor states. The result is the most insightful analysis to date of how the interplay between politics and economics in post-war Latin America set the stage for the dramatic events of the 1980s."--Carol Wise, Center for Politics and Policy, Claremont Graduate School

Reviews (1)

"Modern Political Economy" in Latin America
Frieden's "Debt, Development and Democracy" is a rational-choice analysis of economic group interests (the "demand side" of political economy) in Latin America that seeks to explain widely differing political and economic outcomes in five countries who faced nearly identical external economic conditions.By holding the external financial environment (foreign lending) constant across the five cases, Frieden can explain two kinds of divergent outcomes (economic policy and political change) through his independent variable:the political interaction of economic interest groups acting rationally vis-a-vis the state to maximize their interests.

Frieden's argument rests on the assumption that foreign loans were liked a pie to be divided.When the pie was large, during the lending spree of 1965-1982, economic interest groups in each of the five countries determined the distribution of the pie based on their political competition for capital.Since these groups were acting to maximize their economic interests, Frieden analyzes these interests in order to explain their impact on the first dependent variable:economic policy during the borrowing period.He finds that the most significant factor determining interests was the nature of national labor-capital relations.In the three cases where labor-capital relations were calm (Mexico, Venezuela and Brazil) various "sectors" of the economy squabbled over the pie, resulting in interventionist economic policy and political cleavages that cut across the labor-capital divide.The winners in this battle for government largesse were the economic sectors that were strongest in two key areas:asset specificity and concentrated organization.But in the two cases where labor-capital relations were contentious, (Argentina and Chile) Frieden shows that capitalists across all sectors recognized their common interest and refrained from sectoral squabbling by forcing the state to eschew interventionism and protect the business climate by liberalizing markets.

After 1982, when the pie began to shrink, it was the nature of these established interest group/state relationships that determined Frieden's second dependent variable:each country's political response to the financial crisis.In the 3 sectoral countries, plus Argentina (where class conflict had subsided and sectoral cleavages therefore rose to prominence), the politically powerful sectors realized their common interest by joining forces to overthrow the regime or government (or the "policy orientation" in the case of one-party Mexico) that could no longer protect their economic interests.But in Chile, where class conflict still seethed, Frieden argues that the entire business community made a rational choice to maintain its pro-regime stance, feeling that they had more to fear from a resurgence of the left than they did from the government's inability to meet their economic demands.This explains the fact that Chile is the book's only case where authoritarianism survived the debt crisis.

Frieden offers two kinds of evidence to test his theory:quantitative and qualitative.The qualitative evidence, showing the behavior of interest groups vis-a-vis the state, is made up of interviews with key players in each of the five countries, plus numerous citations from other studies, both historical and contemporary, that ostensibly use qualitative data.The quantitative data is primarily made up of statistics on Frieden's key antecedent condition, foreign lending (to illustrate the similar nature of debt conditions across the five cases) and also his economic dependent variable:well-organized and asset-specific sectors pushing for state intervention in the economy (to illustrate the fact that sectoral economies spent their foreign loans in statist ways, while the two other cases spent their money in more "liberal" ways).Fewer statistics are needed for Frieden's political dependent variable, political change after the debt crisis, since most observers would agree that Chile changed much less than the other cases (although some would say that Frieden's "policy orientation" variable in Mexico is meaningless, since the PRI never lost its grip on power.But if Frieden were to admit that Mexico did not experience political change after the debt crisis, then his argument would be falsified).

Frieden makes it easy to assess the logical completeness of his rational choice argument by himself bringing up possible alternative theoretical interpretations of his data.While this is an admirable attempt at fair and open social science, it also gives us easy access to the deficiencies of his approach.Frieden himself admits that the behavior of interest groups cannot account for all changes in political economy, but then goes on to assert that "trends toward or away from democracy are largely a function of political actors' evaluation of which institutional arrangement will best serve their interests, not of structural characteristics of developing societies" (137).While this is a bold statement, it robs all other variables (international economic conditions, institutions, the state, ideology, strategic interaction, etc.) of too much of their explanatory power.To argue that economic interest groups alone can determine the nature of economic policy and the extent of political change is an overstatement of their individual capabilities, and Frieden probably knows it.Rational choice assumes too much omnipotence on the part of particular groups and individuals, and too much power to act in their collective interests.Nonetheless, Frieden's explanation is parsimonious, and sheds much light on heretofore ignored factors in the development/democracy relationship. ... Read more

Book Description

"This is a book that should be read by all economists." -- Roger E. Backhouse, The Economic Journal

"A stimulating essay by one of the world's most thoughtful and innovative economists." -- Paul Ormerod, The Times Higher Education Supplement

Why do certain ideas gain currency in economics while others fall by the wayside? Paul Krugman argues that the unwillingness of mainstream economists to think about what they could not formalize led them to ignore ideas that turn out, in retrospect, to have been very good ones.

Krugman examines the course of economic geography and development theory to shed light on the nature of economic inquiry. He traces how development theory lost its initial influence after it became clear that many of the theory's main insights could not be clearly modeled, and concludes with a commentary on areas where further inquiry looks most promising.

The Ohlin Lectures ... Read more

Reviews (4)

Do economic models matter?
Paul Krugman is one of the few economists at home both in 'high theory' and in public economic discourse. He thinks deeply, and he thinks brilliant thoughts. This little book - based on the Olin Lectures he gave in Stockholm - is proof of what his mind can yield, when it sets out to clarify issues.

Development and economic geography, he argues, failed because they did not submit themselves to the discipline of model-building - what might look or even be at first sight downright silly in the end is preferable to the unconscious metaphors of the narrative economic discourse.

For all its clarity, Krugman's argument is deeply flawed. Development and economic geography - together with income distribution - belong to the derelict class of economic problems that addresses the question of historical disparities of wealth in the economic tissue. Why have some countries or regions developed and others have staid behind, why are there poor and rich? Was it done by better use of the available resources, or by impoverishment of other nations or persons? A corollary to this question would be: does our quest for efficiency worsen or reduce disparities? Both Adam Smith and Karl Marx addressed this question, but their observations have been largely forgotten. Pareto and welfare economics picked up the thread, only to conclude platidinuously that the only 'good' policies are those that benefit all.

Should the model-building solutions that Krugman suggests be used in development and geography be any good, they might imply that a 'big push' applies not just to economic growth, but also to concentration of income - consumer surplus playing the role of 'economies of scale'. Interesting. Just as interesting as the metaphor that - as in the 'big bang' theory of star formation - the smallest of initial income irregularities (e.g. first predatory capital accumulation) lead to the agglutination of wealth around capitalists. Which, of course, also implies that it is the 90% of dark (workers) matter that keeps the shiny capitalist 'stars' in place in a well-ordered and expanding economy.

Toys are useful provided they teach a child the 'real thing'. Toy models are not useful when they fail to recognise (let alone address) fundamental issues like that of economic disparity. Models are downright bad when their incautious use leads to blind-sighting in economic policy. Every economist should be made to ponder Kenneth Arrow's Theory of Second Best. Partial optima are bad solutions in the search for an overall optimum.
Can we expect models of income disparity soon? Paul Krugman might devote some of his intellectual powers to construct the simplest of models of income disparity and attempt to integrate it into a growth model - just to disprove (or prove) the widespread intuition that when governments pursue efficiency single-mindedly, the rich get rich and the poor poorer.

Can we further expect a 'grand unified theory of everything economic' that would bring together both concerns of efficiency and income distribution into a unified model for development? Don't hold your breath. As Koopmans famously proved, one cannot kill two birds with one stone. Until then, however, efficiency models should either be denied the Warrant Of Fitness for circulation in political circles, and/or carry the label: Efficiency may be harmful to income distribution.

Neat little book but too expensive!
It's a wonderful little piece, but a teeny little book for $40 bucks?! What's more, most of contents are/were actualy available at Krugman's own web site. Someone's sure making a lot of unearned money here off..... If money were no object, though, I'd surely rate this book much higher.

An Excellent critique of high development theory
This is an excellent critique of high development theory. Although good economists will know the main faults of their disapline, this text elegantly explains why development theory lost its direction. I will not divulge the main ideas, they are well worth the money to find out. - Economists consist of two groups, those that don't know, and those who don't know that they don't know.

Quick and Lucid
Trade theory and economic geography are two subjects that are as interesting as they are tough to lay out. This book would probably be an utter disaster in anyone but Krugman's hands. This book is not really for anyone unfamiliar with economics, but the majority of it could probably by understood by a reasonably bright high school student with some familiarity in the area. Krugman has a breezy style which runs over all the intriging upshots without becoming bogged down in fetishistic details. Admirably his clear rhetoric is supplemented by by many examples, analogies and "intuition pumps."

As far as an introduction to geography and trade go, it is less than thorough, but these are mostly props for Professor Krugman's views on economic theory, which are sensible and unpretentious. He deflates and delineates the worse practices of his profession without resulting to the stock complaints (i.e. that Economists generally think they are physicists -- nonsense!). A good quick book on how to do economics. ... Read more