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Strange Rebels: 1979 and the Birth of the 21st Century by Christian Caryl
anti-communist, Ayatollah Khomeini, Berlin Wall, Bretton Woods, British Empire, colonial rule, Deng Xiaoping, financial deregulation, financial independence, friendly fire, full employment, income inequality, industrial robot, Internet Archive, land reform, land tenure, Mahatma Gandhi, means of production, Mikhail Gorbachev, Mohammed Bouazizi, Mont Pelerin Society, new economy, New Urbanism, oil shock, open borders, open economy, Plutocrats, plutocrats, price stability, rent control, road to serfdom, Ronald Reagan, single-payer health, special economic zone, The Chicago School, union organizing, upwardly mobile, Winter of Discontent, Xiaogang Anhui farmers, Yom Kippur War
Restless Empire: China and the World Since 1750, Odd Arne Westad, 373. 7. Deng Xiaoping: Portrait of a Chinese Statesman, David Shambaugh, 61–62. 8. Coming Alive! China After Mao, Roger Garside, 255. 9. China’s War with Vietnam, 1979: Issues, Decisions, and Implications, King C. Chen, 151. 10. The Deng Xiaoping Era: An Inquiry into the Fate of Chinese Socialism, 1978–1994, Maurice Meisner, 109. 11. “The Fifth Modernization,” Wei Jingsheng, 171–172, in The China Reader: The Reform Era, edited by Orville Schell and David Shambaugh. 12. Sowing the Seeds of Democracy in China: Political Reform in the Deng Xiaoping Era, Merle Goldman, 55. 13. Deng Xiaoping Era, Meisner, 109. 14. Ibid., 121. 15. Selected Works of Deng Xiaoping (1975–1982), Deng Xiaoping, 1984. 16. Deng Xiaoping Era, Meisner, 11–12. CHAPTER 14: THE EVANGELIST 1.
Deng: A Political Biography, Benjamin Yang. East Gate Books, Armonk, NY, 1998. Deng Xiaoping: Chronicle of an Empire, Ruan Ming, translated and edited by Nancy Liu, Peter Rand, and Lawrence R. Sullivan. Westview Press, Boulder, CO, 1994. Deng Xiaoping: My Father, Deng Maomao. Basic Books, New York, 1995. Deng Xiaoping: Portrait of a Chinese Statesman, David Shambaugh. Oxford University Press, New York, 1995. Deng Xiaoping and the Chinese Revolution: A Political Biography, David S. G. Goodman. Routledge, New York, 1994. Deng Xiaoping and the Cultural Revolution: A Daughter Recalls the Critical Years, Deng Rong. Doubleday, New York, 2005. Deng Xiaoping and the Making of Modern China, Richard Evans. Penguin Books, New York, 1995. Deng Xiaoping and the Transformation of China, Ezra Vogel. Belknap Press of Harvard University Press, Cambridge, MA, 2011.
CHAPTER 10: TRUTH FROM FACTS 1. Deng Xiaoping Shakes the World, Yu Guangyuan, 21. 2. Deng Xiaoping and the Transformation of China, Ezra F. Vogel, 193. 3. Ezra Vogel, Deng Xiaoping and the Transformation of China, 103–109. 4. “The 1979 Truth Criterion Controversy,” Michael Schoenhals. The Chinese Quarterly, no. 126 (June 1991). 5. The Deng Xiaoping Era: An Inquiry into the Fate of Chinese Socialism, 1978–1994, Maurice Meisner, 91. 6. Ibid. 7. The China Reader: The Reform Era, edited by Orville Schell and David Shambaugh, 158. 8. Coming Alive! China After Mao, Roger Garside, 212. 9. “China’s Winds of Change,” David Butler, Holger Jensen, and Lars-Erik Nelson. 10. Coming Alive!, Garside, 220–221. 11. Ibid., 219. 12. Ibid., 221. 13. Ibid., 215. 14. Deng Xiaoping Shakes the World: An Eyewitness Account of China’s Party Work Conference and the Third Plenum (November-December 1978), Yu Guangyuan, 21. 15.
The Cold War: A New History by John Lewis Gaddis
anti-communist, Ayatollah Khomeini, Berlin Wall, British Empire, colonial rule, cuban missile crisis, Deng Xiaoping, European colonialism, full employment, land reform, means of production, Mikhail Gorbachev, mutually assured destruction, Potemkin village, Ronald Reagan, Ronald Reagan: Tear down this wall, Sinatra Doctrine
[Friedberg, In the Shadow of the Garrison State, p. 82n; Gaddis, Strategies of Containment, p. 393; International Institute for Strategic Studies, The Military Balance, 1979–1980 (London: IISS, 1979), p. 9.] 44 Arbatov, The System, p. 206. 45 Baum, Burying Mao, pp. 11, 56–65; Richard Evans, Deng Xiaoping and the Making of Modern China (New York: Penguin, 1997), pp. 184–89, 212–43. The quote from Mao is in Li Zhisui, The Private Life of Chairman Mao: The Memoirs of Mao’s Personal Physician, translated by Tai Hung-chao (New York: Random House, 1994), p. 577. I have also benefited from reading Bryan Wong, “The Grand Strategy of Deng Xiaoping,” International Studies Senior Essay, Yale University, 2005. 46 “The ‘Two Whatevers’ Do Not Accord with Marxism,” March 24, 1977, http://English.people.com.cn/dengxp/vol2/text/b1100.html. 47 For the relevant statistics, see Baum, Burying Mao, p. 391. 48 Mikhail Gorbachev and Zdeněk Mlynář, Conversations with Gorbachev: On Perestroika, The Prague Spring, and the Crossroads of Socialism, translated by George Schriver (New York: Columbia University Press, 2002), p. 189. 49 William I.
There is therefore no need to fear.89 “The Pope!” Josef Stalin was reputedly fond of asking. “How many divisions has he got?”90 John Paul II, during the nine days he spent in Poland in 1979, provided the answer. This too was a development, as Dobrynin might have put it, “totally beyond the imagination of the Soviet leadership.” CHAPTER SIX ACTORS Be not afraid! —JOHN PAUL II1 Seek truth from facts. —DENG XIAOPING 2 We can’t go on living like this. —MIKHAIL GORBACHEV3 THE POPE HAD BEENan actor before he became a priest, and his triumphant return to Poland in 1979 revealed that he had lost none of his theatrical skills. Few leaders of his era could match him in his ability to use words, gestures, exhortations, rebukes—even jokes—to move the hearts and minds of the millions who saw and heard him.
There was Lech Wałęsa, the young Polish electrician who stood outside the locked gate of the Lenin shipyard in Gdansk one day in August, 1980—with the pope’s picture nearby—to announce the formation of Solidarność, the first independent trade union ever in a Marxist-Leninist country. There was Margaret Thatcher, the first woman to become prime minister of Great Britain, who relished being tougher than any man and revived the reputation of capitalism in Western Europe. There was Deng Xiaoping, the diminutive, frequently purged, but relentlessly pragmatic successor to Mao Zedong, who brushed aside communism’s prohibitions on free enterprise while encouraging the Chinese people to “get rich.” There was Ronald Reagan, the first professional actor to become president of the United States, who used his theatrical skills to rebuild confidence at home, to spook senescent Kremlin leaders, and after a young and vigorous one had replaced them, to win his trust and enlist his cooperation in the task of changing the Soviet Union.
How Asia Works by Joe Studwell
affirmative action, anti-communist, Asian financial crisis, bank run, banking crisis, barriers to entry, borderless world, Bretton Woods, British Empire, call centre, capital controls, central bank independence, collective bargaining, crony capitalism, cross-subsidies, currency manipulation / currency intervention, David Ricardo: comparative advantage, deindustrialization, demographic dividend, Deng Xiaoping, failed state, financial deregulation, financial repression, Gini coefficient, glass ceiling, income inequality, income per capita, industrial robot, Joseph Schumpeter, land reform, land tenure, large denomination, market fragmentation, non-tariff barriers, offshore financial centre, oil shock, open economy, passive investing, purchasing power parity, rent control, rent-seeking, Ronald Coase, South China Sea, The Wealth of Nations by Adam Smith, urban sprawl, Washington Consensus, working-age population
He is the ephor [the senior magistrate in ancient Greece] of the exchange economy.’ Joseph Schumpeter, A Theory of Economic Development, translated by Redvers Opie (Cambridge, MA: Harvard University Press, 1934), p. 74. Part 4 – Where China Fits In 1. Li Xiangqian and Han Gang, ‘Xin faxian Deng Xiaoping yu Hu Yaobang deng sanci tanhua jilu’ (‘Newly Discovered Record of Three of Deng Xiaoping’s Talks with Hu Yaobang and Others’), Bainianchao, n0. 3 (1999): 4–11, reprinted in Xie Chuntao, ed., Deng Xiaoping xiezhen (A Portrait of Deng Xiaoping) (Shanghai: Shanghai cishu chubanshe, 2005), p. 192. 2. The hugely polluting cement kilns developed in China are a form of vertical kiln into which ingredients are loaded by hand before ignition. The glass-making process is known as the Luoyang technique. For more on China’s ‘alternative’ technologies, see Joe Studwell, The China Dream: The Elusive Quest for the Last Great Untapped Market on Earth (London: Profile, 2002), p. 192. 3.
H Coase, ‘The Institutional Structure of Production’, American Economic Review 82, no. 4 (September 1992). Klaus W. Deininger, Land Policies and Land Reform (Washington DC: World Bank Publications, 2004). Klaus W. Deininger, Land Policies for Growth and Poverty Reduction (Washington DC: World Bank Publications, 2003). Klaus Deininger and Lyn Squire, ‘New Ways of Looking at Old Issues: Inequality and Growth’, Journal of Development Economics, vol. 57, no. 2 (1998). Deng Xiaoping, Selected Works of Deng Xiaoping, vol. 3 (1982–1992) (Beijing: People’s Publishing House, 1993). Department of Agrarian Reform, Republic of the Philippines, ‘Philippine Agrarian Reform: Partnerships for Social Justice, Rural Growth and Sustainable Development’, 3 March 2006. Marleen Dieleman, How Chinese are Entrepreneurial Strategies of Ethnic Chinese Business Groups in Southeast Asia? A Multifaceted Analysis of the Salim Group of Indonesia (Leiden: Leiden University Press, 2007), available at https://openaccess.leidenuniv.nl/bitstream/handle/1887/12076/Thesis.pdf;jsessionid=AE9DC528BA72429D09929BBB8B671B38?
Any progress on this front will be reported at www.howasiaworks.com. Unless otherwise noted, exchange rates are those that applied in the year or period that is being discussed. Finally, pretty much every country in Asia has produced competing systems of romanisation of Asian languages. In writing names of people and places, I have attempted to use the romanised forms that are most familiar to contemporary English language readers. Hence Deng Xiaoping is rendered in the mainland Chinese pinyin system, whereas Chiang Kai-shek is rendered in the Wade-Giles system favoured in Taiwan. In South Korea, a degree of romanisation anarchy reigns. The McCune-Reischauer system, the Yale system, the new Revised Romanisation system and more exist concurrently and Koreans take their pick when romanising their names. Moreover, there is no accepted convention for the hyphenation and capitalisation of given names.
conceptual framework, crony capitalism, currency manipulation / currency intervention, David Brooks, Deng Xiaoping, East Village, financial independence, Gini coefficient, income inequality, indoor plumbing, land reform, Lao Tzu, low skilled workers, market fundamentalism, Mohammed Bouazizi, Plutocrats, plutocrats, rolodex, Silicon Valley, South China Sea, sovereign wealth fund, special economic zone, Steve Jobs, transcontinental railway, Washington Consensus, Xiaogang Anhui farmers, young professional
The strategy, as Chen Yun put it, was to move without losing control—to “cross the river by feeling for the stones.” (Deng, inevitably, received credit for the expression.) In 1979 the Party announced that it would no longer tag people as “landlords” and “rich peasants,” and later Deng Xiaoping removed the final stigma: “Let some people get rich first,” he said, “and gradually all the people should get rich together.” The Party extended the economic experiment. Officially, private businesses were permitted to hire no more than eight employees—Marx had believed that firms with more than eight workers were exploitative—but eventually small enterprises began popping up so fast that Deng Xiaoping told a Yugoslav delegation that it was “as if a strange army had appeared suddenly from nowhere.” He did not take credit. “This is not the achievement of our central government,” he said. All over the country, people were exiting the collective farms that had dominated their lives.
For a vivid history of Quemoy’s role in the conflict between Taiwan and mainland China, see Michael Szonyi, Cold War Island: Quemoy on the Front Line (New York: Cambridge University Press, 2008); Michael Shaplen, “Letter from Taiwan,” The New Yorker, June 13, 1977, p. 72; and Richard James Aldrich, Gary D. Rawnsley, and Ming-Yeh T. Rawnsley, The Clandestine Cold War in Asia, 1945–65: Westrern Intelligence, Propaganda and Special Operations (New York: Routledge, 2000). For background on the relationship between senior leaders at the advent of reform, see Barry Naughton, “Deng Xiaoping: The Economist,” China Quarterly 135, Special Issue: Deng Xiaoping: An Assessment (Sept. 1993): 491–514; Jonathan Spence, The Search for Modern China (New York: W. W. Norton and Company, 1990); Zhao Ziyang, Prisoner of the State: The Secret Journal of Premier Zhao Ziyang (New York: Simon & Schuster, 2009); and Kate Xiao Zhou, How the Farmers Changed China: Power of the People (Boulder, CO: Westview Press, 1996). 2. THE CALL For a narrative history of the demonstrations at Tiananmen Square, see Orville Schell, Mandate of Heaven: In China, a New Generation of Entrepreneurs, Dissidents, Bohemians, and Technocrats Grasps for Its Country’s Power (New York: Simon & Schuster, 1994).
But the numbers were fiction, and as starvation spread, many who complained were tortured or killed. The Party barred people from traveling to find food. Mao’s Great Leap Forward resulted in the world’s worst famine, which killed between thirty and forty-five million people, more than World War I. By the time Captain Lin defected from Taiwan, the People’s Republic was poorer than North Korea; its per capita income was one-third that of sub-Saharan Africa. Deng Xiaoping had been China’s paramount leader for less than six months. At seventy-five, he was a persuasive but plainspoken statesman, and a survivor—repeatedly purged from the leadership by Chairman Mao, twice rehabilitated. In the years since, he has often been described as the sole architect of the boom that followed, but that view is the handiwork of Party historians. Deng understood the limitations of his knowledge.
Zero-Sum Future: American Power in an Age of Anxiety by Gideon Rachman
Asian financial crisis, bank run, battle of ideas, Berlin Wall, Big bang: deregulation of the City of London, Bonfire of the Vanities, borderless world, Bretton Woods, BRICs, capital controls, centre right, clean water, collapse of Lehman Brothers, colonial rule, currency manipulation / currency intervention, deindustrialization, Deng Xiaoping, Doha Development Round, energy security, failed state, Fall of the Berlin Wall, financial deregulation, Francis Fukuyama: the end of history, full employment, global reserve currency, greed is good, Hernando de Soto, illegal immigration, income inequality, invisible hand, Jeff Bezos, laissez-faire capitalism, market fundamentalism, Martin Wolf, Mexican peso crisis / tequila crisis, Mikhail Gorbachev, moral hazard, mutually assured destruction, Naomi Klein, offshore financial centre, open borders, open economy, Peace of Westphalia, peak oil, pension reform, Plutocrats, plutocrats, price stability, RAND corporation, reserve currency, rising living standards, road to serfdom, Ronald Reagan, shareholder value, Sinatra Doctrine, sovereign wealth fund, special economic zone, Steve Jobs, Stewart Brand, The Chicago School, The Great Moderation, The Myth of the Rational Market, Thomas Malthus, trickle-down economics, Washington Consensus, Winter of Discontent
They would surf the Internet rather than riot in the streets. The notion of a win-win world did not seem incredible in the heyday of globalization, for this was also an Age of Optimism in much of Asia and in the European Union. Predictions that the Chinese miracle would be ended by the Tiananmen Square massacre of 1989 proved wide of the mark. Instead Chinese growth was relaunched at an even faster pace, after Deng Xiaoping’s “southern tour” of the country’s manufacturing heartlands in 1992. Almost two more decades of rapid economic growth led the Chinese cheerfully to embrace the idea of a win-win world. Hu Jintao, China’s president, even used the phrase when he toured a Boeing plant near Seattle in 2006, saying that “Boeing’s co-operation with China is a vivid example of mutually beneficial co-operation and a win-win outcome.”5 By the mid-1990s it was clear that India too was growing rapidly, and the rise of the Indian information technology (IT) industry became one of the clichés of globalization.
PART ONE THE AGE OF TRANSFORMATION, 1978–91 INTRODUCTION No power on earth can stop an idea whose time has come. —Manmohan Singh, India’s finance minister, July 1991 The Age of Transformation began in December 1978 in Beijing at the third plenary session of the eleventh Central Committee of the Chinese Communist Party. It ended on Christmas Eve, 1991, when the flag of the Soviet Union was lowered for the last time over the Kremlin. In late 1978, Deng Xiaoping laid the foundations for the opening of China and his country’s emergence as an economic superpower. By contrast, the economic and political reforms initiated by Mikhail Gorbachev in the mid-1980s brought about the breakup of the Soviet Union. But while the domestic political effects of Russian and Chinese economic reforms were very different, their global significance was similar. At the beginning of the 1980s it still made sense to speak of a socialist and a capitalist world.
The cold war was the defining principle of international politics, as it had been since 1949. By the end of the Age of Transformation, the world was no longer divided into two rival political and economic camps. The celebration of capitalism and wealth creation seemed all but universal. In the United States, President Ronald Reagan insisted that “what I want to see above all is that this country remains a country where someone can always get rich.” In China, Deng Xiaoping agreed. “To get rich is glorious,” he famously proclaimed. While the period was bookended by events in the Soviet Union and the People’s Republic of China, it was not just the communist world that was transformed between 1978 and 1991. In the United States and Britain, the Reagan revolution and Margaret Thatcher’s radical reforms heralded a resurgence of free-market ideas and private enterprise, and a rethinking of the role of the state.
Overbooked: The Exploding Business of Travel and Tourism by Elizabeth Becker
airport security, Asian financial crisis, barriers to entry, Berlin Wall, BRICs, car-free, carbon footprint, clean water, collective bargaining, colonial rule, computer age, corporate governance, Costa Concordia, Deng Xiaoping, European colonialism, Exxon Valdez, Fall of the Berlin Wall, Frank Gehry, global village, happiness index / gross national happiness, haute cuisine, indoor plumbing, Masdar, Murano, Venice glass, open borders, out of africa, race to the bottom, Ralph Nader, Scramble for Africa, Silicon Valley, statistical model, sustainable-tourism, the market place, union organizing, urban renewal, wage slave, young professional, éminence grise
For one talk on tourism: China National Tourism Administration, “Deng Xiaoping on Tourism,” 1979, http://www.chinatourism.ch/eg/event_show.php?id=28. China’s rule of Tibet: “The Effect of Tourism on Tibet,” Free Tibet, http://www.freetibet.org/about/tourism. “Water pollution in the Lijiang River”: Honggen Xiao, “The Discourse of Power.” China asked for help to make domestic: Author interview with Patrice Tedjini, May 28, 2009. “We took a group from the Atmospheric Research Center”: Author interview with Barbara Dawson, January 18, 2012. Deng scored his first impressive economic victory: James Mann, About Face: A History of America’s Curious Relationship with China, from Nixon to Clinton (New York: Knopf, 1999), p. 156. Great Wall Hotel: Richard Baum, Burying Mao: Chinese Politics in the Age of Deng Xiaoping (Princeton: Princeton University Press, 1994), p. 169.
All those decades of revolution competed with the traditional image of China, with its Confucian scholars, blue and white porcelain, scroll paintings, shimmering silk robes and the snaking Great Wall. In the 1980s, Chinese leaders radically changed direction and jumped into the global economy. The goal was nothing less than to make China one of the world’s new superpowers. The Chinese leader Deng Xiaoping declared that “poverty is not socialism. To be rich is glorious.” Factories sprang up along the coast and then in the interior. They made automobiles, computers, televisions, furniture, toys and clothing, especially clothing. Whole cities were devoted to the manufacturing of socks or underwear or sweaters. Thanks to very cheap labor and technological breakthroughs, from container ships to the Internet, China could ship around the globe and wipe out competition on every continent.
From the beginning of the seismic economic reforms, China’s leaders believed that tourism would be critical to its economic development and play a major “diplomatic” role, winning over foreign tourists with China’s preeminence as one of the world’s greatest ancient cultures and wowing them with its modern transformation. They would control that message by overseeing nearly every aspect of tourism. China took to heart the boast of the tourism industry that every foreign visitor was a potential citizen ambassador to the world. No one better exemplifies this approach than Deng Xiaoping, China’s supreme leader who opened up the country to the world. Shortly after he wrested power in late 1978, Deng gave five talks on the central role of tourism. The titles don’t translate well: “Tourism Should Become a Comprehensive Industry,” and “There’s a Lot To Be Achieved Through Tourism.” But the overall message was strong. Tourism was essential to China’s new “open door” policy to rejoin the world and become appreciated and respected again as a major power.
Admiral Zheng, Asian financial crisis, Berlin Wall, Bretton Woods, BRICs, British Empire, credit crunch, Dava Sobel, deindustrialization, Deng Xiaoping, deskilling, discovery of the americas, Doha Development Round, energy security, European colonialism, failed state, Fall of the Berlin Wall, Francis Fukuyama: the end of history, global reserve currency, global supply chain, illegal immigration, income per capita, invention of gunpowder, James Watt: steam engine, joint-stock company, Kenneth Rogoff, land reform, land tenure, Malacca Straits, Martin Wolf, Naomi Klein, new economy, New Urbanism, open economy, pension reform, price stability, purchasing power parity, reserve currency, rising living standards, Ronald Reagan, Scramble for Africa, Silicon Valley, South China Sea, sovereign wealth fund, special drawing rights, special economic zone, spinning jenny, Spread Networks laid a new fibre optics cable between New York and Chicago, the scientific method, Thomas L Friedman, trade liberalization, urban planning, Washington Consensus, Xiaogang Anhui farmers
In many respects, it proved a highly effective mechanism for governing, certainly in comparison with the late imperial state and the Nationalists. The key figure was Mao Zedong. Notwithstanding his colossal abuses of power, which resulted in the deaths of millions, as the architect of the revolution and the founder of an independent and unified China, he played the central role in sustaining the popularity and legitimacy of the new regime, and he remains, even today, a venerated figure in the eyes of many Chinese, even more than Deng Xiaoping, who presided over the reform period from 1978. Prior to 1949, the Communist Party’s main base of support lay amongst the peasantry, who constituted the overwhelming majority of the population, rather than in the cities, where the Nationalists were strong. This was very different from the Bolsheviks in the USSR, whose support was concentrated in the cities and was very weak in the countryside.92 The underlying strength and resilience of the new regime was demonstrated by the ability of the Communist Party to renew itself after the death of Mao.93 Despite the calamities of the Great Leap Forward and the Cultural Revolution, both of which Mao had been responsible for, the Communist Party succeeded in restoring its legitimacy amongst the people and then embarking on a very different kind of economic policy, which led to a sustained period of extremely rapid economic growth and a remarkable transformation in China’s situation and prospects.
It is clear from the exchange that maintaining a distinct Chinese core was non-negotiable as far as these students were concerned: the two women, Gao Yi and Huang Yongyi, were shortly off to do doctorates at American universities, while the young men, Wang Jianxiong and Zhang Xiaoming, had landed plum jobs with American firms in Shanghai.111 They were the crème de la crème, the ultimate beneficiaries of Deng Xiaoping’s open-door policy, Chinese winners from globalization. Wang: In the last century Chinese culture became marginal while Western culture became dominant. The Chinese have been much more preoccupied with the past, with their history, than the West. We have to understand why we are behind other countries, why we haven’t been able to develop our country. The West has won a very great victory and this has meant a big crisis for Chinese civilization.
There were brand-new motorways, bridges, factories, warehouses, and a lot more cars; and little sign of the juxtaposition of eras that had so fascinated me two years earlier. I enlisted the help of a couple of officials, but as I described the scenes I wanted to recapture on film they shrugged as if to suggest that they lay in the distant past. For me it was just two years ago; for them it could have been a different century. Guangdong, the brainchild of Deng Xiaoping, was well on the way to becoming the industrial centre of China, full of factories, many Hong Kong-owned, making cheap, mass-produced goods for the global market. This is how and where China’s economic transformation started. Now Guangdong, just fifteen years after that first volcanic eruption, is turning over a new page in its history. It can no longer sustain its old comparative advantage.
The Great Surge: The Ascent of the Developing World by Steven Radelet
Admiral Zheng, agricultural Revolution, Asian financial crisis, bank run, Berlin Wall, Branko Milanovic, business climate, business process, call centre, Capital in the Twenty-First Century by Thomas Piketty, clean water, colonial rule, demographic dividend, Deng Xiaoping, Dissolution of the Soviet Union, Doha Development Round, Erik Brynjolfsson, European colonialism, F. W. de Klerk, failed state, Francis Fukuyama: the end of history, Gini coefficient, global supply chain, income inequality, income per capita, invention of the steam engine, James Watt: steam engine, John Snow's cholera map, Joseph Schumpeter, land reform, low skilled workers, M-Pesa, megacity, Mikhail Gorbachev, oil shock, out of africa, purchasing power parity, race to the bottom, randomized controlled trial, Robert Gordon, Second Machine Age, secular stagnation, Simon Kuznets, South China Sea, special economic zone, Steven Pinker, The Wealth of Nations by Adam Smith, Thomas Malthus, trade route, women in the workforce, working poor
A remarkable 98 percent of registered voters turned out over five days to select delegates to a constituent assembly that would draft a new constitution and set the stage for presidential elections and the formation of a new government.1 The Namibians lining up that day had no way of knowing it, but their actions would reverberate far beyond their borders and mark the beginning of a slow but steady sweep of democracy across Africa. They could not know that exactly as they were voting, forces were under way that would bring about some of the most important changes in world history. Far to the east that same day, Deng Xiaoping was resigning as chairman of China’s Central Military Commission, his last formal post in the Communist Party leadership. Deng had transformed the Chinese economy by abandoning Mao Tse-tung’s rigid Communism and adopting a more mixed, market-based economy. His resignation marked a key political change: It effectively ended the tradition of Chinese leaders ruling like emperors until death.2 It also shifted power from a single supreme leader to the group leadership of the party and effectively marked the beginning of de facto term limits.
Poverty only deepened during the violent days of the Cultural Revolution (1966–1976). In 1976 Mao single-handedly and dramatically changed the direction of global poverty with one simple act: he died. While Mao had overseen some economic growth alongside dramatic improvements in health, he left China a poor country. In 1981 there were 838 million Chinese living in extreme poverty—fully 84 percent of its population. But as Deng Xiaoping began to introduce wide-ranging economic reforms in the 1980s, starting with the decollectivization of agriculture, economic growth accelerated and the number of extreme poor began to fall. By 1993—just twelve years later—the number of extreme poor had dropped to 646 million, and the share of the population in extreme poverty had dropped to 55 percent. Incredibly, following that fast start, the pace accelerated even more, so that by 2011, the number of extreme poor in China had dropped to 84 million, and the share had plummeted to just 6 percent.
There is still a long way to go, but it is an enormously important start. * * * I. The Meiji Restoration was a political revolution that ended the Tokugawa shogunate and consolidated control of Japan under the emperor Meiji, resulting in enormous political, social, and economic changes in Japan in the decades that followed. THREE THE WEALTH OF A NEW GENERATION To get rich is glorious. —Deng Xiaoping WHEN MOZAMBIQUE’S CIVIL WAR ENDED in 1992, the country was in ruins.1 ARMED rebellion against Portuguese colonial rule started in the 1960s, but conflict intensified significantly after the 1974 coup in Lisbon led to Portugal’s withdrawal. When the Portuguese pulled out, “they did so with spite, sabotaging vehicles and pouring concrete down wells, elevator shafts, and toilets, leaving the country in disarray,” according to David Smith of the Guardian.2 The new government in Maputo established one-party rule, aligned itself with the Soviet Union, and provided support to the liberation movements in South Africa and Rhodesia, while the governments of South Africa and Rhodesia countered by financing an armed rebellion to fight the Mozambican government.
China into Africa: trade, aid, and influence by Robert I. Rotberg
barriers to entry, BRICs, colonial rule, corporate governance, Deng Xiaoping, energy security, European colonialism, failed state, global supply chain, global value chain, income inequality, Khartoum Gordon, labour market flexibility, land reform, megacity, microcredit, offshore financial centre, out of africa, profit maximization, purchasing power parity, RAND corporation, Scramble for Africa, South China Sea, special economic zone, structural adjustment programs, trade route, Washington Consensus
.), Strategic Reports on the Development of Sino-African Relationship in the 21st Century (Beijing, 2000), 12–13. 12. Li Liqing, “Chinese Communist Party’s Contacts with African Political Parties: History and Present,” West Asia and Africa, Issue 3 (2006), 16–19. 13. Collection of Documents of the Twelfth Assembly of the Communist Party of China (Beijing, 1982), 50. 14. China hosted the Third Asian Parties International Conference in 2004. See also Huang Wendeng, “Deng Xiaoping Theory and Sino-Latin American Party Relations,” Journal of Latin American Studies, Issue 6 (1998), 1–7. 15. Jiang, Records on Visits to Foreign Parties, 670–671. As the vice minister of the International Department of the CPC, Jiang recorded his eleven visits to sub-Saharan African countries in the book. 16. Li, “Chinese Communist Party’s Contacts,” 16–19; “Furthering the Development of Sino-Africa Relationship: Reports on 5th African Parties’ Seminar,” Contemporary World, Issue 6 (2002), 18–19; Zhong Weiyun, “The Contemporary Situation of Parties in Sub-Saharan Africa and Sino-African Parties Relationship,” in Center for African Studies of Peking University (ed.), China and Africa, 129–142. 17.
The attraction of diaspora Chinese capital from Hong Kong and Taiwan led to the integration of these economies with the mainland, despite the political separation and differences between the respective governments in Beijing, Hong Kong, and Taipei. SEZs also served as the model for market liberalization across China. This process of rapid liberalization continues to be introduced across western, southwestern, and northeastern China. The success of the SEZs gave credibility to Deng Xiaoping’s reform program and laid the foundation for the commitment to liberal market forces that the PRC continues to pursue to this day. China’s SEZ Model Moves Offshore It is nearly three decades since the inception of SEZs, and China is currently establishing SEZs in targeted foreign economies. Adapted from China’s own domestic experience in running preferential economic zones, the PRC’s Ministry of Commerce (MOFCOM) is encouraging Chinese enterprises to “go global” by locating their foreign operations in designated Chinese SEZs in the global economy.
Tanzanian SEZ: A Logistics Hub Following the commitment made by the PRC to establish three to five SEZs in Africa before the next FOCAC summit in late 2009, the Chinese government has formally announced two such zones in countries that are not only strategically and commercially important but also have enjoyed a long relationship of political trust with the People’s Republic. One is the aforementioned Zambian SEZ. Beijing continues to hold former Zambian President Kenneth Kaunda in high regard. During his twenty-seven years in the presidency (1964–1991), Kaunda cemented a close political relationship with a number of generations of China’s leadership including Mao Zedong, Zhou Enlai, and Deng Xiaoping. He visited China four times as president of Zambia. The same long relationship was built between the PRC and Tanzania. Julius Nyerere visited China as president of Tanzania five times from 1964 to 1985 and on eight occasions as chairman of the South Commission between 1987 and 1997. Like Kaunda, Nyerere had a special relationship with China, and this contributed to China constructing the Tanzania-Zambia Railway (Tanzam Railway) in the 1970s.
3D printing, Asian financial crisis, backtesting, bank run, banking crisis, Berlin Wall, Bernie Sanders, BRICs, business climate, business process, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, centre right, colonial rule, Commodity Super-Cycle, corporate governance, crony capitalism, currency peg, dark matter, debt deflation, deglobalization, deindustrialization, demographic dividend, demographic transition, Deng Xiaoping, Doha Development Round, Donald Trump, Edward Glaeser, Elon Musk, eurozone crisis, failed state, Fall of the Berlin Wall, falling living standards, Francis Fukuyama: the end of history, Freestyle chess, Gini coefficient, hiring and firing, income inequality, indoor plumbing, industrial robot, inflation targeting, Internet of things, Jeff Bezos, job automation, Joseph Schumpeter, Kenneth Rogoff, knowledge economy, labor-force participation, Malacca Straits, Mark Zuckerberg, market bubble, megacity, Mexican peso crisis / tequila crisis, mittelstand, moral hazard, New Economic Geography, North Sea oil, oil rush, oil shale / tar sands, oil shock, pattern recognition, Peter Thiel, pets.com, Plutocrats, plutocrats, Ponzi scheme, price stability, Productivity paradox, purchasing power parity, quantitative easing, Ralph Waldo Emerson, random walk, rent-seeking, reserve currency, Ronald Coase, Ronald Reagan, savings glut, secular stagnation, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Simon Kuznets, smart cities, Snapchat, South China Sea, sovereign wealth fund, special economic zone, spectrum auction, Steve Jobs, The Wisdom of Crowds, Thomas Malthus, total factor productivity, trade liberalization, trade route, tulip mania, Tyler Cowen: Great Stagnation, unorthodox policies, Washington Consensus, WikiLeaks, women in the workforce, working-age population
The first big shock to postwar prosperity came in the 1970s, when much of the world felt leaderless in the face of stagflation—stagnant economic growth coupled with high inflation, triggered by a complex of forces including the excess spending of the welfare states and sharp oil price hikes engineered by the OPEC cartel and the petrostates. The widespread sense that their countries were coming apart prepared many nations to accept the idea of radical change and led to the rise of pioneering free market reformers: Margaret Thatcher in Britain, Ronald Reagan in the United States, and Deng Xiaoping in China. As is often the case in crisis periods, the promise of these leaders was often obscured by the gloom of the times; early on many observers dismissed Reagan as an ex-actor, Thatcher as a grocer’s daughter, and Deng as a faceless member of China’s collective leadership. China circa 1978 was too shell shocked by the recent mob violence of the Cultural Revolution to harbor high expectations for any leader.
Within months, however, she began moving to grant amnesty to her brother, triggering a new revolt and a coup that toppled her in May 2014. The renewed turmoil took a toll on Thailand’s economy, and the country’s growth rate slumped from 5 percent in early 2013 to 2 percent in 2015. A particularly auspicious mix of personality traits in a leader is a combination of public charisma and private earnestness. Deng Xiaoping was a visionary reformer and magnetic public personality, yet in private he could also surprise visitors like Henry Kissinger with his capacity for going on about the affairs of the department of metallurgy. India’s new prime minister Narendra Modi is a bit like that—shockingly nuts and bolts in the flesh. So is the president of the Philippines, Noynoy Aquino, whose earthy charm helps ordinary Filipino voters overlook the fact that he hails from the landed aristocracy.
China is the very different case of a successful technocracy that may be growing too confident in the ability of its technocrats to control economic growth. For years, China reported much less volatile economic growth than other developing nations, creating suspicion that it was manipulating the numbers to make the economy look like a smoothly running machine, and to foster social harmony. For a long time, I thought that suspicion was overblown. When Deng Xiaoping took power in 1979, one of the first things he told his underlings was that he wanted honest data—not the inflated numbers they had been feeding Mao to stroke his ego. Even in 1990, after the fallout from the events in Tiananmen Square, the Deng regime reported growth of less than 4 percent, way below the official target of 8 percent. And as recently as 2003, Deng’s handpicked and equally pragmatic successors were openly criticizing provincial leaders for overstating local growth numbers in an attempt to advance their careers.
business climate, credit crunch, Deng Xiaoping, Donald Trump, facts on the ground, glass ceiling, high net worth, illegal immigration, income per capita, indoor plumbing, job-hopping, Maui Hawaii, price stability, quantitative easing, Silicon Valley, Skype, South China Sea, Steve Jobs, thinkpad, trade route, trickle-down economics, upwardly mobile, urban planning, women in the workforce, young professional
Marshal Ye was ranked number three in the Party hierarchy during the Cultural Revolution, behind only Mao himself and Wang Hongwen one of the members of the Gang of Four. Despite Marshal Ye’s power, or perhaps because of it, his children were jailed during the Cultural Revolution, some in solitary confinement. As soon as Mao died, Marshal Ye led the arrest of the Gang of Four. He acted as the president of the country in the 1980s when he was Chairman of the Standing Committee of the Politburo, China’s highest governing body. Deng Xiaoping was another leader at the time; he ranked behind Marshal Ye in the Party chain of command and had also suffered at the hands of tyranny. His son, Deng Pufang, was paralyzed after the Red Guards threw him out of a three-story window at Peking University during the Cultural Revolution. Red Guards denied him medical treatment, which doctors later said might have saved his ability to walk, because his father had been denounced as a capitalist.
This approach was smart for two reasons. First, wealth creation makes it a lot easier for people to stop dwelling on the suffering they faced in earlier years, and less likely to push for violent change. Second, countries that push for gender equality generally develop more quickly and foster more vibrant economies and cultures. During the Cultural Revolution, being labeled a capitalist was a heinous crime, as Deng Xiaoping and his paralyzed son knew all too well. Now that notion has been turned upside down. People who are not making money are too often looked down on because they lack ambition, potential, and social status. In many cases, the drive to make money has resulted in excesses, including many unscrupulous businessmen who lie, cheat, and cut corners as they try to get rich. Many Shanghainese girls told me they would not even consider marrying someone who has not already bought a house (without a mortgage) and car.
Eighty percent of my firm’s Chinese hires in the last three years went abroad to get master’s degrees before returning to start their careers in China. Parent after parent tells me the main reason they send their child abroad is their lack of faith in the Chinese educational system. Even China’s top leaders send their children abroad. The daughter of Xi Jinping, China’s presumptive next president after Hu Jintao, is an undergraduate at Harvard. The grandchildren of past leaders like Hu Yaobang, Chen Yun, Deng Xiaoping, and Bo Yibo all studied at Yale, Harvard, and Duke. Can you imagine Barack Obama sending his daughters abroad for their undergraduate studies? If the very top of Chinese society is looking abroad for education, it is clear something is lacking at home, no matter what the test scores, or alarm by pundits like Wadhwa, indicate. After the Cultural Revolution, when many scholars were harassed and universities’ doors were shut, China’s intellectual capital was so far behind in terms of innovation and entrepreneurship that the government actively promoted leading scholars’ studies abroad.
agricultural Revolution, airport security, Anton Chekhov, Ayatollah Khomeini, Berlin Wall, British Empire, colonial exploitation, complexity theory, computer age, crony capitalism, demographic transition, Deng Xiaoping, Eratosthenes, European colonialism, F. W. de Klerk, failed state, Fall of the Berlin Wall, Francis Fukuyama: the end of history, global village, illegal immigration, Internet Archive, John Snow's cholera map, Khyber Pass, manufacturing employment, megacity, Mercator projection, out of africa, RAND corporation, risk tolerance, Ronald Reagan, South China Sea, special economic zone, Thomas Malthus, trade route, transatlantic slave trade, UNCLOS, UNCLOS
If Nixon's opening to China caused misgivings in the West (and, to be sure, in the Soviet Union, no longer on China's ideological page), it also contributed to qualms in China itself. Mao adamantly opposed changing the political or the economic system that had made the People's Republic what it was. Zhou was in no position to change Mao's mind, but as premier he was able to promote party leaders who took a more pragmatic view of China's needs. One of those leaders was the man would guide post-Mao China from torpor to tiger: Deng Xiaoping. In the fateful year of 1976, when power struggles and natural disasters buffeted the state, Deng readied policies that would combine continued communist dictatorship with market-driven economics. Within decades, not distant generations, China was a power to be reckoned with on the global stage. By the turn of the century it was a nuclear power, an economic heavyweight, a military juggernaut with the world's largest standing army and a growing navy, and a political force with increasing influence in its own backyard and beyond.
Gleaming new airports, high-speed intercity highways, multilane urban ringroads, state-of-the-art suspension bridges, hydroelectric projects, vast factory complexes, and modern container-port facilities reflected China's burgeoning economic power. Foreign investment from Japan, the United States, even (indirectly) from Taiwan propelled the process, and on the insatiable American market Chinese goods sold in quantities unimag-ined before, creating a huge trade surplus for Beijing and financial reserves undreamed of even by Deng Xiaoping himself. With economic strength comes political clout, and by the turn of the century the outlines of a new geopolitical relationship between the United States and China were visible. After the Second World War, the Japanese had become allies of the United States; after the Korean War, South Korea achieved democracy as well as economic success. American troops remained based in both Japan and South Korea.
Mao often referred to any control of population growth as a capitalist plot to weaken communist societies, and, like his cohorts in Moscow, he encouraged mothers to have numerous children (in the 1960s, Soviet women bearing ten children or more were designated "Heroines of the State"). As a result, following the end of the Great Leap Forward, population growth in China during the 1960s and 1970s was as high as 3 percent, and while the official figures are unreliable, China was adding as many as 20 million per year, rushing toward 1 billion. When Deng Xiaoping's pragmatists took over following Mao's death, one of their priorities was to get this spiral under control, and they instituted their infamous "One Child Only" policy to achieve this. Today, China's official growth rate is 0.7 percent, which, on a base of more than 1.3 billion, still results in an annual increase of 9 million. 138 WHY GEOGRAPHY MATTERS The second Maoist initiative was to try to erase the legacies of China's most influential philosopher and teacher, Confucius (Kongfuzi or Kongzi in modern Chinese).
accounting loophole / creative accounting, anti-communist, Asian financial crisis, asset-backed security, Atahualpa, balance sheet recession, bank run, banking crisis, Big bang: deregulation of the City of London, Bretton Woods, British Empire, California gold rush, capital controls, Carmen Reinhart, central bank independence, centre right, collapse of Lehman Brothers, collateralized debt obligation, credit crunch, currency manipulation / currency intervention, Deng Xiaoping, discovery of the americas, Etonian, eurozone crisis, fiat currency, financial innovation, floating exchange rates, Francisco Pizarro, full employment, German hyperinflation, hiring and firing, income inequality, invisible hand, Isaac Newton, John Maynard Keynes: Economic Possibilities for our Grandchildren, joint-stock company, joint-stock limited liability company, Joseph Schumpeter, Kenneth Rogoff, labour market flexibility, market bubble, money: store of value / unit of account / medium of exchange, moral hazard, new economy, oil shock, Plutocrats, plutocrats, Ponzi scheme, price mechanism, quantitative easing, rolodex, Ronald Reagan, South Sea Bubble, the market place, The Wealth of Nations by Adam Smith, too big to fail, War on Poverty, Yom Kippur War
., p. 21. 51Otmar Issing, speech delivered at the Danish Society of Financial Analysts’ 25th Jubilee, Copenhagen, 7 May 1999. 52Francesco Giordano and Sharda Persaud, The Political Economy of Monetary Union: Towards the Euro, London, 1998, p. 37. 53Ibid., p. 53. 54Issing, The Birth of the Euro, p. 193. 55Der Spiegel, ‘Aufbruch ins Ungewisse’, 29 December 2001. 56Matthew Lynn, Bust: Greece, the Euro and the Sovereign Debt Crisis, London, 2011, p. 34. Chapter 18: The Rise of China 1New York Times, ‘Deng Xiaoping: A Political Wizard Who Put China on the Capitalist Road’, 20 February 1997. 2Ezra F. Vogel, Deng Xiaoping and the Transformation of China, Cambridge, MA, 2011, p. 49. 3Ibid., pp. 217–18. 4Ibid., pp. 218, 220. 5Eli Heckscher, Mercantilism, 2 vols, 1st English edn, London, 1935, vol. 2, p. 46. 6Paul Krugman, from ‘The Conscience of a Liberal’, a blog appearing in the New York Times, 31 December 2009. 7Patrick Buchanan, ‘Yankee Utopians in a Chinese Century’, 2 July 2010, found on http://buchanan.org/blog/yankee-utopians-in-a-chinese-century-4227. 8Ibid. 9Lawrence J.
This proved to be a fateful event which made the lives of investors, politicians and, most importantly, the Greek people less comfortably secure than might otherwise have been the case. 18 The Rise of China At the end of the twentieth century, the most significant global development, strictly in terms of international currency, was undoubtedly the creation and successful launch of the euro. More widely, the greatest economic phenomenon of the time was almost certainly the growth of China. After adopting a peculiar brand of Marxism with the victory of the Chinese Communist Party in 1949, China abandoned doctrinaire Communism as an economic philosophy in 1978. It was in this year that Deng Xiaoping finally seized the reins of power in China and began a process which continued to propel that country in the early twenty-first century. Deng was born in 1904 and was already seventy-four when he became China’s ‘paramount leader’ in 1978. At such an age, many people thought he would be ‘too old to be anything but a transitional figure’.1 Deng’s journey had been tortuous. Mao had first placed him in the upper reaches of the party in the early 1950s.
Mitchell, Wesley, ‘Review of Lionel Robbins, The Great Depression’, Quarterly Journal of Economics, vol. 49, no. 3 (May 1935), pp. 503–7. Morrison, Wayne M. and Labonte, Marc, China’s Currency Policy: An Analysis of the Economic Issues, CRS Report for Congress, Washington, DC, 19 December 2011. New York Times, advertisement, 11 February 2003. New York Times, ‘China Won’t Reduce Value of Currency, Official Says’, 1 December 1997. New York Times, ‘Deng Xiaoping: A Political Wizard Who Put China on the Capitalist Road’, 20 February 1997. New York Times, ‘Devaluation by China’, 16 December 1989. New York Times, ‘The Doctrine was Not to Have One’, 25 August 2005. New York Times, ‘Greece’s Stumble Follows a Headlong Rush into the Euro’, 5 May 2010. New York Times, ‘Greek Leader Offers Plan to Tackle Debt Crisis’, 15 December 2009. New York Times, ‘Greek Opposition Leader Seeks Conference on Debt’, 25 January 2013.
Breakout Nations: In Pursuit of the Next Economic Miracles by Ruchir Sharma
3D printing, affirmative action, Albert Einstein, American energy revolution, anti-communist, Asian financial crisis, banking crisis, Berlin Wall, BRICs, British Empire, business climate, business process, business process outsourcing, call centre, capital controls, Carmen Reinhart, central bank independence, centre right, cloud computing, collective bargaining, colonial rule, corporate governance, crony capitalism, deindustrialization, demographic dividend, Deng Xiaoping, eurozone crisis, Gini coefficient, global supply chain, housing crisis, income inequality, indoor plumbing, inflation targeting, informal economy, Kenneth Rogoff, knowledge economy, labor-force participation, labour market flexibility, land reform, M-Pesa, Mahatma Gandhi, market bubble, megacity, Mexican peso crisis / tequila crisis, new economy, oil shale / tar sands, oil shock, open economy, Peter Thiel, planetary scale, quantitative easing, reserve currency, Robert Gordon, Shenzhen was a fishing village, Silicon Valley, software is eating the world, sovereign wealth fund, The Great Moderation, Thomas L Friedman, trade liberalization, Watson beat the top human players on Jeopardy!, working-age population
The nature of emerging-market vulnerability to troubles in the West also takes many forms. Many Asian countries still depend on exports to the West, while several eastern European countries rely more on lending from the West to fund growth. Not All Trees Grow to the Sky There has also been a halt to the reforms that set many developing countries on the “emerging” path in the first place. After Deng Xiaoping began experimenting with free-market reform in the early 1980s, China went on to launch a “big bang” reform every four to five years, and each new opening—first to private farming, then to private businesses, then to foreign businesses—set off a new spurt of growth. But that cycle has run its course. The unthinking faith in the hot growth stories of the last decade also ignores the high odds against success.
These costs are starting to spill over into higher inflation, and Beijing has openly acknowledged that all this points to a slowdown in the economy. Yet such is the overblown faith in China’s economic stewards that the China bulls seem to think Beijing can achieve growth targets the country itself no longer aims to achieve. The amazing story of China’s relentless reform—which had persisted in good times and bad since the landmark reign of paramount leader Deng Xiaoping and his immediate successors—appears to have exhausted itself in the last few years. China boomed the old-fashioned way, by building roads to connect factories to ports, by developing telecommunication networks to connect business to business, and by putting underemployed peasants to work in better jobs at urban factories. Now all these drivers are reaching a mature stage, as the pool of surplus rural labor dries up, factory employment reaches maximum capacity, and the highway network reaches a total length of 46,000 miles, the second largest in the world behind the 62,000 miles in the United States.
To control the runaway housing market, Beijing has been hiking interest rates through the central bank, which will slow investment and overall economic growth. Outsiders who think Chinese leaders care only about fast growth overlook their mounting concern about the anger over inflation, and the threats to social stability. Beijing recently banned billboards advertising luxury goods, not to restrain spending but to avoid stirring up resentment. Whereas Deng Xiaoping proclaimed that “it’s glorious to be rich,” his successors are making sure no one gets too rich. Not a single billionaire in China has a net worth of more than $10 billion; compare that to eleven billionaires with a net worth of more than $10 billion in Russia and six in India, which have far smaller economies. Only one tycoon who made China’s list of top-ten billionaires five years ago was still on the roster in 2011.
Affordable Care Act / Obamacare, Andrei Shleifer, Asian financial crisis, Atahualpa, banking crisis, barriers to entry, Berlin Wall, blood diamonds, British Empire, centre right, clean water, collapse of Lehman Brothers, colonial rule, conceptual framework, crony capitalism, deindustrialization, Deng Xiaoping, double entry bookkeeping, Edward Snowden, Erik Brynjolfsson, European colonialism, facts on the ground, failed state, Fall of the Berlin Wall, first-past-the-post, Francis Fukuyama: the end of history, Francisco Pizarro, Frederick Winslow Taylor, full employment, Gini coefficient, Hernando de Soto, Home mortgage interest deduction, income inequality, invention of the printing press, iterative process, knowledge worker, land reform, land tenure, life extension, low skilled workers, manufacturing employment, means of production, Menlo Park, Mohammed Bouazizi, Monroe Doctrine, moral hazard, new economy, open economy, out of africa, Peace of Westphalia, Port of Oakland, post-industrial society, Post-materialism, post-materialism, price discrimination, quantitative easing, RAND corporation, rent-seeking, road to serfdom, Ronald Reagan, Scientific racism, Scramble for Africa, Second Machine Age, Silicon Valley, special economic zone, stem cell, the scientific method, The Wealth of Nations by Adam Smith, Thomas L Friedman, Thomas Malthus, too big to fail, trade route, transaction costs, Tyler Cowen: Great Stagnation, women in the workforce, World Values Survey
Then, as now, the central problem of Chinese politics has not been how to concentrate and deploy state power but rather how to constrain it through law and democratic accountability. The task of balancing state, law, and accountability that was completed in Japan by the late 1940s has been only partially accomplished in China. Under Mao Zedong, law virtually disappeared and the country became an arbitrary despotism. Since the reforms that began under Deng Xiaoping in 1978, China has been moving slowly toward a political system that is more rule based. But the rule of law is still far from secured, and the regime’s sustainability will depend heavily on whether this becomes the main line of political development in the twenty-first century. THE NATURE OF CHINESE LAW China represents the one world civilization that never developed a true rule of law. In ancient Israel, the Christian West, the Muslim world, and India, law originated in a transcendental religion and was interpreted and implemented by a hierarchy of religious scholars and jurists.
Mao’s revolution ended any semblance of rule-based administration, undermined the operations of government, and terrorized the party itself, much like Stalin’s purges of the Soviet Communist Party during the 1930s.21 REBUILDING RULE BY LAW AFTER 1978 It is impossible to understand the China that emerged after the death of Mao and the reforms that began in 1978 except in relation to the trauma experienced by those who lived through the Cultural Revolution. The Communist elite that survived this period, led by one of the greatest statesmen of the twentieth century, Deng Xiaoping, was determined that Mao’s form of personal dictatorship must never be allowed to occur again. The political reform process that unfolded subsequently centered around the slow construction of a series of rules that would limit the ability of any future charismatic leader to emerge and wreak havoc on the whole of Chinese society in the manner of Mao. In addition, law was seen as a mechanism by which the party could channel and monitor popular grievances against the government.
The newer versions also returned some powers from the party to the state, reflecting the latter’s larger role in economic management. These constitutional provisions, however, were more declarations of new policy initiatives decided on by the party than serious legal instruments that would govern the party’s own behavior. The contemporary Chinese constitution is built around two potentially contradictory principles. On the one hand, Deng Xiaoping asserted in 1978 that “democracy has to be institutionalized and written into law, so as to make sure that institutions and laws do not change whenever the leadership changes, or whenever the leaders change their views.”22 The Chinese constitution provides for an elected National People’s Congress (NPC), which is held to be the “supreme organ of state power,” along with people’s congresses at lower levels of government.
airport security, banking crisis, barriers to entry, Berlin Wall, blood diamonds, Bretton Woods, BRICs, capital controls, clean water, Deng Xiaoping, Doha Development Round, energy security, European colonialism, failed state, global rebalancing, global supply chain, income inequality, informal economy, Julian Assange, labour mobility, Martin Wolf, Mikhail Gorbachev, mutually assured destruction, Nixon shock, nuclear winter, purchasing power parity, reserve currency, Ronald Reagan, smart grid, South China Sea, sovereign wealth fund, special economic zone, Stuxnet, trade route, uranium enrichment, Washington Consensus, WikiLeaks, Yom Kippur War
ENTER THE DRAGON China’s rise began in 1976 with the death of Mao Zedong. A year later, China still accounted for just 0.6 percent of world trade.36 In 2010, it surpassed Japan to become the world’s second largest economy, and Western bankers and economists are now taking bets on just how soon China will claim the title of the world’s largest trading nation.37 Beginning in the late 1970s, Mao’s successor as paramount leader, Deng Xiaoping, began the reform process by establishing four “special economic zones,” coastal enclaves that served as capitalist laboratories where foreign companies were invited to invest on favorable terms. Spurred by early success, Deng gradually expanded the experiment. In 1984, fourteen coastal cities were opened to a surge of foreign investment. In the countryside, agricultural production soared as new rules gave farmers new freedoms and new incentives to produce.
America’s willingness to play the global policeman has given China time to open and maintain trade routes and sea lanes, and develop trade and investment relations abroad. The willingness of successive U.S. presidents to pull punches on Beijing’s human rights record in favor of better trade relations created the makings of, if not a beautiful friendship, at least a profitable partnership. Despite the delay imposed by events in Tiananmen Square, the death of European and Soviet communism helped the aging Deng Xiaoping persuade China’s elite that only a rising standard of living would save the country’s one-party system and that a more ambitious experimentation with market-driven capitalism was the only way to get there. To create jobs, Beijing worked to open consumer markets around the world, especially in America and Europe, to Chinese exports. The drive to build a modern economy also required a warm welcome for foreign companies that could provide Chinese companies with access to state-of-the-art technology, management and marketing expertise, best commercial practices, and unprecedented levels of foreign direct investment.
China’s urban employment grew from 190.4 million workers in 1995 to an estimated 256.4 million in 2003. Eswar Prasad, ed., China’s Growth and Integration into the World Economy: Prospects and Challenges, Occasional Paper 232 (Washington, DC: International Monetary Fund, 2004), http://prasad.dyson.cornell.edu/doc/books/ChinasGrowthAndIntegrationWithTheWorldEconomy-ProspectsAndChallenges_IMFOP232_2004.pdf. 43. When Deng Xiaoping died in 1997, China’s foreign-exchange reserves stood just below $140 billion. By 2004, they were estimated above $650 billion. Eswar Prasad and Shang-Jin Wei, “The Chinese Approach to Capital Inflows: Patterns and Possible Explanations,” in Capital Controls and Capital Flows in Emerging Economies: Policies, Practices, Consequences, ed. Sebastian Edwards (Chicago: University of Chicago Press, 2007), http://prasad.dyson.cornell.edu/doc/PrasadWeiChinaKFLowsNBERFinal.pdf. 44.
Under the Loving Care of the Fatherly Leader: North Korea and the Kim Dynasty by Bradley K. Martin
anti-communist, Asian financial crisis, colonial rule, cuban missile crisis, Deng Xiaoping, failed state, four colour theorem, illegal immigration, informal economy, kremlinology, land reform, means of production, Mikhail Gorbachev, Potemkin village, profit motive, RAND corporation, Ronald Reagan, special economic zone, stakhanovite, UNCLOS, upwardly mobile, uranium enrichment, women in the workforce
Reportedly it had died a natural death. As for publicly displayed art and sculpture, most of what I saw depicted Kim Il-sung. A Japanese newsman, in Pyongyang to cover the table tennis tournament, was sent home early after he filed an article reporting that the gold coating on a sixty-five-foot (twenty-meter) bronze statue of the Great Leader had been removed. His article cited a rumor among foreign residents in Pyongyang that Deng Xiaoping, during a visit not long before, had suggested to President Kim that a golden statue might be a bit too extravagant a display for a socialist country seeking Chinese economic aid. Son-hui arrives at the village where, following her wartime rescue from a burning house, she spent her childhood. She is deeply moved to see the village now becoming a model cooperative farm. It is harvest time, and “the rice stacks rise mountain-high,” the farmers sing.
I visited the school in 1982 and found a large statue of Kim in the courtyard. A slogan on the school building proclaimed: “Long Live Sino-Korean Friendship.” Strangely the marble tablets on Kim’s statue were blank. I wonder whether the Chinese had erased them— perhaps during the Cultural Revolution of the 1960s and ’70s, when the Red Guards criticized Kim harshly, or during the subsequent movement led by Deng Xiaoping and other reformers to stamp out signs of the discredited personality cult built around China’s own Mao Zedong. Or could it have been the North Koreans who chose to leave the tablets blank—because it was not then considered politic, from the standpoint of Korean nationalism, to advertise that Kim had been educated in a foreign language? When he chose a Chinese school after leaving the Korean Huadian School, he did have a choice, as there were Korean schools in Jilin.56 Simply to continue his studies was an economic struggle for Kim.
Partly because it was such a big country, though, Big Brother could not indoctrinate and monitor the people there as thoroughly and efficiently as in North Korea. Indeed, life in China had already started to change. Mao Zedong was dead and, with him, his catastrophic Great Proletarian Cultural Revolution. Although I did not yet know it, the vitality I saw was to power the amazing changes that were about to come to China under Deng Xiaoping’s reform-minded rule. At the time, though, if I could credit what my eyes revealed in terms of economic development, the comparison between North Korea and China seemed much more startling than any that could be made between North and South Korea.47 That seemed a likely partial explanation, at least, of why the Pyongyang regime contemplated only minor deviations from past practice. Perhaps the North’s leaders themselves were lulled by the evidence of their successes, taking reports of the South’s advances less seriously than they might have if their own system had less to show for it.
Factory Girls: From Village to City in a Changing China by Leslie T. Chang
One day my father was surprised to hear his government handlers say that Deng Xiaoping, the Party official most committed to modernization and reform, would soon be deposed. His handlers were so worried about their own futures that they let this slip in front of my father. The following April, Deng was purged from the Party leadership for the third and last time. In our house in suburban New York, we listened over and over to the records my father had brought back from China. The sun in the east is rising, The People’s Republic is growing; Our supreme leader Mao Zedong Points our direction forward. Our lives are improving day by day, Our future shining in glorious splendor. My father returned to China for the second time in 1979. The United States and China had established diplomatic relations; Deng Xiaoping was firmly in charge, rehabilitating the millions of victims of the Cultural Revolution and launching economic reforms that would soon change the face of the country.
In 1878, the governor of Hong Kong suggested founding the Inferior Protection Bureau to protect Chinese women and children. The exhibit marched quickly through the Second World War and straight to Communist victory, a blurry photo of happy faces. Millions of people rejoiced at the liberation. In the next room, a title stretched across one wall: “A Vision Made Real: From Agricultural County to IT City.” A light board showed photos of the Communist Party meeting at which Deng Xiaoping set forth his program for economic reform and opening to the West. That was in 1978. From one room to the next, the exhibit had jumped thirty years, skipping over the founding of Communist China, the land reform and the execution of counterrevolutionaries, the attacks against “class enemies” and the establishment of the communes, the Great Leap Forward and the famine that killed at least twenty million people, and the decade of the Cultural Revolution.
The Cultural Revolution took everything the Chinese people had long held sacred and smashed it to pieces, like an antique vase hurled against the wall. It finished off the world of moral certainty and Confucian values into which my grandfather, and countless generations before him, had been born. And what took its place? For a while, radical fervor was enough. But when the Cultural Revolution finally ended and pragmatic leaders like Deng Xiaoping took over, the Chinese would find themselves living in a vacuum—stripped of all belief and blank as newborns, looking upon a ruined world they must somehow make anew. In 1968, Red Guards came to my grandfather’s tomb in Shenyang. They dug up the coffin and scattered his remains; they smashed the tomb and the grave marker. They beat the base of the stele until it cracked, but they left the stele itself intact.
air freight, Andrei Shleifer, battle of ideas, Bretton Woods, British Empire, business process, business process outsourcing, Carmen Reinhart, clean water, colonial rule, correlation does not imply causation, Daniel Kahneman / Amos Tversky, Deng Xiaoping, desegregation, discovery of the americas, Edward Glaeser, en.wikipedia.org, European colonialism, Francisco Pizarro, fundamental attribution error, germ theory of disease, greed is good, income per capita, invisible hand, James Watt: steam engine, Jane Jacobs, John Snow's cholera map, Joseph Schumpeter, Kenneth Rogoff, M-Pesa, microcredit, Monroe Doctrine, oil shock, place-making, Ponzi scheme, risk/return, road to serfdom, Silicon Valley, Steve Jobs, The Death and Life of Great American Cities, The Wealth of Nations by Adam Smith, Thomas L Friedman, urban planning, urban renewal, Washington Consensus, World Values Survey, young professional
It turns out that when the rights of local people are respected, new trades happen, new technologies happen, new public services happen. This challenges conventional wisdom about the “benevolent autocrats” behind many success stories. There is, for example, more evidence for attributing the rise of China as an economic superpower to the anonymous spread of the potato to China than to Chinese ruler Deng Xiaoping’s economic policies. Appreciation of this phenomenon allows us, finally, to have the biggest development debate of all, on conscious design of development by experts versus spontaneous solutions by individuals. Ironically, most of the economists involved in this recent research were not trying to solve the global poverty problem; they were just trying to better understand and explain the world.
It was partly due to the potato that China’s masses became what the comic strip Doonesbury once called “friendly but teeming.” According to a recent quantification of the potato’s impact, it could account for as much as a fourth of the substantial population growth in China and the rest of the Old World between 1700 and 1900.32 It is off balance that all the talk today about the huge size of China’s economy concentrates only on recent leaders like Deng Xiaoping; a lot more credit should go to Mr. Potato Head. TECHNOLOGY TRANSFER AND CREATIVE DESTRUCTION: THE GREENE STREET BLOCK The textile boom story on the Greene Street block already featured an important role for technological improvements in transportation. New Yorkers got access to the new technologies by importing products embodying them from Great Britain—such as the railroad and the steamboats—with further refinements by New York innovators.
The closing sentence of the report says that outcomes depend “on the wisdom, strength, and determination of the Chinese leadership.”3 The World Bank still seems to prefer the same authoritarian development approach to 2013 China that Western actors held for 1930s China (Chapter Three). AUTOCRATIC MIRACLES There is a strong tradition of folklore about benevolent autocrats who deliver development to their people. And indeed the list of autocrats who seem to have worked miracles goes on and on: Deng Xiaoping in China, Lee Kuan Yew in Singapore, Park Chung Hee in South Korea, Chiang Kai-shek in Taiwan, Augusto Pinochet in Chile, Suharto in Indonesia, and Mahathir Mohamad in Malaysia. The evidence that autocrats cause rapid growth seems overwhelming. We now must confront the evidence that there really are benevolent autocrats. Such evidence would favor conscious direction over spontaneous solutions.
Capitalism: Money, Morals and Markets by John Plender
Andrei Shleifer, asset-backed security, bank run, Berlin Wall, Big bang: deregulation of the City of London, Black Swan, bonus culture, Bretton Woods, business climate, Capital in the Twenty-First Century by Thomas Piketty, central bank independence, collapse of Lehman Brothers, collective bargaining, computer age, Corn Laws, corporate governance, credit crunch, Credit Default Swap, David Ricardo: comparative advantage, deindustrialization, Deng Xiaoping, discovery of the americas, diversification, Eugene Fama: efficient market hypothesis, eurozone crisis, failed state, Fall of the Berlin Wall, fiat currency, financial innovation, financial intermediation, Fractional reserve banking, full employment, Gordon Gekko, greed is good, Hyman Minsky, income inequality, inflation targeting, invention of the wheel, invisible hand, Isaac Newton, James Watt: steam engine, Johann Wolfgang von Goethe, John Maynard Keynes: Economic Possibilities for our Grandchildren, joint-stock company, Joseph Schumpeter, labour market flexibility, London Interbank Offered Rate, London Whale, Long Term Capital Management, manufacturing employment, Mark Zuckerberg, market bubble, market fundamentalism, means of production, Menlo Park, moral hazard, moveable type in China, Nick Leeson, Northern Rock, Occupy movement, offshore financial centre, paradox of thrift, Plutocrats, plutocrats, price stability, principal–agent problem, profit motive, quantitative easing, railway mania, regulatory arbitrage, Richard Thaler, rising living standards, risk-adjusted returns, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, shareholder value, short selling, Silicon Valley, South Sea Bubble, spice trade, Steve Jobs, technology bubble, The Chicago School, The Great Moderation, the map is not the territory, The Wealth of Nations by Adam Smith, Thorstein Veblen, time value of money, too big to fail, tulip mania, Upton Sinclair, We are the 99%, Wolfgang Streeck
The trail blazed first by Japan, then by the Asian Tiger economies such as South Korea, Taiwan, Hong Kong, Thailand and Singapore, has been followed by other emerging market countries across the globe. As they go through one industrial revolution after another, these countries’ growth rates have accelerated to levels far beyond anything achieved through industrialisation in Europe and North America – most spectacularly so in the case of China, where the Communist Chinese leader Deng Xiaoping signalled a milestone in capitalism’s slow march towards respectability by declaring that ‘to get rich is glorious’. China’s economy grew at 10 per cent per annum on average during the 1990s and 2000s, while the three decades to 2010 saw an eightfold increase in per capita gross domestic product. That rate of growth is not exceptional by recent Asian standards. What is exceptional is the breathtaking scale on which poverty has been reduced.
Yet, before writing off Weber it is important to remember that his concern here related to the very specific question of whether non-European traditions had religious and cultural characteristics that were capable of giving rise spontaneously to capitalist development in the way that Protestantism had done. The fact that non-Europeans subsequently borrowed the capitalist means of production from Europeans is not, in itself, a refutation of his thesis. The ultimate watershed on business’s long march from pariah status towards semi-respectability came when the Chinese leader Deng Xiaoping declared, after starting to open up China’s economy in 1978, that ‘to get rich is glorious’. Nuances may have been lost in the translation, but this embrace of capitalist values by a hardened veteran of the Communist struggle definitively put the big battalions behind the materialist side of the moral argument and appeared to draw down the curtain on the socialist backlash. It is no coincidence that Deng’s conversion broadly coincided with the ascendancy of the Chicago school of economics and the presidency of Ronald Reagan, who oversaw the conclusion of the Cold War.
The Japanese elite saw that rapid industrialisation offered the only escape from the threat of colonisation, after this crude naval attempt by the Americans to open up Japan to foreign trade. In a variation on the same theme, state revenue from manufacturing could also be put to use in financing wars. In mid-nineteenth-century Prussia, cash from substantial state-owned enterprises enabled Bismarck to escape accountability to a democratic parliament that he despised. In our own time, China’s decision under Deng Xiaoping to embrace a form of market capitalism from 1978 was driven as much or more by the desire to reassert China’s power and influence in the world – and no doubt by the Communist rulers’ urge to hang on to office – as by the wish to raise Chinese living standards. This connection between manufacturing capability and power seems to me to provide a genuine argument for concern about a decline in the manufacturing base, much as it does on the issues of energy and food security.
Losing Control: The Emerging Threats to Western Prosperity by Stephen D. King
Admiral Zheng, asset-backed security, barriers to entry, Berlin Wall, Bernie Madoff, Bretton Woods, BRICs, British Empire, capital controls, Celtic Tiger, central bank independence, collateralized debt obligation, corporate governance, credit crunch, crony capitalism, currency manipulation / currency intervention, currency peg, David Ricardo: comparative advantage, demographic dividend, demographic transition, Deng Xiaoping, Diane Coyle, Fall of the Berlin Wall, financial deregulation, financial innovation, Francis Fukuyama: the end of history, full employment, George Akerlof, German hyperinflation, Gini coefficient, hiring and firing, income inequality, income per capita, inflation targeting, invisible hand, Isaac Newton, knowledge economy, labour market flexibility, labour mobility, low skilled workers, market clearing, Martin Wolf, Mexican peso crisis / tequila crisis, Naomi Klein, new economy, Ponzi scheme, price mechanism, price stability, purchasing power parity, rent-seeking, reserve currency, rising living standards, Ronald Reagan, savings glut, Silicon Valley, Simon Kuznets, sovereign wealth fund, spice trade, statistical model, technology bubble, The Great Moderation, The Market for Lemons, The Wealth of Nations by Adam Smith, Thomas Malthus, trade route, transaction costs, Washington Consensus, women in the workforce, working-age population, Y2K, Yom Kippur War
These relationships are now rapidly being rebuilt. Changing patterns of trade and investment opportunities around the world provide compelling evidence of this shift. Yet many people are in denial. They still tend to think in the old domestic mindsets. They are slaves to national economic data that, for the most part, include only the most recent domestic economic developments. They are slaves to a world that, in effect, crumbled as Deng Xiaoping opened up China to the global economy at the beginning of the 1980s and as the Berlin Wall collapsed in 1989. During the 1980s, as cumbersome mainframe computers were replaced by PCs, economists began to calibrate statistically the ways in which economies operated. With reams of annual, quarterly, monthly, daily and even intra-day data at their disposal and with significant advances in computing power, they were able to build economic models linked to past reality (and, as the models became more complex, to ‘expected’ future reality).
And, even if multinationals only focused on the West’s best educational establishments, they’d happily find that the best universities, in turn, cast their nets further and further afield to grab the world’s brightest young people.18 Meanwhile, entrepreneurs can come from all over the world. There’s no reason why, for example, software development should reside only in Silicon Valley. Nowadays, India has its own technology industry. The economic effects of this ‘opening up’ are extraordinary. Since the 1980s, for example, Chinese incomes have risen at a faster rate than those in Europe for the first time in six centuries, thanks to Deng Xiaoping’s willingness to encourage China to engage with the rest of the world. China’s share of global output has consequently soared (from a low of 5 per cent in 1950 to 15 per cent by the beginning of the twenty-first century).19 So has its share of world trade. Chairman Mao famously boasted in the 1950s about China’s Great Leap Forward. As it turned out, he was forty or fifty years too early. Similar stories can be found all over what is now called the emerging world.
The resources used per passenger mile are less than 30 per cent of those used in the Comet. This vast improvement in productivity is, of course, good news both for the passengers and the environment. The calculation, however, reflects only technology improvement. In a world of scarce resources, what matters is not so much the improvement in technology but on how many occasions that technology is replicated. Before the arrival of Deng Xiaoping and the collapse of the Berlin Wall, technology replication was limited. Too many countries were shut off from new technologies and, even where they had access, they channelled those technologies into military, rather than civilian, ventures. No longer is this the case. More and more countries are using technology replication to improve the lives of their citizens. It may be that the Airbus A380 is much more fuel-efficient than the Comet, but, with a sevenfold rise in passenger numbers over the last forty years, greater efficiency is still consistent with higher resource utilization.
Reinventing the Bazaar: A Natural History of Markets by John McMillan
accounting loophole / creative accounting, Albert Einstein, Andrei Shleifer, Anton Chekhov, Asian financial crisis, congestion charging, corporate governance, crony capitalism, Dava Sobel, Deng Xiaoping, experimental economics, experimental subject, fear of failure, first-price auction, frictionless, frictionless market, George Akerlof, George Gilder, global village, Hernando de Soto, I think there is a world market for maybe five computers, income inequality, income per capita, informal economy, invisible hand, Isaac Newton, job-hopping, John Harrison: Longitude, John von Neumann, land reform, lone genius, manufacturing employment, market clearing, market design, market friction, market microstructure, means of production, Network effects, new economy, offshore financial centre, pez dispenser, pre–internet, price mechanism, profit maximization, profit motive, proxy bid, purchasing power parity, Ronald Coase, Ronald Reagan, sealed-bid auction, second-price auction, Silicon Valley, spectrum auction, Stewart Brand, The Market for Lemons, The Nature of the Firm, The Wealth of Nations by Adam Smith, trade liberalization, transaction costs, War on Poverty, Xiaogang Anhui farmers, yield management
Then a high-level Beijing official traveled to Xiaogang and neighboring villages to study the effects of individual farming. His report, which concluded that individual farming increased output and improved living standards, became influential when it was circulated among the national leaders. At a Communist Party conference in 1982, four years after the Xiaogang villagers’ meeting, China’s paramount leader Deng Xiaoping endorsed the reforms. In 1983 the central government formally proclaimed individual farming to be consistent with the socialist economy and therefore permissible. By 1984, just six years after Xiaogang started the movement, there were no communes left. The communes had relied on appeals to work for the common good more than on individual incentives. Attempts had been made to create some personal incentives, but they were mostly ineffectual.
“The enthusiasm of the farmers was frustrated,” said Yan Junchang, a Xiaogang village leader. “No matter how hard I rang the bell or blew the whistle, I couldn’t get anyone to go into the fields.” The missing incentives translated into low output. Agricultural productivity was actually lower in 1978 than it had been in 1949, when the communists took over. Some in the West used to see the communes in a romantic light. At a White House dinner party held in honor of Deng Xiaoping during his visit to the United States in 1979, just after the reforms had begun, he was seated next to Shirley MacLaine. The movie star took the opportunity to describe her trip to China in 1973, during the Cultural Revolution, that time of national paranoia when many who were out of favor with Mao Zedung’s government were forcibly removed from the cities and compelled to work in communes. “Learn from the peasants,” these displaced urbanites were ordered.
The political situation in China through the 1980s and 1990s was stable but not impregnable. While the communist government faced no challenge, it had lost whatever legitimacy it might once have had, reform-era China being communist only in name. Its legitimacy as the government, and its ability to preempt any future political opposition, rested on its delivering economic growth. High officials in Deng Xiaoping’s government understood enough about economics to recognize that growth requires markets and markets require assured property rights. The Communist Party had retained its highly disciplined organization and so was able to prevent self-seeking behavior by low-level officials. The state motivated local officials to maintain agricultural output growth by rewarding them with bonus payments and promotion, and by firing them if output targets were not met.
The Post-American World: Release 2.0 by Fareed Zakaria
affirmative action, agricultural Revolution, airport security, anti-communist, Asian financial crisis, battle of ideas, Berlin Wall, Bretton Woods, BRICs, British Empire, call centre, capital controls, central bank independence, centre right, collapse of Lehman Brothers, conceptual framework, Credit Default Swap, currency manipulation / currency intervention, delayed gratification, Deng Xiaoping, double entry bookkeeping, failed state, Fall of the Berlin Wall, financial innovation, global reserve currency, global supply chain, illegal immigration, interest rate derivative, knowledge economy, Mahatma Gandhi, Martin Wolf, mutually assured destruction, new economy, oil shock, open economy, out of africa, postindustrial economy, purchasing power parity, race to the bottom, reserve currency, Ronald Reagan, Silicon Valley, Silicon Valley startup, South China Sea, Steven Pinker, The Great Moderation, Thomas L Friedman, Thomas Malthus, trade route, Washington Consensus, working-age population, young professional
That year, the Soviet Union invaded Afghanistan, digging its grave as a superpower. And that year, China launched its economic reforms. The signal for the latter event came in December 1978 at an unlikely gathering: the Third Plenum of the Eleventh Central Committee of the Communist Party of China, typically an occasion for empty rhetoric and stale ideology. Before the formal meeting, at a working-group session, the newly empowered party boss, Deng Xiaoping, gave a speech that turned out to be the most important in modern Chinese history. He urged that the regime focus on economic development and let facts—not ideology—guide its path. “It doesn’t matter if it is a black cat or a white cat,” Deng said. “As long as it can catch mice, it’s a good cat.” Since then, China has done just that, pursuing a path of modernization that is ruthlessly pragmatic.
In a delicately phrased set of warnings delivered in China in 2005, Lee Kuan Yew described his concerns not about China’s current leadership, or even the next generation, but about the generation after that, which will have been born in a time of stability, prosperity, and rising Chinese influence. “China’s youth must be made aware of the need to reassure the world that China’s rise will not turn out to be a disruptive force,” he said in a speech at Fudan University. Lee implied that what has kept Chinese leaders humble since Deng Xiao-ping is the bitter memory of Mao’s mistakes—fomenting revolutions abroad, the Great Leap Forward, and the Cultural Revolution, which together resulted in the deaths of about forty million Chinese. “It is vital,” Lee went on, “that the younger generation of Chinese who have only lived through a period of peace and growth and have no experience of China’s tumultuous past are made aware of the mistakes China made as a result of hubris and excesses in ideology.”
As one official there said to me, “We are clear-eyed. China has occupied Vietnam for a thousand years. It has invaded us thirteen times since then.” But he also acknowledged, “it is a huge presence, our biggest exporter”—which means that their governments and peoples must approach the relationship pragmatically. Bookstores I visited in Vietnam prominently displayed the collected speeches of the Chinese leaders Deng Xiaoping, Jiang Zemin, and Hu Jintao. Before arriving in Vietnam, I had been in Tokyo, during Chinese Prime Minister Wen Jiabao’s 2007 state visit, and I heard a similar refrain. Wen finessed the many points of tension between the two countries and instead accentuated the positive—their booming economic ties. This détente, however, is fragile and points to the principal danger in Beijing’s foreign policy—its effort to co-opt nationalism for its own purposes.
Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism by George A. Akerlof, Robert J. Shiller
affirmative action, Andrei Shleifer, asset-backed security, bank run, banking crisis, collateralized debt obligation, conceptual framework, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, Daniel Kahneman / Amos Tversky, Deng Xiaoping, Donald Trump, Edward Glaeser, en.wikipedia.org, experimental subject, financial innovation, full employment, George Akerlof, housing crisis, Hyman Minsky, income per capita, inflation targeting, invisible hand, Isaac Newton, Jane Jacobs, Jean Tirole, job satisfaction, Joseph Schumpeter, Long Term Capital Management, loss aversion, market bubble, market clearing, mental accounting, Mikhail Gorbachev, money: store of value / unit of account / medium of exchange, moral hazard, mortgage debt, new economy, New Urbanism, Plutocrats, plutocrats, price stability, profit maximization, purchasing power parity, random walk, Richard Thaler, Robert Shiller, Robert Shiller, Ronald Reagan, South Sea Bubble, The Chicago School, The Death and Life of Great American Cities, The Wealth of Nations by Adam Smith, too big to fail, transaction costs, tulip mania, working-age population, Y2K, Yom Kippur War
The stories people tell are also stories about how the economy behaves. Indeed, it is in this last category, stories, where Animal Spirits itself fits in, because the goal of the book is to give its own story about how the economy behaves. Its intent is to tell a more accurate story than the dominant one of the past thirty years or so, ever since the free market revolution that swept the world, under the leadership of Margaret Thatcher, Ronald Reagan, Deng Xiaoping, Manmohan Singh, Mikhail Gorbachev, Brian Mulroney, Bertie Ahern, Carlos Salinas de Gotari, Fernando Henrique Cardoso, Carlos Menem, and others. These stories, embellished by oft told vignettes of newly successful people, and in their mostly justified enthusiasm for expanded free markets, led to too much economic tolerance. Underlying this revolution is the powerful principle of the “invisible hand”—that market forces should be the fundamental framework of resource allocation.
A 1990 poster shows a smiling Lei Feng, a young, handsome, traditional hero, writing the word save on a money box. In the 1990s big red banners were hung in the streets: “Saving is glorious.” These campaigns, which made saving everyone’s patriotic duty, set the stage for today’s high saving rates. The modern economic history of China begins in 1978, two years after the death of Chairman Mao Zedong. In a celebrated speech at the third plenum of the Eleventh Party Congress, Vice Premier Deng Xiaoping made it clear that the government would support private investment in China. The Chinese economic miracle had begun. Some small Chinese villages, such as Huaxi and Liutuan, made spectacularly successful investments in village enterprises starting in the late 1970s. Renowned for their success, they became models throughout China. In these villages saving, in the form of labor or money contributed to the village enterprise, was practically demanded by the village elders.
We old people don’t really like to buy fancy stuff and it’s the young generation like you who want fancy cars and fancy clothes. We are still influenced by the old Lei Feng example of frugality and struggle against harsh conditions.” Andy asked him if he had made any appeal to patriotism or collectivism to get the villagers to contribute to the enterprise, and the mayor answered: “Yes indeed. I basically used three kinds of arguments. First, the country has been changing. Deng Xiaoping has opened the country up and what we would be doing would change the country and make it a better place. Secondly, I told them that the village business is good for the village itself and was good for everybody. Thirdly, I told them that I managed this business secretly for ten years and I knew how it worked, so my managerial skills could be trusted.” “Did they trust you?” “They did. I was very grateful that they were trusting.
Mad Mobs and Englishmen? Myths and Realities of the 2011 Riots by Steve Reicher, Cliff Stott
A breath of madness seemed to have passed over this mob. If we move closer to the present day we find a Romanian Communist Party Official describing the crowds challenging the rule of President Ceausescu as ‘hooligans, fascists, and corrupt and retrograde elements ... They also attracted children into these actions. All were drunk, including the children and the women.’47 Equally, the Chinese Communist leader Deng Xiaoping characterized the events of Tiananmen Square as ‘a planned conspiracy’. Those taking part were ‘an extremely small number of people with ulterior motives taking advantage of the young students’ feelings ... to spread all kinds of rumours to poison and confuse people’s minds.’48 Finally, moving right up to 2011, we can look to the Arab Spring. In Tunisia, the country that started things off, the former Defence Minister Kamel Morjane complained in his resignation speech that ‘the Government is working hard from within to portray the protestors as mindless terrorists destroying their country and refusing any peaceful discussion.’49 Not long afterwards unrest spread to Egypt, where President Mubarak acknowledged that at first protestors were noble and peaceful.
In one of those cities alone, Detroit, 43 people died, 467 were injured, there were over 7,000 arrests whilst over 2,000 buildings were destroyed.81 Yet, for all this, evidence moved Fogelson to write that restraint and selectivity were among the most crucial features of the riots.82 Agitator Arguments This final approach serves two functions. On the one hand, the notion that outsiders – especially foreign outsiders – control crowds allows authorities to declare that riots are not the work of ‘our’ people but rather work against our people. From Deng Xiaoping and his ‘planned conspiracy’ to Ceausescu and his ‘small number of people with ulterior motives’ and the Daily Express’s ‘Moscow trained hit squads’, the idea is that anyone who condones riots is a traitor. On the other hand, the agitator myth implicitly recognizes that riots are more organized and less chaotic than is often admitted. This theory explains the efficiency of mobs. After all, if mobs are mindless, surely someone must be telling them what to do?
McMafia: A Journey Through the Global Criminal Underworld by Misha Glenny
anti-communist, Anton Chekhov, Berlin Wall, blood diamonds, BRICs, colonial rule, crony capitalism, Deng Xiaoping, Doha Development Round, failed state, Fall of the Berlin Wall, financial deregulation, Firefox, forensic accounting, friendly fire, glass ceiling, illegal immigration, joint-stock company, market bubble, Mikhail Gorbachev, Nick Leeson, offshore financial centre, place-making, rising living standards, Ronald Reagan, Skype, special economic zone, Stephen Hawking, trade liberalization, trade route, Transnistria, unemployed young men, upwardly mobile
Its dissolution followed no obvious pattern, occurring instead as a series of seemingly disparate events: the spectacular rise of the Japanese car industry; Communist Hungary’s clandestine approach to the International Monetary Fund to explore a possible application for membership; the stagnation of India’s economy; President F. W. de Clerk’s first discreet contacts with the imprisoned Nelson Mandela; the advent of Deng Xiaoping’s reforms in China; Margaret Thatcher’s decisive confrontation with Britain’s trades union movement. Individually, these and other events seemed to reflect the everyday ups and downs of politics; at most they were adjustments to the world order. In fact, powerful currents below the surface had provoked a number of economic crises and opportunities, especially outside the great citadels of power in Western Europe and the United States, that were to have profound consequences for the emergence of what we now call globalization.
Tens of millions didn’t make it or were so damaged by the state-inflicted violence that their lives were barely worth living. This was especially so in Chen’s poor community in Fujian. Mao Zedong suspected this backward province of harboring all manner of class traitors and counterrevolutionaries, and so for two decades he neglected the region as a punishment for suspected thought crimes and recidivist bourgeois habits. Perhaps it was to compensate for Mao’s vindictive behavior that China’s great reformer, Deng Xiaoping, chose the city of Xiamen in southern Fujian as one of the first special economic zones (SEZs) in the early 1980s to inspire local entrepreneurs in thawing out the economy that had been frozen solid by the Maoist ice age. Agog at the success of the Xiamen experiment, it wasn’t long before Fuzhou’s local bosses opened up the provincial capital as well. Deng did not confer the honor on Fujian by chance—80 percent of Taiwan’s people trace their roots back to Fujian.
A few weeks before this, the government in Beijing had relaxed restrictions on foreign journalists, allowing them to travel anywhere in the country without prior permission. Nonetheless, within a matter of hours of his arrival in Zhushan, Reynolds was detained, interrogated, and then expelled from the town. Anything is possible in the Chinese strategy of creating jobs. “It doesn’t matter whether the cat is black or white,” mused Deng Xiaoping when he was explaining the need to introduce economic reforms in the 1980s. “It only matters if it catches mice.” It doesn’t matter how China runs the economy, as long as it makes money. Deng realized that for the Chinese to make money, the traditions of central economic planning had to be dumped, and so for twenty-five years (and especially since the early 1990s) the government has afforded the provinces considerable autonomy in their economic policy.
The end of history and the last man by Francis Fukuyama
affirmative action, anti-communist, Ayatollah Khomeini, Berlin Wall, Bonfire of the Vanities, centre right, cuban missile crisis, deindustrialization, Deng Xiaoping, European colonialism, F. W. de Klerk, Fall of the Berlin Wall, Francis Fukuyama: the end of history, full employment, Gini coefficient, Hernando de Soto, income inequality, Isaac Newton, Joseph Schumpeter, kremlinology, labour mobility, land reform, Mikhail Gorbachev, nuclear winter, open economy, post-industrial society, postindustrial economy, RAND corporation, Ronald Reagan, Socratic dialogue, strikebreaker, the scientific method, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions
Totalitarianism was not sufficient to kill the democratic idea in these societies, but its legacy constrained their ability to democra tize subsequently. 16 Totalitarianism failed as well in the People's Republic o f China and the countries of Eastern Europe. Central g o v e r n m e n t control over the Chinese economy even at the height of the PRC's "Stalin ist" period had n e v e r been as complete as in the Soviet Union, with perhaps a q u a r t e r of the economy n e v e r having come u n d e r the purview of the national plan. W h e n Deng Xiaoping set the country on the course of economic r e f o r m in 1 9 7 8 , many Chinese still had a vivid m e m o r y of markets and e n t r e p r e n e u r s h i p f r o m the 1950s, so it is perhaps not surprising that they w e r e able to take advantage of economic liberalization in the following decade. While continuing to pay lip service to Mao and MarxismLeninism, Deng effectively restored private p r o p e r t y in the coun tryside and opened u p the country to the global capitalist economy.
T h e total failure of centrally planned economies in coun- 96 THE OLD AGE OF MANKIND tries like the Soviet Union and China to move beyond a 1 9 5 0 s level o f industrialization u n d e r c u t their ability to play important roles on the international stage, o r even to safeguard their own national security. Mao's persecution of competent technocrats d u r i n g the Cultural Revolution p r o v e d to be an economic disaster of the first o r d e r that set China back a generation. O n e of Deng Xiaoping's first acts when coming to power in the m i d - 1 9 7 0 s was t h e r e f o r e to restore prestige and dignity to the technical intelli gentsia and to protect them f r o m the vagaries of ideological pol itics, choosing the path o f co-optation adopted by the Soviets a generation earlier. But the efforts to co-opt technological elites in the service o f ideology eventually w o r k e d the other way as well: that elite, given a relatively greater degree of f r e e d o m to think and study the outside w o r l d , became familiar with and began to adopt many of the ideas c u r r e n t in that world.
Nonethe less, the unfolding of technologically driven economic modern ization creates strong incentives for developed countries to accept the basic terms of the universal capitalist economic culture, by Accumulation without End 97 permitting a substantial degree of economic competition and letting prices be determined by market mechanisms. No o t h e r path toward full economic modernity has been p r o v e n to be viable. 9 The Victory of the VCR Not a single country in the world, no matter what its political system, has ever modernized with a closed-door policy. —Deng Xiaoping, in a 1982 1 speech T h e fact that capitalism was in some sense inevitable for advanced countries, and that Marxist-Leninist socialism was a serious obsta cle to the creation of wealth and a m o d e r n technological civiliza tion, may have seemed like commonplace knowledge by the last decade of the twentieth century. W h a t was less obvious were the relative merits o f socialism versus capitalism f o r less developed countries that had not yet reached the level of industrialization r e p r e s e n t e d by E u r o p e in the 1 9 5 0 s .
The Age of Turbulence: Adventures in a New World (Hardback) - Common by Alan Greenspan
air freight, airline deregulation, Albert Einstein, asset-backed security, bank run, Berlin Wall, Bretton Woods, business process, call centre, capital controls, central bank independence, collateralized debt obligation, collective bargaining, conceptual framework, Corn Laws, corporate governance, correlation coefficient, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, cuban missile crisis, currency peg, Deng Xiaoping, Dissolution of the Soviet Union, Doha Development Round, double entry bookkeeping, equity premium, everywhere but in the productivity statistics, Fall of the Berlin Wall, fiat currency, financial innovation, financial intermediation, full employment, Gini coefficient, Hernando de Soto, income inequality, income per capita, invisible hand, Joseph Schumpeter, labor-force participation, labour market flexibility, laissez-faire capitalism, land reform, Long Term Capital Management, Mahatma Gandhi, manufacturing employment, market bubble, means of production, Mikhail Gorbachev, moral hazard, mortgage debt, new economy, North Sea oil, oil shock, open economy, pets.com, Potemkin village, price mechanism, price stability, Productivity paradox, profit maximization, purchasing power parity, random walk, reserve currency, risk tolerance, Ronald Reagan, shareholder value, short selling, Silicon Valley, special economic zone, the payments system, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, total factor productivity, trade liberalization, trade route, transaction costs, transcontinental railway, urban renewal, working-age population, Y2K
More ebooks visit: http://www.ccebook.cn ccebook-orginal english ebooks This file was collected by ccebook.cn form the internet, the author keeps the copyright. THE CHOICES THAT A W A I T C H I N A I had grown quite fond of Zhu and was saddened to realize that we were unlikely to meet again. We'd become friends when he was vice premier and head of China's central bank, and I had followed his career closely He was the intellectual heir of Deng Xiaoping, the great economic reformer who had brought China from the age of the bicycle to the age of the motor vehicle and all that that implies. Unlike Deng, who had a broad political base, Zhu was a technician; his influence, as best I can judge, rested on deep support from Jiang Zemin, China's president from 1993 to 2003 and Party leader from 1989 to 2002. It was Zhu who had brought to realization many of the sweeping institutional reforms that Deng had initiated.
Marx's economic model in practice—in the USSR and elsewhere—could not produce wealth or justice, as is now generally recognized. The rationale for collective ownership failed. Socialists in the West, adjusting to the failure of Marxist economics, have redefined socialism to no longer require that all the means of production be owned by the state. Some simply advocate government regulation rather than state ownership to foster societal well-being. Deng Xiaoping, confronting Marx's fall from favor, bypassed Communist ideology and rested Party legitimacy on its ability to meet the material needs of over a billion people. He set in motion a process that led to an unprecedented near-eightfold increase in real per capita GDP, a fall in infant mortality, and greater life expectancy. But as many in the Party leadership 300 More ebooks visit: http://www.ccebook.cn ccebook-orginal english ebooks This file was collected by ccebook.cn form the internet, the author keeps the copyright.
I cannot believe that the Party is unaware 301 More ebooks visit: http://www.ccebook.cn ccebook-orginal english ebooks This file was collected by ccebook.cn form the internet, the author keeps the copyright. THE AGE OF T U R B U L E N C E that affluence and recent education initiatives are moving China toward a far less authoritarian regime. Today, President Hu appears to wield less political power than did Jiang Zemin, and he less than Deng Xiaoping. And Deng far less than Mao. At the end of this road of ever-lessening power is the democratic welfare state of Western Europe. Along that way are the many hurdles that still separate China from "developed economy" status, Deng's avowed goal. Many of the huge challenges China's reformers face are well known: the reactionary old guard; the vast rural population that is to date barely sharing in the boom and is with modest exceptions forbidden to migrate to cities; the huge remaining chunks of the Soviet-style command economy, including still-bloated, inefficient state-owned enterprises; the largely struggling banking system that serves those enterprises; the lack of modern financial and accounting expertise; corruption, the almost necessary by-product of any pyramidal power structure based on discretion; and finally, lack of political freedom, which may not be needed for markets to function in the short run, but is an important safety valve for public distress about injustice and inequity.
Ayatollah Khomeini, Berlin Wall, British Empire, call centre, colonial rule, Columbine, cuban missile crisis, dematerialisation, Deng Xiaoping, Dissolution of the Soviet Union, Donald Trump, Frank Gehry, glass ceiling, Guggenheim Bilbao, haute couture, haute cuisine, megastructure, Mikhail Gorbachev, new economy, New Urbanism, oil shock, Ronald Reagan, Socratic dialogue, urban planning, urban renewal, V2 rocket, Victor Gruen
It will be a colossus that takes the form of two leaning towers, seventy floors high, that prop each other up with links at top and bottom to form a gigantic Möbius strip, containing everything from studios to offices. An adjacent hotel block takes the form of an open chest of drawers. This is not just another tower; it has ambitions every bit as explicit as the Great Hall of the People to represent China’s place in the world, and its newfound might. In the years since Deng Xiaoping took the first steps toward unleashing China’s economic potential, Beijing has built a vast number of new buildings, many of them designed by foreign architects with international reputations. But with the exception of the Fragrant Hills Hotel, I. M. Pei’s fruitless attempt to show the land of his birth that modernity did not have to mean the destruction of Beijing’s extraordinary urban fabric, few have yet showed any real architectural ambition.
In stage two, useful for bringing troublesome discussions to a positive conclusion or indicating a particular degree of warmth, all rise and move to the second sofa in front of the fire. The President comes from behind his desk to join the visitors and sit side by side with them, in steps as hallowed by custom as a rain-making dance. This is no doubt exactly what happened when, as Carter puts it, ‘Deng Xiaoping came to Washington to visit with me’. What does it matter if nobody remembers a word of what was said? What does it matter if you have inadvertently left the impression that America would sit on its hands in the event of a Chinese invasion of Taiwan, when you have gone through a ceremony like that? In Reagan’s day, the layout was more static and offered less in the way of ritual. A pair of three-seater sofas were positioned in the middle of the room on the long axis, allowing the President a direct view of the fireplace from his desk and to meet visitors that included Mother Teresa, Gorbachev, Mrs Thatcher and a selection of Beirut hostages.
There is a giant plywood model of the dome of Congress, and a mock-up of the White House. His time in China is signalled by a pagoda that looks much like the kind of thing you might find in an upmarket but somewhat old-fashioned Chinese restaurant. Nixon’s library does something similar, not surprising since both were designed by the same firm. There is the bicycle Bush was given when he was America’s Ambassador in China, but which shows no signs of ever having been used. Deng Xiaoping is portrayed in tapestry form meeting Bush in 1985. The moment was captured by two artists from the Shanghai Red Star Tapestry Factory, who spent fifty-three days weaving it, kindred spirits of Ms Goodnight and her galloping horses outside. Bush’s time as Ambassador to the UN is encapsulated, daringly in the context of the limited world view of the Texas backwoods, by a row of UN flags. There are lots of photographs of Bush in dinner jackets, though none that record the evening in Tokyo when he started throwing up over his hosts.
Capitalism 4.0: The Birth of a New Economy in the Aftermath of Crisis by Anatole Kaletsky
bank run, banking crisis, Benoit Mandelbrot, Berlin Wall, Black Swan, bonus culture, Bretton Woods, BRICs, Carmen Reinhart, cognitive dissonance, collapse of Lehman Brothers, Corn Laws, correlation does not imply causation, credit crunch, currency manipulation / currency intervention, David Ricardo: comparative advantage, deglobalization, Deng Xiaoping, Edward Glaeser, Eugene Fama: efficient market hypothesis, eurozone crisis, experimental economics, F. W. de Klerk, failed state, Fall of the Berlin Wall, financial deregulation, financial innovation, Financial Instability Hypothesis, floating exchange rates, full employment, George Akerlof, global rebalancing, Hyman Minsky, income inequality, invisible hand, Isaac Newton, Joseph Schumpeter, Kenneth Rogoff, laissez-faire capitalism, Long Term Capital Management, mandelbrot fractal, market design, market fundamentalism, Martin Wolf, moral hazard, mortgage debt, new economy, Northern Rock, offshore financial centre, oil shock, paradox of thrift, peak oil, pets.com, Ponzi scheme, post-industrial society, price stability, profit maximization, profit motive, quantitative easing, Ralph Waldo Emerson, random walk, rent-seeking, reserve currency, rising living standards, Robert Shiller, Robert Shiller, Ronald Reagan, shareholder value, short selling, South Sea Bubble, sovereign wealth fund, special drawing rights, statistical model, The Chicago School, The Great Moderation, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, too big to fail, Washington Consensus
Among the world’s biggest economies, China alone had emerged from the crisis more confident and powerful than before. In this environment, to believe in the ultimate success of a new form of democratic capitalism demanded a leap of faith. And indeed, nothing is preordained in history, nor anything immutable in economics. In the past forty years, dozens of relatively small events could have changed the course of history and transformed economic conditions the world over. Imagine if Deng Xiaoping had died in the Cultural Revolution alongside his mentor Liu Shaoqi. Or if Gorbachev had been passed over for the Soviet leadership. Or if John Hinckley’s bullet had been aimed an inch higher at Ronald Reagan’s chest. Or if Argentina had not invaded the Falklands, saving the government of Margaret Thatcher. Or if the hanging chads in Florida had fallen for Al Gore instead of George W. Bush. Any of these events would certainly have transformed the pace of change, but would they have moved history in a different direction?
As revealed by the epigraphs to this chapter, the aftershocks from this sudden and unexpected implosion spread far beyond the Soviet bloc—to India, China, South Africa, and every country and political movement that had been beguiled by the deceptive logic of socialist delusions. Two, Asia, and especially China, emerged as a significant part of the global economy. In theory, China’s gradual transformation into one of the most fiercely competitive and profit-oriented systems of private enterprise the world had ever seen began with Deng Xiaoping’s introduction of “Socialism with Chinese characteristics” in 1978.7 However, these reforms only began to deliver impressive results about a decade later, in the late 1980s, turning China into a serious commercial power, transforming the global trading system, and shifting the center of gravity of the world economy toward Asia. Three, a technological revolution accelerated in the late 1980s and did for human memory and intelligence what the steam engine and electricity did in the nineteenth century for muscle power.
The phrase dismal science was first used by the conservative historian Thomas Carlyle in a diatribe against what Carlyle described as John Stuart Mill’s dismal argument that landowners should be expected to pay normal wages on their West Indian plantations—and that if plantation economics did not allow such wages to be paid, the owners should be put out of business rather than allowed to enslave their fellow human beings. Yet the dismal adjective has stuck firmly to economics despite its paradoxical origin. Peter Groenewegen, “Thomas Carlyle, ‘The Dismal Science,’ and the Contemporary Political Economy of Slavery,” History of Economics Review 34 (Summer 2001): 74-94. 6 Galbraith quoted in The Observer, London, April 3, 1977. 7 Deng Xiaoping, “Build Socialism with Chinese Characteristics,” Speech to the Council of Sino-Japanese Non-Governmental Persons (June 30, 1984), printed in William De Bary and Richard Lufrano, eds., Sources of Chinese Tradition: From 1600 Through the Twentieth Century, vol. 2, 507-510. 8 The key events in computer technology were the introduction of the first standardized IBM personal computers and Intel microprocessors in 1983, the addition of a Graphical User Interface (GUI) to the Apple Macintosh in 1984, the Windows GUI by Microsoft in 1986, and the release in 1990 of Windows 3.0, a much improved GUI developed for the IBM 386 computer. 9 See, for example, Edward Glaeser and Janet Kohlhase, “Cities, Regions and the Decline of Transport Costs,” and Nils-Gustav Lundgren, “Bulk Trade and Maritime Transport Costs: The Evolution of Global Markets,” Resources Policy 22:1-2 (March-June 1996): 5-32. 10 Jeffrey Frankel, “The Japanese Cost of Finance: A Survey,” Financial Management 20:1 (Spring 1991).
Bernie Madoff, carbon footprint, cleantech, collateralized debt obligation, correlation does not imply causation, Credit Default Swap, credit default swaps / collateralized debt obligations, decarbonisation, Deng Xiaoping, en.wikipedia.org, energy security, energy transition, flex fuel, greed is good, Hernando de Soto, hydraulic fracturing, hydrogen economy, Indoor air pollution, Isaac Newton, James Watt: steam engine, Menlo Park, new economy, offshore financial centre, oil shale / tar sands, oil shock, peak oil, Ponzi scheme, purchasing power parity, RAND corporation, Ronald Reagan, Silicon Valley, smart grid, Stewart Brand, Thomas L Friedman, uranium enrichment, Whole Earth Catalog
Imports by Country of Origin,” http://tonto.eia.doe.gov/dnav/pet/pet_move_impcus_a2_nus_ep00_im0_mbblpd_a.htm. 6 BP Statistical Review of World Energy 2009, http://www.bp.com/liveassets/bp_internet/globalbp/globalbp_uk_english/reports_and_publications/statistical_energy_review_2008/STAGING/local_assets/2009_downloads/renewables_section_2009.pdf. 7 For the first ten months of 2009, OPEC production was about 28 million barrels per day. Global consumption is about 84 million barrels per day. See MEES.com, “OPEC Crude Oil Production,” n.d., http://www.mees.com/Energy_Tables/crude-oil.htm. 8 Wikipedia, “Deng Xiaoping,” http://en.wikipedia.org/wiki/Deng_Xiaoping. For Deng quote, see Farago, “Editorial: The Truth About Rare Earths and Hybrids.” 9 “Molycorp Minerals: Global Outlook,” n.d., http://www.molycorp.com/globaloutlook.asp. 10 Farago, “Editorial: The Truth About Rare Earths and Hybrids.” 11 Leo Lewis, “Crunch Looms for Green Technology as China Tightens Grip on Rare-Earth Metals,” Times (London), May 28, 2009, http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article6374603.ece. 12 Steve Gorman, “As Hybrid Cars Gobble Rare Metals, Shortage Looms,” Reuters, September 2, 2009, http://www.reuters.com/article/GCA-BusinessofGreen/idUSTRE57U02B20090902; Keith Bradsher, “China Tightens Grip on Rare Minerals,” New York Times, September 1, 2009, http://www.nytimes.com/2009/09/01/business/global/01minerals.html?
These same neoconservatives hate OPEC—but OPEC only controls about one-third of world oil production.7 Now compare the diffused global oil market with the constricted market for the lanthanides—lanthanum, cerium, praseodymium, dysprosium, neodymium, and the others. China controls—depending on whose numbers you believe—between 95 and 100 percent of the global market in those elements. The fact that China sits atop such favorable geology for mining the lanthanides is pure luck. But the Chinese are aiming to make the most of that luck. Deng Xiaoping, the former Communist Party boss, once said, “There is oil in the Middle East. There are rare earths in China. We must take full advantage of this resource.”8 China is doing just that. It has about 1,000 Ph.D.-level scientists working on technologies related to the mining and separation of rare earth elements as well as on ways to turn those elements into salable products.9 At the same time that China is increasing its knowledge base on rare earths, it is cutting its exports of those same materials.
Cuban, Mark Cubic Mile of Oil, A (Crane, Kinderman, and Malhotra) Curtis, John Curtiss, Peter S. Dams, dismantling of Danish Center for Political Studies (CEPOS) Danish Energy Agency Darley, Julian Darwin, Charles de Merode, Emmanuel De Nysschen, Johan de Soto, Hernando Death rates, energy poverty and Decarbonization trend Deffeyes, Kenneth deForest Ralph, H. Deforestation DeGette, Diana Democrats view of, toward nuclear power See also names of specific politicians Deng Xiaoping Denmark and carbon capture and sequestration carbon dioxide emissions of (fig.) and carbon intensity(fig.) coal consumption in (fig.) electricity rates in(fig.) energy consumption in (fig.) and energy intensity(fig.) myths involving and natural gas(fig.) and oil(fig.) and oil consumption and wind power (fig.) Desalinization, need for Desert Protective Council DeSoto Parish Developing countries and carbon dioxide emissions desire for electricity in See also specific countries Diesel demand, increase in Diesel engines(photo) (fig.)
The River at the Centre of the World by Simon Winchester
It did not pass unnoticed that the projected date for the highly symbolic closing of the Yangtze's flow – a central part of a dam-building project, when the waters are passed around the dam site in diversion tunnels – was due to take place in 1997. That was also the year when Hong Kong would revert from British rule back to China's, after 155 years in the barbarian wilderness. The idea that Li Peng's China – or Deng Xiaoping's China, for the former is little more than a puppet of the latter – could in the same year also fly in the face of the barbarian opposition, which was already mounting, and stop up her greatest river: the symbolism of such coincidence augured exceedingly well, in the minds of the masters of the moment. For by now not everyone, particularly outside China, was quite so enthusiastic. The foreign firms and government organizations that had been so eager to support the Chinese from the start of the project began to have their doubts only a few years later, as the avarice of one decade began to transmute into the more considered caution of the next.
Li Peng is a Russian-trained electrical engineer. His determination to have the dam built, come what may, stems both from that fact – his interest in capital projects, the bigger the better – and from his hope that his regime will leave a memorial to Mao and Maoism (and to himself, of course) that will last a thousand years. ‘The pet project of the red emperor' is how Dai Qing has styled the dam, and both Li and Deng Xiaoping have made it clear they expect their engineers to erect a structure of enduring nobility. But almost all of the criticism of the dam is based on the assumption that it will not last for a fraction of the anticipated time, and that its effects will be by turn minimally beneficial and a wholesale environmental disaster – indeed, that it may turn out to be a catastrophe waiting to happen. The debate can be a highly technical one; but in essence the critics – Chinese and Western both – have homed in since the start of construction on a small number of what they regard as dangerous weaknesses in the project.
Moreover, added the rubric below, ‘If your cigarette end burns the carpet, furniture, wall-paper, curtain or anything else in the room, you will be punished 50 yuan for each hole. ‘If the end burns anything on the bed, you will be punished as wholly as it costs. ‘Welcome,’ the notice ends with a flourish, ‘to our hotel.’ * Sichuan is the birthplace of Li Peng, China's premier; it was where Deng Xiaoping was born, too, and the guttural accents of both men remain. In Yibin the locals claim Mr Li as their own, though official biographies published in more disinterested cities say he was born in Chengdu. His picture is everywhere, however, and most notably in the one institution for which the town is known across all China – the great Wuliangye distillery, where China's best-known liquor has been fashioned for the last six hundred years.
Berlin Wall, blood diamonds, BRICs, British Empire, central bank independence, clean water, colonial rule, corporate social responsibility, crony capitalism, Deng Xiaoping, Donald Trump, F. W. de Klerk, Gini coefficient, Livingstone, I presume, McMansion, megacity, offshore financial centre, oil shock, open economy, purchasing power parity, rolodex, Ronald Reagan, Silicon Valley, South China Sea, sovereign wealth fund, structural adjustment programs, trade route, transfer pricing, upwardly mobile, urban planning, Washington Consensus, WikiLeaks
By some accounts he worked as an asset for Chinese intelligence in the 1990s within the inner circle of Cambodia’s Communist ruler, Hun Sen, helping to repair relations between him and Beijing, which had supported the man Hun Sen overthrew, the genocidal tyrant Pol Pot. What is clear is that Pa mastered what many of his colleagues in the Chinese security services also attempted: translating connections made in the world of espionage into business opportunities. When Deng Xiaoping ousted the Maoists and began reforming China’s economy in 1978, he encouraged the military to bring in its own revenues through business, freeing up the national budget to fund development projects. By the end of the following decade the PLA’s network of twenty thousand companies had interests ranging from pharmaceuticals to manufacturing weapons and smuggling commodities. ‘The profits were meant to fund improved living conditions for ordinary soldiers,’ writes Richard McGregor, a former Financial Times bureau chief in Beijing.7 ‘In reality, much of the money went into the pockets of venal generals and their relatives and cronies.’
The details of her past are as fragmented as Pa’s, and, as with Pa, it is hard to differentiate between genuine connections and an ability to broadcast an impressive aura of guanxi that may overstate the extent of their relationships. Company filings in Hong Kong show no record of any business ventures in which Lo participated before her alliance with Pa. Mahmoud Thiam, the Guinean minister who would work with Lo and Pa years later, was one of several people who heard that she used to be a translator for Deng Xiaoping.20 Between them, Pa and Lo had ‘extensive business connections in Africa and South America’ by the time they came together, according to a court filing years later.21 It was Lo who signed the Venezuela agreement. When she appeared with Hugo Chávez on Aló Presidente, his weekly broadcast, to trumpet the deal, the Venezuelan president told the nation that his guest came from a prestigious military family and was the daughter of a general.22 Lo exudes an authority that many foreigners who have met her have found hard to decode.
Lo derived a portion of her guanxi from her marriage.24 Her husband, Wang Xiangfei, is a serious businessman with a background in finance who has sat in some of China’s most prestigious boardrooms. He studied economics at the elite Renmin University in Beijing and became an associate professor of finance there. When his wife and Sam Pa began to craft their business venture in 2002, Wang had already spent two decades at China Everbright, an important state-owned financial conglomerate. Wang joined Everbright in 1983, the year it was founded as an early embodiment of Deng Xiaoping’s desire for China to take its place on the international commercial stage. It grew to hold assets worth hundreds of billions of dollars, including its own bank. Wang served both at the parent group in China and at its subsidiaries in Hong Kong, holding a succession of senior posts. China Everbright’s management reports directly to the State Council, the highest organ of the Chinese government and the most powerful body in the land after the Standing Committee of the Politburo of the Communist Party, and its executives move in the upper echelons of China’s interlocking elites.
Currency Wars: The Making of the Next Gobal Crisis by James Rickards
Asian financial crisis, bank run, Benoit Mandelbrot, Berlin Wall, Big bang: deregulation of the City of London, Black Swan, borderless world, Bretton Woods, BRICs, British Empire, business climate, capital controls, Carmen Reinhart, Cass Sunstein, collateralized debt obligation, complexity theory, corporate governance, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, currency peg, Daniel Kahneman / Amos Tversky, Deng Xiaoping, diversification, diversified portfolio, Fall of the Berlin Wall, family office, financial innovation, floating exchange rates, full employment, game design, German hyperinflation, Gini coefficient, global rebalancing, global reserve currency, high net worth, income inequality, interest rate derivative, Kenneth Rogoff, labour mobility, laissez-faire capitalism, liquidity trap, Long Term Capital Management, mandelbrot fractal, margin call, market bubble, Mexican peso crisis / tequila crisis, money: store of value / unit of account / medium of exchange, Network effects, New Journalism, Nixon shock, offshore financial centre, oil shock, open economy, paradox of thrift, price mechanism, price stability, private sector deleveraging, quantitative easing, race to the bottom, RAND corporation, rent-seeking, reserve currency, Ronald Reagan, sovereign wealth fund, special drawing rights, special economic zone, The Myth of the Rational Market, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, Thomas Kuhn: the structure of scientific revolutions, time value of money, too big to fail, value at risk, War on Poverty, Washington Consensus
Implementation was delayed, however, due to disruptions caused by Zhou’s death in January 1976, followed by the death of Communist Party chairman Mao Zedong in September of that year and the arrest one month later of the radical Gang of Four, including Madame Mao, after a brief reign. Mao’s designated successor, Hua Guofeng, carried forward Zhou’s vision and made a definitive break with the Maoist past at a National Party Congress in December 1978. Hua was aided in this by the recently rehabilitated and soon to be dominant Deng Xiaoping. Real change began the next year, followed by a period of experimentation and pilot programs aimed at increasing autonomy in decision making on farms and in factories. In 1979, China took the landmark decision to create four special economic zones offering favorable work rules, reduced regulation and tax benefits designed to attract foreign investment, especially in manufacturing, assembly and textile industries.
The surest way to rapid, massive job creation was to become an export powerhouse. The currency peg was the means to this end. For the Communist Party of China, the dollar-yuan peg was an economic bulwark against another Tiananmen Square. By 1992, reactionary elements in China opposed to reform again began to push for a dismantling of Deng’s special economic zones and other programs. In response, a visibly ailing and officially retired Deng Xiaoping made his famous New Year’s Southern Tour, a personal visit to major industrial cities, including Shanghai, which generated support for continued economic development and which politically disarmed the reactionaries. The 1992 Southern Tour marked a second-stage takeoff in Chinese economic growth, with real GDP more than doubling from 1992 to 2000. However, the effect of this spectacular growth in the 1990s on U.S.
Cold War era Collapse of Complex Societies, The (Tainter) collateralized debt obligations (CDOs) commodities Commodity Futures Modernization Act Communist Party of China competitive devaluations complexity theory Connally, John connectedness, in complex systems convening power theory copper correlation, in global financial warfare Cosmic Evolution (Chaisson) Coughlin, Charles counterfeiting Credit-Anstalt Bank of Vienna critical state systems critical thresholds currency collapse capital flight response to dollar collapse in complexity theory 1920s currency convergence currency devaluations competitive dollar devaluation against gold, 1930s and 1970s 1930s and 1970s sterling devaluations Tripartite Agreement of 1936 and currency markets currency peg currency wars Atlantic theater benefits of chaos as outcome of Currency War I (1921–1936) Currency War II (1967–1987) Currency War III (2010–) Eurasian theater Pacific theater Czechoslovakia Davison, Henry P. Dawes, Charles Dawes Plan, 1924 de Gaulle, Charles debasement Defense, U.S. Department of, and financial war game deficits under gold exchange standard international trade and U.S. dollar vulnerability deflation China’s yuan exchange rate and 1920s gold prices and in 1930s and U.S. gold devaluation U.S. fears during 2000, 2002–2011 Deng Xiaoping derivatives derivatives contracts Deutsche Bundesbank devaluations China’s fears of U.S. currency devaluation competitive 1930s currency U.S. 1930s gold devaluation Dodd-Frank reform legislation of 2010 dollar inflation dollar, U.S. black market trade of Bretton Woods system and collapse in complexity theory collapse of dollar-denominated markets collapse of, potential counterfeit one-hundred-dollar bills devaluation of dollar-gold parity early warning attacks on euro-dollar exchange rate Federal Reserve and dollar price stability on floating rate system 1920s Germany, value in 1930s devaluation against gold 1970s devaluation against gold 1980s return of under Nixon’s New Economic Policy reserve currency, as global Russian ruble and and SDRs in dollar replacement strategy as supercurrency yen-dollar relationship yuan-dollar exchange rate Dow Jones Industrial Average Drudge Report Dubai economics behavioral financial misuse of efficient markets theory Eichengreen, Barry elite rent seeking embargoes Emergency Banking Act of 1933 emergent properties, in complex system energy, money-as-energy model England and depression of 1920–1921 and German hyperinflation gold reserves and gold standard London Gold Pool 1960s sterling crisis 1968 closing of gold market and Panic of 1931 and Paris Peace Conference of 1919 and Treaty of Versailles and Tripartite Agreement of 1936 “Enhancing International Monetary Stability—A Role for the SDR?”
Globish: How the English Language Became the World's Language by Robert McCrum
Alistair Cooke, anti-communist, Berlin Wall, British Empire, call centre, colonial rule, credit crunch, cuban missile crisis, Deng Xiaoping, Etonian, failed state, Fall of the Berlin Wall, Francis Fukuyama: the end of history, invention of movable type, invention of writing, invisible hand, Isaac Newton, jimmy wales, knowledge economy, Livingstone, I presume, Martin Wolf, Naomi Klein, Ralph Waldo Emerson, Republic of Letters, Ronald Reagan, Scramble for Africa, Silicon Valley, Steven Pinker, The Wealth of Nations by Adam Smith, Thomas L Friedman, trade route, transatlantic slave trade, transcontinental railway, upwardly mobile
In 2010, if there is one nation whose modernizing mission should benefit from Globish, it must be the new China. But how exactly, and when? The beginnings of the new China are to be found not in the Communist takeover of 1949 but in the prelude to the Third Plenum of the Eleventh Central Committee, which met in December 1978. Mao Zedong had been dead for just over two years but his revolutionary heirs still held the reins of power. So it was all the more remarkable that the new party chairman, Deng Xiaoping, a feisty survivor of the Cultural Revolution, should make a speech in advance of the Third Plenum arguing that the reality of the world economy, not narrow party ideology, should govern China’s future policy and direction. ‘It does not matter if it is a black cat or a white cat,’ Deng observed. ‘As long as it can catch mice, it is a good cat.’ This homely incitement to pragmatism launched the Chinese economic miracle of the last three decades. 2 How to convey the awesome scale of China’s self-transformation?
Now, in the twenty–first century, the challenge for China will be how to integrate Globish values into the alien matrix of the Chinese tradition. Some commentators, like the (London) Observer’s Will Hutton, do not believe it can be done. In The Writing on the Wall, Hutton declares: ‘for all China’s success to date, ultimately the system that the communists have created is structurally unstable.’ China’s ‘new left’, who support the market reforms inaugurated by Deng Xiaoping in 1979, disagree with this bleak diagnosis, which they see as uninformed, and talk instead about institutional innovation, with frequent references to low–price health care, green development programmes and the reform of property laws to incentivise workers in the state’s project. According to Leonard, ‘the balance of power in Beijing is subtly shifting towards the [new] left’. In the 11th Five Year Plan of 2005, for instance, Hu Jintao and Wen Jiabao were happy to describe a blueprint for a ‘harmonious society’ rather than insisting on a forced march towards more economic growth, previously China’s great ambition.
Five Point Someone features soft drugs, binge drinking, and an affair between a student and his professor’s daughter. One Night @ the Call Centre is a romantic comedy set in a call centre office where bored young Indians try to resolve the mindless enquiries of midwestern American technophobes. Bhagat says that his novel reflects a generational divide in India. His model society is China, not the modernising China of Deng Xiaoping, but the radicalising China of Mao Zedong. ‘India needs a cultural revolution to change mindsets,’ Bhagat told the Guardian. ‘In China it was bloody, but India needs to learn that the old ways are not always the best ways.’ One Night @ the Call Centre has already sold about 2 million copies. In October 2008 it reached a new audience when a Bollywood film adaptation went on general release. Bollywood is another example of Globish in microcosm, and a vital barometer of linguistic and cultural change in India today.
A Brief History of Neoliberalism by David Harvey
affirmative action, Asian financial crisis, Berlin Wall, Bretton Woods, business climate, capital controls, centre right, collective bargaining, crony capitalism, debt deflation, declining real wages, deglobalization, deindustrialization, Deng Xiaoping, Fall of the Berlin Wall, financial deregulation, financial intermediation, financial repression, full employment, George Gilder, Gini coefficient, global reserve currency, illegal immigration, income inequality, informal economy, labour market flexibility, land tenure, late capitalism, Long Term Capital Management, low-wage service sector, manufacturing employment, market fundamentalism, means of production, Mexican peso crisis / tequila crisis, Mont Pelerin Society, mortgage tax deduction, neoliberal agenda, new economy, phenotype, Ponzi scheme, price mechanism, race to the bottom, rent-seeking, reserve currency, Ronald Reagan, Silicon Valley, special economic zone, structural adjustment programs, the built environment, The Chicago School, transaction costs, union organizing, urban renewal, urban sprawl, Washington Consensus, Winter of Discontent
Figures 1.2, 1.5 and 6.2 reprinted by permission of the publisher from Capital Resurgent: Roots of the Neoliberal Revolution by Gérard Duménil and Dominique Lévy, translated by Derek Jeffers, Cambridge, Mass.: Harvard University Press, Copyright © 2004 by the President and Fellows of Harvard College. Figure 4.2 is reproduced courtesy Blackwell Publishing from S. Corbridge, Debt and Development, 1993. Introduction Future historians may well look upon the years 1978–80 as a revolutionary turning-point in the world’s social and economic history. In 1978, Deng Xiaoping took the first momentous steps towards the liberalization of a communist-ruled economy in a country that accounted for a fifth of the world’s population. The path that Deng defined was to transform China in two decades from a closed backwater to an open centre of capitalist dynamism with sustained growth rates unparalleled in human history. On the other side of the Pacific, and in quite different circumstances, a relatively obscure (but now renowned) figure named Paul Volcker took command at the US Federal Reserve in July 1979, and within a few months dramatically changed monetary policy.
It has been part of the genius of neoliberal theory to provide a benevolent mask full of wonderful-sounding words like freedom, liberty, choice, and rights, to hide the grim realities of the restoration or reconstitution of naked class power, locally as well as transnationally, but most particularly in the main financial centres of global capitalism. 5 Neoliberalism ‘with Chinese Characteristics’ In December 1978, faced with the dual difficulties of political uncertainty in the wake of Mao’s death in 1976 and several years of economic stagnation, the Chinese leadership under Deng Xiaoping announced a programme of economic reform. We may never know for sure whether Deng was all along a secret ‘capitalist roader’ (as Mao had claimed during the Cultural Revolution) or whether the reforms were simply a desperate move to ensure China’s economic security and bolster its prestige in the face of the rising tide of capitalist development in the rest of East and South-East Asia. The reforms just happened to coincide—and it is very hard to consider this as anything other than a conjunctural accident of world-historical significance—with the turn to neoliberal solutions in Britain and the United States.
M. 99–100 De la Rua, F. 105 debt of developing countries 9, 29, 162, 193 neoliberal state 73–5 uneven development and crises 94–6, 99, 104, 108 decadence of individualism 85–6 decolonization 55–6 deficit financing 188 deflation 162, 194–5 deindustrialization 26, 53, 59 Dembour, M.-B. 220 democracy demand for 110 excess of 184 as luxury 66 meaning of 206 Democrats (US) 49, 51 consent, construction of 51, 53–4, 62–3 uneven development 92, 93, 103, 110 see also Clinton; Roosevelt Deng Xiaoping 1–2, 120–5 passim, 135–6, 168 deregulation 3, 22, 26, 65, 67, 114, 161 derivative rights 182 Derthick, M. 219 devaluation 103, 105, 135 developing countries 71–4 see also Africa; Asia; debt; inequalities; Latin America; uneven development Dicken, P. 91, 102, 109, 131, 216, 219 dignity, human 5 see also freedom dirigisme 10 disposable commodity, labour as 70, 153, 157, 164, 167–71 dispossession see accumulation dissident movements 5 see also student movements Dongguan 132, 147, 149 Duhalde, E. 105–6 Duménil, G. 207, 213, 219–20 freedom concept 16–17, 18, 24, 26, 30, 33, 209 freedom’s prospect 191, 222 Eagleton, T. 198 earnings see income/wages East Asia 2 and China 122, 141 consent, construction of 59 freedom concept 10, 11, 23, 35 freedom’s prospect 190, 193–4, 197, 199, 206 neoliberal state 66, 72, 85 neoliberalism on trial 154, 156, 169 uneven development 87–94 passim, 96, 97, 106–12, 115, 116, 118 see also China; Hong Kong; Japan; South East Asia; South Korea; Taiwan East and Central Europe 5, 17, 71 neoliberalism on trial 154, 170 uneven development 94, 95, 117 ecosystems see commons Ecuador 95 Edsall, T. 48, 49, 51, 54–5, 211 Edwards, M. 220 egalitarianism 203–4 Eley, G. 208 elites and restoration of power China 123, 145 consent, construction of 39, 42–5, 51, 52 freedom concept 15–19, 23, 26, 29–30, 31–8 freedom’s prospect 197, 203–4 neoliberal state 66, 69, 84 neoliberalism on trial 152, 153, 156 uneven development 90–3, 96–9, 103–6, 108, 112, 114, 117, 119 see also financial system ‘embedded liberalism’ 11–12 employment see labour Enron 32, 77, 162 entrepreneurialism 23, 31 environment see commons equality 120 see also inequalities ERM 98 ethnicity 85 Europe 109, 157 European Union 79, 89, 91–2, 93, 114–15 freedom concept 11–15, 17, 19, 24, 27–8 freedom’s prospect 193–4, 200, 206 uneven development 89, 91–2, 93, 114 see also Britain; East and Central Europe; France; Germany; Italy; Sweden Evans, P. 212 excess capacity 194 exchange as ethic 3, 13 exchange rates 10, 12, 123–4, 141 exploitation of natural resources 8–9, 159, 164, 174–5 export-led growth 107 China 128, 130, 135–7 see also East Asia; FDI; market economy; South East Asia failure of neoliberalism 154–6 see also neoliberalism on trial Falklands/Malvinas war 79, 86 Falwell, J. 49 Farah, J. 219 FDI (foreign direct investment) 6, 7, 23, 28–30 China 21, 123, 125, 126, 129, 133–4, 141, 147 decline 190, 191 uneven development 90–4 passim, 98, 100, 101, 103, 105, 109, 117–18 see also debt; financial system Federal Reserve (US) see Volcker financial system and power 40, 62 China and state-owned banks 123, 125, 126, 129, 133–4, 141, 147 crises 12, 44–8, 68, 189, 193–4 uneven development 94–7, 104–5 see also debt; deflation; inflation decline 190 financialization 161–2 neoliberal state 71–5, 78, 80 neoliberalism on trial 157, 158, 161–2 uneven development 88–93, 94–9, 104–5, 108, 114, 119 see also corporations; currency; elites; FDI; IMF; income; Treasury; World Bank Fisher, W. 222 Fishman, T. 216 ‘flexible accumulation’ 75–6 flexible labour 100, 112 force see coercion/force Ford, G. 46 foreign direct investment see FDI Forero, J. 214, 217 Fortune 500 17, 44 four modernizations (China) 120 Fourcade-Gourinchas, M. 208, 211 Fox, V. 98 France 41, 157, 200 freedom concept 5, 11, 13, 15, 17, 19, 24, 27 neoliberal state 66, 84, 85 uneven development 91, 115, 117 Frank, T. 172, 210, 211, 213 free trade/market see market economy freedom, concept of 5–38, 207–9 as catchword 39, 41–2 class power 31–6 definitions 36–7 divergent concepts 183–4 four cardinal 183, 206 neoliberal theory, rise of 19–31 neoliberal turn, reasons for 9–19 freedom’s prospect 36–8, 186–206, 221–2 end to neoliberalism, possible 188–98 neoliberalism, alternatives to 198–206 Freeman, J. 46 French, H. 216 Friedman, M. 8, 20, 22, 44 future see freedom’s prospect G7/G8 countries 33, 66, 94 ‘Gang of Four’ see Hong Kong; Singapore; South Korea; Taiwan GATT 100 General Motors 130, 134, 135, 157 Geneva Conventions 6, 198 George, S. 207, 222 Germany 66, 87, 91, 157 West 24, 41, 88–9, 90 Gilder, G. 54 Gill, L. 220, 222 Gills, B. 221 Gindin, S. 28, 208, 219 Giuliani, R. 48, 100 global warming 172, 173, 174 globalization 70, 80, 159, 163 see also market economy; WTO Glynn, A. 208 Goldwater, B. 2 Gowan, P. 209, 213 Gramsci, A. 39, 78 Gray, J. 152–3 Guangdong 121, 128, 135, 136, 137 Haggard, S. 211 Hainan Island 131 Hale, D. and L. 215, 216 Hall, P. 211 Hall, S. 211 Harris, P. 220 Harrison, J. 208 Hart-Landsberg, M. 215, 217 Harvey, D. 211, 212, 213, 219, 221, 222 freedom concept 14, 207, 209 Hayek, F. von 20, 21, 22, 37, 40, 57 Hayter, T. 211 health, poor 154 Healy, D. 212 hedging 97–8 hegemony see power Held, D. 222 Henderson, J. 72, 213 Henwood, D. 209 Hofstadter, R. 82–3 Holloway, J. 219 Hong Kong 2, 89, 96, 157 and China 121, 123, 128, 130, 132, 136, 138, 141, 147 Hout, T. 216 Huang, Y. 124, 215 Huawei 134–5 Hulme, D. 220 human rights see rights hyper-inflation 193 Hyundai 107, 111 IBM 13, 146 ideologies see neoliberalism; values illiteracy 156 IMF (International Monetary Fund) 3 China 122, 141 consent, construction of 40, 54, 58 freedom concept 8, 10, 12, 24, 30 freedom’s prospect 185, 189, 201, 205 neoliberal state 69, 72, 73, 75 neoliberalism on trial 152, 154, 162–3, 175, 182 uneven development 92–9 passim, 103, 105–6, 111, 116–18 imperialism see neocolonialism imports 139–40 cheap 101 substitution 8, 98 income/wages China 126–7, 136, 138, 143–4, 148 falling 18 individual 176–7 inequalities 15–19, 88, 92, 100 neoliberalism on trial 154, 156 policies 12 and productivity 25 uneven development 88, 92, 100, 114 India 9, 134 freedom’s prospect 186, 194, 202, 206 neoliberal state 76, 85 neoliberalism on trial 154, 156, 174 individualism 23, 42, 57 neoliberal state 65–6, 79–8, 82, 85–6 see also freedom Indonesia 199 and China 138, 139 freedom concept 31–2, 34 neoliberal state 76, 85 neoliberalism on trial 153, 163, 167, 168, 175, 178 uneven development 89, 91, 96–7, 108–9, 117, 118 inequalities China 142–51 income 15–19, 88, 92, 100 increased 89–90, 118 see also class; developing countries; power; uneven development inflation 1, 135 consent, construction of 51, 59 control as only success 156 freedom concept 12, 14, 22, 23–5 freedom’s prospect 189, 193 stagflation 12, 22, 23, 24–5, 57 uneven development 88, 93, 100 informal economy 103 information technology 3–4, 34, 157, 159 innovation see technology, new Institute of Economic Affairs (UK) 22, 57 institutions 40, 64, 75 see also IMF; World Bank; WTO intellectual property rights 64, 68, 160 interest rates 23–4, 51, 59, 99, 162 international agreements 6, 92, 198 see also IMF; WTO intervention 20–1, 79 lack of 69 see also pre-emptive action investment see FDI Iran 28, 85, 139, 206 Iraq 179–80, 181, 204 reconstruction 184 War 6–7, 9, 35, 39, 153, 160, 184, 197 Isaacs, W. 193 Islam 83, 186 see also Middle East Israel 12 Italy 66, 96 freedom concept 11, 12, 13, 15 Japan 2, 59, 156 and China 123, 134, 136, 138–40, 142 freedom concept 10, 11, 23 freedom’s prospect 190, 193 neoliberal state 66, 85 uneven development 87–94 passim, 107 Jensen, D. 186 Jessop, B. 211 Jevons, W.
When the Money Runs Out: The End of Western Affluence by Stephen D. King
Albert Einstein, Asian financial crisis, asset-backed security, banking crisis, Basel III, Berlin Wall, Bernie Madoff, British Empire, capital controls, central bank independence, collapse of Lehman Brothers, collateralized debt obligation, congestion charging, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, cross-subsidies, debt deflation, Deng Xiaoping, Diane Coyle, endowment effect, eurozone crisis, Fall of the Berlin Wall, financial innovation, financial repression, floating exchange rates, full employment, George Akerlof, German hyperinflation, Hyman Minsky, income inequality, income per capita, inflation targeting, invisible hand, John Maynard Keynes: Economic Possibilities for our Grandchildren, joint-stock company, liquidationism / Banker’s doctrine / the Treasury view, liquidity trap, London Interbank Offered Rate, loss aversion, market clearing, moral hazard, mortgage debt, new economy, New Urbanism, Nick Leeson, Northern Rock, Occupy movement, oil shale / tar sands, oil shock, price mechanism, price stability, quantitative easing, railway mania, rent-seeking, reserve currency, rising living standards, South Sea Bubble, sovereign wealth fund, technology bubble, The Market for Lemons, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, Tobin tax, too big to fail, trade route, trickle-down economics, Washington Consensus, women in the workforce, working-age population
The resulting increase in consumer demand encouraged industry to deliver substantial economies of scale, with mass production becoming ever more commonplace. Social security systems designed to prevent a repeat of the terrible impoverishment of the 1930s became increasingly widespread, reducing the need for households to stuff cash under the mattress for unforeseen emergencies: they could thus spend more freely. With the reforms initiated by Deng Xiaoping at the end of the 1970s and the fall of the Berlin Wall in 1989, countries that had been trapped in the economic equivalent of a deep-freeze were able to come in from the cold, creating new opportunities for trade and investment: trade between China and the US, for example, expanded massively. Women, sorely underrepresented in the workforce through lack of opportunity and lack of pay, suddenly found themselves in gainful employment thanks to sex discrimination legislation.
In any case, without expansion, the risk of Smith-style melancholy becomes that much greater. At the same time, economies with low per capita incomes and rising income inequality may be able to expand relatively easily 159 4099.indd 159 29/03/13 2:23 PM When the Money Runs Out if, for example, there is support for political reform to allow a faster rate of economic growth. Think, for example, of China’s economic success – thanks to reforms launched by Deng Xiaoping – since the 1980s. Even with high levels of income inequality, rapid growth can keep Smith’s melancholy at bay. Indeed, China’s success has been accompanied by a persistent rise in income inequality. Fast-developing economies typically go through a period of rapidly rising inequality as the new urban ‘rich’ see their incomes fast outstripping those of the rural poor, thanks to higher levels of productivity in manufacturing than in rural endeavours.
‘Forecasting Recessions under the Gramm-Rudman-Hollings Law’, NBER Working Paper No. 2066, Nov. 1986 278 4099.indd 278 29/03/13 2:23 PM INDEX Africa 19 ageing populations 78, 88, 250 age-related expenditure 48 generational divide 171–4, 241, 243–5 Germany 136 Japan 23, 25 AIG 30 Akerlof, George 123–4 American War of Independence 154 ancien régime and the French Revolution 151–7 Angola 19, 82 Anwar Ibrahim 200 Arab Spring 160 Argentina 13–19, 24–6, 39, 42, 161 Arizona Support Our Law Enforcement and Safe Neighbourhoods Act (SB 1070) 192 Armstrong, Neil 9–10, 35 Arrow, Kenneth J. 132–3 Asian crisis 192–6 recovery from 204–5, 206, 208–9 asset prices 62–3 asset-backed securities 73 Audit Commission 173–4 austerity 67–8, 111, 205, 226, 242 and political extremism 227 Statute of Labourers 211 versus stimulus 4 wartime 114, 143 see also Snowden’s budget Australia 15, 16, 117, 187 Austria 225 baby boomers 1, 7, 243 bailouts 61–2, 241 Balls, Ed 101 Bank Negara 199 Bank of England 33, 61, 90–2 economic growth forecasts 74 interest rates 71, 102 and Libor 126 Bank of Japan 21 banking free 255, 257 and protectionism 215 union (eurozone) 256 banks 125–31, 252–7 bankers’ rewards 48–9 failure 30–1, 255 liquidity buffers 84, 90 mortgage loan-to-value ratios 51–2 regulatory uncertainty 251–2 and savers 136 see also central banks Barclays Bank plc 126, 127–8 279 4099.indd 279 29/03/13 2:23 PM When the Money Runs Out Basel III regulations 83 Bean, Charlie 63–5, 75 Bear Stearns 30 Belgium 184 Ben Ali, Zine al-Abidine 160 Benedetti, Count 182 benefits 47, 203–4 see also social spending Bernanke, Ben 4, 21–2 Beveridge, William 44–5 bimetallism 184–5 Bismarck, Otto von 182 Black Death 209–10, 213 blame culture 108, 161, 189, 200–1, 226–7 Blenheim Palace 222–3 bonds 73, 77, 80, 86, 221 borrowers 97, 133–4, 137 borrowing, government borrower of last resort 86–7 heavy 143–4 international 142 and low interest rates 71, 245 and the New Deal 109 to offset private saving 217–18 relative to national income 198, 247 rising 32 see also credit: queues Botswana 19 Brazil 19, 89, 163 Britain see UK (United Kingdom) British Empire 14, 15, 16 Bryan, William Jennings 187 budget deficits 58, 69, 79, 110, 117 France 54 Germany 54 Spain 54 UK 52, 54, 66–7 US 53–4, 66–7, 118 Buenos Aires 15 Business Week 29–30 Buxton, Thomas Fowell 128 California 173 Calonne, Charles-Alexandre de 154–5 Canada 15, 16 capital adequacy ratios 256 controls 16, 199–200, 201, 234 flight and the euro 191 foreign 198, 202 immobile 250–2 markets 31, 133 and the rise of living standards 180 Carr, Jimmy 148 Case-Shiller house price index 63 Catalonia 153 Central African Republic 163 central banks and bailouts 241 expansion of remit 86 and government debt 80–1 and illusory wealth 64–5 interest rates 71 and a new monetary framework 245–6 nominal GDP targeting 247–50 and politics 78, 89–90, 91–5 and redistribution 121 see also quantitative easing (QE) Chicago 15 China and commodity prices 77 financial systems 135 and globalization 167 income inequality 160, 163 living standards 27 per capita incomes 251 and regional tensions 228 renminbi currency 177 silver standard 183, 185 trading partners 82 and the US 12, 139 Chinese Exclusion Act 188–9 Chrysi Avgi 227 Churchill, Winston 103 circuit breakers 242, 256 Coinage Act 184–5 Committee on National Expenditure 98–9 commodity prices 77, 109, 116–17 conduits 129–30 Connecticut 163 consumer credit 11–12, 52, 135 contingent redistribution 236 credit consumer 11–12, 52, 135 derivation of word 125 expansion 56–7 and the property boom 61 and protectionism 215 queues 80–1, 83–4, 85–9, 217 Creditanstalt 225 creditors creditor nations 224–5, 232 and debtors 139–43, 174–7, 188, 191, 232–4 280 4099.indd 280 29/03/13 2:23 PM Index foreign 193, 221, 223 home grown 138 Japan 22 cross-subsidization, of banking services 256–7 currencies 177, 221 ‘currency wars’ 82, 190 see also eurozone; renminbi; ringgit; sterling Darling, Alistair 92–3 debt and asset prices 63 and central banks 241–2 eurozone crisis 145, 235–9 excessive 67, 213–14 France 154 household 12, 63–4, 85 and inflation 220 Japan 23 and national incomes 52, 118, 141–2 and quantitative easing (QE) 79–80 repaying 34 debt deflation 115 debtors and creditors 139–43, 174–7, 188, 191, 232–4 eurozone 224–5 home grown 138 deficient demand 57, 59 deficit expansion 119 deficit reduction 242 deficits 58, 69, 79, 110, 117 France 54 Germany 54 Korea 202 pension funds 75, 172 Spain 54 and surpluses 134–7, 232–4 UK 52, 54, 66–7 US 53–4, 66–7, 118 deflation 21–2, 185 democratic deficit 143, 221 Deng Xiaoping 12, 160 Denmark 158 the Depression 55–7, 59, 70, 106–10, 131 and the UK 98, 101 Dexia 30 Diamond, Bob 126 Dickens, Charles 43 disaster-avoidance 7 District of Columbia 163 dollar standard 190 dotcom bubble 169 Draghi, Mario 94 economics profession 3–4, 5–6, 258–9 Edelman Trust Barometer 148 education 12 financial 257–9 literacy 15 training 254 Edward III 211 Egana, Amaia 153 emerging nations 28, 116 employment 115–16 see also labour; unemployment enfranchisement 222, 242–4 the Enlightenment 6, 11, 154 entitlement culture 45, 48, 137, 143, 209, 218 absent from Asia 204, 209 need to reduce 178, 205 equities 79, 172 ethics 254 Ethiopia 19 European Central Bank (ECB) 92, 93–5, 119–20, 144–5, 146 eurozone banking union 256 crisis 224–6, 235–9 and the European Central Bank 93–5 northern creditors and southern debtors 67, 139, 145, 157, 191, 232–3 and trust 145–6 and the UK 111, 214 variations in borrowing costs 215–16 exchange rates 81–2, 111–12, 175, 239–42 executive pay 48 exports 11, 112 extremism, political 226–9 Fannie Mae 190 Federal Reserve 74, 92, 105, 241 and the Great Depression 59, 106–7 Ferguson, Niall 26 Ferguson, Roger 194 feudalism 213 financial services 168–70 innovations 11–12, 38, 133–4 Financial Services Authority (FSA) 171 Finland 158 First World War 103, 114 ‘fiscal club’ concept 237–9 fiscal policy 58, 66–7, 69–70, 77–8, 246–7 fiscal trap 79–81 281 4099.indd 281 29/03/13 2:23 PM When the Money Runs Out fiscal unions 236–7 Fisher, Irving 108, 115 football 165 forecasting 52–3, 63, 71–2, 74, 108 Fortis 30 France age-related expenditure 48 ancien régime and the Revolution 151–7 and Austria 225–6 benefits 204 budget deficit 54 exports 82 Latin monetary union 184 per capita incomes 101, 105 and political extremism 192 and public spending 49 Franco-Prussian War 182 Frank, Barney 65 fraudulent acts 35–6 Freame, John 127–8 Freddie Mac 190 free banking 255, 257 French Revolution, and the ancien régime 151–7 Freud, Sigmund 51 Friedman, Milton 59, 60, 86, 106, 188 Fuld, Dick 253 GDP forecasts 48, 52–4 targeting 247–50 General Strike 104 generational divide 171–4, 241, 243–5 see also ageing populations Germany ageing population 48, 136, 171 benefits 204 budget deficit 54 and the eurozone crisis 34, 191, 225, 232–3, 235 exports 82 Franco-Prussian War reparations 184, 186 government borrowing 71, 144 interest rates 146 late 19th-century economy 186, 189–90 living standards 13–14 national income 32 per capita incomes 101, 105 and the Protestant work ethic 26 and public spending 50 surplus 135–7 Treaty of Versailles 103 unification 182–3 Weimar Republic 55–6, 89 GfK/NOP Inflation Attitudes Survey 92 globalization 166–7, 169, 214–16, 224–6, 250–1 Gold Standard 186 and Germany 184 and the UK 57, 98–9, 102, 103, 105 and the US 107, 109, 187–8 gold standards 183–4, 185 Golden Dawn Party 227 Goodwin, Fred 253 Gordon, Robert J. 4 government bonds 73, 77, 80, 86, 221 government borrowing borrower of last resort 86–7 heavy 143–4 international 142 and low interest rates 71, 245 and the New Deal 109 to offset private saving 217–18 relative to national income 198, 247 rising 32 see also credit: queues government debt and central banks 241–2 eurozone crisis 145 excessive 67, 213–14 France 154 and inflation 220 and national incomes 52, 118, 141–2 and quantitative easing (QE) 79–80 governments and central bank bailouts 241 and credit queues 83–92 mistrust 140, 147–8, 217–18 social spending 45–7 spending 58, 109, 119, 142, 203 spending increases 49–50, 66 Gramm-Rudman-Hollings Act 242 Great Depression 55–7, 59, 70, 106–10, 131 and the UK 98, 101 Great Railroad Strike 187 Greece 82, 134, 140–1, 144–6, 234 and the euro 191 and political extremism 192, 227 Greenback Party 187 Greenspan, Alan 61–2 growth forecasting 74 global 28 start of the 21st century 169–70 targeting 247–50 282 4099.indd 282 29/03/13 2:23 PM Index Hamada Marine Bridge 23 Hayek, Friedrich 56, 207 HBOS 30 health spending 45–6 Helmsley, Leona 148 high-quality liquid assets (HQLA) 83–4 home bias 215–16, 251–2 Hong Kong 163, 204 Hoover administration 118 housing markets 30–1, 61, 63–5, 115–16, 130 foreign buyers 177, 223 see also mortgage-backed securities; subprime HSBC 126, 254 Hundred Years War 209–10 Hungary 89 hyperinflation 78, 89 Iceland 32 Illinois 173, 174 illusions and asset prices 62–3 illusory prosperity 49–51, 56–7, 64–5, 68 and investment philosophy 137–8 public sector 52–3 IMF 200, 202 import tariffs 16 income inequalities 25, 34, 48, 158–70 income, national 32, 49–50, 141–2, 247 Germany 33 Japan 32 UK 110–11, 112 US 117–18 incomes, per capita 27, 49, 159–60, 163 Argentina 14 China 251 France 101, 105 Germany 14, 101, 105 India 27, 251 Indonesia 197 Japan 21 Korea 202 Malaysia 198 UK 1, 44, 101, 105 US 14, 101 India 27, 183, 185, 251 Indonesia 193, 195, 196–7 industrial relations 103–4 Industrial Revolution 38 IndyMac 30 inflation and ageing populations 250 Argentina 18 and commodity prices 116–17 deflation 21–2, 185 excessive 77–8, 89 housing market 64 and the New Deal 109 and stagnation 219–20 targeting 59–61, 87–8, 246, 247 UK 114 US 115 infrastructure projects 236 innovations, financial 11–12, 38, 133–4 interest rates and asset prices 63 credit queue jumping 83–92, 217 expected future 87–8 falls 32, 69, 137, 146–7 inflation versus GDP targeting 248–9 Libor 126 and monetary and fiscal policies 245–6 persistently low 72, 75, 76, 89–91, 239 and stimulus 58 subsidizing 190 UK 61, 71, 102 US 57, 61, 105, 135, 193 intergenerational divide 171–4, 241, 243–5 see also ageing populations International Monetary Fund (IMF) 144–5, 200, 201, 202 international/domestic conflict 232–5 investment demand for financial services 168 and income inequality 162–3 international 134, 136, 176–7, 193, 232 private investors 144–5 Ireland 49, 134 Israeli–Palestinian conflict 122–3 Italy 49–50, 82, 146, 184, 191 ageing populations 171 Japan 20–6 ageing populations 171 attempted reforms 42 debt repayment 135 exports 11 government borrowing 144 government debt 52 liquidity trap 72 living standards 14 national income 32–3 and quantitative easing (QE) 85 stockpile of assets 240 and trust 161 unreliable estimates 113 283 4099.indd 283 29/03/13 2:23 PM When the Money Runs Out Jay Cooke and Company 186 Jerusalem trip 122–3 Jews, attitudes towards 189, 200–1, 213 jobs 115–16 see also labour; unemployment Kahneman, D. 41 Kalecki, Michael 59 Das Kapital(Marx) 179 Keynes, John Maynard 38, 57–9, 72, 86, 108 ‘Economic Possibilities for our Grandchildren’ 259–60 Essays in Persuasion 100 The General Theory of Employment, Interest and Money 58–9, 89 on the Gold Standard 104 How to Pay for the War 114 Keynes Plan 233 Keynesian policies 60 on the Snowden budget 99 King, Mervyn 73, 90–1, 92–3, 180 Knetsch, J.
3D printing, carbon footprint, clean water, cleantech, Deng Xiaoping, Elon Musk, en.wikipedia.org, glass ceiling, global supply chain, information retrieval, Internet of things, new economy, oil shale / tar sands, oil shock, reshoring, Ronald Reagan, Silicon Valley, South China Sea, Steve Ballmer, Steve Jobs, telemarketer, Tesla Model S, thinkpad, upwardly mobile, uranium enrichment, Y2K
Countries such as Japan that are unable to meet resource demands either through their own mining and production or through secure stable trade, will find companies leaving their shores and taking thousands of jobs with them. When it comes to rare earth and other rare metals, this is a migration that China is counting on. The importance of rare metals and specifically rare earth elements in China’s development goes back to the country’s revolutionary leader, Deng Xiaoping. In 1992 he said, “There is oil in the Middle East; there is rare earth in China.” By then, China, out of necessity, had begun to mine its rare metal resource deposits. Fifteen years earlier, the country had started developing its manufacturing and construction sectors, which led to a growing reliance on imported material supplies. To reduce that dependence, China increased its investment in primary products it found domestically—including mined commodities, mostly minor metals.32 China was often able to produce many rare metals at a 50–60 percent discount due to lower labor costs and environmental standards.
To achieve these goals, China reversed its export incentives for rare earths and other metals during the beginning of the first decade of the 2000s and began export restrictions, including quotas, to stem the overseas flow of resources. Lower domestic prices enticed foreign companies to bring their operations to China for unrestricted access to its abundant rare metal resources base. Echoing Deng Xiaoping, Gan Yong, the head of the China Society of Rare Earths put into words what had long been Chinese policy in 2013: “The real value of rare earths is realized in the final product.”34 China’s unabashed attempt to control the entire high-tech supply chain, from rare earths to finished products, worries many. But no one has outlined the risks quite the way Gerald van den Boogaart has. If one were to call central casting for a German mathematician, it would likely send you Boogaart from the Helmholtz Institute Freiberg for Resource Technology.
See also Rare metals Critical Materials Strategy (Department of Energy), 207 Cukier, Kenneth, 119 Currid, Arch, 255n35 Da Costa, Jeová Moreira, 42 Daido Steel, 113 Dalahai, China, pollution in, 175–77 DDG 51 Aegis destroyers, 168 Decision-making processes, for rare metal usage, 227–28 Deckinger, Ken, 187–88 Defense Logistics Agency, 240n31 Defense sector. See Military (U.S.); Wars Dell Corporation, 14, 224 Democratic Party of Japan, 23–24 Democratic Republic of Congo, rare metals production in, 48 Deng Xiaoping, 32 Dentistry, historical origins, 115 Department of ___. See U.S. Department Design Journal, on Sinclair’s calculator, 118 Developing countries: challenges to metal operations in, 48–49 rise in standard of living in, 10–11 technological improvements in, 218–19 technology use in, 125–27 Diamond, Jared, 10 Diaoyu Islands (Senkaku Islands), territorial dispute over, 22–24 Didymium, 72 Dingnan, China, 173–75 Diodes, 117, 164–65, 277n27, 278n30.
The Coming Anarchy: Shattering the Dreams of the Post Cold War by Robert D. Kaplan
Berlin Wall, clean water, Deng Xiaoping, edge city, European colonialism, Fall of the Berlin Wall, Francis Fukuyama: the end of history, global village, Honoré de Balzac, Peace of Westphalia, Ronald Reagan, Thomas Malthus, trade route, unemployed young men, Yom Kippur War
(The Republican majority in Congress and the "religious right" are thus not true conservatives.) A true conservative is in fact a hesitant progressive: he or she seeks to slow change when society is reforming too fast and to instigate moderate change when society is not reforming at all. Burke's writings are the epitome of this search for pacing. I imagine that Kissinger's tolerance of the late Chinese ruler Deng Xiaoping and his successor, Jiang Zemin, can be explained by the fact that the two Chinese dictators represented enlightened conservatism within their own cultural and historical limits. Both fos tered gradual but unmistakable reform that has bettered the material lives of tens of millions of people. At the same time, they averted the kind of revolutionary up heaval that might result from instituting democracy across a vast and geographically riven landscape in which less than 10 percent of the population is middle-class.
., The Twenty Years' Crisis, 170,181 Carter, Jimmy, 103,139 Castlereagh, Robert Stewart, 130,138, 143,144 Catholicism, 122,135 Caucasus, 28-29, 38, 43, 44, 47,114, 144 Ceausescu, Nicolae, 114 Central America, 25 Central Asia, 20, 27, 28, 50 I N D E X Central Intelligence Agency, post-Cold War role of, 105,109,110 Chamberlain, Neville, 131 Chersonites, 114 Chile, 63,133 China, 25,134,146 authoritarianism in, 64-65, 71 crime in, 26 Cultural Revolution, 149 economy, 25, 65, 71 environmental problems, 25-26 human rights, 65, 99,139 Inner, 50 Nixon/Kissinger policy in, 132-33, 148-50 population growth, 25-26 Christianity, 6, 59-60, 79, 94, 98,112 Edward Gibbon on, 115-16,135 Orthodox, 28, 29, 59 in West Africa, 6,15 Christopher, Warren, 127 Churchill, Winston, 170 Clarke, Jonathan, "Searching for the Soul of American Foreign Policy," 139-40 Claudius, 113 Clausewitz, Carl von, 46 climatic change, 52-54,106 Clinton, Bill, 20,140,147,157 cocoa economy, 10 Cold War, 20,102,144,154,171,177 democracies after, 60-98 end of, 18,40, 60, 69, 71,103,141, 154,171,173,177 foreign policy, 20-21,103,148-51, 154,171 peace, 171,177-78 Colombia, 49, 63,177 colonialism, 38-39,102 and cartography, 38-40 French, 10-14,148,158 in West Africa, 10-15 communalism, 6 communism, 13, 49, 73 end of, 60, 69, 71,144 / 189 computers, 86, 93 Comte, Auguste, 180 Conakry, 9,17-18 Congo, 70 Congressional Black Caucus, 55 Conrad, Joseph, 159 Heart of Darkness, 159,160 Nostromo: A Tale of the Seaboard, 157-68 conservatism, 119,136,181 Constantinople, 33 Coon, Carleton Stevens, 35 corporate power, 175 rise of, 80-95, 96 crime, 4 in China, 26 as human trait, 175-76 and Turkey, 32, 41 in United States, 84-86 and war, 48-49,99-104 in West Africa, 4-7,12-15, 26,49, 55 Croatia, 47,102 Cromwell, Oliver, 68, 73, 79, 95 cultural and racial conflict, 19, 26-37, 55-56,122 in Balkans, 29-30, 99-103 and future of war, 43-50 and Islam, 28-30 and mass murder, 99-104 in Turkey, 28-29, 30-37 in United States, 54-56, 87, 94,171 currency, 12-13 Cyprus, 144 Czechoslovakia, 13, 65, 69,106,131 D deforestation, 7, 8-9,18, 20, 25, 52 de Gaulle, Charles, 148 democracy, 21, 59-98,119,122,163, 141,180 in Africa, 62, 63, 66-71, 77-78, 81 early American, 61, 67-68, 95 and ethnic politics, 68-70,102 in Haiti, 65-66,157-58 and hybrid regimes, 78-80, 94, 96,98 190 / I N D E X democracy (cont'd) in India, 51, 71 in Latin America, 63-64, 70, 75 and oligarchy, 95-98 post-Cold War, 60-98 and rise of corporate power, 80-95, 96 in Rome, 113-14 in Russia, 64, 67 and shrinking domain of "politics," 83-89 and umpire regimes, 89-95 value-neutrality of, 61-72 and "world government," 80-83 Deng Xiaoping, 136 Deudney, Daniel, 23 Diana, Princess of Wales, 173 Diani, Marco, 158 Dickens, Charles, 17 Bleak House, 119-20 Diocletian, 113 disease, 3, 20, 51, 57,130,176 in Africa, 3, 7, 9,16-18,121 see also specific diseases displaced-persons camps, 8 Doe, Samuel, 48 Dreiser, Theodore, 87 drugs, 86 cartels, 7,13, 50, 78,106 smuggling, 57,107,109,176,177 Dubrovnik, 47 Dulles, John Foster, 129 E Eagleburger, Lawrence, 127 East Germany, 13,103 Economist, The, 128 economy, 45,46, 67, 80, 96,116 in China, 25, 65, 71 and corporate power, 80-95 in India, 51, 71,120 in Israel, 41 in West Africa, 10,12,13,15 world, 76-77, 80-83,182-83 education, 8, 45,157 and corporate power, 85 political science, 158,167-68 in Turkey, 33 in United States, 54-55 women's, 123 Egypt, 20, 24, 32, 36, 53-54, 71,145, 148 Aswan High Dam, 36 climatic change, 53 Eisenhower, Dwight D., 97,146 Eisner, Michael, 88 El Salvador, 49 Ends of the Earth, The (Kaplan), 146 enlightened despotism, 24, 61, 66, 71-73 Enlightenment, 24, 38, 60, 61, 69, 86, 114,116,135 entertainment, 88,173-75,183 environmental degradation, 18-26, 27, 42 in China, 25-26 deforestation, 7-9,18, 20, 25, 52 and national security, 19-26 rising water levels, 20, 24-25, 53 water shortages, 20, 21, 24, 25 in West Africa, 7-9,18, 25 Ethiopia, 15, 20, 38,100,103,174,178 ethnic cleansing, 69-70 ethnic politics, 18,19, 26-37,122,141 Arab-Israeli, 30, 41, 57,148-52 cultural and racial conflict, 26-37, 99-104 and democratization, 68-70,102 and environment, 20, 25, 27 and mass murder, 99-104 Euripides, 89 Executive Outcomes, 81 existentialism, 175 expatriatism, 92-93 Eyadema, Etienne, 12 F family, 47 planning, 122,123 in West Africa, 6-7 I N D E X famine, 15, 65,166 Ferguson, Adam, 89 feudalism, 38, 39 Finley, Sir Moses, 97 Politics in the Ancient World, 92 Focus on Africa, 6 Ford, Gerald, 148 Foreign Affairs, 20-21, 26, 28 foreign policy, 18,19-20 Cold War, 20-21,148-51,154,171 development assistance, 120-23 early warning, 122,123 and environmental degradation, 19-26 idealism, 137-39 intervention, 122,123-25,139-40 and Henry Kissinger, 127-55 post-Cold War, 69,171-72 proportionalism for Third World, 119-25 Fort Bragg, North Carolina, 105-10 France, 92 colonialism, 10-14,148,158 Revolution, 116,134,135 Franco-Prussian War, 130 Franklin, Benjamin, 61 Freetown, 4, 8, 9,48 Fujimori, Alberto, 75 Fukuyama, Francis, 22, 24 / 191 G Gordion, 112 Goths, 114 government, 49 early American, 61, 67-68, 95 hybrid regimes, 73-80, 94, 96, 98 oligarchy, 60-61, 95-98 and peace, 174-75 post-Cold War democracies, 60-98 and rise of corporate power, 80-95, 96 and shrinking domain of "politics," 83-89 in West Africa, 7-9,12-15,48, 63,81 "world," 80-83 see also specific forms of government Great Britain, 3, 68, 79 appeasement policy, 128,131-33,170 and Castlereagh, 130,138,143 colonialism, 102 Greece, 132,138 ancient, 50, 60-61, 73, 89, 94, 95-96, 98 democracy in, 69-70 oligarchy, 60-61, 95-96 Greenberg, Alan, 16 Greene, Graham, The Heart of the Matter, 9 Grenada, 139 Guinea, 8,13,17-18 Gulf War (1991), 29,40,101,105,133, 181 Garreau, Joel, The Nine Nations of North America, 56 gated communities, 83-84,176 Germany, 29, 54,114,130,141 Nazi, 72, 73, 99,100,101-3,128,129, 133-35,170,174 post-World War I, 62,134,170 post-World War II, 102 Ghana, 8,12,16, 70 Gibbon, Edward, 111, 135 The History of the Decline and Fall of the Roman Empire, 111-17 globalization, 80-98,182 Gondama, 8 Haig, Alexander, 127 Haiti, 45, 55,101,107,121,139 democracy in, 65-66,107,157-58 Hapsburg Empire, 130,141 Harrington, James, 73, 89 Harvard University, 26,129 Hegel, Georg Wilhelm Friedrich, 24 Helms, Christine M., 42 Henderson, Loy, 144 Herodotus, 30 Herzen, Alexander, 98 Hinduism, 27, 52 H 192 / I N D E X Hitler, Adolf, 61,100,101,114, 128-33,170,174 Hobbes, Thomas, ix, 24, 61,66, 72-73, 75-76 Holocaust, 48, 72, 73, 99,100,101-3, 128,129,133-35 homelessness, 24 Homer-Dixon, Thomas Fraser, 37,45, 52 "On the Threshold: Environmental Changes as Causes of Acute Conflict," 21-26, 29-30 Houphouèt-Boigny, Félix, 11-12 human rights, 72, 99 in China, 65, 99,139 and mass murder, 99-104 Hume, David, 115 Hungary, 20, 65 Huntington, Samuel P., "The Clash of Civilizations," 26-29 Hussein, King, 71,148 Hussein, Saddam, 21, 63,101,133, 181 hybrid regimes, 73-80,94,96, 98 I idealism, 69,99-104,137,177 of Isaiah Berlin, 72-73 foreign-policy, 137-39 and mass murder, 99-104 India, 19, 25, 34, 50-53,179 climatic change, 52-53 cultural conflict, 27, 43, 51-52 economy, 51, 71,120 government, 51-52, 71 population, 51 Indonesia, 21, 39 industrialization, 24,87,114 intelligence, military, future of, 105-10 Iraq, 22, 37, 38-40,41,94,134,139 Gulf War, 40,101,133 Isaacson, Walter, 150 Islam, 6,17,18, 35, 52, 71 and Arabs, 38,41-42, 53 clash between Turks and Iranians, 28-29 cultural war and, 28-30 North Africa, 6 spread of, 38,41-42 terrorism, 47 in Turkey, 28-29, 30-37 in West Africa, 6,15, 35 Islamic Revolution (1978), 36 isolationism, 121,138,140,180,182 Israel, 30, 36 -Arab conflict, 30,41-42, 57,148-52 economy, 41 Lebanese invasion, 151-52 military-security system, 104 Nixon/Kissinger policy, 148 peace treaty with Egypt (1979), 148 Istanbul, 43 Italy, 62 collapse of Rome, 111-17 Ivory Coast, 4, 8,9-11,14,15 AIDS in, 16 population, 11-12 J Japan, 27,41, 54,114,170 Jews, 114,115 in Palestine, 134 persecution of, 102,104,128,134-35 Jiang Zemin, 136 Johnson, Lyndon B., 144,149 Johnson, Prince, 48 Jordan, 42,133,148,151,152 Judd, Dennis, 84 juju spirits, 6, 30 International Security, 21 intervention policy, 122,123-25, 139-40 Iran, 28, 29,40,110,134,144 oil, 36, 67 and Turkey, 28-29,40-41, 50 K Karachi, 52, 74,109 Kedourie, Elie, 102 Keegan, John, A History of Warfare, 48 I N D E X Kennan, George F., 30,124,133,137, 144 Foreign Affairs article (1947), 20-21 Kennedy, John F., 144 Khartoum, 62,166 Khmer Rouge, 99-101,102,146 Kirkpatrick, Jeane, 139 Kissinger, Henry, 72,127-55 on appeasement, 128,131-33,143, 150 German-Jewish background of, 128, 133-34,140 and Nixon, 132-33,140,145-52 Nuclear Weapons and Foreign Policy, 129 reputation of, 127-28,143,152, 155 on Vietnam, 139,140,144-52,155 A World Restored: Metternich, Castlereagh and the Problems of Peace 1812-1822, 98,128-45, 153-55 Kohut, Andrew, 139 Korea, 124,139,146,171 Korean War, 146,181 Kosovo, 57,140 Kurdistan, 63 Kurds, 38,40-41,43, 50,101 Kurth, James, 54 Kuwait, 133 L Lagos, 4,15, 52 language, 27 Latin America, 83 democratization of, 63-64, 70, 75 see also specific countries Lebanon, 49, 79,151-52 Lee Kuan Yew, 76-77,174 Levin, Bernard, 133 Liberia, 8,44,47 civil war, 6, 8,48 Lincoln, Abraham, 88 literacy rates, 32, 62, 69, 97,120,122, 123,125 / 193 literature, 157-68 Conrad's Nostromo, 157-68 and policy makers, 158-59,168 Lomé, 12 London Observer, The, 13 Los Angeles Times, 55 Lowell, Robert, "For the Union Dead," 184-85 M Madison, James, 61, 95 The Federalist, 93,116 mafias, 49, 50 malaria, 3, 9,16-17 Malaysia, 80-81 Mali, 63 Malraux, André, Man's Fate, 44 Mandelbaum, Michael, 20 maps, 7,10, 37-43 and cartography, 19, 37-43 and colonialism, 38-40 future, 50-57 political, 19,41-43 as three-dimensional hologram, 50-51 and Turkey, 37-43 Marshall, George, 152 mass culture, 90-95 mass murder, 99-104,114 in Bosnia, 99-103 and idealism, 99-104 in Rwanda, 68-69, 99-101 Matthews, Jessica Tuchman, 53-54 Mazrui, Ali A., 13-14 media, 173-75,180 Menem, Carlos, 64 Mengistu Haile Mariam, 100,103, 174 Mesquida, Christian G., 76 Metternich, Prince Clemens von, 128, 130-42,153-54 Mexico, 56, 63, 83,177 -U.S. border, 50-51, 97,119 Middle Ages, 46-47, 50, 59, 93, 94, 98 194 / I N D E X middle class, 44, 70, 95,114,122,136, 157 African, 121 apathy, 89-90 and corporate power, 83-88 and democratization, 64, 70 world, 182 Middle East, see specific countries Middle East peace conference (1973), 145 migrations of populations, 20, 26, 51 Milosz, Czeslaw, 91 Mogadishu, 166 Mohamad, Mahathir, 80-81 money laundering, 13,109 Montesquieu, Baron de, 113 Morgan, J.
Airbnb, bounce rate, call centre, carbon footprint, Deng Xiaoping, financial independence, follow your passion, income inequality, iterative process, Ralph Waldo Emerson, search engine result page, Skype, software as a service, South China Sea, Steve Jobs
When talking to customers, describe situations where people went for the lower cost option only to have a cheap product that broke a week or two after they bought it. Focus on how reliability and durability set your product apart. However, if you are selling products that are generally available or commoditized emphasize the customer service or satisfaction guarantee. FINDING YOUR SALES STRATEGY “Cross The River By Feeling The Stones” — Deng Xiaoping Taking into account the tips above regarding general sales skills and industry-specific knowledge, you will ultimately develop your own unique sales strategy. In doing so, Deng Xiaoping’s advice proves helpful; to cross the river “by feeling the stones” basically means that you should move slowly and feel out each step before you move to the next one. Start by offering what you think is a reasonable product at a fair price, and try out different tactics to improve effectiveness. But don’t change your whole approach if something is not working, move carefully and identify just what it is that will set you apart from the pack.
The Origins of Political Order: From Prehuman Times to the French Revolution by Francis Fukuyama
Admiral Zheng, agricultural Revolution, Andrei Shleifer, Asian financial crisis, Ayatollah Khomeini, barriers to entry, Berlin Wall, blood diamonds, California gold rush, cognitive dissonance, colonial rule, conceptual framework, correlation does not imply causation, currency manipulation / currency intervention, demographic transition, Deng Xiaoping, double entry bookkeeping, equal pay for equal work, European colonialism, failed state, Fall of the Berlin Wall, Francis Fukuyama: the end of history, Francisco Pizarro, Hernando de Soto, hiring and firing, invention of agriculture, invention of the printing press, Khyber Pass, labour market flexibility, land reform, land tenure, means of production, offshore financial centre, out of africa, Peace of Westphalia, principal–agent problem, RAND corporation, rent-seeking, Scramble for Africa, spice trade, Stephen Hawking, Steven Pinker, the scientific method, The Wealth of Nations by Adam Smith, Thomas L Friedman, Thomas Malthus, trade route, transaction costs, Washington Consensus
By breaking the link between individual effort and reward, collectivization undermined incentives to work, leading to mass famines in Russia and China, and severely reducing agricultural productivity. In the former USSR, the 4 percent of land that remained privately owned accounted for almost one-quarter of total agricultural output. In China, once collective farms were disbanded in 1978 under the leadership of the reformer Deng Xiaoping, agricultural output doubled in the space of just four years. A good deal of theorizing about the importance of private property rights concerns what is called the tragedy of the commons. Grazing fields in traditional English villages were collectively owned by the village’s inhabitants; since no one could be excluded from access to these fields, whose resources were depletable, they were overused and made worthless.
Even today, the Chinese family remains a powerful institution that jealously guards its autonomy against political authority. There has been an inverse correlation between the strength of the family and the strength of the state. During the decrepitude of the Qing Dynasty in the nineteenth century, southern China’s powerful lineages took over control of most local affairs.24 When China decollectivized under Deng Xiaoping’s household responsibility reforms in 1978, the peasant family sprang back to life and became one of the chief engines of the economic miracle that subsequently unfolded in the People’s Republic.25 The Legalists, by contrast, were forward looking and saw Confucianism and its glorification of the family as obstacles to the consolidation of political power. They had little use for Confucianism’s delicate moral injunctions and obligations.
It endures in the countless Chinese mothers around the world who save money to send their children to the best possible schools and push them to excel in standardized examinations. The self-satisfaction that led Emperor Chengu’s successors to cancel long-distance voyages has been replaced by an extraordinary willingness of Chinese leaders to learn from foreign experiences and adopt them when they seem practically useful. It was Deng Xiaoping, the statesman who inaugurated China’s opening to the world, who said, “It doesn’t matter whether the cat is white or black as long as it catches mice.” It is far likelier that cultural attitudes toward science, learning, and innovation explain why China did so poorly in the global economic race in previous centuries, and is doing so well at the present, rather than any fundamental defect in its political institutions.
bank run, banking crisis, Ben Bernanke: helicopter money, Berlin Wall, Bernie Madoff, Bretton Woods, British Empire, Buckminster Fuller, California gold rush, currency manipulation / currency intervention, Deng Xiaoping, diversified portfolio, Elliott wave, fiat currency, fixed income, Fractional reserve banking, housing crisis, If something cannot go on forever, it will stop, index fund, Lao Tzu, margin call, market bubble, McMansion, money: store of value / unit of account / medium of exchange, mortgage debt, oil shock, peak oil, pushing on a string, reserve currency, rising living standards, road to serfdom, Ronald Reagan, Saturday Night Live, short selling, Silicon Valley, transaction costs
No matter what happens to food production, whether it goes up, down, or stays the same, there are more bidders of greater means at the auction. Prices in terms of U.S. dollars will climb. The Department of Agriculture reports that food accounts for 35 percent of household expenditures in China. Only 5.7 percent of Americans’ household expenditures go to food. That percentage will go up, particularly when a currency of declining value is used to bid in global auctions. Natural Resources Deng Xiaoping, the Chinese reformer, has to be given enormous credit for cracking open a door to the middle class for such a great number of the world’s people. The fall of the Soviet Union opened it a little wider. India, too, has been slowly shedding its socialist somnolence. With an added entrée to the developed world thanks to the English language left behind by British occupiers, India has experienced annual growth of 7 percent for a decade and falling poverty rates.
See Gold coinage; Silver coinage Collectibles, precious metals as Command economy as anti-American bank nationalization currency controls features of financial behavior, reporting and poverty shortages and rationing wage and price controls Commodities as investment exchange-traded funds (ETFs) exchange-traded notes (ETNs) Rogers International Commodity Index (RICI) Consumer Price Index (CPI), core inflation rate as alternative Consumption, decline and deflation Core inflation rate Corzine, Jon Cost-push inflation Counterfeit, gold coins Countrywide Financial “Crack-up boom,” Credit, artificial and malinvestment Credit crisis Credit Suisse Currency controls, and monetary breakdown foreign. See Foreign currency as investment hard currencies DB Commodity Services LLC, Debt, federal. See Federal debt Debt securities exchange-traded notes (ETNs) U.S. government. See Treasury bonds Deflation bailout, effects on economic impact of myths about “pushing on a string” argument De Gaulle, Charles Deng Xiaoping Digital gold currencies GoldMoney Dollar as currency reserves deterioration, and oil-pricing alternatives devaluation and Fed overseas holdings Dollar standard benefits to U.S. global dumping of Economic collapse, signs of Economic crisis (2008- ) bailouts command economy threat credit crisis and dollar standard federal debt government actions. See Federal Reserve housing crisis impact of and interest rate cuts Iraq war, cost of and job losses See also specific topics e-gold Elements ETNs Emergency Economic Stabilization Act (2008), operation of Energy independence, myth of Energy trusts, recommendations Enerplus Resources Fund Trust (ERF) Engelhard England coinage debasement, impact of goldsmith as banker inflation and paper money See also Great Britain Erhard, Ludwig Ethanol Euros euro ETF (FXE) replace dollar Exchange-traded funds (ETFs) bond cautions about commodities-based foreign currency-based gold-based nationalization risk oil-based silver-based trading/operation of Exchange-traded notes (ETNs) commodities-based Elements ETNs Fannie Mae China/Japan holdings Federal debt amount of (2009) debt ceiling, increase foreign holders of hidden debt infinite horizon discounted value concept inflation as remedy interest expense on Medicare Part D, unfunded liability example monetizing debt percentage of GDP in trillions Federal deposit insurance Federal Reserve auditing of bailout funds cooling economy, actions for criticisms of system and debt monetization and devaluation of dollar federal funds rate fractional reserve banks inflation, creating by interest rate cuts and monetary policy and mortgage meltdown open market operations and Plunge Protection Team and politicized money public/private nature of secrecy related to stimulating economy, actions for as unconstitutional Federal Reserve Act (1913) Federal Reserve Notes Fiscal policy, defined Fisher, Richard Florin Food production demand, future view See also Commodities as investment Ford, Gerald Foreign currency, hard currencies Foreign currency as investment digital gold currencies exchange-traded funds (ETFs) speculative nature of Foster, Richard S.
Planet of Slums by Mike Davis
barriers to entry, Branko Milanovic, Bretton Woods, British Empire, Brownian motion, centre right, clean water, conceptual framework, crony capitalism, declining real wages, deindustrialization, Deng Xiaoping, edge city, European colonialism, failed state, Gini coefficient, Hernando de Soto, housing crisis, illegal immigration, income inequality, informal economy, Internet Archive, jitney, Kibera, labor-force participation, land reform, land tenure, low-wage service sector, mandelbrot fractal, market bubble, megacity, microcredit, New Urbanism, Ponzi scheme, RAND corporation, rent control, structural adjustment programs, surplus humans, upwardly mobile, urban planning, urban renewal, War on Poverty, Washington Consensus, working poor
In a thought-provoking article comparing recent inner-city redevelopment in the PRC to urban renewal in the United States in the late 1950s and early 1960s, Yan Zhang and Ke Fang claim that Shanghai forced the relocation of more than 1.5 million citizens between 1991 and 1997 to make way for skyscrapers, luxury apartments, malls, and new infrastructure; in the same period nearly 1 million residents of Beijing's old city were pushed into the outskirts 29 In the beginning, urban redevelopment in Deng Xiaoping's China, as in Harry Truman's America, consisted of pilot housing projects that seemed to pose little threat to the traditional urban fabric. When localities scaled up these experiments and accelerated the pace of housing redevelopment, however, there was not a provision in the programs to limit market-rate housing and nonresidential uses. Therefore, moderate and low-income housing quickly lost favor: developers have exploited the loophole to build as many luxury apartments and commercial developments as possible.
Chapin, Edwin 22 slum-dwellers 23, 27 ChapJin, Susan 140, 149 squatters 29, 33, 39, 43 Chatterjee, Gautam 18 state repression 110-11 Chatterjimitra, Banashree 100 traffic accidents 132-3 chawls 34, 36, 178, 202 urbanization 58 Chennai 170, 190 youth disaffection 202 Cheru, Fantu 148 Zamalek 115 Chicago 16 Calcutta see Kolkata children Caldeira, Teresa 118 abandoned 205 Cali 49 child labor 181,186-8 callejones 34 malnutrition 159, 160, 172 Cambodia 15, 54 mortality rates 25, 146, 148-9, Cape Town 60-1, 117, 146 capitalism 23, 50, 80, 199, 202 China 60 crony 92 161, 171, 172, 200 witchcraft 192, 196-8 Chile 109, 156, 157 China informal sector 179,181 agricultural land 135 structural adjustment programs automobiles 132, 133 153 Caracas 54-5, 59, 93 economic development 168-70 evictions 103 housing 176 illegal land speculation 88 riots 162 industrial growth 13 soil instability 122-3 informal sector 177, 178 squatters 38, 39-40 public housing 31, 62 Caribbean 148 rural migration 53-4 Carlos Alfredo Diaz 49 sewage 140 Casablanca 201, 202 slum population 24 Castells, Manuel 89, 176, 185n40 social struggle in 91 Castro, Fidel 61 urbanization 2, 6-7, 9, 11-12, 60 Ceylon 52 women 158 Chad 23 Chittagong 147 The Challenge of Slums 20-1, 22, 25, Choguill, Charles 74 153, 154, 163, 174-5 Chossudovsky, Michel 148 Chamoiseau, Patrick 174, 198 churches 195, 196-7 Chang, Ha-Joon 154 Cite-Soleil 92, 142 Chant, Sylvia 158, 184 Ciudad Juarez 16 civil society 76 housing 66 class see social class pollution 133 Clausen, Eileen 131-2 population 4 clientelism 57, 58, 76, 77 refugees 55—6 Cochabamba 25 satellite cities 99 Colombia 48, 49, 165, 200 sewage 340 Colombo 11, 32, 86, 136, 188 slum-dwellers 18, 23, 26 colonialism 51-3, 96, 97, 114, 139 Congo, Democratic Republic of (formerly Zaire) 16, 53, 191-8 urban/rural hybridization 10 Demarest, Geoffrey 205 democracy 68, 154 Connolly, Priscilla 17 Deng Xiaoping 103 corruption 88, 125-6, 150, 165 deregulation 15 Costa Rica 157, 160 desakotas 9n27, 10, 11 criminals 41, 49 Devas, Nick 68 Cuba 61, 62 development agencies 99 Czegledy, Andre 117 Devisch, Rene 191, 193-4, 195, 196 Dewar, Neil 97 Dhaka Dabu-Dabu 104-5 Dadaad 48 child labor 186 Dakar 46, 53, 74, 98, 102 disease 147 dalals 41 environmental disasters 129 Dar-es-Salaam 16, 51, 74, 134, 146, evictions 111 fires 128 155, 182 Darman, Richard 153 Grameen Bank 183 Darwin, Charles 182 hazardous slum locations 121 Das, Arvind 181 inequality 95-6 Das, P.K. 77-8 informal sector 177 Datta, Kavita 72 land speculation 86 Davis, Diane 55 population 4, 5 De Boeck, Filip 191-2, 194, 197 poverty 191 debt crisis 14, 84, 149, 152, 153-4, refugees 55-6 renting 43 159 deindustrialization 167 Delhi 33, 36, 356, 159, rickshaws 189 sewage 138, 139 slum-dwellers 23, 26, 27 evictions 100 urbanization 2 fires 128 water sales 145 Dhapa dump 47 Dharavi 92, 93 Diaz Ordaz, Gustavo 60 Dick, Philip K. 120 Dickens, Charles 23 disease 52, 142-50, 172 domestic service 188 Dominican Republic 105-6 Drakakis-Smith, David 10 Dublin 16, 31, 175 Diindar, Ozlem 85 Durand-Lasserve, Alain 91 Dushanbe 204 Dutton, Michael 112 earthquakes 126—7 East Asia 6-7, 12-13, 37 Eastern Europe 167-8 Eckstein, Susan 43 economic development 168-73 Ecuador 159 Edwards, Michael 35 Egypt land speculation 85 poverty 165 public housing 69 slum population 24 squatting 38 state repression 110 urbanization 9 El Paso 42 El Salvador 204 Elbasan 168 elites 69, 96, 119, 120, 149-50 see ako middle classes Eltayeb, Galal Eldin 21n3 employment 27, 29, 30, 4 6 - 7 child labor 181, 186-8 China 168-9 India 171, 172-3 informal sector 157, 159, 160^-1, 167, 175-94, 198 structural adjustment programs 157, 163-4 surplus labor 182, 199 women 158-9 see also unemployment empowerment 75 Engels, Friedrich 20, 23, 137, 138 England 137-8 entrepreneurs 41, 46, 80, 144-5, 179, 180, 182 environmental issues 121-50 epidemics 52 Escobar, Augustin 160 Estrada, Joseph 104 Ethiopia 23, 24 ethnic violence 185 Etienne, Yolette 184 Europe 31, 183 Evers, Hans-Dieter 65, 83, 183 evictions 98, 99-103 Bangkok 65 beautification campaigns 104-8 Delhi 66, 100 Manila 92, 99 excrement 137—42 exploitation 181, 186-90 Fabre, Guilhem 54 Faisalabad 145 Fakulteta 167 family separation 160,161 Fang, Ke 103 favelas 27, 34, 93, 202 demolition of 108 Gooptu, Nandini 52, 69, 97-8, 140n67, 178 hazardous locations 122 Gorky, Maxim 22 population growth 17 Goulart, Jao 62 regularization projects 81 Graham, Stephen 205-6 water contamination 136 GrameenBank 183 see also shantytowns grassroots groups 76, 77 Findley, Sally 14n41 Great Britain 137 fire 127-8 gross domestic product (GDP) 13 Firozabad 187-8 Guadalajara 159-60 Flight, Thomas 83 Guangzhou 16 flooding 123-6 Guatemala City 32, 126, 188 Gandy, Matthew 128-9 Guldin, Gregory 8 - 9 Guayaquil 16, 159 gated communities 115—20 Gauteng (Witwatersrand) 4, l l n 3 1 Haiti 16, 184 Gaviria, Cesar 165 Hanoi 135-6, 139, 145 Gaza 48 Harare 96-7, 102, 113-14, 160-1 Gazzoli, Ruben 77 Hardt, M. 201 GDP see gross domestic product Harms, Hans 109 gecekmdus Harris, Nigel 14 37, 38-9, 57, 85, 127, 136, 202 Hart, Keith 178 Geddes, Patrick 134 Haussman, Baron 64, 98 Geertz, Clifford 182 Havana 32, 61 gentrification 43, 73, 85 health issues 142-50,159 geology 122-3 see also sanitation Ghana 35, 141-2, 148 Hewitt, Kenneth 126 Ghannam, Farha 110-11 highways 118-19 Giddens, Anthony 119 Hilat Kusha 47 Gilbert, Alan 43, 50, 81-2, 90 HIV/AIDS 143, 149, 150, 153, GINI coefficients 157,165,166 160-1, 192, 196 Glasser, David 32 Hodges, Tony 102 globalization 11, 150, 163, 168, Hoffman, Kelly 180 174 Goma 48 homelessness 36-7 Hong Kong 3 1 , 3 5 , 3 6 Gonzalez, Mercedes 160 evictions 102 "good governance" 79, 82 gated communities 115 Hong Kong (Cont'd.) public housing 62, 63-4 Triads 41 Horton, Richard 147 middle class 150 sewage 139-40 slum improvement projects 78-9 slum population 24 House, William 180 surplus labor 199 housing 27-9, 30, 176, 200 urbanization 8, 9, 16, 55—6 Beijing 103 individualism 184 hand-me-down 31—4 Indonesia 10, 24, 26, 177 privatization 63, 71 Indore scheme 78-9 public 31, 61-7, 69 industrialization 13, 14, 16, 57, 147 Russia 167 inequality 7, 95, 154, 157-8 self-help 71, 72, 81-2, 90 Africa 96-7 Howard, Allen 97 Angola 164 human organ trade 190 China 168 Human Rights Watch 106,186,187 Colombia 165 Huntington, Samuel 56 India 97 Hyderabad 8, 56, 88, 128, 170 informal sector 181 Hylton, Forrest 201 Pakistan 166 hypercities 5 Russia 166 transport 131-2 IDPs see internally displaced people ILO see International Labour Organization infant mortality 25, 146, 148-9, 161, 171, 172, 200 informal sector 17, 157, 159, 160-1, IMF see International Monetary Fund 167, 175-94, 198 imperialism 76, 78, 174 see also street vendors India inner city poverty 31—7 agricultural land 135 inquilinatos British colonialism 52 insurgency 203-4 34 child labor 187-8 internally displaced people (IDPs) 48 economic development 168, International Labour Organization 170-3 exclusionary geography 97-8 (ILO) 17, 156, 189 International Monetary Fund (IMF) housing policy 34, 65-6, 69 14, 15, 18, 70, 84, 200 human organ trade 190 Congo 192, 193, 194 informal sector 177,178 protests against 161—3 interethnic solidarity 185 structural adjustment programs land ownership 84 62, 148, 152-3, 155, 193 taxation 68,155 Soweto 44-5, 142 involution 182-3,201 Jones, Gareth A. 72 Iran 24, 48, Jones, Gareth Stedman 82-3 Ishash al-Turguman 110 Josaphat, Lovly 142 Islamism 165 Joseph, Jaime 183-4 Israel 111 Istanbul 37, 38-9, 42, 57, 202 Kabul 48, 134, 204 earthquakes 127 Kakkar, Prahlad 140 Omerli forest 136 Kalle, Pepe 121 population 4 Kampala 137, 142 property investment 85 Kamwokya 142 Ivory Coast 156 Kanji, Nazneen 160-1 Kanpur 140n67 Jacquemin, Alain 68-9 Kaplan, Robert D. 202 Jakarta Karachi child labor 188 dalals 41 desakotas 10 informal sector 177 evictions 102 land speculation 84, 88 gated communities 116 military planning 204 land ownership 91 population 4, 5 motorization 131 refugees 55-6 NGOs 77 slum dwellers 18, 23, 26, 27, 31 pollution 129 waste disposal 134 population 4, 5 water sales 145 poverty 26 Kaunda, Kenneth 111 public housing 64 Keeling, David 39, 41 sewage 139 Kelly, Philip 10n30 state repression 112-13 Kenya 16, 18, 48, 87, 142 urbanization 1 Keyder, Qaglar 37, 57-8, 85 waste disposal 134 Khan, Akhtar Hameed 41 Jamaica 67 Khan, Azizur 168 Java 16, 182 Khartoum Jellinek, Lea 77 flooding 124 Jiang Zemin 168 growth of 16, 37 Johannesburg 33, 116-17, 118 Hilat Kusha 47 deindustrialization 13 informal sector 177 geology 122 refugees 48 Khartoum (Cont'd.)
The Haves and the Have-Nots by Branko Milanovic
Berlin Wall, Branko Milanovic, colonial rule, crony capitalism, David Ricardo: comparative advantage, deglobalization, Deng Xiaoping, Fall of the Berlin Wall, financial deregulation, full employment, Gini coefficient, high net worth, illegal immigration, income inequality, income per capita, Joseph Schumpeter, means of production, open borders, Plutocrats, plutocrats, purchasing power parity, Simon Kuznets, very high income, Washington Consensus
The economic rise of Pacific Asia, spreading from Japan to Singapore to South Korea to Taiwan, then to Malaysia, increased wealth in these regions to the level of advanced Western countries. These countries became practically a part of the first (rich) world. They also developed institutions (democracy) similar to those existing in the first world. In addition, China’s economic rise combined with the ascendance of Deng Xiaoping and his conservative successors who showed a marked lack of interest in “typical” third world issues further undermined the cohesiveness of the third world. India, too, became much more economically than ideologically minded. It did not seem clear any longer what the third world countries may have in common, and the Non-Aligned Movement, so active in the past, became moribund. Issues of economic growth (or lack of it), religious cleavages, and regional tensions now visibly replaced the erstwhile, always more proclaimed than real, third world solidarity.
society and taxation and wages and welfare Carnegie, Andrew Cassius Dio Cavafy, Constantine Center of Reception and Emergency Aid, Italy Chad Charity Chávez, Hugo Chelsea soccer club Chiang Kai-shek Chile China direct foreign investment in economic growth in GDP per capita in Gini coefficient for global inequality and growth rate in household surveys in income distribution in intercountry inequality and interpersonal inequality and population in price level in Chongqing, China Christianization Citizenship Clark, Gregory Class income distribution and interpersonal inequality and society and solidarity and Clinton, Bill Cohen, Joshua Collins, Reverend William Colquhoun, Robert Commodus (Emperor) Communism intercountry inequality and interpersonal inequality and The Communist Manifesto (Marx) Communist Party Congo Constantine the Great (Emperor) Coprosperity sphere Corsica Cosmopolitans (in political philosophy) Crassus, Marcus Croesus, Greek King Cuba Cultural Revolution (China) Czech Republic Czechoslovakia Dalton, Hugh Darcy, Mr. Das Kapital (Marx) De Silva, Lula Deglobalization See also Globalization Democracy Democratic Party, Democrats Deng Xiaoping Denmark Developed countries household surveys and interpersonal inequality and technology and Discrimination Disney Productions Djilas, Milovan Domestic Servant Pocket Register Dominican Republic Dostoyevsky, Fyodor Dreams from My Father (Obama) East Germany Economic development in China education and income distribution and in India interpersonal inequality and social monopoly and taxation and technology and Economics geopolitics and income distribution and neoclassical Edgeworth, Francis Education economic development and interpersonal inequality and poor and socialism and taxation and wealth and Egypt “80/20 Law,” El Salvador Elites communist income distribution and interpersonal inequality and Employment government socialism and Engels, Friedrich England.
9 dash line, Admiral Zheng, anti-communist, Berlin Wall, British Empire, California gold rush, colonial rule, cuban missile crisis, Deng Xiaoping, European colonialism, facts on the ground, failed state, Fall of the Berlin Wall, Hans Island, LNG terminal, market fragmentation, megacity, Mercator projection distort size, especially Greenland and Africa, Mikhail Gorbachev, Monroe Doctrine, oil shale / tar sands, Scramble for Africa, South China Sea, trade route, transcontinental railway, Transnistria, UNCLOS, UNCLOS
The country had been put back together; Mao would spend the rest of his life ensuring it stayed that way and consolidating Communist Party control in every facet of life but turning away from much of the outside world. The country remained desperately poor, especially away from the coastal areas, but unified. Mao’s successors tried to turn his Long March to victory into an economic march toward prosperity. In the early 1980s, the Chinese leader Deng Xiaoping coined the term “socialism with Chinese Characteristics,” which appears to translate as “total control for the Communist Party in a capitalist economy.” China was becoming a major trading power and a rising military giant. By the end of the 1990s it had recovered from the shock of the Tiananmen Square massacre of 1989, regained Hong Kong and Macau from the British and Portuguese, respectively, and could look around its borders, assess its security, and plan for its great move out into the world.
See also Latin America and names of specific countries Central American Free Trade Agreement, 230 Cerrado, 215 Cha, Victor, 202 Chad, 109, 112, 116–17, 125 Charles XIII, 13 Charlie Hebdo massacre (2015), 106 Chechnya, 15, 18, 29, 183 Chiang Kai-shek, 43 Chile, 215, 217, 218, 220–21, 230–32, 232 China, 8–9, 36–37, 38–61, 55, 168–69, 171, 193 and Africa, 60–61, 84, 119, 122, 125, 126–31 Air Defense Identification Zone, 56–57, 81–82, 211 annexation of Tibet, 7, 41, 43–44, 46–50, 51, 178, 188–90 and Arctic/Arctic Circle, 249 as BRICS country, 235 deep-water port investments, 60 energy resources, 50, 56–58, 60, 81, 82–83 and India, 2–3, 46–49, 178, 188–91, 260 and Japan, 43, 55–56, 206, 209–13 and Korea, 194–96, 198–200, 203–4 land reclamation, 58–59 languages, 40, 50–51 laser technology, 262–63 and Latin America, 83, 226, 227–29, 230–31, 235 naval capacity, 6, 38–39, 53–60, 79, 81, 82, 192 and Pakistan, 46, 49, 60, 177, 179 railway to Tibet, 48–49 and Russia, 18, 33–35, 45 space exploration, 54, 262 and United Kingdom, 43, 44 and United States, 38–39, 78–83 Chou En-lai, 52 Christians and Christianity, 71, 91, 139, 143, 150, 164, 175, 190 Chukchi Sea, 240–41, 245 Churchill, Winston, 12 Clinton, Hillary, 79 Cold War, 81, 94, 107, 118, 198–200, 205, 221, 235, 251–53 Collective Security Treaty Organization (CSTO), 20 Colombia, 215, 218, 224, 230–31 Colorado, 62–63, 71 coltan, 119–20 Communism, 13–14, 16, 18, 34–35, 43–48, 51–52, 81, 83, 126, 165, 195–200, 209 Confucius, 41 Congo, 109, 112 Congo Rainforest, 118 Congo River, 109, 113 Congress of Vienna (1815), 99 Conrad, Joseph, 117 Costa Rica, 226 cotton, 179 Crete, 86–87 Crimea, 13, 21–27, 29, 30, 33, 35, 102, 107 Crimean War (1853–56), 13, 30 Croatia, 3, 86–87, 90, 91, 98 Cuba, 62–63, 80, 83, 226 and Africa, 125–26 and the United States, 72–73, 195 culture wars, 105–6 Cyprus, 86–87, 133, 141, 163 Cyrenaica, 116–17 Czech Republic, 14, 20–21, 32, 33, 86–87, 91 DAESH (Dawlat al-Islamiya f’al-Iraq wa al-Shams), 147 Dagestan, 18 Dalai Lama, 47, 51, 178, 189 Damascus, 145, 156–57, 160 Danube River, 30, 86–87, 89–90, 91, 113 Dardanelles Strait, 163–64 Dead Sea, 153 Declaration of Independence (1776), 67 demilitarized zone (DMZ), in Korea, 200–204 Democratic People’s Republic of Korea (DPRK). See North Korea Democratic Republic of the Congo (DRC), 109, 116, 117–20, 125–28, 130, 131 Deng Xiaoping, 44 Denmark, 8–9, 23, 86–87, 98, 101, 249, 251, 254–55 Destroyers for Bases Agreement, 75, 78 “developing world,” 117–18 Devon Island, 240–41 Dharamsala, 189 Diamond, Jared, 110, 113 Diaoyu/Senkaku Islands, 36–37, 55–56, 211 Diego Garcia, 7 Dnieper River, 29 Dniester River, 30 Dokdo/Takeshima Islands, 193, 206 Dominican Republic, 72 drones, 124–25, 148–49, 183, 186–87 drugs, 70, 224–25 Durand Line, 181, 182 Durand, Mortimer, 182 East African Community (EAC), 127, 131 East China Sea, 36–37, 38–39, 45, 54, 55–56, 75, 205, 206, 211 East Coast Plain (U.S.), 62–63, 65 East Siberian Sea, 240–41 East Turkestan, 50–51 economic crisis of 2008, 77, 93, 94–95, 100, 101, 107–8 Economic Exclusion Zone (EEZ), 249, 250, 254 Ecuador, 215, 218, 221, 229 EEZ (Economic Exclusion Zone), 249, 250, 254 Egypt, 109, 120–22, 133, 136, 141, 153, 154, 156, 159, 163, 166–67 Suez Canal, 22, 75–76, 109, 111, 121 Suez Crisis (1956), 75–76 Elbe River, 86–87, 100 Elburz Mountains, 157, 158 Elizabeth Islands, 240–41 Ellesmere Island, 240–41, 254 El Salvador, 226 energy resources in Africa, 60, 121, 122–23, 125–27, 131–32 in Arctic/Arctic Circle, 6–7, 34, 72, 242, 248–49, 251, 254, 255–57 and China, 50, 56–58, 60, 81, 82–83 hydroelectricity, 60, 120, 122, 131–32, 218 in Japan, 208 in Latin America, 223, 227, 233, 236–38 liquefied natural gas (LNG), 33 in the Middle East, 135, 150, 157, 159–61, 163 nuclear production, 159, 253, 255 in Pakistan, 177, 180 and Russia, 25, 30–35 shale gas production, 33, 82, 227, 236–37, 238 in United States, 33, 82, 84 English Channel, 98, 104 Erdogan, Recep Tayyip, 162–63, 164 Eritrea, 109, 112, 119, 120, 133 Estonia, 8–9, 14, 16, 18, 20–21, 27–29, 32, 86–87, 240–41 Ethiopia, 60, 109, 120, 121–22, 129, 133 ethnic Russians, 24–28 Euphrates River, 133, 135, 139, 261 Eurasian Union, 20 Europe.
An Edible History of Humanity by Tom Standage
agricultural Revolution, amateurs talk tactics, professionals talk logistics, Bartolomé de las Casas, British Empire, carbon footprint, Columbian Exchange, Corn Laws, demographic transition, Deng Xiaoping, Eratosthenes, financial innovation, food miles, Haber-Bosch Process, invisible hand, James Watt: steam engine, Louis Pasteur, Mikhail Gorbachev, special economic zone, spice trade, The Wealth of Nations by Adam Smith, Thomas Malthus, trade route, transatlantic slave trade, women in the workforce
In some areas senior Party officials managed to install local leaders who were prepared to reverse Mao’s collectivization and get agriculture going again, by granting small plots to peasant households for their own use, as had previously been done in the Soviet Union. Collective kitchens were also dismantled, officials who had been dismissed for their opposition to collectivization were given their jobs back, and in some cases punishment was meted out to those who had brutally enforced Mao’s policies. Deng Xiaoping, one of the reformers who had recognized that things had to change, famously declared at a meeting in March 1961 (at which Mao was not present) that “it does not matter whether a cat is black or white as long as it catches mice.” In short, ideological considerations were less important than providing food. But how could the reformers get Mao to agree to a retreat from collectivization, while enabling him to save face?
U.S. president Richard Nixon visited China in 1972, opening up trade between the two countries, and the first deal signed was an order for thirteen of America’s largest and most modern fertilizer plants—the biggest purchase of its kind in history. Within a few years China had overtaken the United States to become the world’s leading consumer of fertilizer, and then became the biggest producer. China also quickly adopted the new high-yield dwarf varieties of wheat and rice. But policy reforms were needed, too. After Mao’s death in 1976, reformers led by Deng Xiaoping concluded that agriculture was the bottleneck preventing further economic progress. They introduced a “two-tier” system in which households were allocated land and could decide what to cultivate on it. Provided they met a state quota of around 15 to 20 percent of their output, they could sell the rest and keep the proceeds. This provided farmers with incentives to increase production, and it proved very successful in the areas where it was first tested, so that it was introduced throughout China between 1979 and 1984.
Shadow of the Silk Road by Colin Thubron
This place, Huangling, is only a hundred miles north of modern Xian, but is lost deep in another time of erosion and poverty. Who will come? But the whole site is resurrecting as a national shrine, and already the older temple is filled with the memorial stelae of China’s statesmen offering homage to ‘the father of the nation’. Here is the stone calligraphy of Sun Yatsen from 1912, and of Chiang Kai-shek, predictably coarse; of Mao Zedong, who was later to condemn the Yellow Emperor as feudal; of Deng Xiaoping and the hated Li Peng. The clamour of restoration dies as you climb the track where it snakes through the cypress woods. From somewhere sounds the drilling of a woodpecker, and human voices echo and fade above you. Here and there a yellow flag on a bamboo pole marks the way. You are sinking back in time. Close to the summit the path becomes a stone stairway, and the trees turn phantasmal, their trunks twisted like sticks of barley-sugar or wrenched open on swirling slate-blue veins.
‘Maybe after a year I’ll have five people studying Chinese–all new friends. Here!…here!…and here!’ He planted them in space, like aerial seeds. ‘Soon maybe one of the friends will tell me: Oh, Mr Huang, I have good news–my father or my uncle works in a company that needs…’ So he was planning to make the move most coveted now: out of administration and into business. He had grown up in the new China of Deng Xiaoping, the land where riches were glorious, an arena of accelerating mobility. But I felt an amazed misgiving for him. I said: ‘Do you know anything about Brazil?’ ‘Brazil is in South America. It has some economic problems. Many people have no job. But some economies are better than here in China, some companies. I’ll make contacts in these businesses…’–he began planting airy seeds again–‘touch…touch…touch!
The Shah flees 1980–88 Iran–Iraq war 1989 Death of Ayatollah Khomeini The West 680 Battle of Kerbela 800 Charlemagne crowned Holy Roman Emperor 1099 First Crusade captures Jerusalem 1260 Mamelukes turn back the Mongols 1453 Ottoman Turks capture Constantinople 1498 Portuguese pioneer the seaway round Africa 1914–18 First World War 1917 The Russian Revolution 1939–45 Second World War 1984–97 Kurdish rebellions in Turkey 2001 World Trade Center attack 2003 US-led invasion of Iraq Searchable Terms Abbasid Caliphate Abdullah (Kurdish driver) Abdurahman, King Afghanistan journey in Afrasiab Africa, seaway round Aga Khan Ahmadjan Ahuramazda (god) Aimaq (nomads) Ain Jalut, battle of Akayev, President of Kyrgyzstan Akbar Khan al- for names beginning al- see under following element of name Alamut Alamut river Alaric Alexander the Great Alexandria Ali (statistician) Ali, Caliph Alik (ex-policeman) Aloban (Nestorian priest) Altun mountains Amanullah, King America see United States of America Amin, Hafezullah Amirali (artist and poet) Amithaba (Buddha of Infinite Light) Amu Darya/Oxus river Anatolia Ancestors, claimed see also Manas Andijan Andkvoi Annar (Kyrgyz) Ansari Antioch Antiochus IV, King Antoninus Pius, emperor Apak Hoja mausoleum, Kashgar Apollo Arabian Incense Road Arabs Aral Sea Arhun (watchman) Armenia Armenians Aryans Asmu, Imam: tomb Assassins Assyria Assyrian church At-Bashy Athens Ata, Mohammed Attar Augustus Caesar, emperor Aurelian, emperor Azerbaijan Iranian Azeris Babur, emperor Babylon Bacon, Francis Bactria Bactrians Badakshan Baghdad Baisanghur, prince Balkh Barnabas, St Basra ‘Beauty of Kroran, The’ Behesht-e Zahra Beijing see also Tiananmen Square Bethlehem Bibi Khanum mosque Samarkand Bihzad bin Laden, Osama Birecik Bishkek Black Jade river, Khotan Black Mountains Bodh Gaya Bolsheviks Bombyx mori (silk moth) Book of Changes Book of Odes Book of Rites Borders Brazil British, the Buddhism in China Bukhara Byron, Robert Byzantine empire Caesar, Julius Canada Carrhae, battle of (53 BC) Caspian Sea Caucasus, the Central Asia time line see also names of countrie Chaldean Church Changan (Xian) palace ruins see also Xian chariots Charklik (Ruoqiang) Charlemagne, emperor Chatyr lake Chechens Chechnya Cherchen (Qiemo) salt plateau of Chiang Kai-shek Chilamachin China journey in time line Chinese (outside China) Chingiz (builder) Chinon Christianity in Antioch in China in modern Iran and Mongols Chrysostom, St John Chychkan river Cicero Cizre Cleopatra Cologne cathedral Columbus, Christopher Communism compass, the magnetic Confucianism Confucius Conrad of Montferrat Constantine the Great, emperor Constantinople Crassus, triumvir Crete crossbows Crusades Cultural Revolution Cyrus, King of Persia Czechoslovakia Da Qin Dalai Lama Damascus Damghan Daniar (Kyrgyz) Daniel (builder) Daphne, groves of (near Antioch) Dasht-e-Laili Demavend, Mount Deng Xiaoping Deobandi schools, Pakistan Dharamsala Dokuz Khatun Dolkon (Uighur) Dost Mohammed, King Dostum, Abdul Rashid Dowlatabad drugs Dubs, Homer Dudayev, General Dunhuang East Turkestan Islamic Movement Edward I, King of England Egypt Eighth Imam (Shia) Elburz mountains Eleanor of Castile, queen Elnura (Kyrgyz) England English language Euclid Euphrates Europe Fatima (daughter of Mohammed) Feng (Hui) Fergana Fergana valley Firdausi Shahnama tomb First Pass under Heaven, The Fitzgerald, Edward Flanders Fraser, James (British traveller) Friendship Bridge Friday Mosque, Herat Gang of Four Gansu corridor Gate of Sorrows, Jiayuguan Gawhar Shad, queen mausoleum of Gawhad Shah mosque and college, Herat Gawhar Shad mosque, Meshed Gazargah Gazur Khan Gelia (artist’s wife) Genghis Khan Germans Germany al-Ghazali Ghorid dynasty Gobi desert Goes, Bento de Golden Horde ‘Golden House’, Antioch Golmud Goths Great Game Great Leap Forward Great Wall Greece Gromov, General Guanyin (goddess) Guarong (Song Guorong) Gul (Uighur) Gulag Gulja Guma Gumbaz mosque, Namangan gunpowder Gutenberg Gwelin Hafizullah (Afghan) Hairatan Hakkari Hamed Han Hangzhou Hari river Haroun al-Rashid Hasan-i-Sabah Hazara Hazrat Ali shrine, Mazar-e- Sharif Heavenly mountains see Tian Shan mountains Hekmatyar, Gulbuddin Helena, St Herat Herodotus Hindu Kush Hinduism Homs Hongming (film-maker) Horses Hu Ji (historian) Huang Huangling Huatuguo Hui Hulagu, emperor Hunan Huns 70 134 Husain Baiqara, sultan Hussein (Iranian acquaintance) Hussein (son of Caliph Ali) Hussein, Saddam Ibn BattutaId Kah mosque, Kashgar Ilkhanid dynasty India Indians Innocent IV, Pope Inventions, Chinese see also crossbows, stirrups Iran journey in time line see also Iran-Iraq war Iran-Iraq war Iranian Azerbaijan Iraq see also Iran-Iraq war Isfahan, Qadi of Islam/Muslims in China see also Mevlevi sect; Naqshbandi sect; Shia; Sunni Ismail, 281, 282 Ismailis see also Assassins Israelis Italy see also Romans; Rome jade Jade Gate Jade Road Jafar (trainee doctor) Japan Jaxartes (Syr Darya) river Jelaleddin Rumi Jerusalem Crusader king of Patriarch of Jesuit missionaries Jesus Christ Jews Jiahuang (painter) Jiayuguan Jielu Jiuquan Jumgal valley Justinian, emperor Juvenal Kabul Kalan minaret, Bukhara Kanikay Karakoram Karakoram mountains Karakoram Highway Karimov, President of Uzbekistan Karzai, President of Afghanistan Kashgar Kazakhs Kazakhstan Kekemeren river Kenkol ravine Kerbela, battle of (AD 680) Keriya Khameini, Supreme Leader, Iran Khan, Ismail Khan family, Bukhara Khatami, President of Iran Khoja Parsa shrine, Balkh Khomeini, Ayatollah tomb of Khorasan Khotan Kitbogha Kizilkum desert Kiziltepe Kochkor mazar near Kochoi, tomb of Kokand Koran Korea Koreans Kublai Khan, emperor Kuchi Kun Lun mountains Kunduz Kurds Kushans Kyanizyak-khatun, princess Kyrgyz Kyrgyzstan journey in Labrang Living Buddha of Lady of the Silk Worms (Lei-tzu) Lanchou University Lanzhou Lao-tzu Lattimore, Owen Lei-tzu see Lady of the Silk Worms Lenin (village) Lenin, V.I.
Salt by Mark Kurlansky
British Empire, clean water, Deng Xiaoping, domestication of the camel, haute cuisine, Hernando de Soto, Honoré de Balzac, invention of movable type, Mahatma Gandhi, spice trade, The Wealth of Nations by Adam Smith, trade route
—Lu Wenfu, The Gourmet, 1979 In China, southern food, especially Cantonese, is usually said to be the best. But after 1949, when Mao Zedong from Hunan and Deng Xiaoping from Sichuan came to power, the hot spicy food, la, from southwestern China, came into official fashion. “If you don’t eat la, you are not a revolutionary” became a popular saying. In 1959, a restaurant for the political elite was established in a Beijing house of gardened courtyards built for the son of a seventeenth-century emperor. Predictably, it was a Sichuan restaurant, and was simply named the Sichuan Restaurant. Zhou Enlai, the long-time premier, and Deng Xiaoping were regulars. For years it was considered one of the few good restaurants in Communist Beijing. The restaurant remained a symbol of the times when, in 1996, its antique setting was bought by a Hong Kong entrepreneur, who turned the house into a private members-only club with the obsequious gentlemanly service reminiscent of British colonialism.
The brine is still evaporated in pans heated by the gas from the well. In 1835, when the well was drilled, it had an estimated 8,500 cubic meters of gas. In the year 2000, the operators believed it had 1,000 cubic meters left. The Shaanxi guild hall remained a guild hall until the fall of the last emperor. Then it became a local headquarters for the Chinese nationalist movement of Chiang Kai-shek. After the Communists came to power, Deng Xiaoping, a native of Sichuan who became secretary general of the Chinese Communist Party, decided to make it a salt museum. Today in Zigong, there are still some crumbling tile-roofed Chinese houses with the roof tips turned up in the southern style, but most of them are in disrepair, seemingly awaiting demolition. The new buildings seem kitschy spoofs on urban high-rise architecture. As in Beijing, historic monuments were torn down to make way for buildings that will never be completed, that remain concrete and exposed steel rods because the companies building them went bankrupt.
Affordable Care Act / Obamacare, Asian financial crisis, asset allocation, Ayatollah Khomeini, bank run, banking crisis, Ben Bernanke: helicopter money, bitcoin, Black Swan, Bretton Woods, BRICs, business climate, capital controls, Carmen Reinhart, central bank independence, centre right, collateralized debt obligation, collective bargaining, complexity theory, computer age, credit crunch, currency peg, David Graeber, debt deflation, Deng Xiaoping, diversification, Edward Snowden, eurozone crisis, fiat currency, financial innovation, financial intermediation, financial repression, Flash crash, floating exchange rates, forward guidance, George Akerlof, global reserve currency, global supply chain, Growth in a Time of Debt, income inequality, inflation targeting, invisible hand, jitney, Kenneth Rogoff, labor-force participation, labour mobility, Lao Tzu, liquidationism / Banker’s doctrine / the Treasury view, liquidity trap, Long Term Capital Management, mandelbrot fractal, margin call, market bubble, market clearing, market design, money: store of value / unit of account / medium of exchange, mutually assured destruction, obamacare, offshore financial centre, oil shale / tar sands, open economy, Plutocrats, plutocrats, Ponzi scheme, price stability, quantitative easing, RAND corporation, reserve currency, risk-adjusted returns, Rod Stewart played at Stephen Schwarzman birthday party, Ronald Reagan, Satoshi Nakamoto, Silicon Valley, Silicon Valley startup, Skype, sovereign wealth fund, special drawing rights, Stuxnet, The Market for Lemons, Thomas Kuhn: the structure of scientific revolutions, Thomas L Friedman, too big to fail, trade route, uranium enrichment, Washington Consensus, working-age population, yield curve
Prior to 1979, the Chinese economy operated on the “iron rice bowl” principle. The leadership did not promise high growth, jobs, or opportunities; instead, it promised sufficient food and life’s basic necessities. Collective farms, forced labor, and central planning were enough to deliver on these promises, but not much more. Stability was the goal, and growth was an afterthought. Beginning in 1979, Deng Xiaoping broke the iron rice bowl and replaced it with a growth-driven economy that would not guarantee food and necessities so much as provide people the opportunity to find them on their own. It was not a free market by any means, and there was no relaxation of Communist Party control. Still, it was enough to allow local managers and foreign buyers to utilize both cheap labor and imported know-how in order to create comparative advantage in a wide range of tradable manufactured goods.
This new story revolves around the rise of a Chinese warlord caste, financial not military in kind, that acts in its own self-interest rather than in China’s interest. The new financial warlords operate through bribery, corruption, and coercion. They are a cancer on the Chinese growth model and the so-called Chinese miracle. After the 1949 Communist takeover of China, all businesses were owned and operated by the state. This model prevailed for thirty years, until Deng Xiaoping’s economic reforms began in 1979. In the decades that followed, state-owned enterprises (SOEs) took one of three paths. Some were closed or merged into larger SOEs to achieve efficiencies. Certain SOEs were privatized and became listed companies, while those remaining as SOEs grew powerful as designated “national champions” in particular sectors. Among the best known of these super-SOEs are the China State Shipbuilding Corporation, the China National Petroleum Corporation, the China Petrochemical Corporation (SINOPEC), and China Telecom.
., 209–10 Da Silva, Tekoa, 236 Davoudi, Parviz, 151 “Day After, The” (Ambinder), 63 debasement, of money, 172 debt, 171–80, 290–91 Federal Reserve monetary policy’s relation to, 176–77, 180–89 Federal Reserve Notes as, 167 monetization of, 287–88 sustainable, 171–72, 176–80 tests for acceptable government spending, 173–76 of United States, 171–73 Debt-Deflation Theory of Great Depressions, The (Fisher), 246–47 debt-to-GDP ratio, 159–60, 173 deflation, impact of, 9, 258–59 of Japan, 159, 259, 261 of United Kingdom, 159 of United States, 159, 173, 259 defensive aspects of financial war, 46 deficits, 172–73, 176–80 deflation, 9–11, 76–83, 243–52, 256–64 banking system, impact on, 9, 259 Bernanke’s response to, 76, 77 Chinese imports and, 76 debt-to-GDP ratio and, 9, 258–59 deleveraging after housing market collapse and, 76–77 government debt repayment and, 9, 258 Greenspan’s response to, 76 versus inflation, in depression of 2007 to present, 243–52, 260, 290–91 in Japan, 160–61, 260–62, 264 post-2000 deflationary bias, 76 SDR issuance to prevent, 213–14 tax collection and, 9, 259–60 unemployment and, 77 De Gasperi, Alcide, 116 degree distribution, 265–66 de Léry, Jean, 115 deleveraging, 76–77, 246 DeMint, Jim, 205 Democrats, 175–76, 179, 180, 294 Deng Xiaoping, 93, 97 depressions defined, 244 deflation in, 246–47 Great Depression, 84, 85, 125–26, 155, 221–22, 223–24, 234, 244, 245 Long Depression, in Japan, 160 of 1920, 246–47 regime uncertainty and, 125–26 2007 to present, 3, 76, 87, 126, 197, 243–52, 260, 290–91 derivatives, 80–81 gold as not constituting, 217–18 mortgage-related, 290 risk posed by, 11–12 size of positions in, 11 Deutsche Bank, 32–33 Deutsche Bundesbank, 232 devaluations, 158, 200 of dollar, U.S., 1, 10–11, 235 Gold Bloc devaluations, 222 Great Depression and, 223 digital currencies, 254 dollar, U.S., 161 alternatives to, 254 Beijing Consensus and, 120–21 confidence in, 253–56, 291 contract theory of, 165–67, 169 deflation as threat to, 9–11 demise of, potential paths of, 292–95 devaluation of, 1, 10–11, 235 financial war as threat to, 6–7 geopolitical threats to, 12–13 gold convertibility abandoned, in 1971, 1, 2, 5, 209, 220, 235, 285 inflation as threat to, 7–9 King Dollar (sound-dollar) policy, 118, 176–77, 210, 211 loss of confidence in, in 1970s, 1–2, 5 market collapse as threat to, 11–12 MARKINT as means of detecting attacks on, 40 pegging to, effect of, 155 SDRs as potential reserve currency replacement for, 211–14, 292–93 threats to, 5–13 Volcker’s efforts to save, 2 Washington Consensus and, 118–20 dollar index in 1978, 1, 253–54 in 1995, 2, 253–54 in 2011, 2–3, 253–54 in 2013, 253–54 SDR issuance and weakness in, 210–11 Dr.
Connectography: Mapping the Future of Global Civilization by Parag Khanna
1919 Motor Transport Corps convoy, 2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 3D printing, 9 dash line, additive manufacturing, Admiral Zheng, affirmative action, agricultural Revolution, Airbnb, Albert Einstein, amateurs talk tactics, professionals talk logistics, Amazon Mechanical Turk, Asian financial crisis, asset allocation, autonomous vehicles, banking crisis, Basel III, Berlin Wall, bitcoin, Black Swan, blockchain, borderless world, Boycotts of Israel, Branko Milanovic, BRICs, British Empire, business intelligence, call centre, capital controls, charter city, clean water, cloud computing, collateralized debt obligation, complexity theory, corporate governance, corporate social responsibility, credit crunch, crony capitalism, crowdsourcing, cryptocurrency, cuban missile crisis, data is the new oil, David Ricardo: comparative advantage, deglobalization, deindustrialization, dematerialisation, Deng Xiaoping, Detroit bankruptcy, diversification, Doha Development Round, edge city, Edward Snowden, Elon Musk, energy security, ethereum blockchain, European colonialism, eurozone crisis, failed state, Fall of the Berlin Wall, family office, Ferguson, Missouri, financial innovation, financial repression, forward guidance, global supply chain, global value chain, global village, Google Earth, Hernando de Soto, high net worth, Hyperloop, ice-free Arctic, if you build it, they will come, illegal immigration, income inequality, income per capita, industrial robot, informal economy, Infrastructure as a Service, interest rate swap, Internet of things, Isaac Newton, Jane Jacobs, Jaron Lanier, John von Neumann, Julian Assange, Just-in-time delivery, Kevin Kelly, Khyber Pass, Kibera, Kickstarter, labour market flexibility, labour mobility, LNG terminal, low cost carrier, manufacturing employment, mass affluent, megacity, Mercator projection, microcredit, mittelstand, Monroe Doctrine, mutually assured destruction, New Economic Geography, new economy, New Urbanism, offshore financial centre, oil rush, oil shale / tar sands, oil shock, openstreetmap, out of africa, Panamax, Peace of Westphalia, peak oil, Peter Thiel, Plutocrats, plutocrats, post-oil, post-Panamax, private military company, purchasing power parity, QWERTY keyboard, race to the bottom, Rana Plaza, rent-seeking, reserve currency, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Coase, Scramble for Africa, Second Machine Age, sharing economy, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, six sigma, Skype, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, South China Sea, South Sea Bubble, sovereign wealth fund, special economic zone, spice trade, Stuxnet, supply-chain management, sustainable-tourism, TaskRabbit, telepresence, the built environment, Tim Cook: Apple, trade route, transaction costs, UNCLOS, uranium enrichment, urban planning, urban sprawl, WikiLeaks, young professional, zero day
Such “re-pats” are accelerators of innovation because they bring Western ideas back to more rigid societies and dilute traditional power structures; indeed, diaspora figures have taken prominent political roles in each of these countries and numerous others. The great Sinosphere of over fifty million ethnic Chinese spanning Asia and spreading across the oceans is also a gravitational field unto itself. In the 1980s, Deng Xiaoping tapped the ethnic Chinese industrialists of Taiwan, Hong Kong, Malaysia, and Thailand to fund the country’s nascent SEZs. If Beijing were to offer dual citizenship to some of its forty million members, it might lure many more overseas Chinese, bringing in fresh talent and replenishing the aging population. While diasporas are often resentful of the political systems they have left behind, several generations on from the Chinese Civil War and great exile they increasingly act as opportunistic nodes in a global Chinese civilization.
But humanity’s rapid urbanization only means that people are moving into cities, not that the cities are prepared for their arrival. Successful economic strategy today must therefore include strategic city-level investments to absorb the masses and catapult societies into modernity. SEZs have proven to be enormous catalysts for connectivity and growth across underdeveloped countries. In 1979, Deng Xiaoping designated Shenzhen, then a fishing village north of Hong Kong, as China’s first special economic zone. Since that time, Shenzhen has grown into a thriving international hub of fifteen million people with a per capita GDP a hundred times larger than three decades ago.3 That same year, Mauritius opened its first textile SEZ and launched itself on a 6 percent growth path and all but eliminated unemployment.
There is no doubt that connectivity brings greater complexity and uncertainty, yet the places where one can be sure that tomorrow will be the same as today are often the places one would rather not be. If the world population has a common goal, it is the quest for modernization and connectivity—the latter a principal path to the former. Connectivity is unquestionably a greater force than all the political ideologies in the world combined. Deng Xiaoping, who managed to dismantle the Soviet-style communes of Mao’s Great Leap Forward and even opposed the Cultural Revolution, subsequently launched the reforms of the 1970s that connected China to the world economy and catapulted it from backwater to superpower. The same is true of religions. In most places, religion and the marketplace peacefully coexist. The religious revival among the newly minted middle-class Indians and Chinese has much to do with showing gratitude and praying for continued success in the global economy.
Age of Discovery: Navigating the Risks and Rewards of Our New Renaissance by Ian Goldin, Chris Kutarna
2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 3D printing, Airbnb, Albert Einstein, AltaVista, Asian financial crisis, asset-backed security, autonomous vehicles, banking crisis, barriers to entry, battle of ideas, Berlin Wall, bioinformatics, bitcoin, Bonfire of the Vanities, clean water, collective bargaining, Colonization of Mars, Credit Default Swap, crowdsourcing, cryptocurrency, Dava Sobel, demographic dividend, Deng Xiaoping, Doha Development Round, double helix, Edward Snowden, Elon Musk, en.wikipedia.org, epigenetics, experimental economics, failed state, Fall of the Berlin Wall, financial innovation, full employment, Galaxy Zoo, global supply chain, Hyperloop, immigration reform, income inequality, indoor plumbing, industrial robot, information retrieval, intermodal, Internet of things, invention of the printing press, Isaac Newton, Islamic Golden Age, Khan Academy, Kickstarter, labour market flexibility, low cost carrier, low skilled workers, Lyft, Malacca Straits, megacity, Mikhail Gorbachev, moral hazard, Network effects, New Urbanism, non-tariff barriers, Occupy movement, On the Revolutions of the Heavenly Spheres, open economy, Panamax, personalized medicine, Peter Thiel, post-Panamax, profit motive, rent-seeking, reshoring, Robert Gordon, Search for Extraterrestrial Intelligence, Second Machine Age, self-driving car, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Skype, smart grid, Snapchat, special economic zone, spice trade, statistical model, Stephen Hawking, Steve Jobs, Stuxnet, TaskRabbit, too big to fail, trade liberalization, trade route, transaction costs, transatlantic slave trade, uranium enrichment, We are the 99%, We wanted flying cars, instead we got 140 characters, working poor, working-age population, zero day
Since many of them were poor, gradually this term came to refer to underdeveloped countries in general (now such labels are considered pejorative). Today, this map is obsolete. By the 1980s, the failings of centrally planned economies—clunky industries, perverted incentives, uninterested workers—had become painfully obvious, and even the biggest among them bowed to economic reality. Deng Xiaoping opened up China, and his then 1-billion-person economy began to normalize trade relations with the West. Soviet President Mikhail Gorbachev pronounced his perestroika (“restructuring”). Economic collapse across a wide range of countries, from the Philippines to Zambia, Mexico, Poland, Chile, Bangladesh, Ghana, Korea, Morocco and others, led them all in search of a better growth model. Import substitution, whereby countries raised trade walls against each other so that they could nurture their own industries at home, proved a failure: the industries could not achieve scale or excellence on the strength of domestic demand alone, nor were they strong enough to compete outside their tariff-padded walls.
They include some 150 regional hubs of 5–10 million inhabitants like China’s Changsha, Brazil’s Joinville and Mexico’s Veracruz; a few hundred midsize growth cities of 1 to 5 million, like India’s Ahmedabad and Russia’s Sochi—often built around local natural resources or industrial clusters; and thousands of smaller boomtowns few of us could find on a map, such as Hengshan, Leibo, Kuchaman City, Konch, Caxias, Timon, Escobedo and Abasolo. China leads the urbanization story. Between 1982 and 1986, the dismantling of state-planned agriculture released surplus workers from their rural posts. China’s urban population catapulted from about 200 million to almost 400 million people in four short, hectic years of transformation.48 China’s next urban boom began after 1992: Deng Xiaoping embarked on his historic Southern Tour of China’s southeast coastal region (during which he may have proclaimed, “To get rich is glorious”), solidified pro-market reforms as Communist Party dogma, and prompted an export-driven expansion that lured rural labor to the coast. Shenzhen, on China’s Pearl River Delta, became the modern-day Seville. A fishing village of some 10,000 people during the 1970s, it was anointed a Special Economic Zone in 1979 and reached 2.5 million inhabitants over the next decade.
See also Catholic Church; Protestant Reformation citizenship, 81, 230, 248, 260–1 climate change, 4, 183, 200, 211, 231, 251–4, 260 Clinton, Bill, 24 Cold War, 10, 21–3, 41, 90, 165, 242 collective dangers, 166–7 collective doubt and diminishing returns, 153–5 and missed expectations, 152–3 in the Renaissance, 150–1 and statistical stagnation, 151–2 collective effort, 141–2 cathedrals, 142–5 citizen science platforms, 148–9 language, 145–7 libraries, 143–5 in the Renaissance, 142–4 and scale, 142–9 collective genius, 132–9 Columbus, Christopher, 1, 7, 19, 39, 60, 67, 143, 150–1, 157, 242, 253 communism and China, 24, 54, 223, 265 and Iron Curtain, 21 complexity and climate change, 200 and cognitive blind spots, 176 and disease, 186 and education, 79 and entanglement, 64–8 and finance, 45–50, 189–90, 214, 227 and flow of ideas, 134–5 international investment flows, 49 and people, 50–60 and policy, 254–5 and printing, 28, 135 in the Renaissance, 2, 7 and supply chains, 43–4 and systemic risk, 8, 175–8, 189–90, 198, 200–1 and technology, 60–4, 136, 198 and trade, 39–44 and video, 34–5 and virtues, 257 concentration and climate change, 200–1 and inequality, 23, 214, 225, 227, 262 and infrastructure, 192–7 and place, 246, 247–8 and systemic risk, 8, 175, 178–9, 186, 190–7, 254–6 and urbanization, 55 Congo, Democratic Republic of, 181, 183 connectivity beyond connected (entanglement), 64–8 and competition, 66–8 and extremism, 205, 207–8 and finance, 45–50 and the New Renaissance, 241–3, 246–9, 255, 259, 266 and people, 50–60 in the Renaissance, 2, 7 and social stresses, 230 and systemic risk, 8, 175–6, 184, 186–7, 189, 192, 194, 196–201 and technology, 31–4, 60–4 and trade, 39–44 Constantinople, 10, 18, 29, 55, 75, 164, 194, 248 convergence, 94 Copernicus, Nicolaus, 1, 29, 105–8, 110–12, 132–5, 141, 150, 236–8 Cortés, Hernán, 19 Crick, Francis, 112 crowdsourcing, 239 Cuba, 19, 24 D-Wave Systems, 126 da Feltre, Bernardino, 204 da Feltre, Vittorino, 80–1 da Gama, Vasco, 1, 18–19, 39–40, 63, 194 da Vinci, Leonardo, 6, 9–10, 132–5, 141, 213, 229, 246, 264, 266 Mona Lisa, 1, 109, 110 Vitruvian Man, 70, 71 DeGeneres, Ellen, 33 della Mirandola, Giovanni Pico, 69–70, 256–6 democracy, 22–5, 68, 89–90, 211, 219 and corruption, 226 defined, 23 democratic revolutions, 22–3 and new maps, 252 and protest, 221–2, 224, 228 and stagnation, 230 Deng Xiaoping, 21, 54 deregulation, 45, 48, 187, 191, 196, 227 Dias, Bartholomew, 18 Dickson, Leonard, 158 digitization, 30–2 and amplification of speech, 35, 237, 261 cloud services, 33, 198 freelance platforms, 111 and group intelligence, 36 impacts, 32–7 international data flows, 34 of shipping, 62 video-sharing, 34–5 See also Internet disease, 2, 7–8, 74, 83–4, 91, 93–4, 127, 129, 153, 155, 162–4, 225 syphilis, 175–7, 179, 205 and systemic risk, 173–7, 179–87 See also health and medicine; pandemics division.
agricultural Revolution, Albert Einstein, demographic transition, Deng Xiaoping, Haber-Bosch Process, invention of gunpowder, Louis Pasteur, precision agriculture, recommendation engine, The Design of Experiments
Given a very close fit between China’s pre-1958 average per capita food supply (2,100–2,200 kcal/day) and demand (age- and sex-adjusted needs were about 2,200 kcal/day), the combination of such irrational decisions had a drastic effect on food availability: by the spring of 1959 there was famine in 1/3 of China’s provinces. Weather only exacerbated the suffering.48 During the three years from 1959 to 1961 at least 30 million Chinese died in the greatest famine in human history.49 More pragmatic policies favored by Liu Shaoqi and Deng Xiaoping finally put the end to that tragedy. One of their results was the purchase of five midsized ammonia-urea plants from the United Kingdom and the 168 Chapter 8 Netherlands between 1963 and 1965. By 1965 synthetic fertilizers supplied more than 1/4 of all nitrogen. Then the more normal development was cut short again in 1966 with the launching of Mao’s destructive time of ideological frenzy, political vendettas, and localized civil war that became known, most incongruously, as the Cultural Revolution.
Food energy in the PRC. 1977. Current Scene 15:1–11; Smil, V. 1981. China’s food: availability, requirements, composition, prospects. Food Policy 6:67–77. 52. CIA (44), pp. 6–7; Chang (44), pp. 50–52. 53. Based on consumption and production figures for calendar years in the FAO’s database at http:/ /apps.fao.org. 54. China’s annual per capita meat consumption has more than doubled since 1979, the beginning of Deng Xiaoping’s reforms. The FAO’s food balance sheets (http:/ /apps.fao.org) 306 Notes to Chapter 8 show that nationwide the average meat supply almost tripled between 1979 and 1996 to more than 40 kg/capita, but Chinese consumption surveys indicate a less dramatic growth, with rural per capita consumption rising from just 6 kg/year in 1978 to about 13 kg/year by 1995; urban consumption in 1995 was about 24 kg/year; see State Statistical Bureau. 1996.
Name Index Abegg, Richard, 68, 72, 227 Arrhenius, Svante, 72, 229 Commoner, Barry, 189 Crookes, William, 58–60 Bacque, Henry, 46 Beck, Christoph, 99 Beijerinck, Martinus, 15 Bergius, Friedrich, 85, 224 Bernthsen, August, 76, 80 Berthelot, Marceline, 13 Berthollet, Claude-Louis, 3, 5, 61 Birkeland, Kristian, 53 Bohn, René, 75 Borchardt, Philipp, 102 Borlaug, Norman, 139 Bosch, Carl, 64, 75 Boussingault, Jean-Baptiste, 5–6, 12–13 Bradley, Charles, 53 Brauer, Eberhard, 98 Brunck, Heinrich von, 62, 64, 80, 82–83, 87 Buchner, Hans, 2 Buck, John L., 31, 35 Bunsen, Robert Wilhelm, 66 Bunte, Hans, 67 Deng, Xiaoping, 167 Deville, Henri-Étienne Saint-Claire, 61–62 Döbereiner, Johann W., 62 Duisberg, Carl, 87, 223 Dumas, Jean-Baptiste André, 5 Cagniard-Latour, Charles, 2 Caro, Nikodemus, 51 Casale, Luigi, 114 Cato, Marcus, 22, 30 Cavendish, Henry, 53 Chaptal, Jean Antoine, 4 Châtelier, Henry Louis Le, 61, 64, 201 Claude, Georges, 113 Columella, Lucius Junius, 27, 30 Gayon, Ulysse, 16 Gilbert, John Henry, 5, 11–13 Guyton de Morveau, Louis Bernard, 3, 61 Ehrlich, Paul, 103 Einstein, Albert, 103, 231 Engelhorn, Friedrich, 75 Engler, Carl, 76 Erdmann, Otto, 62 Eyde, Samuel, 53 Fahrenhorst, Johannes, 100, 102 Fauser, Giacomo, 114 Fischer, Emil, 103 Fourcroy, Antoine-François de, 3, 41, 61 Frank, Adolf, 51 Frank, Albert, 15 Fulda, Ludwig, 103 Haber (Nathan), Charlotte, 228–229 Haber (Immerwahr), Clara, 68 Haber, Eva, 228 Haber, Fritz, 61, 64, 83, 86, 223 Haber, Hermann, 68, 226, 229–230 330 Name Index Haber, Ludwig Fritz, 228 Haber, Paula, 65 Haber, Siegfried, 65 Hahn, Otto, 231 Hellriegel, Hermann, 14–16 Hessberger, Johannes, 75 Hildebrand, Georg F., 62 Hitler, Adolf, 224, 229–230 Hoffmann, August Wilhelm von, 66 Humboldt, Alexander von, 41 Ingenhousz, Jan, 1 Pasteur, Louis, 2 Pierce, William, 202 Planck, Max, 230 Pope, William, 231 Priestley, Joseph, 1, 3, 53 Raffles, Stamford, 31 Ramsay, William, 61–62, 69, 71 Rathenau, Walter, 103 Revelle, Roger, 178 Rossignol, Robert Le, 61, 71–74, 77–79, 81, 84, 201–202, 229 Rutherford, Daniel, 3 Jost, Fritz, 70, 100, 201 Keller, Hans, 102 Knietsch, Rudolf, 75, 86, 91 Knorr, Ludwig, 67 König, A., 74, 77 Koppel, Leopold, 226, 231 Kranz, Julius, 81 Krassa, Paul, 78, 81 Krauch, Carl, 98, 105, 225 Kuhlmann, Charles F., 99 Landis, W.
Second World: Empires and Influence in the New Global Order by Parag Khanna
Admiral Zheng, affirmative action, anti-communist, Asian financial crisis, Bartolomé de las Casas, Branko Milanovic, British Empire, call centre, capital controls, central bank independence, cognitive dissonance, colonial rule, complexity theory, crony capitalism, Deng Xiaoping, Dissolution of the Soviet Union, Donald Trump, Edward Glaeser, energy security, European colonialism, facts on the ground, failed state, flex fuel, Francis Fukuyama: the end of history, friendly fire, Gini coefficient, global reserve currency, global supply chain, haute couture, Hernando de Soto, illegal immigration, income inequality, informal economy, invisible hand, Islamic Golden Age, Khyber Pass, knowledge economy, land reform, low skilled workers, means of production, megacity, Monroe Doctrine, oil shale / tar sands, oil shock, open borders, open economy, Pax Mongolica, pirate software, Plutonomy: Buying Luxury, Explaining Global Imbalances, Potemkin village, price stability, race to the bottom, RAND corporation, reserve currency, rising living standards, Ronald Reagan, Silicon Valley, Skype, South China Sea, special economic zone, stem cell, Stephen Hawking, Thomas L Friedman, trade route, trickle-down economics, uranium enrichment, urban renewal, Washington Consensus, women in the workforce
Central Asian trade is actually insignificant for China, but for Kyrgyzstan and Tajikistan, China’s presence is enormous and grows more so with every passing day. The largest share of Kyrgyz exports now go to China, while the Dordoi bazaar in Bishkek is flooded with Chinese-made clothing and tools. Far more than in Kazakhstan, the cross-border shuttle trade has meant the settlement of more Chinese communities in Kyrgyzstan, with organized Chinatowns now a feature of all but a few cities. In Bishkek itself, Lenin Avenue has been renamed after Deng Xiaoping. As America’s strategic rationale moves beyond Afghanistan to securing pipelines and monitoring China, Kyrgyzstan has returned to its role as a Great Game listening post, and its maneuvering is also reminiscent of the original version: Each power attempts to establish military garrisons, gradually placing themselves cheek by jowl. Russia’s army never gave up its sanctuaries in Kyrgyzstan, but it did vacate the former Soviet base at Manas, near Bishkek, which is now occupied by the U.S. military.1 Along the same border where China and Russia clashed in 1969, they now spy on each other with commercial and camouflaged monitors.
Singapore is the exception to the notion that China is shaping the rest of Asia, for the overseas Chinese of Singapore not only run their own country but are also shaping China itself. The question is thus not whether China will dominate Asia, but rather which model of China will prevail. Singapore can already claim some credit for the major changes in Chinese decision making over the past two decades. Deng Xiaoping opened China after visiting Singapore, where he saw that Chinese were smarter and more successful than at home. Toynbee’s impression seems more valid now than it did a half century ago: “Singapore may have been founded by British enterprise, but today it is a Chinese city: The future capital of a Chinese ‘Co-prosperity Sphere’ which is likely to last, because it will have been established by business ability and not by military force.”19 * * * INDIA LOOKS EAST The devastating 2004 tsunami, which centered on Indonesian Sumatra and swelled over islands and coasts from India to Somalia, reinforced the reality of a seamless oceanic space in the world’s Eastern Hemisphere. 20 As lunar gravity dictates the tides, however, the Indian Ocean increasingly serves as the western bay of a greater Pacific space centered on East Asia.
The resulting socialist agricultural collectivization that accelerated with Communists’ victory in the civil war was truly revolutionary—as Mao famously articulated, “A revolution is not a dinner party, nor a literary composition, nor a painting, nor a piece of pretty embroidery; it cannot be carried out softly, gradually, carefully, considerately, respectfully, politely, plainly, and modestly.”*54 In the name of modernization and the “victory of the world revolution,” he was willing to sacrifice all three hundred million of China’s population at the time. Ultimately, over seventy million perished due to the Great Leap Forward, the Cultural Revolution, and constant internal purges in which more people died of starvation and overwork than were killed by Hitler and Stalin combined. Deng Xiaoping continued the focus on development as the vehicle for overcoming insecurity, launching the “four modernizations” of agriculture, industry, defense, and technology and initiating the internal reform and external opening necessary to achieve them.3 But it is the current leadership’s continuation of both experimental and accumulative development that assures China’s rise out of the third world.
Aerotropolis by John D. Kasarda, Greg Lindsay
3D printing, air freight, airline deregulation, airport security, Akira Okazaki, Asian financial crisis, back-to-the-land, barriers to entry, Berlin Wall, big-box store, blood diamonds, borderless world, British Empire, call centre, carbon footprint, Clayton Christensen, cleantech, cognitive dissonance, conceptual framework, credit crunch, David Brooks, David Ricardo: comparative advantage, Deng Xiaoping, deskilling, edge city, Edward Glaeser, failed state, food miles, Ford paid five dollars a day, Frank Gehry, fudge factor, full employment, future of work, Geoffrey West, Santa Fe Institute, George Gilder, global supply chain, global village, gravity well, Haber-Bosch Process, Hernando de Soto, hive mind, if you build it, they will come, illegal immigration, inflight wifi, interchangeable parts, intermodal, invention of the telephone, inventory management, invisible hand, Jane Jacobs, Jeff Bezos, Kangaroo Route, knowledge worker, kremlinology, labour mobility, Marshall McLuhan, Masdar, McMansion, megacity, Menlo Park, microcredit, Network effects, New Economic Geography, new economy, New Urbanism, oil shale / tar sands, oil shock, peak oil, Peter Thiel, pets.com, pink-collar, pre–internet, RFID, Richard Florida, Ronald Coase, Ronald Reagan, savings glut, Seaside, Florida, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Skype, smart cities, smart grid, South China Sea, South Sea Bubble, sovereign wealth fund, special economic zone, spice trade, spinning jenny, stem cell, Steve Jobs, supply-chain management, sustainable-tourism, telepresence, the built environment, The Chicago School, The Death and Life of Great American Cities, The Nature of the Firm, thinkpad, Thomas L Friedman, Thomas Malthus, Tony Hsieh, trade route, transcontinental railway, transit-oriented development, traveling salesman, trickle-down economics, upwardly mobile, urban planning, urban renewal, urban sprawl, walkable city, white flight, Yogi Berra
You’d need only one factory, or one person like Casey to orchestrate all the others. The story of China in the coming decades is where they will fly once their top export is ideas, like our own. This transformation has been hastened by the global downturn. Abandoned by many of their shadowy clients, ambitious companies like Casey’s are learning to innovate instead. Both stories begin in Shenzhen. Liam Casey arrived in 1996, a few years after paramount leader Deng Xiaoping declared “to get rich is glorious” while passing through the city on his farewell tour. Deng is the father of Shenzhen, having chosen this sleepy fishing village as the first of China’s “special economic zones” in 1980. Foreign firms were invited to open shop here with few constraints or taxes, triggering the transformation of the Pearl River Delta into “the factory of the world” and Shenzhen into the “Overnight City,” having grown two-hundred-fold since then.
Until then, the layout is hazy and the figures are rounded. The impact of the FedEx hub and its customers in orbit is officially pegged at $63 billion by 2020, compounded by billions more once the battery makers and windmill fabricators envisioned by Beijing are compelled to set up shop around it. Adjacent to the hub is an industrial park modeled on the Guangzhou Economic and Technological Development Zone, one of the first commissioned by Deng Xiaoping. Factory zones are to China’s instant cities what the exurbs were to American ones—the simplest formula for propelling growth. A common strategy is to clear the land, flip it to factory owners at below-market rates, and subsidize their investors with tax breaks. The GETDZ pioneered this approach to become the world’s factory for chewing gum, toothpaste, and artificial flavors. The aerotropolis is aiming higher, at the microchip and motherboard makers stranded around FedEx’s abandoned hub in Subic Bay.
It’s too early to tell whether the central bank will succeed in deflating bubbles (or defer-ring them into the future), although one thing is certain: if beggaring the world is what it takes to raise a billion of its own people out of poverty, China is determined to try. Maybe the most notable feature of its record-breaking build-out is where it’s taking place: in the west. Only a few years ago, government investment was still focused along the coast, especially in the Delta, Shanghai, and Beijing. “Let some get rich first,” Deng Xiaoping had ordained, which meant life expectancy in Guizhou province is a decade shorter than in the Delta, only a few hundred miles away. Such massive inequality is the primary source of China’s unrest—an estimated eighty thousand protests each year in rural towns and villages, suppressed and kept (mostly) out of sight. Despite the size of its coastal megacities, China is less urbanized than its peers.
Berlin 1961: Kennedy, Khrushchev, and the Most Dangerous Place on Earth by Frederick Kempe
Berlin Wall, cuban missile crisis, Deng Xiaoping, desegregation, Fall of the Berlin Wall, full employment, index card, Mikhail Gorbachev, open borders, Ronald Reagan, trade liberalization, traveling salesman
Princeton, NJ: Princeton University Press, 1962,396. Yuri Andropov: Harrison, Driving the Soviets up the Wall, 164–165; Zagoria, The Sino-Soviet Conflict; Chen Jian, Mao’s China and the Cold War. Chapel Hill: University of North Carolina Press, 2001; Vladislav M. Zubok, “‘Look What Chaos in the Beautiful Socialist Camp!’: Deng Xiaoping and the Sino-Soviet Split, 1956–1963,” CWIHP-B, No. 10 (1998), http://www.wilsoncenter.org/topics/pubs/ACF185.pdf, 152–162; Chen Jian, “Deng Xiaoping, Mao’s ‘Continuous Revolution,’ and the Path Toward the Sino-Soviet Split: A Rejoinder,” CWIHP-B, No. 10 (1998), 162–164, 165–183; Joachim Krüger, “Die Volksrepublik China in der Aussenpolitischen Strategie der DDR (1949–1989),” in Kuo Heng-yue and Mechthild Leutner, eds., Deutschland und China. Beiträge des Zweiten Internationalen Symposiums zur Geschichte der deutsch-chinesischen Beziehungen Berlin 1991 (Berliner China-Studien 21), Munich: Minerva, 1994, 49.
Khrushchev’s intense lobbying before the meeting and cajoling during the conference kept the Chinese in check. Only a dozen country delegations among the eighty-one sided with China’s objections to Khrushchev’s course of liberalizing communism at home and peaceful coexistence abroad. Still, even that level of opposition to Soviet rule was unprecedented. With Mao in Beijing, Khrushchev and Chinese General Party Secretary Deng Xiaoping locked horns behind closed doors at the Kremlin’s St. George’s Hall. Khrushchev called Mao a “megalomaniac warmonger.” He said Mao wanted “someone you can piss on…. If you want Stalin that badly, you can have him—cadaver, coffin, and all!” Deng attacked the Soviet leader’s speech, saying, “Khrushchev had evidently been talking without knowing what he was saying, as he did all too frequently.”
appointment to Berlin Autobahn patrols Berlin Airlift on Berlin strategy border escorts Checkpoint Charlie confrontation defiance of border procedures East Berlin tour on importance of West Berlin’s defense with Kennedy in Berlin on Kennedy’s resolve in Cuban Missile Crisis morale-building mission to Berlin plans to break through Wall stance on Soviet Union Steinstücken defense Clifford, Clark Couch, Virgil Cuba Bay of Pigs invasion Acheson on demonstration of Kennedy’s weakness failure of mission impact on Allied confidence Kennedy’s acknowledgment of error Khrushchev on linking to Berlin issue miscalculations and oversights plan pretext of U.S. noninvolvement Castro’s communist inclinations Soviet alliance U.S. support of Batista Cuban Missile Crisis Allied support for Kennedy Kennedy’s resolve Khrushchev’s perception of Kennedy’s weakness linking to Berlin issue Soviet nuclear buildup Soviet retreat threat to U.S. cities Daily News (New York) Dealey, E. M. “Ted,” de Gaulle, Charles Eisenhower’s and Roosevelt’s disapproval of on exclusion of Britain from Common Market on German reunification as Kennedy’s host in Paris opposition to negotiation with Khrushchev support for U.S. in Cuban Missile Crisis on U.S. Berlin policy Demichev, Pyotr Deng Xiaoping Dimmer, John Dobrynin, Anatoly as adviser for Vienna Summit concessions from U.S. on missiles in Turkey diplomatic postings linking of Berlin and Cuban issues Doherr, Annamarie Dönhoff, Marion Donner, Jörn Dowling, Walter “Red” under Adenauer’s influence admiration for Adenauer barring of, from East Berlin in Berlin bureaucracy on Clay’s appointment to Berlin on Soviet policy Dulles, Allen Dulles, John Foster East Berlin Bernauer Strasse job placement in optimism during Vienna Summit response to border closure RIAS radio broadcasts Stalinist architecture tourism See also East German border closure East German border closure Allied civilians military escorts for restrictions on breach of Wall, plans for confrontation at Checkpoint Charlie escape attempts expansion of first public mention of implementation of initial discussions of Kennedy acquiescence inaction on prospect of closure relief at closure Khrushchev approval satisfaction limitation to East German territory logistical challenges long-term consequences official statement on permanent barriers plans and preparations press conference on punishment of escapees’ families separation of friends and family shoot-to-kill police orders single crossing point for Westerners tourism violation of four-power agreements Warsaw Pact states’ approval of East Germany Allied access rights Chinese assistance to economic decline and hardships farm collectivization Miss Universe refugee refugee exodus Soviet oil pipeline Soviet treaty proposal granting control of access Steinstücken access West German trade See also East Berlin; East German border closure Economist Eikemeier, Fritz Eisenhower, Dwight D.
Trust: The Social Virtue and the Creation of Prosperity by Francis Fukuyama
barriers to entry, Berlin Wall, blue-collar work, business climate, capital controls, collective bargaining, corporate governance, deindustrialization, Deng Xiaoping, deskilling, double entry bookkeeping, equal pay for equal work, European colonialism, Francis Fukuyama: the end of history, Frederick Winslow Taylor, full employment, George Gilder, glass ceiling, global village, hiring and firing, industrial robot, Jane Jacobs, job satisfaction, joint-stock company, joint-stock limited liability company, Joseph Schumpeter, labour market flexibility, labour mobility, land reform, low skilled workers, manufacturing employment, mittelstand, price mechanism, profit maximization, RAND corporation, rent-seeking, Ronald Coase, Silicon Valley, Steve Jobs, Steve Wozniak, The Death and Life of Great American Cities, The Nature of the Firm, the scientific method, The Wealth of Nations by Adam Smith, transaction costs, transfer pricing, traveling salesman, union organizing
Its purest manifestations are in Taiwan, Hong Kong, and Singapore, where the Chinese are an ethnic majority and the state has not forced economic development along an ideologically determined path, as in the PRC. But this culture can also be seen within the minority Chinese ethnic enclaves in Malaysia, Thailand, Indonesia, and the Philippines, and it has appeared in the open, private economy that has flourished in the PRC since Deng Xiaoping’s economic reforms of the late 1970s. And, as the story of Wang Laboratories suggests, it is even evident among Chinese in the United States, despite the relatively higher degree of assimilation into the dominant culture there than in Southeast Asia. The fact that a similar pattern of economic behavior emerges whenever governments allow Chinese communities to organize their own affairs suggests that it is in some sense a natural outgrowth of Sinitic culture.
The political history of this century has reinforced that feeling: two revolutions, warlordism, foreign occupation, collectivization, the insanity of the Cultural Revolution, and then decollectivization after the death of Mao have all taught the Chinese peasant that nothing is certain in the political environment. Those in power today may be the underdogs of tomorrow. By contrast, the family provides at least a modicum of certainty: in providing for one’s old age, it is far better to put one’s faith in one’s sons than in the law or changeable political authorities. Monumental changes have taken place in China since Deng Xiaoping’s reforms of the late 1970s and the marketization of a large part of the Chinese economy since then. But the reform was, in another sense, simply the restoration of older Chinese social relationships. It turned out that the self-sufficient peasant household had not been destroyed by communism, and it came roaring back when given a chance by the rural responsibility system. The anthropologist Victor Nee admitted, somewhat poignantly, that he had wanted to find that social bonds created by the communist commune system had survived and were even strengthened by two decades of collective farming.
Dore, British Factory, Japanese Factory (London: Allen and Unwin, 1973), p. 396. 40Collcutt in Rozman (1991), pp. 147-151. 41Morishima (1982), p. 105. 42Chalmers Johnson, MITI and the Japanese Miracle (Stanford: Stanford University Press, 1982), pp. 11-12. 43“Inside the Charmed Circle,” Economist, January 5, 1991, p. 54. 44On the operations of Japanese multinationals in the United States, see James R. Lincoln, Jon Olson, and Mitsuyo Hanada, “Cultural Effects on Organizational Structure: The Case of Japanese Firms in the United States,” American Sociological Review 43 (1978): 829-847. 45Deng Xiaoping is something of an exception to this. Since 1981 his nominal position has been head of the Military Commission, while he nonetheless had supreme authority over the government and the Communist party. This kind of indirect power, however, has not been the rule in Chinese history. 46See Saburo Shiroyama, “A Tribute to Honda Soichiro,” Japan Echo (Winter 1991): 82-85. 47See, for example, Barrington Moore, Jr., Social Origins of Dictatorship and Democracy (Boston: Beacon Press, 1966). 48Norman Jacobs, The Origins of Modern Capitalism in Eastern Asia (Hong Kong: Hong Kong University Press, 1958), p. 29. 49Richard D.
affirmative action, anti-communist, banking crisis, battle of ideas, Boycotts of Israel, Bretton Woods, British Empire, capital controls, central bank independence, Chelsea Manning, colonial exploitation, colonial rule, corporate social responsibility, credit crunch, cuban missile crisis, Deng Xiaoping, Edward Snowden, energy security, energy transition, European colonialism, eurozone crisis, experimental subject, F. W. de Klerk, facts on the ground, failed state, financial innovation, Food sovereignty, Francis Fukuyama: the end of history, full employment, future of journalism, high net worth, invisible hand, Julian Assange, Mikhail Gorbachev, millennium bug, Mohammed Bouazizi, Monroe Doctrine, Naomi Klein, Northern Rock, RAND corporation, Ronald Reagan, Silicon Valley, South China Sea, statistical model, structural adjustment programs, too big to fail, trade liberalization, trade route, UNCLOS, UNCLOS, uranium enrichment, Washington Consensus, WikiLeaks, éminence grise
No world region received more “aid.”17 Driven by Cold War exigencies—that is, an obsession with the containment or rollback of communism at any cost—the US ended up supporting anticommunist Southeast Asian dictators such as Ferdinand Marcos (Philippines) and Suharto (Indonesia), who committed egregious human rights violations and stubbornly blocked any form of genuine democratization at home.18 THE UNIPOLAR MOMENT By the 1980s, a wave of democratization was sweeping across East Asia, toppling authoritarian regimes in the Philippines, South Korea, and Taiwan. But “regime change” did not significantly alter these countries’ strategic relationship with—and dependency on—the US. Meanwhile, post-Mao Beijing, under Deng Xiaoping, emerged as a major Western strategic partner, further isolating Moscow and post-unification Hanoi.19 The decisive collapse of the Soviet Union in 1991 sparked a triumphalist celebration of American prowess, with conservative thinkers such as Francis Fukuyama prematurely declaring “The End of History.” For Fukuyama, the apparent defeat of communism supposedly underscored the emergence of democratic capitalism as the ideological endpoint of human history, with US hegemony defining and underpinning the architecture of the post–Cold War global order.20 America’s wholesale embrace of its newfound role as the sole global superpower was starkly evident in key strategic documents such as the infamous 1992 Defence Planning Guidance, under the administration of George H.
Washington’s critics, however, maintain that the US is using the maritime disputes as a pretext to isolate China, increase arms exports to allies, and justify as well as further expand its already significant military presence in the region. Chinese leaders argue vehemently that extra-regional actors such as the US should not intervene in what are essentially bilateral, regional disputes in Southeast Asia. CHINA With the disappearance of the Soviet Union, communist China represented a potential source of threat to US hegemony in Asia in the post–Cold War era. But the pragmatic leadership of Deng Xiaoping—who built on the nascent rapprochement between Chairman Mao and President Nixon in the early 1970s—and of his successors, especially Jiang Zemin, paved the way for almost three decades of “strategic co-habitation” between Beijing and Washington.33 For much of the post–Cold War period, Indonesia tried to balance its relations with China and the US equally, welcoming strategic cooperation and economic engagement with both powers.
In spite of the influence wielded by Filipinos of Chinese ancestry, recent scandals have reawakened long-held views among Filipinos that link ethnic Chinese to corrupt practices. [08MANILA998] Interestingly, the cable notes Washington’s confidence that its supposed popularity among the Filipino populace and its self-proclaimed consistent commitment to good governance in the Philippines will ensure revitalized Philippine-China ties “do not imply a weakening of our strong bonds with the Philippines,” and that the latent prejudice against China has been reinforced by Beijing’s recent mishaps—significantly limiting the impact of China’s soft power.35 A crucial indication of rising worries over China’s renewed assertiveness was Singapore’s decision to share its growing concerns with the American diplomats. For decades, Singapore sought a perfect balance between its relations with the US and China, serving as diplomatic intermediary between the two great powers. Singapore’s paramount leader, Lee Kuan Yew, always maintained strong ties with the upper echelons of the Chinese Communist Party, even serving as a trusted advisor to luminaries such as Mao Zedong and Deng Xiaoping. Singapore also played a crucial role in facilitating China’s efforts to improve relations with ASEAN countries, with Singaporean leaders repeatedly emphasizing the benign aspects of China’s rise and downplaying concerns with its opaque political system and rapid military modernization program.36 In a diplomatic cable titled “Singapore Takes Notice as China Becomes More Assertive,” the American embassy in Singapore, after extensive discussions with leading local academics and journalists, aptly reflects the shifting regional attitude toward China in recent years: Singapore hopes the United States will not back down in the face of Chinese pressure because that would encourage China to become increasingly assertive in its dealings with other countries on issues such as its claims in the South China Sea.
Albert Einstein, barriers to entry, Berlin Wall, collective bargaining, congestion charging, Corn Laws, David Ricardo: comparative advantage, decarbonisation, Deng Xiaoping, Fall of the Berlin Wall, George Akerlof, invention of movable type, John Nash: game theory, John von Neumann, market design, Martin Wolf, moral hazard, new economy, price discrimination, Productivity paradox, race to the bottom, random walk, rent-seeking, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, sealed-bid auction, second-price auction, second-price sealed-bid, Shenzhen was a fishing village, special economic zone, spectrum auction, The Market for Lemons, Thomas Malthus, trade liberalization, Vickrey auction
The Soviet president, Nikita Khrushchev, made a similar mistake following a visit to the United States, when he ordered Soviet fields to be replanted with the corn he had seen growing in Iowa. The failure was a catastrophe.) It is worth remembering that market failures, while sometimes serious, are never as tragic as the worst failures of governments like Mao’s. In 1976, after many more crimes against his own people, Mao died. After a short interregnum, he and his followers were replaced by Deng Xiaoping and his allies in December 1978. Just five years later, the change in China’s economy was incredible. Agricultural output, always the headache of the Chinese planners, had grown by 40 percent. Why? Because those planners had brought the “world of truth” into China. As we discovered in Cameroon, incentives matter. Before 1978, China had some of the most perverse incentives in the world. Before Deng took power, Chinese agriculture had been lo- cally organized into collectives of twenty or thirty families.
and institutions, 189, 190–93 and free markets, 228–29 and taxation, 185, 187–88 prices, 6–8, 12–13, 31–35, 38, 39– Cosi, 6, 7, 13 40 Costa Coffee, 31–34, 39, 42 and rents, 8–11, 12–13, 31–35 coupons, 36 and scarcity, 31–35 Crescent, 171 collective bargaining, 25 crime, 23–25 collectives, 236 Cuba, 226 collusion, 16, 160–65 Cultural Revolution, 232, 239 command economies, 235 currency exchange, 207 Common Agricultural Policy, 217, 218 cynicism, 155 compact discs (CDs), 53 Czech Republic, 121 comparative advantage, 201–11, 225, 236 dams, 193–97 competition deductibles, 119, 124 among professionals, 26–27 demand, 26 avoiding, 160 democracy, 199, 226 and comparative advantage, 201– Deng Xiaoping, 235, 237, 240, 242 11, 225, 236 development entry into marketplaces, 21 capital investments, 237–41 and free markets, 78 in China, 180–81, 231–32, 233, international, 26, 203 237–41, 249–52 preventing, 23–25 and foreign direct investment, and prices, 68 212–13, 214, 215–16, 246, 247 and production choices, 66 impact of corruption, 197–200 and profitability, 24 and institutions, 189 and rents, 15, 21–23 irrigation projects, 193–97 and starting positions, 73 and poverty, 193–97, 197–200, sustainable competitive advantage, 228–30 19 dictatorships, 182–86, 187 UK spectrum auction, 169 digital media, 53 complexity of economic systems, 2, diminishing returns, 180 10, 14, 65, 66 discounts, 36, 56 computer industry, 51–52, 80 disease, 53–54, 58, 251.
affirmative action, Albert Einstein, Big bang: deregulation of the City of London, bilateral investment treaty, borderless world, Bretton Woods, British Empire, Brownian motion, call centre, capital controls, central bank independence, colonial rule, Corn Laws, corporate governance, David Ricardo: comparative advantage, Deng Xiaoping, Doha Development Round, en.wikipedia.org, falling living standards, Fellow of the Royal Society, financial deregulation, fixed income, Francis Fukuyama: the end of history, income inequality, income per capita, industrial robot, Isaac Newton, joint-stock company, Joseph Schumpeter, Kenneth Rogoff, labour mobility, land reform, low skilled workers, market bubble, market fundamentalism, Martin Wolf, means of production, moral hazard, offshore financial centre, oil shock, price stability, principal–agent problem, Ronald Reagan, South Sea Bubble, structural adjustment programs, The Wealth of Nations by Adam Smith, trade liberalization, transfer pricing, urban sprawl, World Values Survey
Of course, SOEs are often in industries where there is a natural monopoly, where increasing competition within the industry is either impossible or would be socially unproductive. But, even in these sectors, some degree of competition may be injected by boosting some ‘neighbouring’ industries (airlines vs railways).27 In conclusion, there is no hard and fast rule as to what makes a successful state-owned enterprise. Therefore, when it comes to SOE management, we need a pragmatic attitude in the spirit of the famous remark by China’s former leader Deng Xiao-ping: ‘it does not matter whether the cat is white or black as long as it catches mice.’ * There is no agreed definition of what is a controlling stake in an enterprise’s shares. A holding of as little as 15% could give the shareholder effective control over an enterprise, depending on the holding structure. But, typically, a holding of around 30% is considered a controlling stake. * The full argument is somewhat technical, but the gist of it is as follows.
There lies the explanation for the sight of the professional hand-raisers for the geriatric members of the Nationalist Party Politburo that amused the rest of the world so much in the 1980s. Taiwan’s second president, Chiang Ching-Kuo, who succeeded his father, Chiang Kai-Shek, as the leader of the party and the head of the state, was a communist as a young man and studied in Moscow with future leaders of the Chinese Communist Party, including Deng Xiao-ping. He met his Russian wife when he was studying in Moscow. 8 Korea also had its share of Marxist influence. General Park Chung-Hee, who masterminded the Korean economic miracle, was a communist in his young days, not least because of the influence of his brother, who was an influential local communist leader in their native province. In 1949, he was sentenced to death for his involvement in a communist mutiny in the South Korean army, but earned an amnesty by publicly denouncing communism.
23andMe, affirmative action, Albert Einstein, artificial general intelligence, Asperger Syndrome, barriers to entry, brain emulation, cloud computing, cognitive bias, correlation does not imply causation, crowdsourcing, Daniel Kahneman / Amos Tversky, David Brooks, David Ricardo: comparative advantage, Deng Xiaoping, en.wikipedia.org, feminist movement, Flynn Effect, friendly AI, hive mind, impulse control, indoor plumbing, invention of agriculture, Isaac Newton, John von Neumann, knowledge worker, Long Term Capital Management, low skilled workers, Netflix Prize, neurotypical, pattern recognition, Peter Thiel, phenotype, placebo effect, prisoner's dilemma, profit maximization, Ray Kurzweil, recommendation engine, reversible computing, Richard Feynman, Richard Feynman, Rodney Brooks, Silicon Valley, Singularitarianism, Skype, statistical model, Stephen Hawking, Steve Jobs, supervolcano, technological singularity, The Coming Technological Singularity, the scientific method, Thomas Malthus, transaction costs, Turing test, Vernor Vinge, Von Neumann architecture
If a Chinese brain-boosting program caused Chinese engineers to innovate in ways that were beyond what Americans were capable of, Americans would almost certainly still benefit economically from Chinese innovation. China’s current rapid economic growth shows why. The Chinese dictator Mao Zedong prevented China from making use of Western technology and imposed economic policies that effectively barred homegrown Chinese innovation. Mao’s successor Deng Xiaoping then opened up China’s economy to the rest of the world, causing China to experience extremely rapid economic growth, mainly because China was able to take advantage of the technologies that Western countries had previously developed. America’s technological “dominance” over China has, counterintuitively, greatly benefited China. Consider what would happen if an extraterrestrial intelligence landed on Earth, built a few cities in Antarctica, and produced goods that were beyond the technological capacity of humans.
See also amphetamines; amphetamines (“speed”); sleep deprivation Adderall (See under Adderall) author considers them safe and they significantly increase IQ, memory and mental staying power, 124, 211 author’s use of, 104–5, 112 benefits of, 155 as bio-enhancements for human self-improvement, 109 brain-power heightened by, 155 dangerous but effective, 124–25 doctors’ intelligence improved by, 158 drugs enhance excitement levels of different jobs, 159 drugs make life tolerable, 159 drugs reduce chronic unemployment, 159 drug studies, warnings about, 110–12 drugs would boost income of unskilled laborers, 159 economic inequality among nations, greatly reduces, 125 government-licensed occupations and, 158 hourly wages boosted by, 155 income increased by factor of 100, 125 investment banking and, 158–59 lawyers and, 158 militaries and, 109 modafinil, 104 opposition to, 109–10 parents concern that their children have, 211–12 pharmaceutical companies and, 108–9 Prisoners’ Dilemma of drug use and risks, 160–62 professors and, 158 regulated drugs, 123 Ritalin, xv, 104–5 safe and effective, 123–24 SAT tests and, 162–63 side-effects, 112 US ban on, 123–25 cognitive-enhancing technologies, 173 cognitive skills, human, 77 cognitive skills of hunter-gatherers, 76 cognitive training, 114 cognitive traits, farming-friendly, 76 Cohen, Gene, 113 cold-blooded killer, 93 Cold War, 127 community, short-term—oriented, 80 comparative advantage, 135–37 computational science, 185 computer(s) with brilliance of von Neumann, xiii chess, 132–33 Moore’s Law and computer chips, 5 nanotubes, 3-D molecular, 4 performance, 5 simulation, 45 simulation of chimpanzee’s brain, 177 Singularity-enabling of, 6 computing hardware, 7 construction workers, 179–80 consumer, hyper-rational, 42 consumer preference rankings, 42 consumption equality, 167–69 convergent evolution, 202 Coulson, Andrew, 172 crowdsourcing, 20 cruise missiles, hypersonic stealth, 127 cryocrastination, 219–20 cryonics, 213–21 Cryonics Institute, 214–15 cryonics patient, first, 220 crystallized intelligence, 115 culture software, 79 cystic fibrosis, 83–84 D Daily Princetonian, 86 DARPA. See Defense Department research agency (DARPA) Darwin, Charles, 91 dating market power of men, 194 debt-ridden countries, 177 Deep Blue (IBM’s supercomputer), 4, 132 Defense Department research agency (DARPA), 121 de Grey, Aubrey, 35 dementia, 108, 116, 149. See also Alzheimer’s demographic crisis from aging population, 157 Deng Xiaoping, 122 depression, 93 designer babies, 171 Devil. See ulta-AI, unfriendly diabetes, 178 dictators, 122, 128, 220 dictatorships, 94, 126, 128 digitally recorded music, 167 Dilbert, 43, 193 dining rooms, first-rate, 91 disabled children, 212 DNA brain’s, xi sequencing, 20, 72, 116 sequencing, automated, 96 sequencing technology, 72 of sperm, 86 donuts vs. antigravity flying cars, 136–37 donut wand, 137 double-blind tests, 111–12 double-blind trials, 110 Down Syndrome, 126 Drexler, Eric, 35, 213, 215 drug development, 183 drug studies, warnings about, 110–12 dual n-back computer game, 114–15, 212 dystopia, 21, 56 E Eastern Europe, xi, 127, 206 ecological niche, 75 economic prosperity, ix The Economist, 70 economists love mathematical models, 37 EconTalk (podcast), 165 educational innovation, 117 education for poor children, 172 egg marketing, 86–87 Einstein, Albert, xii, 91, 96 Eisenhower, President, xiii elite prep schools, 66 Ellison, Larry, 170 embryo-picking parents, 93 embryo selection autism, against, 91 autism and genius, against, 91 autism and lower prospects for survival of humanity, against, 92 for creating super-geniuses, 90 genetic tradeoffs of, 88 iterated, 98–99 procedure, 84–85 selection for noncognitive characteristics vs.
The Price of Everything: And the Hidden Logic of Value by Eduardo Porter
Asian financial crisis, Ayatollah Khomeini, banking crisis, barriers to entry, Berlin Wall, British Empire, capital controls, Carmen Reinhart, Cass Sunstein, clean water, Credit Default Swap, Deng Xiaoping, Edward Glaeser, European colonialism, Fall of the Berlin Wall, financial deregulation, Ford paid five dollars a day, full employment, George Akerlof, Gordon Gekko, guest worker program, happiness index / gross national happiness, housing crisis, illegal immigration, immigration reform, income inequality, income per capita, informal economy, invisible hand, Jean Tirole, John Maynard Keynes: technological unemployment, Kenneth Rogoff, labor-force participation, laissez-faire capitalism, loss aversion, low skilled workers, Martin Wolf, means of production, Menlo Park, Mexican peso crisis / tequila crisis, new economy, New Urbanism, pension reform, Peter Singer: altruism, pets.com, placebo effect, price discrimination, price stability, rent-seeking, Richard Thaler, rising living standards, risk tolerance, Robert Shiller, Robert Shiller, Ronald Reagan, Silicon Valley, stem cell, Steve Jobs, Stewart Brand, superstar cities, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, trade route, transatlantic slave trade, transatlantic slave trade, ultimatum game, unpaid internship, urban planning, women in the workforce, World Values Survey, Yom Kippur War, young professional
Still, authorities in Jiangxi would fine her perhaps up to five thousand yuan, she says, to register her illicit kids and send them to school. “If you don’t pay the fine,” she said, “they take your house; they sterilize you.” Jiang Jin’s predicament is not unusual. Like many other Chinese, she wanted a boy, and kept having children until one came. Other Chinese have resorted to more radical solutions. When Deng Xiaoping instituted China’s one-child policy in 1979, his intention was to limit the size of the population so that it would peak at 1.2 billion before shrinking to 700 million by the middle of this century. But he didn’t foresee one of its most notorious consequences. The systematic killing of girls, as families who had a baby girl got rid of her to make space for the boy they needed to take the bloodline to the next generation.
Congressional Budget Office (CBO) Consumer Product Safety Commission consumers, consumption free things and contraception Cook, James Copernicus, Nicolaus copyright corporations wages and Corrupt and Illegal Practices Prevention Act (1883) corruption politics and cotton coyote credit crime Crompton, Samuel Cruise, Tom Cuba culture affordable traits and politics and repugnance and Daimler AG Dark Knight, The (movie) Darwin, Charles Darwinism Das Gupta, Monica Dasgupta, Partha Deaton, Angus De Beers Defense Department, U.S. demand democracy Deng Xiaoping Denmark, Danes Denver shoppers deregulation Descartes, René Desperate Housewives (TV show) developing world climate change in garbage dumps in sex in Dickens, Charles Digital Rights Management technologies (DRM) discount rate discrimination divorce finances and dogs, as food dot.com bubble dowries drivers drugs abuse of Duke University Dunkin’ Donuts dwarf tossing Easter Island Easterlin, Richard Eastern Europe, former Soviet satellites in Eastman, George Eastman Kodak Company economic growth happiness and economics for a new world “Economics of Superstars, The” (Rosen) education of children wages and of women efficient markets eggs Egypt, Egyptians Ehrlich, Paul R.
Consent of the Networked: The Worldwide Struggle for Internet Freedom by Rebecca MacKinnon
A Declaration of the Independence of Cyberspace, Bay Area Rapid Transit, Berlin Wall, business intelligence, Cass Sunstein, Chelsea Manning, citizen journalism, cloud computing, cognitive dissonance, collective bargaining, conceptual framework, corporate social responsibility, Deng Xiaoping, digital Maoism, don't be evil, Filter Bubble, Firefox, future of journalism, illegal immigration, Jaron Lanier, Jeff Bezos, Julian Assange, Mark Zuckerberg, Mikhail Gorbachev, national security letter, online collectivism, pre–internet, race to the bottom, Richard Stallman, Ronald Reagan, sharing economy, Silicon Valley, Silicon Valley startup, Skype, Steve Crocker, Steven Levy, WikiLeaks
The 1989 Tiananmen Square protests were sparked by the death of a reformist leader, Hu Yaobang, but the fire was fueled by the historic Beijing visit of Soviet leader Mikhail Gorbachev soon thereafter. Students hoped that Chinese leaders would follow his policy of glasnost, the Russian word for “openness,” which became the catchphrase for a loosening of controls on the Russian press and discussion of political reform. After the bloody June 4 crackdown, Deng Xiaoping quashed all hopes that China would follow Gorbachev’s lead. Instead Deng focused aggressively and exclusively on the Chinese version of perestroika, or “restructuring”: accelerating the economic reforms that have made China the world’s second-largest economy today and a rising global power. Deng was betting that most Chinese people would agree that the trade-off between economic prosperity and political liberty was worthwhile—or at least enough of China’s elites would believe so and maintain their allegiance to the Communist Party as the guarantor of prosperity and stability.
Buzz Cade, Marilyn Cafferty, Jack Calvert Calyx Internet Access Cameron, David Castells, Manuel Cellan-Jones, Rory Censorship of categories of Internet traffic of data and text messages freedom vs. security Google and national-level filtering systems opposition to national censorship by private intermediaries Center for Democracy and Technology Center for Information Technology Policy, Princeton Center for Internet and Society Chandler, Mark Chaos Computer Club Charter of Human Rights and Principles for the Internet Chesterman, Simon Chile, net neutrality law in China, Internet in censorship controls on political information e-commerce market “e-parliament” Google government-friendly communities “great firewall of China” paradox of patriotic hackers role of government social networking sites China Digital Times, on censorship of Google pullout China Netcom China Unicom Chinese Communist Party control of dissent by economic leadership of use of Internet by Christopher, Warren Cisco Systems, sales of surveillance systems to authoritarian governments Citizen-centric society, threats to Citizen Lab, University of Toronto Citron, Danielle “Civil Rights in an Information Age” (Citron) Cleek, Ashley Clinton, Hillary The Cluetrain Manifesto (Searls) Code and Other Laws of Cyberspace (Lessig) Cognitive Surplus (Shirky) Cohen, Jared Comcast Committee to Protect Journalists Commotion Wireless Communication Power (Castells) “Communique on Principles for Internet Policymaking” (OECD) Contemporary Business News Copyright enforcement Anti-Counterfeiting Trade Agreement (ACTA) concerns about abuse of effects of lobbying on free expression and HADOPI as rationale for surveillance and censorship website shutdowns Council of Europe Crabgrass “Creating Passionate Users” (Sierra blog) Creative Commons Cryptome Cyber-separatism Cybersecurity and Internet Freedom Act of 2011 Dailymotion Daum Deep packet inspection (DPI) Deibert, Ronald Democracy Forum Democracy in America (de Tocqueville) Democracy movements, origin of Democratizing Innovation (von Hippel) Deng Xiaoping Deng Yujiao Denial of service attacks (DDoS) Denton, Nick Department of Homeland Security (DHS) Desai, Nitin Diaspora Diebold Election Systems Digital bonapartism defined in Russia Digital commons activism and licensing need for protection of individual rights role of technical protocols of Digital Due Process (DDP) bill Digital Economy Act (2010) Digital Justice Coalition Digital Millennium Copyright Act (DMCA) Digital real estate Discipline & Punish (Foucault) Doctorow, Cory Doherty, Will Domain name system (DNS) Domini DPI (deep packet inspection) Drumbeat Drummond, David Drupal Dui Hua Foundation Dynamic Coalition on Internet Rights and Principles Dynaweb e-G8 conference ECPA (Electronics Communications Privacy Act of 1986) Egypt activism in government control of mobile phones in surveillance in use of Tor in Egyptian Blogs Aggregator 18th Brumaire of Louis Napoleon (Marx) El-Fattah, Alaa Abd El-Hamalawy, Hossam Electronic Frontier Foundation (EFF) Electronic Industry Code of Conduct Electronics Communications Privacy Act of 1986 (ECPA) Ericsson Estrada, Joseph European Digital Rights Initiative (EDRI) European Service Providers Association EveryDNS Exodus International Extractive Industries Transparency Initiative ExxonMobil Facebook activism and addition of new encryption and security settings attitude toward anonymity digital commons and effectiveness for activists in Egypt inconsistency of policy enforcement lobby to update ECPA politicians and privacy issues protection from hate and harassment “Quit Facebook Day,” real-name policy The Facebook Effect (Kirkpatrick) Facebook Zero Fair Labor Association (FLA) Falun Gong FBI (Federal Bureau of Investigation) F&C Asset Management FCC (Federal Communications Commission) Federal Trade Commission Federalist No. 10 Feriani, Samir The File (Ash) The Filter Bubble (Pariser) Financial Times, on anonymity FinFisher Fiore, Mark Firefox Flickr, removal of photos of Egyptian state security agents from Folksam Ford Motor Company Foreign Affairs on Google’s vision of networked world on US obsession with circumvention Foreign Intelligence Surveillance Act (FISA) Amendments Act (2008) Foucault, Michel Franken, Al Free Press Freedom House Freedom of Connection—Freedom of Expression: The Changing Legal and Regulatory Ecology Shaping the Internet (UNESCO) FreedomBox Freegate Frydman, Gilles “Fugitivus,” The Future of Power (Nye) Gaddafi, Muammar Gamma International UK Ltd.
Earth Wars: The Battle for Global Resources by Geoff Hiscock
Admiral Zheng, Asian financial crisis, Bakken shale, Bernie Madoff, BRICs, butterfly effect, clean water, cleantech, corporate governance, demographic dividend, Deng Xiaoping, Edward Lorenz: Chaos theory, energy security, energy transition, eurozone crisis, Exxon Valdez, flex fuel, global rebalancing, global supply chain, hydraulic fracturing, Long Term Capital Management, Malacca Straits, Masdar, megacity, Menlo Park, Mohammed Bouazizi, new economy, oil shale / tar sands, oil shock, Panamax, purchasing power parity, Ralph Waldo Emerson, RAND corporation, Shenzhen was a fishing village, Silicon Valley, smart grid, South China Sea, sovereign wealth fund, special economic zone, spice trade, trade route, uranium enrichment, urban decay, working-age population, Yom Kippur War
Even in this difficult environment, Japan remained the world’s second-largest economy until 2010; its domestic demand, its science and technology, its proven manufacturing expertise—including its ability to establish world-class plants offshore—its trading networks and its intellectual and financial capital ensured its continued importance in global business circles. Meanwhile, China’s paramount leader Deng Xiaoping (who died in 1997) had reinvigorated the reform process at the beginning of the 1990s, and his new team led by President Jiang Zemin, joined later by Premier Zhu Rongji, was presiding over a long period of 8 percent or better growth that catapulted China’s economy into the major league. The special economic zones that began in the early 1980s with the sleepy fishing village of Shenzhen, just across from Hong Kong on the Chinese mainland, were beginning to deliver on their trade and investment potential.
Black Sea Blavatnik, Leonard Bogdanov, Vladimir Bohai Sea Bolivia Bontang, Indonesia Borneo Botswana Bouazizi, Mohammed BP Gulf of Mexico in Russia Brahmaputra River Brazil ethanol iron ore nuclear power, uranium oil and gas presalt Bridas Corp BrightSource Energy Brookings Institution Brunei Bryant, Robert BSG Group, BSG Resources Buenos Aires Buffett, Warren Bulgheroni, Carlos Bumi Resources Bunge Burma (Myanmar) Burundi BYD Co Cairo Caithness Energy Calderon, Felipe Calicut, India Cambodia Cameco Canada tar sands LNG shale nuclear power, uranium Canadian Association of Petroleum Producers Canadian Natural Resources Canadian Solar Inc Cantarell oil field, Mexico Carabobo, Venezuela Cargill Caribbean Sea Carrizo Oil & Gas Carroll, Cynthia Caspian Sea Cecil, Ronnie Central Asia Centre for Global Energy Studies Century Aluminium Cerrejon Ceyhan, Turkey Chad Chalco Changlang district, India Chatterji, Zohra Chavez, Hugo Chenab River Cheniere Energy Chesapeake Energy Chevron Chile copper lithium China 12th Five-Year Plan coal Communist Party copper iron ore investment abroad nuclear power oil and gas rare metals solar power water wind power China Coal Energy China Development Bank China Guangdong Nuclear Power Group (CGNPG) China Investment Corp (CIC) China Iron and Steel Association (CISA) China Metallurgical Group Corp China Metallurgical Mines Association China Minmetals China Mobile China National Coal Group China National Nuclear Corp (CNNC) China National Offshore Oil Corp (CNOOC) China National Petroleum Corp (CNPC) China Nonferrous Metal Mining Group Co (CNMC) China Petroleum & Chemical Corp (Sinopec) China Railway Construction Corp China Railway Engineering Corp China Shenhua Coal China State Shipbuilding Corp Chinalco Chodiev, Patokh Chromium Chubu Electric Power Co Chung Joon-yang Chunxiao gas field CITIC Clinton, Bill Clinton, Hillary CNOOC Coal production clean technology metallurgical thermal Coal India Ltd Codelco Codexis COFCO Colombia Common Economic Space Comtec Solar Conde, Alpha Conga, Peru Congo, Democratic Republic (DRC) ConocoPhillips Cosmo Oil Consolidated Thompson Iron Ore Mines Conte, Lansana Copper Cosan Critical Materials Strategy report Cuba Cubapetroleo Currie, Jeffrey Curtis, Nicholas Cyprus Dadis Camara, Moussa Dalian (Port Arthur) D’Amato, Richard Danube River Daqing, China Datong Coal Dauphin, Claude Davis, Mick Daye Non-ferrous Metals Co (DNMC) De Beers DeKastri oil terminal De Margerie, Christophe De Turckheim, Eric Deng Xiaoping Denmark Deripaska, Oleg Diaoyutai (Senkaku islands) Disi-Saq aquifer Domen Kazunari DONG Energy Dongfang Turbine DP Clean Tech Drummond Co Du Plessis, Jan Dubai Dudley, Robert (Bob) Dunand, Marco Dutch East India Company (VOC) Eagle Ford shale field East China Sea East Prinovozemelsky field East Timor (Timor-Leste) EBX Ecuador EDF Elenin, Platon (Boris Berezovsky) Empresas Frisco Enbridge Encana Enercon Enex EngelInvest Group England Eni E.ON Equinox Minerals Erdenes-Tavan Tolgoi Eritrea Escondida mine, Chile Essar Oil Essar Steel Estonia Ethanol Ethiopia Eurasian Energy Corp Eurasian National Resources Corp Europe nuclear power solar power shale wind power European Union (EU) European Wind Energy Association Eurozone Evraz Group Exxon Neftegas ExxonMobil Falklands (Malvinas) Fan Shenggen Fayetteville shale Fedun, Leonid Ferghana Valley, Central Asia Ferreira, Murilo First Quantum First Solar Ford Motor Forrest, Andrew Fortescue Metals Group Foster, Maria das Gracas Silva Fosun International Fox, Josh Fracturing, “fracking” France nuclear power Freeport McMoRan Fresnillo Friedland, Robert Fridman, Mikhail Frolov, Alexander Fu Chengyu Fukushima Gabon Gaddafi, Muammar Galp Energia Gamesa Gandhi, Rahul Gandur, Jean Claude Ganges River Gangotri Glacier Gao Jifan Garnaut, Ross Gas Authority of India Ltd (GAIL) Gazprom Gazprom Neft GCL Poly Energy Gecamines General Electric (GE) GE Wind Energy General Motors (GM) Germany nuclear power solar power wind power Gevo Ghawar oil field, Saudi Arabia Gidropress Gindalbie Metals Gladstone LNG Glasenberg, Ivan Glencore International Glencore Xstrata International Global Wind Energy Council (GWEC) Gold Goldman, Arnold Goldman Sachs Google Gorgon LNG project Grasberg mine, Indonesia Great Artesian Basin Great Lakes Great Man-made River (GMR), Libya Greece Green Energy Technology Greenland Greenland Minerals and Energy Grupo Carso Grupo Mexico Guangzhou Guarani aquifer Guinea Gunvor Group Guodian United Power Technology Gutseriev, Mikhai Hainan island Hancock Coal, Hancock Prospecting Hansen Transmissions Hanwha Solarone Hasankeyf Haynesville shale field Hayward, Tony Hebei Iron & Steel Heilongjiang-Amur aquifer Himalayas Hindalco Hindustan Copper Hitachi Hokkaido Holland Hong Kong Hormuz, Strait of Houser, Trevor HRT Participacoes em Petroleo HSBC Hu, Stern Hunan Valin Hunt, Simon Hydro power Ibragimov, Alijan Idemitsu Kosan Ilisu Dam, Turkey Impeccable, USNS Imperial Oil India coal copper hydropower iron ore nuclear power oil and gas solar power wind power Indian Ocean Indian Oil Corp Ltd (IOCL) Indonesia coal oil and gas Indus River Industrial & Commercial Bank of China Industrias Nucleares do Brazil (INB) Industrias Penoles Inmet Inner Mongolia Yitai Coal Inpex International Atomic Energy Agency International Copper Study Group International Energy Agency International Finance Corp International Food Policy Research Institute International Monetary Fund Interros Inuit Iran South Pars Iraq Iraq National Oil Co (INOC) Ireland Iron ore Israel Istanbul Itaipu Dam Italy ITOCHU Ivanhoe Mines Ivory Coast JA Solar Jaeggi, Daniel Jakarta Jamnagar Japan earthquake and tsunami nuclear power and Fukushima disaster solar power steel industry trading houses Japan Oil, Gas and Metals National Corp (JOGMEC) Japan Petroleum Exploration Co (Japex) Japan Renewable Energy Foundation Jazan JFE Jhelum River Jiang Jiemin Jiang Zemin Jiangsu Shagang Jiangxi Copper Corp Jin Baofang Jinchuan Group Jindal Steel Jordan, Jordan River JSW Steel Jubail JX Holdings Kaltim Prima Coal, Indonesia Kamchatka peninsula Kan Naoto Kansai Electric Power Co Karachaganak field, Kazakhstan Karachi, Pakistan Karakoram Pass Kashagan field, Kazakhstan Kashgar, China Kashmir Katanga Mining Kazmunaigas Khan, German Khartoum, Sudan Kazakhmys Kazakhstan coal copper nuclear test site, uranium oil and gas Kazzinc Kazatomprom Kenya Keystone pipeline Khabarovsk, Russia Khodorkovsky, Mikhail Khudainatov, Eduard Khunjerab Pass Khuzestan province, Iran Kim, Vladimir Kloppers, Marius Koc Holding Koizumi Junichiro Kolkata (Calcutta) Kolomoisky, Igor Korea Electric Power Corp (Kepco) Korea Gas (KoGas) Krishna-Godavari (KG) Basin, India Kuantan, Malaysia Kudankulam, India Kulibayev, Timur Kuwait Kuwait Foreign Petroleum Exploration (Kufpec) Kuwait Petroleum Corp (KPC) Kuzbassrazrezugol Kyrgyzstan Kyushu Electric Power Co Kvanefjeld, Greenland Lagos Lanco Infratech Laos Las Bambas, Peru Lavrov, Sergey LDK Solar Lead Lebanon Legacy Iron Ore Li Keqiang Li Xianshou Li Yihuang Liang Guanglie Liberia Libya Lifton, Jack Liquefied natural gas (LNG) Lisin, Vladimir Lithium Lithuania Lombok Strait Lomonosov ridge Lorenz, Edward Los Bronces, Chile Louis Dreyfus Lu Tingxiu Lu Xiangyang LUKOIL Lumwana, Zambia Lundin Mining Lynas Corp Ma Zhaoxu Maanshan Iron & Steel Macarthur Coal McArthur River McClendon, Aubrey McMahon Line MacMines AustAsia Madagascar Magnitogorsk Iron & Steel (MMK) Makhmudov, Iskander Malacca, Strait of Malaysia Malawi Malvinas (Falklands) Manila Mao Zedong Marcellus shale field Marubeni Corp Mary River Masdar Mashkevich, Alexander Mechel Medcalf, Rory Mediterranean Sea Medvedev, Dmitry MEG Energy Mehta, Sureesh Mekong River Mekong River Commission Melnichenko, Andrey MEMC Mercuria Group Merkel, Angela Metalloinvest Metorex Mexico Mexico City Mexico, Gulf of Miao Liansheng MidAmerican Energy Middle East Mikhelson, Leonid Miller, Alexei Mineralogy/Resourcehouse Mittal, Lakshmi Minmetals Resources Mitsubishi Chemical Mitsubishi Corp Mitsubishi Electric Mitsubishi Heavy Industries Mitsui & Co Modi, Narendra Molycorp Mongolia coal copper uranium Mongolia, Inner Montana Resources Morocco Mordashov, Alexei Mount Weld, Australia Mountain Pass, California Mozambique Mulva, Jim Mumbai (Bombay) Muziris, India Myanmar (Burma) Nabucco project Namcha Barwa, Tibet Namibia Nansha (Spratlys) National Iranian Oil Co (NIOC) National Oil Co of Libya National Mineral Development Corp (NMDC), India National Thermal Power Corp (NTPC), India Natuna field Natural gas Nazarbayev, Nursultan Neelum river Neira, Dr Maria Netherlands New Delhi New Hope Coal Newcastle, Australia Newmont Mining NewZim Steel Niger Nigeria Nigerian National Petroleum Corp Nile River Ningbo Niobrara shale field Niobium Nippon Mining Nippon Oil Nippon Steel Noble Group Noda Yoshihiko Nomura China Non-Proliferation Treaty Norilsk Nickel North Atlantic Gyre North Caspian Operating Co North Korea North Pacific Gyre North Pars field, Iran North Pole North Slope, Alaska North West Shelf, Australia Northern Sea Route, Russia Northwest Passage, Canada Norway Novatek Novolipetsk Steel (NLMK) NRG Energy Nubian Sandstone aquifer Nuclear power Nuclear Power Corp of India Ltd (NPCIL) NUKEM Nunavut Obama, Barack Occidental Petroleum Corp Ogallala aquifer OGX Petroleo & Gas Ohmae Kenichi Oil & Natural Gas Corp (ONGC) Oil India Ltd (OIL) Olam International Olympic Dam Oman Ombai Strait ONEXIM Group ONGC Videsh Opium Wars Organization of Petroleum Exporting Countries (OPEC) Origin Energy Oryx Petroleum Osaka Gas Osborne, Milton Oyu Tolgoi, Mongolia Palmer, Clive Pan American Energy Papua New Guinea Paracels Pakistan Paraguay Paraná River Pars Oil & Gas Co Pasha Bulker Patna Peabody Energy Pearl River Pemakochung monastery, Tibet Pemex Peng Xiaofeng Penn West Energy Persian Gulf Pertamina Peru Petrobras PetroChina PetroHawk Energy Petroleos de Venezuela (PDVSA) Petronas Petronet LNG PetroVietnam Philippines Pioneer Natural Resources Pilbara iron ore region, Australia Poland Polo, Marco Popov, Sergey Port Arthur (Dalian) Portugal POSCO Potanin, Vladimir Potash supplies Poussenkova, Dr Nina Praj Industries Pratas islands (Dongsha) Prelude LNG project, Australia Premier Oil Prigorodnoye, Russia PrivatGroup Probo Koala Prodeco Prokhorov, Mikhail Prokopyevskugol PTT Exploration & Production Puducherry (Pondicherry), India Punjab province, Pakistan Putin, Vladimir Qatar QatarGas Qatar General Petroleum Corp (QGPC) Qatar Investment Authority Qatar Petroleum Qteros Quadra FNX Mining Queensland coal basins (Bowen, Galilee, Surat) Rabigh, Saudi Arabia RAIPON Raizen Rare earths Rare metals and materials (indium, gallium, tellurium) Ras Tanura RasGas Rashtriya Ispat Nagam (Vizag Steel) Raspadskaya Rashnikov, Viktor Rave, Dr Klaus Ravi River Red Sea Refineries Reliance Industries ReneSola Renewable Energy Policy Network (REN21) REpower Repsol Repsol Brazil Repsol-YPF Rich, Marc Rio de Janeiro Rio Tinto Plc/Ltd coal copper iron ore uranium Rinehart, Gina Riversdale Mining Roeslani, Rosan Rosatom Rosneft Ross Sea Rothschild, Nathaniel Rousseff, Dilma Royal Dutch Shell Royal Society of Canada Ruia, Shashi and Ravi Rusal RusHydro Russia coal iron ore oil and gas nuclear/uranium Russian Far East Russky Ugol (Russian Coal) Russneft Rwanda RWE Power Saami Sabic Salar de Atacama Salar de Cauchari Salar de Olaroz Salar de Uyuni Sakhalin Sakhalin Oil & Gas Development Saleh, Ali Abdullah Salween River Samruk Energo Samruk Kazyna Samsung Electronics Samsung Heavy Industries Sanaa basin, Yemen Santos basin Santos Ltd Sao Paulo Sargasso Sea Saudi Arabia Saudi Aramco Sawyer, Steve Sechin, Igor Senkaku islands Serageldin, Ismail Sesa Goa Severstal Shanghai Shandong Iron & Steel Group Shanxi Meijin Energy Sharp Corp Shatt al-Arab waterway Shell Australia LNG Shen Wenrong Shenzhen Shi Zhengrong Shougang Beijing Group Shvidler, Eugene Siachen Glacier Siberia Siberian Coal Energy Co (SUEK) Sibneft Siemens Sierra Gorda, Chile Sierra Leone Silver Simandou, Guinea Sindh province, Pakistan Singapore Singh, Manmohan Sino American Silicon SinoHydro Sinopec (China Petroleum & Chemical Corp) Sinosteel Midwest Corp Sinovel Wind Sistema Slavneft Slovakia Soeryadjaya, Edwin SoftBank Sogo Shosha Sojitz Solar power Solar Reserve Son Masayoshi Sonangol Sonatrach South Africa South America South China Sea South Kara Sea South Korea South Kuzbass Coal South Pars field, Iran South Sudan South Yolotan, Turkmenistan Southeast Anatolia Development (GAP) Southeast Asia Southern California Edison Soya Strait Spain Spratlys State Grid, China State Oil Company of Azerbaijan Republic (SOCAR) Statoil Steel Authority of India Ltd (SAIL) Steinmetz, Beny Sterlite Industries Strait of Malacca Strait of Hormuz Strothotte, Willy SUAL Sudan Sumatra Sumitomo Chemicals Sumitomo Corp Sumitomo Metal Suncor Energy Sunda Strait Sundance Resources SunPower Suntech Surgutneftegas Sutlej River Suzlon Energy Swaminathan, M.S.
Adapt: Why Success Always Starts With Failure by Tim Harford
Andrew Wiles, banking crisis, Basel III, Berlin Wall, Bernie Madoff, Black Swan, car-free, carbon footprint, Cass Sunstein, charter city, Clayton Christensen, clean water, cloud computing, cognitive dissonance, complexity theory, corporate governance, correlation does not imply causation, credit crunch, Credit Default Swap, crowdsourcing, cuban missile crisis, Daniel Kahneman / Amos Tversky, Dava Sobel, Deep Water Horizon, Deng Xiaoping, double entry bookkeeping, Edmond Halley, en.wikipedia.org, Erik Brynjolfsson, experimental subject, Fall of the Berlin Wall, Fermat's Last Theorem, Firefox, food miles, Gerolamo Cardano, global supply chain, Isaac Newton, Jane Jacobs, Jarndyce and Jarndyce, Jarndyce and Jarndyce, John Harrison: Longitude, knowledge worker, loose coupling, Martin Wolf, Menlo Park, Mikhail Gorbachev, mutually assured destruction, Netflix Prize, New Urbanism, Nick Leeson, PageRank, Piper Alpha, profit motive, Richard Florida, Richard Thaler, rolodex, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, South China Sea, special economic zone, spectrum auction, Steve Jobs, supply-chain management, the market place, The Wisdom of Crowds, too big to fail, trade route, Tyler Cowen: Great Stagnation, web application, X Prize
Hachette Digital Little, Brown Book Group 100 Victoria Embankment London, EC4Y 0DY www.hachette.co.uk To Jess, Sophy and Emily, with love Contents Praise for Tim Harford’s Adapt Copyright One Adapting Two Conflict or: How organisations learn Three Creating new ideas that matter or: Variation Four Finding what works for the poor or: Selection Five Climate change or: Changing the rules for success Six Preventing financial meltdowns or: Decoupling Seven The adaptive organisation Eight Adapting and you Acknowledgements Notes Index About the author Adapting ‘The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.’ – Friedrich von Hayek ‘Cross the river by feeling for stones.’ – Attributed to Deng Xiaoping 1 ‘You could easily spend your life making a toaster’ The electric toaster seems a humble thing. It was invented in 1893, roughly halfway between the appearance of the light bulb and that of the aeroplane. This century-old technology is now a household staple. Reliable, efficient toasters are available for less than an hour’s wage. Nevertheless, Thomas Thwaites, a postgraduate design student at the Royal College of Art in London, discovered just what an astonishing achievement the toaster is when he embarked on what he called the ‘Toaster Project’.
., 55, 59, 71 catastrophe experts, 184–6, 191, 194–5, 208 Cave-Brown-Cave, Air Commodore Henry, 81, 83, 85, 88, 114 centralised decision making, 70, 74–5, 226, 227, 228; warfare and, 46–7, 67–8, 69, 71, 76, 78–9 centrally planned economies, 11, 21, 23–6, 68–9, 70 Challenger shuttle disaster, 184 Charles, Prince, 154 Chernobyl disaster, 185 Chile, 3, 69–72, 76, 148 China, 11, 94, 131, 143, 147, 150, 152 Christensen, Clayton, 239–40, 242, 245 Chuquicamata mine (Chile), 3 Churchill, Winston, 41–2, 82, 85 Citigroup, 205131 Clay Mathematics Institute, 110 climate change, 4, 20; carbon dioxide emissions and, 132, 156, 159–65, 166–9, 173, 176, 178–80; ‘carbon footprinting’, 159–66; carbon tax/price idea, 167–9, 178–80, 222; environmental regulations and, 169–74, 176, 177; ‘food miles’ and, 159, 160–1, 168; governments/politics and, 157–8, 163, 169–74, 176, 180; greenhouse effect and, 154–6; individual behaviour and, 158–63, 164, 165–6; innovation prizes and, 109, 179; methane and, 155, 156, 157, 159–60, 173, 179, 180; new technologies and, 94–5; simplicity/complexity paradox, 156, 157–8; Thaler-Sunstein nudge, 177–8; uncertainty and, 156 Coca-Cola, 28, 243 Cochrane, Archie, 123–7, 129, 130, 140, 238, 256 cognitive dissonance, 251–2 Cold War, 6, 41, 62–3 Colombia, 117, 147 complexity theory, 3–4, 13, 16, 49, 72103, 237 computer games, 92–3 computer industry, 11–12, 69, 70–1, 239–42 corporations and companies: disruptive technologies and, 239–44, 245–6; environmental issues and, 157–8, 159, 161, 165, 170–1, 172–3; flattening of hierarchies, 75, 224–5, 226–31; fraud and, 208, 210, 212–13, 214; innovation and, 17, 81–2, 87–9, 90, 93–4, 95–7, 108–11, 112, 114, 224–30, 232–4; limited liability, 244; patents and, 95–7, 110, 111, 114; randomised experiments and, 235–9; skunk works model and, 89, 91, 93, 152, 224, 242–3, 245; strategy and, 16, 18, 27–8, 36, 223, 224–34; see also business world; economics and finance cot-death, 120–1 credit-rating agencies, 188, 189, 190 Criner, Roy, 252 Crosby, Sir James, 211, 214, 250, 256 Cuban Missile Crisis, 41, 63 Cudahy Packing, 9 dairy products, 158, 159–60, 164–5, 166 Darwin, Charles, 86 Dayton Hudson, 243 de Montyon, Baron, 107–8 Deal or No Deal (TV game show), 33–5, 253 decentralisation, 73, 74–8, 222, 224–5, 226–31; Iraq war and, 76–8, 79; trial and error and, 31, 174–5, 232, 234 decision making: big picture thinking, 41, 42, 46, 55; consistent standards and, 28–9; diversity of opinions, 31, 44–5, 46, 48–50, 59–63; doctrine of unanimous advice, 30–1, 47–50, 62–3, 64, 78; grandiosity and, 27–8; idealized hierarchy, 40–1, 42, 46–7, 49–50, 55, 78; learning from mistakes, 31–5, 78, 119, 250–1, 256–9, 261–2; local/on the ground, 73, 74, 75, 76–8, 79, 224–5, 226–31; reporting lines/chain of command, 41, 42, 46, 49–50, 55–6, 58, 59–60, 64, 77–8; supportive team with shared vision, 41, 42, 46, 56, 62–3; unsuccessful, 19, 32, 34–5, 41–2; see also centralised decision making Deepwater Horizon disaster (April 2010), 36, 216–19, 220 Democratic Republic of Congo, 139–40 Deng Xiaoping, 1 Denmark, 148 Department for International Development (DFID), 133, 137–8 development aid: charter cities movement, 150–3; community-driven reconstruction (CDR), 137–40; corruption and, 133–5, 142–3; economic ‘big push’ and, 143–5, 148–9; feedback loops, 141–3; fundamentally unidentified questions (FUQs), 132, 133; governments and, 118, 120, 143, 144, 148–9; identification strategies, 132–5; microfinance, 116, 117–18, 120; Millennium Development Villages, 129–30, 131; product space concept, 145–8; randomised trials and, 127–9, 131, 132, 133, 134, 135–6, 137–40, 141; randomistas, 127–9, 132, 133, 135–40, 258; selection principle and, 117, 140–3, 149; SouthWest project in China, 131; success and failure, 116, 118–20, 130–1; Muhammad Yunus and, 116, 117–18 digital photography, 240–1, 242 Dirks, Ray, 211–12, 213 disk-drive industry, 239–40, 242 Djankov, Simeon, 135 domino-toppling displays, 185, 200–1 Don Basin (Russia), 21–2, 24, 27 dot-com bubble, 10, 92 Dubai, 147, 150 Duflo, Esther, 127, 131, 135, 136 Dyck, Alexander, 210, 213 eBay, 95, 230 econometrics, 132–5 economics and finance: banking system as complex and tightly coupled, 185, 186, 187–90, 200, 201, 207–8, 220; bankruptcy contingency plans, 204; Basel III regulations, 195; bond insurance business, 189–90; bridge bank/rump bank approach, 205–6; capital requirements, 203, 204; centrally planned economiepos=0000032004 >11, 21, 23–6, 68–9, 70; CoCos (contingent convertible bonds), 203–4; complexity and, 3–4; decoupling of financial system, 202, 203–8, 215–16, 220; Dodd-Frank reform act (2010), 195; employees as error/fraud spotters, 210, 211, 212, 213, 215; energy crisis (1970s), 179; evolutionary theory and, 14–17, 18–19, 174–5; improvements since 1960s, 215; inter-bank payments systems, 207; latent errors and, 209–10, 215; ‘LMX spiral’, 183–4, 189; narrow banking approach, 206–7, 215; need for systemic heat maps, 195–6; reinsurance markets, 183; zombie banks, 201–2; see also business world; corporations and companies; financial crisis (from 2007) Edison, Thomas, 236, 238 Eliot, T.S., 260 Elizabeth House (Waterloo), 170–1, 172 Endler, John, 221–2, 223, 234, 239 Engineers Without Borders, 119 Enron, 197–8, 200, 208, 210 environmental issues: biofuels, 84, 173, 176; clean energy, 91, 94, 96, 245–6; corporations/companies and, 159, 161, 165, 170–1, 172–3; renewable energy technology, 84, 91, 96, 130, 168, 169–73, 179, 245; see also climate change Equity Funding Corporation, 212 Ernst and Young, 199 errors and mistakes, types of, 208–10; latent errors, 209–10, 215, 218, 220 European Bank for Reconstruction and Development (EBRD), 188 European Union, 169, 173 Evans, Martin, 100 evolutionary theory, 6, 12–13, 15–17, 174, 258; business world and, 14–17, 174–5, 233–4; Darwin and, 86; digital world and, 13–14, 259–60; economics and, 14–17, 174–5; Endler’s guppy experiments, 221–2, 223, 239; fitness landscapes, 14–15, 259; Leslie Orgel’s law, 174, 175, 176, 177, 178, 180; problem solving and, 14–15, 16; selective breeding and, 175–6 expertise, limits of, 6–8, 16, 17, 19, 66 extinction events, biological, 18–19 Exxon (formerly Jersey Standard), 9, 12, 188, 245 F-22 stealth fighter, 93 Facebook, 90, 91 failure: in business, 8–10, 11–12, 18–19, 36, 148–9, 224, 239–46; chasing of losses, 32–5, 253–4, 256; in complex and tightly coupled systems, 185–90, 191–2, 200, 201, 207–8, 219, 220; corporate extinctions, 18–19; denial and, 32, 34–5, 250–3, 255–6; disruptive technologies, 239–44, 245–6; of established industries, 8–10; government funding and, 148–9; hedonic editing and, 254; honest advice from others and, 256–7, 258, 259; learning from, 31–5, 78, 119, 250–1, 256–9, 261–2; modern computer industry and, 11–12, 239–42; as natural in market system, 10, 11, 12, 244, 245–6; niche markets and, 240–2; normal accident theory, 219; recognition of, 36, 224; reinterpreted as success, 254–5, 256; shifts in competitive landscape, 239–46; ‘Swiss cheese model’ of safety systems, 186–7, 190, 209, 218; types of error and mistake, 208–10; willingness to fail, 249–50, 261–2; of young industries, 10 Fearon, James, 137, Federal Aviation Administration, 210 Federal Reserve Bank, 193–4 feedback, 25, 26, 42, 178, 240; in bureaucratic hierarchies, 30–1; development and, 141–3; dictatorships’ immunity to, 27; Iraq war and, 43–5, 46, 57–8, 59–62; market system and, 141; praise sandwich, 254; public services and, 141; self-employment and, 258; yes-men and, 30 Feith, Douglas, 44, 45 Ferguson, Chris ‘Jesus’, 32 Fermi nuclear reactor (near Detroit), 187 Festinger, Leon, 251 financial crisis (from 2007), 5, 11, 25; AIG and, 189, 193–5, 215–16, 228; bankers’ bonuses, 198; banking system as complex and tightly coupled, 185, 186, 187–90, 200, 201, 207–8, 220; bond insurance business and, 189–90; collateralised debt obligations (CDOs), 190, 209; credit default swaps (CDSs), 187–9, 190, 194; derivatives deals and, 198, 220; faulty information systems and, 193–5; fees paid to administrators, 197; government bail-outs/guarantees, 202, 214, 223; Lehman Brothers and, 193, 194, 196–200, 204–5, 208, 215–16; ‘LMX spiral’ comparisons, 183–4, 189; Repo 105 accounting trick, 199 Financial Services Authority (FSA), 214 Firefox, 221, 230 Fleming, Alexander, 83 Food Preservation prize, 107, 108 Ford Motor Company, 46–7 fossil record, 18 Fourier, Joseph, 155 fraud, corporate, 208, 210, 212–13, 214 Friedel, Robert, 80 Frost, Robert, 260 A Funny Thing Happened on the Way to the Forum (musical), 248 Gage, Phineas, 21, 27 Galapagos Islands, 86, 87 Gale (US developer), 152 Galenson, David, 260 Galileo, 187 Galland, Adolf, 81 Gallipoli campaign (1915), 41–2 Galvin, Major General Jack, 62, 256 game theory, 138, 205 Gates, Bill, 110, 115 Gates, Robert, 59, 64, 78 Gates Foundation, 110 Geithner, Tim, 193–5, 196 GenArts, 13 General Electric, 9, 12, 95 Gilbert, Daniel, 255, 256 GlaxoSmithKline, 95 Glewwe, Paul, 127–8 Global Positioning System (GPS), 113 globalisation, 75 Google, 12, 15, 90, 91, 239, 245, 261; corporate strategy, 36, 231–4; Gmail, 233, 234, 241, 242; peer monitoring at, 229–30 Gore, Al, An Inconvenient Truth, 158 Göring, Hermann, 81 government and politics: climate change and, 157–8, 163, 169–74, 176, 180; development aid and, 118, 120, 143, 144, 148–9; financial crisis (from 2007) and, 193–5, 198–9, 202, 214, 215–16, 223; grandiosity and, 27–8; ideal hierarchies and, 46pos=00002pos=0000022558 >7, 49–50, 62–3, 78; innovation funding, 82, 88, 93, 97, 99–101, 102–3, 104, 113; lack of adaptability rewarded, 20; pilot schemes and, 29, 30; rigorous evaluation methods and, 29* Graham, Loren, 26 Grameen Bank, 116, 117 Greece, 147 Green, Donald, 29* greenhouse effect, 154–6 Gulf War, first, 44, 53, 65, 66, 67, 71; Battle of 73 Easting, 72–3, 74, 79 Gutenberg, Johannes, 10 Haldane, Andrew, 195, 258 Halifax (HBOS subsidiary), 211 Halley, Edmund, 105 Halliburton, 217 Hamel, Gary, 221, 226, 233, 234 Hanna, Rema, 135 Hannah, Leslie, 8–10, 18 Hanseatic League, 150 Harrison, John, 106–7, 108, 110, 111 Harvard University, 98–9, 185 Hastings, Reed, 108 Hausmann, Ricardo, 145 Hayek, Friedrich von, 1, 72, 74–5, 227 HBOS, 211, 213, 214 healthcare sector, US, 213–14 Heckler, Margaret, 90–1 Henry the Lion, 149, 150, 151–2, 153 Hewitt, Adrian, 169 Hidalgo, César, 144–7, 148 Higginson, Peter, 230 Hinkley Point B power station, 192–3, 230–1 Hitachi, 11 Hitler, Adolf, 41, 82, 83, 150 HIV-AIDS, 90–1, 96, 111, 113 Holland, John, 16, 103 Hong Kong, 150 Houston, Dame Fanny, 88–9, 114 Howard Hughes Medical Institute (HHMI), 101–3, 112 Hughes (computer company), 11 Humphreys, Macartan, 136, 137, 138–40 Hurricane aircraft, 82* IBM, 11, 90, 95–6 In Search of Excellence (Peters and Waterman, 1982), 8, 10 India, 135, 136, 143, 147, 169 individuals: adaptation and, 223–4, 248–62; climate change and, 158–63, 164, 165–6; experimentation and, 260–2; trial and error and, 31–5 Indonesia, 133–4, 142, 143 Innocentive, 109 innovation: corporations and, 17, 81–2, 87–9, 90, 93–4, 95–7, 108–11, 112, 114, 224–30, 232–4; costs/funding of, 90–4, 99–105; failure as price worth paying, 101–3, 104, 184, 215, 236; government funding, 82, 88, 93, 97, 99–101, 102–3, 104, 113; grants and, 108; in health field, 90–1, 96; large teams and specialisation, 91–4; market system and, 17, 95–7, 104; new technologies and, 89–90, 91, 94–5; parallel possibilities and, 86–9, 104; prize methodology, 106–11, 112, 113–14, 179, 222–3; randomistas and, 127–9, 132, 133, 135–40, 258; return on investment and, 83–4; skunk works model, 89, 91, 93, 152, 224, 242–3, 245; slowing down of, 90–5, 97; small steps and, 16, 24, 29, 36, 99, 103, 143, 149, 153, 224, 259–60; space tourism, 112–13, 114; specialisation and, 91–2; speculative leaps and, 16, 36, 91, 99–100, 103–4, 259–60; unpredictability and, 84–5 Intel, 11, 90, 95 International Christelijk Steunfonds (ICS), 127–9, 131 International Harvester, 9 International Rescue Committee (IRC), 137–8, 139 internet, 12, 15, 63, 90, 113, 144, 223, 233, 238, 241; randomised experiments and, 235–6, 237; see also Google Iraq war: al Anbar province, 56–7, 58, 64, 76–7; civil war (2006), 39–40; Commander’s Emergency Response Program (CERP), 77; counterinsurgency strategy, 43, 45, 55–6, 58, 60–1, 63–4, 65; decentralisation and, 76–8, 79; feedback and, 43–5, 46, 57–8, 59–62; FM 3–24 (counter-insurgency manual), 63; Forward Operating Bases (FOBs), 51–3, 57, 65; Haditha killings (19 November 2005), 37–9, 40, 42, 43, 52; new technologies and, 71, 72, 74, 78–9, 196; Samarra bombing (22 February 2006), 39; Tal Afar, 51, 52, 53–5, 61, 64, 74, 77, 79; trial and error and, 64–5, 66–7; US turnaround in, 35, 40, 46, 50–1, 53–6, 57–8, 59–61, 63–5, 78; US/allied incompetence and, 38, 39–40, 42–5, 46, 50, 64, 67, 79, 223; Vietnam parallels, 46 J&P Coats, 9 Jacobs, Jane, 87 James, Jonathan, 30 Jamet, Philippe, 192 Janis, Irving, 62 Japan, 11, 143, 176, 204, 208 Jay-Z, 119 Jo-Ann Fabrics, 235 Jobs, Steve, 19 Joel, Billy, 247–8, 249 Johnson, President Lyndon, 46, 47, 49–50, 60, 62, 64, 78 Jones, Benjamin F., 91–2 Joyce, James, 260 JP Morgan, 188 Kahn, Herman, 93 Kahneman, Daniel, 32, 253 Kantorovich, Leonid, 68–9, 76 Kaplan, Fred, 77 Karlan, Dean, 135 Kauffmann, Stuart, 16, 103 Kay, John, 206–7, 208, 215, 259 Keller, Sharon, 252 Kelly, Terri, 230 Kennedy, President John F., 41, 47, 62–3, 84, 113 Kenya, 127–9, 131 Kerry, John, 20 Keynes, John Maynard, 181 Kilcullen, David, 57, 60–1 Klemperer, Paul, 96, 205 Klinger, Bailey, 145 Kotkin, Stephen, 25 Kremer, Michael, 127–8, 129 Krepinevich, Andy, 45 Lanchester, John, 188 leaders: decision making and, 40–2; failure of feedback and, 30–1, 62; grandiosity and, 27–8; ignoring of failure, 36; mistakes by, 41–2, 56, 67; need to believe in, 5–6; new leader as solution, 59 Leamer, Ed, 132* Leeson, Nick, 184–5, 208 Lehman Brothers, 193, 194, 196–200, 204–5, 208, 215–16 Lenin Dam (Dnieper River), 24 Levine, John, 48–9 Levitt, Steven, 132–3 Liberia, 136–9 light bulbs, 162, 177 Lind, James, 122–3 Lindzen, Richard, 156 Livingstone, Ken, 169 Lloyd’s insurance, 183 Lloyds TSB, 214 Local Motors, 90 Lockheed, Skunk Works division, 89, 93, 224, 242 Lomas, Tony, 196, 197–200, 204, 205, 208, 219 Lomborg, Bjorn, 94 longitude problem, 105–7, 108 Lu Hong, 49 Lübeck, 149–50, 151–2, 153 Luftwaffe, 81–2 MacFarland, Colonel Sean, 56–7, 64, 74, 76–7, 78 Mackay, General Andrew, 67–8, 74 Mackey, John, 227, 234 Madoff, Bernard, 208212–13 Magnitogorsk steel mills, 24–5, 26, 153 Malawi, 119 Mallaby, Sebastian, 150, 151 management gurus, 8, 233 Manhattan Project, 82, 84 Manso, Gustavo, 102 Mao Zedong, 11, 41 market system: competition, 10–11, 17, 19, 75, 95, 170, 239–46; ‘disciplined pluralism’, 259; evolutionary theory and, 17; failure in as natural, 10, 11, 12, 244, 245–6; feedback loops, 141; innovation and, 17, 95–7, 104; patents and, 95–7; trial and error, 20; validation and, 257–8 Markopolos, Harry, 212–13 Marmite, 124 Maskelyne, Nevil, 106 mathematics, 18–19, 83, 146, 247; financial crisis (from 2007) and, 209, 213; prizes, 110, 114 Mayer, Marissa, 232, 234 McDonald’s, 15, 28 McDougal, Michael, 252 McGrath, Michael, 252 McMaster, H.R.
The Enigma of Capital: And the Crises of Capitalism by David Harvey
accounting loophole / creative accounting, anti-communist, Asian financial crisis, bank run, banking crisis, Bernie Madoff, Big bang: deregulation of the City of London, Bretton Woods, British Empire, business climate, call centre, capital controls, credit crunch, Credit Default Swap, David Ricardo: comparative advantage, deindustrialization, Deng Xiaoping, deskilling, equal pay for equal work, European colonialism, failed state, financial innovation, Frank Gehry, full employment, global reserve currency, Google Earth, Guggenheim Bilbao, illegal immigration, indoor plumbing, interest rate swap, invention of the steam engine, Jane Jacobs, joint-stock company, Joseph Schumpeter, Just-in-time delivery, land reform, liquidity trap, Long Term Capital Management, market bubble, means of production, megacity, microcredit, moral hazard, mortgage debt, new economy, New Urbanism, Northern Rock, oil shale / tar sands, peak oil, place-making, Ponzi scheme, precariat, reserve currency, Ronald Reagan, sharing economy, Silicon Valley, special drawing rights, special economic zone, statistical arbitrage, structural adjustment programs, the built environment, the market place, The Wealth of Nations by Adam Smith, Thomas L Friedman, Thomas Malthus, Thorstein Veblen, too big to fail, trickle-down economics, urban renewal, urban sprawl, white flight, women in the workforce
Obviously, a monetised economy must already exist (along with market exchange) and money must already be a significant form of social power. Furthermore, wage labour must either already be in existence or at least procurable through either expelling people from the land or attracting them into the labour market by some means. For this to happen requires that social and political barriers to individual capital accumulation must be overcome. When the Chinese leader Deng Xiaoping pronounced that making money and getting rich was good, he let the capitalist genii out of the bottle across the length and breadth of China – with astonishing results. But a mere pronouncement and the loosening of administrative constraints does not guarantee success. Success can be gauged only after the coercive laws of competition have determined that this initiative has been successful in this particular place rather than that.
Index Numbers in italics indicate Figures; those in bold indicate a Table. 11 September 2001 attacks 38, 41–2 subject to perpetual renewal and transformation 128 A Abu Dhabi 222 Académie Française 91 accumulation by dispossession 48–9, 244 acid deposition 75, 187 activity spheres 121–4, 128, 130 deindustrialised working-class area 151 and ‘green revolution’ 185–6 institutional and administrative arrangements 123 ‘mental conceptions of the world’ 123 patterns of relations between 196 production and labour processes 123 relations to nature 123 the reproduction of daily life and of the species 123 slums 152 social relations 123 subject to perpetual renewal and transformation 128 suburbs 150 technologies and organisational forms 123 uneven development between and among them 128–9 Adelphia 100 advertising industry 106 affective bonds 194 Afghanistan: US interventionism 210 Africa civil wars 148 land bought up in 220 neocolonialism 208 population growth 146 agribusiness 50 agriculture collectivisation of 250 diminishing returns in 72 ‘green revolution’ 185–6 ‘high farming’ 82 itinerant labourers 147 subsidies 79 AIG 5 alcoholism 151 Allen, Paul 98 Allende, Salvador 203 Amazonia 161, 188 American Bankers Association 8 American Revolution 61 anarchists 253, 254 anti-capitalist revolutionary movement 228 anti-racism 258 anti-Semitism 62 après moi le déluge 64, 71 Argentina Debt Crisis (2000–2002) 6, 243, 246, 261 Arizona, foreclosure wave in 1 Arrighi, Giovanni: The Long Twentieth Century 35, 204 asbestos 74 Asia Asian Currency Crisis (1997–98) 141, 261 collapse of export markets 141 growth 218 population growth 146 asset stripping 49, 50, 245 asset traders 40 asset values 1, 6, 21, 23, 26, 29, 46, 223, 261 Association of South East Asian Nations (ASEAN) 200 Athabaska tar sands, Canada 83 austerity programmes 246, 251 automobile industry 14, 15, 23, 56, 67, 68, 77, 121, 160–61 Detroit 5, 15, 16, 91, 108, 195, 216 autonomista movement 233, 234, 254 B Baader-Meinhof Gang 254 Bakunin, Michael 225 Balzac, Honoré 156 Bangalore, software development in 195 Bangkok 243 Bank of England 53, 54 massive liquidity injections in stock markets 261 Bank of International Settlements, Basel 51, 55, 200 Bank of New England 261 Bankers Trust 25 banking bail-outs 5, 218 bank shares become almost worthless 5 bankers’ pay and bonuses 12, 56, 218 ‘boutique investment banks’ 12 de-leveraging 30 debt-deposit ratio 30 deposit banks 20 French banks nationalised 198 international networks of finance houses 163 investment banks 2, 19, 20, 28, 219 irresponsible behaviour 10–11 lending 51 liquidity injections by central banks vii, 261 mysterious workings of central banks 54 ‘national bail-out’ 30–31 property market-led Nordic and Japanese bank crises 261 regional European banks 4 regular banks stash away cash 12, 220 rising tide of ‘moral hazard’ in international bank lending practices 19 ‘shadow banking’ system 8, 21, 24 sympathy with ‘Bonnie and Clyde’ bank robbers 56 Baran, Paul and Sweezey, Paul: Monopoly Capital 52, 113 Barings Bank 37, 100, 190 Baucus, Max 220 Bavaria, automotive engineering in 195 Beijing declaration (1995) 258 Berlin: cross-border leasing 14 Bernanke, Ben 236 ‘Big Bang’ (1986) 20, 37 Big Bang unification of global stock, options and currency trading markets 262 billionaire class 29, 110, 223 biodiversity 74, 251 biomass 78 biomedical engineering 98 biopiracy 245, 251 Birmingham 27 Bismarck, Prince Otto von 168 Black, Fischer 100 Blackstone 50 Blair, Tony 255 Blair government 197 blockbusting neighbourhoods 248 Bloomberg, Mayor Michael 20, 98, 174 Bolivarian movement 226, 256 bonuses, Wall Street 2, 12 Borlaug, Norman 186 bourgeoisie 48, 89, 95, 167, 176 ‘boutique investment banks’ 12 Brazil automobile industry 16 capital flight crisis (1999) 261 containerisation 16 an export-dominated economy 6 follows Japanese model 92 landless movement 257 lending to 19 the right to the city movement 257 workers’ party 256 Bretton Woods Agreement (1944) 31, 32, 51, 55, 171 British Academy 235 British empire 14 Brown, Gordon 27, 45 Budd, Alan 15 Buenos Aires 243 Buffett, Warren 173 building booms 173–4 Bush, George W. 5, 42, 45 business associations 195 C California, foreclosure wave in 1, 2 Canada, tightly regulated banks in 141 ‘cap and trade’ markets in pollution rights 221 capital bank 30 centralisation of 95, 110, 113 circulation of 90, 93, 108, 114, 116, 122, 124, 128, 158, 159, 182, 183, 191 cultural 21 devalued 46 embedded in the land 191 expansion of 58, 67, 68 exploitations of 102 export 19, 158 fixed 191, 213 industrial 40–41, 56 insufficient initial money capital 47 investment 93, 203 and labour 56, 88, 169–70 liquid money 20 mobility 59, 63, 64, 161–2, 191, 213 and nature 88 as a process 40 reproduction of 58 scarcity 50 surplus 16, 28, 29, 50–51, 84, 88, 100, 158, 166, 167, 172, 173, 174, 206, 215, 216, 217 capital accumulation 107, 108, 123, 182, 183, 191, 211 and the activity spheres 128 barriers to 12, 16, 47, 65–6, 69–70, 159 compound rate 28, 74, 75, 97, 126, 135, 215 continuity of endless 74 at the core of human evolutionary dynamics 121 dynamics of 188, 197 geographic landscape of 185 geographical dynamics of 67, 143 and governance 201 lagging 130 laws of 113, 154, 160 main centres of 192 market-based 180 Mumbai redevelopment 178 ‘nature’ affected by 122 and population growth 144–7 and social struggles 105 start of 159 capital circulation barriers to 45 continuity of 68 industrial/production capital 40–41 inherently risky 52 interruption in the process 41–2, 50 spatial movement 42 speculative 52, 53 capital controls 198 capital flow continuity 41, 47, 67, 117 defined vi global 20 importance of understanding vi, vii-viii interrupted, slowed down or suspended vi systematic misallocation of 70 taxation of vi wealth creation vi capital gains 112 capital strike 60 capital surplus absorption 31–2, 94, 97, 98, 101, 163 capital-labour relation 77 capitalism and communism 224–5 corporate 1691 ‘creative-destructive’ tendencies in 46 crisis of vi, 40, 42, 117, 130 end of 72 evolution of 117, 118, 120 expansion at a compound rate 45 first contradiction of 77 geographical development of 143 geographical mobility 161 global 36, 110 historical geography of 76, 117, 118, 121, 174, 180, 200, 202, 204 industrial 58, 109, 242 internal contradictions 115 irrationality of 11, 215, 246 market-led 203 positive and negative aspects 120 and poverty 72 relies on the beneficence of nature 71 removal of 260 rise of 135, 192, 194, 204, 228, 248–9, 258 ‘second contradiction of’ 77, 78 social relations in 101 and socialism 224 speculative 160 survival of 46, 57, 66, 86, 107, 112, 113, 116, 130, 144, 229, 246 uneven geographical development of 211, 213 volatile 145 Capitalism, Nature, Socialism journal 77 capitalist creed 103 capitalist development considered over time 121–4 ‘eras’ of 97 capitalist exploitation 104 capitalist logic 205 capitalist reinvestment 110–11 capitalists, types of 40 Carnegie, Andrew 98 Carnegie foundation 44 Carnegie Mellon University, Pittsburgh, Pennsylvania 195 Carson, Rachel: Silent Spring 187 Case Shiller Composite Indices SA 3 Catholic Church 194, 254 cell phones 131, 150, 152 Central American Free Trade Association (CAFTA) 200 centralisation 10, 11, 165, 201 Certificates of Deposit 262 chambers of commerce 195, 203 Channel Tunnel 50 Chiapas, Mexico 207, 226 Chicago Board Options Exchange 262 Chicago Currency Futures Market 262 ‘Chicago School’ 246 Chile, lending to 19 China ‘barefoot doctors’ 137 bilateral trade with Latin America 173 capital accumulation issue 70 cheap retail goods 64 collapse of communism 16 collapse of export markets 141 Cultural Revolution 137 Deng’s announcement 159 falling exports 6 follows Japanese model 92 ‘Great Leap Forward’ 137, 138 growth 35, 59, 137, 144–5, 213, 218, 222 health care 137 huge foreign exchange reserves 141, 206 infant mortality 59 infrastructural investment 222 labour income and household consumption (1980–2005) 14 market closed after communists took power (1949) 108 market forcibly opened 108 and oil market 83 one child per family policy 137, 146 one-party rule 199 opening-up of 58 plundering of wealth from 109, 113 proletarianisation 60 protests in 38 and rare earth metals 188 recession (1997) 172 ‘silk road’ 163 trading networks 163 unemployment 6 unrest in 66 urbanisation 172–3 and US consumerism 109 Chinese Central Bank 4, 173 Chinese Communist Party 180, 200, 256 chlorofluoral carbons (CFCs) 74, 76, 187 chronometer 91, 156 Church, the 249 CIA (Central Intelligence Agency) 169 circular and cumulative causation 196 Citibank 19 City Bank 261 city centres, Disneyfication of 131 City of London 20, 35, 45, 162, 219 class consciousness 232, 242, 244 class inequalities 240–41 class organisation 62 class politics 62 class power 10, 11, 12, 61, 130, 180 class relations, radical reconstitution of 98 class struggle 56, 63, 65, 96, 102, 127, 134, 193, 242, 258 Clausewitz, Carl von 213 Cleveland, foreclosure crisis in 2 Cleveland, foreclosures on housing in 1 Clinton, Bill 11, 12, 17, 44, 45 co-evolution 132, 136, 138, 168, 185, 186, 195, 197, 228, 232 in three cases 149–53 coal reserves 79, 188 coercive laws of competition see under competition Cold War 31, 34, 92 Collateralised Bond Obligations (CBOs) 262 Collateralised Debt Obligations (CDOs) 36, 142, 261, 262 Collateralised Mortgage Obligations (CMOs) 262 colonialism 212 communications, innovations in 42, 93 communism 228, 233, 242, 249 collapse of 16, 58, 63 compared with socialism 224 as a loaded term 259–60 orthodox communists 253 revolutionary 136 traditional institutionalised 259 companies joint stock 49 limited 49 comparative advantage 92 competition 15, 26, 43, 70 between financial centres 20 coercive laws of 43, 71, 90, 95, 158, 159, 161 and expansion of production 113 and falling prices 29, 116 fostering 52 global economic 92, 131 and innovation 90, 91 inter-capitalist 31 inter-state 209, 256 internalised 210 interterritorial 202 spatial 164 and the workforce 61 competitive advantage 109 computerised trading 262 computers 41, 99, 158–9 consortia 50, 220 consumerism 95, 109, 168, 175, 240 consumerist excess 176 credit-fuelled 118 niche 131 suburban 171 containerisation 16 Continental Illinois Bank 261 cooperatives 234, 242 corporate fraud 245 corruption 43, 69 cotton industry 67, 144, 162 credit cards fees vii, 245 rise of the industry 17 credit crunch 140 Credit Default swaps 262 Crédit Immobilièr 54 Crédit Mobilier 54 Crédit Mobilier and Immobilier 168 credit swaps 21 credit system and austerity programmes 246 crisis within 52 and the current crisis 118 and effective demand problem 112 an inadequate configuration of 52 predatory practices 245 role of 115 social and economic power in 115 crises crises of disproportionality 70 crisis of underconsumption 107, 111 east Asia (1997–8) 6, 8, 35, 49, 246 financial crisis of 1997–8 198, 206 financial crisis of 2008 34, 108, 114, 115 general 45–6 inevitable 71 language of crisis 27 legitimation 217 necessary 71 property market 8 role of 246–7 savings and loan crisis (US, 1984–92) 8 short sharp 8, 10 south-east Asia (1997–8) 6, 8, 35, 49, 246 cross-border leasing 142–3 cultural choice 238 ‘cultural industries’ 21 cultural preferences 73–4 Cultural Revolution 137 currency currency swaps 262 futures market 24, 32 global 32–3, 34 options markets on 262 customs barriers 42, 43 cyberspace 190 D Darwin, Charles 120 DDT 74, 187 de-leveraging 30 debt-financing 17, 131, 141, 169 decentralisation 165, 201 decolonisation 31, 208, 212 deficit financing 35, 111 deforestation 74, 143 deindustrialisation 33, 43, 88, 131, 150, 157, 243 Deleuze, Gilles 128 demand consumer 107, 109 effective 107, 110–14, 116, 118, 221, 222 lack of 47 worker 108 Democratic Party (US) 11 Deng Xiaoping 159 deregulation 11, 16, 54, 131 derivatives 8 currency 21 heavy losses in (US) 261 derivatives markets creation of 29, 85 unregulated 99, 100, 219 Descartes, René 156 desertification 74 Detroit auto industry 5, 15, 16, 91, 108, 195, 216 foreclosures on housing in 1 Deutsches Bank 20 devaluation 32, 47, 116 of bank capital 30 of prior investments 93 developing countries: transformation of daily lives 94–5 Developing Countries Debt Crisis 19, 261 development path building alliances 230 common objectives 230–31 development not the same as growth 229–30 impacts and feedbacks from other spaces in the global economy 230 Diamond, Jared: Guns, Germs and Steel 132–3, 154 diasporas 147, 155, 163 Dickens, Charles: Bleak House 90 disease 75, 85 dispossession anti-communist insurgent movements against 250–51 of arbitrary feudal institutions 249 of the capital class 260 China 179–80 first category 242–4 India 178–9, 180 movements against 247–52 second category 242, 244–5 Seoul 179 types of 247 under socialism and communism 250 Domar, Evsey 71 Dongguan, China 36 dot-com bubble 29, 261 Dow 35,000 prediction 21 drug trade 45, 49 Dubai: over-investment 10 Dubai World 174, 222 Durban conference on anti-racism (2009) 258 E ‘earth days’ 72, 171 east Asia crash of 1997–8 6, 8, 35, 49, 246 labour reserves 64 movement of production to 43 proletarianisation 62 state-centric economies 226 wage rates 62 eastern European countries 37 eBay 190 economic crisis (1848) 167 economists, and the current financial crisis 235–6 ecosystems 74, 75, 76 Ecuador, and remittances 38 education 59, 63, 127, 128, 221, 224, 257 electronics industry 68 Elizabeth II, Queen vi-vii, 235, 236, 238–9 employment casual part-time low-paid female 150 chronic job insecurity 93 culture of the workplace 104 deskilling 93 reskilling 93 services 149 Engels, Friedrich 89, 98, 115, 157, 237 The Housing Question 176–7, 178 Enron 8, 24, 52, 53, 100, 261 entertainment industries 41 environment: modified by human action 84–5 environmental movement 78 environmental sciences 186–7 equipment 58, 66–7 equity futures 262 equity index swaps 262 equity values 262 ethanol plants 80 ethnic cleansings 247 ethnicity issues 104 Eurodollars 262 Europe negative population growth in western Europe 146 reconstruction of economy after Second World War 202 rsouevolutions of 1848 243 European Union 200, 226 eastern European countries 37 elections (June 2009) 143 unemployment 140 evolution punctuated equilibrium theory of natural evolution 130 social 133 theory of 120, 129 exchange rates 24, 32, 198 exports, falling 141 external economies 162 F Factory Act (1848) 127 factory inspectors 127 ‘failed states’ 69 Fannie Mae (US government-chartered mortgage institution) 4, 17, 173, 223 fascism 169, 203, 233 Federal Deposit Insurance Corporation (FDIC) 8 rescue of Continental Illinois Bank 261 Federal Reserve System (the Fed) 2, 17, 54, 116, 219, 236, 248 and asset values 6 cuts interest rates 5, 261 massive liquidity injections in stock markets 261 rescue of Continental Illinois Bank 261 feminists, and colonisation of urban neighbourhoods 248 fertilisers 186 feudalism 135, 138, 228 finance capitalists 40 financial institutions awash with credit 17 bankruptcies 261 control of supply and demand for housing 17 nationalisations 261 financial services 99 Financial Times 12 financialisation 30, 35, 98, 245 Finland: Nordic cris (1992) 8 Flint strike, Michigan (1936–7) 243 Florida, foreclosure wave in 1, 2 Forbes magazine 29, 223 Ford, Henry 64, 98, 160, 161, 188, 189 Ford foundation 44, 186 Fordism 136 Fordlandia 188, 189 foreclosed businesses 245 foreclosed properties 220 fossil fuels 78 Foucault, Michel 134 Fourierists 168 France acceptance of state interventions 200 financial crisis (1868) 168 French banks nationalised 198 immigration 14 Paris Commune 168 pro-natal policies 59 strikes in 38 train network 28 Franco-Prussian War (1870) 168 fraud 43, 49 Freddie Mac (US government-chartered mortgage institution) 4, 17, 173, 223 free trade 10, 33, 90, 131 agreements 42 French Communist Party 52 French Revolution 61 Friedman, Thomas L.: The World is Flat 132 futures, energy 24 futures markets 21 Certificates of Deposit 262 currency 24 Eurodollars 262 Treasury instruments 262 G G7/G8/G20 51, 200 Galileo Galilei 89 Gates, Bill 98, 173, 221 Gates foundation 44 gays, and colonisation of urban neighbourhoods 247, 248 GDP growth (1950–2030) 27 Gehry, Frank 203 Geithner, Tim 11 gender issues 104, 151 General Motors 5 General Motors Acceptance Corporation 23 genetic engineering 84, 98 genetic modification 186 genetically modified organisms (GMOs) 186 gentrification 131, 256, 257 geographical determinism 210 geopolitics 209, 210, 213, 256 Germany acceptance of state interventions 199–200 cross-border leasing 142–3 an export-dominated economy 6 falling exports 141 invasion of US auto market 15 Nazi expansionism 209 neoliberal orthodoxies 141 Turkish immigrants 14 Weimar inflation 141 Glass-Steagall act (1933) 20 Global Crossing 100 global warming 73, 77, 121, 122, 187 globalisation 157 Glyn, Andrew et al: ‘British Capitalism, Workers and the Profits Squeeze’ 65 Goethe, Johann Wolfgang von 156 gold reserves 108, 112, 116 Goldman Sachs 5, 11, 20, 163, 173, 219 Google Earth 156 Gould, Stephen Jay 98, 130 governance 151, 197, 198, 199, 201, 208, 220 governmentality 134 GPS systems 156 Gramsci, Antonio 257 Grandin, Greg: Fordlandia 188, 189 grassroots organisations (GROS) 254 Great Depression (1920s) 46, 170 ‘Great Leap Forward’ 137, 138, 250 ‘Great Society’ anti-poverty programmes 32 Greater London Council 197 Greece sovereign debt 222 student unrest in 38 ‘green communes’ 130 Green Party (Germany) 256 ‘green revolution’ 185–6 Greenspan, Alan 44 Greider, William: Secrets of the Temple 54 growth balanced 71 compound 27, 28, 48, 50, 54, 70, 75, 78, 86 economic 70–71, 83, 138 negative 6 stop in 45 Guggenheim Museu, Bilbao 203 Gulf States collapse of oil-revenue based building boom 38 oil production 6 surplus petrodollars 19, 28 Gulf wars 210 gun trade 44 H habitat loss 74, 251 Haiti, and remittances 38 Hanseatic League 163 Harrison, John 91 Harrod, Roy 70–71 Harvey, David: A Brief History of Neoliberalism 130 Harvey, William vii Haushofer, Karl 209 Haussmann, Baron 49, 167–8, 169, 171, 176 Hawken, Paul: Blessed Unrest 133 Hayek, Friedrich 233 health care 28–9, 59, 63, 220, 221, 224 reneging on obligations 49 Health Care Bill 220 hedge funds 8, 21, 49, 261 managers 44 hedging 24, 36 Hegel, Georg Wilhelm Friedrich 133 hegemony 35–6, 212, 213, 216 Heidegger, Martin 234 Helú, Carlos Slim 29 heterogeneity 214 Hitler, Adolf 141 HIV/AIDS pandemic 1 Holloway, John: Change the World without Taking Power 133 homogeneity 214 Hong Kong excessive urban development 8 rise of (1970s) 35 sweatshops 16 horizontal networking 254 household debt 17 housing 146–7, 149, 150, 221, 224 asset value crisis 1, 174 foreclosure crises 1–2, 166 mortgage finance 170 values 1–2 HSBC 20, 163 Hubbert, M.
airport security, British Empire, call centre, clean water, corporate social responsibility, Deng Xiaoping, Donald Trump, fear of failure, glass ceiling, high net worth, income per capita, Jeff Bezos, Johann Wolfgang von Goethe, microcredit, Own Your Own Home, random walk, rolodex, shareholder value, Silicon Valley, Skype, Steve Ballmer
Using the Microsoft stock price as a proxy, Bill’s net worth on that day was about $60 billion, give or take a mere billion. In contrast, the average annual GNP per Chinese citizen was $725. Bill’s wealth was thus the equivalent to the annual earnings of 83 million Chinese citizens. By March of 1999, nobody really believed the old orthodoxy that the country was purely Communist. A saying popularized by past leader Deng Xiaoping was “To get rich is glorious.” As if to prove it, we had a backlog of requests for meetings with Bill so long that a month of his time could not have met the demand. The level of enthusiasm the Chinese had for the world’s greatest capitalist spoke volumes. In one generation, the Chinese had gone from viewing a person like Bill as a “running dog of capitalism” to elbowing each other out of the way to get their photo taken with him.
Cambodia bias against women in educational infrastructure destroyed in education valued in English spoken in Khmer Rouge genocide in noodle soup stands in poverty of strong work ethic of Tong Slek Secondary School of young entrepreneurs in see also Room to Read Cambodia CARE Carnegie, Andrew Carter, Jimmy Casio programmable calculator Centers for Disease Control Central Intelligence Agency (CIA) challenge grants as form of fund-raising for Room to Read Nepal for Room to Read Vietnam Chan, Dean changing the world, advice on charities: accountability for results lacked by of Bill and Melinda Gates of billionaires early-stage high overhead of of Microsoft China pity as marketing tool of program delivery as focus of tax-deductible status of thinking big by traditional aid model of Chicago fund-raising chapter fund-raising events of Chicago Tribune children, fund-raising by China business meeting entourages in capitalist ventures embraced by Communist Party of computers for GNP of good political connections in photo ops as incentive in poverty in proverb of public school system of television set ownership in see also Gates, Bill, China visited by; Microsoft China China Central Television (CCTV) Chintha (Sri Lankan woman) Cisco Clarissa (JW’s Microsoft colleague) Clinton, Bill CNN JW’s live interviews on CNN Headline News coinvestment model see also challenge grants Coles Myer Ltd. (CML) Colorado Commodore PET computers Computer Room program of Room to Read Cambodia of Room to Read Nepal of Room to Read Vietnam computers for china memory in programming of shortcut keys of Confucius Congressional Committee on Human Rights Continental Bank Dalai Lama data-driven approach Deng Xiaoping Devkota, Kripali Digantar Dim Boramy disasters, human responses to Donohoe, Robin Richards Dostoyevksy, Fyodor dot-com bubble Draper, William H., III Draper Richards Foundation (DRF) drinking water, safe Edelman Edison, Thomas 85 Broads Eisenhower, Mary employee stock ownership plans (ESOP) Erensel, Brent Flynn, John Foege, William France Francis de Sales, Saint Friedman, Thomas fund-raising annual amount of cash flow and challenge grants as form of by children core principles in DRF pledge in enhanced airport security and Global Catalyst Foundation grant in global travelers and maintaining positive reputation in Microsoft grant in multiple donor sources as goal of optimistic emphasis in passionate attitude in post-9/11 rejections in for Room to Grow for Room to Read Sri Lanka for Room to Read Vietnam salesmanship in Sponsored Silence as technique of tax-deductible charity status needed for tenacious employees needed for thinking big in Tibet Fund grant in virtuous circle in volunteer fund-raisers in see also “Adopt a Project” model fund-raising events as “awareness raisers” in Boston in Chicago in Hong Kong in London at Mount Everest in New York City post-9/11 for Room to Grow for Room to Read Cambodia slide shows at in Vancouver fund-raising network city chapters of competitive spirit in international for large-scale philanthropy motivation for involvement in Nepali-Americans in planning of super-empowered individuals in Ganju, Erin Keown, (chief operating officer) Gates, Bill “batboy” of charities of clothing of as data-driven haircut of net worth of personality of Gates, Bill, China visited by Chinese youth and clothing sent ahead in Hong Kong border crossing of Microsoft Venus launch in photo ops in preparations for press conference on schedule of Shui Junyi television interview of Gates, Melinda French JW’s job interview with Gates Foundation Gehrig, Lou girls, long-term scholarships for, see Room to Grow girls’ scholarship program Global Catalyst Foundation Goethe, Johann Wolfgang von Goldman Sachs 85 Broads of Grameen Bank guinea worm, eradication of Habitat for Humanity Haman, Anja Hanson, Janet Harris, Ed Hillary, Sir Edmund Himalayan Primary School Himalayan Trust Hong Kong Hong Kong fund-raising chapter fund-raising event of Hue IBM illiteracy immigrants, U.S.
Rush Hour by Iain Gately
Albert Einstein, autonomous vehicles, Beeching cuts, blue-collar work, British Empire, business intelligence, business process, business process outsourcing, call centre, car-free, Clapham omnibus, cognitive dissonance, congestion charging, connected car, DARPA: Urban Challenge, Dean Kamen, decarbonisation, Deng Xiaoping, Detroit bankruptcy, don't be evil, Elon Musk, extreme commuting, Google bus, Henri Poincaré, Hyperloop, Jeff Bezos, low skilled workers, postnationalism / post nation state, Ralph Waldo Emerson, remote working, self-driving car, Silicon Valley, stakhanovite, Steve Jobs, telepresence, Tesla Model S, urban planning, éminence grise
The bicycle they all wanted, which cost two months’ salary and had a three-year waiting list, was the Flying Pigeon, a single-gear, sit-up-and-beg affair with giant wheels and primitive brakes,*6 and which, like the Model T Ford, came only in black. At least 500 million Flying Pigeons have been built since the brand was born in 1950, making it the most popular wheeled vehicle in history. It is one of the few artefacts of the Cultural Revolution that evokes nostalgia in China. When Deng Xiaoping became ‘Paramount Leader’ in 1978, he defined prosperity as ‘a pigeon in every household’. Brides-to-be took him at his word, and often refused to accept their suitors until they could afford a Pigeon. When China started to admit Western tourists in the early 1980s, rush hour in Beijing (which then consisted of several million Flying Pigeons and only a handful of vehicles equipped with combustion engines) was accounted one of its wonders.
Index a Achen Motor Company 315 Acton 43, 46 Acts of Parliament 17 Acworth, Sir William Mitchell 73 aeroplanes 307 America cars 90–101 commuting 224–5 railways 66–80 American Automobile Association (AAA) 198, 209–10 American Bicycle Co. 91 American Motors 120 American School Bus Council (ASBC) 236 Andrade, Claudio 279, 280 Apple 295–6 Australia 232 autobahn 103, 109, 151, 166 b Bagehot, Walter 59 Balfour, A.J. 65 Barter, David Obsessive Compulsive Cycling Disorder 168 Bazalgette, Joseph 60 Beeching, Dr Richard cuts 137, 146, 158, 313, 328 Beerbohm, Max 58 Beijing 160, 161 Metro 160, 162 Benz, Karl 90 Bern, Switzerland 86, 87 Besant, Sir Walter 57 Best Friend of Charleston crash 69 Betjeman, John 109, 135, 272–3 bicycle Boris bikes 167 Brompton 167 commuting in Britain 101, 138–9, 166–8, 216–17 commuting in Europe 166, 222 Flying Pigeon 161–2 penny farthing 101 Raleigh 139 Rover 101–2 Birmingham HS2 329 number 8 bus 141 Birt, William 61 Bishop’s Waltham 313, 327 Blake, William Marriage of Heaven and Hell 104 Booth, Henry 27 Boris bikes 167 Boston 69, 97 Boston and Worcester Line 72 Botley station, Hampshire 1, 2, 3–5, 7, 313, 334 Bowser, Sylvanus Freelove 95 Brazil 279 British Telecom 291–3 Bromley 23, 46 Brompton bike 167 Brunel, Isambard Kingdom 331 Buchanan, Professor Sir Colin Traffic in Towns 145–6 buses 48, 140–41, 235–6, 275–6 c California High Speed Rail (CHSR) 330, 331 Callan Automobile Law 95 carriages (railway) 29–30, 54, 55 in America 71–3 in France 83–4 WCs 33, 72, 226–7 women-only 188–9 ‘workmen’s trains’ 33–4, 60, 61, 83 cars 89–92, 195 commuting in America 101, 113, 116–17 in Britain 107, 142–4, 249–52 in communist countries 151–2 in Italy 149–50 congestion 192–5 congestion charge 312 driverless 316–17, 320–27 ownership 97–8, 100, 103, 125 radio 119, 255–8 SUVs 204–8 Central Railroad of Long Island 76 C5 (electric tricycle) 309–11 Chaplin, William James 15 Cheap Trains Act 61 Chesterton, G.K. 57, 105, 109 Chicago Automobile Club 96–7, 256 Great Fire of 1871 79 Oak Park suburb 79–80 Park Forest suburb 113–15 China 160–62, 314–15 Chrysler 119, 160 Churchill, Winston 308–9 City and South London Railway 54–5, 62 Clean Air Act 286–7 Cobbett, William 334 Collins, Wilkie Basil 52 commuting (car) see cars commuting (cycling) see cycling commuting (rail) comic representation of 137 commuter etiquette 72–3, 82, 249 extreme commuting 233–4 in America 66–80 in France 81–7 in Germany 80, 86–7 in Japan 177–84 in the 1950s 136 in Victorian times 33–9, 42 food in England 36–7, 247 in France 84–5 origin of the term 67 overcrowding 171–83 coronations 140 County Durham 14 Coventry 102 Crawshay, William 35 Croton Falls 66 Croydon 56 Cultural Revolution (China) 161 Cunarders 140 cycling commuting in Britain 101, 138–9, 166–8, 216–17 commuting in Europe 166, 222 Cyclists’ Touring Club 102–3 d Dagenham 107 Dahl, Roald 129, 135–6 Daimler, Gottlieb 90 Dalai Lama 210 Darwin, Charles 13, 32 Daudet, Alphonse 83–4 Daumier, Honoré The Third-Class Carriage 83 The New Paris 86 Landscapists at Work 86 Defense Advance Research Projects Agency (DARPA) 317, 318 Delhi 211–13 Deng Xiaoping 161, 162 Denmark 222, 288 Detroit 110, 121, 123–4 ‘Detroit by the Volga’ 153 Dickens, Charles 12, 25, 50 food 36–7, 84–5, 247 Mugby Junction 84–5 Great Expectations 12 Our Mutual Friend 50 train travel in America 70, 71, 74 Diggins, John 3 Docklands Light Railway (DLR) 279 Downing, Andrew Jackson 66 driverless cars 316–17, 320–27 driving schools 215–16 driving tests New York State 94–5 UK 216 Duluth, Minnesota 79–80 e Ealing, London 38, 40, 42, 46, 56 Eden, Emily 58 Edinburgh 13, 14, 16, 329 Edmondson, Brad 314 Einstein, Albert 87 Eliot, William G.
affirmative action, Albert Einstein, banking crisis, Big bang: deregulation of the City of London, bilateral investment treaty, borderless world, Bretton Woods, British Empire, Brownian motion, call centre, capital controls, central bank independence, colonial rule, Corn Laws, corporate governance, David Ricardo: comparative advantage, Deng Xiaoping, Doha Development Round, en.wikipedia.org, falling living standards, Fellow of the Royal Society, financial deregulation, fixed income, Francis Fukuyama: the end of history, income inequality, income per capita, industrial robot, Isaac Newton, joint-stock company, Joseph Schumpeter, Kenneth Rogoff, labour mobility, land reform, low skilled workers, market bubble, market fundamentalism, Martin Wolf, means of production, moral hazard, offshore financial centre, oil shock, price stability, principal–agent problem, Ronald Reagan, South Sea Bubble, structural adjustment programs, The Wealth of Nations by Adam Smith, trade liberalization, transfer pricing, urban sprawl, World Values Survey
Of course, SOEs are often in industries where there is a natural monopoly, where increasing competition within the industry is either impossible or would be socially unproductive. But, even in these sectors, some degree of competition may be injected by boosting some ‘neighbouring’ industries (airlines vs railways).27 In conclusion, there is no hard and fast rule as to what makes a successful state-owned enterprise. Therefore, when it comes to SOE management, we need a pragmatic attitude in the spirit of the famous remark by China’s former leader Deng Xiao-ping: ‘it does not matter whether the cat is white or black as long as it catches mice.’ i There is no agreed definition of what is a controlling stake in an enterprise’s shares. A holding of as little as 15% could give the shareholder effective control over an enterprise, depending on the holding structure. But, typically, a holding of around 30% is considered a controlling stake. ii The full argument is somewhat technical, but the gist of it is as follows.
There lies the explanation for the sight of the professional hand-raisers for the geriatric members of the Nationalist Party Politburo that amused the rest of the world so much in the 1980s. Taiwan’s second president, Chiang Ching-Kuo, who succeeded his father, Chiang Kai-Shek, as the leader of the party and the head of the state, was a communist as a young man and studied in Moscow with future leaders of the Chinese Communist Party, including Deng Xiao-ping. He met his Russian wife when he was studying in Moscow. 8 Korea also had its share of Marxist influence. General Park Chung-Hee, who masterminded the Korean economic miracle, was a communist in his young days, not least because of the influence of his brother, who was an influential local communist leader in their native province. In 1949, he was sentenced to death for his involvement in a communist mutiny in the South Korean army, but earned an amnesty by publicly denouncing communism.
In Defense of Global Capitalism by Johan Norberg
Asian financial crisis, capital controls, clean water, correlation does not imply causation, Deng Xiaoping, Edward Glaeser, Gini coefficient, half of the world's population has never made a phone call, Hernando de Soto, illegal immigration, income inequality, informal economy, Joseph Schumpeter, Kenneth Rogoff, land reform, Lao Tzu, manufacturing employment, market fundamentalism, Mexican peso crisis / tequila crisis, Naomi Klein, new economy, open economy, profit motive, race to the bottom, rising living standards, school vouchers, Silicon Valley, Simon Kuznets, structural adjustment programs, The Wealth of Nations by Adam Smith, Tobin tax, trade liberalization, trade route, transaction costs, trickle-down economics, union organizing
One very positive thing is that the average marriage age has increased.’’16 46 China About half of the world’s poor live in the two most populous countries, India and China, hence the great importance of what happens in those countries. Both their economies have been extensively liberalized in the past 20 years. China’s communist dictatorship realized at the end of the 1970s that collectivization was impeding development. Stifling centralized control—such as the requirement that farmers deliver their own produce—impeded land renewal and lowered crop yields. Deng Xiaoping, China’s ruler, wanted to keep faith with the distributive ideas of socialism. Yet he realized that he would have to distribute either poverty or prosperity, and that the latter could only be achieved by giving people more freedom. And so in December 1978, two years after the death of Chairman Mao, Deng embarked on a program of liberalization. Rural families that had previously been forced into collective farming were now entitled to set aside part of their produce for sale at market prices, a system that became increasingly liberal as time went on.
See European Union, Common Agricultural Policy Capital Access Index, 247–48 Capital controls, 249–52, 266 Capital markets, 242–48 Capitalism, 17 democratization and, 268–76 and freedom, 16-17, 242-48 medical advances and, 186–89 myopic focus on imperfections, 98 negative example, 98 ‘‘neo-liberal’’ market and policy, 14–15 philanthropic, 189 progress and, 98 reducing the world’s problems, 61 unequal distribution in developing countries, 152–55 uneven distribution of wealth due to uneven distribution of, 154 what it is and is not, 16–18 Carbon dioxide emissions, 235 Carville, James, 240 Caste system, India, 53 Castro, Fidel, 287 Catholicism, democracy and, 40 Centralization, 41–42, 287 Chaebols, Asian crisis and, 260 Change in economic activity, efficiency-related, 140–44 Cheap imports, avoiding, 120–22 Child labor, 193, 198–202 Children AIDS orphans, 60 education, 45–46 309 Chile dependency theory, 163 development and economic policy, 168 economic crisis, 250–51 liberalization and poverty reduction, 132 China, 47–50 absolute poverty, 26, 48 agriculture investment, 47 air pollution control, 228 Berg and Karlsson in, 21–22, 290–91 democracy in, 270 equality/inequality, 133 foreign trade, 48 growth and income differences, 86 labor-intensive industries, 172 opening markets, 72 starvation, 34 telephony example, 234–35 women, 43 Chinese Exclusion Act of 1882, 146 Clean Air Acts, California, 226–28 Clinton, Bill, 146, 193, 223 Cold War, 38 Colombia, equality in, 86 Colonialism, wealth and poverty and, 152 Common Agricultural Policy (CAP) See European Union Communication, capital controls, 252 Communism, China, 49 Comparative advantage, 117–18, 170 Competition and competitive markets absence or lack of, 165, 167 with developing countries, 205 free, 16 ‘‘infant industry tariffs’’ and, 173–74 multinational corporations, 213–14 unfair competition, 125–26 Computer chips, sand/silicon and, 233 Computers, China, 280 Concorde, failure of, 174 Confidence in an economy, 264, 270 Asian crisis and, 261–62 Congo, 99 Consumers efficiency and gains for, 141, 142 globalization consisting of everyday actions of, 12–14 multinational corporations and, 213 Consumption, environment and, 228–37 Contraception/birth control, 46 Copper, China’s telephony example, 234–35 Corruption Africa, 105–6, 107 controls and, 252 economic freedom and, 70–71 world government possibilities, 257 Costa Rica, 132-33 Crimes against humanity, 287 Criminal syndicates, immigration schemes, 147 Cuba equality in, 86 310 human rights violations, 40 Cultural choice, 278–85 Cultural identity, 283 Cultural imports, traditions considered ‘‘authentic,’’ 283 Cultural innovation, 150 Culture, 17 change and renewal in, 282–84 cultural encounters of globalism, 281–85 freedoms and voluntary relations in, 17, 283–84 global homogeneity, 280–82 isolation and preservation, 283 as a process, 283 Currency exchange, Tobin tax and, 253–58 Currency overvaluation, Asian crisis and, 261 Currency speculation, 254–57, 261, 266 Daewoo, 223 de Soto, Hernando, 91–95 ‘‘Dead capital,’’ 93 Debt developing countries, 177–85 freedom and, 270–72 national debts, 271 short-term, 260–61 Debt cancellation, 181–84 Decentralization, 270 Deforestation, 232 Deliberate choice, 285 Demand, worldwide, 281 Democracy, 17, 289 demands that parallel debt cancellation, 183 demands that parallel receipt of aid, 185 multinational corporations’ presence in oppressive countries, 222 reducing the world’s problems, 61 representative democracy as preferable form of government, 8 tasting and thus demanding, 286, 291 Democratization, 38–42, 268–76 East Asian countries, 100 Democratizing the World Bank and International Monetary Fund, 177 Deng Xiaoping, 47 Dependency theory, 163–64 Derivatives, 254–55 Desalination, 35, 233 Developing countries abolition of tariffs and quotas, 176 ‘‘catch-22’’ of trade conditions, 194–96, 197 deaths from polluted indoor air, 229 debt, 177–85 debt cancellation, 183–84 direct international investments in, 154–55 East Asia’s distinguishing features and, 100–101 elites and, 94 export dollars surpassing development assistance, 162 foreign direct investment in, 256 311 free trade, 169–72 growth and openness, 129–32 growth in open poor economies versus open affluent ones, 133–35 growth rates, 129, 130 hunger, 31–35 IMF recipients’ unwillingness to follow advice, 181 investment in, 154–55, 244–45, 256 labor organizations and transfer of technology to, 196 Latin America, 163–68 life expectancy of women, 46 loss sustained by protectionism, 156–62 manufactured goods exports, 170–72 medicine and, 186–89 neo-colonist policymaking controls, 193 potable drinking water, 34–35 property rights, 90–98, 92 repeat debt cancellations, 184 respect for patent and IP rights, 196–97 shortcuts to development, 278–80 stunting growth for sake of environmental protection, 228–29 tariffs, 173–76 trade with other developing countries, 175 unequal distribution of capitalism, 152–55 vaccinations for children in, 189 wage increases, 204, 205f, 218 wages paid by multinational corporations in, 216–18 See also Industrialized countries; specific countries Development.
3D printing, Airbnb, American energy revolution, autonomous vehicles, Bakken shale, barriers to entry, Bernie Sanders, BRICs, call centre, Capital in the Twenty-First Century by Thomas Piketty, Clayton Christensen, cloud computing, collective bargaining, computer age, dark matter, David Ricardo: comparative advantage, deindustrialization, dematerialisation, Deng Xiaoping, deskilling, Dissolution of the Soviet Union, Donald Trump, Downton Abbey, Edward Glaeser, Erik Brynjolfsson, eurozone crisis, everywhere but in the productivity statistics, falling living standards, first square of the chessboard, first square of the chessboard / second half of the chessboard, Ford paid five dollars a day, Francis Fukuyama: the end of history, future of work, gig economy, global supply chain, global value chain, hydraulic fracturing, income inequality, indoor plumbing, industrial robot, interchangeable parts, Internet of things, inventory management, invisible hand, Jacquard loom, James Watt: steam engine, Jeff Bezos, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph-Marie Jacquard, knowledge economy, low skilled workers, lump of labour, Lyft, manufacturing employment, means of production, new economy, performance metric, pets.com, price mechanism, quantitative easing, Ray Kurzweil, rent-seeking, reshoring, rising living standards, Robert Gordon, Ronald Coase, savings glut, Second Machine Age, secular stagnation, self-driving car, sharing economy, Silicon Valley, single-payer health, software is eating the world, supply-chain management, supply-chain management software, TaskRabbit, The Nature of the Firm, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, trade liberalization, transaction costs, Tyler Cowen: Great Stagnation, Uber and Lyft, Uber for X, very high income, working-age population
We are then confronted by a follow-up question: precisely how did China manage it? One possibility is that, like Japan and South Korea before it, China’s institutions evolved in a way that encouraged the accumulation of capital and technological know-how. This is a difficult thing to assess: decades of communist rule have warped the social capital across Chinese civic society. It is clear, however, that in the late 1970s Deng Xiaoping’s Communist Party began experimenting with tolerance of market activity and openness to foreign trade. Property rights in China have never been secure, nor has the market been the primary force allocating capital. But property rights have been secure enough to satisfy lots of multinational firms, who have been willing to contract with Chinese companies or invest directly in the Chinese economy.
Acemoglu, Daron ageing populations agency, concept of Airbnb Amazon American Medical Association (AMA) anarchism Andreessen, Marc Anglo-Saxon economies Apple the iPhone the iPod artisanal goods and services Atkinson, Anthony Atlanta, Georgia austerity policies automation in car plants fully autonomous trucks of ‘green jobs’ during industrial revolution installation work as resistant to low-pay as check on of menial/routine work self-driving cars and technological deskilling automobiles assembly-line techniques automated car plants and dematerialization early days of car industry fully autonomous trucks self-driving cars baseball Baumol, William Belgium Bernanke, Ben Bezos, Jeff black plague (late Middle Ages) Boston, Massachusetts Brazil BRIC era Bridgewater Associates Britain deindustrialization education in extensions of franchise in financial crisis (2008) Great Exhibition (London 1851) housing wealth in and industrial revolution Labour Party in liberalization in political fractionalization in real wages in social capital in surpassed by US as leading nation wage subsidies in Brontë, Charlotte Brynjolfsson, Erik bubbles, asset-price Buffalo Bill (William Cody) BuzzFeed Cairncross, Frances, The Death of Distance (1997) capital ‘deepening’ infrastructure investment investment in developing world career, concept of cars see automobiles Catalan nationalism Central African Republic central banks Chait, Jonathan Charlotte chemistry, industrial Chicago meat packers in nineteenth-century expansion of World’s Columbia Exposition (1893) China Deng Xiaoping’s reforms economic slow-down in era of rapid growth foreign-exchange reserves ‘green jobs’ in illiberal institutions in inequality in iPod assembly in technological transformation in wage levels in Chorus (content-management system) Christensen, Clayton Cisco cities artisanal goods and services building-supply restrictions growth of and housing costs and industrial revolution and information membership battles in rich/skilled and social capital clerical work climate change Clinton, Hillary Coase, Ronald Columbia University, School of Mines communications technology communism communities of affinity computing app-based companies capability thresholds cloud services cycles of experimentation desktop market disk-drive industry ‘enterprise software’ products exponential progress narrative as general purpose technology hardware and software infrastructure history of ‘Moore’s Law’ and productivity switches transistors vacuum tubes see also digital revolution; software construction industry regulations on Corbyn, Jeremy Corliss steam engine corporate power Cowen, Tyler craft producers Craigslist creative destruction the Crystal Palace, London Dalio, Ray Dallas, Texas debt deindustrialization demand, chronically weak dematerialization Detroit developing economies and capital investment and digital revolution era of rapid growth and industrialization pockets of wealth in and ‘reshoring’ phenomenon and sharp slowdown and social capital see also emerging economies digital revolution and agency and company cultures and developing economies and distance distribution of benefits of dotcom tech boom emergence of and global imbalances and highly skilled few and industrial institutions and information flows investment in social capital niche markets pace of change and paradox of potential productivity and output and secular stagnation start-ups and technological deskilling techno-optimism techno-pessimism as tectonic economic transformation and trading patterns web journalism see also automation; computing; globalization discrimination and exclusion ‘disruption’, phenomenon of distribution of wealth see inequality; redistribution; wealth and income distribution dotcom boom eBay economics, classical The Economist education in emerging economies during industrial revolution racial segregation in USA and scarcity see also university education electricity Ellison, Glenn Ellison, Sara Fisher emerging economies deindustrialization economic growth in education in foreign-exchange reserves growth in global supply chains highly skilled workers in see also developing economies employment and basic income policy cheap labour as boost to and dot.com boom in Europe and financial crisis (2008) ‘green jobs’ low-pay sector minimum wage impact niche markets in public sector ‘reshoring’ phenomenon as rising globally and social contexts and social membership as source of personal identity and structural change trilemma in USA see also labour; wages Engels, Friedrich environmental issues Etsy euro- zone Europe extreme populist politics liberalized economies political fractionalization in European Union Facebook face-recognition technology factors of production land see also capital; labour ‘Factory Asia’ factory work assembly-line techniques during industrial revolution family fascism Federal Reserve financial crisis (2008) financial markets cross-border capital flows in developing economies Finland firms and companies Coase’s work on core competencies culture of dark matter (intangible capital) and dematerialization and ‘disruption’ ‘firm-specific’ knowledge and information flows internal incentive structures pay of top executives shifting boundaries of social capital of and social wealth start-ups Ford, Martin, Rise of the Robots (2015) Ford Motor Company fracking France franchise, electoral Friedman, Milton Fukuyama, Francis Gates, Bill gender discrimination general purpose technologies enormous benefits from exponential progress and skilled labour supporting infrastructure and time lags see also digital revolution Germany ‘gig economy’ Glaeser, Ed global economy growth in supply chains imbalances lack of international cooperation savings glut and social consensus globalization hyperglobalization and secular stagnation and separatist movements Goldman Sachs Google Gordon, Robert Gothenburg, Sweden Great Depression Great Depression (1930s) Great Exhibition, London (1851) Great Recession Great Stagnation Greece ‘green jobs’ growth, economic battle over spoils of boom (1994-2005) and classical economists as consistent in rich countries decline of ‘labour share’ dotcom boom emerging economies gains not flowing to workers and industrial revolution Kaldor’s ‘stylized facts of’ and Keynes during liberal era pie metaphor in post-war period and quality of institutions and rich/elite cities rich-poor nation gap and skilled labour guilds Hansen, Alvin Hayes, Chris, The Twilight of the Elites healthcare and medicine hedge funds and private equity firms Holmes, Oliver Wendell Hong Kong housing in Bay-Area NIMBY campaigns against soaring prices pre-2008 crisis zoning and regulations Houston, Texas Huffington Post human capital Hungary IBM identity, personal immigration and ethno-nationalist separatism and labour markets in Nordic countries and social capital income distribution see inequality; redistribution; wealth and income distribution India Indonesia industrial revolution automation during and economic growth and growth of cities need for better-educated workers and productivity ‘second revolution’ and social change and wages and World’s Fairs inequality and education levels between firms and housing wealth during industrial revolution during liberal era between nations pay of top executives rise of in emerging economies and secular stagnation in Sweden wild contingency of wealth see also rich people; wealth and income distribution inflation in 1970s hyperinflation information technology see computing Intel interest rates International Space Station (ISS) iRobot ISIS Italy Jacksonville, Florida Jacquard, Joseph Marie Japan journalism Kaldor, Nicholas Keynes, John Maynard Kurzweil.
The Panama Papers: Breaking the Story of How the Rich and Powerful Hide Their Money by Frederik Obermaier
banking crisis, blood diamonds, credit crunch, crony capitalism, Deng Xiaoping, Edward Snowden, family office, high net worth, income inequality, liquidationism / Banker’s doctrine / the Treasury view, Mikhail Gorbachev, mortgage debt, offshore financial centre, optical character recognition, out of africa, race to the bottom, We are the 99%, WikiLeaks
Christoph Giesen from SZ’s economics team, who we worked with on Offshore Secrets, is also working in the small ICIJ China team. He speaks Chinese, travels there regularly and knows his stuff. We’d be lost without him. We find more and more Chinese people every day; there’ll be thousands of them by the end. Here’s a small list of names that the research group led by Christoph Giesen and Alexa Olesen, ICIJ’s China specialist, have dug up: Wallace Yu Yiping, the husband of the niece of Deng Xiaoping, who ruled China for almost two decades. Wallace Yu Yiping is revealed as the director and sole shareholder of Galaxia Space Management, established in the British Virgin Islands.3 Lee Shing Put, the son-in-law of Zhang Gaoli, the current vice premier of China and member of the Politburo. Lee Shing Put is a shareholder of the offshore companies Glory Top Investments Ltd and Zennon Capital Management Ltd.4 Zeng Qinghuai, the brother of Zeng Qinghong, former vice premier of China.
At FIFA, Juan Pedro Damiani, founding member of the ethics committee, handed in his resignation after it was revealed in the Panama Papers that he had done business with three of the accused FIFA officials. [ ] The Panama Papers has also had some negative consequences. The term ‘Panama Papers’ was censored in China within a few hours of the story’s initial publication. One lawyer was arrested for sharing a comic photo montage showing the current leader of the Communist Party and two former leaders – Xi Jinping, Deng Xiaoping and Jiang Zemin – wading through the Panama Canal. In Hong Kong, Keung Kwok-yuen, the executive chief editor of the Ming Pao newspaper, was dismissed hours after the Panama Papers revelations were made public. The official reason given for the sacking was that the paper had to cut costs. Our newspaper colleagues in Panama had to print the first issues about the Panama Papers at a secret location for fear that someone would use violence to stop their work.
Milton Friedman: A Biography by Lanny Ebenstein
affirmative action, banking crisis, Berlin Wall, Bretton Woods, Deng Xiaoping, Fall of the Berlin Wall, fiat currency, floating exchange rates, Francis Fukuyama: the end of history, full employment, Hernando de Soto, hiring and firing, inflation targeting, invisible hand, Joseph Schumpeter, labour market flexibility, Lao Tzu, liquidity trap, means of production, Mont Pelerin Society, Ponzi scheme, price stability, rent control, road to serfdom, Ronald Coase, Ronald Reagan, school choice, school vouchers, secular stagnation, Simon Kuznets, stem cell, The Chicago School, The Wealth of Nations by Adam Smith, Thorstein Veblen
At the same time, to the extent that there were less consistent relationships between money and prices than Friedman postulates, a larger discretionary role for government might be required. Empirical Keynesianism is inherently more interventionist than empirical monetarism. Friedman had a significant 1988 meeting with Zhao Ziyang, the reforming general secretary of the Communist Party and the heirapparent to Deng Xiaoping, about eight months before the Tiananmen Square crackdown and Zhao’s fall from power. Friedman and Zhao spoke (through a translator) at the meeting of about two hours, much longer than Zhao’s typical meetings with visitors, particularly foreign ones. In addition, a reporter from the People’s Daily, China’s leading paper, was present, and—almost unheard of—Zhao accompanied Milton and Rose to the driveway, where photos were taken that were printed in Chinese newspapers.
See also John Bates Clark Medal Clark, Maurice, 26 Clinton administration, 198 Coase theorem, 167 Coase, Ronald, 167–68 Cockett, Richard, 211 Columbia University, 25–30, 38, 48, 50, 127 MF’s graduate studies at, 25–27, 31–32 MF a visiting professor at, 151 Colwell, Ernest, 51 Committee on Social Thought, 54, 136, 216 communism, 54, 69, 109, 114, 148, 190, 203, 213–14, 21, 232 Cowles Commission of econometricians, 51, 54–59, 67, 158 Cowles Foundation, 158 Crane, Ed, 235, 241 Declaration of Independence, 201 Deng Xiaoping, 213–14 Dewey, John, 229 Dicey, A. V., 138, 142, 220 Director, Aaron, 24, 32, 53, 54, 60, 130, 136, 167–70, 216 on MF’s marriage to Rose, 39 Dorfman, Joseph, 132 Douglas, Paul, 22–23, 54, 137 Davenport, John, 132 de Soto, Hernando, 236 Eccles, Marriner, 43 economic data collection, 35–36 economics: cyclical fluctuations and, 37, 88, 115, 117 empirical approach to, 1, 26–27, 38, 39, 63–67, 75, 101, 114, 131, 133, 217, 238–39 institutional approach to, 26, 27 history of, 20 mathematical approach to, 51, 55 positive, 63–75, 119, 217, 234, 239–40 prediction in, 55, 64–68 Eisenhower, Dwight D., 17, 185 European Coal and Steel Community, 80 exchange rates, 72–73, 100, 171, 173, 185–86, 213, 227 Family Assistance Program, 174 Federal Reserve: Great Contraction and, 18, 117–18, 120, 122–23, 128 MF’s briefings to, 136–37 stabilization policy and, 156 See also Bernanke, Ben; Burns, Arthur; Eccles, Marriner; Greenspan, Alan; Jones, Homer Federal Communications Commission, 171–72 Federalist, The, 143 Ferguson, David, 125 Feulner, Ed, 166 fiscal policy, 23, 73–74, 103, 108, 110, 115, 156–57, 175, 177–78, 181, 198, 211–212 Fisher, Irving, 23, 110, 115 flexible international exchange rates, 72–73, 100, 171, 173, 185–86, 213, 227 Ford, Gerald, 167, 200 Foundation for Economic Education, 51, 140 Frazer, William, 35, 50, 58, 66, 217 free market, 3, 17, 20–21, 60, 73, 109, 144, 149, 151, 166, 189, 206, 213 Committee on Social Thought, 136 Congressional testimony of, 43, 113–14, 135–38, 174 criticism of, 137–38, 162–64, 190–92, 216–17 development of views, 175–76 economic theorist, 2 empiricist, 1, 26–27, 38, 39, 63–67, 75, 101, 114, 131, 133, 217, 238–39 entrepreneurial ventures, 14 Fulbright recipient, 80 Hoover Institution, 197–98 influence, 1–2, 46, 73, 88, 159, 210–214, 238 monetarist, 115–17 Mont Pelerin Society president, 164 National Bureau of Economic Research, 37 National Resources Committee, 33–37, 101, 135, 167 New Individualist Review advisor, 165, 216 Newsweek column, 169–71, 180, 181, 183, 185–86 Nobel laureate, 190–95 offered job at Stanford, 153 positivism and, 217 predictions, 150, 170, 179, 199 price theory course of, 59, 86–90, 94, 105, 147 professional organization involvement, 164–67 professorship at Chicago (1946–76), 51–52, 53, 85–95, 129–33 professorship at Chicago (1963–1964), 151 professorship at Madison, 41–42, 115 professorship at University of Minnesota, 47, 51 public intellectual, 1, 74, 139, 147, 181, 183, 237 public policy advocate, 135–37 Saturday Evening Post essays, 207 statistician, 14, 35, 50–51, 66, 97 supply-sider, 178 “teacher of economics,” 1, 93 theory of permanent and transitory income, 90, 101–104 visiting fellow at Cambridge, 80–81 visiting professor at Columbia (1964–1965), 153 visiting scholar at Federal Reserve Bank of San Francisco, 200 Volker lectures, 139–40 Wesley Clair Mitchell Research Professorship in Economics, 153 on influence, 144–45 on international exchange, 73 on limited government, 143 on Keynes, 24, 107, 160 on “lucky accidents,” 11 on Mises, 221 on MIT, 157 on A Monetary History of the United States, 127–28 on monetary policy, 108, 115–16, 232–33 on Mont Pelerin Society, 164 on his mother, 11 on New Deal Washington, 33–34 on Nixon, 185, 188 on Nobel prize, 191 on Phillips Curve, 160 on planned economic development, 150 on positive economics, 75, 87–88, 240 on prediction in economics, 64–66 on price stabilization, 116 on public policy, 233–34 on Reagan, 210 on rent control, 35, 49–50, 136, 171 on Rose, 32, 101, 140, 204 on Schultz, 33 on Simons, 25 on Stigler, 47 on taxation, 175–77 on teaching, 92, 95 on undergraduate experience, 14 on the University of Chicago, 22–23, 53, 60–61, 131, 133 on unjustified government activities, 171–73 on writing for public audiences, 182–83 Friedman, Milton, works: Capitalism and Freedom, 118, 147, 151, 162, 178, 181–82, 210, 223, 225 as better than Free to Choose, 145 dedicated to Janet and David, 83 development of, 137–143 excerpts from, 114, 141, 142–43, 194, 221, 231, 235 political philosophy in, 140–43 praise for, 156 Reagan’s having read, 206 unjustified government activities listed in, 171–72 use of “destiny” in, 73 “The Case for Flexible Exchange Rates,” 68, 72, 80 “Comments on Monetary Policy,” 68, 73–74 in Chicago, 53, 77–79, 94–95, 97 desire to return the West Coast, 153, 197 engagement to MF, 36–37, 39 family of, 31–32 in France, 80 graduate student at Chicago, 31, 32–33, 36, 232 Hoover Institution office, 198 making of Free To Choose, 200–204 marriage to MF, 39–41 meets MF, 31 in Minnesota, 51 religion, 31 research assistant to Knight, 36 in San Francisco, 197–200 sister to Aaron, 24, 32, 151 stillborn childbirth, 42 support for school vouchers, 228–29 undergraduate at Chicago, 32 Wanderjahr (wandering year), 147–51 in Washington, 36, 42, 44 White House lunch, 236–37 in Wisconsin, 41–42 Friedman, Rose Director, opinions and commentary: on the AEA, 165 on Free To Choose, 200, 204 on Knight and Viner, 33 on MF, 32 on MF’s Nobel prize, 191, 193 on MF’s teaching, 94–95 on New York, 50 on Samuelson, 156 Friedman, Rose Director, works of: author of “Poverty: Definition and Perspective,” 167 coauthor of “The Tide in the Affairs of Men,” 198, 219–20 coauthor of “The Tide Is Turning,” 198 coauthor of Studies in Income and Wealth, 100–101 coauthor of Two Lucky People, 235 coauthor of Tyranny of the Status Quo, 231 coauthor on Free to Choose, 199 role in A Theory of the Consumption Function, 101 role in Capitalism and Freedom, 140 Friedman, Ruth (MF’s sister), 7, 83 Friedman, Sarah Ethel Landau (MF’s mother), 5–8, 11, 18, 27, 46, 82–83, 153 Friedman, Tilllie “Toots” (MF’s sister), 82–83, 153 Gaidar, Yegor, 214 Galbraith, John Kenneth, 105–106, 152, 155, 157–58, 180, 200 Gandhi, Mohandas, 159 Gates, Tom, 179 Goldwater, Barry, 151–53, 169, 170, 181, 185, 232 Gordon, Donald, 72 Great Contraction (1929–1933), 18, 118–28, 238 Great Depression, 2, 18, 34, 69, 85, 113–27, 135, 162, 177 Keynes’ causation theory of, 123–24 Marxism and, 124 MF’s causation theory of, 2, 113, 119–23 MF’s lessons on, 125 myths surrounding, 119–23 Greenspan, Alan, 161, 179, 208, 237, 238 gross national product (GNP), 119, 234 Friedman, David Director (MF’s son), 46, 53, 77–78, 80–83, 147, 148, 150, 181, 197, 203, 228, 232 Friedman, Helen, (MF’s sister), 7 Friedman, Janet (MF’s daughter), 44, 53, 77–78, 80–83, 147, 148, 150, 197, 203, 228 Friedman, Jeno Saul (MF’s father), 5–8, 11, 13 Friedman, Milton, personal life and traits: agnosticism, 9, 11, 82 birth of,5,7 in Boy Scouts, 9 California residence, 199–200 Capitaf (Vermont residence), 182, 200 Chicago residence, 53, 78–79 childhood and youth, 7–11 childrearing philosophy, 82 death of, 241 decision to become an economist, 18 enjoyment of debate, 106–107 family history, 5–7 family life, 77–83 summer vacations, 80–81 father’s death, 11, 13 friendships, 16, 27, 32, 44, 47, 50, 52, 62, 148, 157, 164, 168, 181, 216 grandchildren, 203 Fortune magazine article, 180–81 Judaism, 9, 11–12 libertarian views, 1, 3, 55, 72, 75, 132–38, 151, 156, 165–66, 215, 218, 232, 239 love of mathematics, 11 marriage to Rose, 39–41 as “moral example,” 93 move to San Francisco, 197 New York Times Magazine cover, 181 open heart surgery, 188–89 pessimism, 206 physical appearance, 7 political views, 34–35, 135, 187, 237 precocity, 8, 10 professorial temperament, 187 sense of humor, 1, 90, 181, 194–95 television appearances, 181, 235 visit to Chile, 189–90 as word extremist, 85–87 Wanderjahr (wandering year), 147–48 Friedman, Milton, career: advisor to Goldwater, 152–53, 169, 185 advisor to Nixon, 185–88 advisor to Reagan, 185, 208–210 AEA president, 160–61, 164, 168 Center for Advanced Study, 81 Friedman, Milton, education: elementary school, 8–9 graduate school at Chicago, 19–25 graduate school at Columbia, 25–27, 31–32 high school, 10–12 receives masters degree from Chicago, 25 receives Ph.D. from Columbia, 48 research assistant to Knight, 36 research assistant to Kuznets, 38 research assistant to Schultz, 32–33 undergraduate at Rutgers, 13–18, 19 Friedman, Milton, influences: Burns, 15–17 childhood, 34 father’s death, 11, 13 founding fathers, 143 Hayek, 142–43, 144 Hotelling, 26 Jones, 15–17 libertarian, 15–16, 34, 141–42 Mill, 140–42 Mints, 162 Mises, 144 Simons, 70, 116 Viner, 20–21 Friedman, Milton, opinions and commentary: on balanced budgets, 177 on capitalism, 239 on Capitalism and Freedom, 145 on communism, 214 on Cowles Commission, 56–57 on critics, 68, 70, 159 on democracy and economics, 144 on equality, 35 on his family, 7 on fiscal policy, 178, 181, 212 on flat tax, 178 on foreign policy, 231–32 on free market, 109, 234 on freedom, 140–42, 152–53 on Galbraith, 157–58 on Goldwater, 152–53 on graduate school at Chicago, 19, 22–23, 27 on graduate school at Columbia, 26, 27 on the Great Depression, 125 on Hayek, 219 on Hotelling, 26 on immigrants, 6 on importance of early career, 55 on individualism, 140, 142–43, 204 on inflation, 42, 43, 73–74, 107, 115–16, 149, 218 “The Counter-Revolution in Monetary Theory,” 110, 211–212 Dollars and Deficits, 149–50 “The Expected Utility Hypothesis and Measurability of Utility,” 68 Free to Choose (book), 118, 141, 145, 199, 201–204, 205, 207, 209–210 Free to Choose (television series), 200–204, 205, 207, 210–211 “The Goldwater View of Economics,” 152–53 Income from Independent Professional Practice (dissertation), 48–49, 101 “Inflation and Unemployment” (Nobel lecture), 193 “Liberalism, Old Style,” 139 “The Marshallian Demand Curve,” 68, 70 “The Methodology of Positive Economics,” 63–69, 72, 100, 193, 239 “A Monetary and Fiscal Framework for Economic Stability,” 68–71, 74, 116 A Monetary History of the United States, 1867–1960, 49, 88, 135, 147, 151–52, 173, 181 development of, 113–18 importance of, 2, 123, 125–26 MF on, 127 reception of, 126–27 Money Mischief: Episodes in Monetary History, 233, 235 The Optimum Quantity of Money and Other Essays, 83 Price Theory: A Provisional Text, 87, 147 “Professor Pigou’s Method for Measuring Elasticities of Demand from Budgetary Data,” 37 “The Role of Monetary Policy,” 160–61, 168 “Social Responsibility: A Subversive Doctrine,” 169 Taxing to Prevent Inflation, 42 A Theory of the Consumption Function, 83, 97, 100–103, 113, 235 “The Tide in the Affairs of Men,” 198, 219–20 “The Tide Is Turning,” 198 Tyranny of the Status Quo, 199, 231 “The Utility Analysis of Choices Involving Risk,” 68 “Why Government Is the Problem,” 198 Friedman, Rose Director (MF’s wife): birth and childhood, 31–32 birth of daughter, Janet, 44, 77 birth of son, David, 46, 78 Hall, Thomas, 125 Hammond, Daniel, 93 Hansen, Alvin, 99 Harberger, Arnold, 62,189–90 Harrington, Michael, 202 Harris, Seymour, 139 Harrod, Roy, 110–11 Hawley-Smoot tariff, 121 “Hayek Tide,” 220 Hayek, Friedrich, 51, 86, 87, 136, 139, 140, 142–45, 151 Hazlitt, Henry, 206 Heller, Walter, 42, 180 Heritage Foundation, 166 Hitler, Adolf, 41 Hoffman, Nicholas von, 202 Homan, Paul, 132 Hoover Institution, 90, 167, 197–99, 208, 210, 233 Hoover, Herbert, 114, 123, 197 Hotelling, Harold, 25–26, 38, 50 housing, government built, 172 Hume, David, 65 Humphrey, Hubert, 188 Hutchins, Robert Maynard, 51, 79 inflation, 17, 127, 150, 160–62, 170–75, 179–81, 193, 199 average annual world consumer price index, 238 causes of, 233 MF on, 42, 43, 73–74, 107, 115–16, 149, 216, 218 monetary phenomenon, 1, 42, 171, 204, 213, 237 intellectual tides, 220 Intercollegiate Society of Individualists (ISI), 165–66, 216 Levi, Edward, 168 Levi, Kate, 168 Lewis, Anthony, 190 Lewis, H.
Berlin Wall, British Empire, David Attenborough, Deng Xiaoping, double helix, Etonian, Fellow of the Royal Society, index card, invention of gunpowder, Jarndyce and Jarndyce, New Urbanism, Ralph Waldo Emerson, stakhanovite, Stephen Hawking, Ted Kaczynski, trade route
No record of the conversation in Zhongnanhai exists. Maybe it never took place. But two things are certain. Joseph Needham did occasionally ride a bicycle. And China is now well on the way to becoming the world’s greatest producer—and soon the world’s greatest consumer—of automobiles. Whatever Mao said or did not say to Joseph Needham on that summer’s day in 1972, he was dead four years later, and his successor, Deng Xiaoping, was to be bent single-mindedly on bringing China into the forefront of the modern world. And if that meant, as far as transportation was concerned, the wholesale scrapping of millions of Flying Pigeons and a nation shackled to a lifetime of pollution and traffic jams and countless miles of new roads to be built, then so be it. Throughout this time there was a cascade of honors. In 1971 Needham was elected to a fellowship of the British Academy, so that now, in common only with the philosopher Karl Popper and the historian Margaret Gowing, he was a fellow of both the Academy and the Royal Society.
See also Mao Zedong (Chinese Communist leader); People’s Republic of China; Zhou Enlai (Chinese Communist leader) Companionship of Honor awarded to Joseph Needham, 250 compass, Chinese magnetic, 97, 183–84, 186 Complete Books of the Four Imperial Repositories, The (Siku Quanshu), 176n.36 Confucius and Confucianism, 128, 156, 191 Complete Collection of Illustrations and Writings of Ancient and Modern Times, The (Chinese imperial encyclopedia), 176–77 Cook, Stanley, 221 Cornford, John, 33 Cornford-McLaurin Fund, 33, 34 Corps of Messengers, British, 71 Cort, J. H., 227 Crescent Moon Lake, 129 Crick, Francis, 240 Crook, David, 58 Crowther, J. G., 53, 54, 57, 164 Cullen, Christopher, 251 Cultural Revolution (1966–1976), 231, 234, 235 names given to children during, 40n.7 Czechoslovakia, “Prague Spring” in (1968), 231 Dadu River, 85, 186 Daily Worker (Britain), 57 Daoism, 191, 192 Daquan River, 129 Darwinism, 13, 14 Deng Xiaoping (Chinese Communist leader), 237 Diamond Sutra, 101–2, 131, 138–39 Dictionary of National Biography (DNB), 230n.51 Diebold, John, 248, 249 dinosaur fossil Lufengosaurus, 156 DNA (deoxyribonucleic acid), double helix model of, 240 Dong Zhongshu, 168 Driberg, Tom, 233 Dujiangyan irrigation project, 108, 109 Dunhuang oasis and caves, 101, 102, 105, 128–32, 134–39 East Asian History of Science trust, 243–44 Eden, Anthony, 56 Eggleston, Frederick, 87 elements, five Chinese, 168 Elers, Peter, 233 Ellis, Havelock, 32 Emblica officinalis, 155 encyclopedia, imperial Chinese, 176–77 English Gymnosophist Society, 22 Epidemic Prevention Bureau, Lanzhou, China, 122 erotic texts, Chinese Daoist, 192 explorations, Chinese seagoing, 186, 194 extraterritoriality as legal concept, 72n.14 Far Eastern Survey, 228 Far East War Council, 54 Fessel, Klaus, 196 Fire-Drake Manual, The 199 Fisher, Ronald, 179–80 fishing reel, Chinese, 186 Fitch, James, 196 Foot, Dingle, 32 foot-binding practice in China, 119–20 Forster, E.
Lonely Planet China (Travel Guide) by Lonely Planet, Shawn Low
Albert Einstein, anti-communist, bike sharing scheme, call centre, carbon footprint, clean water, colonial rule, credit crunch, Deng Xiaoping, haute couture, haute cuisine, income inequality, indoor plumbing, land reform, place-making, Skype, South China Sea, special economic zone, sustainable-tourism, trade route, upwardly mobile, urban planning, urban renewal, urban sprawl, women in the workforce, Xiaogang Anhui farmers, young professional
Mao’s government fires missiles near islands under the control of Taiwan in an attempt to prevent rapprochement between the US and USSR in the Cold War. 1962 The Great Leap Forward causes mass starvation. Politburo members Liu Shaoqi and Deng Xiaoping reintroduce limited market reforms, which lead to their condemnation during the Cultural Revolution. 1966 The Cultural Revolution breaks out, and Red Guards demonstrate in cities across China. The movement is marked by violence as a catalyst for transforming society. 1972 US President Richard Nixon visits China, marking a major rapprochement during the Cold War, and the start of full diplomatic relations between the two countries. 1973 Deng Xiaoping returns to power as deputy premier. The modernising faction in the party fights with the Gang of Four, who support the continuing Cultural Revolution. 1976 Mao Zedong dies, aged 83.
Life-sized models of traditional shops are staffed by realistic waxworks, amid a wealth of historical detail, including a boundary stone from the International Settlement and one of the bronze lions that originally guarded the entrance to the HSBC bank on the Bund. Oriental Pearl TV TowerBUILDING (Dongfang Mingzhu Guangbo Dianshi Ta MAP GOOGLE MAP ; %5879 1888; h8am-10pm, revolving restaurant 11am-2pm & 5-9pm; mLujiazui) Love it or hate it, it’s hard to be indifferent to this 468m-tall poured-concrete tripod tower, especially at night, when it dazzles. Sucking in streams of visitors, the Deng Xiaoping–era design is inadvertently retro, but socialism with Chinese characteristics was always cheesy back in the day. The highlight is the excellent Shanghai History Museum, in the basement. You can queue up for views of Shanghai, but there are better views elsewhere and the long lines are matched by a tortuous ticketing system. Boat tours on the Huangpu River operate from the Pearl Dock (Mingzhu Matou MAP GOOGLE MAP ; 1 Century Ave; tickets ¥100), next to the tower.
In the mid-1950s he began to implement peasant-based and decentralised socialist developments. The outcome was the ill-fated Great Leap Forward and later the chaos of the Cultural Revolution. China saw significant gains in education, women’s rights, and average life expectancy under Mao’s rule; however, by most estimates between 40 and 70 million people died during that era of change. Five years after Mao’s death, Deng Xiaoping famously announced Mao had been 70% right and 30% wrong in an effort, some say, to tear down Mao’s cult of personality. Yet today, Mao remains revered as the man who united the country, and he is still commonly referred to as the ‘Great Leader’, ‘Great Teacher’ and ‘supremely beloved Chairman’. His image hangs everywhere – in schools, taxis and living rooms – but as a symbol of exactly what is the question with which China now grapples. 4Sleeping & Eating Mao Jia FandianHUNAN ( Shaoshan Village; mains ¥20-60; h6am-9pm) The best-known restaurant in the village was opened in 1987 by business-savvy octogenarian Madam Tang, who used to live in the house opposite Mao, but who now owns a restaurant empire with more than 300 outlets worldwide.
Admiral Zheng, agricultural Revolution, Albert Einstein, anti-communist, Arthur Eddington, Atahualpa, Berlin Wall, British Empire, Columbian Exchange, conceptual framework, cuban missile crisis, defense in depth, demographic transition, Deng Xiaoping, discovery of the americas, Doomsday Clock, en.wikipedia.org, falling living standards, Flynn Effect, Francisco Pizarro, global village, hiring and firing, indoor plumbing, invention of agriculture, Isaac Newton, James Watt: steam engine, knowledge economy, market bubble, Menlo Park, Mikhail Gorbachev, mutually assured destruction, New Journalism, out of africa, Peter Thiel, phenotype, pink-collar, place-making, purchasing power parity, RAND corporation, Ray Kurzweil, Ronald Reagan, Scientific racism, Silicon Valley, Sinatra Doctrine, South China Sea, special economic zone, Steve Jobs, Steve Wozniak, Steven Pinker, strong AI, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, Thomas L Friedman, Thomas Malthus, trade route, upwardly mobile, wage slave, washing machines reduced drudgery
In one celebrated case, a student won a coveted university place by turning in a blank examination book with a note claiming that revolutionary purity was more valuable than “bookworms who for many years have been taking it easy and have done nothing useful.” In a flourish that Soviet jokers might have appreciated, radical bigwigs (allegedly) argued that “a socialist train behind schedule is better than a revisionist train on schedule.” After 1972 the pragmatists pushed back, although it was only after Mao died in 1976 that the tide turned decisively in their favor. Deng Xiaoping, twice purged as a Right Deviationist under Mao and twice rehabilitated, now muscled his rivals aside and showed his true colors. Taking Mao’s old mantra “seek truth from facts” as his motto, Deng squarely confronted the most inconvenient truth in China: that the population was growing faster than the economy. To feed all the empty stomachs that came onto the job market each year, China’s economy needed to grow by 7 percent every year for at least a generation.
Assyria’s Tiglath-Pileser III and the Qin First Emperor both created terrible, centralized, high-end ancient empires; Europe’s Habsburgs and Japan’s Hideyoshi both failed to create great land empires in the sixteenth century; England’s Glorious Revolution in 1688 and the death of Mao in 1976 both put reformist cliques in power. Yet the most that any of these great men/bungling idiots did was to speed up or slow down processes that were already under way. None really wrestled history down a whole new path. Even Mao, perhaps the most megalomaniac of all, only managed to postpone China’s industrial takeoff, giving Deng Xiaoping the opportunity to be remembered as the great man who turned China around. If we could rerun the past like an experiment, leaving everything else the same but substituting bungling idiots for great men (and vice versa), things would have turned out much the same, even if they might have moved at a slightly different pace. Great men (and women) clearly like thinking that by force of will alone they are changing the world, but they are mistaken.
.: joke cited from Reynolds 2000, p. 541n. 544 “The dearest people”: China Youth Journal (September 27, 1958), cited from Becker 1996, p. 106. 544 “The Party Secretary”: Bo Yibo, Retrospective of Several Big Decisions and Incidents (1993), cited from Becker 1996, pp. 107–108. 544 “It is not”: Lu Xianwen (autumn 1959), cited from Becker 1996, p. 113. 544 “The air is filled”: Report from Jiangxi (autumn 1958), cited from Spence 1990, p. 580. 545 “Communism is paradise”: Song by Kang Sheng (1958), cited from Becker 1996, p. 104. 545 “No one in our family”: Informant, cited from Becker 1996, p. 136. 545 “The worst thing”: Informant, cited from Becker 1996, p. 138. 546 “It was class hatred”: “Li XX,” public poster in Beijing (September 2, 1966), cited from MacFarquhar and Schoenhals 2006, p. 127. 546 “This was the week”: President Richard Nixon, toast at a dinner in Shanghai (February 27, 1972), cited from Reynolds 2000, p. 329. 547 “bookworms who”: Zhang Tiesheng (1973), cited from Spence 1990, p. 638. In 1976 the “Gang of Four” (an ultraleftist clique including Mao Zedong’s widow) was accused of inventing this whole episode. 547 “a socialist train”: slogan attributed to the Gang of Four (1976), cited from Spence 1990, p. 651. 548 “During the ‘Cultural Revolution’”: Deng Xiaoping, speech (September 2, 1986), cited from Gittings 2005, p. 103. 548 “How do you double”: cited from “Soviet Cars: Spluttering to a Halt,” The Economist, July 10, 2008. 549 “We can’t go on”: Mikhail Gorbachev, private conversation (1985), cited from Gorbachev 1995, p. 165. 549 “In the Soviet Union”: Gorbachev 1995, p. 490. 549 “dregs of society”: Deng, speech to party leaders and army officers (June 9, 1989), cited from Spence 1990, p. 744. 550 “Our first objective”: Zalmay Khalilzad, Defense Planning Guidance, FY 1994–1999, Section IB, cited from http://www/gwu.edu/~nsarchiv/nukevault/ebb245/index.htm (accessed October 17, 2008). 551 “an official who believes”: Patrick Tyler, New York Times (March 8, 1992), p.
Ghosts of Empire: Britain's Legacies in the Modern World by Kwasi Kwarteng
Ayatollah Khomeini, banking crisis, British Empire, colonial rule, Corn Laws, corporate governance, Deng Xiaoping, discovery of penicillin, Etonian, illegal immigration, imperial preference, invisible hand, Khartoum Gordon, land reform, Scientific racism, Scramble for Africa, trade route, urban planning, Yom Kippur War
In this context, Crosland asserted that there had to be a ‘representative of working class interests’ on the Legislative Council.13 It was unlikely that many people in Hong Kong saw their society in such narrowly defined social categories. There was grotesque inequality in Hong Kong, but the Chinese hawkers and traders had never subscribed to a Marxist philosophy which saw everything in terms of class. In this respect, the Hong Kong Chinese were more like Victorian liberals who believed, as Deng Xiaoping later said, that ‘to grow rich is glorious’ and that wealth was a reward for industry and individual initiative. The issue of the death penalty revealed how out of touch the Labour government in London was with sentiment in Hong Kong. In the 1970s, despite its abolition in Britain, the death penalty still existed in Hong Kong and, although the Governor and his predecessor had commuted every death sentence since the late 1960s, ‘public opinion there [was] still strongly in favour of its being applied’.14 In 1975, the Foreign Office had noticed that there was ‘no sign that public pressure in Hong Kong for the implementation of death sentences is yet diminishing’ and capital punishment was so popular that the Executive Council accepted that ‘they would be unwise to press their proposal that the death penalty in Hong Kong should be suspended’.15 The feelings of the left wing of the Labour Party were well articulated by the Reverend John Gingell, the self-styled Industrial Adviser to the Bishop of Derby, who wrote the Foreign Office a series of letters on the issue of Hong Kong in the mid-1970s.
To compound this bureaucratic conservatism, Roberts also said that there was ‘a fairly widespread view that the boat should not be rocked’ at this time. The people of Hong Kong, in his rather complacent judgement, were ‘content not to have elections on any substantial scale, and would not welcome the uncertainties that would accompany them’.18 The background of international politics had, by 1978, shifted against the democratic movement in Hong Kong. With the death of Mao and the accession of Deng Xiaoping, a new era of economic liberalization had begun in China, which was accompanied by friendlier relations with the West, coupled with a more pragmatic attitude to Hong Kong. In the 1960s, Beijing had accused the British of hypocrisy because they had not let the people of Hong Kong rule themselves, but by the late 1970s the Chinese were anxious for the old order to remain. Beijing’s greater tolerance of colonial rule was reflected in the British press, which observed with delight the ‘unprecedented toasting of the Queen’s health by China’s unofficial “ambassador” to Hong Kong’ at the Chinese National Day Celebration in October 1978; Bank of China executives, it was also noticed, no longer entertained their Western counterparts in the workers’ canteen in the basement, but took them to one of the ‘modern American-run hotels’ in Hong Kong.19 The Chinese on the mainland were only too well aware of the advantages derived from Hong Kong business, and, as 1997 loomed ever larger on the horizon, they were particularly anxious to preserve the colony’s prosperity.
She recalled in her memoirs that ‘Britain’s standing in the world and my own had been transformed as a result of victory in the Falklands.’27 In the course of the discussions, it appeared that the British Prime Minister rejected the presumption since 1945 that all of Hong Kong really belonged to China and would be given back when the lease on the New Territories expired in 1997. As the South China Morning Post reported, citing ‘Chinese sources’, Margaret Thatcher was ‘probably the first British statesman in the past decade to dispute China’s sovereignty over Hong Kong’.28 In the course of his interview with Mrs Thatcher, Deng Xiaoping reiterated that the ‘Chinese were not prepared to discuss sovereignty’.29 In this statement Deng implied that the sovereignty of Hong Kong was an issue which Mrs Thatcher believed to be a subject of negotiation in the early 1980s. Yet by the late 1970s, there was a considerable degree of agreement between Britain and China on the issue of Hong Kong and China’s sovereignty had been fully accepted in the 1950s and 1960s, when Robert Black and Alexander Grantham had ruled out independence for Hong Kong, recognizing that the colony’s future lay in China.
The Atlantic and Its Enemies: A History of the Cold War by Norman Stone
affirmative action, anti-communist, Ayatollah Khomeini, bank run, banking crisis, Berlin Wall, Bernie Madoff, Big bang: deregulation of the City of London, Bonfire of the Vanities, Bretton Woods, British Empire, central bank independence, Deng Xiaoping, desegregation, Dissolution of the Soviet Union, European colonialism, facts on the ground, Fall of the Berlin Wall, financial deregulation, Francis Fukuyama: the end of history, Frederick Winslow Taylor, full employment, Henry Ford's grandson gave labor union leader Walter Reuther a tour of the company’s new, automated factory…, illegal immigration, income per capita, interchangeable parts, Jane Jacobs, Joseph Schumpeter, labour mobility, land reform, means of production, Mikhail Gorbachev, new economy, North Sea oil, oil shock, Ponzi scheme, price mechanism, price stability, RAND corporation, rent-seeking, Ronald Reagan, Silicon Valley, special drawing rights, Steve Jobs, strikebreaker, The Death and Life of Great American Cities, trade liberalization, trickle-down economics, V2 rocket, War on Poverty, Washington Consensus, Yom Kippur War, éminence grise
France, appositely enough, was the principal source for the spread of Marxist ideas: in the First World War, to create some gratitude on the part of the imperialists, the Chinese government had sent 100,000 labourers, each with a welded dog-tag, to the Western Front: this was known to the British as the ‘sausage machine’. Students, who also undertook to work part-time, also went to France, where, unsurprisingly, they picked up revolutionary ideas. Some of Mao Tsetung’s most prominent colleagues were among these students: Chou En-lai and Deng Xiaoping, for instance. Later on, as French academe moved Left, the Sorbonne attracted many more such, from all countries. On the worldwide scale, there was of course a potential Bolshevik alliance with victims of imperialism, and, quite soon after the Revolution, representatives of these, from India or China, began to appear in Moscow. The Communist International - Comintern - set up a school for them, and sent its own people to offer sage advice.
He himself was by now wholly in charge, chairman of the top bodies of the Party - Central Committee, Secretariat and Politburo, having, Stalin-fashion, eliminated all of his rivals and several others for good measure; all opposition had been swept aside, and when in April 1945 the seventh Party congress was held, of the 500 previous delegates half had dropped out, whether by suicide or nervous collapse or arrest. But still, in this period Mao could present himself as the genuine reformer, and was accepted as such by many foreigners; he went out of his way to emphasize that he would not discriminate too far and his lieutenant, the then young Deng Xiaoping, announced that ‘our policy towards the rich peasants is to encourage their capitalistic side, though not the feudal one’ (‘rich’, ‘capitalist’ and ‘feudal’ being entirely relative terms). The Kuomintang, by contrast, counted as corrupt and tyrannical; the wayward and vainglorious Chiang Kai-shek - his mausoleum in Taiwan must count as the greatest ever monument to failure - did not impress.
Davy, Richard Dayan, Moshe de Castro, Sergio de Catalogne, Gérard De Gasperi, Alcide de Gaulle, Charles: and Algerian war and Brezhnev character and demonstrations of 1968 and eastern Europe economic policy and EEC establishment of Fifth Republic and Franco-German relations Free French at Kennedy’s funeral leadership style memoirs and Nixon’s China visit reputation resignation resistance to American domination state visit to London (1962) and USSR vetoes Britain’s membership of EEC on Vietnam withdrawal of France from NATO military command Dean, James Dearborn, Michigan Debray, Régis Debré, Michel Debrecen Dejoie, Louis Delaunay, Robert and Sonia Delors, Jacques Delors Plan Demirel, Süleyman Democratic Party (United States) Deng Xiaoping Denktaş, Rauf Denmark Depardieu, Gérard Depression (1930s) Dersim Dessalines, Jean-Jacques détente Deutsche Bank development economics Dewey, John Diana, Princess of Wales Dictatorship of the Proletariat Diem, Ngo Dinh Dien Bien Phu, battle of (1954) Dimitrov, Georgy DINA (Chilean secret police) Disneyland divorce Diyarbakır Djerassi, Carl Dobi, István ‘Doctors’ plot’ (1952) Dodge, Joseph Doğramacı, Ali Doğramacı, İhsan Dollfuss, Engelbert Donetsk (Yuzovka) Dostoyevsky, Fyodor, Demons Douglas-Home, Charles Dowd, Mohammed Downfall (Der Untergang; film) ‘downsizing’ Dr Zhivago (film) Drake, Sir Francis Drtina, Prokop drug use Dubček, Alexandr Dukakis, Michael Dulles, Allen Dulles, John Foster Dumont, René Dunkirk, Treaty of (1947) DuPont (corporation) Durham Dutschke, Rudi Duvalier, François ‘Papa Doc’ Duvalier, Jean-Claude ‘Baby Doc’ East Berlin: access agreements with West government of life in Soviet-style architecture uprising of 1953 war damage see also Berlin Wall East Germany (German Democratic Republic): collectivization policy death of Ulbricht emigration to West establishment of East German state fall of East German state life in Lutheran Church Neues Forum ‘New Economic System’ and Ostpolitik and ‘Prague Spring’ rearmament shortages and rationing Socialist Unity Party (SED) Soviet-style architecture Stasi (state security) Systemzeit television treaties with West Germany (1971-2) tyranny and repression in uprising of 1953 East Prussia Ebbw Vale steel works EC see European Community ECA see Economic Cooperation Administration Ecevit, Bülent École Nationale d’Administration (ENA) École Normale Supérieure (ENS) Economic Cooperation Administration (United States; ECA) Economist (newspaper) ECSC (European Coal and Steel Community) Eczacıbaşı, Nejat F.
Imagining India by Nandan Nilekani
affirmative action, BRICs, British Empire, business process, business process outsourcing, call centre, clean water, colonial rule, corporate governance, cuban missile crisis, deindustrialization, demographic dividend, demographic transition, Deng Xiaoping, distributed generation, farmers can use mobile phones to check market prices, full employment, ghettoisation, glass ceiling, global supply chain, Hernando de Soto, income inequality, informal economy, joint-stock company, knowledge economy, labour market flexibility, land reform, LNG terminal, load shedding, Mahatma Gandhi, market fragmentation, Mikhail Gorbachev, Network effects, new economy, New Urbanism, open economy, pension reform, Potemkin village, price mechanism, race to the bottom, rent control, rolodex, Ronald Reagan, school vouchers, Silicon Valley, smart grid, special economic zone, The Wealth of Nations by Adam Smith, Thomas L Friedman, Thomas Malthus, transaction costs, trickle-down economics, unemployed young men, upwardly mobile, urban planning, urban renewal, women in the workforce, working poor, working-age population
Their angst is intensified by the quality of our public debate, the dismal record of some of our elected representatives and the corruption that seems to be ubiquitous. It is true that India is a young democracy, saddled with the problems of inexperience, and that it has endured ineffective, populist governments. But the flag-carriers for authoritarian rule should remember that such power is always more dangerous than it is worth. An authoritarian system is always susceptible to tyranny and abuse—it is as likely to produce a Robert Mugabe as a Deng Xiaoping. It also creates errors that cannot be easily corrected, as we have seen in China’s response to environmental issues and population growth. The democratic system, despite its flaws, is its own cure—in its guarantee of liberty for all people, irrespective of background and wealth, it offers the real drivers of change that can help overcome entrenched interests, inequalities and centuries-old divisions.
Ma Yinchu, made a proposal for a family planning program in China in the 1950s, he was opposed quite strongly, publicly ridiculed and lost his university job. But by the end of the 1970s, the Chinese government was also bitten by the population panic bug and began to emphasize population control to promote “social harmony” and optimum growth. The government first launched the “Later, Longer, Fewer” campaign, and then the one-child policy, which Deng Xiaoping implemented in 1981. Deng had a pretty unsparing approach to family planning and told his officials to “ ‘Just do it’—implement in any way and by any means possible.”14 What followed in China was the “technical policy on family planning,” which required intrauterine devices for women in families with one child, and sterilization for couples with two children. “Illegal” children born in the provinces affected job evaluations of bureaucrats and ministers.
Dasgupta, Asim Datta, Aniruddha Dave, Surendra DCM D-Company Deewar Defense Research and Development Organization “defined contributions,” Delhi Delhi Development Act (1957) Delhi Development Authority (DDA) Delhi Metro Delhi Public School Delhi School of Economics (DSE) Delhi University (DU) Delimitation Commission Deming awards “demographic dividend,” “Demographic Transitions and Economic Miracles in Emerging Asia” (Bloom) Deng Xiaoping Deshpande. K. de Soto, Hernando Dharavi slum Dhoni, Mahendra Singh diabetes Dickens, Charles dietary issues direct benefit payments disease “double-hump dividend,” Dravida Munnetra Kazhagam (DMK) Dreamworks SKG Dreze, Jean droughts Dube, S. C. Dumont, Louis Dutt, Sunil Dyer, General dysentery Dyson, Tim East India Company Economist economy, Indian: author’s views on ; of black market ; caste system and; closed vs. open; education and ; environmental impact of ; fragmentation of; global ; growth rate of; information technology (IT) in ; infrastructure and ; middlemen in ; migration in ; nationalization of ; “new” planned ; political impact of ; private vs. public sectors in ; reform of ; rural ; single market for ; subsidies in ; urban ; see also business, Indian Edison, Thomas Education Commission Education Guarantee Scheme (EGS) e-governance projects eGovernments Foundation Ehrlich, Paul Eisenhower, Dwight D. elderly population Election Commission electricity Electricity Act (2003) electronic order book system electronic voting machines (EVMs) Emergency Rule Employee Provident Fund (EPF) Employees’ Pension Scheme (EPS) Employees’ Provident Fund Organization (EPFO) energy resources ; see also specific types of energy engineers, software English language Enron Corp.
Civilization: The West and the Rest by Niall Ferguson
Admiral Zheng, agricultural Revolution, Albert Einstein, Andrei Shleifer, Atahualpa, Ayatollah Khomeini, Berlin Wall, BRICs, British Empire, clean water, collective bargaining, colonial rule, conceptual framework, Copley Medal, corporate governance, credit crunch, David Ricardo: comparative advantage, Dean Kamen, delayed gratification, Deng Xiaoping, discovery of the americas, Dissolution of the Soviet Union, European colonialism, Fall of the Berlin Wall, Francisco Pizarro, full employment, Hans Lippershey, haute couture, Hernando de Soto, income inequality, invention of movable type, invisible hand, Isaac Newton, James Hargreaves, James Watt: steam engine, John Harrison: Longitude, joint-stock company, Joseph Schumpeter, land reform, land tenure, Louis Pasteur, Mahatma Gandhi, market bubble, Martin Wolf, means of production, megacity, Mikhail Gorbachev, new economy, probability theory / Blaise Pascal / Pierre de Fermat, profit maximization, purchasing power parity, quantitative easing, rent-seeking, reserve currency, road to serfdom, Ronald Reagan, savings glut, Scramble for Africa, Silicon Valley, South China Sea, sovereign wealth fund, special economic zone, spice trade, spinning jenny, Steve Jobs, Steven Pinker, The Great Moderation, the market place, the scientific method, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, Thomas Malthus, Thorstein Veblen, total factor productivity, trade route, transaction costs, transatlantic slave trade, transatlantic slave trade, upwardly mobile, uranium enrichment, wage slave, Washington Consensus, women in the workforce, World Values Survey
And the waters of the Yangzi are constantly churned by countless barges piled high with coal, cement and ore. Competition, companies, markets, trade – these are things that China once turned its back on. Not any more. Today, Admiral Zheng He, the personification of Chinese expansionism and for so long forgotten, is a hero in China. In the words of the greatest economic reformer of the post-Mao era, Deng Xiaoping: No country that wishes to become developed today can pursue closed-door policies. We have tasted this bitter experience and our ancestors have tasted it. In the early Ming Dynasty in the reign of Yongle when Zheng He sailed the Western Ocean, our country was open. After Yongle died the dynasty went into decline. China was invaded. Counting from the middle of the Ming Dynasty to the Opium Wars, through 300 years of isolation China was made poor, and became backward and mired in darkness and ignorance.
G. xx–xxii, xxv Colombia 105, 115, 122 Angostura 121, 123, 125 colonialism see imperialism Columbus, Christopher 28 communication(s) 218–19 language see linguistic issues in/with overseas colonies 170–71, 181–2 railways 170, 171, 204, 215, 218, 224 in warfare 55, 181–2 communism 7, 11, 209–10, 227–8, 236, 238 consumerism and 249–50 see also Russia/Soviet Union comparative advantage 202, 202n competition 12, 13, 36–49 between states 36–9, 41 definition 13 in trade 33–6, 48; see also trade within states 24, 39–41 complex systems/complexity 299–301 Comunero Revolution (1781) 115 Conder, Josiah 222n Condorcet, marquis Nicolas de Caritat de 79 Reflections on Negro Slavery 78 Confucian philosophy 21, 27, 32, 43, 264, 286 Congo: Belgian 176, 191; French 174 Conrad, Joseph: Heart of Darkness 181 consumer credit 238 consumerism 12, 14, 17, 195, 196–255, 288 communist attitude to 249–50 definition 13 development of 196–218, 257 fashion see fashion/clothing Industrial Revolution and 201 jeans as symbol of 240–49, 250 marketing 241, 242, 246 Copernicus, Nicolaus 65 Cortés, Hernán 99 cotton industry/trade 201, 202–3, 204, 218 see also textile industry Crompton, Samuel 200 Cromwell, Oliver 107 cultural pursuits 11, 76, 91–2, 235n art/painting 60, 232; see also individual artists film 230, 241 literature 60, 76, 181, 203, 228, 269–70 music see music Czech Revolution (1967–8) 247–9, 251 da Camões, Luis 35 da Gama, Vasco 33–5, 37, 39 Daily Mail xxii, xxiin Danton, Georges Jacques 155–6 Darby, Abraham 200 David, Jacques-Louis 159 Davis, Jacob 241 de Albuquerque, Alfonso, Governor of Portuguese India 34 de Aliaga, Jerónimo 101, 102, 103, 112–13 de Córdoba, Fray Pedro 113–14 de Freycinet, Charles 170 de Montfort, Simon 40 de Tocqueville, Alexis Democracy in America 153–4 on French Revolution 153–4 de Torres, Sebastián 112–13 De Tott, baron François 87 Debieuvre, Lieut. Colonel (French army) 185–6 Debord, Guy 246 Debray, Régis 244 Delacroix, Eugène: Liberty Leads the People (painting) 161n Delafosse, Maurice 166 Delavignette, Robert 172–3 demography see population figures Deng Xiaoping 48 Denmark 147 Deppe, Ludwig 182 Descartes, René 65, 66, 80 di Lampedusa, Giuseppe Tomasi: The Leopard 214–15 Diagne, Blaise 166–7, 183–4, 187 Diamond, Jared Collapse: How Societies Choose to Fail … 298–9 on Western ascendancy 11–12 Dias, Bartolomeu 33 Dickens, Charles 203 Diderot, Denis 79 Diebitsch, Karl 233 diet 7, 24–5, 45–6, 170, 211 sugar 10, 45; production of 129, 131–2, 160 discovery see exploration disease(s) see health issues Djilas, Milovan 239 Dominican Republic 128 Donizetti, Giuseppe 88 Donne, Anne xxii Donne, John xxii–xxiii Dostoevsky, Fyodor: Crime and Punishment 228 Dubček, Alexander 248 Duckworth, Sir John 85 Dutch East India Company 38 Dutschke, Rudi 245 East India Company see British East India Company; Dutch East India Company economic crises 7, 17, 44 in the West xvii–xviii, 257, 258, 259, 260–64, 276–7, 283, 288, 301, 307–12; in France 149–50, 161 in Ottoman empire 71, 89 economic growth/output 5, 14, 199, 200, 204–5, 218, 225, 227, 232–3, 257, 304–5, 306–7 in East Asia 239–40 in Great Depression 229–31 economic systems see financial systems Ecuador 98, 122, 128 Edict of Worms (1521) 61 Edison, Thomas 260 education 14, 215, 238, 263, 264 in China 43 Islamic 51 literacy rates 77, 125, 263, 264 teaching of history xviii–xx university level 7, 17–18, 92, 175, 244–5 for women 94, 244 Edward, Prince of Wales (Edward VIII) 220, 225 Ehrhardt, Hermann 188–9 Ehrlich, Paul 176 Eichacker, Captain Reinhold 185–6 Eijkman, Christiaan 170 Einstein, Albert 235 Eisenstadt, Shmuel 3 Elisabeth Christine of Brunswick (wife of Frederick the Great) 73–4 Ellington, Duke 230 Elliott, J.
The World in 2050: Four Forces Shaping Civilization's Northern Future by Laurence C. Smith
Bretton Woods, BRICs, clean water, Climategate, colonial rule, deglobalization, demographic transition, Deng Xiaoping, energy security, flex fuel, global supply chain, Google Earth, guest worker program, Hans Island, hydrogen economy, ice-free Arctic, informal economy, invention of agriculture, invisible hand, land tenure, Martin Wolf, megacity, Mikhail Gorbachev, New Urbanism, oil shale / tar sands, oil shock, peak oil, purchasing power parity, Ronald Reagan, Ronald Reagan: Tear down this wall, side project, Silicon Valley, smart grid, sovereign wealth fund, special economic zone, The Wealth of Nations by Adam Smith, Thomas Malthus, trade liberalization, trade route, UNCLOS, UNCLOS, urban planning, Washington Consensus, Y2K
To borrow a name coined by my UCLA colleague Allen Scott,59 it is a shining technopolis. Writes author Henri Ghesquiere about Singapore’s success:60 Rapid growth was matched by enhanced well-being. The quality of life improved for large numbers of people. Singapore succeeded from the perspective of not only growth, but also social development. . . . China’s momentous decision in 1978 to reverse five centuries of economic isolation was influenced in part by Deng Xiaoping’s visit to Singapore that year. His dream to “plant a thousand Singapores in China” sparked numerous delegations on study tours to the island. South Korea was impressed with Singapore’s success in overcoming corruption. The city-state’s mastery in keeping urban traffic flowing has fascinated officials from many countries, and its housing program is studied by planners from around the world. Dubai eyes Singapore continually. . . .
Dawson Creek, British Columbia De Niro, Robert Dead Pool (Lawrence) death rates deltas Democratic Republic of the Congo demography: and aboriginal populations; and aging populations; and Alaska; and biofuels; and climate distribution; connection to other global forces; and declining populations; and the Demographic Transition; as global force; and global warming; and Gulags; and human settlement patterns; and immigration; and inertia of global forces; and life expectancy; measurement types; and momentum of population trends; and the “New North,” and NORCs; and population control policies; population densities and trajectories; and resource consumption; and urbanization; and water resources; and World War II, Dene people Deng Xiaoping Denmark: and aboriginal peoples; and the Arctic Council; and Arctic resources; and demographic trends; and immigration policy; and the “New North,” and UNCLOS; and wind power deserts developing world Diamond, Jared diamond mining disease drought Duke Energy Dupont East Asia Summit ecological footprint economics: and aging populations; and demography; and development policies; and economic discounting; and NORCs; shifting economic power; and super-regions; and urbanization; and water resources Economist Intelligence Unit Egypt Ehrlich, Paul El Niño elderly dependency ratio electric vehicles endangered species energy : and water consumption Energy Independence and Security Act Engels, Friedrich environmental activism Equatorial Guinea ERTS satellite An Essay on the Principle of Population (Malthus) Estonia ethanol Ethiopia Eurasia Europe.
Plutocrats: The Rise of the New Global Super-Rich and the Fall of Everyone Else by Chrystia Freeland
Albert Einstein, algorithmic trading, banking crisis, barriers to entry, Basel III, battle of ideas, Bernie Madoff, Big bang: deregulation of the City of London, Black Swan, Branko Milanovic, Bretton Woods, BRICs, business climate, call centre, carried interest, Cass Sunstein, Clayton Christensen, collapse of Lehman Brothers, conceptual framework, corporate governance, credit crunch, Credit Default Swap, crony capitalism, Deng Xiaoping, don't be evil, double helix, energy security, estate planning, experimental subject, financial deregulation, financial innovation, Flash crash, Frank Gehry, Gini coefficient, global village, Goldman Sachs: Vampire Squid, Gordon Gekko, Guggenheim Bilbao, haute couture, high net worth, income inequality, invention of the steam engine, job automation, joint-stock company, Joseph Schumpeter, knowledge economy, knowledge worker, linear programming, London Whale, low skilled workers, manufacturing employment, Mark Zuckerberg, Martin Wolf, Mikhail Gorbachev, Moneyball by Michael Lewis explains big data, NetJets, new economy, Occupy movement, open economy, Peter Thiel, place-making, Plutocrats, plutocrats, Plutonomy: Buying Luxury, Explaining Global Imbalances, postindustrial economy, Potemkin village, profit motive, purchasing power parity, race to the bottom, rent-seeking, Rod Stewart played at Stephen Schwarzman birthday party, Ronald Reagan, self-driving car, short selling, Silicon Valley, Silicon Valley startup, Simon Kuznets, Solar eclipse in 1919, sovereign wealth fund, stem cell, Steve Jobs, The Spirit Level, The Wealth of Nations by Adam Smith, Tony Hsieh, too big to fail, trade route, trickle-down economics, Tyler Cowen: Great Stagnation, wage slave, Washington Consensus, winner-take-all economy
“But the main point was that when an economy grows at 7 to 8 percent, then some sectors grow at 18 to 20 percent—8 percent is an average.” If you are good at responding to revolution, you figure that out and start a business in one of the 18 to 20 percent sectors: “It is the possibility of multimillionaires overnight.” You hear the same story in China. Lai Changxing was born and raised in a small village outside Xiamen, on China’s southeast coast, less than two hundred miles from Taiwan. When in the early 1980s Deng Xiaoping told the brutalized Chinese people it was okay to make money, Xiamen was one of the first provinces where the market experiment was launched, and Lai responded to that revolutionary opportunity. Starting with an auto parts company, by the middle of the next decade he had diversified into everything from umbrellas to textiles to electronics—and he had become a billionaire. “You could start a business in the morning and make money by the evening,” he told a journalist.
., 116–17, 122, 129–30 capital gains, 17, 44, 78, 79 Cardin, Pierre, 116 Carlyle Group, 121, 148 Carnegie, Andrew, ix, 9–11, 13, 26, 55, 71, 195, 235, 237 Carney, Mark, 252–56, 258–61 Carr, David, 140 Carter, Amy, 265–66 Casabolseros, Los, 51 Caterpillar, 26 CEOs, 134–40, 190, 219, 261 Cerisola, Pedro, 197 Chanos, James, 142, 172 Chaplin, Charlie, 98–100, 108, 114 charity, 70–76, 246, 264 Chasing Stars (Groysberg), 129 chefs, 111–13, 138 Chicago Tribune, 247 Chile, 149 China, xiii, 3, 14–17, 19–22, 27, 28, 30, 35, 62–63, 66, 68, 92, 146, 149, 156, 162, 186, 193, 198, 203–10, 217, 255–56, 260, 266, 267, 285 Chinese People’s Political Consultative Conference in, 203 Communist Party in, 46 income vs. happiness in, 31–32 iPhone and, 28 iPod and, 24–26 Ming Dynasty in, 96 National People’s Congress in, 203–4, 207, 209 princelings in, 208, 209 rent-seeking in, 204–10 strikes and, 33 “China Syndrome, The” (Autor, Dorn, and Hanson), 23–24, 27 Chopra, Tejpreet Singh, 157–59 Christensen, Clayton, 145, 147, 158 Chubais, Anatoly, 188 Cisco, 174 Citadel, 51 Citigroup, 63, 106, 121, 169–70, 257 consumer hourglass theory of, 6 plutonomy memo of, 5, 147, 167 revolutions and, 147 Clearwell, 106 Clinton, Bill, x, 3, 68, 71, 72, 270 Clinton, Chelsea, 72, 266 Clinton, Hillary, 265 Clinton Global Initiative, 68 clothing industry, 113–16 cognitive state capture, 256–57, 272–73 Cohen, Rachel, 76 collective good, 55–56 Commercial Advertiser, 7 Commonwealth Club, 176–78 communications technology, 99–100 communism, 14, 17–18, 21, 77, 136, 266, 284 Communist Party, 46, 89 computers, 146, 166–67 Congressional Budget Office (CBO), 43–44 Cook, Charlie, 111 Cook Political Report, 111 cooks, 111–13, 138 Cooper, Peter, 39 Cooper, Thomas, 11 Cooperman, Leon, 45, 245–46 Corak, Miles, 283 corruption, 224 in India, 201–2 legal, 224–27 Council on Foreign Relations, 185, 227 Crassus, Marcus, 195 creative capitalism, 75 Credit Suisse, 34–35, 122 Global Wealth Report of, 58–59 Credit Suisse First Boston (CSFB), 159–61 crony capitalism, 82–84, 190 Dalits, 45 Daschle, Tom, 270 data, big, 146, 165–66 Davies, Howard, 214–15 Davos, 61, 62, 68, 72, 75, 227 Deaton, Angus, 31, 82 Dedrick, Jason, 24–26 Delivering Happiness (Hsieh), 230 Deloitte, 173 democracy, 77 Deneuve, Catherine, 116 Deng Xiaoping, 156 dentists, 101, 107 Depression, Great, xiii, 9, 13, 29, 115 Depression, Long, 7, 9, 41 deregulation, 220–23, 225, 227 derivatives business, 212, 221 Detroit, Mich., 184, 280 Treaty of, 17, 18 DiCaprio, Leonardo, 108 DiFuria, Joan, 176 Digital Sky Technologies (DST), 66, 164 Dimon, Jamie, 244–45, 253–55, 257–60 Djilas, Milovan, 89–90, 266 DLA Piper, 105, 106 DLD (Digital-Life-Design), 68 Doll, Bob, 5 dopamine, 147 Doriot, Georges, 120–22 Dorn, David, 23–24, 27 Dow Jones Industrial Average, 6 Dreyfuss, Richard, 127 Druckenmiller, Stan, 143 Drucker, Peter, 88, 117–18 Drummond, Don, 216–17 Dubai, 63 Duggan, James, 249 Easterlin, Richard, 31 eBay, 171, 183 École Polytechnique, 273 economic crisis of 2008, see financial crisis of 2008 Economist, 209 Edison, Thomas, 38 education, 45, 47, 61, 91, 92 college, 47–50, 52, 61–62, 283 elite, 48–49, 52, 61–62, 83, 283 philanthro-capitalists and, 75, 76 race between technology and, 47–48 Einstein, Albert, 124–25, 126 electrocardiographs, 157–58 El-Erian, Mohamed, 65, 251–52 Emanuel, Rahm, 242, 258 employment: insecurity in, 53 unemployment, 186–87, 238, 240, 265 wages in, see wages Engels, Friedrich, 39 England, 63, 81, 139, 214–15, 227 industrial revolution in, 95 Jefferson on, 11–12 recession in, 57 summer social season in, 57, 67 entertainment, 100, 123, 130 movies, 98, 100, 109, 127–30 music, 109–10, 126–27, 170–71 entitlement, sense of, 239 entrepreneurs, 167 Ethan Allen, 185, 186 Eugénie, Empress, 114 evidence-based vs. ideological worldviews, 93–94 Evon, Michael, 232, 233, 234 extractive societies, 279–81, 283 Facebook, 47, 104, 146, 147, 163–66, 171, 175 Fake, Caterina, 172 fame, 123, 128 Fannie Mae, 271 fashion designers, 113–16 Faust, Drew, 49–50, 267 Fear Index, The (Harris), 229 Ferguson, Niall, 268 finance industry, 119–22, 129–30 financial crisis of 2008, 15, 28, 37, 63, 139, 141, 142, 144, 146, 152–54, 169–70, 178, 189, 214, 217, 220, 223, 254, 261, 269 blame for, 242 Bloomberg/Schumer/McKinsey report and, 212–14 regulation and, 212–14, 218, 253 financial deregulation, 220–23, 225, 227 Financial Services Forum, 253 Financial Stability Board (FSB), 253 Financial Times, 267 Fink, Larry, 166–67 Finland, 3 Firestone, 168–69 Firestone, Harvey, 168 Fitzgerald, F.
air freight, anti-communist, Asian financial crisis, asset allocation, asset-backed security, balance sheet recession, bank run, banking crisis, banks create money, Basel III, Ben Bernanke: helicopter money, Berlin Wall, Black Swan, bonus culture, Bretton Woods, call centre, capital asset pricing model, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, collateralized debt obligation, corporate governance, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, currency peg, debt deflation, deglobalization, Deng Xiaoping, diversification, double entry bookkeeping, en.wikipedia.org, Erik Brynjolfsson, Eugene Fama: efficient market hypothesis, eurozone crisis, Fall of the Berlin Wall, fiat currency, financial deregulation, financial innovation, financial repression, floating exchange rates, forward guidance, Fractional reserve banking, full employment, global rebalancing, global reserve currency, Growth in a Time of Debt, Hyman Minsky, income inequality, inflation targeting, invisible hand, Joseph Schumpeter, Kenneth Rogoff, labour market flexibility, labour mobility, liquidationism / Banker’s doctrine / the Treasury view, liquidity trap, Long Term Capital Management, margin call, market bubble, market clearing, market fragmentation, Martin Wolf, Mexican peso crisis / tequila crisis, moral hazard, mortgage debt, new economy, North Sea oil, Northern Rock, open economy, paradox of thrift, price stability, private sector deleveraging, purchasing power parity, pushing on a string, quantitative easing, Real Time Gross Settlement, regulatory arbitrage, reserve currency, Richard Feynman, Richard Feynman, risk-adjusted returns, risk/return, road to serfdom, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, Second Machine Age, secular stagnation, shareholder value, short selling, sovereign wealth fund, special drawing rights, The Chicago School, The Great Moderation, The Market for Lemons, the market place, The Myth of the Rational Market, the payments system, The Wealth of Nations by Adam Smith, too big to fail, Tyler Cowen: Great Stagnation, very high income, winner-take-all economy
This movement was one of the dominant – arguably, the dominant – social, economic, political and philosophical shift of the past four decades. Though challenged by the post-2007 crisis, it has not reversed. Politically, this shift is associated with the names of Ronald Reagan and Margaret Thatcher, president of the US and prime minister of the UK in the 1980s, though our progeny might associate it more closely with the name of Deng Xiaoping, the paramount leader of China after 1978 and progenitor of the programme of ‘reform and opening up’ that brought such a profound transformation to China and the world. Historically, this shift is also associated with the collapse of the Soviet Union and the Soviet empire in Central and Eastern Europe and with it the left-wing revolutionary tradition born out of the French Revolution two centuries before.
The developing countries and socialist bloc also imposed comprehensive barriers, including high tariffs, on cross-border flows of goods, services, foreign direct investment, other capital flows and people, in both directions. Ideas and associated events transformed this world of closed and highly regulated economies into the globalized and liberalized economy of the early 2000s. Arguably the most important change was the embrace of ‘reform and opening up’ by China after 1978, under the leadership of Deng Xiaoping. The election of Margaret Thatcher as British prime minister in 1979 and of Ronald Reagan as American president in 1980 began a revolution in the high-income countries, including privatization of what previously had been publicly owned companies. The European Union’s Single European Act – triggered partly by the desire to inject economic vigour and partly by the desire to relaunch the project of European integration – was agreed in 1986 and started a move towards a single market.
Why Stock Markets Crash: Critical Events in Complex Financial Systems by Didier Sornette
Asian financial crisis, asset allocation, Berlin Wall, Bretton Woods, Brownian motion, capital asset pricing model, capital controls, continuous double auction, currency peg, Deng Xiaoping, discrete time, diversified portfolio, Elliott wave, Erdős number, experimental economics, financial innovation, floating exchange rates, frictionless, frictionless market, full employment, global village, implied volatility, index fund, invisible hand, John von Neumann, joint-stock company, law of one price, Louis Bachelier, mandelbrot fractal, margin call, market bubble, market clearing, market design, market fundamentalism, mental accounting, moral hazard, Network effects, new economy, oil shock, open economy, pattern recognition, Paul Erdős, quantitative trading / quantitative ﬁnance, random walk, risk/return, Ronald Reagan, Schrödinger's Cat, short selling, Silicon Valley, South Sea Bubble, statistical model, stochastic process, Tacoma Narrows Bridge, technological singularity, The Coming Technological Singularity, The Wealth of Nations by Adam Smith, Tobin tax, total factor productivity, transaction costs, tulip mania, VA Linux, Y2K, yield curve
Large-scale rumors have also developed on the scale of nations . Hideo Ibe, previous president of the Research Institute for Policies on Aging, declared in a press release on February 14, 1996: “It has been brought to my attention that Deng Xiaoping has said: Since Japanese do not have enough children, we could send them ﬁfty million Chinese.” This statement seemed strange given that Japan had 340 inhabitants per square kilometer while China had only 100, and also inprobable in view of the strong control exerted by the immigration service of Japan. 110 chapter 4 Had Deng Xiaoping pronounced this sentence, or was it expected from Japanese public opinion? To determine the truth, the source of the information should be checked, which implies checking all Chinese newspapers, radio, and TV recordings during the months and perhaps the few years preceding this announcement.
Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia by Anthony M. Townsend
1960s counterculture, 4chan, A Pattern Language, Airbnb, Amazon Web Services, anti-communist, Apple II, Bay Area Rapid Transit, Burning Man, business process, call centre, carbon footprint, charter city, chief data officer, clean water, cleantech, cloud computing, computer age, congestion charging, connected car, crack epidemic, crowdsourcing, DARPA: Urban Challenge, data acquisition, Deng Xiaoping, East Village, Edward Glaeser, game design, garden city movement, Geoffrey West, Santa Fe Institute, George Gilder, ghettoisation, global supply chain, Grace Hopper, Haight Ashbury, Hedy Lamarr / George Antheil, hive mind, Howard Rheingold, interchangeable parts, Internet Archive, Internet of things, Jacquard loom, Jacquard loom, Jane Jacobs, jitney, John Snow's cholera map, Khan Academy, Kibera, knowledge worker, load shedding, M-Pesa, Mark Zuckerberg, megacity, mobile money, mutually assured destruction, new economy, New Urbanism, Norbert Wiener, Occupy movement, openstreetmap, packet switching, patent troll, place-making, planetary scale, popular electronics, RFC: Request For Comment, RFID, ride hailing / ride sharing, Robert Gordon, self-driving car, sharing economy, Silicon Valley, Skype, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, smart grid, smart meter, social graph, social software, social web, special economic zone, Steve Jobs, Steve Wozniak, Stuxnet, supply-chain management, technoutopianism, Ted Kaczynski, telepresence, The Death and Life of Great American Cities, too big to fail, trade route, Tyler Cowen: Great Stagnation, Upton Sinclair, uranium enrichment, urban decay, urban planning, urban renewal, Vannevar Bush, working poor, working-age population, X Prize, Y2K, zero day, Zipcar
As John Kasarda and Greg Lindsay explain in their 2011 book Aerotropolis, Songdo was originally conceived as “a weapon for fighting trade wars.” The plan was to entice multinationals to set up Asian operations at Songdo, where they would be able to reach any of East Asia’s boomtowns quickly by air. It was to be a special economic zone, with lower taxes and less regulation, inspired by those created in Shenzhen and Shanghai in the 1980s by premier Deng Xiaoping, which kick-started China’s economic rise.15 But in an odd twist of fate, Songdo now aspires to be a model for China instead. The site itself is deeply symbolic. Viewed from the sky, its street grid forms an arrow aimed straight at the heart of coastal China. It is a kind of neoliberal feng shui diagram, drawing energy from the rapidly urbanizing nation just over the western horizon. Massive in its own right, Songdo is merely a test bed for the technology and business models that will underpin the construction of pop-up megacities across Asia.
., 283–84 Curitiba, 11 CV Dazzle, face-recognition scrambling by, 14 Cyber Emergency Response Team, 268 cybernetics, 74–76, 81, 82 cyber-sabotage, 266–69 cyberspace, 49 Daley, Richard, 207 data-driven management, 210–11, 214 data mining, 206 data networks, 42–46 as fourth utility, 44 Davies, Donald, 259–60 Death and Life of Great American Cities, The (Jacobs), 16, 97–98, 103, 126 de Bruijn, Mirjam, 180 “deep analytics,” 209 Defense Department, U.S., 79–80, 111, 260, 265, 269–70 defense industry, 77, 79 de Forest, Lee, 129 de la Peña, Benjamin, 174 Deng Xiaoping, 24 “dependable computing,” 299 de Tocqueville, Alexis, 308 Detroit, Mich., 51, 295 Digital Cellular Radio (Calhoun), 52 digital divide, 189–93 issues of access and agency in, 190–91 digital identity, biometrics in, 310 Digital Media City, 28 digital networks, 7, 53 sharing economies in, 16 to transform cities with, 7–9 digital technology: for democratizing cities, 9–10 in design of smart leisure facility, 22 as solution to urban problems, 8 urbanization intersection with, 4, 6–7 digital video camera, 115 Division of Vital Statistics, U.S., 59 DIYcity.org, 155–59, 164–65, 202 Challenges for, 156–58 DIYtraffic, 157 Dodgeball, 121–26, 134, 146, 233 Dominican Republic, 176–77 Donteat.at, 150 dontflush.me, 139–40 doomsday scenarios, 276–81 Doppler radar, 68 Downtown Alliance (Manhattan), 132–33 Dreadnought, 21 Dr.
Finance and the Good Society by Robert J. Shiller
bank run, banking crisis, barriers to entry, Bernie Madoff, capital asset pricing model, capital controls, Carmen Reinhart, Cass Sunstein, cognitive dissonance, collateralized debt obligation, collective bargaining, computer age, corporate governance, Daniel Kahneman / Amos Tversky, Deng Xiaoping, diversification, diversified portfolio, Donald Trump, Edward Glaeser, eurozone crisis, experimental economics, financial innovation, full employment, fundamental attribution error, George Akerlof, income inequality, invisible hand, joint-stock company, Joseph Schumpeter, Kenneth Rogoff, land reform, loss aversion, Louis Bachelier, Mahatma Gandhi, Mark Zuckerberg, market bubble, market design, means of production, microcredit, moral hazard, mortgage debt, Occupy movement, passive investing, Ponzi scheme, prediction markets, profit maximization, quantitative easing, random walk, regulatory arbitrage, Richard Thaler, road to serfdom, Robert Shiller, Robert Shiller, Ronald Reagan, self-driving car, shareholder value, Sharpe ratio, short selling, Simon Kuznets, Skype, Steven Pinker, telemarketer, The Market for Lemons, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, Vanguard fund, young professional, Zipcar
As such we tend to associate nance with recent problems, such as the mortgage and debt hangovers in the United States and Europe, and with the legal and regulatory errors that preceded these events. But we should not lose sight of the bigger picture. The more important story is the proliferation and transformation of successful nancial ideas. Financial innovations emanating from Amsterdam, London, and New York are developing further in Buenos Aires, Dubai, and Tokyo. The socialist market economy, with its increasingly advanced nancial structures, was introduced to China by Deng Xiaoping starting in 1978, adapting to the Chinese environment the examples of other highly successful Chinese-speaking cities: Hong Kong, Singapore, and Taipei. The economic liberalization of India, which allowed freer application of modern nance, was inaugurated in 1991 under Prime Minister P. V. Narasimha Rao by his nance minister (later prime minister) Manmohan Singh, who was educated in economics at Nu eld College, Oxford University.
See Center for Research in Security Prices Cuba, 190 currency swaps, 75 currency units, 146, 147 Darwin, Charles, 221 dating services, 71–74 dealmaking, 8, 190, 235 debt: bank loans, 38, 42; collateralized debt obligations, 52, 54; conditions, 158; conventional vehicles, 153; credit card, 153, 154; European crisis, xvi, 117, 154–55, 171; within families, 152; of firms, 41, 152; government, 115, 148, 152, 154–55, 156–58, 163; household, 153; human errors, 152–53; indexation, 158; innovative contracts, 148; microfinance, 44; odious, 157–58; perceptions of, 148; personal, 151–52, 153; risks, 151, 153, 154–55; salubrious, 158. See also bonds; mortgages debt overhang, 153, 156 democratization: of finance, 43–44, 47, 144, 150, 209–11, 214, 235, 239; of financial capitalism, xiii–xiv, xvii, 5–6, 8–9; of insurance, 65–67, 68 Deng Xiaoping, 3 derivatives: definition of, 75; expanding markets, 62–63, 80; forward markets, 75; history, 76–77; on housing prices, 62; investment managers’ use of, 35; justifications, 77–80; pricing, 132; public perceptions, 75, 80. See also futures markets; mortgage securities; options developing countries: insurance, 66–67; microfinance, 44; philanthropy in, 126 De Waal, Frans, 227 Diagnostic and Statistical Manual of Mental Disorders (DSM- IV), 179 directors.
anti-communist, Berlin Wall, British Empire, cuban missile crisis, Deng Xiaoping, Dissolution of the Soviet Union, Donald Trump, F. W. de Klerk, Fall of the Berlin Wall, Haight Ashbury, kremlinology, Mikhail Gorbachev, mutually assured destruction, Ronald Reagan, Ronald Reagan: Tear down this wall, Saturday Night Live, Sinatra Doctrine, War on Poverty, Yogi Berra
Years later he recalled, “We were increasingly behind the West . . . and I was ashamed for my country—perhaps the country with the richest resources on Earth, and we couldn’t provide toothpaste for our people.” There were several alternative paths of reform. One was to loosen central economic control while retaining tight political control—the route taken by South Korean strongman Park Chung-hee in the 1960s and ’70s and by Deng Xiaoping and Chinese leaders to this day. A second was to keep the economy largely in government hands but ease off political control, like reform-minded Gulf states are now attempting. A third was to decentralize and allow the regions to compete on their own, along the lines of Switzerland and Canada. None of these approaches, or others conceivable, would have been easy or likely to succeed. All were tough; all were long shots.
See Eastern Europe; Soviet Union comprehensive test ban, 130–31, 307 Confederation of Sovereign States, 293 Conquest, Robert, 341 Cromwell, Oliver, 268 Cronkite, Walter and Betsy, 211 Crowe, William, 137, 197, 219–20, 253, 266–68, 280, 290, 308, 359n267 Cuba, 26, 117, 144, 314, 320 Czechoslovakia, 268, 280–81, 318 Daniloff, Nicholas, 38 Davis, Patti, 310, 322, 339 Deaver, Mike, 18 de Klerk, F. W., 327 Deng Xiaoping, 317 Derek, Bo, 339 Dobbs, Michael, 289–90 Dobrynin, Anatoly, 25–27, 137, 257 Dolan, Tony, 232–33 Donaldson, Sam, 36, 51, 183 Douglas, Kirk, 339 Downing Street Years (Thatcher), 319 Dubcek, Alexander, 318 Dubinin, Yuri, 14 Dunsmore, Barry, 182 Dutch (Morris), 323 Eastern Europe beginning collapse, 3–4, 268 comparison to Soviet Union, 29 reconciling collapse, 282–83 “Tear down the Wall” speech, 234–35 See also individual country East Germany Communist collapse, 268, 280 Gorbachev visit, 272–73 Honecker departure, 273–74 opening border to West, 274–78 refugees in Hungary, 271–72 See also Berlin/Berlin Wall Eisenhower, Dwight, 26, 60, 260, 314 Eliason, Marcus, 34, 35 Estonia, 283, 289 “evil empire,” Soviet Union as, 64–68, 93, 145, 233, 256, 265, 338 Falin, Valentin, 116, 121–22 Finnbogadóttir, Vigdís, 42, 45, 48, 300–301, 335 Fischer, Bobby, 33 Ford, Gerald, 20, 71, 116, 119, 205, 260 Foreman, George, 19 Fridfinnsson, Bjorn, 50 Friedman, Milton, 318 G-7 Economic Summit, 11–12, 232 Gaddis, Lewis, 331 Gallagher, James, 32 Geneva arms control, 68, 84, 116, 118, 122, 131, 133, 231, 237, 243 Geneva Conference on Disarmament (1932), 111–12 Geneva summit of 1985, 10, 40, 69–73, 81, 95, 105, 125, 216, 265 Georgia, 24, 25, 285, 329 Gerasimov, Gennadi, 273 Gibbon, Edward, 320 “The Gipper,” nickname origin, 255 Gisladóttir, Ingibjörg Sólrún, 301 glasnost and perestroika, 228–30, 239–40, 262, 263–64 Glassboro summit of 1967, 3, 58–59 Glitman, Mike, 231 Gorbachev, Mikhail birthmark, 83 dealing with Soviet collapse, 283–85 departure for Iceland, 22–23 final address to Soviet people, 294–95 flight to/from Iceland, 22–23, 187–91 leadership qualities, 325–28 Nobel Peace Prize (1990), 327–28 reflections on Reykjavik, 1–2, 4–5 relationship with Reagan, 314, 340 rise to power, 31–33 surviving coup attempt, 285–89 Time “Man of” recognition, 328 U.S. intelligence assessment, 14 views on nuclear war, 307 visit to West Germany, 327 Gorbachev, Raisa Maksimovna death of, 328 description/personality, 46 marital relationship, 328 notice by media, 32 relations with Nancy, 72–73, 92, 324 surviving coup attempt, 289 travel with Mikhail, 10–23, 31–32, 46, 71, 191, 247 wardrobe and activities, 90–92, 98, 146–47 Gore, Al, 202 Greenway, John, 53 Griffin, Merv, 337 Gromyko, Andrei (“Mr.
3D printing, 4chan, A Declaration of the Independence of Cyberspace, augmented reality, barriers to entry, Benjamin Mako Hill, butterfly effect, citizen journalism, Claude Shannon: information theory, conceptual framework, corporate governance, crowdsourcing, Deng Xiaoping, discovery of penicillin, Douglas Engelbart, Edward Glaeser, en.wikipedia.org, experimental subject, Filter Bubble, Freestyle chess, Galaxy Zoo, Google Earth, Google Glasses, Henri Poincaré, hindsight bias, hive mind, Howard Rheingold, information retrieval, iterative process, jimmy wales, Kevin Kelly, Khan Academy, knowledge worker, Mark Zuckerberg, Marshall McLuhan, Menlo Park, Netflix Prize, Nicholas Carr, patent troll, pattern recognition, pre–internet, Richard Feynman, Richard Feynman, Ronald Coase, Ronald Reagan, sentiment analysis, Silicon Valley, Skype, Snapchat, Socratic dialogue, spaced repetition, telepresence, telepresence robot, The Nature of the Firm, the scientific method, The Wisdom of Crowds, theory of mind, transaction costs, Vannevar Bush, Watson beat the top human players on Jeopardy!, WikiLeaks, X Prize, éminence grise
It’s like an update on the age-old habit of noticing the dust jackets on books others are reading: a momentary glimpse into the life of another mind. The Connected Society_ In China, they’re known as the “post-’90s,” and they don’t have a very good reputation. They’re youth who were born in the 1990s, and in the eyes of Chinese liberals and intellectuals, they’re regarded as quintessential slackers. They grew up in a world shaped by Deng Xiaoping’s go-go capitalism, in which the Communist Party had erased the 1989 Tiananmen Square revolt from history books and the local Internet. Politically ignorant and coddled by their parents—they are all “only children,” courtesy of China’s one-child-per-family policy—these post-’90s kids were regarded as feckless and materialist, interested only in video games, wasting time online, and fashion (such as their “exploded head” hairstyles).
See also innovation and discovery and urban density, 15 crowd wisdom, 155–56 Cunningham, Kevin, 264–65 Cute Cat Theory, 275 cutting and pasting, 98–99 Daily Review, 145 Daily Show, The (TV show), 97 DARPA, 39 Dash, Anil, 235 D’Assigny, Marius, 119 data literacy, 83–93 electoral district redrawing example, 84–86 pop/fun projects, 92–93 and public thinking, 91–92 self-tracking tools, 89–90 word cloud, 88–89 Davey, Eric, 187 Davis, Kevan, 160–61 Davis, Marc, 211 Day-Lewis, Cecil, 51 debate Greek tradition, 68–69, 75 writing online similarity to, 68–72 “Declaration of Independence of Cyberspace, A,” 273 Deep Blue supercomputer, 1–2, 5, 9–10, 280, 284 Del Cima, Pricilla, 155, 160 Deng Xiaoping, 245 Devonthink, 131 “Devouring Books,” 223 Dewey, Melville, 121–22 Dewey decimal system, 121–22 Diamandis, Peter, 230 Diaspora, 274 Dickinson, Emily, 54–55 Digital Democracy, 261 digital natives, 204 digital tools and access to information, 115–46 and ambient awareness, 210–44 bias of new tools, 8–9 cognitive future, optimistic view of, 11–13, 16–18 and collaboration, 149–73 for education and learning, 175–208 and new literacies, 83–113 and political change, 245–77 and public thinking, 45–82 distractions.
Capitalism and Freedom by Milton Friedman
affirmative action, Berlin Wall, central bank independence, Corn Laws, Deng Xiaoping, floating exchange rates, Fractional reserve banking, full employment, invisible hand, Joseph Schumpeter, liquidity trap, market friction, minimum wage unemployment, price discrimination, rent control, road to serfdom, Ronald Reagan, secular stagnation, Simon Kuznets, the market place, The Wealth of Nations by Adam Smith, union organizing
The rapid socialization of the post—World War II decades reflected the prewar shift of opinion toward collectivism; the creeping or stagnant socialism of the past few decades reflects the early effects of the postwar change of opinion; future desocialization will reflect the mature effects of the change in opinion reinforced by the collapse of the Soviet Union. The change in opinion has had an even more dramatic effect on the formerly underdeveloped world. That has been true even in China, the largest remaining explicitly communist state. The introduction of market reforms by Deng Xiaoping in the late seventies, in effect privatizing agriculture, dramatically increased output and led to the introduction of additional market elements into a communist command society. The limited increase in economic freedom has changed the face of China, strikingly confirming our faith in the power of free markets. China is still very far from being a free society, but there is no doubt that the residents of China are freer and more prosperous than they were under Mao—freer in every dimension except the political.
Affordable Care Act / Obamacare, bank run, big-box store, bonus culture, collateralized debt obligation, collective bargaining, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, Deng Xiaoping, financial innovation, housing crisis, invisible hand, Naomi Klein, obamacare, payday loans, profit maximization, profit motive, road to serfdom, Ronald Reagan, shareholder value, strikebreaker, The Chicago School, The Myth of the Rational Market, Thorstein Veblen, too big to fail, union organizing, Washington Consensus, white flight, Works Progress Administration
* Example: Glenn Beck, about a month later, monologuing to the camera just before letting his famous TV tears roll down his cheeks. “Those who screwed up must be allowed to fail, those who broke the law must go to jail.” * Aside from exhortations to go shopping after 9/11, I can think of no really prominent American politicians who have celebrated consumption in such a crass way. In fact, the only big-league politician I know of who has come close is China’s Deng Xiaoping, who said, “To get rich is glorious.” The quotations are from Glenn Beck’s Common Sense: The Case Against an Out-of-Control Government, Inspired by Thomas Paine (New York: Threshold Editions, 2009), pp. 12, 14. * ’Twas ever thus. In Age of Greed, the financial journalist Jeff Madrick tells the story of Citibank CEO Walter Wriston, an outspoken free-market zealot (see, for example, Wriston’s book, The Twilight of Sovereignty) who nevertheless demanded and received government bailouts for his bank on several notable occasions.
Private Island: Why Britain Now Belongs to Someone Else by James Meek
Affordable Care Act / Obamacare, Berlin Wall, business continuity plan, call centre, clean water, Deng Xiaoping, Etonian, HESCO bastion, housing crisis, illegal immigration, Martin Wolf, medical bankruptcy, Mikhail Gorbachev, post-industrial society, pre–internet, price mechanism, risk tolerance, road to serfdom, Ronald Reagan, Skype, sovereign wealth fund, Washington Consensus, working poor
Thatcher’s programme in Britain was an inspiration for the IMF and the World Bank as they experimented with the conditions they attached to bail-out loans to developing countries.* But at the end of 1990, the triumph of marketism seemed to hang in the balance. Reagan and Thatcher had relinquished the stage to less fervent, less charismatic successors. The man who’d introduced the market economy to China, Deng Xiaoping, had been blamed by traditional communists for fostering the Tiananmen Square protests, and was in disgrace. In the Soviet Union Mikhail Gorbachev, the great hope of free marketeers, was facing a similar backlash from hardliners, and the Baltic countries’ hopes of escape from the USSR looked bleak. Saddam Hussein, dictator of semi-socialist Iraq, had invaded semi-capitalist Kuwait. Yet the following year conviction began to grow among the marketeers that the final defeat of centrally planned, communitarian government was at hand, the sense that seemed to confirm such ideas as America having ‘won’ the Cold War, and the ‘end of history’.
Inside the Robot Kingdom: Japan, Mechatronics and the Coming Robotopia by Frederik L. Schodt
carbon-based life, computer age, computer vision, deindustrialization, Deng Xiaoping, deskilling, factory automation, game design, guest worker program, industrial robot, Jacques de Vaucanson, Norbert Wiener, post-industrial society, robot derives from the Czech word robota Czech, meaning slave, Ronald Reagan, Silicon Valley, telepresence, The Wealth of Nations by Adam Smith, V2 rocket, Whole Earth Review, women in the workforce
"We used to have somebody here monitoring the place at night," says the manager, "but now we just let it run by itself, unmanned." After everyone goes home, the lights are dimmed. Machines, unlike humans, need little rest, and they work fine in the dark. Every month almost two thousand people visit the Fanuc complex near Mount Fuji. They include not only prospective clients, journalists, and gawkers, but heads of state such as Prime Minister Margaret Thatcher of Great Britain and Deng Xiaoping of China. Roboticist Joseph Engelberger, after touring the facilities, joked thatFanuc should invite its American competitors to the complex. "They'd lay down and die," he says. Mrs. Thatcher left gushing with enthusiasm for high-tech as a means of energizing her stalled economy, leading a London columnist to use the headline "Iron Lady Riveted by Robots."1 Fanuc's Fuji complex has become a symbol to the world of the strength of Japanese manufacturing and of the futuristic world into which Japan has so aggressively plunged: flexible automation, unmanned factories, and robotization.
The Next Decade: Where We've Been . . . And Where We're Going by George Friedman
airport security, Ayatollah Khomeini, Berlin Wall, British Empire, Deng Xiaoping, facts on the ground, Fall of the Berlin Wall, full employment, hydraulic fracturing, illegal immigration, Monroe Doctrine, Ronald Reagan, South China Sea
Over the next decade, as China becomes more of an economic free agent, although not always a particularly prosperous one, Japan will have to have the United States guarantee its interests against China or shift its posture as well. Thus the balance that rests on the U.S.-Chinese relationship actually depends on how the Chinese economy functions over the next several years. CHINA AND JAPAN Part of the reason China was able to grow so dramatically in the 1980s is that Mao restrained growth just as dramatically up until that moment. When Mao died and was ultimately replaced by Deng Xiaoping, the mere shift of ideology freed China for an extraordinary growth spurt based on pent-up demand, combined with the native talents and capabilities of the Chinese people. Historically, China has cycled between opposites: either isolation combined with relative poverty or an openness to trade combined with social instability. From the 1840s, when Britain forced China to open its ports, to 1947 and the Communist takeover, China was open, prosperous in at least some regions, and violently fragmented.
Buying Time: The Delayed Crisis of Democratic Capitalism by Wolfgang Streeck
banking crisis, Bretton Woods, capital controls, Carmen Reinhart, central bank independence, collective bargaining, corporate governance, David Graeber, deindustrialization, Deng Xiaoping, Eugene Fama: efficient market hypothesis, financial deregulation, financial repression, full employment, Gini coefficient, Growth in a Time of Debt, income inequality, Joseph Schumpeter, Kenneth Rogoff, knowledge economy, labour market flexibility, labour mobility, late capitalism, means of production, moral hazard, Occupy movement, open borders, open economy, Plutonomy: Buying Luxury, Explaining Global Imbalances, profit maximization, risk tolerance, shareholder value, too big to fail, union organizing, winner-take-all economy, Wolfgang Streeck
Schäfer, Republican Liberty and Compulsory Voting, MPIfG Discussion Paper No. 11/17, Cologne: Max-Planck-Institut für Gesellschaftsforschung, 2011. 19 For a journalistic account of this correlation, see M. Schlieben, ‘Die wählen sowieso nicht’, Zeit online, 13 May 2012. 20 A prominent representative of this position, which was closely linked to ‘modernization’ theory, was Seymour Martin Lipset (Political Man: The Social Bases of Politics). Recent counter-examples include post-Allende Chile and China since Deng Xiaoping. 21 E. Böhm-Bawerk, Control or Economic Law?, Auburn, AL: Ludwig von Mises Institute, 2012 . 22 E. Durkheim, The Division of Labour in Society, London: Palgrave Macmillan, 1974 . 23 At an individual level, the economic theory taught at most university economics departments achieves this with astonishing effectiveness in most of its disciples. Organized business pursues the same objective with its demand for school classes in economics’ – which amounts to nothing other than moral re-education rewarded with school grades and presented as initiation into positive, ‘value-free’ science.
How to Run the World: Charting a Course to the Next Renaissance by Parag Khanna
Albert Einstein, Asian financial crisis, back-to-the-land, bank run, blood diamonds, borderless world, BRICs, British Empire, call centre, carbon footprint, charter city, clean water, cleantech, cloud computing, corporate governance, corporate social responsibility, Deng Xiaoping, Doha Development Round, don't be evil, double entry bookkeeping, energy security, European colonialism, facts on the ground, failed state, friendly fire, global village, Google Earth, high net worth, index fund, informal economy, invisible hand, labour mobility, laissez-faire capitalism, Masdar, megacity, microcredit, mutually assured destruction, Naomi Klein, New Urbanism, offshore financial centre, oil shock, open economy, out of africa, private military company, Productivity paradox, race to the bottom, RAND corporation, reserve currency, Silicon Valley, smart grid, South China Sea, sovereign wealth fund, special economic zone, sustainable-tourism, The Fortune at the Bottom of the Pyramid, The Wisdom of Crowds, too big to fail, trade liberalization, trickle-down economics, UNCLOS, uranium enrichment, Washington Consensus, X Prize
There is no Thomas Jefferson in Africa, but at least President Paul Kagame of Rwanda, who rigs elections and marginalizes opposition, also builds roads and boosts education. Afghanistan’s best-case scenario is none other than Mongolia: poor and landlocked, but stable and profiting from taxing mineral exploitation. Countries can learn from those who have done it right and reached the next stage. China has become the iconic example of a large, third world nation rapidly ascending the global economic and political ladder. Deng Xiaoping’s policies—farmer subsidies, opening the economy to foreign markets, and limiting families to one child—combined to achieve the fastest decrease in poverty in history. China has also constructed about sixty-two thousand miles of highway per year, creating access to expressways for almost all its midsize and larger cities. Property rights are also increasingly widespread, allowing farmers to borrow against collateral, and China plans to have a medical clinic in every village by 2012.
The Relentless Revolution: A History of Capitalism by Joyce Appleby
1919 Motor Transport Corps convoy, agricultural Revolution, anti-communist, Asian financial crisis, asset-backed security, Bartolomé de las Casas, Bernie Madoff, Bretton Woods, BRICs, British Empire, call centre, collateralized debt obligation, collective bargaining, Columbian Exchange, corporate governance, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, David Ricardo: comparative advantage, deindustrialization, Deng Xiaoping, deskilling, Doha Development Round, double entry bookkeeping, epigenetics, equal pay for equal work, European colonialism, facts on the ground, failed state, Firefox, Ford paid five dollars a day, Francisco Pizarro, Frederick Winslow Taylor, full employment, Gordon Gekko, Henry Ford's grandson gave labor union leader Walter Reuther a tour of the company’s new, automated factory…, Hernando de Soto, hiring and firing, illegal immigration, informal economy, interchangeable parts, interest rate swap, invention of movable type, invention of the printing press, invention of the steam engine, invisible hand, Isaac Newton, James Hargreaves, James Watt: steam engine, Jeff Bezos, joint-stock company, Joseph Schumpeter, knowledge economy, land reform, Livingstone, I presume, Long Term Capital Management, Mahatma Gandhi, Martin Wolf, moral hazard, Ponzi scheme, profit maximization, profit motive, race to the bottom, Ralph Nader, refrigerator car, Ronald Reagan, Scramble for Africa, Silicon Valley, Silicon Valley startup, South China Sea, South Sea Bubble, special economic zone, spice trade, spinning jenny, strikebreaker, the built environment, The Wealth of Nations by Adam Smith, Thomas L Friedman, Thorstein Veblen, total factor productivity, trade route, transatlantic slave trade, transatlantic slave trade, transcontinental railway, union organizing, Unsafe at Any Speed, Upton Sinclair, urban renewal, War on Poverty, working poor, Works Progress Administration, Yogi Berra, Yom Kippur War
China’s Economic Reformer Mao died in 1976, leaving a society dispirited, poor, and entangled in layers of party control. He had subjected the economy to politics in two senses, oversight and a push for industrialization to the exclusion of consumption to keep out foreign influence. He also presided over great leaps in life expectancy and literacy, which were going to stand the country in good stead later.6 Two years after Mao’s death, Deng Xiaoping came to power and soon put in place a program to breathe life into the stagnating economy. In 1971, President Richard Nixon had traveled to China after an unusual diplomatic rapprochement conducted across the Ping-Pong table. By 1978 the United States had formally recognized its Cold War enemy. The State Department now maintains that it never wants to see bilateral relations with any nation become so sour that it must appeal to Ping-Pong players to carry an olive branch.
It can’t slow down or reverse course because the gains have been too conspicuous and widely shared. A phrase in a Los Angeles Times article caught something of the world-turned-upside-down aspect of Chinese development: “former Red Guards-turned-millionaires.”21 The June Fourth Incident was a wake-up call for the party. It would take strong material progress to hold the demands for more freedom at bay. In 1992 Deng Xiaoping went on a speaking tour in the south of China. Invariably referred to as his “famous trip,” it prepared the country for a round of new reforms that would be instituted in subsequent congresses of the China Communist Party. The law and the party looked more favorably upon private property. A 1999 constitutional amendment gave private ownership the same status as state ownership. Trading in company stock was regularized; employers were allowed to fire unneeded workers.
Drink: A Cultural History of Alcohol by Iain Gately
barriers to entry, British Empire, California gold rush, delayed gratification, Deng Xiaoping, Edward Lloyd's coffeehouse, Fellow of the Royal Society, Gordon Gekko, greed is good, Haight Ashbury, Hernando de Soto, imperial preference, invisible hand, joint-stock company, Louis Pasteur, megacity, music of the spheres, Peace of Westphalia, refrigerator car, Ronald Reagan, South Sea Bubble, spice trade, strikebreaker, the scientific method, Tim Cook: Apple, trade route, traveling salesman, Upton Sinclair, V2 rocket, working poor
It was served to President Nixon and his entourage on his 1972 visit to China and made a lasting impression on every American who drank it. Dirck Halstead, a reporter covering the event, described mao-tai as “a highly combustible rice wine that was essentially sake—times ten.” Henry Kissinger, Nixon’s national security advisor, was equally impressed by mao-tai, as the following transcription from dinner in April 1974 at the Waldorf Astoria with Chinese Vice Premier Deng Xiaoping illustrates: KISSINGER: I think if we drink enough mao-tai we can solve anything. DENG: Then when I go back to China, I must increase production of it. KISSINGER: You know, when the president came back from China, he wanted to show his daughter how potent mao-tai was. So he took out a bottle and poured it into a saucer and lit it, but the glass bowl broke and the mao-tai ran over the table and the table began to burn!
Cyprus Czechoslovakia Daedalus D’Agostini Winery Dahomey Dana, Richard Henry Darius Dark Ages Darwin, Erasmus Daughters of Temperance David, Jacques-Louis De Kooning, Willem De Luca, John A. De Quincey, Thomas Dean, James Decimius Ausonius Declaration of Independence Declaration of Rights and Grievances Defense of the Realm Act Defoe, Daniel Degas, Edgar Delaware Indians delirium tremens Democratic Party Demosthenes denatured alcohol Deng Xiaoping Diana, Princess of Wales Dias, Bartolomeo Dickens, Charles Digby, Kenelm Diocletian Dionysus. See Bacchus Disney, Walt distillation and the American Revolution and the War crisis distillation in Elizabethan England and the fir trade and Franciscan friars freeze-distillation and fuel production and Germany and the gin craze and Islam and the Malt Lecture Martin Luther on and Mexico and moonshine and New World colonization and New York production levels in the U.S.
Thank You for Being Late: An Optimist's Guide to Thriving in the Age of Accelerations by Thomas L. Friedman
3D printing, additive manufacturing, affirmative action, Airbnb, AltaVista, Amazon Web Services, autonomous vehicles, Ayatollah Khomeini, barriers to entry, Berlin Wall, Bernie Sanders, bitcoin, blockchain, business process, call centre, centre right, Clayton Christensen, clean water, cloud computing, corporate social responsibility, crowdsourcing, David Brooks, demand response, demographic dividend, demographic transition, Deng Xiaoping, Donald Trump, Erik Brynjolfsson, failed state, Fall of the Berlin Wall, Ferguson, Missouri, first square of the chessboard / second half of the chessboard, Flash crash, game design, gig economy, global supply chain, illegal immigration, immigration reform, income inequality, indoor plumbing, Internet of things, invention of the steam engine, inventory management, Jeff Bezos, job automation, John von Neumann, Khan Academy, Kickstarter, knowledge economy, knowledge worker, land tenure, linear programming, low skilled workers, Lyft, Mark Zuckerberg, Maui Hawaii, Menlo Park, Mikhail Gorbachev, mutually assured destruction, pattern recognition, planetary scale, pull request, Ralph Waldo Emerson, ransomware, Ray Kurzweil, Richard Florida, ride hailing / ride sharing, Robert Gordon, Ronald Reagan, Second Machine Age, self-driving car, shareholder value, sharing economy, Silicon Valley, Skype, smart cities, South China Sea, Steve Jobs, TaskRabbit, Thomas L Friedman, transaction costs, Transnistria, urban decay, urban planning, Watson beat the top human players on Jeopardy!, WikiLeaks, women in the workforce, Y2K, Yogi Berra
As The Economist noted in an August 23, 2014, story about China: “For centuries China lay at the center of things, the sun around which other Asian kingdoms turned. First Western ravages in the middle of the 19th century and then China’s defeat by Japan at the end of it put paid to Chinese centrality.” But after opening to the world in the 1970s, China used its history to energize its future. Particularly under the leadership of Deng Xiaoping, it acknowledged it was in a divot, and reached out to the world to learn everything it could to adapt and catch up and reestablish its greatness. By contrast, Russia let its humiliation get the best of it after the collapse of the Soviet Union, which President Putin once described as the “greatest tragedy of the twentieth century.” Lawrence E. Harrison, writing in a collection he coedited, Culture Matters in Russia—and Everywhere, noted: [The] collapse of communism has left Russia humiliated—it has lost its great power status and is on the sidelines watching as former ally and competitor China moves toward that status.
Curie, Marie Cutting, Doug cybercriminals cyberspace, see supernova (cloud computing) cyberwarfare Daily Telegraph dairy industry, computerization in Dakar Dalio, Ray Daly, Herman Dara, Dina Dara’a, Syria Darwin, Charles data, see big data data transmission, cost-speed ratio in DataWind Davison, Lang Debreu, Gérard decolonization Deep Blue Defense Department, U.S. deforestation de la Vega, Ralph Delgo, Lior Dell, Michael Deming, David democracy; computation and Democratic convention (1948) Democratic Party Deng Xiaoping desertification designers, supernova and deterrence Deutsch, Lisa developing world; climate change and; global flows and; industrialization in diabetes Diamond, Jared Diamond, Larry Digital Globalization (McKinsey Global Institute) dining room tables, discussion around Dirkou, Niger Disko Island dislocation disruption; computation and; political; workforce and diversity: in culture; economic growth and; immigration and; in politics DNA sequencing Dodd-Frank Act Doerr, John Donner, Jan Hein Donovan, John Don’t Tell Douglas (Meyer) DOS dot-com bubble, positive effects of DRAM (dynamic random access memory) droughts DTECH-ENGINEERING Dubai Dukakis, Michael Dunne, Jimmy Dust Bowl dynamic stability Earle, Sylvia Earned Income Tax Credit Earth: history of; see also Mother Nature, human impact on East Asia, economics of Eastern Europe eBay Ebola e-books Echo, The (St.
The Making of Global Capitalism by Leo Panitch, Sam Gindin
accounting loophole / creative accounting, airline deregulation, anti-communist, Asian financial crisis, asset-backed security, bank run, banking crisis, barriers to entry, Basel III, Big bang: deregulation of the City of London, bilateral investment treaty, Branko Milanovic, Bretton Woods, BRICs, British Empire, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, collective bargaining, continuous integration, corporate governance, Credit Default Swap, crony capitalism, currency manipulation / currency intervention, currency peg, dark matter, Deng Xiaoping, disintermediation, ending welfare as we know it, eurozone crisis, facts on the ground, financial deregulation, financial innovation, Financial Instability Hypothesis, financial intermediation, floating exchange rates, full employment, Gini coefficient, global value chain, guest worker program, Hyman Minsky, imperial preference, income inequality, inflation targeting, interchangeable parts, interest rate swap, Kenneth Rogoff, land reform, late capitalism, liquidity trap, London Interbank Offered Rate, Long Term Capital Management, manufacturing employment, market bubble, market fundamentalism, Martin Wolf, means of production, money: store of value / unit of account / medium of exchange, Monroe Doctrine, moral hazard, mortgage debt, mortgage tax deduction, new economy, non-tariff barriers, Northern Rock, oil shock, precariat, price stability, quantitative easing, Ralph Nader, RAND corporation, regulatory arbitrage, reserve currency, risk tolerance, Ronald Reagan, seigniorage, shareholder value, short selling, Silicon Valley, sovereign wealth fund, special drawing rights, special economic zone, structural adjustment programs, The Chicago School, The Great Moderation, the payments system, The Wealth of Nations by Adam Smith, too big to fail, trade liberalization, transcontinental railway, trickle-down economics, union organizing, very high income, Washington Consensus, Works Progress Administration, zero-coupon bond
While its financial markets remained comparatively small, no country had larger international reserves, or was a larger holder of US Treasuries. Yet China was simultaneously able to maintain annual levels of domestic investment which, relative to GDP, were more than double those of both the US and Europe. China’s “open door” at the beginning of the twenty-first century was so utterly different from that of a century earlier because this time global capital entered by invitation. In the early 1980s Deng Xiaoping explained to the US secretary of state, George Shultz, the Communist Party’s new principle of China’s “two openings.” The first was in China itself, and that was important, but it was not enough. China also had to open itself to the outside world, particularly to the United States. The reason, he said, was that China was backward and needed the knowledge, the technology, and the markets that the rest of the world in general and the United States in particular had to offer.82 Although Deng was especially impressed by the rapid development of Japan and South Korea, the initial Chinese reforms had by and large been creative variations on reforms attempted by other Communist states: allowing rural households to have their own plots of land; promoting collectively owned town and village enterprises (TVEs) while permitting the development of small-scale private enterprises; modest market-oriented reforms in state owned enterprises (SOEs); regional experimentation with “special economic zones” to promote exports and induce foreign investment.83 All of this led to strong growth, but came up against the same trade and fiscal contradictions that many other developing countries had experienced.
., 399n75 consumers/consumption, 21, 27, 30, 52, 82, 101, 137, 192, 291, 302, 306–8, 310, 317, 319, 321, 333, 337, 339, 443n100 ‘American Standard of Consumption’, 50 in China, 299 and debt, 269–70 role in postwar era , 83–5 US global dominance, 336 Continental Illinois, 179, 209, 236, 266 Coolidge, Calvin, 45 corporations/US MNCs, 10, 25–6, 32, 52, 113 business and professional services, 191–2, 292 CEO salaries,184, 321 concentration of, 30, 186, 287 emergence of, 30, 350n22, 351–2n35 in Europe (1960s), 113–5, 378n4, n7 expansion of, 51, 115–6 financialization of, 290 on Fortune 500, 28 and law, 33, 232–3 loss of manufacturing jobs, 185–191, 290–91, 311, 402n122 layoffs, 16, 61, 165, 172, 207, 259–60, 290 mergers and acquisitions, 30, 119, 138, 175–6, 188, 190 nationality of, 345n26 national treatment of foreign, 10, 116 organizational changes (1920s), 50 outsourcing, 189, 287, 290 productivity of (1890s), 29 and profit, 187–8, 283, 289, 292, 306, 310, 329, 337 reconversion after war, 81 shareholder value, 16, 188, 201, 264 and technology, 220, 429n53 too big to fail, 399n80 US global dominance, 289, 379n8 See also finance, profit, foreign direct investment Cox, Robert, 218, 416n.68 Corrigan, Gerald, 181–2, 210 Council of Economic Advisors (CEA), 124–5, 129, 152 , 169, 269 Council on Foreign Relations (CFR), 72, 362–3n4, 364n19, 374n39, 400n94 credit: and Federal Reserve 42–3, 59, 152–3, 322, 325 collapse of, 57, 179–80, 263–4, 312 credit cards, 121, 284 , 286 mortgage, 140, 173–4, 270, 278–9, 311, 329 in Japan, 204, 209, 214 US as global creditor, 45, 48–9 52, 147, 188 See also banks; consumers; debt; finance; mortgages credit default swaps, 176, 306, 315, 439n.48 crisis(es), 2, 17, 21, 133, 181, 278, 327, 335 1870s, 32, 42 1890s, 29 1907, 42–3 1930s, see Depression (Great) 1970s, 14, 16, 19–20, 133–6, 141, 158, 168, 204, 338, 346n37 1990s, 248–50, 282–3, 285 2007–8, 2, 19–21, 298, 300, 302, 306, 310–30, 332 not caused by ‘overaccumulation’ or ‘imbalances’, 311 Argentina, 303–4, 435n15 Asian, 19, 244, 250, 254–61, 269, 277–8, 281–3, 286, 291–2 of dollar (1960s/70s), 13, 123, 128–30, 148, 163, 204 Eurozone, 332, 335 Mexico, 250–4 New York City (1975), 165 as opportunity, 280, 283 S&L (1980s), 173 subprime, 140, 307, 318 Turkey, 303 US management of, 18, 21, 43, 51, 72, 130, 145–6, 153–4, 159–9, 247–68, 302, 312–3, 330, 335–6 See also stock market Cronon, William, 349n16 Crotty, James, 384n12 Cuba, 36, 41,116, 133, 352n49 Cumings, Bruce, 259, 349n17, 363n9 Daimler, 201–2, 405n29 D’Arista, Jane, 386n26 Davis, Mike, 369n66, 411n124 De Cecco, Marcello, 375n52, 380n1 de Gaulle, Charles, 128 debt, 28, 31, 130, 150, 172, 175, 215–7, 237, 239, 243–4, 249, 252, 254–61, 266–8, 277–9, 284–5, 300, 304, 309–311, 314–6, 319, 330–4, 339 and consumers, 192, 269–70, 291, 307–8, 329, 443n100 of corporations, 138–40, 167, 173, 263 expansion since 1970s, 307 New Deal increases, 70 restructured, 279 Poland, 417n81 Russia, 244, 263 Third World, 156, 179 Turkey, 303, 429n47 from WW1, 48–9, 51 Debt Crisis (1980s), 179, 195, 208, 213–9, 239–40, 248–50, 253, 410n102 de la Madrid, Miguel, 215 DeLong, Bradford, 250, 357n20, 358n37 Delors, Jacques, 197–8 democracy, crisis of, 163 Democratic party/administrations, 7, 47, 55–8, 61, 82, 130, 143, 163–6, 171, 252, 270, 282 Deng Xiaoping, 294, 296 Depository Institutions Deregulation and Monetary Control Act (DIDMCA, 1980), 169–70 Depression (Great), 46, 53–9, 301, 312 globalization reversed by, 54 deregulation, 134, 149, 166–9, 178, 236, 241–2, 265–7 as regulation, 170 misleading rhetoric of, 178 derivatives, 149–50, 169, 176, 188, 266, 268, 284–5, 306, 323, 387n47, 400n83, 424n94, 436n17, ‘over the counter’ (OTC), 176, 263, 268–9, 289, 299 See also banks; credit default swaps; CFTC, finance Deutsche Bank, 200–1, 315, 328, 437n35 Dexia, 315 devaluations (currency) , 49, 54, 72, 99, 125, 128–9, 148, 183, 196, 209, 212, 255, 261, 292–3 developing countries (LDCs), 18–21, 40, 116, 155–7, 211–2, 215–6, 219–20, 223, 231–5, 238–40, 248–3, 263, 275–80, 283, 293–5, 299, 309, 326–8, 334, 336–40, 379n16, 409n94 investment in, 244, 249, 285–7 See also Third World, imperialism, expropriation, economic nationalism ‘development of undedevelopment’, 275 Dezalay, Yves, 243 Dicken, Peter, 369n71, 378n52 Dillon, Douglas, 123–4, 383n50 Dobb, Maurice, 357n21 Dodd–Frank Act, 322–4, 327, 441n80 dollar, 12–4, 41–2, 45, 111, 118–9, 124–5, 131, 182–3, 207, 292, 299– 300, 311, 334–5 crisis of (1960s/70a), 13, 123, 128, 130, 148, 163, 204 as global currency, 17, 43, 49, 70–2, 75–6, 152, 326, 334–5 debate over weakness, 292 diffusion of power through, 134, 147, 318 petrodollars, 156, 214, 219, 392n.99 Dooley, Michael, 408n85 Dornbusch, Rudi, 258 dot.com bubble, 301, 305 Dryden, Steve, 390n78 Duisenberg, W.
The End of Growth: Adapting to Our New Economic Reality by Richard Heinberg
3D printing, agricultural Revolution, back-to-the-land, banking crisis, banks create money, Bretton Woods, carbon footprint, Carmen Reinhart, clean water, cloud computing, collateralized debt obligation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, currency peg, David Graeber, David Ricardo: comparative advantage, dematerialisation, demographic dividend, Deng Xiaoping, Elliott wave, en.wikipedia.org, energy transition, falling living standards, financial deregulation, financial innovation, Fractional reserve banking, full employment, Gini coefficient, global village, happiness index / gross national happiness, I think there is a world market for maybe five computers, income inequality, invisible hand, Isaac Newton, Kenneth Rogoff, late fees, money: store of value / unit of account / medium of exchange, mortgage debt, naked short selling, Naomi Klein, Negawatt, new economy, Nixon shock, offshore financial centre, oil shale / tar sands, oil shock, peak oil, Ponzi scheme, post-oil, price stability, private military company, quantitative easing, reserve currency, ride hailing / ride sharing, Ronald Reagan, short selling, special drawing rights, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, too big to fail, trade liberalization, tulip mania, working poor
A period of economic growth and infrastructure development ensued, lasting until the mid-1960s. At this point, Mao appears to have had second thoughts: concerned that further industrialization would create or deepen class divisions, he unleashed the Cultural Revolution, lasting from 1966 to the mid-1970s, when industrial and agricultural output fell. As Mao’s health declined, a vicious power struggle ensued, leading to the reforms of Deng Xiaoping. Economic growth became a higher priority than ever before, and it followed in spectacular fashion from widespread privatization and the application of market principles. “To get rich is glorious,” Communist officials now proclaimed. During the 1950s, ’60s, and ’70s, the Chinese people had worked hard and endured grinding poverty for the good of the nation. But in the 1990s a small segment of the populace — mostly in the coastal cities — began to enjoy a middle-class existence.
barriers to entry, corporate social responsibility, currency peg, Deng Xiaoping, disintermediation, full employment, illegal immigration, new economy, out of africa, price discrimination, unpaid internship, urban planning
China’s showcase cities, Shanghai and Beijing, got most of the press, but when China began to emerge from its dark, isolationist period following the Cultural Revolution, the first steps were taken in the south. Separated from the rest of the country by mountain ranges, South China had already for centuries developed commercial opportunities with traders from afar. And as a result of the province’s proximity to Hong Kong, whose economy remained robust, the region was poised to take off again. So it was no accident that when Deng Xiaoping announced, “to get rich is glorious,” he did so from the southern province of Guangdong, where Guangzhou is located. If releasing so much pent-up entrepreneurial energy was akin to setting the economy on fire, it was near Guangzhou that the match had been struck. In the modern era, Guangzhou was an attractive base for modern traders, if only for the diversity of manufacturers that it provided. 55 P1: OTA/XYZ P2: ABC c06 JWBT075/Midler February 20, 2009 56 8:34 Printer Name: Courier Westford, Westford, MA Poorly Made in China Most factories could be reached by car within 90 minutes from the city.
The Sushi Economy: Globalization and the Making of a Modern Delicacy by Sasha Issenberg
air freight, Akira Okazaki, anti-communist, barriers to entry, Bretton Woods, call centre, Deng Xiaoping, global supply chain, haute cuisine, means of production, Nixon shock, Saturday Night Live, Silicon Valley, special economic zone, telemarketer, trade route, urban renewal
The Chinese, whose legendarily omnivorous appetites had long stopped at raw fish, had started pointing their chopsticks at sushi. PART FOUR The Future Economy Eleven DALIAN, CHINA Port of Call A Japanese mogul plots to take the world’s last sushi frontier Takamasa Ueno, a young sushi chef from northern Japan, made his first trip to China in 1986, when a friend from his hometown of Sendai opened a yakiniku restaurant in Dalian, a highly trafficked port city on the Yellow Sea. When Deng Xiaoping in 1984 designated “coastal open cities,” Dalian—which had served as the commercial and navigational gateway to northeast China under the alternating control of Russia, Japan, and the Soviet Union—was a natural candidate to participate in this effort at economic reform. Five years earlier, Deng had named four “special economic zones” as laboratories for capitalist industry, and then expanded the experiment to fourteen further cities.
autonomous vehicles, blue-collar work, Bonfire of the Vanities, Branko Milanovic, call centre, collective bargaining, computer age, corporate governance, Credit Default Swap, David Ricardo: comparative advantage, Deng Xiaoping, Erik Brynjolfsson, feminist movement, Frank Levy and Richard Murnane: The New Division of Labor, Gini coefficient, income inequality, industrial robot, invisible hand, job automation, Joseph Schumpeter, low skilled workers, lump of labour, manufacturing employment, moral hazard, oil shock, pattern recognition, performance metric, positional goods, post-industrial society, postindustrial economy, purchasing power parity, refrigerator car, rent control, Richard Feynman, Richard Feynman, Ronald Reagan, shareholder value, Silicon Valley, Simon Kuznets, Stephen Hawking, Steve Jobs, The Spirit Level, too big to fail, trickle-down economics, Tyler Cowen: Great Stagnation, union organizing, upwardly mobile, very high income, War on Poverty, We are the 99%, women in the workforce, Works Progress Administration, Yom Kippur War
It was terrible news for everyone else. 6 Offshore I TYPED THIS BOOK ON A LAPTOP THAT was made in China. Just about everything I own was made in China. Just about everything you own was made in China, too. In 1979, when the Great Divergence began, you and I didn’t own anything made in China. With Mao only three years in the grave, China still had a sluggish, centrally planned economy. In that year, the new Chinese leader, Deng Xiaoping, decided enough was enough and inaugurated various market reforms. “Black cat, white cat,” he famously said. “What does it matter what color the cat is as long as it catches mice?” China ended up catching quite a lot of mice. In 1979, China was a net importer, with a trade deficit of $2 billion. Its total exports were about $14 billion. But by 2010, through aggressive capital investment and stunning productivity growth, China managed to achieve a trade surplus of $185 billion and total exports of $1.6 trillion.
Six Degrees: Our Future on a Hotter Planet by Mark Lynas
accounting loophole / creative accounting, Climatic Research Unit, Deng Xiaoping, failed state, ice-free Arctic, nuclear winter, oil shale / tar sands, peak oil, price stability, South China Sea, supervolcano
Global warming is joined by other mounting threats-including population growth, soil loss, fossil aquifer depletion, and the wholesale destruction of ecosystems-each of which has the potential to escalate into a major survival crisis for modern civilisation. Nowhere is this more apparent than in China, which is industrialising at breakneck speed, transforming itself from a largely peasant nation into an economic powerhouse in less than two decades. The country's leaders and population have been heading towards a Chinese-variant hypercapitalism ever since Chairman Mao breathed his last, and the economic reformers led by Deng Xiaoping came to power and quickly declared that ‘to get rich is glorious’. Glorious it may be for the new millionaires who cruise through the glittering canyons of Shanghai and Beijing, flaunting their new prosperity with celebrity-style conspicuous consumption. Glorious it may be too for the tens of millions of ordinary Chinese who no longer live in dire poverty, and own substantial capital for the first time.
affirmative action, Asian financial crisis, bank run, banking crisis, bilateral investment treaty, borderless world, Bretton Woods, British Empire, capital controls, Carmen Reinhart, central bank independence, collective bargaining, colonial rule, Corn Laws, corporate governance, corporate social responsibility, credit crunch, Credit Default Swap, currency manipulation / currency intervention, David Ricardo: comparative advantage, deindustrialization, Deng Xiaoping, Doha Development Round, en.wikipedia.org, eurozone crisis, financial deregulation, financial innovation, floating exchange rates, frictionless, frictionless market, full employment, George Akerlof, guest worker program, Hernando de Soto, immigration reform, income inequality, income per capita, joint-stock company, Kenneth Rogoff, labour market flexibility, labour mobility, land reform, Long Term Capital Management, low skilled workers, margin call, market bubble, market fundamentalism, Martin Wolf, Mexican peso crisis / tequila crisis, microcredit, Monroe Doctrine, moral hazard, night-watchman state, non-tariff barriers, offshore financial centre, oil shock, open borders, open economy, price stability, profit maximization, race to the bottom, regulatory arbitrage, savings glut, Silicon Valley, special drawing rights, special economic zone, The Wealth of Nations by Adam Smith, Thomas L Friedman, Tobin tax, too big to fail, trade liberalization, trade route, transaction costs, tulip mania, Washington Consensus, World Values Survey
China’s experience offers compelling evidence that globalization can be a great boon for poor nations. Yet it also presents the strongest argument against the reigning orthodoxy in globalization—emphasizing financial globalization and deep integration through the WTO. China’s ability t