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My Conversation with Chris Blattman

The very very highly rated but still underrated Chris Blattman was in top form, here is the transcript and audio.  We had a chance to do this one when he was in town for a week.  We talked about the problem with cash transfers, violence, child soldiers, charter cities, Rene Girard, how to do an Africa trip, Battlestar Galactica, why Ethiopia is growing rapidly, why civil war has become less common, why Colombia and the New World have been so violent, the mysteries of Botswana, and Chris’s favorite Australian TV show, among other topics, including of course the Chris Blattman production function.  Here is one excerpt:

BLATTMAN: There’s this famous paper on Vietnam veterans in the US where they find that being conscripted into fighting in Vietnam had positive effects on the wages of blacks and negative effects on the wages of whites. The reason was, it was really down to, what was your alternative labor market and training experience in the absence of this war?

We found something similar in Uganda, something eerily familiar, which is that the women economically weren’t so worse off. I wouldn’t say they were better off, but they weren’t necessarily affected adversely in an economic sense — they were adversely affected in other ways 5 or 10 or 15 years down the road — while the men were.

It spoke to just how terrible women’s options were. Being conscripted and abducted to be a rebel wife, to some degree, wasn’t that different than what your marriage opportunities looked like if there wasn’t a war.

For men, it just meant that you were out of the civilian labor market, getting a bunch of skills that had turned out not to be very useful. It was bad for them. A different war, a different context, and a different labor market, and that can switch.

COWEN: How many northern Ugandan child soldiers have you interviewed?

BLATTMAN: A few hundred. At least a couple hundred, maybe more. It depends if you count someone who’s involved for a month versus two years. Certainly, the long, long-term soldiers who were there for many, many years are few, maybe only a couple dozen.

COWEN: Those contacts, those conversations, how have they changed your outlook on life emotionally, intellectually, otherwise?

And:

COWEN: True or false, most humans are bad at violence?

BLATTMAN: I think they learn quickly. Probably they’re bad at first.

COWEN: In the micro evidence on violence, and the more individual-level evidence, and then finally macro evidence — like will there be a civil war? — do you think there’s ultimately an overarching theory that ties these all together? Or are they just separate levels of investigation, where you have empirical results, and they stand somewhat separate, and they’ll always be distinct areas?

How optimistic are you about a grand unified theory of violence?

BLATTMAN: I think these individual, how I react in the moment, fight-or-flight-type mechanisms are quite distinct from the way that small groups or large groups or nations go to war. But once you get beyond that to the level of small groups and larger groups and nations, I see a lot of unity in the theory.

Do read or listen to the whole thing.  By the way, he says the Canadian political system is overrated.

Ghana fact of the day

After a sluggish period, Ghana seems to be doing well again:

…Ghana is on track to make a remarkable claim for a country mired in poverty not long ago: It is likely to have one of the world’s fastest-growing economies this year, according to the World Bank, the African Development Bank, the International Monetary Fund and the Brookings Institution.

Its projected growth in 2018, between 8.3 and 8.9 percent, might outpace even India, with its booming tech sector, and Ethiopia, which over the last decade has been one of Africa’s fastest-growing economies thanks to expanding agricultural production and coffee exports.

According to the I.M.F.’s projections, only Bhutan, with a minuscule economy, and Libya, whose war-ravaged economy plunged in recent years, may have a higher rate of growth this year.

The danger is that commodities — oil and cocoa — are driving the boom.  Here is more from Tim McDonnell at the NYT.

Tuesday assorted links

1. Learning to love Lagos.  And new copies of the Gospels from the Ethiopian desert.

2. I am pleased to have recently met Melissa Kearney.  And an intervention to increase the number of women in economics.  AEA acts on transparency and gender issues.

3. “…changes in economic conditions account for less than one-tenth of the rise in drug and opioid-involved mortality rates.”

4. Do black politicians matter?

5. Jason Furman on tax reform.  And: “The question I first posed was what to make of a president who is rhetorically unfit yet mainstream in policy.” — from Martin Gurri.  And a superb David Brooks column.

6. Review of Tesla Model 3.  And Christina Cacioppo reviews various books.

Favorite jazz from 2017

Charles Lloyd New Quartet, Passin’ Thru.  If their last few albums were released during the golden age of jazz, they would be revered to this day.

Cecile McLorin Salvant, Dreams and Daggers.  The new Ella Fitzgerald.

Alexandre Tharaud, Hommage a’ Barbara, classical pianist goes the route of French song, wonderful acoustics to these arrangements.

Django Bates, Saluting Sgt. Pepper.  A German (!) big band redoes the whole album, with a semi-comic music hall feel, intricate horn arrangements, works surprisingly well.

Mulatu of Ethiopia, the title says it all.

Runners-up might be Steve Coleman, Nicole Mitchell, Matt Mitchell, Tyshawn Sorey, Craig Taborn, Rez Abbasi, and Vijay Iyer, but I’m not sure I’ll go back to those in the longer run.

A Price is a Signal Wrapped Up in an Incentive

The world’s largest exporter of roses is an Indian firm, Karuturi Global, which has leased 3,000 square kilometers of land in Ethiopia.

I talked today about globalization and the price system using Valentine’s Day and the rose market as a jumping off point. I spoke at the Sarla Anil Modi School of Economics at NMIMS in Mumbai. The students were excellent. Lots of well informed, enthusiastic questions, and debate.

Here is a bit of what I said:

What I’ve been reading about fascism

1. Lucy Hughes-Hallett, The Pike: Gabriele d’Annunzio Poet, Seducer and Preacher of War.  A vivid and entertaining look at a major European fascist who remains neglected by Americans (I don’t even think this book has a U.S. edition).  I was surprised how readable this book was, given its length and subject matter.  The words “rollicking” and “psychopath” come to mind.  He was nonetheless one of the most influential European writers of his time.

2. Stanley G. Payne, A History of Fascism 1914-1945.  One of the classics, readable and comprehensive and one of the best places to start.  One thing I learned from this pile of books is how hard some of those leaders worked to have the mid-level bureaucracy on their side.  The centralization often occurred at higher levels, for instance Mussolini had 72 cabinet meetings in 1933, but only 4 in 1936.  The Italian Fascist party, by the way, was disproportionately Jewish, at least pre-1938.

3. Robert O. Paxton, The Anatomy of Fascism.  Along with Payne, one of the core books to read, stronger on analysis while Payne has more historical detail.  He is especially clear on how the fascists built up and refined their political coalitions over time, and the conflicting roles of party and nation in the history of fascism.

4. R.J.B. Bosworth, Mussolini’s Italy: Life Under the Dictatorship.  I’ve only read parts of this one, but it seems to be the best detailed historical account of a non-Nazi fascist regime.  If you wish to know, for instance, how and why the Italian fascists reformed Italian public holidays, this is your go-to source.

5. Alexander de Grand, Italian Fascism: Its Origin and Development.  Highly focused and to the point, also has an A+ quality annotated bibliography.  It considers regions of Italy, demographic issues, looks at the arts, and for such a short book gives the reader a remarkably broad and multi-faceted perspective.  Overall this book emphasizes how deeply rooted fascism was in so many other Italian institutions and ways of life.

6. I’ve also been reading plenty of Benedetto Croce, including his history of Naples and History, its Theory and Practice.  He is oddly boring and non-concrete, but was a consistent opponent of the Italian fascist regime, except for the first two years of Mussolini’s rule (he later claimed that was for tactical reasons).  In any case, the reader learns that the opposing side doesn’t always have a good ability to articulate why bad events are happening.  I can recommend Fabio Fernando Rizi’s very good history and survey, Benedetto Croce and Italian Fascism.

7. Giorgio Bassani, The Garden of the Finzi-Continis.  This beautiful short novel (also a movie) is especially good on anti-Semitism in Italy, how youth process political collapse in their countries, and how events can outrace your expectations and leave you in a haze.

Some books on Italian futurism are coming in the mail.

Overall I did not conclude that we Americans are careening toward fascist outcomes.  I do not think that notion is well-suited to the great complexity of contemporary bureaucracy, nor to our more feminized and also older societies.  Furthermore, in America democracy has taken much deeper roots and the system of checks and balances, whatever its flaws, has stood for a few hundred years, contra either Italy or Germany in their fascist phases.

Still, I did not find this reading reassuring, as people will support many bad things in politics.  The Italian war in Ethiopian was remarkably popular, but exactly why?  We Americans could (again) do something quite bad, but without being fascists.

Less directly on fascism, but by no means irrelevant to the topic, I can recommend two new books:

Andrzej Franaszek, Milosz: A Biography. Long, thorough, but readable treatment, focusing on more on his poetry than the political writings.

And I have been enjoying my ongoing browse of Robert E. Lerner, Ernst Kantorowicz: A Life.

Best movies of 2016

45 Years, British drama about a creaky marriage.

The Boy & the World.  A Brazilian animated movie, it actually fits the cliche “unlike any movie you’ve seen before.”  Preview here, other links here, good for niños but not only.  Excellent soundtrack by Nana Vasconcelos.

The Second Mother.  A Brazilian comedy of manners about social and economic inequality, as reflected in the relations between a maid, her visiting daughter, and the maid’s employer family.  Now, to my and maybe your ears that sounds like poison, because “X is about inequality” correlates strongly with “X is not very good,” I am sorry to say.  This movie is the exception, subtle throughout, and you can watch and enjoy it from any political point of view.  It helps to know a bit about Brazil, and it takes about twenty minutes for the core plot to get off the ground.  Links here.

Cemetery of Splendor, Thai movie by Apichatpong Weerasethakul, here is a good review.

City of Gold, a documentary with Jonathan Gold doing the ethnic food thing in Los Angeles.

Hunt for the Wilderpeople is an original movie, mostly about race, full of cinematic allusions (LOTR, First Blood, Smash Palace, classic Westerns, Butch Cassidy, Thelma and Louise, so many more) and Kiwi finery as well.  None of the reviews I read seem to get it and I don’t want to send you to any of them.

The Innocents, how did those Polish nuns get pregnant?

Maggie’s Plan, a fun comedy, not at the top of this list but intelligent comedies are a dwindling species.

Hell or High Water

Ixcanul, a Mayan movie from Guatemala, might this story of an unwanted pregnancy be this year’s best movie?  Here is one useful review.

Sausage Party, beyond politically incorrect, I kept on thinking I would get sick of the stupid animation and yet I never did.  I remain surprised they let this one play in mainstream theaters.

Sully.  He should have turned the plane around immediately under any plausible calculus, and he didn’t, so you have to give this movie the Straussian reading.

Weiner is a splendid movie with many subtle points, including in the philosophical direction.  In another life, Huma Abedin could have been a movie star.  She has exactly the right mix of distance and involvement, and she dominates every scene she is in, even when just sitting quietly in the background.  Um…I guess she is a movie star.  Starlet.  Whatever.

Difret, an Ethiopian legal drama.

Andrei Tarkovsky, Ivan’s Childhood (reissue).  This is one of Tarkovsky’s worst movies, and yet one of the best movies in virtually any year.

American Honey

Sky Ladder

The Handmaiden, by Park Chan-wook.  Imperfectly eroticized violence, but beautiful nonetheless.

Arrival

Elle, by Paul Verhoeven.

Nocturnal Animals, by Tom Ford.

The bottom line

My top picks are Ixcanul, American Honey, Hunt for the Wilderpeople, Cemetery of Splendor, and Sky Ladder, with Arrival being the best mainstream Hollywood movie.

Thursday assorted links

1. David Beckworth podcast with Hugh Rockoff — did it take 150 years for the United States to become an optimal currency area?

2. Profile of Yuja Wang.

3. Boise has more Syrian refugees than does New York City (NYT).

4. The explanatory power of marrying up and marrying down, for men vs. women.

5. Bucknell economics professor now leads an Ethiopian rebel army.

6. Speed bumps on the exchanges.

Where is freedom in the world contracting? Advancing?

Contracting:

America, China, Hong Kong, Russia, Ukraine, Austria, Hungary, Poland, Slovakia, Turkey, Syria, Libya, Iraq, Yemen, Kosovo, Afghanistan, Philippines, Venezuela, Nigeria, South Africa, Malaysia, and Brazil, though the latter may be in flux.  Tunisia and Iran are problematic, but arguably hard to call.  Saudi may be headed toward collapse, but I don’t think you can say they are less free just yet.  Ethiopia is losing more political freedom, though still making very real economic progress.

Advancing:

Mexico and Colombia, if only by consolidating previous gains, and still there is a chance of a turnaround in Argentina at some point.  Latvia?  Where else?  You could make a (modest) case for India and some of the smaller African countries.

Neutral:

Japan, South Korea, Canada, and much of Western Europe though many of these cases appear fragile to me.

Overall this is not a thrilling ledger.  I haven’t listed most of the smaller countries, but in the longer run they often follow the lead of their larger neighbors.

File under Not Good.

New edition of Tyler Cowen’s ethnic dining guide

Here is the one file, print it all out version, just revised.  Here is the blog version, which is easier to follow in bits and pieces, looks nicer, works better (thanks to the estimable Chug), and accepts comments.  Here are the links on Twitter.

The old trends were good hamburgers and pizza.  Those haven’t gone away, but the new area trends are Yemeni, Filipino, and more more more Chinese of many different kinds.  Good Mexican is on the way, finally.  Vietnamese and El Salvadoran are fine but stagnant.  Persian is growing, Ethiopian is robust, and will more African be next?  The biggest growth in quality and interest has come in DC (!), not the suburbs, at least this time around.  In Virginia, Chantilly has made the largest gains.

The good news, at least from a culinary point of view, is that the gentrification of northern Virginia — northern and central Arlington excepted — is proceeding at a much slower rate than people might have expected say ten years ago.

A free trade agreement for South Asia?

Are free trade agreements contagious?  The negotiations for TPP seem to be coming to a close, but there is the potential for a much more beneficial arrangement, namely for the subcontinent and thereabouts, can we toss in Ethiopia too?

India has said that all South Asian economies need to speedily work towards a free trade area within the region with a defined time-line, preferably 2020, as the first step towards achieving the joint vision of a South Asian Economic Union.

“I am confident that consensus can be achieved for a defined time-line for 100 per cent tariff liberalisation with special and differential treatment for Least Developed Countries (LDCs) and vulnerable economies,” Commerce & Industry Minister Nirmala Sitharaman said at the South Asia Economic Conclave organised by the Commerce Ministry and industry body CII on Tuesday.

While India has already allowed duty-free access to goods from LDC countries of South Asia as part of the South Asia Free Trade Agreement (SAFTA), it is ready to go to 100 per cent for non-LDCs, too, as per the Safta roadmap agreed by India with Pakistan in November 2012, Sitharaman said.

At least four of the eight SAARC countries — which include India, Pakistan, Sri Lanka, Maldives, Nepal, Bhutan, Bangladesh and Afghanistan — are looking at a free trade area by 2020. India is willing to take asymmetric responsibility towards achieving the goal, she added.

The full story is here.

Left-wing critique of effective altruism

I very much enjoyed the new LRB piece by Amia Srinivasan.  Here is a good “standing on one foot” statement of what effective altruism recommends:

The results of all this number-crunching are sometimes satisfyingly counterintuitive. Deworming has better educational outcomes among Kenyan schoolchildren than increasing the numbers of textbooks or teachers. If you want to improve animal welfare, it’s better to stop eating eggs than beef, since caged layer hens live worse lives than farmed cows, and because eating eggs consumes more animals than eating beef: the average American consumes 0.8 layer hens but only 0.1 beef cows per year. Buying Fairtrade goods can be worse than buying regular goods, since the extra cost goes mostly to middlemen rather than farmers, and when it doesn’t, it benefits farmers in relatively rich countries: because Fairtrade standards are hard to meet, most Fairtrade coffee production comes from Mexico and Costa Rica rather than, say, Ethiopia, where the marginal pound would go much further. The green value of buying locally grown food is overblown, too, since transport accounts for only 10 per cent of the carbon footprint of food, while 80 per cent of it is generated in production; tomatoes grown in the UK can have five times the carbon footprint of tomatoes shipped from Spain because of the energy required to hothouse them. If you’re really committed to minimising your carbon footprint, MacAskill recommends donating to the carbon offsetting charity Cool Earth; he estimates that the average American could offset all his carbon emissions by donating $105 a year. There isn’t much point in unplugging your electricals, either: leaving your mobile phone charger plugged in for a whole year contributes less to your carbon footprint than one hot bath.

And here is part of the critique:

MacAskill is evidently comfortable with ways of talking that are familiar from the exponents of global capitalism: the will to quantify, the essential comparability of all goods and all evils, the obsession with productivity and efficiency, the conviction that there is a happy convergence between self-interest and morality, the seeming confidence that there is no crisis whose solution is beyond the ingenuity of man. He repeatedly talks about philanthropy as a deal too good to pass up: ‘It’s like a 99 per cent off sale, or buy one, get 99 free. It might be the most amazing deal you’ll see in your life.’ There is a seemingly unanswerable logic, at once natural and magical, simple and totalising, to both global capitalism and effective altruism. That he speaks in the proprietary language of the illness – global inequality – whose symptoms he proposes to mop up is an irony on which he doesn’t comment. Perhaps he senses that his potential followers – privileged, ambitious millennials – don’t want to hear about the iniquities of the system that has shaped their worldview. Or perhaps he thinks there’s no irony here at all: capitalism, as always, produces the means of its own correction, and effective altruism is just the latest instance.

Not my view, but well written as a piece and definitely recommended.  Here is comment from Scott Alexander.

Do financial crises lie in Africa’s future?

From the FT:

The likes of Zambia, Ethiopia, Rwanda, Kenya, Ghana, Senegal, and Ivory Coast have all issued foreign currency dominated sovereign bonds in recent years.

Ghana is one African nation with a history of debt crises (pdf), and also dating back to the 1980s (pdf).  Tanzania was another offender, both current and past (pdf), and for a while a lot of lending to Africa dried up and that limited the number of possible debt crises.  But now…?

Here is Amadou Sy at Brookings, telling us it is not yet time to worry.  Here is the African Development Bank worrying a bit more than that:

Today, a third of African countries have debt to GDP ratios in excess of 40 percent. The outstanding sovereign debt for Africa as a whole increased 2.6 times between 2009Q2 and 2015Q2. In contrast, total debt in developing countries rose 2.3 times over the same period. The appreciation of the dollar has raised the nominal currency values of dollar denominated debts. Thus Africa’s outstanding bond debt is already 29 percent higher today in real terms than it would have been had the dollar remained at its March 2011 level…

Here is Andrew England at the FT:

A recent note by Fathom Consulting highlighted a 40 per cent year-on-year dip in Chinese imports from Africa for July. Martyn Davies, chief executive of Frontier Advisory, a group that specialises in Africa-China investment, says there is anecdotal evidence of an easing in Chinese activity on the continent. “The hurdle rates of Chinese sovereign wealth investment, or part sovereign wealth fund invested projects in Africa have been raised so the capital is more discerning and seeks greater profitability,” he says.

Here is my previous post on which countries are most likely to experience the next financial crises.

Does Fair Trade Help Poor Workers?

Does Fair Trade help poor workers? Probably not says Don Boudreaux in this excellent, short video from the Everyday Economics series at Marginal Revolution University.

As is well known, however, Don is a rabid, free-market economist with ideological blinders who has been captured by corporate interests. So let’s ignore what Don says and consider what William MacAskill, author of Doing Good Better (reviewed earlier this week) has to say. No one can fault MacAskill’s charitable bona-fides:

MacAskill’s own pledge is to donate everything he earns above about $35,000 per year, adjusted using standard economic measures for inflation and cost of living, to the organizations that he believes will do the most good. Since his bar is roughly at the UK median income—such that half the population earns more each year, and half the population earns less—he’s certainly not condemning himself to a life of hardship; rather, he is pre-committing to staying roughly in the middle of the national income distribution even as his earnings go up over time.

That said, his pledge means giving away 60 percent of his expected lifetime earnings.

When I ask him the inevitable questions about whether this isn’t rather a lot to sacrifice for one person, MacAskill shrugs modestly and smiles broadly. “Imagine you’re walking down the street and see a building on fire,” he says. “You run in, kick the door down—smoke billowing—you run in and save a young child. That would be a pretty amazing day in your life: That’s a day that would stay with you forever. Who wouldn’t want to have that experience? But the most effective charities can save a life for $4,000, so many of us are lucky enough that we can save a life every year through our donations. When you’re able to achieve so much at such low cost to yourself…why wouldn’t you do that? The only reason not to is that you’re stuck in the status quo, where giving away so much of your income seems a little bit odd.”

So what are MacAskill’s views on Fair Trade? Why they are the same as Don’s!

…when you buy fair-trade, you usually aren’t giving money to the poorest people in the world. Fairtrade standards are difficult to meet, which means that those in the poorest countries typically can’t afford to get Fairtrade certification. For example, the majority of fair-trade coffee production comes from comparatively rich countries like Mexico and Costa Rica, which are ten times richer than the very poorest countries like Ethiopia.

….In buying Fairtrade products, you’re at best giving very small amounts of money to people in comparatively well-off countries. You’d do considerably more good by buying cheaper goods and donating the money you save to one of the most cost-effective charities…