Why Government Fails So Often: Or, the Skeptics Are Winning

7-17 SchuckAccording to The New York Times‘s David Leonhardt, the United States federal government gets an honorable mention when it comes to reform, innovation, and protection – but it’s not quite enough. In a recent op-ed for “The Upshot,” the paper’s politics and policy blog, Leonhardt pays due diligence to the large-scale achievements of the United States: dismantling totalitarian governments, putting men on the moon, and the invention of the Internet among them. And yet, despite our big picture success stories, we continue to stumble in the day-to-day.

Leonhardt references Yale Law professor and Princeton University Press author Peter Schuck’s latest book, Why Government Fails So Often: And How It Can Do Better in evaluating the current role of the federal government and the extent to which its activity is productive and beneficial, particularly when it comes to the siphoning of federal funds.


“When the federal government is good, it’s very, very good. When it’s bad (or at least deeply inefficient), it’s the norm.”


Soon, however, we might start to see some returns on our investments. The growing popularity of programs that are funded based on their initial success suggests a growing demand for tangible results, to see where our money is going and to ensure that we’re not wasting it.  These programs “span child care, job training and juvenile recidivism,” and are sometimes known as “pay for success,” wherein controlled trials are set up to determine the effect of such projects. And really, that’s the only way to know if something works. Professor Schuck is right to re-evaluate the cost-effectiveness of these initiatives, and with any luck, the government will start to fail just a little less.

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Peter H. Schuck is the author of:

7-17 Government Why Government Fails So Often: And How It Can Do Better by Peter H. Schuck
Hardcover | 2014 | $27.95 / £19.95 | ISBN: 9780691161624
488 pp. | 6 x 9 | eBook | ISBN: 9781400850044 | Reviews  Table of Contents   Chapter 1[PDF]

Congratulations Martin Ruhs, Winner of the 2014 Best Book Award for the Migration and Citizenship Section of the American Political Science Association

Martin RuhsThe Migration and Citizenship Section of the American Political Science Association has named Martin Ruhs’s The Price of Rights: Regulating International Labor Migration  the winner of the 2014 Best Book Award in the Migration and Citizenship category. The judging committee lauded Ruhs for his “innovative, rigorous, and very comprehensive treatment of the subject of international labor migration” saying additionally that his “command of knowledge and research skills demonstrates the best practices of scholarship.”

Martin Ruhs is an Associate Professor of Political Economy at the Oxford University Department for Continuing Education and a Senior Researcher at COMPAS. He is also an Associate Member of the Department of Economics, the Department of Social Policy and Intervention and the Blavatnik School of Government. Ruhs’s research focuses on the economics and politics of international labor migration within an internationally comparative framework, which he draws on to comment on migration issues in the media and to provide policy analysis and advice for various national governments and institutions.

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Martin Ruhs is the author of:

The Price of Rights The Price of Rights: Regulating International Labor Migration by Martin Ruhs
Hardcover | 2013 | $35.00 / £24.95 | ISBN: 9780691132914
272 pp. | 6 x 9 | 13 line illus. 16 tables. |eBook | ISBN: 9781400848607 | Reviews Table of Contents Chapter 1[PDF]

Untranslatable Tuesdays – Economy

economy

To mark the publication of Dictionary of Untranslatables: A Philosophical Lexicon, we are delighted to share a series of playful graphics by our design team which illustrate some of the most interesting terms from the Dictionary. For this, the final week in our “Untranslatable Tuesdays” series, we present Economy:

FRENCH     économie

GERMAN    Wirtschaft

We hope you have enjoyed “Untranslatable Tuesdays”!

 

Butting Heads (and iPhones): Economists Robert Gordon and Joel Mokyr Duke it Out in the Wall Street Journal

Photo Credit: WSJ.comNorthwestern Professors of Economics Robert Gordon and Joel Mokyr just can’t seem to get along.

In this past weekend’s edition of The Wall Street Journal, the two voice some distinctly adverse ideas about technological innovation in the twenty-first century – on the one hand, its success, and on the other, its stagnation.

Professor Mokyr, author of The Gifts of Athena: Historical Origins of the Knowledge Economy and co-author of The Invention of Enterprise: Entrepreneurship from Ancient Mesopotamia to Modern Times is an economic historian who’s altogether positive about the economic direction of the world-at-large. But this isn’t just blind optimism; in fact, it’s due in large part to the rapid rate of technological innovation. Mokyr notes that “new tools have led to economic breakthroughs,” and that since the field of technology is vast and unremitting, we’re hardly in danger of economic collapse.


“The divergent views are more than academic. For many Americans, the recession left behind the scars of lost jobs, lower wages and depressed home prices. The question is whether tough times are here for good. The answer depends on who you ask.”


But Professor Gordon, a macroeconomist and author of the forthcoming book Beyond the Rainbow: The American Standard of Living Since the Civil War (Princeton), and of the best-selling textbook, Macroeconomics, is hugely skeptical of such theories. He asks us to compare useful and revolutionary objects, like the flushing toilet, to the newest iPad; the former, already invented, is indispensable. Everything created thereafter is simply excess – the cherry on top, if you will. And, as new developments become only incrementally more advanced than their predecessors, technological progress will slowly grind to an anticlimactic halt.

The op-ed also gives some interesting background on both Gordon and Mokyr and tries to posit the origins of their respective beliefs, whether positive or negative. Despite their conflicts, the two can concede to one point: that the twenty-first century is unarguably the best time to be born, and the revelation is certainly an encouraging one.

Could India save Twitter? Misiek Piskorski discusses the future of social media with Yahoo! Finance

Harvard Business professor Misiek Piskorski is making the media rounds in New York to promote the publication of A Social Strategy: How We Profit from Social Media. Here, with Yahoo! Finance, he discusses why Twitter needs to make a big play in India if it wants to stay relevant and competitive with other social media platforms like Facebook and Alibaba.

And here he discusses social media and the growth of Uber on Bloomberg TV:

 

bookjacket A Social Strategy: How We Profit from Social Media
Mikolaj Jan Piskorski

Hardcover | 2014 | $29.95 / £19.95 | ISBN: 9780691153391
288 pp. | 6 x 9 | 2 halftones. 13 line illus. 9 tables.eBook | ISBN: 9781400850020 |

Reviews
Table of Contents

Sample the book:
Preface[PDF] pdf-icon
Chapter 1[PDF] pdf-icon

Ian Goldin explains “The Butterfly Defect”

Ian Goldin is director of the Oxford Martin School and professor of globalization and development at the University of Oxford. He has served as vice president of the World Bank and an advisor to President Nelson Mandela. His many books include Divided Nations, Globalization for Development, and Exceptional People (Princeton). His most recent book is The Butterfly Defect: How Globalization Creates Systemic Risks, and What to Do about It, co-authored with Mike Mariathasan, which you can sample for free here [PDF].

 

bookjacket The Butterfly Defect
How Globalization Creates Systemic Risks, and What to Do about It
Ian Goldin & Mike Mariathasan

Princeton at Hay Festival


Hay on Monday evening
Blackburn at Hay
Simon Blackburn talks to Rosie Boycott
Mitton at Hay
Jacqueline Mitton broadens our knowledge of the solar system
Bethencourt at Hay
Francisco Bethencourt discusses “Racisms”

Last week was an important week in the British literary calendar–the week of Hay Festival! Set in beautiful Hay-on-Wye on the Welsh Borders, and running since 1988, the festival attracts thousands of book and culture enthusiasts from around the world every year. This year’s line-up was as strong as ever: with names such as Toni Morrison, Richard Dawkins, Stephen Fry, Mervin King, Jeremy Paxman, Simon Schama, Sebastian Faulks, William Dalrymple, Benedict Cumberbatch, Bear Grylls, Max Hastings, Rob Brydon, Bill Bailey and Dame Judi Dench (to name but a few to catch my eye in the jam-packed programme), 2014′s Festival could not fail to enthrall and delight anyone who walked its muddy paths.

And of course, Princeton University Press authors have been gracing the Hay stages this year, with a variety of wonderful events. From Diane Coyle, explaining GDP to us in plain English (and lo0king very stylish in her Hay wellies) to Michael Wood (translator of Dictionary of Untranslatables) discussing words that defy easy–or any–translation from one language and culture to another, to Ian Goldin’s talk about globalization and risk (The Butterfly Defect), last weekend got off to a great start.

Then, earlier in the week, Jacqueline Mitton (author of From Dust to Life) took a gripped audience on a journey through the history of our solar system in her “John Maddox Lecture”.  On Tuesday, Rosie Boycott spoke to Simon Blackburn about his book Mirror, Mirror–a fascinating conversation which covered everything from psychopathic tendencies displayed in senior management to whether Facebook is really that damaging to the young. Francisco Bethencourt, meanwhile, managed to squeeze a history of racisms into an hour and gave us lots to ponder.

If all this leaves you wishing you’d been there, there is still more to envy! Later in the week, Roger Scruton, Will Gompertz and others discussed the value of a Fine Art degree – does contemporary art celebrate concept without skill? On a parallel stage, renowned historian Averil Cameron (author of Byzantine Matters) convinced us that an understanding of the Byzantine era is just as important as studying, say, Rome or Greece. Finally, Michael Scott (author of Delphi), whom it is almost impossible to miss on the BBC these days, delivered a talk about Delphi: A History of the Center of the Ancient World on Friday.

Whether you swoon for science are potty for poetry, whether you want to dance the night away in a frenzy of jazz or are hoping to meet your favourite on-screen star, Hay Festival offers something new and exciting every year.

Quick Questions for Ignacio Palacios-Huerta, author of Beautiful Game Theory: How Soccer Can Help Economics

5-28 Palacios-HuertaIgnacio Palacios-Huerta is professor of management, economics, and strategy at the London School of Economics and Political Science. He received a B.Sc. in Economics from the University of the Basque Country in Bilbao, Spain, and an M.A. in Economics from the University of Chicago, where he also completed his Ph.D. in Economics. Palacios-Huerta is also the Head of Talent Identification at the Athletic Club de Bilbao and is a Senior Fellow at the Ikerbasque-Basque Foundation for Science at UPV/EVU.

Dr. Palacios-Huerta is a contributing editor of In 100 Years (MIT), an engaging text that draws on the expertise and imagination of ten prominent economists to “present their ideas about the world of the twenty-second century,” considering topics like “the transformation of work and wages, the continuing increase in inequality, and the economic rise of China and India,” among others. He continues to produce scholarship on economic theory and has several articles, like “Consumer Inertia, Choice Dependence and Learning from Experience in a Repeated Decision Problem” (Review of Economics and Statistics), up for publication in 2014.

Now, on to the questions!

PUP: What do you think is the book’s most important contribution?
Ignacio Palacios-Huerta: In recent decades, economics has extended across many fields and areas previously considered to belong to sociology, political science, psychology, and several other sciences. What distinguishes this book is that its basic idea is just the opposite: it is not what economics can do for area or field X, but what X can do for economics. And so it takes exactly the opposite route. In the book X is, of course, soccer. And the idea is to attempt to obtain and present novel insights into human behavior using data and settings from soccer. This is what distinguishes this book from other economics books and from other books on the study of sports, and I think it is its most important contribution. After all, if the economic approach is applicable to all human behavior, then any type of data about human activity is useful to evaluate economic theories.

What is the biggest misunderstanding that people have about what you do? (I.e., is it anthropology? Economics? etc.)
I think this picture (taken from N. Gregory Mankiw’s blog) captures quite well a number of misunderstandings:

What+Economits+Do[1]

What are you reading right now?
A novel by Ramiro Pinilla, Aquella Edad Inolvidable, a biography of British graffiti artist Banksy by Will Ellsworth-Jones, and Seven Deadly Sins: My Pursuit of Lance Armstrong by David Walsh.

What was the most influential book you’ve read?
I would say, for different reasons, these three books are tied in first place:

Economic Theory by Gary S. Becker; A Treatise of Human Nature by David Hume; and The Passions and the Interests by Albert Hirschman (Princeton).

Describe your writing process. How long did it take you to finish your book? Where do you write?
The actual writing took me around 4-5 months, but I was thinking about it for a long time, probably around 3-4 years, collecting data, developing experiments, running the different empirical tests, and reading and keeping relevant stories and anecdotes in my mind to make the book as engaging as possible.

What was the biggest challenge involved with bringing this book to life?
Lack of time: time to think, and time to work and write.


“The idea is to attempt to obtain and present novel insights into human behavior and data settings from soccer. [...] I am interested in pushing the economic approach to human behavior.”


Why did you write this book?
Two reasons. First, as indicated in the first question, there is a clear aspect that distinguishes this book from other economics books and from other books on the study of sports. To the best of my knowledge this is the first book that takes this novel approach, and so I felt that, from this perspective, there was a genuine chance to present a unique contribution. Second, I am interested in pushing the economic approach to human behavior. And so, if any type of data about human activity is useful to evaluate economic theories, what could possibly be most appealing to a wide audience than data from sports, and in particular data from the world’s most popular sport?

Who do you see as the audience for this book?
Anyone interested in economics, anyone interested in sports, and anyone who thinks that he or she might perhaps become interested in economics and/or in sports, especially if he or she has a curious or scientific mind.

How did you come up with the title or jacket?
The title was a suggestion by the initial editor of the book at Princeton University Press, Richard Baggaley, and by my colleague at the London School of Economics, David De Meza. They both, independently of each other, had the same suggestion. And as soon as they suggested this title, I thought it was great. I really liked it and instinctively knew that it would be the title of the book.

With respect to the jacket, it was a suggestion by an excellent designer at Princeton University Press. I suggested some ideas, and one of them was distantly related to the one in the final jacket since it contained a “bicycle kick.” But the jacket is more striking and spectacular than anything I could have come up with. I really like it.

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Ignacio is the author of:

5-28 Palacios-Huerta BGT Beautiful Game Theory: How Soccer Can Help Economics by Ignacio Palacios-Huerta
Hardcover | 2014 | $35.00 / £24.95 | ISBN: 9780691144023
224 pp. | 6 x 9 | 30 line illus.| eBook | ISBN: 9781400850310 |Reviews Table of Contents Introduction[PDF]

Watch Anat Admati’s entertaining TEDx talk “Seeing Through THE BANKERS’ NEW CLOTHES” at Stanford

Banking critic and Stanford finance prof Anat Admati recently gave a talk at TEDx Stanford titled “Seeing through THE BANKERS’ NEW CLOTHES,” based on her bestselling book, with Martin Hellwig, THE BANKERS’ NEW CLOTHES: What’s Wrong with Banking and What to Do about It. Check it out below.

Ian Goldin stopped by the USA Today offices to chat about his latest book THE BUTTERFLY DEFECT on video

Ian Goldin, director of the Oxford Martin School and professor of globalization and development at the University of Oxford, recently stopped by the USA Today offices to discuss his latest book THE BUTTERFLY DEFECT: How Globalization Creates Systemic Risks, and What to Do about It with editor-in-chief David Callaway. Check out their entertaining discussion below.

Watch Peter Schuck discuss his new book WHY GOVERNMENT FAILS SO OFTEN on The Daily Show — Extended Interview Part 1

Quick Questions for Ian Goldin, author of The Butterfly Defect

Goldin_Butterfly_au photoIan Goldin is Professor of Globalisation and Development and Director of the Oxford Martin School at the University of Oxford.  He has published 19 books, the most recent of which is The Butterfly Defect: How Globalization Creates Systemic Risks, and What to Do about It. Andy Haldane of the Bank of England describes globalization as, “the girl with the curl,” because “when it is good, it is very, very good, but when it is bad it is awful.” He praises The Butterfly Defect as an explanation of “why this opportunity-cum-threat calls for a radical new approach to the setting of public policy–an approach which to be successful needs to be every bit as hyperconnected as the world it is operating in.”

Now, on to the questions!

Why did you write The Butterfly Defect?

I wrote The Butterfly Defect, together with Mike Mariathasan, as I believe that globalization, by which I mean the growing openness and integration of societies, is a force for immense good. But, it also causes great harm. Unless we are able to mitigate the negative factors and harvest the positive elements more effectively, it will lead to growing instability and disastrous outcomes.


The financial crisis was the first of a new type of systemic crisis which will characterise the 21st century.


This is the last of my series of four books on globalization. The previous three identified the factors that could lead to better management and policies (Globalization for Development: Meeting New Challenges; Exceptional People: How migration shaped our world and will define our future; and Divided Nations: Why global governance is failing, and what we can do about it). The Butterfly Defect focuses on the systemic risks being generated by globalization. These threaten to unravel the progress made to date and lead to the rejection of integration and globalization. Rising protectionism, zenophobia, nationalism and other symptoms of the desire to reduce interdependence are manifestations of the concerns that citizens and politicians have that globalization is not working and that the risks associated with integration outweigh the benefits. The book identifies ways to manage and mitigate the risks.

What was the most interesting thing you learned from writing this book?

The financial crisis represents a watershed in history. It is the first of a new type of systemic crisis which will characterise the 21st century. The four key failures which gave rise to the crisis are present in many other areas. Unless we can manage the new forms of systemic risk more effectively it will lead to growing global instability. Although the rising threat posed by pandemics, cyber attacks, widening inequality and political fracturing, environmental collapse and climate change, infrastructure weaknesses and supply chain disruptions and other systemic risks appear unrelated, they have the same underlying causes and solutions. These are:  accelerating integration and interdependency as a result of economic and political opening and new technological platforms; growing complexity and an inability to discern cause and effect in the blizzard of big data; technological revolutions leaping ahead of evolutionary institutional reforms; and, the growing gap between local management by divided nations of global and regional processes and systems.

What do you think is the book’s most important contribution?


Globalization has been the most powerful force for improvements in living standards, but it has also unleashed dangerous and potentially destabilising forces.


The book is the first to identify systemic risks as being an endemic feature of globalization.  It stresses that globalization has been the most powerful force for improvements in living standards around the world, but the engine of progress has also unleashed dangerous and potentially destabilising forces which could not only arrest the progress made, but lead to instability and reversals.  The book provides perspectives on how we can manage growing integration and complexity. It is unique in the breadth and depth of its analysis. It builds a bridge between the cutting edge of academic knowledge and the worlds of business and policy.

Who is the audience?

The book has been written for the widest possible audience.  It is rooted in scholarly research and provides a great deal of evidence and analysis of the theory.  However, the language is accessible and I have worked hard to reduce jargon and avoid equations and writing that cannot be widely understood.  My aim has been to write a book that will be by students, business people, policy makers and anyone concerned with a sustainable future for our planet.

How did you come up with the title, The Butterfly Defect: How Globalization Creates Systemic Risks, and What to Do about It?

The title arose in a discussion with a student at Oxford who was engaged as a research assistant for the book. It is a play on the concept of the butterfly effect, which is well known in complexity theory and physics, with the replacement of ‘effect’ by ‘defect’ seeking to highlight the risks associated with a highly interconnected world.  The subtitle tells readers what the book is about and highlights the fact that The Butterfly Defect goes beyond identifying the issues to provide practical lessons and tools to manage the systemic risks which globalization creates.

 


 Ian is the author of:

bookjacket The Butterfly Defect: How Globalization Creates Systemic Risks, and What to Do about It
Ian Goldin & Mike Mariathasan

Hardcover | $35.00 / £24.95 | ISBN: 9780691154701
320 pp. | 6 x 9 | 45 line illus. 5 tables.

eBook | ISBN: 9781400850204

Reviews

Table of Contents

Sample the Introduction[PDF]