If the Asian Growth Model is not Working Anymore

In 1981 poverty rate in China was 64% of the population, in 2004 the rate was 10%: it means that 500 million people stepped out of poverty (look here and here). China and South-East Asia economies were propelled by export demand and by someone else’s debt. What now? In the words of FT columnist Michael Pettis

The assumption that implicitly underlay the Asian development model – that US households had an infinite ability to borrow and spend – has been shown to be false. This spells the end of this model as an engine of growth.

It seams like bad news for economists pointing at free trade and export-led growth as a practical receipt for development.  It seams like bad news for everybody. People in developing countries need to increase their income, and it is difficult to think how they could find the money in their neighborhoods.

Tuesday, 19 May 2009

Economic Gains Do Not Mean Political Gains

In this post Dani Rodrik explains why trade theories suggest that the U.S. should liberalize trade for agricultural products (especially cotton and sugar) and abolish visa restrictions on on highly-skilled foreign workers. This will produce gains for the U.S. society as a whole and probably for the poorest part of the world population, that happens to be made up of farmers. (Of course India will probably see some of its engineers flee the country, but that is not exactly a win-win game).

But countries are not ruled by trade theories. Usually they are ruled by people seeking to keep power as long as possible. And sometimes people rely on minority groups within their society to keep themselves in power.  Have a look at this paper, “The Diminishing Effect of Democracy in Diverse Societies” by Gilat Levy and Oriana Bandiera (London School of Economics and Political Science). Indeed, this can explain why western Europe heavily defends its farmers (4-5% of the population) sacrificing the common good.

An interesting theory should consider not how much a single group benefit or not from trade liberalization but how much influence the group affected by the new policy has on the decision making process. A reduction of trade barriers can help to tackle chronic poverty (have a look at the “Industrial Development Report” by the United Nations Industrial Development Organization). But barriers are not where they are because governments think they are irrational from a political (not economic) point of view.

Wednesday, 13 May 2009

The Dirt Floats

The Kosovo Liberation Army (Albanian acronym UÇK) supposedly run, during the conflict of 1999, torture camps in northern Albania. According to an investigation conducted by Altin Raxhimi, Michael Montgomery and Vladimir Karaj and published (here) by the Balkan Investigative Journalism Network at least 18 people were killed in one of those, a factory compound in Kukës, Albania. Eyewitnesses say prisoner were mainly alleged Kosovo Albanian collaborationist. But as well Serbs and Roma were held in the camp.  And women.

Kosovo’s Prime Minister, Hashim Thaçi, who was then the political director of the KLA, and Agim Çeku, former Prime Minister and former chief of the KLA headquarters, told the BBC they were not aware of any KLA prisons where captives were abused or where civilians were held.

The same sources that witnessed the base in Kukës, told us that the interrogators in Kukës were KLA officers who had been involved in the capture of suspected collaborators.
Both our sources concerning the base, identified several KLA officers involved in the abuses at
Kukës.
One of them is currently in a top position in the judicial system in Kosovo.

After ten years, the history of the ex-Yugoslavia conflicts (so far mainly written by journalists) is still incomplete. Because the people who fought those wars are now ruling that very same land (nationalism is still an effective language to speak). And because the Balkans are the very same mirror and unconscious of Europe (Rada Iveković, 1999). The 1990s wars tell Europe where its own states are coming from: murders and  deportations. And Dorian does not like portraits.

Monday, 11 May 2009

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RSS r-bloggers.com

  • COVID-19 shiny / plotly dashboard
    Governments and COVID-19: Which one stops it faster, better, has fewer people dying? These questions get answered with my dashboard. A contribution to the shiny-contest: https://community.rstudio.com/t/material-design-corona-covid-19-dashboard-2020-shiny-contest-submission/59690 Intro How did Corona spread? Using the animation feature of R-shiny this can be easily tracked.COVID-19 is the major topic in all news channels. The place I live in […]
  • RcppSimdJson 0.0.4: Even Faster Upstream!
    A new (upstream) simdjson release was announced by Daniel Lemire earlier this week, and my Twitter mentions have been running red-hot ever since as he was kind enough to tag me. Do look at that blog post, there is some impressive work in there. We wr...
  • C is for coalesce
    For the letter C, we'll talk about the coalesce function. If you're familiar with SQL, you may have seen this function before. It combines two or more variables into a single column, and is a way to deal with missing data. When you give it a list of va...
  • Introductory videos for Explanatory Model Analysis with R
    Remote teaching at my university encouraged me to prepare some video materials for Explanatory Model Analysis techniques, i.e. techniques of exploration, explanation and visualisation of predictive models.The pyramid for Explanatory Model Analysis. Lef...
  • Custom Power BI visual for Line chart with two Y-Axis
    Power BI support certain type of visuals that are by default available in the document. These are absolutely great and work perfectly fine, have a lot of capabilities to set properties and change the settings. But every so often in…Read more ›

RSS Simply Statistics

  • Is Artificial Intelligence Revolutionizing Environmental Health?
    NOTE: This post was written by Kevin Elliott, Michigan State University; Nicole Kleinstreuer, National Institutes of Health; Patrick McMullen, ScitoVation; Gary Miller, Columbia University; Bhramar Mukherjee, University of Michigan; Roger D. Peng, Johns Hopkins University; Melissa Perry, The George Washington University; Reza Rasoulpour, Corteva Agriscience, and Elizabeth Boyle, National Academies of Sciences, Engineering, and Medicine. […]
  • You can replicate almost any plot with R
    Although R is great for quickly turning data into plots, it is not widely used for making publication ready figures. But, with enough tinkering you can make almost any plot in R. For examples check out the flowingdata blog or the Fundamentals of Data Visualization book. Here I show five charts from the lay press […]
  • So You Want to Start a Podcast
    Podcasting has gotten quite a bit easier over the past 10 years, due in part to improvements to hardware and software. I wrote about both how I edit and record both of my podcasts about 2 years ago and, while not much has changed since then, I thought it might be helpful if I organized […]

RSS Statistical Modeling, Causal Inference, and Social Science

  • Noise-mining as standard practice in social science
    The following example is interesting, not because it is particularly noteworthy but rather because it represents business as usual in much of social science: researchers trying their best, but hopelessly foiled by their use of crude psychological theories and cruder statistics, along with patterns of publication and publicity that motivate the selection and interpretation of […]
  • Conference on Mister P online tomorrow and Saturday, 3-4 Apr 2020
    We have a conference on multilevel regression and poststratification (MRP) this Friday and Saturday, organized by Lauren Kennedy, Yajuan Si, and me. The conference was originally scheduled to be at Columbia but now it is online. Here is the information. If you want to join the conference, you must register for it ahead of time; […]
  • More coronavirus research: Using Stan to fit differential equation models in epidemiology
    Seth Flaxman and others at Imperial College London are using Stan to model coronavirus progression; see here (and I’ve heard they plan to fix the horrible graphs!) and this Github page. They also pointed us to this article from December 2019, Contemporary statistical inference for infectious disease models using Stan, by Anastasia Chatzilena et al. […]