A leading economist trains a lens on his own discipline to uncover when it fails and when it works.
In the wake of the financial crisis and the Great Recession, economic science seems anything but. In this sharp, masterfully argued book, Dani Rodrik, a leading critic from within the science, renders a surprisingly upbeat judgment on economics. Sifting through the failings of the discipline, he homes in on its greatest strength: its many—and often contradictory—explanatory frameworks.
Drawing on the history of the field and his deep experience as a practitioner, Rodrik insists that economic activity defies universal laws. But when economists embrace their expertise as a set of tools, not as a grand unified theory, they can improve the world. From successful antipoverty programs in Mexico to growth strategies in Africa and intelligent remedies for domestic inequality, Rodrik highlights the profound positive influence of economics properly applied.
At once a forceful critique and a defense of the discipline, Economics Rules charts a path toward a more humble but more effective science.
Substantial progress in the fight against extreme poverty was made in the last two decades. But the slowdown in global economic growth and significant increases in income inequality in many developed and developing countries raise serious concerns about the continuation of this trend into the 21st century. The time has come to seriously think about how improvements in official global governance, coupled with and reinforced by rising activism of 'global citizens' can lead to welfare-enhancing and more equitable results for global citizens through better national and international policies.
This book examines the factors that are most likely to facilitate the process of beneficial economic growth in low-, middle-, and high-income countries. It examines past, present, and future economic growth; demographic changes; the hyperglobalization of trade; the effect of finance on growth; climate change and resource depletion; and the sense of global citizenship and the need for global governance in order to draw longer-term implications, identify policy options for improving the lives of average citizens around the world, and make the case for the need to confront new challenges with truly global policy responses. The book documents how demographic changes, convergence, and competition are likely to bring about massive shifts in the sectoral and geographical composition of global output and employment, as the center of gravity of the global economy moves toward Asia and emerging economies elsewhere. It shows that the legacies of the 2008-09 crisis-high unemployment levels, massive excess capacities, and high debt levels-are likely to reduce the standard of living of millions of people in many countries over a long period of adjustment and that fluctuations in international trade, financial markets, and commodity prices, as well as the tendency of institutions at both the national and international level to favor the interests of the better-off and more powerful pose substantial risks for citizens of all countries. The chapters and their policy implications are intended to stimulate public interest and facilitate the exchange of ideas and policy dialogue.
Written jointly with Pinar Dogan, this is an update of our 2010 book (see below) on the infamous Sledgehammer case in Turkey. In addition to the Sledgehammer trial, the book covers the Ergenekon and other court cases that were stage managed by the Gulen network, in cooperation with the Erdogan government. It provides detailed evidence on the framing of innocent victims by police and prosecutors in an evident attempt to politically redesign the country. It also examines the role of the media and intelligentsia in shaping public opinion over the trials.
Surveying three centuries of economic history, a Harvard professor argues for a leaner global system that puts national democracies front and center. From the mercantile monopolies of seventeenth-century empires to the modern-day authority of the WTO, IMF, and World Bank, the nations of the world have struggled to effectively harness globalization's promise. The economic narratives that underpinned these eras—the gold standard, the Bretton Woods regime, the "Washington Consensus"—brought great success and great failure. In this eloquent challenge to the reigning wisdom on globalization, Dani Rodrik offers a new narrative, one that embraces an ineluctable tension: we cannot simultaneously pursue democracy, national self-determination, and economic globalization. When the social arrangements of democracies inevitably clash with the international demands of globalization, national priorities should take precedence. Combining history with insight, humor with good-natured critique, Rodrik's case for a customizable globalization supported by a light frame of international rules shows the way to a balanced prosperity as we confront today's global challenges in trade, finance, and labor markets.
Written in Turkish with my wife Pinar Dogan, this book covers the most important political trial in Turkey in at least five decades, which opened in December 2010. It is based on our blog on the topic. Balyoz is a legal and political exposé. It details a brazen effort to frame more than 300 officers for crimes they have not committed. It documents the roles that groups within the judiciary, police, media, intelligentsia, the national science and technological institute, and (last but not least), the AKP government have played in creating what can best be called an “alternative reality.” (Balyoz means “sledgehammer” in Turkish; it refers to the code name of the fictional coup plot on which the book is based.) This is a book I never thought I would (have to) write.
This is the new edition of the Handbook of Development Economics. Compared to previous versions, it focuses more on policy questions. The Handbooks in Economics series continues to provide the various branches of economics with handbooks which are definitive reference sources, suitable for use by professional researchers, advanced graduate students, or by those seeking a teaching supplement.With contributions from leading researchers, each Handbook presents an accurate, self-contained survey of the current state of the topic under examination. These surveys summarize the most recent discussions in journals, and elucidate new developments.Although original material is also included, the main aim of this series is the provision of comprehensive and accessible surveys.The Handbooks are indispensable reference works which belong in every professional collection, and form ideal supplementary reading for graduate economics students on advanced courses.
Près de vingt ans après la mise en œuvre du « consensus de Washington » (1990), quel bilan peut-on tirer de la « bonne gouvernance » que les grandes institutions éco-nomiques internationales ont tenté d’imposer aux pays du Sud ? Et quels enseigne-ments sur la mondialisation se dégagent des trajectoires contrastées qu’affichent les continents en développement ? Contre toute attente, les pays qui ont le plus bénéficié de la globalisation sont ceux qui, comme la Chine, l’Inde ou le Vietnam, ont le moins respecté ses règles. En comparaison, l’Amérique latine, qui s’était conformée aux principes de l’orthodoxie économique, n’a enregistré que de mauvais résultats. Ce n’est donc pas la libéralisation en soi qui permet le succès économique, mais les stra-tégies pragmatiques adoptées par les gouvernements, tenant compte des mutations in-dispensables mais aussi des caractéristiques nationales. En rapprochant les évolutions réelles des théories dominantes sur la croissance et le développement, Dani Rodrik insiste sur la nécessité de faire rapidement évoluer les paradigmes de la mondialisation. Selon lui, il ne s’agit plus de libéraliser davantage, mais de créer dans chaque pays l’espace politique permettant de traiter les problèmes que pose l’ouverture. Ce premier ouvrage traduit en français de cet économiste à la renommée internationale réunit quatre essais (dont deux études de cas, Inde et Améri-que latine), indispensables pour comprendre l’articulation entre développement et mondialisation.
Poor countries become rich not by following in suit of their predecessors but rather by overcoming their own highly specific constraints. While economic globalization can be a boon for countries that are trying to dig themselves out of poverty, success usually requires following policies that are tailored to local economic and political realities rather than obeying the dictates of the international globalization establishment. One Economics, Many Recipes shows how successful countries craft their own unique growth strategies and what other countries can learn from them. - Princeton University Press
The economics of growth has come a long way since it regained center stage for economists in the mid-1980s. Here for the first time is a series of country studies guided by that research. The thirteen essays, by leading economists, shed light on some of the most important growth puzzles of our time. How did China grow so rapidly despite the absence of full-fledged private property rights? What happened in India after the early 1980s to more than double its growth rate? How did Botswana and Mauritius avoid the problems that other countries in Sub-Saharan Africa succumbed to? How did Indonesia manage to grow over three decades despite weak institutions and distorted microeconomic policies and why did it suffer such a collapse after 1997?
What emerges from this collective effort is a deeper understanding of the centrality of institutions. Economies that have performed well over the long term owe their success not to geography or trade, but to institutions that have generated market-oriented incentives, protected property rights, and enabled stability. However, these narratives warn against a cookie-cutter approach to institution building.
The contributors are Daron Acemoglu, Maite Careaga, Gregory Clark, J. Bradford DeLong, William Easterly, Ricardo Hausmann, Simon Johnson, Daniel Kaufmann, Massimo Mastruzzi, Ian W. McLean, Georges de Menil, Lant Pritchett, Yingyi Qian, James A. Robinson, Devesh Roy, Arvind Subramanian, Alan M. Taylor, Jonathan Temple, Barry R. Weingast, Susan Wolcott, and Diego Zavaleta.
Policy makers in the developing world are grappling with the new dilemmas created by openness to trade and capital flows. What role, if any, remains for the state in promoting industrialization? Does openness exacerbate inequality, and if so what can be done about it? What is the best way to handle turbulence emanating from the world economy, and the fickleness of international capital flows in particular? This book argues that successful integration in the world economy requires a complementary set of policies and institutions at home. Policy makers have to reinforce their external strategy of liberalization with an internal strategy that gives the state substantial responsibility in fostering the accumulation of physical and human capital and in mediating social conflicts. - Excerpted from abstract.
"The world economy faces a serious challenge in ensuring that international economic integration does not contribute to domestic social disintegration. The book focuses on the three major sources of tension between globalization and social stability: the transformation of the employment relationship, conflicts between international trade and social norms, and the pressures brought to bear on national governments in maintaining domestic cohesion and social welfare systems." - Institute for International Economics
Reviews of Dani Rodrik's latest book "Economics Rules"