Still more upcoming books

It’s always a pleasure to read the new publishers’ catalogues. Apart from the lovely pictures, one always has the frisson of thinking about all the interesting books there isn’t going to be time to read but maybe mental osmosis from looking at the covers and blurbs works a little….

Anyway, the Yale University Press catalogue for Spring and Summer 2017 just landed. The economics/tech books on offer promise a rather gloomy view of the world.

I’m looking forward to (and will definitely read rather than osmose) Stephen King’s Grave New World: the end of globalisation and the return of the economics of conflict. The title says it’s even gloomier than his last book, xxxx. There are two interesting looking titles on environmental economics. One is my Natural Capital Committee colleague Dieter Helm’s Burnout: The endgame for fossile fuels. The other is Benjamin Barber’s Cool Cities: the urban fix for global warming.

The other title here I’m very much looking forward to reading is Zeynep Tufekci’s Twitter and Teargas: the power and fragility of networked protest. Remember the Arab Spring, the hope of social media facilitated liberation movements? It seems an aeon ago. Now we have authoritarian surveillance and Trumpism and the Alt-Right.

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Wanting to change

Anybody who reads Duncan Green’s excellent blog, From Poverty to Power, won’t be entirely surprised by the approach he takes in his equally excellent new book, How Change Happens. It is based on two pillars. One is Amartya Sen’s capabilities approach to human development (‘the freedoms to do and to be’), and I’ve always thought that when you appreciate its ethical and practical merits, it’s hard to take any other approach. The other is the need for systems thinking when it comes to considering economic policies or other interventions – in any context, really, but certainly in the case of development.

“Change in complex systems occurs in slow steady processes such as demographic shifts, and in sudden, unforseeable jumps,” Green writes. Mostly, change is extremely, painfully slow. It turns out to be impossible to do one thing because another, linked thing gets in the way. Events and crises open the way for the big shifts – being an economist, I think of this in terms of what it takes to move a co-operative game to a new focal point. But even then, the direction of the jump is contingent, messy, unpredictable. It anyway depends on the prevailing climate of ideas and norms – so part of the challenge is to be ready to take advantage of a crisis by having done all the contextual spade work, all the while getting on with the day job of trying to bring about incremental changes in the previous state of affairs.

Needless to say, this does not make for a concise ten-point plan in the final chapter (although it does try to sum up the whole in a ‘power and systems approach’ in the final few pages). The book has some interesting practical ideas, however. I like the principle of looking for ‘positive deviance’ – look for examples of people or activities that succeed against enormous odds, for outliers, and use them as ‘social proof’ so others copy whatever it is. This is exactly the way new technological innovations spread: the ideas are there, a few people try, and others imitate them. There are loads of examples of advocacy and development organisations and initiatives that have been able to implement responsive, adaptable changes (many of these brought Tim Harford’s Adapt to mind). Other suggestions are harder to see how to implement. The book argues that principled leadership matters. I agree. But where is it? How do donors encourage it?

Green concludes that many organisations in the aid world, including his own, need to move away from linear thinking and get wiser to context and the whole complex environment (actual and political) in which they operate. I hope they follow his advice and this book is certainly well worth anyone working in this world reading. The one element missing, though, seems to be the meta-analysis of the development agency ecosystem itself, and the prevailing ideas. For example, how do you get social innovation akin to technological innovation in a world of impact assessment and RCTs? Or indeed combine fleetness of foot with a genuine need to understand ‘what works’? Understanding one’s own cognitive biases or limitations is a tall order. What’s more, the aid world has incentive structures built in that will discourage change. In a variation on the old lightbulb joke (How many psyhologists does it take to change a lightbulb? Only one, but the lightbulb has to really want to change), how change happens is that a lot of people have to want change to happen.

Anyway, there’s no excuse for not reading the book, as it’s also published as an open access pdf. I hope lots of activists read and digest and change their approach, but suspect it will prove difficult for many.

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Not the smartest animals

The title of Frans de Waal’s latest book is a rhetorical question: Are We Smart Enough to Know How Smart Animals Are? I thoroughly enjoyed reading it. De Waal’s deep knowledge shines through every sentence, as does his delight in all the creatures (especially other primates) he has spent his career studying. The book is about the evolution of cognition and emotion in animals (including humans). It particularly debunks Skinner’s behaviourism – mental processes as a black box, but manipulable using reward and punishment. (This of course the approach behind the present fashion for behavioural economics, a fashion I find troubling because some of its enthusiasts do so clearly see themselves as omniscient scientists ordering society for the better by manipulating the choices of their less intelligent subjects.)

I learned a lot from the book, including that the elephant brain is the one with the most neurons (about 3 times as many as we do). The neural differences between humans and other primates are not sufficient to make us unique in all aspects (although we clearly are in some, notably language). De Waal argues we should assume continuity, a spectrum of cognitive abilities between different animals, rather than sharp and wide distinctions. He notes that psychology is moving to accept this assumption, but the social sciences tend to assume human discontinuity – “But what does it mean to be human?” he reports social scientists asking him. “I usually answer with the iceberg metaphor, according to which there is a vast mass of cognitive, emotional and behavioural similarities between us and our primate kin. But there is also a tip containing a few dozen differences. The natural sciences try to come to grips with the whole iceberg, whereas the rest of academia is happy to stare at the tip.”

The scientific project must therefore be to develop a unitary theory of different cognitions, how cognition operates in general, and then in the case of each particular species. The book emphasises two important contributors: sense perceptions (is vision the most important to the species? or hearing, or smell?); and social relations (is it a species with strict social hierarchies, like chimpanzees, or solitary, like the octopus?) “Cognition and perception cannot be separated… they go hand in hand,” he writes. (Interesting to reflect on what this means for AI. The question is not so much what androids dream of as what they see or hear.)

To crown a wonderful book, it ends with a quotation from David Hume: “Tis from the resemblance of the external actions of animals to those we ourselves perform, that we judget their internal likewise to resemble ours; and the same principle of reasoning, carried one step farther, will make us conclude that since our internal actions resemble each other, the causes, from which they are derived, must also be resembling. When any hypothesis, therefore, is advanced to explain a mental operation, which is common to men and beasts, we must apply the same hypothesis to both.” As Hume summed it up, “No truth appears to me more evident than that beasts are endowed with thought and reason as well as men.”

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Revolt of the data points

Libération has a very interesting article about the politics and ethics of big data. It cites some excellent books, such as Eden Medina’s brilliant Cybernetic Revolutionaries about Project Cybersyn in Allende’s Chile, and Alain Desrosières’ classic The Politics of Large Numbers. It doesn’t mention Francis Spufford’s Red Plenty, which makes exactly this point (and is a cracking read too): «La planification soviétique et l’ultralibéralisme se rejoignent ainsi pour asservir le droit à ses calculs d’utilité.»

There is huge interest in using big data techniques to construct better economic statistics (including on my part!). Here in the UK, the ONS is launching a data science campus. The Turing Institute has just been funded by HSBC to look at economic data (although the release says nothing about the work or the researchers involved, so this looks like very early stages). There’s particular progress on constructing price indices using big data, as in this VoxEU column or the Billion Prices Project.

But, as the Libération article underlines, the utopianism of ‘datacratie’ can tip into a dystopian extreme. The technology looks like it can make the utilitarian project of measuring the costs and benefits of everthing a reality, extracting information from every click, every move, every choice. But when the data points (aka humans) realise what’s happening, they won’t necessarily like it.

Bring on the philosophers and ethicists.

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The Enlightened Economist Prize 2017 – the winner!

It has been a tough choice, as ever, to pick one winner out of the 14 titles on my longlist. It was a good year and all 14 are terrific books. After days of mulling it over, three contenders became clear. One was Robert Gordon’s The Rise and Fall of American Growth, because even though I disagree with parts of his analysis of today’s economy, it is a brilliant, magisterial work of economic history. All economists should read it. But Prof Gordon has won plenty of accolades for the book already and doesn’t need mine. I really enjoyed also Sam Bowles’s The Moral Economy, on the strengths but importantly the limits of economic analysis based on incentives as opposed to ‘moral sentiments’.

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However, the Enlightened Economist Prize winner for 2016 is a book that was enjoyable to read, informed me about all kinds of things I hadn’t known, and is full of insights about the relationship between money and politics, and the nature of property and value. It’s a great example of history helping one think more clearly about the present and maybe the near future. It is Rebecca Spang’s Stuff and Money in the Time of the French Revolution.

Rebecca, if you read this, it means I owe you a nice lunch or dinner if we’re ever in the same place.