Railways and culture

The Europeans: Three Lives and the Making of a Cosmopolitan Culture by Orlando Figes is a history of the emergence of a common European culture in music, art and literature in the late 19th century, told mainly through a narrative about three people: leadingopera singer Pauline Viardot (no, me neither), her husband, manager and also expert on Spanish art and music Louis Viardot, and the Russian novelist Ivan Turgenev, who ended up in a menage a trois with the Viardots.

For me, though, rather than this domestic drama, the main attractions were the railways, the publishing techniques and business models, the intellectual property debates, the great exhibitions. All the splendid artistic creations rested on these physical and institutional structures. Some artists and novelists learned to market themselves effectively to ensure commercial success – Zola was one for example, while poor Turgenev was far less worldly. The book even tells of a 19th century superstar economics effect, driven by technology on the supply side and the emergence of mass demand on the demand side, Sherwin Rosen avant la lettre. The Franco-Prussian war started to break the shared culture, and of course the first half of the 20th century torpedoed it. The book is a cracking read.

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Is weird wonderful?

I’ve been slowly reading The Weirdest People in the World by Joseph Henrich. Slowly because I’ve dipped into a reading group and that gave me an excuse to dawdle. And also because it’s one of those too-heavy-to-lift books that need an arrangement of cushions to read. Perhaps it’s because of this dilatory pace that I found myself decreasingly impressed by the book as I went on.

Or perhaps it’s because the freshest part of the argument is in the early sections, which document the different responses to psychology experiments from different kinds of people around the world and make the argument about the origins of the unusual ‘western’ psychology lying in the mediaeval Church’s prohibitions on kin marriage. Henrich callis it the ‘Marriage and Family Programme’, although doesn’t really explain where it came from. For those still unaware of the acronym, ‘weird’ stands for ‘western, educated, industrialised, rich and democratic’. The book’s accumulation of evidence that there is a distinctive ‘weird’ psychology, correlated with the footprint of western Christianity, is reasonably persuasive – although it is far from obvious to me that an accumulation of individual experimental results and survey correlations of this kind amounts to decisive evidence. Many chapters are a list of: here’s one study in place X; here’s another at another time in place Y; then Z; and here are some scatter plots with regression lines.

The trouble is that the book then dissolves into a less convincing argument that this attitude to kin marriage – which drove people in the west to look for social relations and build trust outside their immediate clan – explains everything. My firm view is that history is over-determined and nothing has only one cause. As the chapters went by, the book more and more seems to be an amalgam of all those other Big Histories such as Guns, Germs and Steel, or Why the West Rules for Now. Inevitably, it has to engage with feedback loops. Having said that, highlighting the feedback loop between psychology and institutional change is interesting and productive.

And oh yes, one last point. There’s the implicit teleological determinism in Weirdest. It always refers to “development” in inverted commas, but there is a value judgment; the west has progressed more than the rest. Cast the argument forward and it’s another matter: will the west stay democratic and prosperous? Aren’t there worrying signs of family dynasties in the US and jobs (only) for mates in the UK (couldn’t one see Eton and Oxbridge as tribal?). Yet this sits oddly with the book’s avoidance of any explicit normative discussion. Is weird good? If it really does correlate with prosperous, surely yes? As a WEIRD person, I htink so.

I think it’s well worth a read, there’s plenty of food for thought and economics tends to underplay psychology and culture. But maybe wait for the paperback.

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From Hobbes to Locke – and back again?

I’m a fan of Deirdre McCloskey, but accept that her writing style is a bit marmite – it’s always clear but she has a rather arch tone which some readers don’t like. Some of her books are also rather long, and the three in her terrific Bourgeois Era trilogy, The Bourgeois Virtues, Bourgeois Dignity and Bourgeois Equality, fall into this camp. They repay the time required, drawing as they do on McCloskey’s extensive reading and research (to get a flavour of how extensive, look at some of her posted course syllabi here).

Now, however, anybody unwilling to commit the time to the whole Bourgeois Era trilogy can read instead this new summary version by McCloskey and Art Carden, Leave Me Alone and I’ll Make You Rich: How the Bourgeois Deal Enriched the World. Where Acemoglu and Robinson’s Narrow Corridor takes inspiration from Hobbes, this book is inspired by Locke, and argues that liberty is the key to the great enrichment of the past two and a half centuries.

At a time when the mood – and reality – of the times is swinging toward state intervention in the economy – and rightly so, given the potentially Hobbesian world to which the combination of market power and pandemic have brought us – it’s all the more important to keep an open mind and take these arguments from economic liberty seriously. Don’t be put off by the blurbs on the back from Stephen Davies of the IEA and Matt Ridley. Besides, the sweep of McCloskey’s historical knowledge is such that the book is just a good read (if you like the tone), and a fraction of the length of the trilogy!

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Technology old and new

For the usual kind of slightly random reason, I re-read David Edgerton’s excellent book The Shock of the Old this past week (having read it when published in 2006 as he was an interviewee on an Analysis I was presenting [http://news.bbc.co.uk/nol/shared/spl/hi/programmes/analysis/transcripts/27_07_06.txt]). It’s generally aged very well, and is of course a necessary corrective to technology hype. The main argument is that the history of technology tends to be told as a a breathless account of inventors and shiny new inventions, rather than the more representative but complicated story of economic conditions and uneven diffusion and use. So at any moment in time, many overlapping technologies serving the same basic needs will be in use around the world.  What’s more, the same hype gets recycled. For example there’s a quotation from George Orwell in 1944 complaining that people were over-hyping the ‘death of distance’ due to the airplane and radio, when the same claims had been made before 1914!

It is undoubtedly true that different technologies overlap in use, and indeed there’s quite a large economics literature about diffusion and the need for complementary investments before inventions and innovations deliver productivity benefits.  To this extent, Edgerton is railing against an imaginary foe. He is also very sniffy about the concept of ‘weightlessness’, which he misinterprets as a claim about declining employment shares for primary and secondary sectors of the economy. It is not this, but rather a description of the distribution of value added in the economy, and one that has been borne out fully by trends in the past 2 or 3 decades.

The other point that he seems to me to under-play – oddly, given his emphasis on the importance of contest for the use of technologies – is that they are all social. There are countries unable to provide a reliable electricity supply not only because they are low or mid-income but because they do not have the institutions to support the complex supply arrangements: not just sub-Saharan Africa but also California. Or take the book’s example of the Pill, which it argues is an incremental change in contraceptive technologies. Yes and no. Each of the Pill’s characteristics – women in control, reliable, and not requiring a fitting by a doctor – might seem a small shift from condoms, douches, IUDs and diaphragms, but together they did deliver a compelling new method and a radical change in social relations.

Having said all this, The Shock of the Old is a bracing corrective to techno-hype, something certainly still needed.

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Accounting for progress

I read Stephen Macekura’s The Mismeasure of Progress: Economic Growth and its Critics in proof, and just enjoyed reading it again now it’s been published. People who know about my work won’t be surprised to hear that this is just my cup of tea. The question preoccupies me as much as it ever did – what counts as progress and how do we count it? – along, increasingly, with the issue of who gets to answer the question.

There are now quite a few books about the limitations of GDP, or history of GDP, or both (eg as well as my GDP: A Brief But Affectionate History, Matthias Schmelzer’s The Hegemony of Growth, Philip Lepenies The Power of a Single Number, Ehsan Masood’s The Great Invention, Brett Chrostophers’ Banking Across Boundaries, and more). So Macekura has this recent literature to build on as well as older classics including Alain Desrosieres and Theodore Porter. What he brings is a unified story about the critics of GDP and the System of National Accounts told from the 1940s on, and particularly including the perspective of the economists and statisticians working on or in developing economies.

That the arcana of economic statistics matter is clear from the start: “Accounting and accountability are closely intertwined,” Macekura writes. His framework is James Scott‘s powerful concept of state ‘legibility’. This makes the imperialist habit clear when it comes to the history of national accounting in the colonies of western powers. As one Colonial Office official put it, the UK had to ‘level up’ its colonies, and would do so by increasing their GDP growth. Hmmm. That term is oddly familiar.

The heroes of the tale in some ways are economists such as Phyllis Deane of NIESR and Dudles Seers, founder of the Institute for Development Studies, for their appreciation that economies are not all the same. The fabric of life in low income countries was profoundly different from the standard framework it was supposed to fit. However, western critics of the focus on economic growth – whether for this reason or because of the increasing concern with environmental limits – were in turn criticised by some economists and others from the countries concerned, who considered that to not prioritise growth was a western luxury. “The Limits To Growth report [1972] prompted a strong backlash from experts in the Global South,” Macekura notes. He goes on to argue that, “Growth critics often sought to replace one set of numbers in governance with another. They mounted a technocratic critique of technocracy that claimed the basic problems of contemporary life could be resolved through the use of socially relevant and more specialized data.”

The book ends with a picture of the critics of growth and of GDP (overlapping but certainly not identical sets) in recent times, flagging questions such as the measurement of the financial sector, as well as the ever-more pressing sustainability issues. He ends with a call for a wider set of metrics but also for enfranchising people to participate in the debate about progress. There is certainly quite widespread interest in matters of measurement, for all kinds of reasons, now. GDP is rapidly losing its legitimacy but the need for the social accounts that enable accountability is more important than ever.

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