No comments about Does Foreign Aid Really Work?.

5 comments about Unholy Trinity: The IMF, World Bank and WTO.

1. The Writers of books like Unholy Trnity make very little money for their hard work (usually a few hundred dollars a year for 3-4 years). They write books like this out of political commitment. And then people like "Not Right" (though he or she probably is, Right Wing) criticize the author for responding to an obviously political critique! This book, as the Publishers Weekly review says, provides a scholarly grounding for the anti-WTO, IMF and World Bank protests. The group of students and faculty who worked on it did a splendid job. Read it and you will see.



2. Any one looking for a good, critical overview of the history of the International Monetary Fund, World Bank, and World Trade Organization--the major institutions of international economic governance, the institutional guardians and promoters of neoliberal globalization--should check this book out. It reviews the history of these three organizations in depth. Most analyses of these organizations that I've seen just look at their current policies and critique them. Peet (and the junior student authors who assisted him) add a great deal of historical depth to this, looking at the conditions under which the unhol trinity were founded at the end of World War II, how their missions have changed over time, and the power structures in which these organizations are embedded and part of. He looks at how the changing ways the US government has used these organizations to advance the interests of the US political-economic elite (what Peet et al. call the Washington-Wall Street Alliance) on the world stage. This book also provides a progressive critique of their impact, although other sources probably go into deeper depth on that score. Since Peet is a social scientist, he doesn't just put the problem down to bad intentions, but down to bad social structures--a refreshing change from some of the simple-minded demonization of the elite you can find in some quarters. Peet particularly analyzes how the role of people's beliefs in shaping their actions within these institutions. In some ways, this is the weakest part of the book. He tries to use an analysis of discourse a la Foucault to explain the working of these organizations, explaining how the hegemony of neoclassical economics shuts out any debates of alternatives. While this is valuable, discourse analysis along can not bear the full weight of analyzing the problems with the unholy trinity--you need some sort of political-economic analysis in the lines of world-systems theory or something to make full sense of these organizations. Indeed, Peet lays out his Foucauldian analysis in the first chapter--and then those ideas barely show up again. Honestly, I would suggest anyone who's not an academic just skip the first chapter and read the rest of the book. You won't miss much. After the first chapter though, the book provides a solid overview of the history of the IMF, World Bank and WTO--and through them much of the process of globalization.



3. This is what university work should be like: a professor leading a group of studnets in common action and collectieley publishing their work. Well done. Lots of good points which the unholy trinity should answer in some forum or other. All three organs are dominated by the US as Stiglitz, Bellamy and others have pointed out. Whether US hegemony is a good or bad thing is a different question.
   I felt the book could have done without Foucault, who has little to contribute on the parameters of discourse or much else. The fact is the budgets of these institutions dwarf all others and it makes a welcome change to see an articulate counter point of view, especially as it was a grassroots student project. Definitely worth a read.



4. In a word, if you like living in a sovereign nation, then write your Congressional representive, your Senators, and have the US removed from these organizations. There is a real bad element here. World domination bad.



5. Peet is largely correct in his claims that the International Monetary Fund(IMF),World Bank(WB),and World Trade Organization(WTO) have ,since 1981,mistakenly imposed inappropriate constraints on Second and Third World countries that have sought international aid over the last 37 years.The imposition of a laissez-faire " free market " framework on countries in Africa,Asia, and South America that have no developed legal,political,social, or economic institutions,no independent judiciary or police force,no system for enforcing basic tort law,etc., means that such policies were doomed to fail from the beginning.The necessary conditions do not exist in many of these countries for economic development since property rights are not enforced or respected.Laws are broken regularly with complete impunity.Too many of these countries are simply strong man dictatorships that simply loot the loans provided by the WB and IMF.A perfect recent example is Kenya.Billions of dollars in loans for infrastructure investment have simply melted into thin air.
   
   
   The book is marred by some inaccurate assessments of Adam Smith(pp.4-5,10) and J M Keynes(p.7,p.35,ch.2).Smith's concept of self interest does not translate as selfish or greedy.Smith recognizes an important role for government in providing public goods and services,the most important of which is universal education,provided for free if necessary.Smith recognized the existence of a major negative externality that only government could deal with through extensive education(see The Wealth of Nations(WN),pp.734-741,Modern Library (Cannan) edition).Smith's views on trade and tariffs are the opposite of the current views of the IMF,WB,and WTO (See pp.434-439 of WN)
   
   Keynes's GT is also not handled correctly.Investemnt is undertaken in an atmosphere of uncertainty ,as opposed to risk.Uncertainty,not risk,is the major problem.Confidence is important under conditions of uncertainty.Confidence is not a problem under conditions of risk.Finally,Keynes was not in favor of running budget deficits or an activist fiscal policy.Keynes's position was to maintain a low ,fixed rate of interest permanently in the long run a little bit above the prime rate of interest,a la Smith(pp.339-340).This would be combined with a policy of credit restriction that would make the speculators and rentiers the unsatisfied fringe of borrowers.
   Overall, I would recommend this book.It could have been much stonger if the authors had understood what it was that Smith and Keynes were arguing for.

2 comments about Democracy and Development: Political Institutions and Well-Being in the World, 1950-1990 (Cambridge Studies in the Theory of Democracy).

1. Too many conjectures and too many theories have been addressed concerning the relationship between polities and material well-being in the world. But they have been raised without a proper test of them, without empirics. This book completely cleans all kinds of intellectual garbages, clarifies the existing arguments, and above all provides a series of the sohpisticated tests. Adam Przeworski and his comrades did a marvelous job.



2. I had a love/hate relationship with this book. First, and this is purely a stylistic point, I believe it could have been far better edited. It was an avalanche of statistics, statistical analyses, and presented results without a lot of discussion of why relationships emerged. Their first goal -- showing development does not "cause" democratization is, I believe, a revamp of earlier published work. It is, nonetheless, an important finding that is worth repeating.

   More interesting is the relationship between dictatorships and demography, but, again, aside from a little theorizing and a few statistical tests I believe the authors do little to shed much light on why different regimes affect demography differently. They begin to flesh out an argument the crux of which revolves around the ability of democratic polities to "commit" to providing social welfare over the long run, but this seems to run counter to their initial dismissal earlier in the book of the Neo-Institutional economics claim put forth by Douglass North, among others, as to the importance of institutions in "binding the hands of the sovereign."

   Finally, their results do show that democracies tend to survive in wealthy states, in essence becoming "unkillable" after a certain level of wealth is reached. They do little to really explain why this is, but the result gives credence to Lipset's thesis that devolpment, at the very least, helps sustain democracies.

   Overall I liked to book and would reccommend it as an assigned book in a comparative politics/political economy class.

5 comments about Javatrekker: Dispatches From the World of Fair Trade Coffee.

1. Coffee is more than just another drink: it's about politics, survival, and indigenous people - and Javatrekker is the perfect guide to the politics, culture and meaning of coffee. From Fair Trade business issues to adventure travel, anthropology and politics, JAVATREKKER surveys the peoples, customs and trade of coffee around the world in an invigorating, moving account recommended for any general-interest collection and in particular for college-level libraries strong in world economics.
   
   Diane C. Donovan
   California Bookwatch



2. 
   This book is amazing! Dean Cycon is amazing! I've seen "Fair Trade" coffee in stores but until I read "Javatrekker," I hadn't grasped the magnitude of the problems so many coffee farmers face. Dean Cycon is on a mission...his dedication to help poor coffee farmers improve their lives is remarkable. He deserves the Nobel Peace Prize! If you read this book and you possess an ounce of compassion for humanity, you will never buy non-Fair Trade coffee again. I highly recommend this book. It is entertaining, educational and inspirational.



3. 
   If other readers came away with a solid or even marginal understanding of fair trade and shade grown coffee, then they are better readers than I am. This book did not need to be a dry study, but I obtained this book hoping for more than a travelogue. He is a great storyteller and a probably a delightful guest, but beyond a few factoids (and some interesting descriptions of cultures), I barely learned anything about coffee or coffee markets. I think this books would have been greatly enhanced by more description of why things are the way they are, where and when shade grown coffee makes economic sense, how variabilites and inequities in the market could be reduced, how large the market for fair trade is and what the big players are doing, where there is fair trade but not shade grown coffee, and on and on...



4. I learned nothing about Fair Trade,but I sure learned a lot about Dean and how grateful the many cultures of the world are to Dean, for being Dean. I thought the writing was fairly poor, the self absorbed, self congratulatory "storytelling" was over the top and I didn't even think it was a very good travelogue. I've read many better books about coffee and the effect that the systems that are in place have on the farmers. I couldn't even get all the way through the book. I was really disappointed.



5. I started reading Javatrekker over a cup of anonymous black coffee. By the time I had finished, a steaming mug of Dean's Beans Sumatran roast hovered over my lips, and I took a sip: the coffee was delicious and, best of all, I knew where it came from and what my caffeine buzz was supporting. This is the great gift of Javatrekker. You close the cover with a profoundly deep understanding of the global dimensions of the coffee trade.
   
   But this is not all that Dean Cycon, the owner of Dean's Beans Organic Coffee, offers in his first book. Cycon recounts his travels and travails through Ethiopia and Kenya to the peaks of the Andes and the northern provinces of Sumatra (and beyond!) with humor, integrity and intelligence. His stories are engaging, and they offer an unprecedented glimpse into the history of your morning cup of coffee.
   
   Javatrekker is peppered with fascinating pieces of trivia and pricelessly humorous anecdotes.
   
   THE BOTTOM LINE: If you're a coffee drinker, you need to read this book. If you're not, you should read it anyway. Cycon is a true role model for corporate social responsibility, and even if we all can't lead a life of javatrekking, we can benefit from Cycon's knowledge of the global coffee market and his experience working with coffee farmers all over the world. As consumers, we should know where our money is going, but it's often hard to follow the money trail. With Cycon's help, we can all begin to piece together the truth about our morning jolt.

1 comments about In Defense of Natural Law.

1. George is an adroit, articulate, and erudite author, and this book is a well-crafted and intelligently-designed defense of modern natural law theory. Yet, these features still require the reader to be already familiar with ethics, meta-ethics, metaphysics, and natural law. This book is for graduate students and advanced undergraduates; it's not directed toward a general readership. For a simpler, more straight-forward account cf, Finnis, "Natural Law and Natural Rights," (OUP, 1982).

   George defends the neo-Thomistic view of natural law as refined by Messrs. Grisez, Finnis, and Boyle. This is not an uncontroversial stance. The core of the book is Chapter III, where the Grisez, Finnis, and Boyle version of natural law that George intends to defend is given. The book is rigorous and examines natural-law theory from variegated angles and various detractors, making close reading of dense argument necessary. The early chapters presuppose knowledge of natural law theory; thus, neophytes may profitably read Chapter III first. Chapter II is reserved for those already versed in natural law theory and want a examination of meta-ethics nuances.

   I didn't like the way the naturalistic fallacy is handled (more "sidelined"), as if it is a minor point to a major premise. But George's defense of natural law theory avoids the fallacy (norms derived from facts) by using the Grisez, Finnis, and Boyle model, and succeeds in staying clear of metaphysical foundations. This caveat aside, I know of no better, one-volume, exhaustive, and sustained argument for natural law theory. It's dizzying reading, and even if inevitably unconvincing, generally worthwhile.

2 comments about The Next Great Globalization: How Disadvantaged Nations Can Harness Their Financial Systems to Get Rich.

1. Whilst Mishkin tells it like it is, you just may want to follow on with "EXTREME COMPETITION" by Fingar, and "THE WORLD IS FLAT," by Aronica and Ramdoo to get to the "what do I do tomorrow."
   
   Great book, Mishkin... readers, keep reading!



2. As the final word, Mishkin says: "...the next great globalization should be financial. I hope this book provides some guidance on how it can be done right."
   
   It sure did.
   
   ------------------------------------------------------------------------------------------------
   
   (Since my review is somewhat long, I'll present the outline first.) I've scrutinized the book with much care, and I'll write about the following reviews in sequence:
   
   I. Book's main issue
   II. The author's standpoint
   III. Book content summary
   IV. The writing style
   V. My personal view about globalization
   
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   I. The issue of the book
   
   This book touches the grand topic of financial globalization, which is something important yet confusing to us ordinary people. Though the topic has a large audience, few writers dared to address it, since the picture of globalization is too big and complex for most to envision, to understand, to interpret. THEY ARE SIMPLY UNABLE TO HANDLE IT. Those who are interested in globalization - and especially financial globalization - have been waited a long time for someone who can really explain it for them.
   
   Mishkin didn't fail us. In a relatively short book, he outlined the whole structure of financial globalization with nations as the basic unit of study.
   
   I think this books is comparable to , in which the journalist Friedman painstaking drew the huge picture of globalization with vivid stories and anecdotes. He did make the whole thing come to live. And this book is different in nature. While Friedman strived to give us an INTUITIVE FEELING about globalization (even created a phrase to capture the elusive concept - "the flat world"), Mishkin tried to RATIONALLY ANALYZE it for us. While Friedman kept our mouth open APPERCIATING the effects of globalization, Mishkin keeps us thinking about HOW it works. While Friedman enabled us to ENVISION it, Mishkin enabled us to UNDERSTAND it.
   
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   II. The author's standpoint
   
   Like most economists, Mishkin is strongly "pro-globalization", even when talking about the controversial - financial globalization. He believes that successful participation in the world capital market can give weak countries the chance to catch up with their rich brothers. He argues persuasively that financial liberation in a country is mostly about how to get the SYSTEM right. It is the institutional design that matters most, not the amount of capital in it. As he puts it, when the institutional structure is in good shape, the market can attract investment, allocate them to their most effective uses, and keep away from financial crises.
   
   As for the basic infrastructure of financial system, he mentions the following elements again and again:
   
   1. Developing strong property rights. Lack of property right protection kills investment incentives.
   2. An effective and efficient legal system. If the legal system doesn't work or work too slowly, it will also be a huge impediment to investing.
   3. Financial supervision and regulation. Such practice include increasing market transparency, enforcing strong accounting standards, imposing safe capital requirement of banks, effective supervision of the financial institutions, and so on.
   
   Although the prospect of financial globalization for "emerging market economies" is brilliant, powerful politicians and businesses may have strong will against it. Especially domestic monopolies, they hate globalization because it brings competition.
   
   Mishkin believes that the action of globalization can "force" reluctant officials and business elites to embrace globalization, by giving them incentive and increasing competition.
   
   Mismanagements by the elites will cause severe problems. For example, in an attempt to quickly privatize the banks, the Mexican government made many impudent moves that left the financial system at high risk, which resulted in a lending boom. The same thing happened when the chaebols (huge family-owned conglomerates in South Korea) perverted the financial liberalization process to suit their insatiable thirst for capital, which also resulted in a financial crisis.
   
   The author believes that the financial crises of "emerging market economies" are generally "homegrown". External effects function only as problem accelerators.
   
   In his analysis of the three typical financial crashes, one important villain in monetary policy is "pegged exchange rate + liability dollarization". It is also argued that, to keep the financial system in good shape, both fiscal and monetary policies must be responsible.
   
   He believes, although quite naively, that the IMF and some other institutions (his brainchildren) can be "lender of last resort" and therefore act as the savior of weak countries in trouble.
   
   ------------------------------------------------------------------------------------------------
   
   III. Content summary
   
   
   The first part of the book, "Is financial globalization beneficial?" illustrated why financial globalization is bound to come, what it will look like, and how such globalization can change our lives for the better.
   
   Then, the second part, "financial crisis in emerging market economies", showed how the whole thing can go wrong if mishandled. With case studies of three financial crises (respectively in Mexico 94', South Korea 97 - 98', and Argentina 01 - 02'), Mishkin showed us how strong political and business interests can pervert the right course of financial liberalization, give rise to unhealthy lending booms with large amounts of bad loans, and how such problems can eventually turn into currency crises, and finally, full-fledged financial disasters.
   
   The third part, "How can disadvantaged nations make financial globalization work for them", gives prescriptions to developing nations on how to enter into the world capital market profitably and safely.
   
   The fourth part, "How can the International Community Promote Successful Globalization?" centers on the roles of IMF and advanced countries in helping new comers. This part, however well intentioned, is little if at all useful. IMF and other international institutions, in which Mishkin places unjustified hope, are largely manipulated by political interests of strong countries. The world powers dominated it. For example, since the IMF requires an 85% vote to get a bill passed and U.S. counts as 17%, the United States actually has a veto. Probing into the history, we see they frequently fail to act in the interest of the weak countries in trouble. Unfortunately, even Mishkin himself agree that the IMF, as well as the World Bank, cannot take the role of a savior.
   
   The final part, "where do we go from here", is an epilogue with a hopeful look into the bright future of financial globalization.
   
   ------------------------------------------------------------------------------------------------
   
   IV. Writing style
   
   Luckily, his writing is rather layman-friendly! With careful explanation and detailed analysis, even those with no prior knowledge about finance can understand many technical terms after reading. Ever terrified by such words like "liquidity", "liability dollarization" and "financial liberalization"? Don't worry. They will be part of your active vocabulary after this book.
   
   ------------------------------------------------------------------------------------------------
   
   V. Some personal thoughts on financial globalization
   
   Although undesired by many, globalization, in today's world, seems more and more unavoidable. Most of us have sensed its rush towards us, gaining momentum along the way. Therefore, we need to get ready for it, with both an open mind but also aware of its potential to do harm.
   
   Caution first:
   
   I think the problem in globalization is INHERENT in PRINCIPLE OF ECONOMICS. Most economists are fond of globalization just like they are fond of free-trade, since globalization is virtually FREE-TRADE in THE WHOLE WORLD. According to the economics theory, "TRADE MAKES PEOPLE BETTER-OFF" by allowing them to specialize in their advantaged area. Free-trade promotes competition, which results in lower prices for better goods.
   
   However, when we take the social effects into account, TRADE DOESN'T NECESSARILY MAKE PEOPLE BETTER-OFF, since it maximizes profits AT THE EXPENSE OF POLARIZATION. The rich get richer and the poor get poorer. Let's consider welfare: economists would tell you unanimously that any form of welfare reduces economics outcomes. True. But aren't those who live in the European welfare states happy about their society safety net? Furthermore, pursuing free trade and increasing the income gap means decreasing social stability, and this undermines the economy in return - the poor not only get poorer, but also angrier.
   
   Therefore, if the whole world is to be integrated into one single economy (as is the ultimate future goal of globalization), we can expect severer polarization. You might say, well, since a free-trade country can solve its problem, why cannot a free-trade world? The situation is, when wealth distribution gets too uneven in United States, there is still a federal government to redistribute for U.S. citizens. However, when the inequality occurs on a global scale, who is going to redress the problem for World citizens?
   
   
   An open mind is also important:
   
   There are certainly beneficial outcomes for globalization besides the creation of a world-free-market. Some of them are:
   
   1) Financial opportunities
   
   Utilizing financial globalization resources is a great opportunity for the poor, as illustrated by Prof. Muhammad Yunus's (06 Nobel Peace Laureate) feat with Grameen Bank. His micro-loans to the poor in Bangladesh has lifted millions from absolute poverty by enabling them to operate their own business. On a much larger scale, countries can attract foreign capital to speed up its development, although this must be done with excessive care.
   
   2) Trade globalization
   
   Trade globalization enables developing countries to adopt an export-oriented economy, which proved highly successful, with wonderful examples by the rise of post-war Japan, South Korea, China, etc. With large working forces at lower wages, by focusing on manufacturing, countries can create jobs for their citizens, gain profit from selling things to rich countries, and building political friendship by trading. The fact that almost all countries strive to get into the WTO shows the importance of trade in a country's economic development.
   
   3) Information globalization
   
   Information globalization helps poor countries develop faster. With today's information technology, even the poorest nation can gain access to much of the expertise in leading countries, provided 1) internet is linked 2) literacy. This is really, really exciting! Computers ties the whole world together, and they effectively expedite the process of "learning" between countries, allowing "students" to rapidly grasp the knowledge their "teachers" spent hundreds of years to develop.
   
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   In general:
   
   When something is unavoidable, you just have to be ready for it. Globalization is such a thing. The recent fact is that the wealthy are doing a good job harnessing globalization for their use, while the poor are either ignorant or terrified of the issue. This is troublesome. If they do not catch up with the notion of globalization and be prepared, they will be thrown behind even further. They must do something. Frankly, I don't know whether a "globalized" world will stop the gap from widening, but I know an "unevenly globalized" world will make the widening even faster.

1 comments about World Development Report 2008: Agriculture and Development (World Development Report) (World Development Report).

1. For those who do not follow this field the World Bank is the main international funder of development projects in the Third World. Every year it produces a kind of annual report on development usually focusing on a certain subject. The World Bank has many fine experts working for it but people should be aware it is very controversial. In the case of agriculture people might want to read Stolen Harvest: The Hijacking of the Global Food Supply or Diet for a Small Planet to hear some alternative views. I have a Listmania list on agriculture books that people might want to check out.

4 comments about Despite Good Intentions: Why Development Assistance to the Third World Has Failed.

1. Mr. Dichter has written an excellent book about the so called "development industry". He describes the evolution of the idea of helping the poor countries of the so called third world since 1950 until today. He discusses the problems that have arisen in the hundreds of governement development agencies, NGOs, and humanitarian organizations, mainly the excessive professionalization and bureaucratization of these organizaitons. The "industry" of development as he calls it, exists mainly to give emplyment opportunities for well paid (and well travelled)consultants than to really help the needy.
   Interwoven in his analysis are 18 case stories. Just reading the case stories (which are based in the author's wide professional experience)gives you a better insight in the dilemma of development, than dozens of World Bank, IMF and "imperialism" bashing books that are in the market. The description of how the World Bank ticks is very interesting. You feel that here someone is writing that has gone through all this and has thought about it. THIS IS REALITY and not theory.
   I myself have worked in Africa for 5 years as an economist for a Christian Mission Society. It is amazing to see that everywhere in the field the problems are the same: poorly conceived projects, neglect of the consequences of projects, and so on. If you are ever thinking of working in the area of international development, AND if you really want to help the poor, AND NOT MAKE A CAREER OUT OF IT, READ THIS BOOK!!!



2. It's one of those (few) publications that would immediately make you sit up straight, cause you to squirm and shake your head in disbelief, heave a deep sigh, raise your eye brows at some point, and move you deeply to show appreciation to its material by graphically interacting with its content (in other words scribbling all over the pages of the book - line by line, margin to margin - with notes and personal reactions. That happened to my copy. That's how interesting the book is!). No, the book is not trashy and is far from cynical. On the other hand, it offers a very reflective, comprehensive and insightful analysis of the mistakes and failures of the development industry as a whole. The author, a "devbiz" insider, is not an anti-INGO humbug but one who calls on his development colleagues to re-examine their (and their organizations') ways and to genuinely consider the often ignored realities in the field. His analysis of the evolution of the development industry and its trends, patterns and pitfalls are based on actual case studies and historical facts. Full of relevant lessons and thought-provoking questions and issues that would challenge not just your notions of development work but even your own values, motives and goals for entering the "devbiz" industry. The book stimulates mentally but tugs at the heart.



3. Dr. Dichter gives a wide range of examples based on real experiences that expose many of the pitfalls of development assistance as we know it. Unfortunately, while his descriptions of the problems are quite comprehensive, his proposed solution (i.e. drastically cut development assistance in favor of private development) lacks much in the way of logical support. For instance, there is no contrasting presentation of examples of privately-funded projects that have succeeded where charity has failed, nor any mention of to what extent business relies on government-funded infrastructure improvements, etc. In addition, the topic is best addressed in two stages -- i.e., is it desirable to encourage development in other countries? and, if so, are our current tactics the most effective and efficient ways to achieve this goal? Dr. Dichter addresses only the second question, but seems to conclude that because the status quo is ineffective, the entire pursuit should be abandoned. But in general the book is still highly worth reading if you're the least bit interested in development assistance -- it is both deeply enlightening and generally accessible.



4. This book is the keystone of any collection on the state of the art in modern thought on development assistance. It is easy to read, easy to understand, and presents a persuasive argument for change to the modern methods of so called "development." This books usefulness is not limited to the third world, as its lessons can apply just as easily to New Orleans as it can to the Congo.
   
   I first checked this out from the library, but I'm now picking up a copy (or maybe two) so I can have it on my shelf to cite from and to loan to friends and family.
   
   Highly reccomended.

No comments about Markets of Dispossession: NGOs, Economic Development, and the State in Cairo (Politics, History, and Culture).

4 comments about India: The Emerging Giant.

1. For anyone interested in economic development this book is a useful read. Detailing modern India, with all its tribulations and promises. In recent years, it appears that India has [finally] brought about a secular increase in its growth rate. No longer the parlous "Hindu rate of growth" of the 1980s and 90s, which caused it to lag far behind China.
   
   The author explains the complexities of Indian society. How, with its chaotic democracy and the myriad pressure groups, development can often get stunted or delayed for years. The contrast to China is stark. The Chinese system has been able to deliver consistently faster growth for almost 30 years.
   
   But the prospects for India seem brighter than its record. The book suggests that a rough consensus amongst its politicians might enable more reforms. For the sake of hundreds of millions of Indians who still live in stark poverty, and how deserve better from their betters, let us hope so.



2. Among all the books on India written by economists (recently there have been quite a few) this book has perhaps received the most favorable press. Reading this book one can easily discover the factors determining this disposition of the media. The book is a detailed work that does the delicate job of arriving at measured and researched judgments on India strikingly well. In effect the book dismisses the thick line distinction between optimists and pessimists on India's economic prospects. Arriving at measured judgments on India's prospects that are neither overtly pessimistic nor overtly optimistic required an in depth study of India's economic history in the post independence period. Seemingly straightforward this work had not been done. The reason is that to implement such a work required not one but several economists with their different specializations and also the expertise of social scientists from several other disciplines to handle the social and political complexity of India. Alternatively an individual author had to take upon himself/herself the extremely difficult task of wearing these different hats and more importantly in a way that the hats conformed to each other. This could be difficult but not impossible as the book demonstrates (by virtue of being written by a single author). In fact this is the essence of the book's thesis statement about India: difficult but not impossible.
   The book does a great job of compiling several important facts about India's economic performance. The most exciting aspects of the book come where it debunks several of the orthodoxies that fail to stand the test of hard numbers. An earlier book Freakanomics by Steven Levitt demonstrated the power of hard numbers. Those hard numbers led to determination of causality between events/issues that casual observation would never detect or guess, for example between abortion laws and reduction in crime. The hard numbers in this book do not discover new causality as much as they demolish some prevalent myths which are either not based on numbers or ex post can be thought of to be based on "soft" numbers. Thus, issues like when did poverty decline in India and what determined the changes in poverty levels have been challenged with some real hard numbers. Poverty, an issue of great economic and political importance in India has attracted several data engineers and data reverse engineers. The book presents numbers coupled with an easy and exciting tutorial on how to read the numbers correctly that is likely to cause some unemployment among these resources. At the same time, the critical analysis of numbers in the book is likely to generate new employment for social scientists.
   Generations of social scientists working on India for example have thought of Nehru (India's first prime minister) as the ultimate Fabian socialist who aspired for total government control and suppressed private enterprise. It is a different matter that no one sat down to check what the numbers could say on this. The book rigorously demonstrates that perceptions on this have been so far from truth. For those working on India's economic history, the book thus offers new employment indeed.
   This book is in fact a natural sequel to the epic "Economic History of India" by Dharma Kumar. If Economic History of India is the right book for the pre-independence India, this book is the right one for post independence India. The tenor of the book is definitely different written by stalwarts in different disciplines, the former by an economic historian and the latter by a trade economist. That these two books could combine in a seamless fashion exemplifies that rigorous research by masters always produces masterpieces independent of time.



3. This book is a must read for anybody wishing to dig deeper into India's recent impressive economic performance and undeniable presence in the world. It offers an outstanding analysis of post independent India's growth experience in the form of four distinct phases--relating it meticulously to the content and pace of economic reforms--and convincingly addresses key issues such as why did growth stall in post independent India, and why it took off again, how the process was affected by the country's complex political process, and where are the promises and challenges for the future. It also provides a very thorough account of the role of government in the macro and structural reform process. Finally, it raises several timely questions in light of the recent economic and financial strains confronting the world economy: is the government's fiscal policy sustainable or would it result in runaway inflation and/or economic crises? How urgent is the need for fiscal consolidation? What is the state of the financial system and does it need to be fixed? What are the risks of a balance of payments crisis--akin to that experienced in the early 1990s?
   
   Notwithstanding its very comprehensive analysis, the book reaches out to a wide spectrum of readers--its careful data analysis with a rich dose of charts and tables will definitely appeal the thorough academician who expects statements to be backed by adequate statistics; at the same time, the issues are close to the heart of any pragmatic policymaker, not just in India but in other emerging market economy. While this is not the only book on India I have read, it is among the very few that I will keep going back to for the timeless nature of its analysis.



4. Arvind Panagariya's "India: The Emerging Giant" is hands-down the most comprehensive and detailed study of post-independence Indian political economy written to date. There have been a number of excellent books on India written by economists on the post-reform period (A few notable examples: Suresh Tendulkar and T.A. Bhavani's "Understanding Reforms: Post-1991 India" (2007); T.N. Srinivasan and Suresh Tendulkar's "Reintigrating India into the World Economy" (2003); and Jean Dreze and Amartya Sen's "India: Development and Participation" (2002)). While each of the works just mentioned is insightful and detailed - respectively focusing on domestic political economy, international integration, and human development impacts - Panagariya's work successfully incorporates the insight and debates of fifty years of scholarship on India is a comprehensive, careful, balanced, and detailed manner. While I do take issue with a few nuances of Panagariya's conclusions, I cannot deny that they are well-founded and impeccably supported.
   
   The broad outline of the work is as follows. The first hundred pages provide an overview of the political economy of four phases in Indian economic policy - from the relatively mild control and heavy investment under Nehru, through industrial strangulation under Mrs. Gandhi, the piecemeal but sustained deregulation of the 1980s, and finally the phase-shift in Indian economic regulation that began with the 1991 crisis. The remaining 350 pages provide incisive and thorough analysis of the post-reform period - including policy proposals on everything from trade and finance, to agriculture, to health and education reform.
   
   I am currently polishing off my Master's thesis on Indian development, and this book is a stunner. I wish I had it as a source when I began writing - it is nothing short of epic. It is hands-down the best book on the Indian economy since Bhagwati and Desai's 1970 masterpiece "India: Planning for Industrialization." Highly recommended for students of India.