Insight

Volume 3 Issue 2

Transition The Folly of Fools Obsolete Innovation The Fate of Wildness

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Volume 3 Issue 2

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Contents

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Featured Illustrators

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Editor’s Note E

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Evan Williams Editor-in-Chief

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Volume 3 Issue 2

4 4]Qca( B`O\aWbW]\

Focus: Transition

Beyond the Economics of Fantasy Nick Dowson makes the case for a radical economic transition

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Multi-Handed Colonialism Alina Mika reassesses economic change in West Africa

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Helga Pavelkova

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4/26/13 11:52 AM

Volume 3 Issue 2

6 Â&#x2019; 4]Qca( B`O\aWbW]\

â&#x20AC;&#x153;The transition of West Africa into an open, exportoriented economy cannot be considered only through the prism of the terms development or underdevelopment.â&#x20AC;?

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4/26/13 11:52 AM

4]Qca( B`O\aWbW]\ 7

Basel Recommends

Vainius Glinskis considers the potential impact of new international banking regulations

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insight-issue6.indd 7

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4/26/13 11:52 AM

Volume 3 Issue 2

8 4]Qca( B`O\aWbW]\

The Chinese Innovation Puzzle

Ian Billett examines China’s pursuit of economic modernisation

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Eilidh Muldoon insight-issue6.indd 8

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4/26/13 11:52 AM

4]Qca( B`O\aWbW]\ 9

Eilidh Muldoon

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Overdrawn: The Plan to Fix Banking in Europe

Andrea Schmidtová discusses the future of bank regulation in the euro zone

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insight-issue6.indd 9

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4/26/13 11:52 AM

Volume 3 Issue 2

10 4]Qca( B`O\aWbW]\

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Transition to a New Energy Future Briana Pegado looks at the feasibility of Obama’s green economy agenda

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4]Qca( B`O\aWbW]\ 11

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@SQS\b abObWabWQa ]\ CA SQ]\][WQ U`]ebV acUUSab c\S[^Z]g[S\b Wa Ob O " gSO` Z]e O\R bVS SQ]\][g VOa ORRSR \SO`Zg $ " [WZZW]\ ^`WdObS aSQb]` X]Pa ]dS` !$ ab`OWUVb []\bVa) !$ X]Pa eS`S ORRSR W\ 4SP`cO`g OZ]\S O\R c\S[^Z]g[S\b TSZZ b] % % /UOW\ab bVWa POQYR`]^ bVS ·CA 3\S`Ug ! >ZO\¸ OW[a b] S\ac`S bVOb bVS b`O\aWbW]\ b] O acabOW\OPZS S\S`Ug SQ]\][g eWZZ Q`SObS Josie Vallely

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12 Â&#x2019; 4]Qca( B`O\aWbW]\

Volume 3 Issue 2

In Wildness is the preservation of the World Katie Roberts links our fate to the preservation of the natural world

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â&#x20AC;&#x153;Our â&#x20AC;&#x2DC;cultural dice is loaded in

favour of consumption for its own sakeâ&#x20AC;&#x2122;, as Andrew Simms argues. We are ignoring the cost of the means, and have lost sight of the ends. We must challenge the mantra of free markets and endless economic growth, as they will only result in our destruction.â&#x20AC;?

insight-issue6.indd 12

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4]Qca( B`O\aWbW]\ 13

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Josie Vallely

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Volume 3 Issue 2

14 1][[S\b

Comment

The Triangular Course of History Alina Mika examines the ‘Trilemma of International Finance’

A

insight-issue6.indd 14

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Helga Pavelkova

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Maid in India

Akanksha Middya examines the economic impact of gender inequality in India

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insight-issue6.indd 15

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4/26/13 11:52 AM

Volume 3 Issue 2

16 1][[S\b

An End to Broadband Blues

Clem Manger contemplates recession, modern technology and the music industry

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Emily Cullen

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insight-issue6.indd 16

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4/26/13 11:52 AM

1][[S\b 17

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Bidding Central Bank Independence Adieu Amy Read discusses the murky relationship between monetary and fiscal policies

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“Monetary and fiscal policies have always been thinly divided at best, and pressure from the current recession has further blurred this already fine line.”

4/26/13 11:52 AM

Volume 3 Issue 2

18 1][[S\b

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Morag McClenaghan

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Mort de la Bourgeoisie Nikita Chuyko assesses Hollande’s idealism

3

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Emma Elliott­Walker

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4/26/13 11:52 AM

Volume 3 Issue 2

20 1][[S\b

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“Even considering the little support that the Socialist Government has, Francois Hollande is doing a good job in becoming one of the most hated politicians of our time.”

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Pleased to Michu

Ben Cassidy looks to the future of the beautiful game

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4/26/13 11:52 AM

1][[S\b 21

Amy Wedge

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insight-issue6.indd 21

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“With Big Money came the ability to tempt the better players away from their teams.”

4/26/13 11:52 AM

Volume 3 Issue 2

22 Â&#x2019; 1][[S\b

Angela Merkel: The Saviour of Europe?

Mohammed Anas Irfan evaluates the Machtfrauâ&#x20AC;&#x2122;s step-by-step approach

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â&#x20AC;&#x153;Merkelâ&#x20AC;&#x2122;s plan for resolving the crisis has been one of implementing measures of austerity and fiscal integration. To achieve this, she has tried to persuade other European countries to give more power to Brussels, but has refused to accept any plans to federalise Europe.â&#x20AC;?

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1][[S\b 23

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Giving Wings to the Careers of CEOs

Alfio Puglisi discusses the impact of the recession on CEO career paths

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insight-issue6.indd 23

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“Starting work in a recession period shapes the CEOs management style, tending to make them more prudent and less risk loving.”

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4/26/13 11:52 AM

Volume 3 Issue 2

24 1][[S\b

The Spectre of Immigration Sara Baratto makes the economic case for immigration

2

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Josie Vallely

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4/26/13 11:52 AM

/QORS[WQ Â&#x2019; 25

Academic

An Insight into Obsession

Georgina Allen talks to Dr Martin Chick, a reader in Economic History at the University of Edinburgh, discussing government capital investment, the value of human life and the economists who influenced him.

Hi Martin, could you please tell us a bit about your current research?

acQV bVOb Pg ^cPZWQ aSQb]` \Sb W\dSab[S\b Wa # ]T 52> 74A 7 O[ W\bS`SabSR W\ eVg bVS abObS Q][Sa a] VSOdWZg W\b] QO^WbOZ W\dSab[S\b O\R eVg Wb bVS\ eO\RS`a OeOg

PcRUSb Qcba a] [O\g ]T bVS[ TSZZ ]\ Z]QOZ OcbV]`WbWSa QO^WbOZ W\dSab[S\b ^`]U`O[[Sa BVOb Wa Q]\aWabS\b eWbV ^]ZWQg T`][ bVS [WR '% a O\R 7 e]cZR 7 O[ e]`YW\U ]\ be] ^`]XSQba Ob bVS O`UcS Wa OZ[]ab bVS O\bWbVSaWa ]T eVOb [][S\b BVS TW`ab Wa e`WbW\U bVS TW\OZ Wa `S_cW`SR EVS\ g]c bVW\Y OP]cb bVS d]Zc[S ]T bVS =fT]`R 3Q]\][WQ 6Wa What do you see as the key reasons TSe ^`]XSQba bVS abObS R]Sa POQY Wb b]`g ]T 0`WbOW\ O\R bVOb VOa ZSR [S b] why the state moves away from capiaSS[a bVS`S Wa O ^`]QZWdWbg b] W\dSab W\ `SaSO`QV 9Sg\Sa O\R 6OgSY bVS caS tal investment, was it all political? ¾SfVWPWbW]\ W\dSab[S\baœ acQV Oa VWUV ]T bW[S O\R bVS O^^`]OQVSa b]eO`Ra a^SSR b`OW\a bVS PS\STWba ]T eVWQV O`S 7 QO^WbOZ ab]QY O\R QO^WbOZ T]`[ObW]\ 7b¸a ^]ZWbWQOZ W\ bVOb bVS`S O`S ^O`bWQc bVW\Y RcPW]ca O\R W\ bS`[a ]T eVOb SZaS T`][ bVS ' ¸a c^ b] >47 W\WbWObWdSa ZO` ^`]U`O[[Sa eVWQV ZSOR b] Z]eS` g]c [WUVb VOdS R]\S eWbV bVOb []\Sg =\QS 7 VOdS TW\WaVSR bVWa P]]Y 7 eWZZ QO^WbOZ W\dSab[S\b T]` SfO[^ZS Q]c\QWZ _cSabW]\OPZS W\ bS`[a ]T `SXcdS\ObW\U `Sbc`\ b] eVOb Wa SaaS\bWOZZg O abcRg V]caS aOZSa eVWQV Wa \]b ]\Zg O b`O\aTS` bVS SQ]\][g 7 e]cZR PS a^S\RW\U Z]ba ]T VO`[ O\R RO[OUS eVWQV Z]]Ya Ob ]T QO^WbOZ ab]QY T`][ ^cPZWQ b] ^`WdObS ]T []\Sg ]\ Z]ba ]T a[OZZ ^`]XSQba ]\ a][S ]T bVS [OW\ S\dW`]\[S\bOZ WRSOa Pcb bVS`S Wa OZa] `Sab`WQbW]\ ]\ bVS Z]QOZ `]ORa PSQOcaS Wb aSS[a b] [S TWaVW\U eVOZW\U Pcb OZa] Z]]Ya Ob abObS¸a OPWZWbg b] `SW\dSab bVS ^`]QSSRa g]c \SSR RWa^S`aSR a^S\RW\U eVWQV W\Q`SOaW\U Q]\QS`\ eWbV a[]YW\U ]dS` ]T bVOb aOZS POQY W\b] Q]c\QWZ V]ca R]Sa \]b VOdS VWUV [cZbW^ZWS` ZSOYOUSa bVS bV 1S\bc`g O\R bVS `WaW\U dOZcS W\U /\]bVS` W\bS`SabW\U ^]W\b Wa bVOb G]c eO\b b] UWdS []\Sg b] ^S]^ZS ]T Vc[O\ ZWTS eWbVW\ ^cPZWQ Sf^S\RWbc`S bVS VSOZbV R]e\ ]\ bVS U`]c\R `ObVS` bVO\ b] O\R a]QWOZ aSQc`Wbg PcRUSba `WaSa T`][ ZO`US 5S`[O\ Q][^O\WSa 7\ bS`[a ]T Sounds great, you mentioned writing `SXcdS\ObW\U bVS SQ]\][g 7 bVW\Y bVS`S about Keynes and Hayek in your book, '%# aSS[W\U b] a_cSShS ]cb W\dSab [S\b BVS`S Wa RSTW\WbSZg O QVO\US W\ \SSRa b] PS []`S a^S\RW\U ]\ QO^W what exactly are you discussing? Are dWSe ]T bVS eWZZW\U\Saa b] ^cb c^ T`]\b bOZ W\dSab[S\b eVWQV Wa \]b _cWbS bVS you mainly looking at the differences TW\O\QW\U ]T W\dSab[S\b ]\b] bVS aO[S Oa TWaQOZ abW[cZca 9Sg\Sa W\ bVS in their theories? ^cPZWQ P]]Ya >47 Wa O U]]R Sf^`Sa 5S\S`OZ BVS]`g bOZYa OP]cb O a]QWOZWaO bW]\ ]T W\dSab[S\b 7 aca^SQb bVS`S Wa O GSa 7¸[ Z]]YW\U Ob bVSW` `]e W\ bVS '! a aW]\ ]T bVOb BVS Q]\QS`\ eWbV >47 Wa bVS eOg W\ eVWQV bVS `WaY TOQb]`a ]\ QOaS T]` bVOb 7 e]cZR ^`STS` bVOb `]cbS W\ eVWQV >WS`] A`OTTO eOa OZa] W\ TW\O\QS [O\OUS[S\b O\R ^`]dWaW]\ ]T b] ]\S ]T O []`S dOUcS TWaQOZ abW[cZca d]ZdSR Q]\QS`\W\U 6OgSY¸a O^^`]OQV b] V]e QO^WbOZ W\dSab[S\b ]QQc`a eVOb aS`dWQSa O`S OZZ Pc\RZSR c^ W\ O aW\UZS `WaY TWUc`S eVWQV bVS\ VSZ^a b] RSbS` You also mentioned work on the risbVS `]ZS ]T bVS `ObS ]T W\bS`Sab Wa O\R [W\S bVS ^`WQS g]c ^Og T]` bVS ab`SO[ ing value of human life. How are you eVOb bVS W[^ZWQObW]\a O`S ]T QO^WbOZ ]T aS`dWQSa <]e bVOb aSS[a b] [S O looking at this?

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insight-issue6.indd 25

4/26/13 11:53 AM

26 /QORS[WQ

Volume 3 Issue 2

Wa Tc\RO[S\bOZZg O\ S[^W`WQOZ acPXSQb ]T bVS ZWdSa g]c O`S aOdW\U) a] g]c PS bigger role to play in current policy POaSR ]\ ]PaS`dObW]\) Wb b`WSa b] [OYS UO\ b] bVW\Y OP]cb ^S]^ZS ]T e]`YW\U decisions? aS\aS ]T eVOb ^S]^ZS ]PaS`dS O\R O\R \]\ e]`YW\U OUSa 7\ b]e\a g]c bVS`ST]`S Wb VOa b] PS cZbW[ObSZg O Q]\ \]bWQSR ^SRSab`WO\a eS`S SWbVS` dS`g =V gSa ]T Q]c`aS /\R 7 bVW\Y Wb¸a O bSfbcOZ acPXSQb g]c\U ]` ]ZR ^S]^ZS eVS`SOa ^S]^ZS aVO[S bVOb eVS\SdS` bVSg \]e W\bS` W\ QO`a eV] [WUVb PS bVS aOTSab ]T OZZ dWSe SQ]\][Waba ]\ bVS bSZZg bVSg O`S Who would you say are your main O\R QS`bOW\Zg []b]`QgQZWaba [WUVb PS \]b SQ]\][Waba bVSg O`S QWbg TW\O\QWS`a influences? ]T e]`YW\U OUS A] bVS]`SbWQOZZg O\R W\ BVS ^`]PZS[ eWbV bVWa Wa bVS`S O`S Tc\ ^`OQbWaS g]c ^`]POPZg RWR []`S b] Z]]Y RO[S\bOZ RWTTS`S\QSa W\ bVOb SQ]\] ! 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@SdWSe 27

Review

Waiting for the Great Leap Forwards Kati Venho reviews the new economics foundation’s The Great Transition

1

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