Astral Codex Ten

How Asia Works

24 min read

How Asia Works

Article

How Asia Works is a recurring book in the Astral Codex Ten archive, appearing 9 times across 9 issues between April 26, 2021 and February 10, 2024. The archive places it in contexts such as “I’ve read and reviewed How Asia Works”; “How Asia Works is Studwell’s guide to good economic policy”; “How Asia Works was written in 2014, a more optimistic time”. It most often appears alongside US, China, COVID.

Metadata

  • Category: Books
  • Mention count: 9
  • Issue count: 9
  • First seen: April 26, 2021
  • Last seen: February 10, 2024

Appears In

Source Context

Recovered passages from the original issue text. When the raw archive preserved outbound links inside the source passage, they are listed directly under the quote.

Mantic Monday: Predictions For 2021
April 26, 2021 · Original source
BLOG 86. ACX is earning more money than it is right now: 70% 87. [redacted]: 10% 88. [redacted]: 50% 89. [redacted]: 20% 90. There is another article primarily about SSC/ACX/me in a major news source: 10% 91. I subscribe to at least 5 new Substacks (so total of 8): 20% 92. I've read and reviewed How Asia Works: 90% 93. I've read and reviewed Nixonland: 70% 94. I've read and reviewed Scout Mindset: 60% 95. I've read and reviewed at least two more dictator books: 50% 96. I've started and am at least 25% of the way through the formal editing process for Unsong: 30% 97. Unsong is published: 10% 98. I've written at least five chapters of some non-Unsong book I hope to publish: 40% 99. [redacted] wins the book review contest: 60% 100. I run an ACX reader survey: 50% 101. I run a normal ACX survey (must start, but not necessarily finish, before end of year): 90% 102. By end of year, some other post beats NYT commentary for my most popular post: 10% 103. I finish and post the culture wars essay I'm working on: 90% 104. I finish and post the climate change essay I'm working on: 80% 105. I finish and post the CO2 essay I'm working on: 80% 106. I have a queue of fewer than ten extra posts: 70%
Book Review: How Asia Works
June 28, 2021 · Original source
How Asia Works is Studwell's guide to good economic policy. He gives a three-part plan for national development. First, land reform. Second, industrial subsidies plus export discipline. Third, financial policy in service of the first two goals.
Inline links: How Asia Works
How Asia Works's success stories are always Japan, South Korea, Taiwan, and China. Its foils are always Thailand, Malaysia, and the Philippines. These last three countries resisted calls for land reform, sometimes violently (when a Thai economist published a study saying land reform was needed, the king responded by banning the study of economics!) But as usual, the Philippines takes last place. It passed a series of laws that had "LAND REFORM" in the title, but all managed to be completely useless. In particular, they often said that landlords had to give workers their land, or some other mutually-agreeable concession of equal value. Landlords were legally savvier than tenants, and had nearly unlimited power over them, and the Filipino government was too corrupt and useless to monitor any of this, so landlords found ways to get workers to agree to various things which were legally worker ownership but realistically meaningless. According to a 2007 survey, "seven out of ten 'beneficiaries' of land reform on the island of Negros said they were no better off than before reform". Filipino farming remains centralized and low-yield.
What now? Studwell uses the last chapter to warn China that its development model can only go so far. Dictatorship and state planning can lift a country from poor to middle-income, but so far everywhere that's become truly rich has also been free and democratic. He doesn't think that's coincidence; it takes a more decentralized approach to explore the technological frontier than to play catch-up (see also Global Economic History: A Very Short Introduction). How Asia Works was written in 2014, a more optimistic time, and I don't know whether he still thinks this.
Inline links: Global Economic History: A Very Short Introduction
Highlights From The Comments On "How Asia Works"
July 01, 2021 · Original source
I made a mistake in the email notifications, so if you didn’t know I wrote a review of Joe Studwell’s How Asia Works earlier this week - well, now you know.
Inline links: a review of Joe Studwell’s
Noah Smith is overall a big fan of How Asia Works, but took this review as an opportunity to write about What Studwell Gets Wrong. His first point:
Inline links: What Studwell Gets Wrong
Noah then mentions the same thing some commenters did - that southern Asian economies seem to be doing better since How Asia Works got published - and asks:
Model City Monday
July 05, 2021 · Original source
I’ve been thinking about this after reading How Asia Works. If Studwell is right, financial hubs are a completely different thing from large-scale development. The great charter city success stories - Dubai, Singapore, Hong Kong - are all stories of cities that became financial hubs. These are great, but you can only have so many financial hubs in a certain region before it gets kind of saturated. If eg Prospera becomes a financial hub for Central America, that’s great and they can be really proud of themselves - but it wouldn’t necessarily be a scaleable plan to lift all of Latin America out of poverty.
Inline links: How Asia Works
Links For July
July 23, 2021 · Original source
25: How Asia Works (reviewed here) argued that agricultural land reform (ie redistributing land from large landholders to peasants) was an important part of the industrializing process that helped East Asia become First World. While reviewing it, I wondered if pushing land distribution might be an effective altruist intervention. Now the organized EA movement (in the form of the increasingly prominent Rethink Priorities group) has published an analysis of it as a cause area. I interpret their conclusion as being that it’s not entirely clear that smaller farms produce more, and although it’s possible that they do, land redistribution is so politically intractable that it probably isn’t worth focusing on this too hard unless an unexpected opportunity comes up.
Inline links: here, an analysis of it as a cause area
Grading My 2021 Predictions
January 24, 2022 · Original source
BLOG 86. ACX is earning more money than it is right now: 70% 87. [redacted]: 10% 88. [redacted]: 50% 89. [redacted]: 20% 90. There is another article primarily about SSC/ACX/me in a major news source: 10% 91. I subscribe to at least 5 new Substacks (so total of 8): 20% 92. I've read and reviewed How Asia Works: 90% 93. I've read and reviewed Nixonland: 70% 94. I've read and reviewed Scout Mindset: 60% 95. I've read and reviewed at least two more dictator books: 50% 96. I've started and am at least 25% of the way through the formal editing process for Unsong: 30% 97. Unsong is published: 10% 98. I've written at least five chapters of some non-Unsong book I hope to publish: 40% 99. “On The Natural Faculties” wins the book review contest: 60% 100. I run an ACX reader survey: 50% 101. I run a normal ACX survey (must start, but not necessarily finish, before end of year): 90% 102. By end of year, some other post beats NYT commentary for my most popular post: 10% 103. I finish + post Rise And Fall Of Online Culture Wars: 90% 104. I finish + post Don’t Give Up On Having Kids Because Of Climate Change: 80% 105. I finish + post Carbon Costs Quantified: 80% 106. I have a queue of fewer than ten extra posts: 70%
Inline links: Rise And Fall Of Online Culture Wars, Don’t Give Up On Having Kids Because Of Climate Change, Carbon Costs Quantified
Your Book Review: Public Choice Theory And The Illusion Of Grand Strategy
June 24, 2022 · Original source
The press should include Tetlock’s superforecasting/prediction markets when reporting the forecasts by the military and national security bureaucracy at public interviews, official reports, and congressional testimony 7. Conclusion And Further Readings Gordon Tullock, one of the founding fathers of public choice theory who coined “rent-seeking”, has always wished for a book like this, and now it exists. It is clear to me that Hanania’s public choice model should usurp the conventional unitary actor model, and any scholar who insists on American grand strategy is deluding themselves. The book hasn’t been reviewed by mainstream outlets (which probably only reviews “pop” nonfiction), but have been unanimously praised by scholars in adjacent fields: Steven Pinker praised it as “cynical but probably accurate”; Robin Hanson was “quite impressed”, Byran Caplan, whose work The Myth of the Rational Voter was cited extensively by Hanania, praised it as “eye-opening”; Tyler Cowen praised the book as impressive in spite of finding Hanania’s view to be more sceptical than his own — a sentiment I share after reading about the East Asian economic miracle (the greatest anti-poverty program in history) facilitated by American intervention in How Asia Works (another contrarian economics-related work I’ve reviewed). Russian Invasion of Ukraine At the time of writing, Russia is invading Ukraine, so it is interesting to see how well the public choice model’s predictions fit. Indeed, the unitary actor model can describe autocratic states to some degree — to understand Russia we only have to get into the head of Putin (the model still falls short in accounting for the oligarchs who run the mafia state). Ukraine is central to Putin’s ideology and subjectively important to Russian society, and the desire to obliterate and absorb the nation of Ukraine far predates the history of NATO (see also Adam Tooze’s excellent essay on understanding Russia as a strategic petrostate). As Hanania writes on his Substack (worthy of your subscription, by the way)4: We know what the Russians want. They have made clear, openly and consistently, that they do not want NATO to keep expanding. When it became apparent in December that an invasion was on the table, the US started a diplomatic process that has involved trying to work out concessions on other things, while refusing to take NATO membership for Ukraine off the table. Putin has become Satan in liberal imagination, and when it comes to the culture war, the emotional response is overwhelming. Hanania writes: Brexit, Trump, and the rise of Orban and other right-wing populists in Europe have helped solidify a narrative in which Russian hackers and influence operations are behind everything liberal elites find distasteful, from opposition to Syrian refugees to bans on Critical Race Theory. Here’s a website laying out all the things Russia has been accused of “weaponizing” in the media, including dolphins, federalism, and the weather. The details of debates surrounding the wisdom of NATO expansion and whether Ukraine actually matters to the United States are lost in the larger story, as emotional denunciations of Putin as the source of all anti-democratic activity drives attitudes and policies. Inconvenient facts are ignored because it’s not really about “democracy,” “international law,” or any of the other words they use to obscure the fact that it’s culture wars all the way down. And the Western response is driven by extreme public outcry to an unprecedented extent: It’s all a competition to see who can signal “I hate Putin” the most, but Germany was still shutting down all its nuclear power plants to rely on Russian gas despite warnings from every other EU state (Russia accounts for 40% of Europe’s gas imports) — so much for grand strategy. That is not to excuse Putin’s invasion (he is, after all, the aggressor) and no, Ukraine is not “the West’s fault” as Mearsheimer has claimed in his viral lecture, but “NATO’s door remains open” for me and “we're going to start WW3 because you're in my sphere of influence” for thee is no grand strategy at all. Indeed, the irrational Western response is not predictable by the unitary actor model, but by the public choice model. Hanania writes: If you were going to cut Russia off from SWIFT, for example, why wouldn’t you announce it beforehand? The whole point of a punishment like that is supposed to be its deterrent effect, but if you don’t communicate that a specific action will happen, then it can’t influence behaviour. The answer here seems to be a lack of grand strategy, with leaders responding to events according to emotion and public relations more than anything. Cutting off SWIFT, or even threatening to do so, seems extreme before an invasion occurs, but not after it has begun. The West cannot rely on sanctions to make Russia abandon its core national security interests, which at the very least include a no-NATO commitment, the acceptance of the secession of Donetsk and Luhansk, and the recognition of the annexation of Crimea. Sanctions will also push Putin closer to Beijing, and the US will continue down the self-defeating path of alienating both of the other two superpowers — so much for American grand strategy. Hanania writes: Even if Putin has maximalist aims at this point, that doesn’t mean sanctions are worth doing. Their costs are high and they may have major consequences for the global economy. One has to consider the possibility that they make Russia more repressive at home and more brutal in its persecution of the war. Putin is getting sanctioned, but ordinary Russians are getting cancelled. The Metropolitan Opera of New York has announced it will no longer stage performers who have supported Russian President Vladimir Putin. Carnegie Hall has done the same, and the Royal Opera House in London is cancelling a planned Bolshoi Ballet residency (one of the oldest and most prestigious ballet companies in the world). Eurovision banned Russia. Tchaikovsky is cancelled. As Tyler Cowen writes, cancel culture against Russians is the new McCarthyism. The culture war has morphed into a hyperreal form on the Internet. Just as COVID is the first pandemic in the Age of Twitter, so the Ukraine invasion is, in some sense, the first war in the Age of Twitter. As it unfolds, we are seeing many disturbing parallels to the events of early 2020. People are rapidly normalising once-fringe ideas like a NATO-enforced no-fly zone (while completely oblivious to the fact that it means shooting down Russian planes and causing WW3), direct US conflict with Russia, regime change in Moscow, and even, incredibly, the use of nuclear weapons. The overnight flips on German defence spending and SWIFT are like the overturning of conventional public health policies on masking and lockdowns. We have entered the age of shitpost diplomacy, as coined by Tanner Green, in which the official Twitter account of the US Embassy in Kiev literally posts memes to spite Putin: A Russian sixth-grader could explain why celebrating the glories of Kievan Rus does not subvert Putin’s claims about the history of the Russian nation so much as reinforce them. Just like Hong Kong’s protests, Ukraine has won the meme war with utterly lopsided propaganda and unanimous international support on the Internet. As Yoshimi writes: Floating ghostlike above it is our war, the myth of the ‘Ghost of Kyiv’, ace MIG-29 pilot who has apparently shot down six Russian planes, or the legend of the Ukrainian soldiers defending an island outpost who replied “Russian warship go fuck yourselves” to a surrender offer and may or may not have died heroically, or two Russian II-76 transport aircraft that maybe were shot down near Kiev, or videos of air strikes or dead bodies which variously are Russian or Ukrainian until they turn out to be from Gaza six years ago, or the viral video of an old Ukrainian woman telling off a Russian soldier by offering him sunflower seeds so when he dies, sunflowers (Ukraine’s national flowers) will sprout from the soil. We’re raising funds for the Ukrainian army on crowdfunding apps and giving advice to the civilians being handed assault weapons about how to disable tanks, sharing weird homophobic pictures of Putin as a gay icon and spamming Russian government posts. Ukrainian president Volodymyr Zelensky has made the decision to stay and fight rather than flee like most would-be leaders who go all in for American foreign policy, and now is being deified by us as “badass”, “a true leader”, etc. etc., alongside his people, whose resistance to authoritarianism we are told is unparalleled in the modern world. After all, so it goes, who could be next? And like in Hong Kong, despite winning the culture war in hyperreality, the actual war in reality is won by the side with overwhelming military might, not morality. The real war is where Ukrainians are experiencing the genuine life-shattering effects of military conflict. It matters because this is the first time Western response is driven by Twitter outcry, and it will not be the last. A New EA Cause? Besides Hanania’s recommendations in the last section (which he admits are more or less impossible in an excellent interview with Caplan), a worthy EA priority might be to somehow turn the public tide on sanctions, which literally kill more people than Putin. Americans should be appalled by the atrocity committed in their names. The banality of the incompetence of foreign policy elites does not excuse their evil. With how entrenched the special interests are, I have no idea if it’s even worth trying, but at the very least the sheer amount of suffering and death from sanctions should be made common knowledge. Nuclear security is one of the top priorities in Effective Altruism, per 80,000 Hours, Future of Life Institute, and Our World In Data. Toby Orb, who wrote the definitive book on existential risk, The Precipice, estimates x-risk from nuclear war to be ~1 in 1000 in the next century. Luisa Rodriguez estimates a 1.1% chance of nuclear war each year and that the chances of a US-Russia nuclear war may be in the ballpark of 0.38% per year; summarised by Max Roser as: Nuclear risk is neglected by the public because of Pax Americana since the collapse of the USSR, and is not discussed as often in EA as it’s thought to be relatively well-funded and mainstream, but in fact major donors like the MacArthur Foundation have been withdrawing funding. As Joan Rohling details in an 80,000 Hours podcast there is much to be done, especially when Ukraine gave up their nuclear arsenal in 1994 in exchange for Russia’s promise to never threaten or use military force against them. A worthwhile adjacent cause area might be de-escalation of public outcry to reduce x-risk from nuclear war beyond just regular anti-proliferation efforts — even a Russian specialist from the RAND Corporation is surprised by how much public outrage is driving policy: Even just the pace of the sanctions: we went to 11 out of 10 in like two days — farther than many expected we’d ever get in short order. And I think the same is true about these military assistance initiatives. We’re just trying to do something because there’s a public demand for action. So that’s what worries me, that the sort of public outrage that’s being channeled in Western democracies through political systems could result in decisions that prove ultimately unwise. Despite how odd it is that some wars are “legal” while others aren’t, we should be glad UNSC exists as much as everyone laughs at how useless the rest of the UN is. All is fair in love and war, but international norms is all that stands between us and nuclear annihilation. It is hard to emphasise just how delusional it is for the public to fixate on no-fly zones — I, like Scott, am surprised we’re still capable of jingoism. 80,000 Hours has updated their top career recommendations to include China specialist to improve China-Western coordination on global catastrophic risk, which seems more important after reading how irrational and captured the American foreign policy apparatus is. As Hanania writes, “great power competition” is an anachronism. If Ukraine is the first war warped by hyperreality, it won’t be the last. Now that US foreign policy elites have driven Putin into the arms of China, let’s hope IR specialists can imbibe the public choice model instead of antagonising yet another nuclear rival. Public Choice Theory and the Illusion of Grand Strategy is an important work because it raises the sanity waterline, which at the least should make us stop killing millions for no reason, and at the most should make the human race more knowledgeable of how to prevent total extinction from nuclear armageddon. Pax Americana is dead, but a multipolar world will be more humane. Endnotes In the fiscal year 2018, the top five government contractors were all weapons manufacturers, with Lockheed Martin in first place at $40.6 billion. The Department of Defence spent $358 billion on contracting, ten times higher than second place Department of Energy. Collective action problems that stop a bunch of smaller companies from effectively influencing policy are no hindrance for companies like Lockheed Martin.
Inline links: Gordon Tullock, cynical but probably accurate, Robin Hanson, The Myth of the Rational Voter, eye-opening, impressive, reviewed, predates, essay, writes, website, public outcry, https://substackcdn.com/image/fetch/$s_!R3g3!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F693f0593-7460-4fb0-bc4a-e185cf6f0e06_964x506.png, not, viral lecture, NATO’s door remains open, we're going to start WW3 because you're in my sphere of influence, writes, writes, cancelled, banned, cancelled, writes,, German defence spending, shitpost diplomacy, posts, https://substackcdn.com/image/fetch/$s_!j4gR!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F3c5db00c-e420-4b54-b826-b85d9ddf186d_900x647.png, writes, interview, 80,000 Hours, Future of Life Institute, Our World In Data, The Precipice, ~1 in 1000, estimates, summarised, https://substackcdn.com/image/fetch/$s_!PRc2!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Fe90b1bb5-d84b-45dc-b9fa-2edddbf6b9fa_1600x1006.png, Pax Americana, MacArthur Foundation, details, gave up, surprised, Scott, jingoism, China specialist, captured, writes, the sanity waterline, a multipolar world will be more humane
The Question Of Separatism
May 19, 2023 · Original source
This wasn’t of any interest to London or other European cities. The Bostonians weren’t nearly as good or efficient at making metal tools as Londonians were. So Boston couldn’t export the metal tools back to Europe — but it could use them internally, and also export them to other American cities that were about as poor as Boston was, or poorer. Internally, this meant the spark of a manufacturing economy in Boston, as easily obtained metal parts made it easier for other Bostonians to replace other imports from European cities, and eventually develop a symbiotic network of industries. It also meant that the revenue from fish and timber could be used to import new things, including new innovations from European cities (which would later become opportunities for more import replacement). And because there were customers for Boston-made metal goods in New York and Philadelphia, and eventually Cincinnati and Chicago and Pittsburgh as these cities came into existence, it meant additional revenue for Boston that it could reinvest into developing its production further. For Jacobs, virtually all city development can be seen through the lens of import replacement (which, to be clear, has approximately nothing to do with policies of import substitution industrialization; import replacement is not a policy, but a naturally arising free market phenomenon). Her book contains many other examples than Boston, such as Venice, which started off in the early Middle Ages as a small town that sold salt to Constantinople, but then diversified its production to become one of the wealthiest cities of its time; or Taipei and Kaohsiung, two cities in Taiwan that kickstarted their development not long before the 1980s, by forcing expropriated landlords to invest into local import-replacing businesses. One is reminded of Scott’s review of How Asia Works. Import replacement, then, is what makes cities economically powerful. And this power is so great that it causes ripples in distant places. In fact it is the main reason that anything happens at all in non-city areas. Jacobs gives the example of Bardou, a small village in southern France. Bardou looks like this: To the extent that Bardou ever had an economic life, that life was almost entirely driven by distant cities. In ancient times, the area was populated because of iron mines nearby. The mines were exploited to serve the needs of people in the distant cities of Lugdunum (Lyon), Nemausus (Nîmes), or even Rome. As Jacobs notes, we could say that the mines served “the Roman Empire,” but that would be another example of using the abstraction of sovereign countries when we should instead be specific. It was Lugdunum, Nemausus and Rome that wanted the iron — not some random rural area of the empire, and certainly not the part of the empire in which Bardou was located. Eventually the mines and the region were abandoned. More than 1,000 years later, peasants moved into the area and built the modern village. For centuries they lived a wretchedly poor life of subsistence farming. No cities exerted any influence on it, and indeed nothing happened. Then, in the 19th century, the people of Bardou learned that they could improve their situation by moving to distant cities such as Paris, and most of them did. Again, the force wasn’t being exerted by “France”; Bardou was already part of France. The force was specifically being exerted by Paris and other cities with jobs for poor peasants. By the 1960s, only one old man was left. That’s when two foreign visitors, a German and an American, happened upon the village, decided to buy most of it, revitalized it, and turned it into a tourist spot (and even, for a brief time, into a set for a movie company). Today Bardou is a popular place for travelers — who are mostly city people, and spend money that was mostly earned in cities. The Bardou story contains examples of several of the forces that import-replacing cities radiate, according to Jacobs. These forces are central to her thinking. There are five of them: Markets. Cities house a lot of people who need a lot of goods and services, and are therefore strong markets to sell goods and services to. This was the force that acted on the Bardou area when it was a Roman mining region, and again today when it functions as a tourist spot for city vacationers.
Inline links: import substitution industrialization, Scott’s review of, Bardou, https://substackcdn.com/image/fetch/$s_!RfMs!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc119b085-f7b3-4e09-a586-9f4fc4c2ea21_1200x1600.png
ACX Grants Results 2024
February 10, 2024 · Original source
Mark Webb, $5,000, to study land reform. You might know Mark better as ACX commenter sclmlw, and you might remember land reform from my review of How Asia Works as a key part of the process by which countries move up the development ladder. There are a few organizations working on lobbying for land reform on a political level. Mark wants to try something different and just buy land directly. This would be very expensive to do at scale, but I talked to Mark and he has a pretty well-thought-out plan to start small, prove the concept, and gradually court bigger and bigger funders. I am honestly a little skeptical, but Mark has put a lot of thought into this project, and it’s not like anyone else’s land reform ideas are working very quickly, so I’ve agreed to grant a starting $5,000 to help him get started.
Inline links: my review of How Asia Works