Astral Codex Ten

World Bank

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World Bank

Article

World Bank is a recurring organization in the Astral Codex Ten archive, appearing 13 times across 13 issues between June 28, 2021 and June 18, 2025. The archive places it in contexts such as “most countries practice bad economic policy, partly because the IMF / World Bank / rich country economic advisors got things really wrong”; “Since the 1980s, the World Bank has instead promoted microfinance”; “Each time the US, the World Bank and the IMF urged him”. It most often appears alongside China, United States, Africa.

Metadata

  • Category: Organizations
  • Mention count: 13
  • Issue count: 13
  • First seen: June 28, 2021
  • Last seen: June 18, 2025

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.

Book Review: How Asia Works
June 28, 2021 · Original source
Joe Studwell claims this isn't mysterious at all. You don't have to bring in culture, genetics, or anything complicated like that. Japan, South Korea, Taiwan, etc, just practiced good economic policy. Any country that tries the same economic policy will get equally rich, as China and Vietnam are discovering. Unfortunately, most countries practice bad economic policy, partly because the IMF / World Bank / rich country economic advisors got things really wrong. They recommended free markets and open borders, which are good for rich countries, but bad for developing ones. Developing countries need to start with planned economies, then phase in free market policies gradually and in the right order. Since rich country economists kept leading everyone astray, the only countries that developed properly were weird nationalist dictatorships and communist states that ignored the Western establishment out of spite. But now the economic establishment is starting to admit its mistakes, giving other countries a chance to catch up.
Will we witness an economic transformation like Japan, Korea, Taiwan or China’s again? The answer is quite possibly not, for one simple reason. Without effective land reform it is difficult to see how sustained growth of 7-10 per cent a year - without fatal debt crises - can be achieved in poor countries. And radical land reform, combined with agronomic and marketing support for farmers, is off the political agenda. Since the 1980s, the World Bank has instead promoted microfinance, encouraging the rural poor to set up street stalls selling each other goods for which they have almost no money to pay. It is classic sticking-plaster development policy. The leading NGO promoting land reform, US-based Landesa, is today so pessimistic about the prospects for further radical reforms in the world’s poor states that it concentrates its lobbying efforts on the creation of micro plots of a few square metres. These plots supplement the diets and incomes of rural dwellers who work in otherwise unreformed agricultural sectors. From micro interventions, however, economic miracles will not spring.
Inline links: Landesa
Korean bureaucrats were reading not the rising American stars of neo-liberal economics, or even Adam Smith, but instead [German development expert and tariff proponent] Friedrich List. The Korea and Taiwan scholar Robert Wade observed when he was teaching in Korea in the late 1970s that ‘whole shelves’ of List’s books could be found in the university bookshops of Seoul. When he moved to the Massachussetts Insitute of Technology, Wade found that a solitary copy of List’s main work had last been taken out of the library in 1966. Such are the different economics appropriate to different stages of development. In Korea, List’s ideas for a national system of development were being adapted to a country with a population far smaller than Germany’s or Japan’s, and with a mid-1970s GDP per capita on par with Guatemala. The ideas were implemented in the teeth of the worst international trading conditions for a generation featuring two unprecedented energy crises. It did not matter. Park motored on regardless. Each time the US, the World Bank and the IMF urged him to back away from his state-led industrial policy he agreed - and then did precisely nothing (or occasionally a very little ). Park was a leader of conviction, and his convictions were based in history.
Model City Monday
July 05, 2021 · Original source
They bring up the usual reasons to think charter cities are hard, but their most damning point is that even if a city gets successfully founded, it might not actually increase growth. There aren’t enough existing charter cities to draw firm empirical conclusions, but the closest existing analogue is Special Economic Zones. A World Bank study finds that SEZs don’t consistently grow faster than their host countries. Some very conspicuously do (eg Dubai, Shenzhen), but these are matched by a few that grow less quickly, and overall it’s kind of a wash. The study tries to analyze whether there are consistent features of SEZs which make some do better than others, but it can’t really find any.
Inline links: World Bank study
It then fine-tunes some of CCI’s models, incorporating the sort of pessimistic assumptions about growth that make sense in the context of the World Bank study, and finds that although they are nice, they don’t reach the same level of cost-effectiveness as other GiveWell top charities, even on time scales of decades.
Mark Lutter of CCI broadly supports the research, but argues that the World Bank study might underrate CCI’s work. The study only investigated SEZs between 0.5 and 10 square kilometers. This is more like a neighborhood than like a real city (Central Park is 3.5 square kilometers, Manhattan is 87, Shenzhen is 320). But Lutter thinks that “a city is the smallest unit that can support economic development”. He also thinks the SEZs were comparatively weak - slightly lower taxes or something boring like that, compared to the total overhaul involved in charter cities. He comes up with a reference class that includes Shenzhen, but not a lot of SEZs that don’t work, and says this is the proper comparison.
Inline links: broadly supports the research
Dictator Book Club: Orban
November 04, 2021 · Original source
(source: World Bank) Here’s fertility rate for various Eastern European countries. Hungary doesn’t really seem like a standout.
Inline links: World Bank
Your Book Review: The Anti-Politics Machine
May 27, 2022 · Original source
In 1975, the World Bank released a report on Lesotho: a tiny, mountainous country surrounded on all sides by the much larger nation of South Africa. This report, written by and for outside “development experts”, set out to identify problems that were holding the country back which could be solved by simple, technical “interventions”.
But the process by which we go from data to narrative is still relatively casual and poorly theorized, and this step was the main source of the World Bank group’s troubles. In the data-gathering process, they noted several facts:
Many families had large flocks of underfed cattle. Even when money was tight, the team rarely observed cattle sales. Each of these is true, but they need to be set within a larger narrative to inform the work of “development.” Instead of doing the ethnographical and historical work it would take to understand Lesotho’s particular history, political system, and culture, the World Bank’s team of experts substituted their notions of what “less-developed countries” are like, shaped just as much by countries very different from Lesotho and the array of “solutions” the team had to offer as they were by anything to do with the context they’d set out to study. To the economists writing the report, the fact that cattle were not being sold was a clear sign of a market failure -- surely this meant that either the cattle were too low quality to sell, or the population did not have access to markets. Since this story (1) made sense of a data point that was otherwise confusing, (2) fit with economists’ intuitions for why a person might not sell their “product”, and (3) lent itself to being solved with standard tools (programs to improve cattle quality! programs to connect people with markets!), it seemed like a natural and parsimonious explanation of the facts. So natural and parsimonious, in fact, that the authors don’t seem to have thought to check whether it was actually true. The same sort of jumps happened in interpreting the other two facts. The authors assumed that, as a “less-developed country”, Lesotho’s rural economy was driven by agriculture. The fact that income from crops was low was therefore a sign that the population were primarily “subsistence” farmers who could be “developed” with access to better agricultural tools. As further evidence for this theory, the failure of agriculture was a perfect explanation for why young men had recently (it was assumed) been forced to travel across the border for work. While Ferguson focuses on Thaba-Tseka, I think the “development discourse” lens he describes is easiest to understand by imagining how it might function in a very different context. If the same World Bank economists were to study an American suburb, they might learn that: Most households grow fruits or vegetables in their yards, but make little profit by selling them.
Your Book Review: Public Choice Theory And The Illusion Of Grand Strategy
June 24, 2022 · Original source
Counterinsurgency (COIN) In the case of Afghanistan, the Bush administration was so eager to go to war it avoided any other options. No evidence has ever emerged that Taliban (the political faction that ruled Afghanistan at the time) itself knew about the 9/11 attacks, much less planned it; the Afghan ambassador to Pakistan condemned the attacks on 9/12. “We don’t negotiate with terrorists” became the standard American line — before the war began, Taliban was willing to discuss bin Laden’s fate but the White House Chief of Staff refused; after the war began, Taliban was willing to hand over bin Laden to a third country for trial but White House refused just the same. In the case of Iraq, Bush was so eager to, in his own words, “Fuck Saddam, We’re taking him out” as early as February 2002 (and floated the idea of invading Iraq to Tony Blair), that on 9/17 Bush told his cabinet “I believe Iraq was involved, but I’m not gong to strike them now. I don’t have the evidence at this point.” The administration couldn’t find any evidence directly tying Saddam to 9/11, so they settled on the now-discredited lies of WMDs and “ties” between al-Qaeda and Iraq. “We don’t negotiate with terrorist”’ extended to the non-terrorist Saddam — before the war, Saddam was cooperating with the International Atomic Energy Agency; after the war began, Saddam was willing to accede to practically all Amercan demands but White House refused communication just the same. Just like in Afghanistan, the Bush administration had no interest in exploring any other option short of war. Two feuding factions within the Bush administration had little contact with each other: the war hawks (neocons like Cheney i.e. products of Lockheed Martin), supported by the Pentagon, did not want to do nation-building; those partial to nation-building (the State Department) did not want war. Bush agreed with the former at the start of the war, but once Saddam was removed, sided with the latter. The postwar plan for Afghanistan was officially determined by the Bonn Agreement of 2001, but neither Bush nor Cheney consider it to be worthy of much thought in their memoirs despite years of hindsight; the postwar plan for Iraq lay entirely in the hands of Paul Bremer as subsequent Deputy Committee meetings on Iraq stopped being conducted — there wasn’t a single meeting to discuss disbanding the Iraqi army that left 400,000 jobless former soldiers prime for insurgency. The Iraq war dealt with no real crisis but cost the US trillions of dollars and thousands of lives, plunged Iraq into two decades of intermittent civil war — a candidate for the worst American foreign policy failure in history, but a success for the careers of Bush (who won reelection and congressional seats) and his advisors who led the US into Baghdad (who went on to work for think tanks, the World Bank, and the Trump Administration). Once again, there is no grand strategy as each party was only self-interested in short-term gains. The Earlier Obama Years As a candidate, Obama campaigned in support of the Afghanistan war, and indeed his first foreign policy decision as president was to send thousands of additional troops to Afghanistan, largely due to overwhelming political pressure from top generals like Petraeus and McChrystal who boxed Obama into sending more troops by limiting the options presented to Obama, blatantly lobbying in press interviews, and threatening dire consequences like resigning from commanding troops in Afghanistan. We know Obama was hesitant as he announced at the same time that American troops would begin withdrawal in July 2011 (by 2015 he announced that American troop presence would stay in Afghanistan indefinitely). Obama’s second decision was to bomb al-Qadhafi in the name of Libyan regime change, due to domestic but this time also international political pressure from the heads of France and the UK who would face political embarrassment if Qadhafi’s regime, despite months of bombing and sanctions by the US-led coalition, recaptures the rebel-held Benghazi. NATO forces bombed al-Qadhafi’s convoy. Ten days after the killing of the dictator, the bombing campaign ended, and the subsequent decade of intermittent civil war faded from the American consciousnesss. Obama’s third decision was to cripple Assad’s regime in Syria with sanctions and by arming and training rebels, again due to overwhelming political pressure from hawkish ‘foreign policy community’ who still criticise Obama for having ‘done nothing’ despite spending $1 billion through the CIA and $500 million through the Pentagon, and crushing the Syrian economy. Top officials in the Obama administration admitted that assisting rebels would not change the course of war, nor was there any way to prevent arms from ending up in the hands of ISIS and al-Qaeda. Indeed, the Syrian civil war only got bloodier with American involvement. The Later Obama Years Obama’s first major decision was the war on ISIS with the reentry into Iraq from which all American troops withdrew just a few years ago in 2011, due to overwhelming political pressure and in the face of a potentially humanitarian catastrophe (ISIS was going to massacre the Yazidi religious sectarians in Mount Sinjar). This time, the United States would roll back all territorial gains of the Islamic State by working with the Iraqi government, Shia militias in Iraq, and the Kurdish-led Syrian Democratic Forces. Obama’s second decision was signing the Joint Comprehensive Plan of Acton (JCPOA) with Iran to stop its nuclear weapons programme in exchange for UN and EU sanctions to be lifted, $100 billion in assets seized by the US to be returned to Iran, and the US to stop implementing secondary or third-party sanctions. This time, Obama faced unusually significant pressure from Congress which passed the Iran Nuclear Agreement Review Act by overwhelming majority to be able to revoke JCPOA, but Obama signed JCPOA with Iran nonetheless as enough Democrats would be able to sustain a veto. This was the one and only decision that made sense from the perspective of classical IR theory — American leaders doing things they think are right for the country without a clear political payoff. Indeed, the Iranian nuclear agreement is the exception that proves the rule of public choice, as the deal was only possible near the end of Obama’s second term, and at the end cancelled by Trump upon entering office — a president’s foreign policy accomplishment made without the support of concentrated interests only lasted as long as his administration. 6. Learning From American Foreign Policy Failures IR theorists widely acknowledge that it was a mistake to invade Vietnam and Iraq, and even the war in Afghanistan went on for too long even if it was originally justified, but these scholars have yet to comprehend the shortcoming of the unitary actor model in accounting for the lack of rational cost-benefit analysis. Comparing the pre-invasion GDP of the countries to what the US has sacrificed (even setting aside the number of lives lost), the GDP-to-money-spent ratio has been 1:74 in South Vietnam, 1:43.3 in Iraq, and a staggering 1:396 in Afghanistan. In other words, the United States has spent in Afghanistan the equivalent of that country’s level of production for close to four centuries. Cost-benefit analysis also fails outside the major wars: NATO, despite the collapse of the USSR, is willing to absorb practically any country including states that can drag the US into war without contributing anything to American security; the military expenditure in Japan and South Korea, despite anti-China talks in Washington, are either flat or declining. While an utter failure in humanitarian and economic terms, American foreign policy has a been a resounding “success” from the public choice perspective: Lockheed Martin received $36 billion in government contracts in 2008 alone (more than any company in history)
Galton, Ehrlich, Buck
May 15, 2023 · Original source
New York Times ad from 1968 (source), urging readers to write their representatives urging them to “ initiate a crash program for population stabilization”. Signatories include a former Federal Reserve chairman, Secretary of Commerce, World Bank head, business tycoons, leading academics, and (for some reason) August Derleth. In 1975, India had a worse-than-usual economic crisis and declared martial law. They asked the World Bank for help. The World Bank, led by Robert McNamara, made support conditional on an increase in sterilizations. India complied:
Inline links: source, India complied
In 1975, India had a worse-than-usual economic crisis and declared martial law. They asked the World Bank for help. The World Bank, led by Robert McNamara, made support conditional on an increase in sterilizations. India complied:
Inline links: India complied
Highlights From The Comments On British Economic Decline
July 20, 2023 · Original source
I prefer the Our World In Data graphs since they let you clearly show relative growth, but they only go up to 2018. A World Bank graph requires a little more interpretation, but goes up to 2022: Source: World Bank. Britain is the thick blue line. …and it also shows UK growth being about average. So what’s going on? I asked about this in an Open Thread. Here were some of your responses. Eric Rall writes: There are two different ways of calculating real GDP per capita in an international context, both of which involve converting local currency to dollars and then inflation-adjusting the dollars based on the US's GDP deflator. One uses market exchange rates, while the other uses "Purchasing Power Parity", attempting to optimize the GDP figure as a proxy for standard-of-living by using local prices for equivalent goods and services as the currency conversion factor. For Brexit-related and COVID-related reasons, the relationship between PPP and market exchange rates for Britain have been highly unstable in the period in question: exchange rates have been very volatile (ranging from US$1.08 to US$1.40 per £1.00), and tariffs and COVID disruption have both radically changed the availability and prices of imported goods. Looking at either the PPP or market exchange rate numbers, everyone took a big hit in 2020, while Britain appears to have taken a deeper hit than France and the overall OECD average (the two control groups I picked off the top of my head). The big difference is that in market exchange rate terms, the recovery looks proportionate to the decline (i.e. Britain fell more, but also recovered proportionately faster so as to bounce back to approximately 2019 levels in 2022 the same as France and OECD): (source) But in PPP terms, the UK has recovered at the same rate as France and OECD and thus appears to have permanently (so far) lost ground in standard of living relative to other countries. UK was also growing more slowly in PPP terms between 2015 and 2019 than France, but about the same as the OECD average: (source) Putting some numbers on the second graph: Just before COVID, Britain had 106% the average OECD GDP
Inline links: https://substackcdn.com/image/fetch/$s_!3fAl!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F2cffb938-e8c2-45b1-9ad2-fe575666403b_811x632.png, World Bank, asked about this in an Open Thread, writes, https://substackcdn.com/image/fetch/$s_!ctPl!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F168f87c7-e9e0-45f8-901c-dd418f541b57_800x617.png, source, https://substackcdn.com/image/fetch/$s_!AqdU!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Faae66a91-fc33-43e0-90b9-2ec1a41d5dc8_790x627.png, source
Source: World Bank. Britain is the thick blue line. …and it also shows UK growth being about average. So what’s going on? I asked about this in an Open Thread. Here were some of your responses. Eric Rall writes: There are two different ways of calculating real GDP per capita in an international context, both of which involve converting local currency to dollars and then inflation-adjusting the dollars based on the US's GDP deflator. One uses market exchange rates, while the other uses "Purchasing Power Parity", attempting to optimize the GDP figure as a proxy for standard-of-living by using local prices for equivalent goods and services as the currency conversion factor. For Brexit-related and COVID-related reasons, the relationship between PPP and market exchange rates for Britain have been highly unstable in the period in question: exchange rates have been very volatile (ranging from US$1.08 to US$1.40 per £1.00), and tariffs and COVID disruption have both radically changed the availability and prices of imported goods. Looking at either the PPP or market exchange rate numbers, everyone took a big hit in 2020, while Britain appears to have taken a deeper hit than France and the overall OECD average (the two control groups I picked off the top of my head). The big difference is that in market exchange rate terms, the recovery looks proportionate to the decline (i.e. Britain fell more, but also recovered proportionately faster so as to bounce back to approximately 2019 levels in 2022 the same as France and OECD): (source) But in PPP terms, the UK has recovered at the same rate as France and OECD and thus appears to have permanently (so far) lost ground in standard of living relative to other countries. UK was also growing more slowly in PPP terms between 2015 and 2019 than France, but about the same as the OECD average: (source) Putting some numbers on the second graph: Just before COVID, Britain had 106% the average OECD GDP
Inline links: World Bank, asked about this in an Open Thread, writes, https://substackcdn.com/image/fetch/$s_!ctPl!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F168f87c7-e9e0-45f8-901c-dd418f541b57_800x617.png, source, https://substackcdn.com/image/fetch/$s_!AqdU!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Faae66a91-fc33-43e0-90b9-2ec1a41d5dc8_790x627.png, source
Your Book Review: Why Nations Fail
August 25, 2023 · Original source
"IMF/World Bank policies are not adopted and not implemented, or are implemented in name only" rather understates the extent of privatisation, trade liberalisation and financial deregulation imposed by those institutions. It might be truer to say you cannot shrink a functioning state to the point where a corrupt elite will not find a way to steal from it.
Measuring institutional quality has turned into a field of its own, with complicated multi-dimensional indexes put out by major institutions like the World Bank. AR's seminal papers, however, were done with much simpler measures. The Colonial Origins of Comparative Development and Reversal of Fortune used other researchers’ indexes of protection against expropriation (an economic institution), and constraint on executive power (a political institution). In Consequences of Radical Reform: The French Revolution AR constructed their own index based on the dates of adoption of civil law codes, agrarian reform, abolition of guilds, and Jewish emancipation.
Inline links: World Bank, The Colonial Origins of Comparative Development, Reversal of Fortune, Consequences of Radical Reform: The French Revolution
23: California Dreamin'
September 04, 2023 · Original source
Seen on the Praxis founder’s Twitter account. Milady is some kind of NFT thing, otherwise it makes as much sense to me as it does to you. But the other half of the paradox is the constant rumors that they’re competent and have some kind of good plan. These are spoken only in hushed whispers, I don’t know the details. But in 2021, they raised $4 million in a seed round from well-regarded venture capitalists whose investments usually make money. In 2022 they raised another $15 million in a Series A round from . . . okay, partly from Sam Bankman-Fried and Three Arrows Capital, two notorious crypto scammers. But you would think scammers would be extra careful not to invest their own money in scams! Also, they recently signed on David Weinreb, a completely normal (and well-regarded) city planner person. What’s the strategy that both involves both Milady Raves and lots of competent people agreeing you’re a good investment? One strategy is something like: buy some land somewhere. Build some houses and streets. Convince digital nomads to move there on the grounds that you are very cool and visionary. Do some cool and visionary seeming things, or at least throw some really good raves. Other digital nomads get jealous and move there too. Sell parcels of land to these people, get rich, pay back your investors. And then who knows, maybe create a new civilization that redefines what it means to be human. Consider Elon Musk. Elon Musk is good at certain business-related skills. But that’s not the essence of Elon Musk. The essence of Elon Musk is that he’s a Visionary who can bring the Glorious Future. We know this because he’s a crazy person who says stuff that doesn’t really make sense. When Elon Musk buys a company, its value goes up - maybe partly because people expect Musk to make good business decisions, but also partly because now the company is part of Musk’s Glorious Future, and therefore exciting. Employees, customers, and investors all get excited and reinforce each other in a virtuous circle. And although Musk might not always accomplish the exact Glorious Future future he promises, his companies do well and make money, because having motivated employees, star-struck customers, and willing investors is a great combination. Elon Musk has an aura of destiny because he succeeded at his first several companies. Dryden Brown of Praxis Society, lacking a Paypal Mafia to join, is trying to hack together an aura of destiny out of raves and angel-related videos. So far it seems to be going pretty okay. Prospera Sues Honduras For 2/3 Of Its National Budget To refresh: in the mid-2010s Honduras’ pro-market government created ZEDEs - businesses that bought up unoccupied land could start their own districts with their own preferred legal system in exchange for bringing in investment. The government knew businesses wouldn’t invest long-term if the next government could just cancel the agreement and seize all of their stuff, so they fortified the law with as much protection as possible. It would take a long constitutional amendment process to repeal, and ZEDE investors might be able to object to any changes under international investment treaties. Lured by these protections, three companies started ZEDEs, including a big high-profile one called Prospera. In early 2022, a socialist government took power, and started trying their best to destroy the ZEDEs. They started the constitutional amendment process (they seem to think they’ve finished it, but a Prospera rep I talked to believe they have to hold another vote by the end of this year, something I see no signs of them doing) and have been harassing and stonewalling existing ZEDEs. One ZEDE, Orquidea, shut down immediately. A second, Ciudad Morazan, seems to still be operating but I cannot figure out exactly how or why. Prospera has been most vocal in its opposition, and sued Honduras for $11 billion in the World Bank’s court of investment arbitration. (Prospera has only spent about $100 million so far, so it’s unclear why they deserve 100x that in penalties. Also $11 billion is “two-thirds of the 2022 Honduran national budget”, and forcing Honduras to pay it would cause national catastrophe. This might be more of a highball offer than a number they actually expect to get.) This article (poorly translated from Spanish, sorry) has the most information. It suggests Honduras believes they signed onto the investment treaties “with reservations”, ie conditional on being allowed to do things like shut down ZEDEs, and that therefore the suit is meaningless and they will not defend themselves. Although the magazine is on the government’s side of the overall issue, it suggests they didn’t actually sign on with reservations, that the country’s lawyers might just have no idea what they’re talking about, and that their bold strategy of refusing to defend themselves will not pay off. In contrast, Prospera has prestigious lawyers specializing in exactly this area, so things aren’t looking good for the government. Honduras seems to recognize this and is threatening to withdraw from ICSID, the international investment treaty that governs such disputes. This wouldn’t be completely unprecedented - Venezuela, Bolivia, and Ecuador have also done this. But ICSID rules say that withdrawing from ICSID, while it might help prevent future cases against you, doesn’t cancel existing cases, and wouldn’t protect Honduras against Prospera’s claim. (How would ICSID collect against Honduras if they lost? I don’t know, but I assume the global financial order has some way to make your life worse if you defy it.) I think everyone is hoping Honduras realizes that cancelling a flourishing economic zone that’s bringing lots of investment into the country at no cost to them - just isn’t worth taking an $11 billion loss, cancelling international treaties, and scaring off future investment. But who knows how these people think? In other Prospera news: Prospera announces another $36 million in recent investment, which I take as evidence that VCs with good lawyers and research departments also think its case is very strong.
Inline links: the Praxis founder’s Twitter account, raised $4 million in a seed round, raised another $15 million in a Series A round, recently signed on David Weinreb, To refresh:, harassing and stonewalling, sued Honduras for $11 billion, This article, threatening to withdraw from ICSID, Venezuela, Bolivia, and Ecuador have also done this, announces another $36 million in recent investment
Highlights From The Comments On Last Week's Model Cities Post
September 11, 2023 · Original source
In this context, some tribunals are overseen by an administering institution, which provides some logistical services, a set of procedural Rules, and appoint arbitrators when a party does not participate - that's what ICSID is. But the final decision (the award) is not rendered by ICSID (let alone the World Bank): it's rendered by the BIT tribunal, under the ICSID Rules.
Now, ICSID is a very special administering institution: not only is it associated with the World Bank, but it has been set up by its own multilateral treaty, the ICSID Convention. A tribunal administered by ICSID needs to have jurisdiction not only under the investment treaty, but also under the ICSID Convention. Respondent states ALWAYS argue that the tribunal lacks jurisdiction under either treaty, to toss the case out before it reaches the merits, and there are many arguments that can be made in this respect. A good third of investment arbitrations fail for lack of jurisdiction. (This being said, the article linked above is right that the arguments made by Honduras so far are non-starters.)
If you ignore the World Bank then you get suspended from the World Bank which makes getting loans and international aid harder. Honduras has paid in the past. As Honduras receives between $500 million and $1 billion in aid each year it's doubtful they could do without. But perhaps the left wing governments of the US and so on will ignore it? Not entirely sure.
Highlights From The Comments On Capitalism & Charity
January 11, 2024 · Original source
I've been involved in selling these ideas in multiple nations, and being able to point to the growing mainstream credibility achieved by CCI is definitely a factor leaning towards adoption. Conversely, without CCI's leadership, developing world government "reforms" are driven by a combination of venality, corruption, populist or leftist ideologies, World Bank banalities, and the occasional McKinsey analysis. CCI is a big positive step in the direction of concrete, actionable reform zones that are likely to improve institutions incrementally. If we can get to the point at which zones with their own law and governance become a routine technology of economic development, then the value of these institutional experiments is likely to become high.
Highlights From The Comments On Lynn And IQ
January 16, 2025 · Original source
The concept of IQ is fine, but you are personally miscalibrated about what low IQ means because the only very-low-IQ people in your training set had developmental disorders. I think these probably explain 5%, 5%, 40%, and 50% of the effect respectively, and I should have been more careful to emphasize (3), which I think explains 40% of the effect. The particular way I would flesh out 3 would be something like - if you’re illiterate and (somewhat) innumerate, you probably don’t have enough practice with symbols and complex mental operations to do even a “culture fair” IQ test like Raven’s Matrices. This doesn’t necessarily mean that your IQ is higher than the Raven’s Matrices says - the person who underperforms on Ravens for this reason will also underperform on a wide variety of other abstract/intellectual/symbolic tasks, and this is part of what IQ means. But it means that Raven’s IQ won’t predict concrete tasks as well as you would expect. Fujimura writes: The other major factor that I think should be reassuring about Lynn's estimates (and other cross-national IQ estimates) is that when you look at "non-problematic" sources that seem like proxies for IQ (e.g. World Bank data, educational performance), you see the same pattern as Lynn and others' IQ data. It's easy for people to quibble about each and every IQ measure (and so people do), but that we see the same pattern of results using otherwise uncontroversial data sources should be reassuring. Yeah, many people tried to gotcha me with claims that Lynn did this or that or the other thing wrong. Lynn tries to defend his methodology here, but I think (and tried to argue in the post) that at this point, that debate is of historical interest only - there’s too much confirmation now. One commenter brings up World Bank Harmonized Learning Outcomes as an example. Another points me to this preprint, which tries to update Lynn’s numbers using all modern standardized testing data and correlations with social development index and GDP. They find mostly similar numbers to Lynn: Malawi goes from 60 → 66, and new last place goes to Sao Tome & Principe at 62. This is by people affiliated with Lynn and scientific racism, and you can choose not to trust their judgment either, but I think at least the SDI correlations are an extremely simple regression that it would be hard to fake. This kind of stuff is why I think simple failures of data collection and analysis are unlikely to explain more than 5% of the gap with our common sense. There’s definitely something weird about these numbers, but it’s got to be more complicated than just “racist people screwed up the test”. But continuing on this subject - if IQ has two components, why would World Bank education data and GDP track the abstract/symbolic component of IQ, rather than the practical component of IQ? Or, rather, it’s obvious why this would happen in education. But why would GDP track abstract/symbolic rather than practical? One possible answer is that the causal pathway is high GDP → lots of education → lots of practice with abstract reasoning → high abstract/symbolic IQ. I don’t think this can be the whole story, because some countries that “cheated” to get high GDP (eg oil sheikhdoms) can’t translate it into IQ points at the same rate as everyone else. I’m stuck with the boring basic explanation that maybe you need to do a lot of abstract reasoning tasks to get high GDP. Harzerkatze writes: [Your claim that blacks everywhere should have the same genes] is far from true. While "white" may be a descriptor for a group of somewhat similar genetic backgrounds, having common ancestors not too far in the past, "black" is different, grouping populations of similar skin color, but common ancestors diverging way further back in time. Yeah, I didn’t want to get into all of this on the post, but I agree the way I phrased it was misleading. Lynn and other national IQ estimates find very low IQs for all sub-Saharan African countries - I mentioned Malawi at 60 in the post, but Nigeria, on the other side of Africa, is 69. Whatever is going on there is a pan-African problem, such that I don’t think differences between African groups are very relevant. US blacks are mostly descended from people in west Africa, eg Nigeria. Some people also brought up that US blacks have significant white admixture. This is true but it’s still not enough to be relevant to this discussion. If we assumed everything was genetic and US blacks with their ~20% white admixture had genetic IQ of 85, we would still expect African blacks to have IQ in the low 80s. However you parse it, there’s got to be some kind of health/education/environment effect going on there. Africa is extremely genetically diverse, but I think most of the countries measured in the paper, including Malawi, are some variety of Niger-Congo speakers, who I don’t think are that much more diverse than white people or anyone else. The really interesting African ethnicities, like the Khoi-San, don’t show up as much at a national level. Andrew Clough writes: Speaking of charity and IQ, the lowest of low hanging fruit is putting iodine in salt. You can donate to the Global Iodine Network like I do for the long term benefit of poorer countries without worrying you're just delaying Malthus's reemergence. Givewell calls Salt Iodization "slightly below the range of cost-effectiveness of the opportunities that we expect to direct marginal donations to" which in the grand scheme of things is quite good. Yeah, salt iodization is great. I had always heard of iodine related problems being concentrated in central Asia and especially Afghanistan, but looking at the map… (source) … sub-Saharan Africa is also a hot spot. I wonder what’s wrong in Cuba - this is exactly the sort of easily gameable metric I would usually expect them to be good at, or at least carefully faking. If you’re interested, you can donate to Iodine Global Network here. Bob Jacobs writes: > His opponents pointed out both his personal racist opinions/activities That's the mildest possible way you could've put it. He wasn't someone who had "personal racist opinions" that he kept as "personal racist opinions". He was the editor-in-chief of Mankind Quarterly, a white supremacist journal that was founded by people like: Henry Garrett an American psychologist who testified in favor of segregated schools during Brown versus Board of Education, Corrado Gini who was president of the Italian genetics and eugenics Society in fascist Italy, and Otmar Freiherr von Verschuer who was director of the Kaiser Wilhelm Institute of anthropology human heredity and eugenics in Nazi Germany. He was a member of the Nazi Party and the mentor of Josef Mengele, the physician at the Auschwitz concentration camp infamous for performing human experimentation on the prisoners during World War 2. Mengele provided for Verschuer with human remains from Auschwitz to use in his research into eugenics. It's funded by the pioneer fund, an organization he was a board member of and that has been classified as a white supremacist hate group, with one of its first projects being to fund the distribution in US churches and schools of "Erbkrank", a Nazi propaganda film about eugenics. He's not just called racist, he *is* racist, he even describes *himself* as a racist. No contesting any of this. MM writes: I spent 18 months in a country where people are supposed to have an iq of about 70, according to the map. My neighbors and friends were mostly non-literate. They did not seem less intelligent than the people I know in my current (US) neighborhood or the people I grew up with (in the US). Most of them would not have performed well on IQ tests, though. They'd never attended school and had no familiarity with puzzle-solving. This was 35 years ago and most people had not seen movies or even photographs. I remember sitting with one older woman and helping her interpret a black-and-white photograph: this is the arm, here's where it connects to the body, etc. It's hard for people from literate societies with tons of exposure to text & graphical representations to see the extent of the gap. Calvin writes: I have a decent amount of experience with the intellectually disabled, and saying "cognitive issues are only responsible for a small part of the [communication] deficit" is so wrong that it makes me question everything else in this essay. Trust me, even making allowances for poor hearing or difficulty forming words, the cognitive issues are responsible for 90% of the deficit. An IQ of 60 is really low and it's a significant handicap. I was concerned to hear this - I have a little experience with the intellectually disabled, but it didn’t involve knowing people’s exact IQ, so I’m not very well-calibrated here. Looking for more information, I found https://www.hrw.org/reports/2001/ustat/ustat0301-01.htm, which purports to describe the characteristics of very low IQ people, mostly in the context of criminal justice (where lawyers often try to use a client’s low IQ as a mitigating factor - ie maybe he didn’t truly understand that crime is wrong). The report says things like: Although all persons with mental retardation have significantly impaired mental development, their intellectual level can vary considerably. An estimated 89 percent of all people with retardation have I.Q.s in the 51-70 range. An I.Q. in the 60 to 70 range is approximately the scholastic equivalent to the third grade […] Although mental retardation of any degree has profound implications for a person's cognitive and social development, it is a condition which in many cases is not readily apparent. While some of the mentally retarded, such as those whose retardation is caused by Down's syndrome or fetal alcohol syndrome, have characteristically distinctive facial features, most cannot be identified by their physical appearance alone. Unless their cognitive impairment is unusually severe (e.g. an I.Q. below 40), persons with mental retardation may be thought of as "slow" but the full extent of their impairment is often not readily appreciated, particularly by people who have limited contact with or knowledge of them, including police, prosecutors, judges, and other participants in the criminal justice system. Many capital offenders with mental retardation did not have their condition diagnosed until trial or during post-conviction proceedings. And gave some examples (slightly out of order for this list): Oliver Cruz, who was executed in Texas on August 9, 2000, had an I.Q. that was measured variously at 64 and 76. Cruz nonetheless insisted to reporters that, although he was perhaps "slow in reading, slow in learning," he was not mentally retarded. Mitigation specialist Scharlette Holdman recalled a client who so successfully hid his retardation from his attorneys that he allowed them to sign him up for college-level calculus classes, which he could not comprehend. He had gone through much of his schooling allowing his younger sister to complete his homework for him. When he was given papers to read in connection to his case, he would carefully stare at them. If he was asked a substantive question, he usually responded, "I don't recall." Only when experts in retardation evaluated him and investigators reviewed his school records and spoke to his family did lawyers discover he had mental retardation and had been considered "slow" since his early childhood. Another capital defendant "hid his mental retardation for most of his life by working at a very repetitive job as a switcher on the railroad. He lied about finishing high school. He was actually in special education classes and did not finish the sixth grade. He was drafted into the army and discharged because of his mental retardation. He lied about his service record. He often made things up so that people would not suspect mental retardation." Morris Mason, whose I.Q. was 62-66, was executed in 1985 in Virginia after being convicted of rape and murder. Before his execution, Mason asked one of his legal advisors for advice on what to wear to his funeral As one psychiatrist testified about a capital defendant with an I.Q. of between 35 to 45: "[People with mental retardation try] to go along with people that they suspect are in authority. For example, I asked [the defendant] where we were when I saw him, and he obviously didn't know, so I asked him if we were in Atlanta and he said `Yes, we are in Atlanta.' In fact, we were in Birmingham, Alabama. I could have said New York and he would have said `Sure, New York' These people are obviously not going to win Nobels anytime soon. But even the guy with IQ 35 - 45 was still talking to people. I think this supports the thesis that intellectually disabled people without specific syndromes can seem pretty normal most of the time. (though keep in mind that anything from the court system should be treated with a grain of salt - defense attorneys have an incentive to exaggerate the intellectual disability of their clients in the hopes that it gets them a lighter sentence) Lyman Stone writes: Emil's post isn't correct, however. We know from the recent Reich lab paper on long-run genetic selection that there was strong selection for IQ in the neolithic revolution, which implies agriculture strongly selects for IQ and ability to plan. Malawians are 60-80% subsistence farmers. Even a "normal" low-IQ person cannot do the implied math and long-term planning involved in this kind of farming. And in fact, economists routinely find that African small-plot subsistence agriculture is actually highly optimized; farmers make very precise choices about where to plant which seeds, which fertilizer to use, etc. Key point is basically: it really isn't true that an IQ 60 person can run a farm functionally. Moreover, mean IQ of 60 implies large shares even lower, at ranges that are uniformly nonverbal even without specific disability. And this is why in the actual record-level NIQ database, they truncate estimates below 60, because even the database managers realize these estimates are crazy. See my post here: https://substack.com/home/post/p-154757665 We know that people with extremely low IQs in the Flynn sense must be capable of subsistence agriculture, because pre-Flynn Effect, most of the West had extremely low IQs, and they were all doing subsistence agriculture. How is this possible? Responding to Lyman’s comment, I wrote: I stick to the claim in this post - that our estimates for what a very low IQ means are poorly-grounded, and that people with low IQs can do some pretty impressive things, especially if they're concrete and part of a cultural transmission package. Maybe this is the Joseph Henrich "Secret Of Our Success" thing. We know that Malawians get poor test scores in school, so it seems like there's some disconnect between do-well-on-tests intelligence and run-a-subsistence-farm intelligence, and the abstract/concrete and novel/cultural distinctions are the best explanation that I can think of. You say that "the phenotype that arises from a given tested IQ in America is clearly vastly worse than the phenotype arising from the same tested IQ in Africa", which I basically agree with. I think part of it is the syndromes issue raised above, and part of it is that maybe Malawians have zero contact with the culture of abstraction that IQ tests come out of whereas even very uneducated Westerners have some contact with it, and maybe another part of it is that whatever health/nutrition issues the Malawians have preferentially harm faculties responsible for more abstract tasks rather than more concrete ones. For an opposite data point, when I was in Haiti, my boss told me (secondhand, no personal experience) of extreme difficulties working with Haitians, like that they couldn't alphabetize files even when that was explained to them. Many Haitains are also successfuly subsistence farmers, so I think this also supports some kind of heavy abstract/concrete distinction. I don't think we're really disagreeing, just agreeing on something like the correlations that make up IQ being less valid outside the normal range. Maybe one way to look at it is to go back to the claim from the justice system document above, saying that people with IQ in the 60s are the mental equivalent of third-graders. The third-graders I know are very into Pokemon, and have all sorts of opinions on how if you add X bonus to a Y strength fire-type Pokemon and then play Z combo, it will [commence six weeks of droning on about different Pokemon cards]. Is this the sort of math/reasoning/strategizing that we don’t expect someone with IQ 60 to be able to do? Does the fact that third-graders can do it mean that we’re miscalibrated? I’m not sure. The part of Lyman’s comment that gives me the most pause is his observation that, if the mean IQ is 60, a decent fraction of people must be 45, and a non-negligible portion 30. At this point, even third-grader comparisons don’t save us. I guess this is where I bring in the claim that IQ breaks down as a guide to practical living skills below some point. You can see several more layers of response between me and Lyman here, but I was especially grateful for him teaching me two things I didn’t already know: First, he corrected my misconception about Reich on ancient European cognitive evolution. Reich had said that pre-agriculture Europeans were “2-3 standard deviations” below moderns. I had interpreted that as IQ deviations of 15 points, making them genetic IQ 55-70, which would have been pretty crazy. Stone tells me he actually meant PGS deviations, each of which was about 3-4 IQ points, so he’s claiming that pre-agriculture Europeans had genetic IQ of 90 (they probably also had lower IQ for environmental reasons).,
Inline links: writes, here, Harmonized Learning Outcomes, this preprint, writes, writes, https://substackcdn.com/image/fetch/$s_!wY7n!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff8e5ec21-6788-4dc5-96f1-9b1929f221bb_800x354.png, source, donate to Iodine Global Network here., writes, writes, writes, https://www.hrw.org/reports/2001/ustat/ustat0301-01.htm, writes, https://substack.com/home/post/p-154757665, here
ACX Grants 1-3 Year Updates
June 18, 2025 · Original source
Since 2022, Alice has undertaken qualitative research in nine world regions: Mexico, Costa Rica, Brazil, Morocco, Italy, Spain, Britain, US, Poland, Turkey, India, Uzbekistan, South Korea and Hong Kong. Through this globally comparative analysis, she analyses the drivers and obstacles to gender equality. Gender interventions will be more impactful if they target locally binding constraints - in the Middle East, North Africa and South Asia, this is "the honour-income trade-off" (whereby male honour depends on female seclusion, and women tend to remain at home. Meanwhile, Latin America and the Caribbean face a different obstacle: pervasive violence elevates femicides. Over the past few years, she's held visiting appointments at Stanford, Chicago, and Yale, while providing policy advice to the World Bank, and sharing insights with a public audience via Substack (www.ggd.world). In April 2025, she gave a TedTalk on romantic love as an under-rated driver of gender equality.