Astral Codex Ten

Studwell

5 min read

Studwell

Article

Studwell is a recurring person in the Astral Codex Ten archive, appearing 3 times across 3 issues between June 28, 2021 and July 05, 2021. The archive places it in contexts such as “How Asia Works is Studwell’s guide to good economic policy”; “Studwell uses the analogy of the hobbyist gardener vs. the giant commercial farmer”; “Studwell considers this step absolutely essential”. It most often appears alongside Hong Kong, How Asia Works, Korea.

Metadata

  • Category: People
  • Mention count: 3
  • Issue count: 3
  • First seen: June 28, 2021
  • Last seen: July 05, 2021

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.
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
Undeveloped countries are mostly rural (for example, Korea was about 80% rural in 1950). Most people are farmers. Usually these countries are coming out of feudalism or colonialism or something and dominated by a few big landowners. In one region of the Philippines (Studwell's poster child for doing everything wrong) 17 families control 78% of farmland. Landowners hire peasants to work the land, then take most of the profit.
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
1.) Three things stick out here. Firstly, Studwell vastly overstates how damaging land reform has to be to landlords. Taiwan and Japan both bought out landlords with bonds. The bonds became worth less because since government bonds grew more slowly than the economy. But there are still a fair number of wealthy old families around in both countries. The important thing is not the destruction of landlords as a class: it's putting land into the hands of people (whether smallholding peasants or professional farmers) who own the land, have an incentive to improve it, and whose primary income is gained not by owning land but by producing agricultural products. The two are ultimately equivalent at equilibrium. How you get there is not especially important and paying off the landlords is fine if it works. Likewise, giving land to collectives or to peasant groups (as opposed to individual peasants) doesn't work very well because it keeps it out of the power of enterprising farmers.
In Malaysia, Studwell veers into the shaky ground of being against capital per se. Letting partners get equity in firms is not an issue. Did you know huge percentages of Korean companies were owned by Americans? South Korea was not just stealing their technology, they were moving up the value chain. In partnerships where it didn't make sense, by learning through transfer deals where it didn't. There is, of course, an issue with letting companies offshore high tech work and using your people only as menial labor. But this is an issue of structuring the deals and regulations. But of the successful cases, only China broadly prevents you from owning minority stakes in companies. The rest, at most, limited the percentage of foreign ownership. Which is still admittedly not a full free market policy.
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