Showing posts with label economic history. Show all posts
Showing posts with label economic history. Show all posts

Colossus: The Rise and Fall of the American Empire Review

Colossus: The Rise and Fall of the American Empire
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Ferguson's thesis is basically as follows: the world is a very dangerous place because it contains menacing terrorist and criminal organizations along with numerous states which are either (a) unstable or failed states and thus breeding grounds for the aforementioned (e.g. Afghanistan), or (b) all-too-stable states which give support to the same. Given that (1) the UN's membership is made up of tyrants (e.g. Zimbabwe), dysfunctional governments (e.g. Congo) and states which are simply irresponsible (e.g. Russia), and that (2) Europe is too weak both militarily and morally to keep order, the United States has to do it. Yet the U.S. itself may be unable to fill this role due to its financial imbalances and the unwillingness of individual Americans to serve abroad or even pay attention to what is happening.
Overall evaluation: The fact that I give this book a "five star" rating should not imply that agree with it entirely. Ferguson sets forth several main theses, with which I agree entirely, and along the way makes numerous judgments on ancillary issues, several with which I disagree. I am a specialist in Middle East affairs, and I think Ferguson's understanding of the region is basically sound and much better than most who write about these things. I disagree with a few factual evaluations, but I only noticed one blatant factual error: the Abu Nidal Organization (formed in 1973) and the Popular Front for the Liberation of Palestine (formed in 1967) did not arise in the 1980s with Hizbullah and Hamas, and furthermore they were (the ANO doesn't exist now) and are not Islamist or identified with Islam in any significant way (as misstated on pages 123-124).
This book is valuable and worth reading for two reasons. First, Ferguson lays out why it is that some global hegemon is necessary and beneficial to the world, and why the U.S. can and should fill that role. He notes that regions of the world where U.S. military hegemony is lacking tend to be violent, poor and unstable. Not merely Europe but the other more developed regions of the world have benefited from this military umbrella. He also discusses how the British empire, despite the brutality and exploitation which often came with it, also held many economic and security benefits for nations under British rule. Ferguson's argument is not that the U.S. should try to copy what the British did, but that they should learn from their predecessors in hegemony, keep the good, get rid of the bad, and do better for themselves and the world today.
Second, Ferguson argues that despite the ability of the United States to be a force for good in the world, its foreign policy, or "empire," as he puts it, has serious weaknesses due to its three "deficits" - its financial deficit, its manpower deficit, and its attention deficit. The financial deficit comes not from military spending, but from the estimated $45 trillion in unfunded liabilities from Medicare/Medicaid and, to a lesser extent, Social Security. The manpower deficit comes not from a lack of population, but from an unwillingness of Americans to serve abroad, either in the military or in civilian positions. The attention deficit comes from the paucity of interest most Americans have in the details of what goes on in the world. These are the deficits which could cripple U.S. foreign policy in the future.
My primary question about Ferguson's approach is more semantic than substantive. Although empires of the past have often done good as well as bad, the term has been so demagogued that it is difficult to have a rational discussion once you use the word "empire." Moreover, because the U.S. has no settlers, only expats and professionals who do relatively short overseas tours and then come home, America today is really quite different from Britain in its imperial heyday. I would use the word "hegemon" because, while still offensive to some of the illiterati, it is fully accurate, and it describes the kind of role that the United States needs to play to fulfill the role set out for it by this Scottish historian.

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The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger Review

The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger
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In "On the waterfront," perhaps the saddest point of the film is where Fr. Barry eulogizes K. O. Duggan, killed off by the mob. But Marc Levinson has located a larger villain, the real force that killed off so many longshoremen's careers: the standardized shipping container. While a highly trained crane operator working today's docks earns $120,000 a year, their numbers are few and few of them are former longshoremen or sons of longshoremen. And cargo handling costs have dropped over 90%. Yet this is only the start. The shipping container reduced spoilage, theft, insurance costs, delays, and the entire cost of going global.
Levinson's well-researched treatment of a seemingly pedestrian subject works effectively to show that the world is not flat. The original dust cover of Friedman's best-selling book shows a tall-masted ship going over the edge of the 'flat' earth, confirming flat earth society members' discarded beliefs but distorting and mischaracterizing globalization. Levinson's rich, detailed, data-filled work shows the stark difference between Levinson's work with The Economist and Friedman's with The New York Times. Levinson uses a thorough, comprehensive economic and technological analysis, while Friedman flies around the world with a consistent "gee whiz" attitude of surprise. Levinson traces multitudes of disparate events and finds common links where Friedman finds common links and illustrates them with cursory events. Levinson is an economist; Friedman is a journalist. Friedman mixes metaphors and hyperbole; Levinson mixes in a wide range of colorful characters and challenges. Levinson is an editor; Friedman needs one. People who want to understand the recent history, impetus and infrastructure of globalization need to read "The box."
Fifty years ago, maverick southern trucker Malcolm McLean devised a method for a quantum leap forward in the handling of cargo in transit. At that time, the process of loading and offloading of ships had not changed much in hundreds of years. Loose cargo, irregular, unpredictable and back-breaking work, light-fingered workers, corrupt stevedores, poor management, and mob-controlled unions were the order of the day and most orders changed on a daily basis. The workers probably suffered the most, but the hidden impact on global trade was severe as well. Some small and expensive products -- whiskey, watches -- could not be shipped reliably and safely when subject to massive pilferage. While containers started as a domestic solution, their global use worked miracles in reducing the costs of getting products thousands of miles, and not just on what came to be huge, fast new ocean sailing ships. Railroads and truckers participated in this transformation. Markets opened up. Ports like Felixstowe (England) and Singapore emerged rapidly, displacing older, intransigent ports. Military shipping in containers from America's west coast for the Vietnam War made return trips with stop offs in Japan a cheap, added source of shipping revenue. Cheap-to-ship Japanese products flooded America. Ports sprung up where investors and governments were willing to build cranes, re-build docks and dredge canals. Corrupt, inefficient labor could be bypassed and eliminated, no matter how powerful the union or onerous the contracts. Free trade multiplied.
Sometimes global revolutionary change is not sexy. It's not even computer-driven. Maybe the computer chip spurred globalization, but it was the container ship that made it possible. The idea is to make trade fast, reliable and inexpensive, not just to make the world flat. Containers are like computer chips; they hold lots of stuff in a well-organized fashion. Without the containers, the global transportation network would be running much slower and more costly than it does today. Levinson catalogs a history of shadowy billionaires, entrepreneurs, and a few enlightened governments (the demise of London and New York City ports under much less enlightened leaders is especially painful) that produced a true global revolution. This book is a greater tale of globalization.
I only wish Levinson had included some photographs and more drawings. Some of the technical and industry-specific language can be dry and hard to visualize through verbal descriptions alone.

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