Politics

Secretary of State Rice said on yesterday’s Face the Nation:

I’m quite certain that all Iraqis want to defeat this insurgency and get on with building a democratic Iraq.

I’m curious as to who she wants us to think make up this “insurgency”, if it isn’t Muslim jihadists, many of whom happen to be Iraqis. If they were all coming from outside Iraq’s borders, wouldn’t the administration be putting more effort into sealing the borders than in fighting them in cities?

Alarmism

Last week’s issue of Nature has a review of a recent Michael Crichton book (dismissed as “Viagra for climate sceptics”) which contains an interesting claim about the reaction to the movie The Day After Tomorrow:

Surveys of public opinion conducted before and after the film was released found that it made people think climate change is less likely

Apparently its obvious lack of realism caused people to associate the more respectable claims about global warming with Hollywood escapism.
I wonder if this is the tip of a much larger iceberg. It seems to me that a wide variety of political movements tend to promote the most alarmist versions of their ideas in order to get respect and/or money from their strongest supporters. I don’t find it hard to imagine that it is common for activist groups to hurt the causes they claim to be fighting for by sounding unrealistic to swing voters.

Iraqi Elections

In today’s press conference, someone asked Bush about how the turnout in the Iraqi elections would affect their legitimacy. The questioner seemed think that a very high turnout (such as elections in the Soviet Union produced) would make the results legitimate, but low turnout (such as typical local elections here in Silicon Valley produce?) would raise questions about the election’s legitimacy. Why do suggestions such as that not produce ridicule? Is it due to a preference for easily quantified criteria?
A few minutes later, Bush took great care to avoid supporting free speech for Muslims who hate the U.S (he was asked about Jordan, but could easily have talked about other parts of the mideast). This hints at a willingness to prevent jihadists who seem to have support from a nontrivial fraction of the Iraqi population from campaigning, which might lend some plausibility to their boycott of the elections.
Another issue that is important in determining whether the elections are legitimate is whether there is any reason for one part of Iraq to be subject to the ideology of the majority within Iraq. Iraq is hardly a nation in the normal sense of that word – it contains several cultures, not fond of the idea of nation-states, who were made into a country by British decree.
If I had somehow become U.S. president around the time that Saddam was captured, I would have dispensed with recreating a national Iraqi government, and simply held hasty elections for ruling councils in each town/city, then I would have withdrawn U.S. troops.

Book Review: Catastrophe: Risk And Response by Richard A. Posner

This book does a very good job of arguing that humans are doing an inadequate job of minimizing the expected harm associated with improbable but major disasters such as asteroid strikes and sudden climate changes. He provides a rather thorough and unbiased summary of civilization-threatening risks, and a good set of references to the relevant literature.
I am disappointed that he gave little attention to the risks of AI. Probably his reason is that his expertise in law and economics will do little to address what is more of an engineering problem that is unlikely to be solved by better laws.
I suspect he’s overly concerned about biodiversity loss. He tries to justify his concern by noting risks to our food chain that seem to depend on our food supply being less diverse than it is.
His solutions do little to fix the bad incentives which have prevented adequate preparations. The closest he comes to fixing them is his proposal for a center for catastrophic-risk assessment and response, which would presumably have some incentive to convince people of risks in order to justify its existence.
His criticisms of information markets (aka idea futures) ignore the best arguments on this subject. He attacks the straw man of using them to predict particular terrorist attacks, and ignores possibilities such as using them to predict whether invading Iraq would reduce or increase deaths due to terrorism over many years. And his claim that scientists need no monetary incentives naively ignores their bias to dismiss concerns about harm resulting from their research (bias which he notes elsewhere as a cause of recklessness). See Robin Hanson’s Idea Futures web pages for arguments suggesting that this is a major mistake on Posner’s part.
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Foreign Aid

Posner makes some good arguments against foreign aid, but his implication that the U.S. should do nothing to make AIDS treatments available to backward countries is misleading. Much of the cost of the treatments is the R and D cost of designing the drugs rather than the marginal cost of additional doses. The patent buyout scheme proposed by Michael Kremer (see the book Entrepreneurial Economics) provides a way to significantly reduce those costs, while probably benefiting wealthy countries. A government or charity would buy many patents and put them in the public domain. The price would be set by auctions which would be kept honest by sometimes selling the patent to bidders instead of making the patent free. Ideally the price would be a bit higher than the private value of the patents, to reflect the fact that the social benefits exceed the value that the patentholder would get from enforcing the patent, resulting in improved incentives for drug development and in the drugs being available to people who can’t afford the patent holders’ prices. The most likely downside is the cost associated with using taxes to finance the buyouts (can someone show that private charity would be able to handle this?).

It is unclear whether the simpler approach of making exceptions to patent laws for backward countries would work well. It would depend on how hard it is to smuggle drugs from those countries to wealthy countries (which would harm the incentives to develop new drugs).

The latest issue of my favorite investment advisory newsletter, The Whitebox Market Observer, has a good point about industrializing countries:

It is nonsense to think that China as a whole will become rich because the Chinese individually are poor. The ugly truth is that poor people don’t matter. They don’t matter as consumers because they don’t have any money; they don’t matter as producers because once they start producing they do not stay poor for long. Show me a persistently poor factory worker and I will show you a rotten factory, no threat to the U.S. or anyone else.

and goes on to note the similarities with Japan of the 1960s and Taiwan and South Korea of the 1970s, which started competing with U.S. companies using low wages to make up for their mediocre reputation for quality, and within about two decades switched to competing on quality.

Book review: Imperial Hubris : Why the West is Losing the War on Terror, by Anonymous

This disturbing book whose author has now identified himself as Michael Scheuer, the former chief of the CIA’s Osama bin Laden unit, claims that bin Laden is being effective at persuading Muslims to wage a defensive jihad against the U.S. by making straightforward arguments based on scripture and descriptions of U.S. actions toward Muslims that are close enough to the truth to convince many Muslims that it would be sinful not to fight the U.S. He is succeeding because he ignores such U.S. offenses as alcohol, gay rights, man-made law and nation-states, and focuses on U.S. meddling in the Mideast.

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Book Review: The Escape from Hunger and Premature Death, 1700-2100 by Robert Fogel

This book presents good arguments that hunger was a major cause of health problems everywhere a century ago, and that the effects last long enough that even the richest countries are still suffering from problems caused by hunger. His arguments imply that experts persistently underestimate improvements in life expectancy, and even with little improvement in medical technology life expectancy will improve a good deal because people born today have much better nutrition than today’s elderly had as children.

This goes a long way toward explaining the Flynn effect (even though the book doesn’t mention Flynn or IQ). It correctly implies the biggest intelligence increase should be seen at the low end of the IQ range, unlike a number of other interesting theories I’ve come across.

Another peculiar fact that the book helps to explain is the high frequency with which the tallest presidential candidate wins. Fogel’s arguments that height has been one of the best indicators of health/wealth suggest that this is not an arbitrary criterion (although it is probably a selfish I-want-to-ally-with-a-winner strategy that may be obsolete).

The book is mostly non-idealogical, but occasionally has some good political arguments (page 42):

government transfers were incapable of solving the problems of beggary
and homelessness during the eighteenth and much of the nineteenth centuries,
because the root cause of the problems was chronic malnutrition. … At
the end of the eighteenth century British agriculture, even when supplemented
by imports, was simply not productive enough to provide more than 80 percent
of the potential labor force with enough calories to sustain regular manual
labor.

(page 106):

Readers may be surprised that I have not emphasized the extension of health insurance policies to the 15 percent of the population not currently insured. The flap over insurance has more to do with taxation than with health services. … Most proposals for extending health insurance involve taxing their wages for services they already receive.

See also Mike Linksvayer’s comments.

Book Review: Commodifying Communism : Business, Trust, and Politics in a Chinese City by David L. Wank

This book does a good job of describing typical small business activity in a city that the author lived in for a couple of years.

I have long been puzzled by the reports that China has a booming economy in spite of widespread corruption and hardly any rule of law, when those problems seem to ensure poverty elsewhere.

This book does a good deal to resolve this mystery. It suggests that Fukuyama’s claim that “there is a relatively low degree of trust in Chinese society the moment one steps outside the family circle” is misleading because the Chinese notions of family ties aren’t as rigid as in the west. Family-style trust is more like a commodity that can be readily acquired by most people who have decent reputations, via friend of a friend type connections between people. And the networks of reputation do well at ensuring the reasonableness of corrupt or arbitrary actors.

It would be nice if we could copy the good parts of these aspects of Chinese culture, but I suspect that’s as hard as copying the social capital that Fukuyama describes in his book Trust.

Here’s one isolated provocative comment to which I haven’t figured how to respond:

The premise that inequalities stemming from differential access to political capital are reprehensible, while those stemming from imbalances in access to economic capital are not, is a value judgment that elides how political power is always implicated in the structure of markets.

Book Review: Innovation and Its Discontents : How Our Broken Patent System is Endangering Innovation and Progress, and What to Do About It by Adam B. Jaffe, Josh Lerner

This book presents a clear, concise and convincing argument that subtle changes in U.S. laws starting in 1982 have broken a patent system that was working reasonably well until then. It will be more effective at convincing the average person than most other attempts have been, both because of its style and because it shows that the changes which broke the system shouldn’t have been expected to help anyone other than patent lawyers. Their analysis will be useful in helping to avoid the takeover of other agencies by special interests.

Their description of how the system should be fixed is less impressive. Their summary of proposed changes strangely fails to include undoing the change in appeals court jurisdiction which they suggest was a primary cause of the problems. Their argument in favor of patenting software, business practices, etc. is more radical than they seem to realize, as it appears to imply that patents should also be extended to mathematical theorems, yet they act as if the burden of proof should be on their critics.

It is hard to believe their proposals go far enough. One suggestion I have is that, in return for higher salaries, patent examiners should be unable to work as patent lawyers for a year or two after leaving their job. This would reduce the number of examiners who can expect to be rewarded for patents that create disputes.

Their confidence that a traditional patent system is better than no patents is unconvincing (but they do a good job of explaining why it is hard to know what the best system is). They support their position by a few examples such as Xerox, whose copier wouldn’t have been invented as it was without patent protection. But it’s much harder than they imply to determine that a copier wouldn’t have been invented some other way a few years later.