Tag Archives: developing countries

why the development gap persists

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The world’s technology, for the most part, is available to less developed, lower income countries. So why don’t they just reach out, grab it, and catch up? Well, a few have, particularly the so-called “Asian tigers”. Others have caught up on life expectancy and education, but not on income. This article by Ricardo Hausmann suggests a few reasons why it is not so easy.

  • Restrictions on trade, competition, and/or property rights. (But the point of this article is that these are the traditional answers economists give, and they are not the only reasons.)
  • University scientists are more interested in teaching, basic research, and scientific publications than in applied research that could help profit-seeking commercial firms.
  • Businesses do not invest much in R&D, either internally or with university partners.

He uses patent filings as a proxy for technological innovation, and I am not so sure about that. For one thing, he makes this statement:

Countries like Austria, Germany, Denmark, France, Great Britain, Norway, New Zealand, and Singapore patent at a rate at least one-quarter that of the US. And other countries, such as Australia, Canada, Switzerland, Iran, Israel, Italy, the Netherlands, Poland, and Slovenia, come in at just above one-seventh the US rate.

Project Syndicate

The countries in the list above are doing quite well I believe compared to the U.S., and I know some of them have per-capita incomes greater than the U.S. Certainly, our per-capita U.S. GDP is not 7 times Norway’s and 4 times Singapore’s! (It’s lower in both cases per the CIA world fact book.)

Also, being healthy and well educated in a middle income country might not be all that terrible a life.

Those are my criticisms. But I do sometimes fantasize about how I would jump-start progress in a developing country. Certainly, I want to believe that big investments in research and education would pay off in the long term. Building universities, attracting talented professors, and then connecting them to private sector needs would seem to be important. I would want to bring in direct investment from private firms with high-tech know-how, and also seek expertise from development agencies like the World Bank, USAID and its equivalents in other countries. In all these cases though, you have to drive a hard bargain or you are likely to be exploited. I might hire Norway or Singapore to help me do that. Get the economy moving, then use the proceeds to build the infrastructure and keep the education and R&D thing going. At some point, you have to invest in health care, environmental protection, and labor standards if you want to provide a decent quality of life for people. I would probably follow Costa Rica’s lead and not bother with much of an army, but then I would probably be invaded by my neighbors or murdered by my own body guards.

“breakthrough malaria vaccine”

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Forbes reports a promising malaria vaccine produced by “the Oxford University team behind the Oxford-AstraZeneca Covid-19 shot”. It doesn’t say whether the technology developed for the Covid shot did anything to hasten this vaccine along. It still has some testing and licensing to go through.

The article has some horrifying stats on malaria, which is a major killer of children.

229 million. This is roughly how many cases of malaria there were around the world in 2019, according to the WHO. Around 400,000 died from the disease, which consistently ranks as one of the top ten causes of death in low income countries, despite falling significantly in recent years. Africa is disproportionately affected by the disease, with over 90% of cases occurring there. Children account for almost 70% of deaths. 

Forbes

Doing the math here (journalists, why can’t you do the math for me?), the death rate is about 0.2% of cases. If this is the death rate in Africa (but it could be higher if Africans receive less or lower quality treatment) and the other percentages hold, around 250,000 children in Africa die of malaria each year. From Our World in Data, the death toll in Africa from Covid-19 over the last year is around 120,000.

It occurs to me that countries where people deal with horrible diseases that mass murder children every year might be less horrified by Covid-19, which kills a fraction of older people. Of course I am not saying the lives of poor people have less value or the lives of older people have less value (although this is a perennial debate and people of all ages have a variety of reasonable opinions), but I think you can legitimately ask whether an available dollar should be invested in stopping Covid vs. other horrible diseases people have been dealing with for decades.

July 2018 in Review

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Most frightening stories:

  • The UN is warning as many as 10 million people in Yemen could face starvation by the end of 2018 due to the military action by Saudi Arabia and the U.S. The U.S. military is involved in combat in at least 8 African countries. And Trump apparently wants to invade Venezuela.
  • The Trump administration is attacking regulations that protect Americans from air pollution and that help ensure our fisheries are sustainable. Earth Overshoot Day is on August 1 this year, two days earlier than last year.
  • The U.S. has not managed a full year of 3% GDP growth since 2005, due to slowing growth and the working age population and slowing productivity growth, and these trends seem likely to continue even if the current dumb policies that make them worse were to be reversed. Some economists think a U.S. withdrawal from the World Trade Organization could trigger a recession (others do not).

Most hopeful stories:

  • Looking at basic economic and health data over about a 50-200 time frame reminds us that enormous progress has been made, even though the last 20 years or so seems like a reversal.
  • Simultaneous Policy is an idea where multiple legislatures around the world agree to a single policy on a fairly narrow issue (like climate change or arms reductions).
  • I was heartened by the compassion Americans showed for children trapped in a cave 10,000 miles away. The news coverage did a lot to humanize these children, and it would be nice to see more of that closer to home.

Most interesting stories, that were not particularly frightening or hopeful, or perhaps were a mixture of both:

June 2018 in Review

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Most frightening stories:

Most hopeful stories:

Most interesting stories, that were not particularly frightening or hopeful, or perhaps were a mixture of both:

  • Explicit taxes to fund wars were the norm in the U.S. right up to the Vietnam war.
  • In technology news, Google and Airbus are considering teaming to build a space catapult. The Hyperloop might be a real thing between Chicago’s downtown and airport.
  • Just under 0.1% of migrants crossing the U.S. border are members of criminal gang such as MS-13. About half of border crossers are from Mexico while the other half are mostly from Honduras, Guatemala, and El Salvador. Some are fleeing violence or repression, while others are simply looking for economic opportunity.

2017 in Review

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Most frightening stories of 2017:

  • January: The U.S. government may be “planning to roll back or dilute many of the provisions of Dodd-Frank, particularly those that protect consumers from toxic financial products and those that impose restrictions on banks”.
  • February: The Doomsday Clock was moved to 2.5 minutes to midnight. The worst it has ever been was 2 minutes to midnight in the early 1980s. In related news, the idea of a U.S.-China war is looking a bit more plausible. The U.S. military may be considering sending ground troops to Syria.
  • March: La Paz, Bolivia, is in a serious crisis caused by loss of its glacier-fed water supply. At the same time we are losing glaciers and snowpack in important food-growing regions, the global groundwater situation is also looking bleak. And for those of us trying to do our little part for water conservation, investing in a residential graywater system can take around 15 years to break even at current costs and water rates.
  • April: The U.S. health care market is screwed up seemingly beyond repair. Why can’t we have nice things? Oh right, because our politicians represent big business, not voters. Also, we have forgotten the difference between a dialog and an argument.
  • May: We hit 410 ppm at Mauna Loa.
  • June: The Onion shared this uncharacteristically unfunny observation: “MYTH: There is nothing mankind can do to prevent climate change. FACT: There is nothing mankind will do to prevent climate change”. It’s not funny because it’s probably true.
  • July: Long term food security in Asia could be a problem.
  • August: The U.S. construction industry has had negligible productivity gains in the past 40 years.
  • September: During the Vietnam War the United States dropped approximately twice as many tons of bombs in Southeast Asia as the Allied forces combined used against both Germany and Japan in World War II. After the Cold War finally ended, Mikhail Gorbachev made some good suggestions for how to achieve a lasting peace. They were ignored. We may be witnessing the decline of the American Empire as a result.
  • October: It is possible that a catastrophic loss of insects is occurring and that it may lead to ecological collapse. Also, there is new evidence that pollution is harming human health and even the global economy more than previously thought.
  • November: I thought about war and peace in November. Well, mostly war. War is frightening. The United States of America appears to be flailing about militarily all over the world guided by no foreign policy. Big wars of the past have sometimes been started by overconfident leaders thinking they could get a quick military victory, only to find themselves bogged down in something much larger and more intractable than they imagined. But enemies are good to have – the Nazis understood that a scared population will believe what you tell them.
  • December: A lot of people would probably agree that the United States government is becoming increasingly dysfunctional, but I don’t think many would question the long-term stability of our form of government itself. Maybe we should start to do that. The Consumer Financial Protection Bureau has been doing a decent job of protecting consumers and reducing the risk of another financial crisis. The person in charge of it now was put there specifically to ruin it. Something similar may be about to happen at the Census Bureau. A U.S. Constitutional Convention is actually a possibility, and might threaten the stability of the nation.

Most hopeful stories of 2017:

Most interesting stories that weren’t particularly frightening or hopeful, or perhaps were a mixture of both:

  • January: Apple, Google, and Facebook may destroy the telecom industry.
  • February: The idea of growing human organs inside a pig, or even a viable human-pig hybrid, is getting very close. Tiny brains can also be grown on a microchip. Bringing back extinct animals is also getting very close.
  • March: Bill Gates has proposed a “robot tax”. The basic idea is that if and when automation starts to increase productivity, you could tax the increase in profits and use the money to help any workers displaced by the automation. In related somewhat boring economic news, there are a variety of theories as to why a raise in the minimum wage does not appear to cause unemployment as classical economic theory would predict.
  • April: I finished reading Rainbow’s End, a fantastic Vernor Vinge novel about augmented reality in the near future, among other things.
  • May: The sex robots are here.
  • June: “Fleur de lawn” is a mix of perennial rye, hard fescue, micro clover, yarrow, Achillea millefolium, sweet alyssum, Lobularia maritima, baby blue eyes, Nemophila menziesi, English daisy, Bellis perennis, and O’Connor’s strawberry clover, Trifolium fragiferum.
  • July: Ecologists have some new ideas for measuring resilience of ecosystems. Technologists have some wild ideas to have robots directly counteract the effects of humans on ecosystems. I like ideas – how do I get a (well-compensated) job where I can just sit around and think up ideas?
  • August: Elon Musk has thrown his energy into deep tunneling technology.
  • September: I learned that the OECD Science, Technology and Innovation Outlook named “ten key emerging technology trends”: The Internet of Things, Big data analytics, Artificial intelligence, Neurotechnologies, Nano/microsatellites, Nanomaterials, Additive manufacturing / 3D printing, Advanced energy storage technologies, Synthetic biology, Blockchain
  • October: Even if autonomous trucks are not ready for tricky urban situations, they could be autonomous on the highway with a small number of remote-control drivers guiding a large number of tricks through tricky urban maneuvers, not unlike the way ports or trainyards are run now. There is also new thinking on how to transition highways gradually through a mix of human and computer-controlled vehicles, and eventually to full computer control. New research shows that even a small number of autonomous vehicles mixed in with human drivers will be safer for everyone. While some reports predict autonomous taxis will be available in the 2020s, Google says that number is more like 2017.
  • November: It’s possible that the kind of ideal planned economy envisioned by early Soviet economists (which never came to pass) could be realized with the computing power and algorithms just beginning to be available now.
  • December: Microsoft is trying to one-up Google Scholar, which is good for researchers. More computing firepower is being focused on making sense of all the scientific papers out there.

I’ll keep this on the short side. Here are a few trends I see:

Risk of War. I think I said about a year ago that if we could through the next four years without a world war or nuclear detonation, we will be doing well. Well, one year down and three to go. That’s the bright side. The dark side is that it is time to acknowledge there is a regional war going on in the Middle East. It could escalate, it could go nuclear, and it could result in military confrontation between the United States and Russia. Likewise, the situation in North Korea could turn into a regional conflict, could go nuclear, and could lead to military confrontation between the United States and China.

Decline…and Fall? A question on my mind is whether the United States is a nation in decline, and I think the surprisingly obvious answer is yes. The more important question is whether it is a temporary dip, or the beginning of a decline and fall.

Risk of Financial Crisis. The risk of another serious financial crisis is even scarier that war in some ways, at least a limited, non-nuclear war. Surprisingly, the economic effects can be more severe, more widespread and longer lasting. We are seeing the continued weakening of regulations attempting to limit systemic risk-taking for short-term gain. Without a pickup in long-term productivity growth and with the demographic and ecological headwinds that we face, another crisis equal to or worse than the 2007 one could be the one that we don’t recover from.

Ecological Collapse? The story about vanishing insects was eye-opening to me. Could global ecosystems go into a freefall? Could populous regions of the world face a catastrophic food shortage? It is hard to imagine these things coming to a head in the near term, but the world needs to take these risks seriously since the consequences would be so great.

Technology. With everything else going on, technology just marches forward, of course. One technology I find particularly interesting is new approaches to research that mine and attempt to synthesize large bodies of scientific research.

Can the human species implement good ideas? Solutions exist. I would love to end on a positive note, but at the moment I find myself questioning whether our particular species of hairless ape can implement them.

But – how’s this for ending on a positive note – like I said at the beginning, the one thing about 2017 that definitely didn’t suck was that we didn’t get blown up!

July 2017 in Review

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Most frightening stories:

Most hopeful stories:

  • A new cancer treatment genetically modifies a patient’s own immune system to attack cancer cells.
  • Shareholders of big fossil fuel companies are starting to force some action on climate change business risk disclosure.
  • Richard Florida offers five ideas for solving poverty and what is wrong with cities: taxing land based on its improved value, massive investment in public transportation and public education, ending the mortgage interest tax deduction, and guaranteed minimum income.

Most interesting stories, that were not particularly frightening or hopeful, or perhaps were a mixture of both:

  • Technology is marching on, whether or not the economy and human species are. The new thing with satellites is to have lots of small, cheap ones instead of a few big, expensive ones. Even if the coal industry were to make a comeback, today’s coal jobs are going to data analysts, remote control machine operators, mechanical and electrical engineers, not guys underground with pickaxes and headlamps. But the coal can be produced with a lot less human effort (i.e. jobs) than it used to be. Iris scans like in Minority Report are now a thing.
  • Ecologists have some new ideas for measuring resilience of ecosystems. Technologists have some wild ideas to have robots directly counteract the effects of humans on ecosystems. I like ideas – how do I get a (well-compensated) job where I can just sit around and think up ideas?
  • Isaac Asimov says truly creative people (1) are weird and (2) generally work alone.

Some combination of the Trump news, the things I see every day on the streets of Philadelphia, and events affecting friends and family led me to question this month whether the United States is really a society in decline. Actually, I don’t question that, I think the answer is yes. But the more important question is whether it is a temporary or permanent decline, and what it means for the rest of the globe. I am leaning slightly toward permanent, but maybe I will feel better next month, we’ll see. Maybe I need to get out of this country for a little while. Last time I did that I felt that the social glue holding Americans together is actually pretty strong compared to most other places, even if our government and its approach to other governments have become largely dysfunctional. We need to get through the next couple years without a nuclear detonation, hope the current vacuum of leadership leads some quality leaders to emerge, and hope things have nowhere to go but up. There, I talked myself off the ledge!

 

June 2016 in Review

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3 most frightening stories

  • Coral reefs are in pretty sad shape, perhaps the first natural ecosystem type to be devastated beyond repair by climate change.
  • Echoes of the Cold War are rearing their ugly heads in Western Europe.
  • Trump may very well have organized crime links. And Moody’s says that if he gets elected and manages to do the things he says, it could crash the economy.

3 most hopeful stories

  • China has a new(ish) sustainability plan called “ecological civilization” that weaves together urban and regional planning, environmental quality, sustainable agriculture, habitat and biodiversity concepts. This is good because a rapidly developing country the size of China has the ability to sink the rest of civilization if they let their ecological footprint explode, regardless of what the rest of us do. Maybe they can set a good example for the rest of the developing world to follow.
  • Genetic technology is appearing to provide some hope of real breakthroughs in cancer treatment.
  • There is still some hope for a technology-driven pick-up in productivity growth.

3 most interesting stories

May 2016 in Review

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3 most frightening stories

  • There are scary and seemingly reckless confrontations going on between U.S. and Russian planes and ships in the Indian Ocean. And yet, it is bizarrely humorous when real life imitates Top Gun.
  • The situation in Venezuela may be a preview of what the collapse of a modern country looks like.
  • Obama went to Hiroshima, where he said we can “chart a course that leads to the destruction” of nuclear weapons, only not in his lifetime. Obama out.

3 most hopeful stories

3 most interesting stories

  • I try not to let this blog get too political, really I do. But in an election season I just can’t help myself. This is a blog about the future of civilization, and the behavior of U.S. political, bureaucratic, and military elites obviously has some bearing on that. In May I mused on whether the U.S. could possibly be suffering from “too much democracy“, Dick Cheney, equality and equal opportunity, and what’s wrong with Pennsylvania. And yes, I’ve said it before and I’ll say it again, TRUMP IS A FASCIST!
  • The world has about a billion dogs.
  • It turns out coffee grounds may not make good compost.

more on China’s “ecological civilization”

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The United Nations has a new report on China’s “ecological civilization” plan. What seems notable is that it takes an urban and regional planning framework, then weaves in goals related to environmental quality and sustainable agriculture. There are also a few targets related to habitat and biodiversity conservation. It’s a good vision and contains all the right rhetoric.