Tag Archives: economist

Book concluding that migration is beneficial to rich and poor

Geese migrating

The Economist has a review of a book on migration which sounds extremely interesting. This is something I often think about as I find myself constrained by the country of my birth.

I think that there is a strong argument that discriminating against someone based on country of birth is like discriminating against someone based on race.

But this book makes an even more powerful argument: the economic benefits of migration vastly outweigh the costs.

For instance take the second paragraph:

“If rich countries were to admit enough migrants from poor countries to expand their own labour forces by a mere 3%, the world would be richer, according to one estimate, by $356 billion a year. Completely opening borders would add an astonishing $39 trillion over 25 years to the global economy. That is more than 500 times the amount the rich world spends on foreign aid each year. Migration is the most effective tool yet devised for reducing global poverty.

The book discusses the history of migration before going on to argue that more migration would benefit both poor countries and rich countries.

Poor countries

On the balance migration helps poor countries even though they may lose some of their most skilled citizens. People have an incentive to develop marketable skills but might not migrate; skilled workers often return home after working abroad; migrants send significant amounts of money back to poor countries. And of course the migrants themselves obviously benefit or they wouldn’t leave.

Rich countries

Multiple studies have apparently shown that migrants create more jobs and employment than they consume. Host nations are net beneficiaries of migration. The USA is a nation built on immigrants! Finally, demographic shifts mean that rich countries may come to depend on migrants as their workforces age.


The smart (and I would argue morally correct) move is to allow more immigration. Sadly the world seems to be moving in the opposite direction.



Civilians do most of the dying in Iraq

Graph showing the types of people being killed in Iraq

The Economist has put up this graph showing who is doing the dying in Iraq. The graph is interesting not only for its content but also because of the data source.

Firstly, the graph shows that by far the biggest victims of the ongoing violence in Iraq are civilians. Especially around 2006 and 2007 far more civilians were dying than combatants.

The source of the data is also interesting. Wikileaks is a website dedicated to whistleblowing. They allow anonymous posting of any sensitive information. Somehow Wikileaks got hold of 400,000 reports from the US military.

The graph above comes from those reports. So this is the US military’s own data.

The last Micronesian navigator

Mau Piailug was the last of the great Micronesian ocean navigators

The Economist has a great obituary on the last of the great Micronesian ocean navigators – Mau Piailug.

Piailug grew up on a tiny (less than 3km long) island where survival required sailing far out to sea for deep water fishing. The inhabitants of the island were experts in navigation using stars, winds, birds and various other signs available before the advent of modern navigation.

Piailug began studying to be a master navigator with his grandfather at age 5 and was the last local to learn navigation in the traditional way. From the article:

“He could read how far he was from shore, and its direction, by the feel of the swell against the hull. He could detect shallower water by colour, and see the light of invisible lagoons reflected in the undersides of clouds. Sweeter-tasting fish meant rivers in the offing; groups of birds, homing in the evening, showed him where land lay.”

He became famous by successfully sailing a little double hulled canoe from Hawaii to Tahiti using no modern equipment at all. In an expedition reminiscent of the great Kon Tiki journey he did so to prove that it was possible for ancient navigators to do so.

In his later life Piailug taught others the ways of navigation, this time allowing them to make notes and record the ancient knowledge. If he hadn’t done so, this amazing knowledge would have been lost to us forever.

The Red Queen in Iraq

The Red Queen has to keep running just to stay in the same place

The Economist has a fascinating article on the arms race going on between American soldiers and bomb makers in Iraq and Afghanistan.

A great example is something called “Darwin” patrols. Many early improvised explosive devices (IEDs) were triggered by remote controls for garage doors. The CIA quickly realized this and began driving around pressing their own garage openers. Any bomb makers nearby would be blown up.

Predictably, these easy wins didn’t last. By killing those bomb makers the CIA effectively improved bomb making. Only better IEDs and bomb makers survived – hence the name “Darwin” patrols.

As the coalition forces become better at detecting IEDs the bomb makers get better at making them. There are plenty more examples of innovation being met with innovation in the article.

Both sides must constantly keep improving just to keep up. This is common in evolutionary biology and is known as the Red Queen effect.

In Through the Looking Glass (the sequel to Alice in Wonderland) the Red Queen tells Alice:

“It takes all the running you can do, to keep in the same place. If you want to get somewhere else, you must run at least twice as fast as that.”

It’s a great name for this effect.

Wherever there is competition, from biology to the Iraq war to the office, the Red Queen effect arises. We have to keep moving, just to stay where we are.

The Economist on corruption in South Africa

The latest Economist has an article on corruption in South Africa. It makes for pretty frightening reading.


The article mentions several high profile cases of corruption: Zuma, Cwele, Selebi, etc.

There is also discussion of several other examples of corruption.

  • 400,000 civil servants getting welfare payments to which they are not entitled
  • 6,000 senior government officials who failed to declare business interests and are awaiting disciplinary hearings
  • 423 prison officials disciplined for corruption; 26 criminally charged
  • 923 corrupt officials from the ministry of public works have been ‘brought to book’


Corruption among those in power is a human condition. However, it seems that ANC officials are especially prone to corruption.

Even Gwede Mantashe, the ANC secretary-general, explains that too many “comrades” regard election to office as simply a chance to get rich.

The Economist also mentions that corruption in South Africa is exacerbated by “a culture of entitlement to compensate for past suffering under apartheid”.

In other words many in the ANC feel entitled to take their fill because of our history. As I have blogged in the past, a feeling of entitlement has been shown to make corruption significantly worse.

Silver lining

The ANC claims to be working on several corruption busting laws and measures including:

  • Laws to facilitate swifter and reliable prosecution of corrupt officials
  • A review of the ANC’s deployment policies which currently put people into jobs based on having the right connections instead of the right skills
  • Tougher rules and more openness on the awarding of public contracts
  • Better protection for whistle blowers who are often suspended for “poking their noses into smelly areas”

The Psychology of Power and Corruption

The old anecdote says that power corrupts, and absolute power corrupts absolutely. The Economist has a fascinating article describing experiments into this effect.

These experiments show that there is in fact a causal link between power and corruption. Even more interestingly, they may point to the reason for this link.

How the experiments work

The researchers used “priming” techniques to make test subjects feel either powerful or powerless.

Once primed, both high-power and low power subjects were asked to rate the morality of various situations. For example the researchers asked subjects to rate the morality of cheating on taxes or of taking an abandoned bicycle.

The results

The experiments showed a significant difference in the judgments of high-power and low power subjects:

  • High-power = Judge others more harshly than yourself
  • Low-power = Judge others more leniently and yourself more harshly

Power does indeed seem to cause people to judge themselves more leniently than others – they are moral hypocrites.

The entitlement hint

It seems that powerful people not only abuse the system, they also feel entitled to abuse it. This proved to be an important hint and the researchers did more experiments to explore this entitlement.

In these experiments the subjects were primed again, but this time entitlement was split from power:

  • High-power subjects who felt they deserved to be powerful
  • High-power subjects who felt they did not deserve the power
  • Low-power who deserved to be powerless
  • Low-power who did not deserve to be powerless

These subjects were also asked to rate moral actions of themselves and others.

Again the powerless judged others leniently and themselves harshly. This was true whether they legitimately powerless or not.

As expected, those who felt entitled to their power judged others very harshly and themselves very leniently.

The interesting result is for those who were powerful but felt the high-power position was undeserved. These subjects were lenient on others but very harsh on themselves.

This was the exact opposite of the normal result for high-power test subjects.

The reasons why

Why would undeserving powerful people be harsher on themselves than others? That is the opposite of the usual reaction to having power.

The answer to that question provides an elegant explanation for the whole set of results.

Humans evolved living in smallish groups with dominance hierarchies. In such hierarchies all of the experimental results make sense.

Powerful (dominant) members of the band can get away with bending the rules (judging themselves more leniently). They should also deal harshly with anyone lower in the hierarchy taking a chance (judging others more harshly).

Powerless group members should be submissive – they should judge others (normally more dominant) leniently and themselves harshly.

When people from low in the hierarchy find themselves temporarily in powerful positions they are in danger of attracting punishment from the true dominants.

So they act extra-submissively by judging themselves extra harshly and being extra lenient on others.

It all makes sense!

Economist on South Africa’s education results

The Economist has an article on education in South Africa. Some of the facts from the article:

  • South Africa spends about 5% of GDP on education – more than any other country in Africa
  • About 50% of students drop out before achieving a Matric
  • Only 15% of Matrics get marks good enough to enter university
  • The Matric pass rate has fallen from 73% in 2003 to 61% in 2009

The results are drastically different for white and black students. For example, matric mathematics results are enormously different between the two races.

Graph comparing South African educational results for white vs. black students

The article goes on to speculate about the causes of these dismal results. Obviously the historical impact of Apartheid policies on black education is mentioned. The OBE initiative also cops some blame.

But why would results be getting worse even 15 years after Apartheid and despite affirmative action programs?

The Economist speculates that the appalling quality of teachers is also to blame. The article notes that teachers’ unions prevent teachers from being evaluated – a sure recipe for bad teachers. If someone isn’t evaluated on performance, then they aren’t going to perform.

Teachers really should be evaluated on their performance – just like the rest of us.

Another excellent obituary from The Economist

Charis Wilson nudeIf I were to pick a single article from each week’s Economist it would be the obituary. The last article in each edition, I often find the obituaries the most enjoyable to read.

Reading an obituary in The Economist is to be given a series of glimpses into a life, after which you have a feeling for the subject that mere story telling can’t provide.

Not every such article captures me, but some are certainly stunning and I always look forward to the final article in each edition.

This week the subject of the obituary is Charis Wilson, a model and writer who was prominent in the 1930’s and 40’s.

Initially the subject of beautiful photographs by Edward Weston she eventually wrote the articles for his books.

The article is a gem and I recommend it – good returns for a single page of reading.

Why red wine doesn’t go with seafood

One of the first things that I learned when I was a waiter in a seafood restaurant is that red wine doesn’t go with fish.

Why that was, I had no idea. It turns out that nobody else did either.

The Economist has this article detailing how some researchers were able to find the answer.

In an experiment the researchers analyzed wines tasted with seafood and found that wines with high iron content left an unpleasant taste. Generally red wines have a higher iron content and therefore don’t taste good with seafood.

In order to test the hypothesis the researchers changed the iron content in various wines and repeated the test. Sure enough iron content was strongly correlated with a foul taste.

Science is awesome. I must be honest though – I don’t mind red wine with seafood. Apparently the combination tastes very fishy and I like that taste.

How do wooden buildings hundreds of years old still stand

A Japanese Pagoda

A pagoda is a tall and often very old structure built entirely out of wood.

They are common in Japan and some are extremely old. For example “Horyuji pagoda in Nara was built in 607 and is thought to be the oldest multi-storey wooden structure in the world.”

The Economist has an article explaining just how these structures have managed to survive hundreds of years of typhoons and earthquakes.


  • To withstand very heavy rains the eaves are extended way beyond the building’s width – about 70% beyond!
    • This prevents rain water from weakening the foundations
  • The floors are not actually attached. They are simply stacked on top of eachother and held down by the weight of the heavy tiles on the roof
    • This allows each floor to move during an earthquake without breaking up
  • There is a central pillar known as a shinbashira that (normally) rests on the ground
    • This pillar prevents the shifting floors from sliding off eachother and also transmits the energy into the ground.

It’s a fascinating article and a good example of why The Economist is so great.