The Skimmer

False Economy: A Surprising Economic History of the World By Alan Beattie Riverhead Books; 321 pages

At the end of the 19th century, Argentina was one of the world's richest countries; poor European emigrants found themselves choosing between New York City and Buenos Aires. Somewhere along the way, though, things took a turn. Much has been written about why some economies thrive while others flail. But compared with works like Jared Diamond's Guns, Germs, and Steel, Beattie's take is markedly less deterministic. Corruption may have killed Africa, he notes, but it worked rather well in South Korea, where bribery attained taxlike precision. Beattie, an editor at the Financial Times, develops a few themes: free trade is good. Infrastructure is unsexy but vital. Capital cities are best kept small (making rioting less likely). For the most part, though, he tosses evidence on the table, then walks away. Debunking the supposed link between the Protestant work ethic and the rise of modern capitalism, Beattie notes that "the reality is much more complex"--that any sort of society can choose economic success. He just never says exactly how.

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