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The Wealth and Well-Being of Nations

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The Wealth and Well-Being of Nations The Wealth and Well-Being of Nations Well-Being and Wealth The • Dani Rodrik Dani Contributors The Annual Proceedings of Dani Rodrik Ted Liu Sharun Mukand Jennifer Esperanza Rachel Ellett XI Volume 2018-2019 • Diep Phan Pablo Toral Darlington Sabasi Johnson Gwatipedza Xinshen Diao The Wealth and Well-Being of Nations Margaret McMillan Beatrice McKenzie Jonathan Mason Ivan Gradjansky 2018-2019 Department of Economics Volume XI: Globalization and the Wealth and Well-Being of Nations Dani Rodrik Diep Phan, Editor The Miller Upton Program at Beloit College he Wealth and Well-Being of Nations was Testablished to honor Miller Upton, Beloit College’s sixth president. This annual forum provides our students and the wider community the opportunity to engage with some of the leading intellectual figures of our time. The forum is complemented by a suite of programs that enhance student and faculty engagement in the ideas and institutions that lay at the foundation of free and prosperous societies. Cover Photo © Amanda Reseburg, Type A Images Senior Seminar on The Wealth and Well-Being of Nations: ach year, seniors in the Department of Economics participate in a semester- Elong course that is built around the ideas and influence of that year’s Upton Scholar. By the time the Upton Scholar arrives in October, students will have read several of his or her books and research by other scholars that has been influenced by these writings. This advanced preparation provides students the rare opportunity to engage with a leading intellectual figure on a substantive and scholarly level. Endowed Student Internship Awards: portion of the Miller Upton Memorial Endowments supports exceptional A students pursuing high-impact internship experiences. Students are encouraged to pursue internships with for-profit firms and non-profit research organizations dedicated to advancing the wealth and well-being of nations. Student Research Colloquium and Speaker Series: he department has initiated a research colloquium that gives students the Topportunity to read and discuss seminal articles aimed at deepening their understanding of the market process. Students also develop original analysis that applies economic ideas to novel contexts. Colloquium participants receive close mentoring as they craft an article with the eventual goal of publication in a newspaper, magazine, or academic journal. The themes of the research colloquium and annual forum are supported with a speaker series featuring the next generation of scholars working on questions central to our understanding of the nature and causes of wealth and well-being. Annual Proceedings of The Wealth and Well-Being of Nations: he keynote address presented by the Upton Scholar is an important Tcontribution to the public discourse on the nature and causes of wealth and well-being. Further, the annual forum includes presentations by noted scholars who expand upon or challenge the work of the Upton Scholar. These presentations are assembled in the Annual Proceedings of the Wealth and Well- Being of Nations, which serves as an important intellectual resource for students, alumni, and leaders within higher education. The Annual Proceedings of the Wealth and Well- Being of Nations 2018-2019 Volume XI Diep Phan Editor Jennifer Kodl Managing Editor Copyright © 2019 Beloit College Press. The Annual Proceedings of the Wealth and Well-Being of Nations, 2018-2019. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form, or by any means, electronic, mechanical, recorded, photocopied, or otherwise, without the prior permission of the copyright owner, except by a reviewer who may quote brief passages in a review. Printed in the United States of America ISBN: 978-0-578-54323-9 Contents Introduction Diep Phan .................................................................................................. 11 Part I: Globalization Around the World Globalization and the Wealth and Well-Being of Nations Dani Rodrik ..........................................................................................23 Guarding (Against) Financial Globalization: International Financial Safety Nets and Sovereign Debt Default Ted Liu .................................................................................................43 Globalization, Policy Convergence, and Liberal Democracy Sharun Mukand ....................................................................................61 Part II: Globalization in the Developing World Global Pan-Ethnics and Other Exotic Imaginaries in Bali, Indonesia Jennifer Esperanza .................................................................................75 The Emperor’s Law Stops at the Village Gate: The Evolution of Vietnam’s Land Law Reform Rachel Ellett and Diep Phan ..................................................................83 Washington Blues, Pink Tides, and Brown Development. The Political Economies of Neo-Extractivism in the Andes Pablo Toral ..........................................................................................109 The Economic Consequences of Globalization in Africa Darlington Sabasi and Johnson Gwatipedza ..........................................137 Manufacturing in Ethiopia and Tanzania: Challenges and Opportunities Xinshen Diao and Margaret McMillan .................................................157 Contents Part III: Globalization in the Developed World Beloit Wisconsin 1896-1914: Global Integration of a Midwestern Industrial Town Beatrice McKenzie ...............................................................................177 Roger Douglas and His Legacy Jonathan Mason .................................................................................189 Trumping Trump: Why U.S. Tariffs Won’t Fix the Trade Balance, and What Will?” Ivan Gradjansky ..................................................................................221 Contributors Diep Phan is the Elbert H. Neese, Jr. Professor of Economics, Beloit College. Dani Rodrik, the 2018 Miller Upton Scholar, is the Ford Foundation Professor of International Political Economy at Harvard University’s John F. Kennedy School of Government. He rejoined the Kennedy School in July 2015 after two years at the Institute for Advance Study as the Albert O. Hirschman Professor in the School of Social Science. Ted Liu is a PhD student in Economics at the University of California, Santa Cruz. Sharun Mukand is Professor of Economics, Warwick University and Research Scholar, Institute for Advanced Study. Jennifer Esperanza is Associate Professor of Anthropology, Beloit College. Rachel Ellett is Associate Professor of Political Science, Beloit College. Pablo Toral is Professor and Chair of Political Science, Beloit College. Darlington Sabasi was Assistant Professor of Economics at Beloit College. Johnson Gwatipedza is Visiting Professor of Economics at Beloit College. Xinshen Diao is Senior Research Fellow, International Food Policy Research Institute (IFPRI). Margaret McMillan is Professor of Economics, Tufts University; Research Associate, NBER; Senior Research Fellow, International Food Policy Research Institute (IFPRI). Beatrice McKenzie is Keefer Professor of Public Humanities, Beloit College. Jonathan Mason is a member of the Board of Trustees and an alumnus of Beloit College, class of 1980. He is currently an independent director of Vector, Zespri and Air New Zealand. Ivan Gradjansky graduated from Beloit College in 2019 with a degree in Economics. Introduction 11 Introduction Diep Phan1 he Miller Upton Forum on the Wealth and Well-Being of Nations is the centerpiece of a suite of programs named in honor of Beloit College’s sixth president, Miller Upton, and are inspired by Miller’s unflagging Tdedication to the ideals of a liberal society: political freedom, the rule of law, and peace and prosperity through the voluntary exchange of goods and ideas. The key event of the Miller Upton Forum is the visit and keynote address by the Upton Scholar, whose distinguished work becomes the theme of the fo- rum. In the same week, there are two to three panel discussions with six to ten additional speakers delivering talks on the same theme. All of these talks are published in the Annual Proceedings of the Wealth and Well-Being of Nations. It was with great pleasure that I directed, for the first time, the 2018 Miller Upton Forum on “Globalization and the Wealth and Well-Being of Nations,” featuring the 2018 Miller Upton Scholar Dani Rodrik and nine other speakers. It is now with great honor that I introduce the eleventh Annual Proceedings of the Wealth and Well-Being of Nations, which composes of the ten papers presented at the Forum and one student paper. Many of the previous Miller Upton Forums focused on the institutional foundations that support long-run economic growth and development, such as social institutions and the rule of law (2008 Inaugural Forum), property rights (2009 Forum), entrepreneurship (2010 Forum), self-governance (2011 Forum), institutional change (2012 Forum), and economic freedom (2013 Fo- rum). The 2014 and 2016 Forums switched gear to study energy and environ- mental issues and examined one of the greatest threats to continued improve- ment in the wealth and wellbeing of nations: anthropogenic climate change. The 2015 Forum returned to an earlier theme--entrepreneurship--but shifted focus away from the West and toward the Chinese Economy, where one-fifth of the world’s population resides. 1 Diep Phan is the Elbert H.
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