New Books in Economics

How do states build vital institutions for market development? Too often, governments confront technical or political barriers to providing the rule of law, contract enforcement, and loan access. In From Click to Boom: The Political Economy of E-Commerce in China (Princeton, 2024) Lizhi Liu suggests a digital solution: governments strategically outsourcing tasks of institutional development and enforcement to digital platforms—a process she calls “institutional outsourcing.”China’s e-commerce boom showcases this digital path to development. In merely two decades, China built from scratch a two-trillion-dollar e-commerce market, with 800 million users, seventy million jobs, and nearly fifty percent of global online retail sales. Contrary to conventional wisdom, Liu argues, this market boom occurred because of weak government institutions, not despite them. Gaps in government institutions compelled e-commerce platforms to build powerful private institutions for contract enforcement, fraud detection, and dispute resolution. For a surprisingly long period, the authoritarian government acquiesced, endorsed, and even partnered with this private institutional building despite its disruptive nature. Drawing on a plethora of interviews, original surveys, proprietary data, and a field experiment, Liu shows that the resulting e-commerce boom had far-reaching effects on China.Institutional outsourcing nonetheless harbors its own challenges. With inadequate regulation, platforms may abuse market power, while excessive regulation stifles institutional innovation. China’s regulatory oscillations toward platforms—from laissez-faire to crackdown and back to support—underscore the struggle to strike the right balance.Lizhi Liu is assistant professor at the McDonough School of Business at Georgetown University, where she is also a faculty affiliate of the Department of Government. Her work has been published by American Economic Review: Insights, Studies in Comparative International Development, Minnesota Law Review, Oxford University Press, and Princeton University Press. She was also listed as a Poets&Quants Top 50 Undergraduate Business Professor of 2021. She holds degrees in Political Science (PhD), Statistics (MS), and International Policy Studies (MA) from Stanford University and in International Relations (LLB) from Renmin University of China.Interviewer Peter Lorentzen is an Associate Professor of Economics at the University of San Francisco, a nonresident scholar at the UCSD 21st Century China Center, an alumnus of the Public Intellectuals Program of the National Committee on US-China Relations, and is currently a visiting scholar at the Stanford Center on China’s Economy and Institutions. His research focuses on the economics of information, incentives, and institutions, primarily as applied to the development and governance of China. He created the unique Master’s of Science in Applied Economics at the University of San Francisco, which teaches the conceptual frameworks and practical data analytics skills needed to succeed in the digital economy.Lorentzen’s other NBN interviews relating to China’s tech sector include Trafficking Data, on how Chinese and American firms exploit user data, The Tao of Alibaba, on Alibaba’s business model and organizational culture, Surveillance State, on China’s digital surveillance, Prototype Nation, on the culture and politics of China’s innovation economy. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Why do efforts to build effective states and deliver services to citizens so often go wrong? And how can understanding the inside of the political mind empower us to achieve better results? In this podcast, Nic Cheeseman talks to Greg Power about his important new book, based on the experience of working with hundreds of politicians in more than sixty countries. In Inside the Political Mind: The Human Side of Politics and How It Shapes Development (Oxford UP, 2024), Greg explains why individual politicians and norms of behaviour and more powerful than formal rules and institutions, and why practical challenges so often encourage citizens and politicians to go around the state rather than working through it. This leads to a radical new way of thinking about state-building and development that works from the bottom-up on the basis of what leaders and their people want, rather than what the international community assumes they need.Guest:Greg Power is the founder and Board Chair of Global Partners Governance Practice (GPG), a social purpose company that provides support to politicians, ministers and officials to strengthen their systems of governance. He is well known for having worked in a remarkable variety of countries including many – such as Iraq – during periods in which political systems and state institutions were under the most intense strain. He was previously a special adviser to British ministers Rt Hon Robin Cook MP and Rt Hon Peter Hain MP, working on strategies for parliamentary reform, constitutional change and the wider democratic agenda in conjunction with the Prime Minister’s Strategy Unit and Downing Street policy staff, and was awarded an OBE for services to parliamentary democracy and political reform in the January 2023 New Year’s Honours.Presenter:Nic Cheeseman is the Professor of Democracy and International Development at the University of Birmingham and Founding Director of CEDAR.The People, Power, Politics podcast brings you the latest insights into the factors that are shaping and re-shaping our political world. It is brought to you by the Centre for Elections, Democracy, Accountability and Representation (CEDAR) based at the University of Birmingham, United Kingdom. Join us to better understand the factors that promote and undermine democratic government around the world and follow us on Twitter at @CEDAR_Bham! Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

This is episode three Cited Podcast’s new season, the Use & Abuse of Economic Expertise. This season tells stories of the political and scholarly battles behind the economic ideas that shape our world. For a full list of credits, and for the rest of the episodes, visit the series page.For much of the 20th century, few economists studied inequality. “Watching the study of inequality was like watching the grass grow,” is the way inequality scholar James K. Galbraith put it to us. Yet, the inequality studies grass is growing today–really, it’s something of a lush jungle. Arguably, the return of inequality studies is biggest change that has happened in economics over the last decade or so. Why did it return? Just as importantly, how could it have possibly disappeared? On this episode, we survey the broad political and intellectual history of inequality studies in economics.First, economist Branko Milanovic, author of Visions of Inequality: From the French Revolution to the End of the Cold War, introduces us to a few of the reasons why inequality was marginalized, including the mathematization of the economic mainstream. In short, we sidelined the political in political economy. Then, political theorist Michael Thompson, author of The Politics of Inequality: A Political History of the Idea of Economic Inequality in America, introduces us to the work of Frank Knight and other market-friendly economists who provided ideological justification for widening inequality. Finally, inequality scholar Poornima Paidipaty, speaks to us about the return of inequality studies, particularly through the landmark work of Thomas Piketty. Yet, Paidipaty and her co-author Pedro Ramos Pinto highlight some of the limits of Picketty’s vision in their article “Revisiting the “Great Levelling”: The limits of Piketty’s Capital and Ideology for understanding the rise of late 20th century inequality.” Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Shahar Hameiri, a political science professor at The University of Queensland, and Lee Jones, an expert in international politics at Queen Mary University, delve into the infrastructure rivalry between the U.S. and China. They dissect China's Belt and Road Initiative and its geopolitical impact, revealing why American initiatives struggle to keep pace. The discussion highlights U.S. underinvestment, the challenges of attracting private capital, and the contrasting approaches to public-private partnerships. Listeners gain insights into the evolving landscape of global infrastructure finance.

In a compelling discussion, Emiliana Vegas, a Professor at Harvard and author of 'Let's Change the World', shares her two decades of experience in international development. She highlights the critical role of education in global impact and offers insider tips on navigating this complex field. Vegas emphasizes the importance of mentorship and strategic networking for aspiring changemakers. She also candidly reflects on balancing motherhood with professional ambitions and the vital influence of supportive supervisors in fostering a thriving career in international development.

Mara Kardas-Nelson, an independent journalist focused on international development, dives into the tangled history of microfinance. She shares intimate stories from Sierra Leone, revealing how high-interest loans often hinder rather than help women. Kardas-Nelson critiques the simplistic narratives surrounding microfinance, urging a reevaluation of its impact and the realities facing borrowers. She also reflects on her personal journey in documenting these experiences, highlighting the complex interplay between international aid and local economic challenges.

Melissa Teixeira, a historian specializing in Brazil and Latin America, explores the unique corporatist experiments in Brazil and Portugal following the Great Depression. She delves into how dictators Vargas and Salazar reshaped these nations, dismantling democratic structures to implement state-controlled economies. Teixeira discusses the societal impacts of this approach and the tensions it created, revealing how these countries became unexpected hubs of economic innovation amid political strife.

Salem Elzway is a postdoctoral fellow at the University of Southern California, specializing in industrial robots and labor history, while Jason Resnikoff is an assistant professor at the University of Groningen, focusing on automation's historical significance. They delve into the complex narrative of automation, debunking common misconceptions and exploring its impact on labor and productivity. The discussion highlights historical perspectives on technological unemployment, the evolution of labor movements, and the intricate relationship between automation and the modern workforce.

Adam Hanieh, a Professor of Political Economy and Global Development, dives into the vital role of oil in our economy. He explores how corporate power has shaped oil pricing and distribution, revealing the intricate ties between oil and capitalism. The conversation highlights the significance of oil in geopolitical conflicts, especially post-WWII, and examines the impacts of the petrochemical revolution. Hanieh also critiques oversimplified narratives surrounding the climate crisis, urging a deeper understanding of capitalism's role in environmental challenges.

Lily Geismer, a historian specializing in the Democratic Party and author of "Left Behind," explains how the Democrats shifted from unionized industries to tech and finance under Clinton's Third Way. Political economist Mark Blyth analyzes the rise and perceived failures of Bidenomics, which aimed to address inequality but faced political backlash. They also discuss the evolving trade policies and the implications of these changes, signaling a departure from the neoliberal consensus that once dominated the party.