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Niall Ferguson's Six Killer Apps

 

If developing countries could implement ideas as quickly as a smartphone downloads data, they may choose to upload historian Niall Ferguson’s six killer apps for prosperity. Ferguson’s “apps” are philosophies gleaned from Western culture that he asserts promote wealth, stability, and innovation, ensuring steady growth over long periods of time.
 
These six ideas (fully outlined in Ferguson’s book Civilization: The West and the Rest)are competition, a scientific revolution, property rights, modern medicine, a consumer-oriented society, and a strong work ethic. According to Ferguson, these “apps” answer the questions as to why, beginning in 1500, small European polities eventually began to dominate the globe, both through colonialism and economics.
 
Ferguson’s central premise is that colonialism has not been a bad movement on the whole and that his killer “apps” can explain why the West rose quickly in dominance and continue to be on the forefront. He believes that these “apps” can be shared with developing countries to provide a roadmap for continued economic improvement. 
 
Competition-Ferguson compares China to Europe in 1500. He argues that the Chinese empire remained under an isolationist regime, leading to little competition among polities. Europe, long fragmented, encouraged competition and lead to increased travel to seek meaningful opportunities abroad.
 
Scientific revolution- Ferguson claims that breakthroughs in science are mostly attributed to European innovations, particularly in weaponry which allowed to military predominance.
 
Property rights-Ferguson believes that the firm grounding in respect for democracy and property ownership lead to successful economic growth with a government reflective of these ideals.
 
Modern medicine-The west found vaccinations for smallpox and yellow fever and doubled life expectancies. Many of these vaccinations were disseminated in the colonies and seen as important matters of public health.
 
Consumer society-In the 18th and 19th Centuries, Britain was a keen example of an all-encompassing spending society, and idea exported to the colonies and also reflective of sweeping popularity of Western clothing.   
 
Work ethic-Ferguson directly attributes hard work to the rise of Protestantism, which stressed hard work, saving, and reading.
 
Many have also criticized Ferguson’s emergence as a dominant thinker in the United States with the Iraq war and a rise in neo-conservatism. Ferguson, however, has distanced himself from an association with neo-cons. While initially a vocal supporter in the beginning phases of the war, he gradually distanced himself and blamed former President Bush for a lack of resources and mismanaging local government.
 
The main problem with Ferguson’s theory is that he seems to embrace colonialism as a successful top-down approach to implementing free-markets, trade, and all the successful aspects of the killer “apps”. Although certainly an interesting composite of growth strategies, Ferguson doesn’t seem to account for the moral questions associated with colonialism. Critics, mostly from the left, have expressed frustration at Ferguson’s lack of explanation regarding whether it is ethical to invade another country, to dominate livelihoods, and ultimately, whether the effects of colonialism prevent previously occupied countries from progressing.
 
Ferguson is relatively blasé about the effects of occupation, pushing aside the implications of Britain's regime in India or French rule in West Africa, because he always seeks to ask what the alternatives might have been.  He says, “The rulers of western Africa prior to the European empires were not running some kind of scout camp. They were engaged in the slave trade. They showed zero sign of developing the country's economic resources. Did Senegal ultimately benefit from French rule? Yes, it's clear.”
 
There is a great deal of importance in recognizing the impact that colonization has had on the bureaucratic and social structure of developing countries.  Mark Tully, a former India bureau chief of BBC and author of acclaimed books about contemporary India, has often commented that the police force, known for corruption, brutality, torture, continues to function under a similar structure and with a similar psyche to that of the British Raj.
 
How much of Ferguson’s ideology can we give credence towards?

 

Comments

21/03/12 1:58am - Posted By Gwenaelle - Flag as inappropriate - Reply to this comment
The broad strokes aren't hard to see. Americans ivneitituly are wary of the fiscal picture and fear the consequences. Under these circumstances, politicians ought to be able to sell some austerity as the near term price of longer term prosperity. I think if Americans are dealt with honestly instead of being pandered to, a majority of them will be willing to swallow the medicine.That medicine could include a VAT to increase revenues on the tax side, and changes in the rates of increase of our entitlement spending. With Social Security, something along the lines of Robert Pozen's progressive indexing proposal. With Medicare and Medicaid, we can cap increases at the rate of inflation and force changes down the line to comply with that (e.g., bring in more foreign physicians, perhaps by getting rid of requirements that they redo their entire residencies here). There's also literally hundreds of billions of dollars of fraud in those programs that can be reduced.Additionally, enforcing our current immigration laws would encourage illegals, who tend to be net fiscal drains, to head home.Winding up the wars in Iraq and Afghanistan within the next few years would free up another couple hundred billion dollars. We could then free up maybe another hundred billion by reducing some of the generous reenlistment bonuses and other personnel costs needed to run a volunteer military during wartime.We could also tweak the way CPI is calculated for federal pensions, which could shave another hundred billion or two off of our federal budget.A hundred billion here, a hundred billion there, and pretty soon you're talking about real money.Also, to increase tax revenues, we could adjust our tax system so it encourages more companies to set up shop here, e.g., by cutting corporate income taxes. We could use the VAT to more than make up for the lost revenues. Corporations are more mobile than consumers, so it makes sense to raise taxes on consumers and lower them on corporations.
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13/08/12 1:31pm - Posted By Adekunle Freeman - Flag as inappropriate - Reply to this comment
I would argue from a different perspective. The factors of production are (1) Land (2) Labour (3) Entrepreneurship (4) Capital. The reward for the factors of production are, for capital it is interest, for labour it is wages, for entrepreneurship it is profit and for land it is rent. If you have not had an economic outgoing for these and used any of these then you have stolen this factor of production. My theory is that there has not been any country that is successful or in the OECD today that has not at one time stolen a factor of production for a period of time. Labour was stolen in the form of slavery and we find that slavery was rife in the western, Middle Eastern and eastern cultures. For communist countries depriving the people of land rights was stealing land, for countries that colonised the same is true.
22/12/12 12:18am - Posted By Daiane - Flag as inappropriate - Reply to this comment
In the short run, of course, gold and sevlir and oil can plunge in price. You clearly made a very smart and timely call. But when the currency breaks, and it will, you need to be prepared.Did you listen to the Niall Ferguson video? Have you gone through the numbers? Do you realize that the interest expense on the debt if about to pass all of our defense spending as a % of the budget?By 2040, By CBO and BIS estimates, all of our tax revenue will be used to pay interest expense. Does that sound sustainable to you?How about the fact that to get back to a normalized annual budget we need to cut 12% of GDP from our spending. Do you not think that will have an economic impact?What do you think is more likely, that politicians raise taxes, cut services, spending or that they print money? My bet is that sure they will raise taxes, but its not enough. They will also print money and that is what history shows what happens.I highly recommend you read This Time It's Different.
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