False Economy: A Surprising Economic History of the World

339 Pages·2009·4.62 MB·English

by  Alan Beattie (economics Correspondent.)

F A L SE
E C O N O MY
A L AN B E A T T IE
$26.95
Why do some economies and societies
crash and burn, while others are buffeted
by storms and yet still recover?
Can we analyze the fates of countries in a way
that will help us analyze the fault lines and
successes that can make or break a civiliza­
tion, a city, or a culture? In False Economy,
Alan Beattie weaves together elements of eco­
nomics, history, politics, and human stories,
revealing that governments and countries make
concrete choices that determine their destinies.
He opens larger questions about the choices
countries make, why they make them or are
driven to make them, and what these choices
can mean for the future of our global economy
as we go forward into uncharted territory.
Economic history involves forcing together
disciplines that fall naturally in different di­
rections, the universal explanation versus the
individual narrative. But Beattie has written
a lively and lucid book that engagingly and
thought-provokingly marries the two disciplines
and reveals their interdependence. Along the
way, you'll discover why Africa doesn't grow
cocaine, why our asparagus comes from Peru,
why your keyboard spells QWERTY, and why
giant pandas are living on borrowed time. . . .
Beattie uses extraordinary stories of eco­
nomic triumph and disaster to explain how
some countries have gone wrong while oth­
ers have gone right, and why it's so difficult to
change course once you're on the path to ruin.
0904
ALAN BEATTIE graduated from Balliol
College, Oxford, with a degree in history. After
taking a master's degree in economics at Cam­
bridge, he worked as an economist at the Bank
of England and then joined the Financial Times
in 1998. Currently the paper's world trade edi­
tor, he writes about economics, globalization,
and development.
Jacket design O 2009 Keenan
Photograph of the author O Financial Times/Charlie Bibby
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"In this fascinating and insightful hook. Alan Beattie brilliantly illustrates
how countries* choices determine and. in some cases, sadly undermine
their prospects for generations. This masterly global economic journey is a
must read for all those keen to understand how today's surge in state activ­
ism will impact national and international futures."
—MOHAMED A. EL-ERIAN
CEOofPIMCOand
author of When Markets Collide
"Beattie's analytics show facts can be a force for change. Give people the
facts, and they'll do the right thing."
— BONO
lead singer of U2 and
cofounder of the antipoverty organization ONE
"This is a wonderfully liberating book. Alan Beattie flies in the face of one
of the most dearly held ideas in the social sciences: that today's economic
outcomes—which countries are rich, and which remain poor—have deep
and largely immutable roots in history, geography, or culture. Beattie's
narrative shows that there is plenty of room for choices, and that history
rewards those governments that make the correct ones."
— DAN! RODRTK
professor of international political economy,
John F. Kennedy School of Government, Harvard University
ISBN 978-1-59448-866-5
FALSE
ECONOMY

F A L SE
ECONOMY
A SURPRISING
ECONOMIC HISTORY
OF THE WORLD
ALAN BEATTIE
RIVERHEAD BOOKS
a member of Penguin Group (USA) Inc.
New York 2009
RIVERHEAD BOOKS
Published by the Penguin Group
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Copyright © 2009 by Alan Beattie
All rights reserved. No part of this book may be reproduced, scanned, or distributed in any
printed or electronic form without permission. Please do not participate in or encourage piracy
of copyrighted materials in violation of the author's rights. Purchase only authorized editions.
Published simultaneously in Canada
The lines from Tony Harrison's The Blasphemers' Banquet are quoted from
Collected Film Poetry (Faber & Faber, 2007).
Library of Congress Cataloging-in-Publication Data
Beattie, Alan.
False economy / Alan Beattie.
p. cm.
Includes bibliographical references and index.
ISBN 978-1-59448-866-5
1. Economic history. 2. Economics. I. Title.
HC51.B377 2009 2009005885
330.9—dc22
Printed in the United States of America
1 3 5 79 10 8 6 42
Book design by Meighan Cavanaugh
While the author has made every effort to provide accurate telephone numbers and Internet addresses
at the time of publication, neither the publisher nor the author assumes any responsibility for errors,
or for changes that occur after publication. Further, the publisher does not have any control over
and does not assume any responsibility for author or third-party websites or their content.
To my parents