January hibernation reading – a catch-up

Where did January go? Just as well it’s over, as the worst month of the year. Still, I have read a few things. So this is a quick catch up post.

Post Wall, Post Square by Kristina Spohr was recommended by someone on BlueSky and I had high hopes, thinking it would do for the world what Tony Judt’s magnificent Postwar had done for Europe – that is, extend the focal length so the reader can understand what things are going on at the same time. It failed this test as the inclusion of China (and any other part of the world) was minimal. The book is all about the end of the Cold War in Europe. But it was even so fascinating to read all the detail about the European events of 1989 -1992. And the concern of George Bush to keep the US at the centre of the emerging order reads as rather poignant now.

38 Londres Street by Philippe Sands, about the Pinochet arrest, is completely gripping – despite being about the international law regarding whether or not (former) heads of state can be arrested. Good to understand the legal context here, just in case.

I really liked The Happiness of Dogs by Mark Rowland. It’s actually a philosophy book and – as they all do – disappears up its own fundament from time to time. But it’s funny and readable, and makes the persausive argument that dogs are better existentialists than humans will ever be. To be read alongside At the Existentialist Cafe.

I reread a book I spotted on my shelf, How Reason Almost Lost Its Mind by a group of authors looking at different aspects of the spread of linear programming and ‘economic’ rationality in the US in the early cold war decades. Interesting indeed, but slightly overshadowed by now by Jill Lepore’s If Then and Elizabeth Popp Berman’s Thinking Like An Economist.

Otherwise, I read some Tom Stoppard plays Santa Claus had put in my Xmas stocking, and a new crime author, Vaseem Khan, Midnight At Malabar House – a female detective in post-independence Mumbai.

 

And the 2025 winner is…

It’s always a difficult choice, selecting the winner of the annual Enlightened Economist prize. After pondering it for a few days, I’m going for Innovation in Real Places by Dan Breznitz: not everywhere can be like Silicon Valley, but that’s ok. There are other routes places can take, depending on where they are starting from.

71ZRtLC-muL._AC_UY436_QL65_An additional read is a recent article Prof Breznitz co-authored with Jane Gingrich in the Annual Review of Political Science, with some nice insights about the political economy of industrial policy.

I don’t know Prof Breznitz but if he comes across this and would like to take me up on the prize lunch at some point, it would be a pleasure to meet him.

The Enlightened Economist Prize 2025 – Longlist

It’s the time of year for the biggest prize of all….

I thought I hadn’t read as much in 2025 due to general busy-ness of the day job, but it turns out that was a misperception. Having gone through my notebooks, here is a rather long longlist for this year. A reminder of my rules – I read the book during the past 12 months, I liked it, and my view is final. The prize – I offer lunch to the author(s) if we happen to be in the same place.

The first group are selected from what I think of as books that dive into the detail of how things are – in order of my reading them:

There is Nothing for You Here – Fiona Hill (what it means for places to be ‘left behind’)

Challenger – Adam Higginbotham (all about organisation and incentives, in the context of the Challenger disaster)

From Beacon Fires to Fibre Broadband – Stephen Unger (communication technologies, how they work, how their markets evolved)

Greyhound – Joanna Pocock (the deterioration of social capital in US communities)

The second group are more closely related to my day job and research:

Innovation in Real Places – Dan Breznitz

The Means of Prediction – Maximilian Kasy

On Natural Capital – Partha Dasgupta

How Progress Ends – Carl Frey

Breakneck – Dan Wang

The Infinite Alphabet – Cesar Hidalgo.

There are also two bonus categories this year. One is older books I read again and my goodness do they stand the text of time:

Information Rules – Carl Shapiro and Hal Varian (seems to be out of print but 2nd hand copies around)

The Limits of Organization – Kenneth Arrow (I borrowed the Marshall Library copy)

And the other is neuroscience/cognitive science because I’m pondering how humans + AI take decisions:

The Experience Machine – Andy Clark

Being You – Anil Seth

There were several others bubbling under, but a line has to be drawn somewhere. Final winner announced before 2026 is upon us.

Still utopian

The month has been a bit of a blur but on one trip I read People’s Republic of Walmart by Leigh Phillips and Michal Rozworski. It has one of those long, chatty subtitles that try to save you the trouble of reading the book: How the world’s biggest corporations are laying the foundation for socialism. They wish – the authors are out of the Jacobin stable, and so explicitly (sort of) Marxist.

The premise is revisiting the socialist calculation debate, mashed up with Coase and Simon, in the light of big data and AI. So it’s similar territory to Bastani’s (2020) Fully Automated Luxury Communism. People’s Republic begins with recent examples of large coprorations planning their internal economy using digital technologies, data, and investment in logistcs – Walmart and Amazon. It expands from there to index funds and common ownership, the NHS, the space race and the examples of the Soviet Union and Allende’s Chile. The point hammered home in each chapter is that there are so many examples of managed rather than non-market exchange that technological advances mean planning (or bureaucracy) can replace markets in many more areas of the economy.

There’s certainly an interesting debate to be had about the extent to which AI can potentially substitute for prior modes of organisation, whether market arrangements or bureaucracies, by the new affordances for summarising and organising a lot of information. Henry Farrell and co-authors propose AI is indeed a new social technology.

But People’s Republic fails to distinguish between planned economies – Walmart may be described in this way, in line with Herbert Simon’s well-known observation – and actual (as opposed to ‘free’) markets. The fully free market is as mythical as the unicorn. All actual markets are structured by regulation, other government intervention, standards, customs and other institutional arrangements; but this is not ‘planning’. The book underestimates the huge amount of physical and software investment needed to make Walmart’s logistics possible; organising information is neither entirely intangible nor easy even in the big data era.

It’s also slightly weird, to me at least, to position Walmart and Amazon (even with a benign approach to human labour assumed) as demonstrations of the possibility of socialist utopia in the 21st century. Even before its ‘enshittification’ Amazon couldn’t distinguish between me buying economics books for me and young reader books for my 7 yr old grand-daughter.

I think it likely that AI will reshape economic structures, just as earlier digital technologies did, making Walmart and Amazon possible, along with many other platforms – how dramatically depends on what you think the limits of computability are. It would be nice to think governments will respond strategically in their interventions in the economy and how they structure the operation of markets, though this isn’t something I’d confidently expect. I hope the conditions of labour improve through policy and organisation, doing away with terrible, precarious jobs. But the 1920s/30s lens of (idealised) planning versus (idealised) markets won’t be the best way to analyse what happens. Having said that, this was a very jolly read, and anything debunking the myth that markets are ‘free’ is welcome.

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Positive pragmatism

The great Dani Rodrik is giving the S T Lee public lecture in Cambridge on 15th January 2026 (free but please book a ticket if you want to attend). The subject will be his new book, Shared Prosperity in a Fractured World.

The book is an excellent synthesis of Dani’s work in recent years, structured around making the case that trade-offs between the policy objectives of eradicating poverty, tackling climate change, and preserving democracy can be alleviated or even removed. Typically, for example, measures to boost growth in low income countries might be seen as in conflict with preserving jobs for middle class voters in rich countries. The book argues that shifting the poverty-reduction focus to creating service sector jobs (not manufacturing as in the old version of globalisation) mitigates that conflict of objectives.

The book also urges pragmatism: Act at the level of the nation state as global agreements move further out of reach; Accept second-best remedies; Be willing to experiment. After diagnosing where globalization went wrong, the book has individual chapters on pragmatic policies for green transition, good middle class jobs in high income countries, and growth through the service sector in lower income countries.

These together constitute what he calls the ‘productivist paradigm’ – ‘productivism’ is a term I don’t like as it conjures up old-style industrial policies, although I don’t have a better one. I’m also decreasingly keen on the manufacturing vs services dichotomy at all as production occurs in networks or ecosystems that involve both, and high-value services are often linked to high-value manufacture.

Anyway, the productivist paradigm also involves a more active partnership between state and market as neither, alone, leads to an efficient allocation of resources. The final chapter turns back to globalization and calls for a version built around the provision of global public goods. I’m not sure I see much prospect for any activism on global governance at present.

Still, a constructive argument for an active approach to structural transformation in the interests of populations globally is very welcome. Tune in for the lecture!

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