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How the West Was Lost: Fifty Years of Economic Folly--and the Stark Choices Ahead [Hardcover]

Dambisa Moyo
3.9 out of 5 stars  See all reviews (40 customer reviews)

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Book Description

February 15, 2011

In How the West Was Lost, the New York Times bestselling author Dambisa Moyo offers a bold account of the decline of the West’s economic supremacy. She examines how the West’s flawed financial decisions have resulted in an economic and geopolitical seesaw that is now poised to tip in favor of the emerging world, especially China.

Amid the hype of China’s rise, however, the most important story of our generation is being pushed aside: America is not just in economic decline, but on course to become the biggest welfare state in the history of the West. The real danger is a thome, Moyo claims. While some countries – such as Germany and Sweden – have deliberately engineered and financed welfare states, the United States risks turning itself into a bloated welfare state not because of ideology or a larger vision of economic justice, but out of economic desperation and short-sighted policymaking. How the West Was Lost reveals not only the economic myopia of the West but also the radical solutions that it needs to adopt in order to assert itself as a global economic power once again.


Frequently Bought Together

How the West Was Lost: Fifty Years of Economic Folly--and the Stark Choices Ahead + Winner Take All: China's Race for Resources and What It Means for the World + Dead Aid: Why Aid Is Not Working and How There Is a Better Way for Africa
Price for all three: $23.75

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Editorial Reviews

Review

“Moyo’s diagnosis of the recent disasters in financial markets is succinct and sophisticated...I applaud her brave alarm against our economic and social complacency: her core concerns are sufficiently close to painful truths to warrant our attention.”—Paul Collier, The Observer

“We [in the West] have alienated trading partners and are colluding in the decline of our own prosperity, says Moyo, who sets out strategies for weighting the political seesaw back to our advantage.” —Iain Finlayson, The Times
 
“This argument...can rarely have been made more concisely...Moyo is a very serious lady indeed.”—Dominic Lawson, The Times

“The sad saga of the recession gives legs to Dambisa Moyo’s provocatively-entitled book, for it goes to the heart of the great economic issue of our times: how swiftly will power shift over this century?”— Hamish McRae, The Independent

About the Author

Dambisa Moyo is the author of Dead Aid. Born and raised in Lusaka, Zambia, Moyo completed a Ph.D. in economics at Oxford University and holds a master’s from Harvard University’s John F. Kennedy School of Government. She worked for the World Bank as a consultant, and also worked at Goldman Sachs for eight years. In 2009, Time magazine named her one of the “100 most influential people in the world.” Her writing frequently appears in publications including the Financial Times, The Economist, and The Wall Street Journal.

Product Details

  • Hardcover: 240 pages
  • Publisher: Farrar, Straus and Giroux (February 15, 2011)
  • Language: English
  • ISBN-10: 0374173257
  • ISBN-13: 978-0374173258
  • Product Dimensions: 0.9 x 5.8 x 8.5 inches
  • Shipping Weight: 11.2 ounces (View shipping rates and policies)
  • Average Customer Review: 3.9 out of 5 stars  See all reviews (40 customer reviews)
  • Amazon Best Sellers Rank: #193,704 in Books (See Top 100 in Books)

More About the Author

Dr. Dambisa Moyo is an international economist who writes on the macroeconomy and global affairs.

She is the author of the New York Times Bestsellers "Dead Aid: Why Aid Is Not Working and How There Is a Better Way for Africa", "How The West Was Lost: Fifty Years of Economic Folly - And the Stark Choices Ahead" and "Winner Take All: China's Race for Resources and What It Means for the World".

Ms. Moyo was named by Time Magazine as one of the "100 Most Influential People in the World", and was named to the World Economic Forum's Young Global Leaders Forum. Her work regularly appears in economic and finance-related publications such as the Financial Times and the Wall Street Journal.

She completed a doctorate in Economics at Oxford University and holds a Masters degree from Harvard University. She completed an undergraduate degree in Chemistry and an MBA in Finance at the American University in Washington D.C..

Customer Reviews

Read it and weep. Amy Smith  |  5 reviewers made a similar statement
We go along with those pipe dreams just to keep the kids happy. EBeth  |  5 reviewers made a similar statement
Most Helpful Customer Reviews
50 of 56 people found the following review helpful
4.0 out of 5 stars A dramatic view of the dangers ahead February 3, 2011
Format:Paperback
The world's most economically powerful nations have seen their wealth and dominant political position decline to the point where, today, they are about to forfeit all they have strived for - economic, military and political global supremacy, according to Dambisa Moyo in this book. The author explains that capital, labour and technology have been the pillars on which economic growth has been built, then goes on the describe how mismanagement of these factors is leading to certain decline.

Capital has been misallocated as a result of government policies supporting subsidized home ownership, encouraging a culture of debt and diverting capital away from productive investment in business. Labour has been misallocated by failing to take account of future pension costs, failing to educate sufficient people in useful professions like engineering, and encouraging people into the wrong pursuits by grossly overpaying sports stars. Technology has been misallocated by giving it away to Chinese manufacturers in return for cheap goods, rather than protecting it.

If we stick with the status quo, then all is lost, according to the author. China could falter, but that is an unlikely scenario. The US and Europe could fight back, but at present America does not appear to have the mettle. The author's preferred approach seems to be for the US to default on its loans, reckoning that China will suffer more than America.

As was the case with her previous book, Dead Aid: Why Aid Is Not Working and How There Is a Better Way for Africa, the author's diagnoses of the problems have some merit, although they are overly dramatic, but in my opinion her proposed solutions leave something to be desired. The book is an entertaining read, and the issues are presented in a way that will make the reader sit up and take notice.
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73 of 85 people found the following review helpful
2.0 out of 5 stars A regrettably inadequate book February 24, 2011
By Arwel
Format:Hardcover|Amazon Verified Purchase
What is disturbing about this book is not the argument Dr Moyo purports to make but the inadequate manner in which she makes it. Perhaps it's a reflection of Americans' self-critical mood at the moment that Amazon.com reviewers have heaped the book with praise, leaving only one reviewer level-headed enough to award the book just one star.

'How the West Was Lost' reads uneasily, shifting from a mildly didactic tone to energetic advocacy to journalistic analysis. It combines sweeping generalizations, a somewhat confused and tendentious reading of what constitutes the economic and social challenges currently facing the United States, and a cherry-picking approach to conditions in other countries, both developed and developing. It runs through the usual list of economic, financial and social difficulties now facing the United States, asserting that 'radical solutions, many of them offered in this book' must be adopted quickly before it's 'too late' (p xiii) to save the west 'from oblivion' (p 181). The reader then has to wait patiently for these radical solutions, which are offered briefly in the last few pages of the book. They include ' a serious revaluation of the US's role as virtually the sole underwriter of global public goods', by which the writer seems to be alluding the size of the Pentagon's global operations and budget; accepting the likely benefits of economic protectionism; addressing growing income inequalities in the US, and growing US welfare costs; saving more and spending less; and investing in the US to create a more skilled labor force and new technologies. She also proposes that the US defaults on its external debt so as to break the 'stranglehold of debt and dependence' it is, she says, gripped in by China and others. To reinforce her disturbing protectionist message and her reductionist view of US-China relations the author remarks sweepingly that 'forging closer ties with the emerging economies and dismantling...trade barriers will not work.'

Few of the policy implications of these so-called radical solutions, none of them new, are properly analyzed or thought through, so that after being subjected to a 190-page account of the US's inadequacies, not to mention the bright prospects for China, the reader is left with little more than a few beguiling slogans.

Sourcing is also inadequate and often hard to make use of. To take just one example, selected more or less at random, on p 167 the author writes about 'the continuing face-off between India and China, propelled to a large extent by water shortages'. This is in itself a highly partial and inadequate description of the complex relationship between China and India. But that isn't the main point here. Dr Moyo then declares that 'China is thought to be considering rerouting the Brahmaputra River to its Yellow River, which would have devastating effects on the land and people of Bangladesh and India'. The source cited for this statement is a very long website address which cannot be accessed as given, but which evidently refers to an article by Brahma Chellaney in the 08.14.09 edition of the Israeli newspaper Haaretz. Chellaney (and why wasn't he sourced or interviewed directly? why was an op ed piece in an Israeli newspaper selected as the source for this?) is a respectable senior researcher at the Centre for Policy Research, New Delhi, but his assertions about this possible future use of the Brahmaputra are controversial and contradicted by various other commentators, including several Chinese sources, none of whom Dr Moyo mentions. This is, as I say, a random example (and I should add that I am in no way involved in China-India relations or water-related issues); there are many more like it.

There is a real need for a good book assessing in detail alternative policies and strategies for the west and for the US in particular in the light of the 2008 crash. Regrettably this is not that book.
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29 of 34 people found the following review helpful
5.0 out of 5 stars Raises some very important issues February 15, 2011
By Steve T
Format:Hardcover
The basic idea of How the West Was Lost is that Western democracies (especially the US) are basically throwing away all the advantages they built up in the last century. Asian countries are going to dominate not because they are better...but because we are being stupid. I don't agree with all the book's arguments, but I think it raises some very good points.

The best points are about what the author calls misallocation of both labor and capital. What this really comes down to is bad incentives. I think Moyo's argument that the US puts way too much emphasis on real estate is dead on. Building homes or fancy commercial buildings does not really create much innovation as compared with investing in industry or technology. Yet, real estate has always been THE way to get rich, and the investment capital flows accordingly. The result is inflated home and property values instead of new job-creating industries.

Moyo makes a similar argument about labor. She emphasizes sports stars, but I think a better example is Wall Street attracting so many smart people that could otherwise do something more productive. And then there's real estate again. How many people have jobs in construction, real estate agents, loan agents, title companies and everything else? Now of course, a lot of those bubble jobs are gone. I live in the SF bay area and know at least one person with a PhD in engineering who left working in tech to become a real estate agent back in 2005 because she could make so much more money. That is true misallocation of talent.

One important issue is how the incentives for the people at the top help create these problems. As she says, the West is transferring critical technology to the Chinese, but this is happening mostly because the CEO can get a huge bonus by creating big profits in the short run by giving into the Chinese government's demands. The long run will be somebody else's problem.

The other point she doesn't get at all is the rate at which technology is changing and how it might completely shake things up in the future. I work as a developer in artificial intelligence, so I am very aware of this issue. For example, a lot of China's industry will probably become much more automated quite soon (as manufacturing in the US already is now). That will make it very hard for them to create enough jobs to keep the population satisfied, and that could be a game changer for our assumptions about China.
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Most Recent Customer Reviews
4.0 out of 5 stars Excellent!
Although I am not sure how the author got all these GDP numbers of the past 200 years, I think they are basically right in trend. Read more
Published 2 months ago by Frank
5.0 out of 5 stars A Realistic Look at Economics
How the West Was Lost is an excellent book for those who wish to have a good practical understanding of economics. Read more
Published 7 months ago by Joseph L. Chernicoff
4.0 out of 5 stars Tour de Force (Almost)
Ms. Moyo has written an engaging and captivating work in "How the West Was Lost." She explores our current socio-economic status (relative to China) while delving into how we got... Read more
Published 7 months ago by John Chandler
4.0 out of 5 stars A comprehensive economic argument that the West is giving way to the...
Many believe the West will always be on top of the world's economy, as it has been for the past 500 years. Read more
Published 8 months ago by Rolf Dobelli
2.0 out of 5 stars A great disappointment
The book was a great disappointment after the excellent Dead Aid by Moyo. Moyo spends practically the whole first half of the book explaining elementary mathematics again and again... Read more
Published 10 months ago by V. Pirila
5.0 out of 5 stars Listen to This Person
There are so many non-economists writing about contemporary economic issues these days. Kudlow, Bartlett, Bowyer, Tamny... These people have no degree in economics. Read more
Published 10 months ago by D. MILLS
3.0 out of 5 stars A Catalog of Challenges
This is a discouraging book that catalogs the West's (the US and UK are the focus of the book) relative decline against fast growing countries like China. Read more
Published 10 months ago by Samuel J. Sharp
3.0 out of 5 stars Moyo should learn something about inflation targeting
Moyo's second book is less successful than her first one, Dead Aid. Where the former was a tightly argued brief on how foreign aid was failing sub-Saharan Africa, her new book is a... Read more
Published 11 months ago by Slavophile
2.0 out of 5 stars China, a giant with clay feet
I finshed reading the book in one go.
Though I agree with her analysis of the situation why the west got into trouble, I find her lack of insight into the problems of "The... Read more
Published 13 months ago by A. lau Ying
2.0 out of 5 stars inconsistent logic
The author complains the bad education of many Americans in scientific terms and later states that carbon-dioxid belongs to the group of hydrocarbons. Read more
Published 15 months ago by Domenica Engelbrecht
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