Against the Dead Hand: The Uncertain Struggle for Global Capitalism (Hardcover)

~ (Author) "Near Gorky Park, on the banks of the Moskva River, lies the Graveyard of Fallen Monuments..." (more)
Key Phrases: against the dead hand, golden straitjacket, collectivist policies, Industrial Counterrevolution, United States, East Asia (more...)

Editorial Reviews

Review

"...Brink Lindsey provides an eloquent, much needed corrective by putting international integration into historical context..." -- The Economist, 3 May 2002

"...should be required reading for professional eceonomists..." -- City to Cities, June 2002

"Brink Lindsey provides an eloquent, much needed corrective by putting international integration into historical context." -- The Economist, May 2, 2002

"For every copy of Jihad sold, I hope 10 copies are purchased and read of the new book Against the Dead Hand." -- Chief Executive Magazine, December 2001

"For every copy of Jihad sold, I hope 10 copies are purchased and read of the new book Against the Dead Hand." (Chief Executive Magazine, December 2001)

"compelling...excellent". (The Wall Street Journal, April 4, 2002)

GLOBALISATION is often described as an irresistible new force that, depending on your perspective, will either wreck or save the planet. Brink Lindsey provides an eloquent, much needed corrective by putting international integration into historical context.
Mr Lindsey points out that today's period of globalisation has a precursor in the free markets and economic integration of the mid-19th century. That early bout, however, was cruelly interrupted by what Mr Lindsey calls the industrial counter-revolution: an enthusiasm for collectivism, for national economic planning, and, in its most extreme cases, for communist economies. For much of the 20th century, the invisible hand of the market gave way, he writes, to the dead hand of the state.
That changed when large parts of the world emerged from communism and statism. But the process is far from finished. With his stories from the Russian steel mills of Magnitogorsk to backyard makers of "boogis" (bare-boned home-made vehicles) in India, Mr Lindsey explains how the effects of state ownership, price controls, trade barriers and other leftovers from the statist era still grossly impede the global economy.
He regards the failings attributed to globalisation (the financial crises of the late 1990s, for instance) as the result of a collision between markets and statism. Yes, globalisation has been unstable. The cause is less market liberalisation as such than the fact that the liberalisation remains incomplete. At times Mr Lindsey's faith in the market may be extreme, but mostly this book is full of elegantly argued good sense. (The Economist, May 2, 2002)

"...Brink Lindsey provides an eloquent, much needed corrective by putting international integration into historical context...full of elegantly argued good sense..." (The Economist, 3 May 2002)

"...should be required reading for professional eceonomists..." (City to Cities, June 2002)

Brink Lindsey's Against the Dead Hand: The Uncertain Struggle for Global Capitalism (John Wiley & Sons, 2001) is the most intellectually stimulating of all the recent books on globalization. Lindsey articulates a fervent defense of open markets at the same time he poses serious concerns about their future. Director of the libertarian Cato Institute's Center for Trade Policy Studies, a Washington think tank, Lindsey worries that too many people assume that the continuation of globalization is inevitable. He instead believes that globalization is in its infancy and will be threatened by a series of childhood maladies that could include national and regional financial crises, protectionist backlashes, and antiglobalization political movements.
Lindsey recasts the history of trade and commerce over the past 150 years in a highly original way that will intrigue anyone involved in international business. His thesis is that the first great wave of globalization, which lasted until World War I, arose both because of the strength of the intellectual argument in its favor and because of the technological innovations of the Industrial Revolution. But as early as the 1880s, he finds the beginnings of what he calls "the Industrial Counterrevolution." Starting with the writings of Karl Marx and the rise of German state socialism under Otto von Bismarck, the political opposition to free trade and globalization mounted in the late 19th and early 20th centuries, taking the form of protectionism, imperialism, and militarism.
It all culminated in World War I, which, Lindsey writes, "provided both the means and motive for the collectivist spasm that followed." In the social and economic chaos that gripped the world from the start of World War I to the end of World War II, the earlier progress toward globalization, writes Lindsey, "was interrupted, its achievements demolished."
In his view, the creation of the modern multilateral financial institutions of the international economy in the postwar years, along with the championing of free trade by the United States, slowly recreated the conditions that enable globalization, but it was a long road back. Lindsey notes that world merchandise trade as a percentage of world output has been estimated at 11.9 percent in 1913 - a level of export performance that wasn't matched again until the 1970s. And still, the ideas and movements that produced the Industrial Counterrevolution live on, he says, to distort and frustrate the world's economic development. This is the "dead hand" of his title.
Most of the ills commonly blamed on globalization, he argues, are caused by "the continued bulking presence of antimarket policies and institutions" in many of the developing and emerging market countries. The real blame for Russia's problems, for instance, should be placed on such matters as the efforts of its federal and regional governments to prop up moribund industrial enterprises from the Communist era. Such explicit subsidies, the author notes, have been as high as 8 to 10 percent of GDP in recent years. Allover the Third World, protectionism is still strong, with tariff rates averaging 13.3 percent in developing countries, compared with rates of 2.6 percent in the industrialized nations.
Yet Lindsey concludes Against the Dead Hand optimistically: "For a century the world was enthralled by the false promises of the Industrial Counterrevolution; the chains of misplaced faith have now been broken, and the revival of globalization is one consequence. The present era, uncertain and trying as it sometimes may be, is thus a time of deliverance. Furthermore, there is good reason to believe that we are on our way to somewhere better." (Strategy+Business, Issue 29, Fourth Quarter 2002)

"...the most intellectually stimulating of all the recent books on globalizatin..." (Strategy & Business, December 2002)

"...the most enthralling work of economic history I've ever read." —Gene Epstein's "Economic Beat" (Barron's, July 7, 2003)

"compelling...excellent". -- The Wall Street Journal, April 4, 2002

"For every copy of Jihad sold, I hope 10 copies are purchased and read of the new book Against the Dead Hand." -- Chief Executive Magazine, December 2001

Review

"Informed, lively, and challenging, Brink Lindsey's book illuminates the tough road ahead in the fight for free markets and against the dead hand of the past. I have benefited greatly from reading this book and so can everyone who cares about freedom." —George P. Shultz, Former U.S. Secretary of State

"There are few higher callings than exposing the anti-globalization movement for what it really is: an enemy not just of clear thinking but also of economic progress. Brink Lindsey rises to this task manfully. In this eloquently written and powerfully argued book, he shows that, far from being complete, the current wave of globalization has just begun. And to charges that globalization is responsible for the problems of much of the developing world, he explains that the real blame lies with years of failed experiments with big government and closed borders. Read this book if you want to understand the most important debate of our time." —Adrian Wooldridge, Author, A Future Perfect: The Challenge and Future Promise of Globalization

"In this fascinating and wide-ranging book, Brink Lindsey destroys two dangerous myths: that trade is bad for the poor and that globalization is inevitable. From the Thai countryside to the streets of New Delhi, he shows how today's economic problems spring from choices made decades ago, when the world's governing classes were enamored of the gospel of centralization and control. Only if we turn away from that Industrial Counterrevolution, he argues, will we find our way toward international peace, prosperity, and progress." —Virginia Postrel, Author, The Future and Its Enemies: The Growing Conflict over Creativity, Enterprise and Progress

"Despite globalization, recent years have been filled with cruel disappointments for many of the world's poor in developing and formerly communist countries. Brink Lindsey insightfully identifies the formidable obstacles that block their progress. In particular, he shows that the failure to build adequate legal institutions that define and protect property rights is of critical importance." —Hernando de Soto, Author, The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else

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Product Details

• Hardcover: 368 pages
• Publisher: Wiley; 1 edition (December 21, 2001)
• Language: English
• ISBN-10: 0471442771
• ISBN-13: 978-0471442776
• Product Dimensions: 9.1 x 6.2 x 1.3 inches
• Shipping Weight: 1.3 pounds (View shipping rates and policies)
• Average Customer Review: 4.3 out of 5 stars  See all reviews (20 customer reviews)
• Amazon.com Sales Rank: #335,032 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

24 of 24 people found the following review helpful:

4.0 out of 5 stars A Worthwhile Read if You Are Interested in Globalization, January 12, 2003

By	M. A Netzley "mnetzley" (Singapore) - See all my reviews (REAL NAME)

So far, Lindsey's "Against the Dead Hand" may be the best book I have read about globalization. Lindsey does not beat around the bush--he is clearly a classical liberal who favors market forces. One would not expect anything less from a senior researcher at the Cato Institute. But the fact that he is a researcher clearly shows. The book has far more of a research base than any other text I have read on this subject. There is certainly more than mere anecdotal evidence in each chapter. But at the same, it is not a boring research text. I thoroughly enjoyed reading this book.

Lindsey takes an extremely broad perspective and looks at globalization within a 150 year window. From this perspective, Lindsey argues that globalization is not a recent phenomenon. Instead, he claims that we are only beginning to approach the levels of global trade that existed prior to World War I. Achieving that same level of globalization is, however, quite a struggle. The "dead hand" of centralized, collectivist, and protectionist government/philosophy still exerts considerable force on the politics and policies of today. Lindsey is convinced that collectivist government, in multiple forms, has failed and that a return to market-oriented practices is really the only viable choice remaining. Overall, I find Lindsey's arguments persuasive, researched, and sensical. He makes a strong case.

On the other hand, I had great difficulty with the final two chapters of this book. In these chapters Lindsey discusses the social safety net and labor. I was both disappointed and troubled by Lindsey's discussion. His notion of a social safety net, based on Chapter Ten, seems to be providing retirement funds for those who work all their life. While I agree that retirment is important (I work too), Lindsey simply ignores and avoids the many people and issues that a social safety net should address. I was left asking about children who are ignored by their parents. What about the homeless? What about our vets? I could not help think of my recent experiences with poverty in Argentina or war-torn cities like Sarajevo. It is impossible to say what Lindsey would think about these concerns because he simply ignores them. I was left with the impression that he "simply does not get it." He risks presenting market-forces as a cure-all, which it clearly is not.

This book would have been five stars, in my view, had Lindsey eliminated Chapters Ten and Eleven. The rest of the book is superb, well thought out, and well written. I highly recommend this book. I find that it makes a nice complement to Friedman's "The Lexus and the Olive Tree." The contrasts are many and at times explicit. Lindsey takes a clear stance and, regardless of whether or not you agree, I think most reasonable readers will have to admit he has made his case well.

I am glad I read this book.

29 of 30 people found the following review helpful:

5.0 out of 5 stars An unflinching look at globalization, January 10, 2002

By	A. Lukas (Little Rock, AR USA) - See all my reviews (REAL NAME)

Books on "globalization" are common these days, but most don't contribute much to one's understanding of the overall phenomenon. Critics present laundry lists of problems that still exist in the world and then fault globalization either for causing them or for not solving them, ignoring the obvious gains achieved in recent decades. Proponents tell us where globalization is changing life for the better, but often fail to deal with the uneven nature of progress in the world. Why do some places flourish and some falter? Few books offer a complete and convincing picture of what globalization is, where it comes from, and what its limitations are. Against the Dead Hand does all of those things, and in an extremely readable format. It weaves history, economics, and politics together with interesting first-hand reporting from several of the world's economic quagmires. A thoughtful analysis that's suitable for both layman and academic alike.

One of this book's great virtues is its broad sense of historical perspective. Lindsey describes the current trend of globalization not simply as an affirmative triumph of market ideology, but as an outgrowth of the collapse of the great collectivist ideologies of the past century: communism, fascism, and even FDR-style managed capitalism. In other words, free markets advanced primarily because the state receded -- not because political leaders had converted to some capitalist orthodoxy.

Yet the collapse of state economic controls was far from total. Even though faith in central planning and top-down economic control has waned in recent years, the "dead hand" of the collectivist past -- the "accumulated institutions, mindsets, and vested interests of state-dominated economic development" -- still exerts a powerful influence on world affairs. Burdened as it is by the dead hand of the state, Lindsey shows how globalization is neither as widespread as its critics claim nor as firmly entrenched as its champions believe.

The book concludes with a discussion of the events of 9/11 that draws connections between the current terrorist threat and the broader themes explored in the book. Specifically, Lindsey explores the ideological camaraderie evidenced by the more radical elements of the anti-globalization movement -- remnants of what he terms the "Industrial Counterrevolution" -- and the anti-modernist thought embodied in radical Islam. He convincingly argues that while many of globalization's critics sell themselves as friends of the poor, they are in fact enemies of prosperity. Feeling insecure and left behind by the modern world, they seek to stop it -- a goal they must not be allowed to achieve.

Whether you're a fan of free markets or not, this book is worth your time. It's not a sugar-coated view of globalization, nor does it reject the critical role that governments have to play as the world grows closer together. It is, rather, an unflinchingly clear description of where we've been on the road to modernity and the perils that yet lie before us. I highly recommend it.

26 of 28 people found the following review helpful:

5.0 out of 5 stars Most Comprehensive, Passionate Case For Free Trade Available, April 14, 2002

By	Michael D. Mallinger (Woodbridge, VA USA) - See all my reviews (REAL NAME)

Of all the books on the politics of international trade, this one stands out because it offers a big picture view of how the collapse of communism changed everything. Unlike other international economists and trade scholars, Brink Lindsey begins from the premise that, because critics of open trade lost the war of ideas, it is only a matter of time before liberal civil society flourishes. His book details problems caused by lingering flawed ideas that still exist - particularly the defense of non-tariff barriers to trade - and how those problems can be overcome.

Lindsey's point is that, because the global movement toward market liberalism is occurring amid the remnants of the failed economic apparatus that opposed it, its journey continues to be marked by skirmishes with proponents of the discredited system. The leaders of that system - which Lindsey calls the "Dead Hand" - are the root of much of the global poverty witnessed today because of their long-standing efforts to block the spread of reliable security for property rights and the rule of law. They prevent people in poor nations from making long-term investments and obtaining the windfall gains of congregating in economic spheres in which they hold a comparative advantage.

The Dead Hand's fatal mistake was its failure to understand the concept of economic uncertainty. Its belief that a small set of central planners could bring together all of the information necessary to make sound decisions to govern people's lives stifled the creative process throughout much of the less-developed world. People victimized by the notion that their leaders should run their society are now rejecting that system. As Lindsey states, "Hostility to markets remains, and remains formidable, but only as a force of reaction."

He bases his argument on the fact that open trade produces sustained, long run economic growth. The success of Richard Cobden and John Bright's Anti-Corn Law League in securing free trade in staple food products in nineteenth century Great Britain was the world's first step toward building an international economic framework that enables poor people to obtain the products they need. Cobden and Bright's vision took hold over the last few decades as trade barriers for goods, services, and capital began to fall around the globe. Over time, a larger and larger share of domestic economic activity was exposed to foreign competition, creating net benefits for consumers in every nation involved. The evolution of legal institutions in many nations facilitated the development of markets in which the costs of finding trading partners, setting the terms of trade, and enforcing agreements were reduced. This increased productivity in most sectors of these nations and raised living standards.

Lindsey believes that, historically, leaders who rejected the benefits free trade offers tended to resort to warfare to obtain wealth. Politicians who actively stifle the development of new products and innovations cannot stay in power without somehow placating the desires of their constituents. Lindsey endorses Noble Laureate Friedrich Hayek's view that dictatorship is the natural result of efforts to adopt socialism on a large scale. Because drastic measures are necessary to spur people to engage in productive activities when incentives for doing so are removed, only the most ruthless dictators can perpetuate socialism's existence over time.

In a way, the Dead Hand is a refusal by intellectuals in wealthy nations to admit that Hayek is correct. Until they do, corrupt leaders in less-developed nations will continue to pursue socialism under the rubric of "self-sufficiency" or "community-based growth" and stifle their people's enormous creative potential.

The global economic instability witnessed today is not the result of the international spread of capitalism, but rather, of the international collapse of socialism. The new problem for those who advocate market competition is that the Dead Hand has convinced many people that the opposite is true - that the only cure to the alleged problems of global capitalism is global socialism. Combating this grossly distorted worldview will take time. Because of this, stability in the global economic order is still many years away.

My only criticism of Lindsey is that he chooses not to include a detailed discussion of rent seeking. In the debate over trade, it is important for people to understand that certain companies and industries utilize the legal apparatus to stifle their competition. They frequently disguise their efforts as promotion of "market-based mechanisms." Explaining why this problem has the same effects as non-tariff barriers to trade is key to shedding light on much of what takes place on the K Street corridor today.

Overall, Lindsey does an exceptional job detailing why the intellectual war over trade has ended and what will occur as a result. His words will serve to inspire the courageous trade ministers who rejected then-President Clinton's demands for increased protectionism during the WTO's failed summit in Seattle in 1999. More importantly, his advice to young defenders of free trade - to keep pummeling away at their critics - will only accelerate the onset of the global liberal economic order.