False Economy : A Surprising Economic History of the World

From Publishers Weekly Financial Times world trade editor Beattie combines economic history, psychology and political analysis to identify the factors that predispose economies to sickness or health. The author takes a human interest, Freakonomics -style approach to such economic riddles as why Islamic nations stay mired in poverty (he argues that one reason might be the Qur'an's dictum against usury and interest-earning) and why Africa is dependent on exporting raw materials rather than commercial products (soaring temperatures and shoddy infrastructure). Beattie imbues economics with wonderful mystery as he untangles the mechanisms of the blood diamond trade and Peru's curious stranglehold on the global export of asparagus. Closer to home, Beattie examines the economic rivalry between Argentina and the United States a century ago; when Argentina seemed to be winning, the U.S. made a series of crucial decisions, moved forward and left Argentina poised for financial disaster. Thorough research, eclectic examples and a sprightly tone (Puritans were not big on bling) should make this a hit among those interested in world economics—and a must-read alternative for those who couldn't get through Guns, Germs and Steel . (Apr.) Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved. From Booklist Beattie worked as an economist at the Bank of England and then joined the Financial Times in 1998 and is currently the paper’s world-trade editor. This is not a criticism of the 2004–07 real-estate debacle that caused the collapse of U.S. and world financial systems, as might be surmised by the title, but rather a historical glimpse at the causes and effects that explain why some economies prosper in certain ways while others do not. Beattie contrasts the economies of Argentina and the U.S., for example, showing why Argentina has prospered even while our economic downturn has seemingly brought down the economies of the rest of the world. He compares the ancient city of Rome to present-day large metropolises; explains how trade routes and climate (both political and meteorological) affect where crops are grown and how they are processed; and looks at some of the idiosyncrasies of corruption and power. By looking back to look forward, Beattie concludes that the experience of history provides hope that we have the ability to make the right choices going forward. --David Siegfried

A "provocative...persuasive" (The New York Times) book that examines countries' economic destinies.

In False Economy, Alan Beattie weaves together elements of economics, history, politics, and human stories, revealing that governments and countries make concrete choices that can determine whether they remain a rich or poor nation. He also addresses larger questions about why they make they choices they do, and what they mean for the future of our global economy. But despite the heady subject matter, False Economy is a lively and lucid book that engagingly and thought-provokingly examines macroeconomics and the fault lines and successes that can make or break a culture. Along the way, readers will discover why Africa doesn't grow cocaine, why our asparagus comes from Peru, why our keyboard spells QWERTY, and why giant pandas are living on borrowed time.

The Barnes & Noble Review

It may make you feel better to read Financial Times journalist Alan Beattie describing how nothing in economic history is inevitable or permanent. Though he spends little time dwelling on our current economic woes, Beattie chronicles where successful economies diverged, how politics meddled in free markets, and when observers have drawn false conclusions. In a history peppered with witty British asides, Beattie succinctly illustrates the curse Steinbeck probed in The Pearl -- namely, that coveted natural resources are often more trouble than they're worth. Cases in point: Dutch tulip exporters were among the legions of workers who could no longer compete in the global economy once the discovery of oil reserves made their country's currency strong enough to price Dutch products out of the market; prostitution and drug addiction ensnare mining communities from Africa to Latin America; and to top it all off, corrupt leaders mismanage prized resources for their own immediate gain, rendering those resources a scourge to some previously diversified economies. After debunking the notion that Islam is anathema to wealth creation (as some pundits claimed after September 11, 2001, attempting to explain the appeal of terrorism), Beattie takes you to the local supermarket to unravel how anti-drug policies got us dependent on Peruvian asparagus. Peru benefited from a 1991 trade deal intended to incentivize farmers to grow crops other than coca for cocaine. Lower tariffs and financial assistance, rooted in a social reform agenda, are what made Peru into Asparagus Central, much to the dismay of U.S. farmers, who have found it hard to compete. In the end, you're left with the assertion that no superpower is destined to stay that way forever, unless of course, superlative decisions prevail. In other words: Godspeed, developed world. --Ariana Green

A "provocative...persuasive" (The New York Times) book that examines countries' economic destinies. In False Economy, Alan Beattie weaves together the economic choices, political choices, economic history, and human stories, that determine whether governments and countries remain rich or poor.He also addresses larger questions about why they make the choices they do, and what those mean for the future of our global economy. But despite the heady subject matter, False Economy is a lively and lucid book that engagingly and thought-provokingly examines macroeconomics, economic topics, and the fault lines and successes that can make or break a culture or induce a global depression. Along the way, readers will discover why Africa doesn't grow cocaine, why our asparagus comes from Peru, why our keyboard spells QWERTY, and why giant pandas are living on borrowed time.