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China’s deadly earthquake: Was the Three Gorges reservoir a trigger?

(May 14, 2008) The world’s earthquake experts have identified tectonic plate movements as the cause of this week’s earthquake in southwestern China. But the question now is did the filling of the massive Three Gorges reservoir, which reaches the southeastern part of the Sichuan Basin, trigger seismic activity in what has always been an earthquake-prone region? 

Democracy, capital flows, and odious debt’

(May 12, 2008) Democracy commits a ruler to pass borrowed funds on to the private sector which builds the country’s international collateral, and the consequent rise in the credit ceiling is a Pareto-improvement up to a point because the ruler can appropriate a smaller share of rising loan. However, the ruler may still impose odious debt in the sense that the private sector prefers the country to borrow less. Under conditions, a fall in the world interest rate or a rise in productivity growth increases the optimal levels of democracy, borrowing, investment, and welfare. I offer suggestive evidence from a global panel.

Financial Times: Three Gorges dam repeats “stupid mistake”

(March 11, 2008) FT correspondent Jamil Anderlini describes the 1960s-era Sanmenxia dam on the Yellow River as a disastrous precedent for the much larger Three Gorges project, which is nearing completion this year. A former communist party boss in Shaanxi province, the region most directly affected by Sanmenxia, is quoted saying the dam was “really a stupid mistake” that has brought “severe disasters to the people living near the river.”