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.”

How Dams Fail

(May 1, 2008) There are different types of dams classified by the material and design used in construction. These differences influence how and why dams fail. A dam can be classified by its material, indicating whether it is earthen or concrete. Dam components can also include iron, steel or timber or a combination of any of the above.