Highlights From The Comments On "How Asia Works"

I made a mistake in the email notifications, so if you didn’t know I wrote a review of Joe Studwell’s How Asia Works earlier this week - well, now you know.

1.) Three things stick out here. Firstly, Studwell vastly overstates how damaging land reform has to be to landlords. Taiwan and Japan both bought out landlords with bonds. The bonds became worth less because since government bonds grew more slowly than the economy. But there are still a fair number of wealthy old families around in both countries. The important thing is not the destruction of landlords as a class: it's putting land into the hands of people (whether smallholding peasants or professional farmers) who own the land, have an incentive to improve it, and whose primary income is gained not by owning land but by producing agricultural products. The two are ultimately equivalent at equilibrium. How you get there is not especially important and paying off the landlords is fine if it works. Likewise, giving land to collectives or to peasant groups (as opposed to individual peasants) doesn't work very well because it keeps it out of the power of enterprising farmers.

Secondly, he completely ignores the many times land reform failed. East Asia is not unique in its attempts at land reform. It was fairly common in Africa, Eastern Europe, etc. Ukraine and Romania had incredibly fertile soil and it's hard to think of regimes that eliminated their landlords harder. Yet they haven't really seen similar effects.

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