Jostein Hauge
@haugejostein
Assistant Professor at Cambridge • Political economy and development economics • Newsletter: http://theglobalcurrents.com • Email: [email protected]
The notion that developing countries can bypass manufacturing — and leap straight to services instead — ignores how every major economy actually developed.
New from me: How China's clean energy manufacturing boom is helping reduce CO2 emissions overseas. In 2024, China’s exports of solar panels, batteries and electric vehicles are shaved 1% off global emissions outside of China.
NEW – Analysis: China’s clean-energy exports in 2024 alone will cut overseas CO2 by 1% | @laurimyllyvirta Read here: buff.ly/V7BVSsL
China has done exactly what economic development theory suggests that all developing countries should do — and it has been really good at it. This is a fact, irrespective of one's value judgments regarding China's rise.
They called us backward for centuries. Now they beg us to slow down.
A wise man once told me that trying to learn about political economy and economic history in an economics department is like trying to learn about atheism in the Catholic church.
Vietnam's manufacturing sector employs 15M people (30% of the workforce). China's manufacturing sector employs 215M people (28% of the workforce). These are two of the world's fastest-growing economies. Labor-intensive industrialization is clearly *not* a thing of the past.
Giant US tech companies want us to believe that they play by the rules of free-market competition, while competitors abroad benefit from state support. This is false. From DARPA to the CHIPS & Science Act, the US innovation system is *the* masterclass in state support.
Exciting personal news: I've just signed a book contract with Princeton University Press. My book will be about China's industrial policy, from EVs and batteries to AI and robotics. It's aimed at both general readers and researchers, in the style of my High Capacity newsletter.
The idea that lower-income countries 'steal' technology from higher-income countries is ridiculous. Let me explain. Transnational corporations in higher-income countries are completely reliant on labour and production systems in lower-income countries to generate profits. For…
Yes. Writing is not a second thing that happens after thinking. The act of writing is an act of thinking. Writing *is* thinking. Students, academics, and anyone else who outsources their writing to LLMs will find their screens full of words and their minds emptied of thought.
Hot take: life is better for most people in Europe than for most people in the US. In Europe, there’s public transport. In Europe, you don’t have to go into massive debt if you become sick or want an education. In Europe, you actually have some rights as a worker.
Hot take: Europe is a bunch of third-world countries with better branding. No A/C. No dryers. Ice is a luxury. You’ll sweat through dinner while the waiter ignores you for 2 hours. Say what you want about America, but at least eating out doesn’t feel like hot yoga with bread.