Books like Rethinking Sovereign Debt — picked by fans

I see David Greaeber’s book as a landmark in the field. He completely changed my understanding of and views on money’s role in society and its evolution. I had the good fortune to meet David a few times (in fact, I made a podcast with him) and feel like I learned from every conversation.

Until I read David’s book, I had assumed that the Barter theory of money and the double coincidence of wants was the natural and unchallenged explanation for how money came to be and what roles it performed. David’s and subsequent authors' work has shown that this view is simplistic and outdated. 

In this recent book from South Africa, a group of mostly African academics and lawyers, including some young researchers, examine the financial stresses that COVID put on the sovereign debt burden of countries in the Southern Africa Development Community (SADC), including studies of Mozambique, Namibia, South Africa, Zambia, and Zimbabwe.

The authors view the debt constraints on SADC governments from an economic, financial, and human rights perspective, domestically and in interacting with international institutions, including limits on available debt relief.

The book also contains proposals to evade such crises in the future, including in a chapter by your correspondent.

The book is available in French and Portuguese as well as English, and you can download a copy for free. What could be better? 

When people talk about human rights and sovereign debt, it is usually when the government cannot pay its obligations and squeezes its citizens in the effort.

Who will speak up to protect those people? Thirty authors (including your correspondent) aim to do just that.

While one essay claims that creditor (property) rights trump human rights in international law, most of the authors discuss how to bring human rights into the legal landscape governing different types of foreign loans or investment, or how to protect the rights to food, health, education and more when the International Monetary Fund and creditors demand austerity.

Other essays propose international legal reforms (including arbitral, soft law, and “anti-vulture” litigation). Scholars, activists, or just the curious will want to consult this important and thoroughly accessible volume.

Government borrowing is the golden goose that makes possible investment in public infrastructure and continuing expenditures despite temporary shortfalls in tax revenue.

But when not managed well or when rocked by unforeseen catastrophes, sovereign debt can become an impossible burden.

Because the International Monetary Fund is mandated to worry about international financial stability, it is the central institution for international oversight of sovereign debt.

In this volume, the IMF brought together 38 economic and legal experts to explain to a broad audience why governments borrow, how to borrow sustainably, and how to emerge from default.

It is not a training manual but is comprehensive and clearly written so that even ministers of finance and legislators should understand it and civil society should draw on it in campaigns against debt crises.

This one’s by a member of the home team—a former student, colleague, collaborator, and fellow MMT conspirator.

Kelton was an advisor to Bernie Sanders, served as chief economist for the Senate Budget Committee, and is a frequent guest on all the important media outlets. She explains the basics of MMT and why they are important—especially right now as Congress is hog-tied trying to figure out what to do to prevent Uncle Sam from defaulting as we broach the debt limit.

This book, so excellent in giving valid arguments and then predicting China’s supposed inevitable economic demise, is a clear example of how most American authors reason about China without taking into account the huge economic differences it has with our economy.

McMahon and all the others forget that a) in the year 2000 there were 600 million cheap laborers in the countryside, and there still are more than 200 million available now, b) the Beijing Communist dictatorship is cruelly keeping wages of production workers at less than half ours, and c) the existing free trade, started by Bill Clinton in 2000, provides a huge yearly income to China that erases all possible financial troubles they may have.

These three elements together make Mr. McMahon’s book an intellectual silliness. Most authors in our Western world make the same error. It is high time this be realized and corrected.

Fighting a war required a lot of money, and David Thomson explains how that money was found. His story is surprising. Previous American wars going back to the Revolution had been funded by great merchants and financiers, but fundraising in the Union drew on a new source, by an unexpected figure.

The notorious financier Jay Cooke would later describe his role in organizing huge sales of U.S. war bonds to the American public as his finest hour. Certainly, there were bonds sold in European markets, especially in Germany, but the bulk of the war finance was based on ordinary Americans buying bonds to support the cause for a little old-age security in years to come.

Thompon’s account shows how the surge of Union sentiment that Goodheart describes as a “Civil War Awakening” was translated into a surge of patriotic popular capitalism that anticipated the American experience in the two world… show more.

Yes, this is the same Graham Hancock who now writes contrarian archeological tomes. I conducted some of my PhD fieldwork in the same area of Somalia that he visited as a reporter, and I was there not long after he was in the 1980s.

This was the first book I came across that explained why almost every development project I’d encountered when traveling around Africa seemed to be such a waste, or worse. Next to no one at the time was reporting on the corruption generated by ‘development’ or the extent to which aid was an industry. Hancock nailed it.  

I strongly recommend this book because it is clearly written, explains the methods of estimation, and provides an excellent overview of the extensive worldwide research on the returns to education based on earnings.

It certainly influenced me. It had a massive impact on World Bank lending policies in support of economic development in developing countries. It replaced the kinds of Bank physical capital investment policies such as those supporting dam construction, projects that included educating only for a few people on how to operate dams, with education sector-wide loans that support primary and junior secondary education of the labor force.

Some of these dams later washed out, and forests were destroyed in support of development. The book shows how the returns to investment in primary and secondary education are higher in developing countries where the labor force is often nearly illiterate than they are to investing in other higher levels… show more.

What I most admire about Autocracy and Redistribution is that it brings the best of contemporary political science to bear on questions of deep scholarly and real-world importance: what explains redistributive land reform? Albertus argues that redistributive land reform is much more likely when 1) top-level state leaders and large landowners have diverging interests and 2) institutional barriers to achieving large-scale reform are lower. Albertus shows that redistributive land reform is more likely under dictatorship than democracy.