In their new paper, Vanessa Brown Calder and Chelsea Follett propose reforms to make family life easier and more affordable.
Vanessa Brown Calder, Chelsea Follett —
Fertility is on the decline in the United States and around the world. Although some commentators celebrate population declines for environmental or other reasons, others fear that below‐replacement fertility will result in negative economic and social consequences. As a result, many countries are pursuing various policies intended to boost fertility rates, such as baby bonuses, cash benefits for families with kids, paid family leave, and universal childcare. In the United States, members of Congress in both parties favor greater federal intervention to boost fertility rates or to support families more generally.
However, such policies are costly and have limited effects on fertility. International evidence indicates that expensive efforts to subsidize childbearing have failed to raise countries’ fertility to replacement levels and sustain fertility rates there. They typically fail even to meet policymakers’ more modest fertility objectives. Recent estimates suggest that fertility initiatives in the United States would be similarly misguided, with some $250 billion in annual subsidies needed to achieve a modest increase of 0.2 extra children per woman.
Although policymakers should avoid implementing similar initiatives, many other reforms would make family life easier and more affordable. This study proposes reforms to labor laws, child safety policies, tax and trade policy, and health policies that affect birth and conception, in addition to education, housing, and safety policy changes that would reduce the cost of raising children. Evidence suggests that some of these reforms could boost fertility, for instance, by reducing work‐life tradeoffs or other intensive parenting requirements. However, these reforms are also worthwhile as standalone measures that improve family life.
A Reduction in the Proportion of Africans Living in Shanty Towns
“According to the United Nations Development Programme (UNDP), a shanty town is a disadvantaged part of a city characterised by very unhealthy housing built by the inhabitants from salvaged materials, extreme poverty and no rights or security of tenure. According to the World Bank, over 60% of Africa’s urban population now lives in shanty towns. These almost 285 million urban dwellers represent 60% of Africa’s urban population. In 2003, Africans living in shanty towns made up 71.9% of the urban population.”
First Malaria Vaccine Slashes Early Childhood Mortality
“In a major analysis in Africa, the first vaccine approved to fight malaria cut deaths among young children by 13% over nearly 4 years, the World Health Organization (WHO) reported last week. The huge evaluation of a pilot rollout of the vaccine, called RTS,S or Mosquirix and made by GlaxoSmithKline, also showed a 22% reduction in severe malaria in kids young enough to receive a three-shot series.”
Introducing Centers of Progress: 40 Cities That Changed the World
Chelsea Follett —
“Cities, the dense agglomerations that dot the globe, have been engines of innovation since Plato and Socrates bickered in an Athenian marketplace,” as urban economist Edward Glaeser explains in his book The Triumph of the City.
Athens’s storied breakthroughs in philosophy are but one example of how cities have often been the sites of pivotal advances throughout history. Kyoto gave us the novel. Bologna gave us the university. Florence gave us the Renaissance. Paris gave us the Enlightenment. Manchester gave us the Industrial Revolution. Los Angeles gave us cinema. Postwar New York gave us modern finance . . . the list goes on. As Glaeser also notes, “Wandering these cities—whether down cobblestone sidewalks or grid-cutting cross streets, around roundabouts or under freeways—is to study nothing less than human progress.”
If you’re not able to travel to each of these extraordinary cities, perhaps the next best thing is to embark on a virtual tour from the comfort of your home. To that end, I wrote a book surveying 40 of history’s greatest urban centers, showcasing each city at a moment in time when it notably contributed to progress.
Centers of Progress: 40 Cities That Changed the World offers a fact-filled yet accessible crash course in global urban history, spanning from the agricultural revolution to the digital revolution. This book affirms the importance of cities to the story of human progress and innovation by shining a spotlight on some of the places that have helped create the modern world.
The book’s chapters can guide you through the Library of Alexandria, the stock exchange of Dutch Golden Age-era Amsterdam, and the pubs of Edinburgh during the Scottish Enlightenment, all in an afternoon.
Centers of Progress “takes the reader on a time-travel cruise through the great flash points of human activity to catch innovations that have transformed human lives” at their moment of invention, according to writer Matt Ridley in the insightful foreword that he kindly provided. Come explore Agra as the Taj Mahal was erected and Cambridge as Isaac Newton penned the Principia. Meet engineers in Ancient Rome, Silk Road merchants in Tang Dynasty Chang’an, music composers in 19th-century Vienna, and Space Age flight controllers in Houston.
Learning about past achievements may even hold the secret to fostering innovation in the present.
As I note in the book, “Although there are some exceptions, most cities reach their creative peak during periods of peace. Most centers of progress also thrive during times of relative social, intellectual, and economic freedom, as well as openness to intercultural exchange and trade. And centers of progress tend to be highly populated. . . . Identifying those common denominators among the places that have produced history’s greatest achievements is one way to learn what causes progress in the first place. After all, change is a constant, but progress is not.”
From the fall of the Berlin Wall to Hong Kong’s transformation from a war-ravaged “barren island” into a prosperous metropolis, many of the stories featured in Centers of Progress hold valuable lessons about the importance of ideas, people, and freedom. I hope that you will consider joining me on a journey through the book’s pages to some of history’s greatest centers of progress.
The world should take note of which principles brought freedom and prosperity to India.
Harry Backhouse —
The 76-year story of modern India is one of the greatest stories of progress in history. At the time of its independence in 1947, it was a mostly agricultural economy of 340 million people with a literacy rate of only 12 percent and a life expectancy of only 32 years. Today, it has the fifth-largest economy by nominal gross domestic product (GDP) and third largest by purchasing power parity. In his book “Enlightenment Now: The Case for Reason, Science, Humanism, and Progress,” Steven Pinker highlights six key areas of progress: life, health, wealth, safety, literacy, and sustenance. In every one of these metrics, life in India has significantly improved over the years.
Self-Sufficiency Is Self-Destructive
Since independence in 1947, India suffered the consequences of socialist ideals. In a quest for self-sufficiency, the government played a heavy role in the economy. Under Prime Minister Jawaharlal Nehru, India pursued Soviet-style “Five Year Plans,” intending to turn India into an industrialized economy. From 1947 to 1991, the government owned most key industries, including steel, coal, telecommunications, banking, and heavy industry. India’s economy was closed to foreign competition, with high tariffs and restrictions to foreign investment. For example, the import tariff for cars was around 125 percent in 1960. The policy of import substitution aimed to produce goods domestically instead of importing them from abroad. In reality, massive waste and inefficiency resulted, as Indian businesses were protected from international competition.
Furthermore, India’s private sector was heavily constrained. Overregulation and corruption stifled the business environment, and subsidies and price controls disincentivized production, leading to market distortions and fiscal deficits. The government required industrial licenses for the establishment, expansion, or modernization of industries, causing bureaucratic barriers and corruption. This environment tended to harm small businesses at the expense of large corporations, as large corporations could better cope with the complex bureaucracy. The period was often referred to as the License Raj, comparing the extent of control of the industrial licenses to that of direct rule by the British Empire before Indian independence.
Sustenance, Health, and Life
In his 2016 book, “Progress: Ten Reasons to Look Forward to the Future,” Johan Norberg showed how these problems impacted daily life. When Norman Borlaug invented new high-yield wheat, India was facing a threat of mass starvation. Despite that, Indian state monopolies lobbied against both food and fertilizer imports. Fortunately, Borlaug was able to bring through his innovations. In 1965, yields in India rose by 70 percent.
From 1948 to 2018, the number of calories per person increased by two-thirds, growing from 1,570 to 2,533. For reference, the recommended healthy number of calories per person is 2,000 for a woman and 2,500 for a man. The average Indian now no longer suffers from undernourishment.
This achievement is even more remarkable when one considers the growth of the Indian population, which added a billion new citizens between 1948 and 2018. As well as having a greater population, Indians began living longer, with life expectancy more than doubling between 1947 and 2022. Furthermore, fewer children were dying—infant mortality fell dramatically between 1960 and 2022. Many children previously suffered from malnutrition. Parents could now watch their children grow up and have children of their own.
Wealth, Safety, and Literacy
However, problems in India remained. The License Raj continued to strangle the Indian economy in the name of protectionism. In 1978, the economist Raj Krishna coined the term the “Hindu rate of growth” to refer to slow economic growth of around 4 percent per year, which was prevalent in India from the 1950s to the 1980s. But Krishna was incorrect. The slow rate of growth had nothing to do with Hinduism or factors unique to India. Instead, India’s growth was low, because of the restrictive policies of the socialist government. As soon as India removed the restrictions to competition and commerce, it began reaching growth rates of between 6 percent and 9 percent each year.
The economic liberalization of India was prompted by an economic crisis in 1990. India, having borrowed heavily from international lenders to finance infrastructure projects, was facing a balance of payments crisis and had only two weeks until it would default on its debt. A new government under Prime Minister P. V. Narasimha Rao abolished the License Raj, removing restrictions for most industries and foreign investment into Indian companies. Restrictions on foreign technology and imports were scrapped, as were subsidies to fertilizer and sugar. India flung open its doors to the world, embracing competition in both imports and exports. Indian companies now faced foreign competition in the domestic market but also had the entire world market to sell to.
New industries sprung up, with India developing competitive industries in telecommunications, software, pharmaceuticals, biotechnology, research and development, and professional services.
The result was a dramatic increase in the standard of living for ordinary Indians. The economy flourished as foreign investment flooded in. The innovating spirit of ordinary Indians was unleashed. Between 1993 and 2021, access to electricity went from 50 percent of the population to 99.6 percent. The literacy rate improved from 48.2 percent to 74.4 percent. This is even more remarkable considering that India added extra 600 million people during that period.
Having access to a microwave, refrigeration, and electric lighting are all amenities that we take for granted, but these conveniences are relatively recent for the average Indian. A virtuous cycle of more educated, well-fed citizens creates greater innovation and prosperity. It is also correlated with less violence, with the homicide rate falling by 48 percent between 1991 and 2020.
Absolute poverty also has been falling. In 1987, half of the Indian population lived in extreme poverty. By 2019, this figure had fallen to 10 percent. Granted, there are still issues in India. Millions of people live in slums, and poverty remains a problem. However, it is worth appreciating just how far India has come.
As the Indian economist Gurcharan Das says about his country’s progress in the documentary “India Awakes,” “The principles that brought so much prosperity and freedom to the West are being affirmed in a country that is in the East.”
These principles are that of a market economy, openness to innovation, and a favorable attitude to commerce.
Life, health, education, and sustenance have all measurably improved. Violence and poverty have declined. Progress has occurred, and the world should take note.