by Paul Collier
Biafra, 58
Bitcoin, 37–8, 193
Blackpool, 4
Bonhoeffer, Dietrich, Letters and Papers from Prison, 108
The Bottom Billion (Collier), 27
Brazil, 58
Brexit vote (June 2016), 5, 125, 131, 196, 215
British Academy, 7
British Motor Corporation, 74
Brooks, David, The Road to Character, 108
Buiter, Willem, 186
Bush, George W., 120–21
business zones, 150
‘Butskellism’, 49*
Cadbury, 77
Cameron, David, 205
Canada, 22
capitalism
competition, 21, 25, 56, 85, 86
‘creative destruction’ concept, 21
current failings of, 4–5, 17, 25, 42, 45–6, 48, 201, 212–13
and decline of social trust, 5, 45–6, 48, 55, 59, 69
as essential for prosperity, 4–5, 18, 20, 25, 201
and families, 37
first mover advantage, 148
and greed, 10, 19, 25–7, 28, 31, 42, 58, 69, 70†, 81, 95
and Marx’s alienation, 17–18
and oppositional identities, 56, 74
vested interests, 85, 86, 135–6, 207
see also firms
Catalan secession movement, 58
causality, narrative of, 33, 34
CDC Group, 122, 149*
Chaucer, Geoffrey, The Canterbury Tales, 129
Chicago, University of, 166
childhood
adoption, 110–11
children in ‘care’, 104, 105, 110, 111, 157
children ‘reared by wolves’, 31–2
cognitive development, 105–6, 170, 175–6
fostering, 104, 105, 111
identity acquisition, 32
impact of parental unemployment, 160–61
learning of norms, 33, 35, 107–8
non-cognitive development, 105, 163, 169–70, 171–3, 174, 175–6
‘rights of the child’ concept, 103–4
in single-parent families, 101, 102, 104–5, 155, 160
trusted mentors, 169–70
see also family
China, 118–19, 149, 203
Chira, Susan, 52–3
Chirac, Jacques, 14, 120–21
Christian Democratic parties, 5, 14
Citigroup, 186
Clark, Gregory, The Son Also Rises, 106–8
Clarke, Ken, 206
class divide
assortative mating among new elite, 99–100, 154, 188–9
author’s proposed policies, 19–20, 21, 183–4, 187–8, 190, 207–8
and breadth of social networks, 169
and Brexit vote, 5, 196
and cognitive development, 105–6
divergence dynamic, 7, 18, 48, 98–108, 154–61, 170–71, 172–80, 181–90
‘elite’ attitudes to less-well educated, 4, 5, 12, 16, 53, 59, 60–61, 63
and family life, 20, 98, 99–106, 157–62
and fracture to skill-based identities, 3–5, 51–6, 78
and home ownership, 68, 181, 182–3
need for socially mixed schools, 164–5
and non-cognitive development, 105, 163, 169–70, 171–3, 174, 175–6
and parental hothousing, 100, 101, 105–6
post-school skills development, 170–76
pre-emptive support for stressed families, 20, 155, 157–60, 161–3, 208
and reading in pre-teens, 167–9
and recent populist insurgencies, 5
retirement insecurities, 179–80
and two-parent families, 155–6, 157
unravelling of shared identity, 15, 50, 51–6, 57*, 58–61, 63, 215
see also white working class
climate change, 44, 67, 119
Clinton, Hillary, 5, 9, 203–4
coalition government, UK (2010–15), 206
cognitive behavioral therapy, 160
Cold War, 113, 114, 116
end of, 5–6, 115, 203
Colombia, 120
communism, 32, 36–7, 85–6
communitarian values
care, 9, 11, 12, 16, 29, 31, 42, 116
fairness, 11, 12, 14, 16, 29, 31, 34, 43, 116, 132–3
hierarchy, 11, 12, 16, 38–9, 43, 99–100
left’s abandonment of, 16, 214*
liberty, 11, 12, 16, 42
loyalty, 11, 12, 16, 29, 31, 34, 42–3, 116
new vanguard’s abandonment of, 9, 11–13, 14–15, 16, 17, 49–50, 113, 116–18, 121, 214
post-war settlement, 8–9, 49, 113–16, 122
and reciprocal obligations, 8–9, 11–12, 13, 14, 19, 33, 34, 40–41, 48–9, 201, 212–15
roots in nineteenth-century co-operatives, 8, 13, 14, 201
sanctity, 11, 16, 42–3
Smith and Hume, 21–2†
values and reason, 29–30, 43–4
see also belonging, narrative of; obligation, narrative of; reciprocity; social democracy
Companies Act, UK, 82
comparative advantage, 20, 120, 192, 194
Confederation of British Industry (CBI), 79
conservatism, 30, 36
Conservative Party, 14, 49, 205, 206
contraception, 98–9, 102
co-operative movement, 8, 13, 14, 201
Corbyn, Jeremy, 202, 204–5
Crosland, Anthony, The Future of Socialism, 17, 18, 19
Cuban Missile Crisis (1962), 114
debutante balls, 188
Denmark, 63, 178, 214*
Descartes, Rene, 31
Detroit, 128, 129, 144
Deutsche Bank, 78, 185
development banks, 149–50
Development Corporations Act (1981), 150
Dickens, Charles, Bleak House, 108
digital networks
detachment of narratives from place, 38, 61–2
economies of scale, 86–7
global e-utilities, 37, 38, 86–7, 89–90, 91
social media, 27, 61, 87, 173, 207, 215
value-based echo-chambers, 38, 61–2, 64–5, 212, 215
Draghi, Mario, 153
Dundee Project, 161–2
Dutch Antilles, 193
East Asia, 147, 192
eBay, 87
economic man, 10, 19, 25, 26–7, 31, 34–5, 196, 209, 210, 215
economic rent theory, 19, 91, 133–9, 140–44, 186–8, 192, 195, 207
education
and collapse of social democracy, 50, 52, 53, 54, 55, 59, 63
and empathy, 12
and European identity, 57*
expansion of universities, 99–100, 127
and growth of the middle class, 100
inequality in spending per pupil, 167
mis-ranking of cognitive and non-cognitive training, 174–6
need for socially mixed schools, 164–5
post-school skills development, 170–76
pre-school, 105–6, 163–4
quality of teaching, 165–6
reading in pre-teens, 167–9
and shocks to norms of ethical family, 98, 99–105
symbols of cognitive privilege, 175
teaching methods, 166–7
vocational education, 171–6
zero-sum aspects of success, 189
electoral systems, 206
Emerging Market economies, 129, 130–31
empires, age of, 113
The Enigma of Reason (Mercier and Sperber), 29
enlightened self-interest, 33, 40*, 97–8, 101, 109, 112, 113, 114, 117, 184, 213
Enron, 80
ethnicity, 3, 20, 56, 62, 64, 65, 211
Europe
Christian Democrats in, 5, 14
class divides, 3, 4, 5, 125
decline in social trust, 45
and knowledge industries, 192
metropolitan-provincial divides, 3, 4, 125
and migration, 121, 197
and shared id
entity, 57–8, 64, 66, 125
social democracy in, 8–9, 49, 50
European Central Bank, 153
European Commission, 57
European Investment Bank, 149
European Union (EU, formerly EEC), 66, 67, 114, 115, 116, 117
Brexit vote (June 2016), 5, 125, 131, 196, 215
Eurozone crisis, 153
public policy as predominantly national, 212
universities in, 170
evolutionary theory, 31, 33†, 35–6, 66
externalities, 145–6
Facebook, 87
Fairbairn, Carolyn, 79
fake news, 33–4
family, 19
African norms, 110–11
benefits for single parents, 160
Clark’s ‘family culture’, 107–8
entitled individual vs family obligation, 99–103, 104–6, 108–9, 210
equality within, 39, 154
erosion of mutual obligations, 101–2, 210
identity acquisition, 32
ideologies hostile to, 36–7
impact of unemployment/poverty, 4, 7, 160–61
importance of, 36, 37
and increased longevity, 110, 161
in-kind support for parenting, 161
nuclear dynastic family, 102, 110, 154
one-parent families, 101, 102, 104–5, 155, 160
parental hothousing, 100, 101, 105–6
post-1945 ethical family, 97–8, 99–105, 108, 210
pressures on young parents, 159–60, 161–3
and public policy, 21, 154–5, 157–70, 171–3, 177, 209
and reciprocity, 97–8, 101, 102
shocks to post-1945 norms, 98–105
shrinking of extended family, 101–2, 109–10, 161
social maternalism concept, 154–5, 157–8, 190
two-parent families as preferable, 155–6, 157
see also childhood; marriage
Farage, Nigel, 202
fascism, 6, 13*, 47, 113
Federalist papers, 82
feminism, 13, 99
Fillon, François, 204
financial crisis, global (2008–9), 4, 34, 71, 160
no bankers sent to gaol for, 95–6
financial sector, 77–9, 80–81, 83–5
asymmetric information, 88, 185
co-ordination role, 145–6
economies of scale, 87
localized past of, 84, 146
toxic rivalries in, 189
trading in financial assets, 78–9, 84, 184–5, 186, 187
Finland, 63
firms, 19, 21, 69
CEO pay, 77–8, 79, 80–81
competition, 21, 25, 56, 85, 86
control/accountability of, 75–81, 82–5
cultures of good corporate behaviour, 94–5
demutualization in UK, 83, 84
deteriorating behaviour of, 18, 69, 78, 80–81
economies of scale, 17–18, 37, 86–7, 88–91, 126–7, 144–5, 146–7
ethical, 70–71, 172, 209–10
and ethical citizens, 93–4, 95, 96
failure/bankruptcy of, 70, 71, 72, 74, 75–6
flattening of hierarchies in, 39
Friedman’s profit nostrum, 69–70, 71, 76, 78–9, 210
global e-utilities, 37, 38, 86–7, 89–90, 91
ideologies hostile to, 37, 81
low productivity-low cost business model, 173–4
‘maximising of shareholder value’, 69–70, 76, 79, 82–3
‘mutuals’, 83
need for bankslaughter crime, 95–6
new network features, 86–7
policing the public interest, 93–4
public dislike of, 69, 95–6
public interest representation on boards, 92–3
regulation of, 87–90, 174
reward linked to short-term performance, 77, 78–81
sense of purpose, 39–40, 41, 70–75, 80–81, 93–4, 96
shareholder control of, 76–7, 79, 80, 82–3
societal role of, 81–2, 92–3, 96, 209–10
utility services, 86, 89, 90
worker interests on boards, 83, 84–5
Fisher, Stephen, 196*
Five Star, 125
Ford, 70, 71
France, 7, 63, 67, 114
écoles maternelles in, 164
labour market in, 176, 189
pensions policy, 180
presidential election (2017), 5, 9, 204
universities in, 170
working week reduced in, 189
Frederiksen, Mette, 214*
Friedman, Milton, 15, 69–70, 71, 76
The Full Monty (film), 7, 129
G20 group, 118
G7 group, 118
G8 group, 194
Ganesh, Janan, 125
Geldof, Bob, 169
General Agreement on Tariffs and Trade (GATT), 114, 115, 116–17
General Motors (GM), 72, 73–4, 75, 86, 172
geographic divide, 3, 16, 18, 19, 215
author’s proposed policies, 19, 207
and Brexit vote, 125, 196
broken cities, 4, 7, 19, 48, 125, 129–30, 147–9
business zones, 150
co-ordination problem over new clusters, 145–50, 207
decline of provincial cities, 4, 7, 19, 48, 125, 129–30, 131, 144–5
economic forces driving, 126–30
and education spending, 167
first mover disadvantage, 148–9
ideological responses, 130–32
investment promotion agencies, 150–51
and local universities, 151–2
and metropolitan disdain, 125
need for political commitment, 153
as recent and reversible, 152–3
regenerating provincial cities, 19, 142, 144–50
and spending per school pupil, 167
widening of since 1980, 125
George, Henry, 133–6, 141
Germany
2017 election, 5, 205
local banks in, 146
Nazi era, 57
and oppositional identities, 56–7
oversight of firms in, 76
post-war industrial relations policy, 94–5
and post-war settlement, 114
re-emergence of far right, 5
rights of refugees in, 14
‘social market economy’, 49
TVET in, 171–2, 174, 175
vereine (civil society groups), 181
worker interests on boards, 84–5
global divide, 7–8, 20, 59–60, 191–8, 208
globalization, 4, 18, 20, 126–7, 128, 129, 130–31, 191–8
Goldman Sachs, 70†, 83–4, 94
Google, 87
Great Depression (1930s), 114
Green, Sir Philip, 80
Grillo, Beppe, 202
‘Grimm and Co’, Rotherham, 168–9
Gunning, Jan Willem, 165
Haidt, Jonathan, 11–12, 14, 16, 28, 29, 132–3
Haiti, 208
Halifax Building Society, 8, 84
Hamon, Benoît, 9, 204
Harvard-MIT, 7, 152
Hershey, 77
HIV sufferers in poor countries, 120–21
Hofer, Norbert, 202
Hollande, Francois, 9, 204
Hoover, 148
housing market, 181–4
buy-to-let, 182, 183, 184
and lawyers, 187
mortgages, 84, 176, 182, 183–4
proposed stock transfer from landlords to tenants, 184
Hume, David, 14, 21, 21–2†, 29
Huxley, Aldous, Brave New World (1932), 5
Iceland, 63
Identity Economics, 50–56, 65–7
ideologies
based on hatred of ‘other’ part of society, 43, 56, 213, 214
‘end of history’ triumphalism, 6, 43–4
hostile to families, 36–7
hostile to firms, 37, 81
/> hostile to the state, 37–8
and housing policy, 183
and migration, 198
New Right, 14–15, 26, 81, 129
norms of care and equality, 116, 132–3
polarization of politics, 38, 63, 202–5
pragmatic eschewal of, 17, 18, 21, 22, 29–30
and principle of reason, 9, 13, 14, 15, 21, 43
Rawlsian vanguard, 13–14, 30, 49–50, 53, 67, 112, 113, 201, 202, 203, 214
return of left-right confrontation, 5, 6, 81, 202–5
and rights, 12–14, 44, 112
seduction of, 6
and twentieth century’s catastrophes, 5–6, 22
views on an ethical world, 112
see also Marxism; rights ideology; Utilitarianism
IFC (International Finance Corporation), 122
Imperial Chemical Industries (ICI), 69–70, 75
India, 118–19
individualism
entitled individual vs family obligation, 99–103, 104–6, 108–9, 210
fulfilment through personal achievement, 28, 99, 100–101, 102, 103, 108–9, 213
New Right embrace of, 14–15, 53, 81, 214–15
as rampant in recent decades, 19, 214–15
reciprocity contrasted with, 44–5
and withering of spatial community, 61–2
industrial revolution, 8, 126
inequality
and assortative mating among new elite, 99–100, 154, 188–9
and divergence dynamic, 7, 18, 48, 98–108, 154–61, 170–71, 172–80, 181–90
and financial sector, 185
and geographic divide, 3, 7–8, 20, 125
global divide, 7–8, 20, 59–60, 191–8, 208
persistence of, 106–8
Rawls’ disadvantaged groups, 3–4, 13–14, 16, 50, 53, 121, 203–4, 214
and revolt against social democracy, 15–16
rising levels of, 3–5, 106, 125, 181, 190
and Utilitarian calculus, 132
innovation, 185–6, 208
International Monetary Fund (IMF), 114, 117
international relations
achievement of post-WW2 leaders, 113–16, 122
building of shared identity, 114–16
core concepts of ethical world, 112, 113–14
erosion of ethical world, 116–18
expansion of post-war ‘clubs’, 116–18, 210
new, multipurpose club needed, 118–19, 122
and patriotism narrative, 67
situation in 1945, 112–13, 122
investment promotion agencies, 150–51
Irish Investment Authority, 151
Islamist terrorism, 42, 212, 213
Italy, 4, 58, 160
James, William, 29*
Janesville (US study), 178
Japan, 72–3, 94, 101, 149, 192
John Lewis Partnership, 83, 172
Johnson, Robert Wood, 39–40, 72
Johnson & Johnson, 39–40, 41, 72, 74*, 79
Jolie, Angelina, 112
JP Morgan, 71*
Juppé, Alain, 204
Kagame, Paul, 22
Kay, John, 82*, 84, 211