Volume 45, Number 7 · April 23, 1998
How the West Won
By William H. McNeill
The Wealth and Poverty of Nations: Why Some Are So Rich and Some So Poor
by David S. Landes
Norton, 650 pp., $30.00
'If we learn anything from the history of economic development, it is that culture makes all the difference.' So David Landes sums up the message of his book. The title he chose and the histories of particular nations that he explores with wit and impressive learning are thus part of a sustained criticism of neoclassical economists' faith in the power of free markets to affect all peoples similarly and thus maximize wealth and well-being. Landes, on the contrary, argues that the historical record shows: 1) 'The gains from trade are unequal.' 2) 'The export and import of jobs is not the same as trade in commodities.' 3) The 'comparative advantage' a nation may have in international trade 'is not fixed, and it can move for and against.' 4) 'Just because markets give signals does not mean that people will respond timely or well. Some people do this better than others, and culture can make all the difference.'
Review, 3505 words
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