The Siren of the Financial Meltdown

by Mary Ann Sieghart Info

Mary Ann Sieghart is a journalist and broadcaster. Having spent 19 years as Assistant Editor of The Times, she now writes a weekly column on politics and economics for The Independent newspaper. She also presents radio programmes for the BBC, sits on the Council of Tate Modern, and is an equity partner in The Browser website.

The brainy, and glamorous economist Dambisa Moyo castigates the West for its economic profligacy in a provocative new book. She talks about rising from humble Zambian roots to the heights of Davos.

When Dambisa Moyo wrote a book claiming that aid was bad for Africa, many in the West were ecstatic. This was no right-wing, isolationist, middle-aged, white, male author, but a glamorous, young, black, female, African economist. Dead Aid won itself a load of publicity when it came out in 2009, not because its argument was particularly new, but because it came from such an unexpected source.

David Levenson / Getty Images

Moyoâ??s new book, How the West Was Lost: Fifty Years of Economic Follyâ??and the Stark Choices Ahead, may be rather less welcome to Western audiences. The 42-year-old Zambian argues that we have become feckless, over-borrowed, and obsessed with consumer goods. Our governments have fed our foolishness with policies that meant well but ended badly. Meanwhile China and the other emerging economies, which she dubs â??the Rest,â? have been catching up fast and have so far made few of the same mistakes. At the end of the book, she controversially floats the possibility of the U.S. defaulting on its debt.

Having grown up and gone to college in Zambia, but having studied for a masterâ??s at Harvard and a doctorate at Oxford, where does Moyo herself fit in to this story? â??Itâ??s the most fortuitous position I could ever have asked for, because Iâ??m neither a Westerner nor a â??Resterner.â?? I come from the laggard in the whole game: Africa.â? That said, Moyo looks every inch the glossy international jet-setter, with her designer dress, crimson nail varnish, and vertiginous heels, perched in the tearoom of a breathtakingly expensive Knightsbridge hotel. She has apartments in both London and New York, travels to Asia four times a year, and goes back to Zambia every couple of months. She is ubiquitous on the global conference circuit of Davos, Bilderberg, and Aspen. Where does she consider home these days? Full-throated laughter: â??A British Airways flight!â?

There is no hint of schadenfreude in Moyo. She isnâ??t gloating at the decline of the West. Far from it. â??Having grown up in Africa and watched all the most amazing American and British TVâ??Dallas, Dynasty, Fawlty Towersâ??and having lived in a time when going to America was a big aspiration, it makes it even more of an issue to say, â??Youâ??ve got to get it right! How can you disappoint my childhood dreams?â?? At the same time, seeing what Chinaâ??s done in moving 300 million people out of poverty gives me so much hope for whatâ??s possible for my home continent of Africa.â?

â??If people are going to address my arguments based on where Iâ??m from or because I happen to come in the packaging I come in, thatâ??s not my issue, thatâ??s their issue.â?

Moyoâ??s argument is that Western governments unwisely encouraged their citizens to borrow too much and sink the money into the unproductive investment of a home, with all the subprime consequences that we have seen since. They set up unaffordable Ponzi state-pension schemes. And they failed to incentivize young people to study mathematics and science at college. How can such societies then compete against the highly educated, prudent Chinese, who donâ??t have the economic burden of a welfare state?

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Niall Ferguson Blasts Obama's Foreign Policy

by Niall FergusonInfo

Niall Ferguson is a professor of history at Harvard University and a professor of business administration at Harvard Business School. He is also a senior research fellow at Jesus College, Oxford University, and a senior fellow at the Hoover Institution, Stanford University. His latest book, The Ascent of Money: A Financial History of the World, was published in November.

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The Republicans' CPAC Misfire

by Eleanor CliftInfo

Eleanor Clift is a contributing editor for Newsweek.

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Awkward Valentine's Photos

by The Daily BeastInfo

The Daily Beast is dedicated to news and commentary, culture, and entertainment. We carefully curate the webâ??s most essential stories and bring you original must-reads from our talented contributors.

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