Paul talks with Paul Kedrosky of the Kauffman Foundation. The discussion touches on Paul’s transition from academic work on growth theory to entrepreneurial work on Aplia, an education technology company. They then turn to how the startup dynamic—a dynamic that allows entrepreneurs to offer ever better goods and services—might be used to generate better choices for the many people who will move to cities this century.
Infectious Talk Podcast with Paul Kedrosky
China's Air Safety Overhaul
In the late 2000s, the fatal-accident rates of Chinese airlines were lower than those of airlines in Europe and the United States, even as Chinese carriers spent more and more hours in the sky. The culture of safety in China’s skies did not come from centuries of Confucian culture and respect for authority. It came from a decisive intervention that overhauled China’s aviation sector inside of a decade.
During the 1990s, China’s aviation rules failed to keep pace with the rapid growth and technical change in its airline industry. Travel within and abroad became more accessible but a lack of effective rules led to a series of fatal crashes between 1990 and 2002, leaving Chinese airlines with a reputation as some of the most dangerous in the world. China’s air-safety turnaround after 2002 illustrates the power of copying and implementing good rules.
Fisheries and the Persistence of Wildly Inefficient Rules
Managers consider a fishery collapsed in a given year if the harvest from that year is less than 10 percent of the maximum recorded harvest. In 2003, roughly 27% of the world’s fisheries were collapsed. Should fisheries mismanagement continue apace, the collapsed share of world fisheries will grow even larger. One estimate from the journal Science suggests universal collapse as early as 2048.
A combination of improvements in fishing technology and unchecked access to fisheries led to this unfortunate outcome. Collapsed fisheries highlight the fact that sustainable growth and development rely on something more than just the power of technology. The ideas behind fishing nets and trawlers fit nicely into the category of technology, but there’s another category of ideas needed to ensure a sustainable catch: rules.
Justice Has Been Delayed and Denied for Too Long
According to the New York Times, the new mayor of New Orleans, who campaigned on a promise to reform the city’s police department, recently asked the federal Department of Justice to intervene. The city’s police department, he wrote, has been described as one of the worst in the nation.
“This assessment is made based on several indications, including the number of violent crimes, incidents of rape, and malfeasance by members of the police department. It is clear that nothing short of a complete transformation is necessary and essential to ensure the safety for the citizens of New Orleans.”
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