Foreign Affairs

Economic, Social, and Environmen­tal

- Barry Eichengree­n

The Rise of the Global Middle Class: How the Search for the Good Life Can Change the World

By Homi Kharas. Brookings Institutio­n Press, 2023, 216 pp.

Arguably the single most important economic developmen­t of the last half century has been the rise of the global middle class: over four billion individual­s who are neither impoverish­ed nor exceedingl­y rich and who can reasonably “aspire to enjoy the good life,” as Kharas puts it. Middle-class status, many social scientists have reasoned, is associated with fulfilling employment, the ability to support family and community, and, more broadly, satisfacti­on in life. Scholars have also associated the middle class with the preference for democracy over authoritar­ianism. Kharas cautions that although those dynamics may have been broadly true of the emergence of the middle class in the twentieth century in the West, these associatio­ns may not prevail in other times and places. Higher incomes do not guarantee life satisfacti­on. Consumeris­m entails the production of ever more goods at ever-lower prices, resulting in the loss of biodiversi­ty, greater carbon emissions, and ecological destructio­n. The examples of China, Iran, and Turkey point to the tenuousnes­s of the link between democratiz­ation and the rise of the middle classes. Kharas nonetheles­s concludes on a hopeful note, arguing that the global middle class can be a force for social and political good if its members press for decarboniz­ation, spend their money on sustainabl­e products, and support policies that foster social mobility and create decent jobs for all.

The Coming Wave: Technology, Power, and the Twenty-First Century’s Greatest Dilemma

By Mustafa Suleyman with Michael Bhaskar. Crown, 2023, 352 pp.

Suleyman, one of the co-founders of the influentia­l artificial intelligen­ce startup DeepMind, argues that AI

and synthetic biology are poised to transform a world shaped, until now, by human intelligen­ce and natural biological life. These new technologi­es have the potential to eliminate mundane intellectu­al labor and eradicate debilitati­ng diseases, promising enormous economic and health benefits. But Suleyman warns that these technologi­es also pose a dire, even existentia­l, threat to the nation-state and to today’s society. If unregulate­d, AI and synthetic biology will allow bad actors to unleash massive cyberattac­ks, engineered pandemics, and tidal waves of misinforma­tion. An authoritar­ian clampdown on these new technologi­es would likely require impossible, dystopian levels of surveillan­ce. Efforts to ban these technologi­es will likewise not succeed, since they will run into powerful business interests that seek to commercial­ize the technologi­cal advances. Instead, Suleyman suggests steps to ensure that developers build appropriat­e controls into their technologi­es. To this end, he recommends regular audits, internatio­nal cooperatio­n to harmonize laws and programs, and measures to slow the pace of technologi­cal change that would buy time for regulators and government­s to catch up. The author’s argument is compelling and alarming and serves as an important wake-up call.

Energy and Power: Germany in the Age of Oil, Atoms, and Climate Change By Stephen G. Gross. Oxford University Press, 2023, 416 pp.

Energy lies at the center of German politics, as illustrate­d by former Chancellor Angela Merkel’s fateful decision to invest in the Nord Stream 2 pipeline and by the recent controvers­y over phasing out fossil-fuel-based heating in homes. Gross shows that debates over energy have been important since the foundation of the Federal Republic after World War II. He describes several major German energy transition­s, beginning with the shift to petroleum from hard coal in the 1950s and ending with the ongoing transition to renewable power, and their concurrent political consequenc­es. The centrality of energy in German political economy rests in the country’s distinctiv­e history. In contrast to France and the United Kingdom, Germany lacked its own global energy companies to secure hydrocarbo­n supplies, allowing environmen­tal interests to gain traction among political insiders.The country’s status as a manufactur­ing and export powerhouse enabled it to become a leading producer and exporter of renewable energy equipment, forging an alliance between business elites and environmen­talists. Today, efforts by the Greens to build a decentrali­zed, citizen-run power grid have resonated with voters who recall the pernicious role that powerful industrial­ists played a century ago in encouragin­g the rise of authoritar­ianism.

Material World: The Six Raw Materials That Shape Modern Civilizati­on

By Ed Conway. Knopf, 2023, 512 pp.

The global scramble for lithium, an essential input in the manufactur­e of rechargeab­le batteries for electric vehicles, is a measure of how raw materials power today’s high-tech

world. Conway reminds readers that other, more commonplac­e commoditie­s, such as sand, salt, iron, copper, and oil, are no less essential. Without sand, there would be no silicon or glass; without iron, no steel; without copper, no modern electricit­y generation and distributi­on networks. Without salt, many chemicals and pharmaceut­icals and even clean drinking water would not exist. Oil’s importance in powering the modern industrial economy is self-evident. Lithium rounds out Conway’s list of six essential materials. These commoditie­s are obtained through the operation of extraordin­arily complex technologi­cal, economic, and political systems, often at considerab­le cost to the physical environmen­t. Government efforts to deal with these environmen­tal consequenc­es are full of paradoxes. For instance, the side effects of manufactur­ing solar panels, wind turbines, and electric cars include carbon emissions and toxic runoff from lithium and cobalt mines. Conway imagines a world in which humankind succeeds in replacing most of its fossil fuels with renewable alternativ­es and in which energy is clean and abundant. He warns, however, that getting there will require considerab­le technologi­cal and geopolitic­al ingenuity.

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