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The Future of Europe: Reform or Decline
A provocative argument that unless Europe takes serious action soon, its economic and political decline is unavoidable, and a clear statement of the steps Europe must take before it's too late. Unless Europe takes action soon, its further economic and political decline is almost inevitable, economists Alberto Alesina and Francesco Giavazzi write in this provocative book. Without comprehensive reform, continental Western Europe's overprotected, overregulated economies will continue to slow—and its political influence will become negligible. This doesn't mean that Italy, Germany, France, and other now-prosperous countries will become poor; their standard of living will remain comfortable. But they will become largely irrelevant on the world scene. In The Future of Europe , Alesina and Giavazzi (themselves Europeans) outline the steps that Europe must take to prevent its economic and political eclipse. Europe, the authors say, has much to learn from the market liberalism of America. Europeans work less and vacation more than Americans; they value job stability and security above all. Americans, Alesina and Giavazzi argue, work harder and longer and are more willing to endure the ups and downs of a market economy. Europeans prize their welfare states; Americans abhor government spending. America is a melting pot; European countries—witness the November 2005 unrest in France—have trouble absorbing their immigrant populations. If Europe is to arrest its decline, Alesina and Giavazzi warn, it needs to adopt something closer to the American free-market model for dealing with these issues. Alesina and Giavazzi's prescriptions for how Europe should handle worker productivity, labor market regulation, globalization, support for higher education and technology research, fiscal policy, and its multiethnic societies are sure to stir controversy, as will their eye-opening view of the European Union and the euro. But their wake-up call will ring loud and clear for anyone concerned about the future of Europe and the global economy.
186 pages, Hardcover
First published January 1, 2006
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Displaying 1 - 2 of 2 reviews
April 27, 2015
A very profound study of the differences between European and American societies and economies. Gives some interesting insights about(and almost predicts) the budget crises in couple of Eurozone countries. The researchers point out how much eaiser it is for countries that have adopted the euro to ignore the need for decreasing their debts(since they don't feel the high pressure of much higher interest rates as they would normally) as opposed to conducting necessary reforms that might have high political costs. Blaming the euro and the ECB for the lack of growth- empty political rhethoric.
Interesting arguments about the costs of doing business and the time necessary in Europe vs the US and the less effective judicial system that ultimately result in lack of creative destruction and low competitiveness. Discusses the concept of European societies paying 'rents' to insider groups protected by the governments by regulations or subsidies (such as notaries, taxi drivers etc.). Such rents don't contribute to the economy since the customers pay not for actual goods or services, but for the established place of someone in a business niche.
In favour of the need of comprehensible immigration reform that would compensate the demographic crisis in Europe. 'Social costs' of immigration should be taken into account (from countries whose citizens have closer mentality to the Western European mentality and who can adapt better). If Europe keeps restricting would be left with the 'low quality' immigrants.
The reasons for the more generous welfare programs in Europe as opposed to the US- a relatively homogenous population and a belief that society isn't mobile (hard to get out of a certain social class).
I give it four stars because of the glorfication of the US even in areas where there are obvious problems, such as the high fees for university education and lack of regulation of the financial markets that contributed to the financial crisis in 2008. A more balanced approach is needed and the view that liberalization and privatization is the cure for everything is one-sided. It is the cure for a lot of things in Europe though. (Interesting information about the role of the EC in liberalizing markets in the EU- low-cost airlines, costs of roaming etc.)
Interesting arguments about the costs of doing business and the time necessary in Europe vs the US and the less effective judicial system that ultimately result in lack of creative destruction and low competitiveness. Discusses the concept of European societies paying 'rents' to insider groups protected by the governments by regulations or subsidies (such as notaries, taxi drivers etc.). Such rents don't contribute to the economy since the customers pay not for actual goods or services, but for the established place of someone in a business niche.
In favour of the need of comprehensible immigration reform that would compensate the demographic crisis in Europe. 'Social costs' of immigration should be taken into account (from countries whose citizens have closer mentality to the Western European mentality and who can adapt better). If Europe keeps restricting would be left with the 'low quality' immigrants.
The reasons for the more generous welfare programs in Europe as opposed to the US- a relatively homogenous population and a belief that society isn't mobile (hard to get out of a certain social class).
I give it four stars because of the glorfication of the US even in areas where there are obvious problems, such as the high fees for university education and lack of regulation of the financial markets that contributed to the financial crisis in 2008. A more balanced approach is needed and the view that liberalization and privatization is the cure for everything is one-sided. It is the cure for a lot of things in Europe though. (Interesting information about the role of the EC in liberalizing markets in the EU- low-cost airlines, costs of roaming etc.)
April 7, 2011
This book deals with several major policy problems that Europe and Europeans are facing today. The usual suspects include non-competitive research and universities, mishandling of the increasingly multiethnic societies, liberalization of markets, high price of the social state, rigid labor market, to name just a few. There seems to be an increasing amount of literature and critical articles dedicated to these issues, in a stark contrast to the inability of European politicians to get a firm grip on them. Even though this book claims that Europe should not necessarily adopt Anglo-Saxon social and economic model, it is hard to escape this conclusion when reading the actual comparisons with the UK, US and other "Anglo-Saxon" countries.
One big policy issue that is not being discussed here deals with the collapse of the European family and its roots in the dismantling of the Judeo-Christian religio-ethical tradition. A good place to start reading more about this is George Weigel's "The Cube And The Cathedral: Europe, America and Politics Without God"
Additional criticism of this book concerns its editing. There are numerous spelling and other mistakes, and several graphs and charts are not all that clear. Otherwise, it is a very readable and engaging book.
One big policy issue that is not being discussed here deals with the collapse of the European family and its roots in the dismantling of the Judeo-Christian religio-ethical tradition. A good place to start reading more about this is George Weigel's "The Cube And The Cathedral: Europe, America and Politics Without God"
Additional criticism of this book concerns its editing. There are numerous spelling and other mistakes, and several graphs and charts are not all that clear. Otherwise, it is a very readable and engaging book.
Displaying 1 - 2 of 2 reviews