AK

This website (akarlin.com) contains all the blog/website archives I have been able to get my hands on, everything that is too minor to go to my Substack but too big to just Tweet out, life observations and events, and most of my book reviews and travel writing.

X-Mas Special – Zen and the Art of Vodka Drinking

The ability of Russians to drink prodigious amounts of alcohol before getting knocked out is legendary in the West*. It is a subject at once of grudging respect for the hardy Russian soul and airy condemnation of their shallow barbarism. Actually, there is nothing particularly supernatural or mysterious about it, nor is it a result of genetic resilience to the embrace of the green serpent acquired over generations. It is a simple procedure that anyone can learn, albeit mastering it is more of an art. With the ongoing Christmas and New Year festivities, as your drinking guru I feel it is my duty to inform you of how to drink lots of spirits and enjoy it.

The traditional party begins with a meal in the evening and lasts well into the night. If you are a healthy, non-East Asian adult male, you can expect to consume around about 500-750ml of 40% vodka (that is, the equivalent of 2-3 13% wine bottles, or 4-6 litres of beer) during a typical “zapoi”. Adjust upwards if you have exceptional alcohol tolerance, adjust down if you are a woman (smaller body mass, higher percentage of fat), a pure-blood East Asian (many of them lack the gene that breaks down alcohol) or have health problems, particularly heart or liver related. Or if you’re a child…unlike the French, Russians are generally strict on this. At best you’ll get a glass of low-alcohol apple cider before being sent to bed sometime around 10pm. Now 500-750ml of vodka sounds like a really big amount, inducing a certain sense of fear and loathing in the average Westerner. But spread over several hours and consumed according to a certain procedure, you should overpower this beast with no problems.

The key principle is to fill your belly up with foods that slow down the transfusion of alcohol into the bloodstream. This should prevent the dangerous spikes in alcohol levels that knock out the uninitiated, albeit it does mean that you’ll remain drunk as late as next midday. This means that you should eat lots of fatty, starchy and salty stuff. A typical (hopefully) set-up for a zapoi will include some of the following: fried potatoes and onions; salads like Olivier, vinaigrette or potato salad with their heavy mayonnaise or oil-based dressings; cucumber, cabbage and other pickles; cheeses, sausages and hams; oily fish like sprats, herring or sardines, preferably pickled or oil-preserved. Perhaps the ultimate “zakuska” (something you “bite over”) is salo, salted pork fat. Personally I’ve always found it rather disgusting and refrained from eating it, regardless of my state of inebriation. It is important to eat a zakuska immediately after downing a shot so as to soak up the vodka and release it into the blood steadily rather than suddenly.

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Victimized Venezuela II: Beware of Schadenfreude

Much like Putin’s Russia, Venezuela has been unfairly victimized by Washington’s foreign policy elite and savaged by the Western MSM, which have caricatured Chávez as a run of the mill Latin American populist strongman. In a previous post on this matter, I drew attention to the work of Mark Weisbrot at the CEPR, who has demolished these crude myths (The Venezuelan Economy in the Chávez Years). Under the Bolivarian regime poverty plummeted, access to high-quality healthcare, education and affordable food widened and the GDP skyrocketed by 94% from Q2 2003 to 2008.

Unable to criticize Venezuela on humanitarian grounds, the only option left open to the neoliberal ideologues was to claim that the Venezuelan economic miracle was nothing more than an ‘oil boom headed for collapse’. Unfortunately for them, the Venezuelan state kept a balanced budget, reduced its foreign debt from 47.7% of GDP in 2003 to 24.3% in 2007 and total interest on all public debt amounted to just 2.1% of GDP in 2006 – overall, a fiscal policy far more responsible than Washington’s itself. For 2008, the government assumed an oil price of 35$ per barrel; it is true that in practice the state spends beyond budgeted expenditures when oil revenue far exceeds the budgeted for price, so a fall in oil prices would trim government spending and growth. However, a budgetary crisis or economic downturn are very unlikely, since the government has more than 50bn $ of international reserves it can draw upon in a crisis.

That was the theory when Weisbrot published the paper in February 2008…but how does it stack up in the face of 50$ per barrel today?

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Congratulations, America!

But will Obama really bring change?

As I predicted he would, Obama has won overwhelmingly. As I argued, this was the best possible outcome for America – Obama understands the importance of investing heavily in renewable energy and new infrastructure, and would withdraw from the financially ruinous Iraq adventure. Just by his election, he has bolstered America’s battered image around the world.

The margin of his victory also gives him latitude to decisively sway the course of American policy, domestically and internationally – although in practice this latitude is greatly constrained by financial and institutional realities.

But do not expect change on all fronts. His two main Russia advisors are Russophobes – McFaul, champion of the Russian “authoritarianism” dogma, and Brzezinski, high priest of the Promethean Project to weaken, encircle and break up Russia. A tough Russia policy will deflect conservative attention from his domestic ambitions.

So it’s important to look at things realistically – do not expect too much change from Obama on Russia. Though it’s OK to hope otherwise. 🙂

A Long Wait at the Gate of Delusions

Sometimes, it is much simpler to expound upon one’s views on a subject by replying to and arguing against an opposing view, rather than constructing one’s own thesis. Call it intellectual laziness, a clever short-cut or whatever you not, this is what I’m going to do with the Washington Post article A Long Wait at the Gate to Greatness, in which John Pomfret argues that China is unlikely to ever match, let alone surpass, the United States as the world’s premier superpower. I will quote it in full, adding my own comments:

Nikita Khrushchev said the Soviet Union would bury us, but these days, everybody seems to think that China is the one wielding the shovel. The People’s Republic is on the march — economically, militarily, even ideologically. Economists expect its GDP to surpass America’s by 2025; its submarine fleet is reportedly growing five times faster than Washington’s; even its capitalist authoritarianism is called a real alternative to the West’s liberal democracy. China, the drumbeat goes, is poised to become the 800-pound gorilla of the international system, ready to dominate the 21st century the way the United States dominated the 20th.

The key difference is that China is a demographic giant. This means that to match the US in gross GDP (one of the key criteria for superpower status), it need only advance to around a quarter of its per capita development, or Mexico’s level. To match the West (and be double the US), it need only reach Portuguese standards.

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Education as the Elixir of Growth II

A while ago I wrote Education as the Elixir of Growth on DR, in which I noted that in most countries the educational profile is closely correlated to their level of productivity. The major exceptions are nations with resource windfalls (inflated productivity) and socialist legacies (deflated productivity). Furthermore, the greater the gap between the ‘potential productivity’, as suggested by the human capital level, and actual productivity, the greater will be the rate of economic convergence. This rate in turn depends on the openness of an economy (i.e. the rate at which it can absorb the latest know-how). Some countries, however, cannot converge to advanced industrial levels, since their human capital is set at a low level – they have reached an asymptote relative to the developed world and cannot converge without improving their educational profiles relative to the latter.

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Why Obama Will Almost Certainly Win

Read these two posts by Krugman at Conscience of a Liberal, here and here.

1. A looming recession, after seven years of stagnation in the US median wage, means that the likelihood of positive income growth this year is very small. Even assuming it’s 0% would mean that the incumbent party’s nominee, McCain, can be expected to lose by an 8% margin in the straight line fit below. To break even income needs to grow by around 2%, which looks more unlikely with every new financial breaking story.

More likely, it will be around 0% or worse and McCain would be facing a landslide defeat, as in 1980.

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Victimized Venezuela

Chavez is frequently shafted in the Western media, who allege that the only reason the Venezuelan economy is doing well is because of record oil prices. This is not to mention all the invective hurled against the Chavez administration for its supposed disrespect for democracy, from refusing to renew the licenses of TV stations support foreign-sponsored coup attempts against him (while ignoring human rights violation in friendly countries in the region like Colombia, where more union workers are killed annually in than in the rest of the world combined) to the latest smear job by the Economist about crime.

But let’s focus on the economic-boom-is-because-of-oil mantra. Having disproved similar claims about Russia, I decided to investigate this further. Novel Prize winning economist Stiglitz has praised Venezuela’s economic policies. And I found this excellent paper, Update: The Venezuelan Economy in the Chávez Years by Mark Weisbrot and Luis Sandoval from 2008. I’ve quoted its main findings.

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Education as the Elixir of Growth

What are the reasons behind the wealth and poverty of nations? Since this question has exercised the minds of thinkers from Adam Smith to David Landes, Jared Diamond and Richard Lynn, I decided to take a look at it myself. I came to the conclusion that while geography, macroeconomic policies, resource windfalls and the microeconomic environment do play important roles, by far the most important factor is the state of a country’s human capital – things like literacy rates, school life expectancy and performance on international student assessments.

This is not a new idea. A Goldman Sachs report, Dreaming with BRICs, noted that:

Many cross-country studies have found positive and statistically significant correlations between schooling and growth rates of per capita GDP—on the order of 0.3% faster annual growth over a 30-year period from an additional one year of schooling.

However, I think education is much more central to this. The problem with using years of schooling as a yardstick is that in many middle-income countries, like Argentina, Turkey or Brazil, the amount of schooling is converging to that of the developed world, but the quality isn’t. This is attested to by their performance on international student assessments like PISA. For instance, in the 2006 PISA Science assessment, only 15.2% of Brazilians were at Level 3 or higher (the threshold for moving beyond purely linear problem-solving), compared with 47.6% of Russian, 51.3% of American and 66.9% of Australian students. Is it really then surprising to discover that from 1997 to 2007 purchasing power GDP per capita in Brazil and Russia, both medium-income countries, has grown at 1.3% and 6.0%, respectively, i.e., that Russia is playing the game of economic catch-up much more successfully?

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