HKS Professor Ricardo Hausmann, the director of the Kennedy School’s Center for International Development, explains the concept of economic complexity and why it has become a reliable predictor of future economic growth. He also discusses the Atlas of Economic Complexity, an interactive website that could help entrepreneurs and policymakers see where a particular country’s economy is heading. This interview was originally recorded in 2013.

177 Exploring the Atlas of Economic Complexity

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HKS Senior Lecturer Linda Bilmes, an expert on public finance who has studied post-9/11 war costs for the past 20 years, says their staggering $5 trillion cost was enabled by what she calls “The Ghost Budget.” Using an unprecedented combination of borrowing, accounting tricks, and outsourcing, presidential administrations, Congress, and the Pentagon were able to circumvent traditional military budget processes in a way that kept war costs out of the public debate and resulted in trillions being spent with minimal oversight. The result: corporations and wealthy investors raking in huge profits, massive waste and fraud, and—combined with the Bush and Trump tax cuts—a shifting of the burden of the costs of war away from the wealthy and onto middle- and lower-income people and future generations. Of course by any metric, the United States-led wars in Afghanistan and Iraq were costly. Human life? At least 430,000 Iraqis, Afghans, and Pakistani civilians dead, along with more than 7,000 U.S. military personnel and thousands of civilian contractors. Democratic progress? Afghanistan is once again an authoritarian theocracy under the Taliban, and instead of transforming Iraq and the region, the U.S. invasion and occupation undermined popular sentiment toward democracy, unleashed sectarian violence, and strengthened autocratic regimes. But the budgetary problems are something we can address now, Bilmes says, with congressional reforms and planning prudently for the long-term costs of the wars, including caring for veterans. “The Ghost Budget” is also the title of Bilmes’ next book, which will be published next year.

The Ghost Budget: How U.S. war spending went rogue, wasted billions, and how to fix it

Harvard Kennedy School Professor Rana Mitter and Harvard Business School Associate Professor Meg Rithmire say that after decades of tremendous growth, an economically slowing China is the new normal. With a growing debt-to-GDP ratio, an aging population, a devastating real estate bubble, and a loss of confidence among both foreign investors and domestic consumers, Chinese President Xi Jinping and the Chinese Communist Party face a daunting array of thorny problems—including ones of their own making resulting from the One Child law policy and other home-grown policies. So how should the United States and other Western countries respond?  Is it a moment China's rivals can use to their advantage, or one where great power rivalry can give way to great power cooperation? And how will an economic slowdown affect China’s geopolitical ambitions, and is an annexation of Taiwan now more or less likely? Rana Mitter is a historian and the S.T. Lee Chair in U.S.-Asia relations at the Kennedy School and the former director of the China Center at Oxford University. Harvard Business School Associate Professor Meg Rithmire is a political scientist who studies the comparative political economy of development in Asia and China’s economic relations with the rest of the world, particularly the United States. They join host Ralph Ranalli to explore some of the underlying reasons behind for the country’s current malaise, and to offer some policy ideas to help create a positive outcome with relations with China moving forward.

The Great Creep Backward: Policy responses to China’s slowing economy

Former U.S. Ambassador to Israel Ed Djerejian says Israeli Prime Minister Yitzak Rabin once told him “There is no military solution to this conflict, only a political one.” Rabin was assassinated a few years later and today bullets are flying, bombs are falling, and 1,200 Israelis are dead after the Hamas terrorist attacks of October 7 and nearly 30,000 Gazans have been killed in the Israeli response. Yet Djerejain still believes that a breakthrough is possible even in the current moment, as horrible as it is. Djerejian, a senior fellow at Harvard Kennedy School’s Belfer Center for Science and International Relations, says the crisis has shaken the regional status quo to the point where—if the United States pursues diplomacy that includes principled pragmatism, coalition-building, and good old- fashioned backbone—a breakthrough may finally be possible. But in a recent paper he argues that any breakthrough will have to be built around a two-state solution, which he says is the only path to peace and stability not only in Israel and Palestine, but the wider Middle East. Djerejian’s career as a diplomat spanned eight U.S. presidential administrations beginning with John F. Kennedy’s, and he also served as U.S. Ambassador to Syria and Assistant Secretary of State for Near Eastern Affairs.

Two peoples. Two states. Why U.S. diplomacy in Israel and Palestine needs vision, partners, and a backbone

As our discourse and our politics have become both more polarized and paralyzed, Harvard Kennedy School faculty members Erica Chenoweth and Julia Minson say we need to refocus on listening to understand, instead of talking to win. In mid-2022, the School launched the Candid and Constructive Conversations initiative, based on the idea that frank yet productive discussions over differences are not only vital to democracy and a functioning society, but that the ability to have them was also an essential skill for students, staff, and faculty in the Harvard community and beyond to learn. The effort—which uses techniques and principles based on surveys and decision science—took on even greater urgency after the recent events in Israel and Gaza and their fallout in the U.S., including at Harvard and other universities. Erica Chenoweth is the Frank Stanton Professor of the First Amendment and the academic dean for faculty Engagement at HKS, as well as one of the world’s leading authorities on conflict and alternatives to political violence. Associate Professor of Public Policy Julia Minson is a decision scientist who studies the psychology of disagreement, and has developed research-based, practical methods that nearly anyone can use to make difficult conversations into productive ones.

We can productively discuss even the toughest topics—here’s how

Harvard Kennedy School Professor Kathryn Sikkink and former longtime Human Rights Watch executive director Kenneth Roth have spent years studying the transformational effects of the Universal Declaration of Human Rights and have worked on the ground to make its vision of a more just, equal world a reality. On December 10th, the world celebrated not only the annual Human Rights Day, but also the 75th anniversary of the UDHR, which some historians and social scientists consider to be the greatest achievement in the history of humankind. It was the first time representatives of the world community declared that every human person on earth was entitled to the same rights as every other, without discrimination, and no matter the circumstances. 
It was an achievement that was both historically radical—legal slavery in the United States had ended just 80 years earlier—and yet one which made perfect, urgent sense in the post-World-War-II context of a humanity whose collective conscience was still reeling at the horrors and inhumanity of conflict. Appalled by the dehumanization and mass slaughter of human beings in the Holocaust, where 6 million Jews were exterminated by the Nazis along with Poles, Roma, homosexuals and other groups, by Japanese atrocities including 2.7 million people murdered in Northern China alone, by the first use of atomic weapons, and by other acts of mass civilian killing, the world’s nations gathered to write a new definition of what it means to be human. 
The result was the UDHR, which was drafted by a committee led by former U.S. first lady Eleanor Roosevelt. It was radical not just because it was so universal, but also because it was remarkably comprehensive—going far beyond basics like life, liberty and the pursuit of happiness to enumerating human rights to privacy, health, adequate housing, freedom from torture and slavery, the right to nationality, to take part in government, to work for equal pay, to have protection against unemployment, to unionize, to a decent standard of living, to rest and leisure, to enjoy culture, art, and science, and finally to a social and international order where the rights in the Declaration could be fully realized. ikkink is a faculty affiliate of the Carr Center for Human Rights Policy at HKS, where Roth just finished a senior fellowship. They join PolicyCast host Ralph Ranalli to explain how the UDHR has forever changed the way we think about our fellow human beings, and to suggest policies that will keep pushing the global community toward a more just, fair, and compassionate world.

177 Exploring the Atlas of Economic Complexity

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