Infamous Summers’ Memo

Monday, February 28, 2005
Infamous [Lawerence] Summers’ Memo

Anyone who believes that Harvard as a supposed “institution of higher learning” has any value need only consider that George W. Bush managed to get an MBA from there (after getting in as a “legacy” which is “affirmative action” for rich in-bred white people) and that the president of Harvard is Lawrence Summers who wrote the following memo that could have been written by Adolf Eichmann.

The Memo

DATE: December 12, 1991TO: DistributionFR: Lawrence H. SummersSubject: GEP
‘Dirty’ Industries:

Just between you and me, shouldn’t the World Bank be encouraging MORE migration of the dirty industries to the LDCs [Less Developed Countries]? I can think of three reasons:

1) The measurements of the costs of health impairing pollution depends on the foregone earnings from increased morbidity and mortality. From this point of view a given amount of health impairing pollution should be done in the country with the lowest cost, which will be the country with the lowest wages. I think the economic logic behind dumping a load of toxic waste in the lowest wage country is impeccable and we should face up to that.

2) The costs of pollution are likely to be non-linear as the initial increments of pollution probably have very low cost. I’ve always though that under-populated countries in Africa are vastly UNDER-polluted, their air quality is probably vastly inefficiently low compared to Los Angeles or Mexico City. Only the lamentable facts that so much pollution is generated by non-tradable industries (transport, electrical generation) and that the unit transport costs of solid waste are so high prevent world welfare enhancing trade in air pollution and waste.

3) The demand for a clean environment for aesthetic and health reasons is likely to have very high income elasticity. The concern over an agent that causes a one in a million change in the odds of prostrate cancer is obviously going to be much higher in a country where people survive to get prostrate cancer than in a country where under 5 mortality is is 200 per thousand. Also, much of the concern over industrial atmosphere discharge is about visibility impairing particulates. These discharges may have very little direct health impact. Clearly trade in goods that embody aesthetic pollution concerns could be welfare enhancing. While production is mobile the consumption of pretty air is a non-tradable.

The problem with the arguments against all of these proposals for more pollution in LDCs (intrinsic rights to certain goods, moral reasons, social concerns, lack of adequate markets, etc.) could be turned around and used more or less effectively against every Bank proposal for liberalization.

Postscript

After the memo became public in February 1992, Brazil’s then-Secretary of the Environment Jose Lutzenburger wrote back to Summers: “Your reasoning is perfectly logical but totally insane… Your thoughts [provide] a concrete example of the unbelievable alienation, reductionist thinking, social ruthlessness and the arrogant ignorance of many conventional ‘economists’ concerning the nature of the world we live in… If the World Bank keeps you as vice president it will lose all credibility. To me it would confirm what I often said… the best thing that could happen would be for the Bank to disappear.”

Sadly, Mr. Lutzenburger was fired shortly after writing this letter.

Mr. Summers, on the other hand, was appointed the U.S. Treasury Secretary on July 2nd, 1999, and served through the remainder of the Clinton Admistration. Afterwards, he was named president of Harvard University.

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About jimcraven10

About jimcraven10 1. Citizenship: Blackfoot, U.S. and Canadian; 2. Position: tenured Professor of Economics and Geography; Dept. Head, Economics; 3. Teaching, Consulting and Research experience: approx 40 + years all levels high school to post-doctoral U.S. Canada, Europe, China, India, Puerto Rico and parts of E. Asia; 4. Work past and present: U.S. Army 1963-66; Member: Veterans for Peace; former VVAW; Veterans for 9-11 Truth; Scholars for 9-11 Truth; Pilots for 9-11 Truth; World Association for Political Economy; Editorial Board International Critical Thought; 4.. U.S. Commercial-Instrument Pilot ; FAA Licensed Ground Instructor (Basic, Advanced, Instrument and Simulators); 5. Research Areas and Publications: International law (on genocide, rights of nations, war and war crimes); Imperialism (nature, history, logic, trajectories, mechanisms and effects); Economic Geography (time and space modeling in political economy; globalization--logic and effects; Political Economy and Geography of Imperialism); Indigenous versus non-Indigenous Law; Political Economy of Socialism and Socialist Construction; 6. Member, Editorial Board, "International Critical Thought" published by the Chinese Academy of Social Sciences; International Advisory Board and Columnist 4th Media Group, http://www.4thMedia.org (Beijing); 7. Other Websites publications at http://www.aradicalblackfoot.blogspot.com; wwwthesixthestate.blogspot.com;https://jimcraven10.wordpress.com; 8.Biography available in: Marquis Who’s Who: in the World (16th-18th; 20th; 22nd -31st (2014) Editions); Who’s Who in America (51st-61st;63rd-68th(2014) Editions); Who’s Who in the West (24th- 27th Editions);Who’s Who in Science and Engineering (3rd to 6th, 8th, 11th (2011-2012) Editions); Who’s Who in Finance and Industry (29th to 37th Editions); Who’s Who in American Education (6th Edition). ------------------- There are times when you have to obey a call which is the highest of all, i.e. the voice of conscience even though such obedience may cost many a bitter tear, and even more, separation from friends, from family, from the state, to which you may belong, from all that you have held as dear as life itself. For this obedience is the law of our being. ~ Mahatma Gandhi
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