An SOAS student was asked to answer this questionFebruary 24, 2016 Tim WorstallEconomics17 CommentsFDI has fostered inequality between countries and within countries. Srsly? Even for SOAS that’s a bit “heterodox” isn’t it? previousWell, yes, contracts work this waynextOdd thought. 17 thoughts on “An SOAS student was asked to answer this question” Luis Enrique February 24, 2016 at 5:08 pm I suspect I am missing your point. here are some IMF economists asking themselves the same question http://www.imf.org/external/pubs/cat/longres.aspx?sk=43718 Tim Worstall February 24, 2016 at 5:12 pm Err, Luis, “financial development” and “foreign direct investment” are not the same thing. Luis Enrique February 24, 2016 at 5:15 pm oh well then https://www.imf.org/external/pubs/ft/sdn/2015/sdn1513.pdf see para 31 Tim Worstall February 24, 2016 at 5:21 pm Yes, but between countries? jgh February 24, 2016 at 5:31 pm I see no question, all I see is a statement. A question has to have the verb reversed and end in a question mark. Luis Enrique February 24, 2016 at 5:33 pm answer there would be: FDI reduces inequality between countries. perfectly sensible exam question, if along lines of: Q1. evaluate the statement “FDI has fostered inequality between countries and within countries” often set exams where answer you are looking for is: no. Dennis the Peasant February 24, 2016 at 6:09 pm Actually, as jgh has noted, there was no question asked. Therefore, the correct response would run something like this: “Oh please do fuck off, you Jeremy Corbyn lovin’ twat of a Socialist. And while you’re at it, get a real job.” As to SOAS itself, nothing says you’re serious about combating inequality like having a Chancellor who is a princess, a Director who is a baroness, and a President who has a DBE… john77 February 24, 2016 at 6:15 pm @ Dennis Ah, but it’s not inequality when all the top jobs are held by women, only if 51% or more are held by men. Andrew M February 24, 2016 at 6:51 pm Russell Brand is apparently considering studying at SOAS. Says it all really. http://blogs.spectator.co.uk/2016/02/is-russell-brand-thinking-about-going-to-university/ john square February 24, 2016 at 7:06 pm I’m a former SOAS student: studied Chinese there in the nineties. Not many radicals there then, but the bar was a great place to buy weed jgh February 24, 2016 at 7:45 pm I studied Japanese in the 1980s when that was the Next Big Economy that was going to rule the world. Got a nice Japanese girlfriend out of it though. DP February 24, 2016 at 7:50 pm Dear Mr Worstall Does SOAS consider this a ‘problem’ that needs to be ‘solved’ or just an observation of the way things work? Successful investment will always foster inequality. It is inequality which drags everyone up. If there is no inequality, there is nothing to strive for, no incentive to strive and no incentive to invest. DP john malpas February 24, 2016 at 9:34 pm Why not say what SOAS is? As for the rest – Huh? -TOMIOS. MyBurningEars February 24, 2016 at 10:51 pm I read some lecture notes by a SOAS guy – economic geography iirc. He presents a Marxist economic analysis after spending a little while “disproving” neoclassical economics. For instance “homo economicus” is assumed to maximise profit …but we know real people are motivated by things other than profit! They are influenced by their religious or philosophical beliefs, their love for their family, their desire for personal happiness, need for leisure and to enjoy what they do, etc etc. Therefore conventional economics is a busted flush. MyBurningEars February 24, 2016 at 10:53 pm I wonder, during his undergrad, which lecture of Econ 101 the “utility function” first got mentioned. It is a reasonable guess that he stopped attending lectures the one before that. So Much For Subtlety February 25, 2016 at 12:27 am Andrew M – “Russell Brand is apparently considering studying at SOAS. Says it all really.” That reflects rather[*] well on SOAS. Let us know when they make him 0.2 of a Professor. [*]comparatively speaking anyway ken February 25, 2016 at 11:40 am I can see it as an exam question – the first part is a bit crap – since you can just answer it with a no. Or Tim could be right and there may be a nutjob in SOAS who thinks FDI increases inequality between countries. . If the former, a poor quality question, if the latter, evidence of nutjobs in academe. At a pinch, I suppose you could argue that countries that accept FDI become richer and countries that do not like Venezuela do not. Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.