We are living in the age of the technocrats. In business, Big Data, and the Big Brains who can parse it, rule. In government, the technocrats are on top, too. From Washington to Frankfurt to Rome, technocrats have stepped in where politicians feared to tread, rescuing economies, or at least propping them up, in the process.
Technocrats are in vogue within the intelligentsia, too. It is well nigh impossible to pick up a book about any social or political issue nowadays (including, I hasten to admit, my own) without coming across some data-heavy social science research. And the familiar pleas for common sense and a centrist approach, free from the taint of ideology, usually boil down to a call to put the technocrats in charge.
Technocrats have a lot to recommend them. We do, after all, live in the age of Big Data, and ignoring it or not being able to use it is a sure path to either bankruptcy or humiliation – witness the data jock extraordinaire Nate Silver and his legendary smackdowns of columnists who rely on anecdote and intuition.
But, particularly in the wake of 2008, a global crisis that technocrats both helped cause and failed to predict, there are also sound reasons not to rely mechanically on technocratic solutions. That’s why it is worth reading a new paper by Daron Acemoglu of the Massachusetts Institute of Technology and James Robinson of Harvard University.
In their seminal 2012 book, “Why Nations Fail,” Acemoglu and Robinson offered a powerful new framework for understanding why some societies thrive and others decline – those based on inclusive growth succeed, while those where growth is extractive wither.