Yes I think that Summers was wrong. Extending his logic, companies should take even fewer steps to mitigate pollution in industrial practices in poor countries than they do in rich countries, because the economic costs of doing so are lower in poor countries and because it’s probably cheaper and therefore more economically efficient to not mitigate pollution. He even says in the memo that moral reasons and social concerns could be invoked to oppose his line of reasoning, which seems relevant to people who claim to want to do good in the world, not just maximize a narrow understanding of economic productivity.
What that can look like in practice is what Texaco did in Ecuador. I’m not claiming a direct causal link between the Summers’ memo and Texaco’s actions. I’m simply saying that when intellectual elites make arguments that it’s okay to pollute more in poor countries, we shouldn’t be surprised when they do so.
Are you implying that Larry Summers was wrong or that Texaco’s actions were somehow his fault?
Yes I think that Summers was wrong. Extending his logic, companies should take even fewer steps to mitigate pollution in industrial practices in poor countries than they do in rich countries, because the economic costs of doing so are lower in poor countries and because it’s probably cheaper and therefore more economically efficient to not mitigate pollution. He even says in the memo that moral reasons and social concerns could be invoked to oppose his line of reasoning, which seems relevant to people who claim to want to do good in the world, not just maximize a narrow understanding of economic productivity.
What that can look like in practice is what Texaco did in Ecuador. I’m not claiming a direct causal link between the Summers’ memo and Texaco’s actions. I’m simply saying that when intellectual elites make arguments that it’s okay to pollute more in poor countries, we shouldn’t be surprised when they do so.