Parminder Bahra
Book your tickets now for exclusive Style events at Westfield London
Raymond Fisman is a super-sleuth who exposes economic gangsters, corrupt leaders and perpetrators of violence. There is a hint of Columbo about him, he of the odd squint and grubby raincoat, although not in sartorial inelegance but in his persistent questioning and rigorous analytical approach. And, surprisingly perhaps, he is not a cop. Mr Fisman is a development economist at Columbia Business School in New York.
Like many a good television sleuth (think Jessica Fletcher or Ellery Queen), he is also an author, even if there the similarity ends. He has written Economic Gangsters, Economic Corruption, Violence and the Poverty of Nations and in it he and co-author Edward Miguel trace the steps of the corrupt using not DNA or forensic science but data and statistics. Theirs is a testament to the truism that when you are looking for clues, follow the money.
The book gives half a dozen examples of how data can be used to find corrupt behaviour, particularly in developing countries. For example, the authors collected data on unpaid fines in New York by diplomats to see which countries had the most corrupt and the most honest representatives. The authors found that their analysis of parking fines bore a strong resemblance to the World Bank's corruption index for countries. Top of the Hall of Shame was a diplomat who averaged two parking violations a day.
It should be noted that there is an oddity here: what is equally amazing is that anyone bothered to pay for parking at all, since diplomats do not have to stump up such fines in New York so can park with abandon throughout the city.
While this may sound like an academic who is having fun with some data, there is a very serious side to Mr Fisman's work. He argues that “there are different kinds of evidence - not just statistics. The nice thing about data is if it is done right, it is relatively easy to see through when people are just trying to use data as a crutch for ideology. It just doesn't lie.”
As the world falls further into recession, Mr Fisman thinks that we need to keep an eye on all the money that is being handed out by the State to support the banks and other parts of industry: “The thing that I am interested in right now is who gets bailout money. The single biggest thing is the trillion-dollar bailout. You'd think we'd be interested in tracking how the money was used pretty carefully?”
The professor argues that there is insufficient collaboration between government and economists - he says that academics could really get their teeth stuck into the big issues if they shared their data more readily. He talks about a former research assistant working in the US's Federal Reserve who has got “better data than others ... This all goes back to the need for connections, the fact that I have someone in the Fed where he can get good data, even though in theory it's all public.”
Although Mr Fisman can turn his hand to most subjects, he is first and foremost a development economist. He is excited by microinsurance - insurance for people with very low incomes. For the academic, it is “the next frontier with potentially the biggest social gains”. He has uncovered bad practices that could be prevented with the help of microinsurance, he claims.
In one of the chapters of the book, the authors show how “witch killings” are related to crop failure. “These killings don't happen at random. Witch murders are overwhelmingly concentrated in years when bad weather and crop failure cause farm incomes to plummet.” The result is that older women are accused of being witches and murdered so that the others have a greater chance of surviving.
Microinsurance may offer a solution to this and many other problems that leave people in poverty. The small-value insurance schemes can be offered for the purposes of providing money that poor people can fall back on when they face an economic shock, a concept called “consumption smoothing”.
Understanding the incentives behind people's motives are at the core of Mr Fisman's approach. Like Columbo, Mr Fisman's incentives are to find out the truth - and, like the crumpled lieutenant, he usually has at least “one more question”.
Articles from our sister site WSJ.com:
You may be asked to subscribe to read certain articles
Industry sectors news at a glance. Interactive heatmap, video and podcast
Get ready for the winter sports season, with our resort guides and snow reports
We are backing British business, what is the confidence of the nation and what businesses are succeeding?
In this special section we explore a different way to enjoy Las Vegas
An island of beauty and contrast, this unspoilt Mediterranean isle is the perfect holiday destination
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
2008
£69,950
West Yorkshire
2009
£POA
Surrey
The best policy at the
best price
Be Wiser Insurance
£169,500
£60k - £70k + max £100k OTE
O2
London
C.200K PA+PERF. RELATED PAY
Wandsworth Borough Council
London
Competitive
MERC Partners
Ireland
£32,000 - £35,000 per annum
Cheltenham Festivals
Cheltenham
Enjoy an exquisite location at the foot of Diamond Head in a traditional Hawaiian beach house lifestyle.
£6,593,400 GBP
Award-winning riverside development, SW11.
Luxury apartments for sale from £350,000.
Find out more about our luxurious apartments and houses for sale in the heart of Sussex.
-30% off key ready properties in Cyprus with guaranteed fast and easy finance. Prices from 89,000 Euros!
Includes flights, private transfers and 9 nights’ accommodation with FREE breakfast and room upgrade in KL
Sail from Southampton on the Grand Princess & receive FREE onboard credit up to $200 plus free child places available.
£200 discount per couple on all packages for completed stays between 7th April-20th June 2010.
Chef, maid & babysitter easily arranged. Book with the specialists.
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Milkround
Copyright 2010 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.