There is an even better way, used in Latin America, Africa (and I suspect other developing countries). I've driven about 100,000 miles through 46 countries on those continents, I've had a lot of practice at what I call "Make it up driving"
The rule is, who cares if it's behind you. Do whatever the hell you want, because people behind you can see you and they will get out of your way. You can't easily see them, so don't concern yourself with them.
This does rely on ALL drivers being much more attentive than the average first-world driver.
If you want to be polite, or you're doing something really unexpected like stopping in the driving lane to let people off or reversing through traffic, you can just tap your horn a couple of times to say "Hey everyone, look at me", and everything will just flow around you.
It's amazing how well this works, even in the kind of insane free-flowing traffic most Westerners would utterly lose their minds in. I enjoy it much more because it makes driving way less boring, and you get to interact with all the other drivers too. I love too that when you come to a stop sign there is no need to stop - if all the other cars in your direction are already going you just go, and the drivers at right angles to you will compensate and watch and then their direction will go and flow sometime later. Red lights - no need to stop if there is no opposing traffic, etc. etc.
I don't have statistics, though in my almost 5 years of driving in these conditions I have never once seen a fender bender, and traffic really moves way better through intersections than in developed countries where people follow the stupid rules. (Highway driving is a different story in terms of crashes and deaths in developing countries)