True Progress

It is a common conversation piece among those trying to understand how the world works: how did it come to be that Sub-Saharan Africa is far less developed than the rest of the contemporary world? While there is no one simple answer, there is an answer. One that involves several intertwining threads with some causes in the past and some existing today. This article points to 8 books that hold many of the keys to reaching an answer to this question, identifying the causes of the situation we see today, and hopefully sow the seeds of change for the future. Read the rest of this entry »

The End of Poverty: Economic Possibilities for Out Time by Jeffery Sachs, is an optimistic, forceful argument for the economic potential of developing countries and the necessity of increased in aid from rich countries to realize it.

Jeffrey Sachs is an accomplished macro-economist, currently at Columbia University, who has experience helping poor countries get on track to development. While, often described as left-leaning, he makes strong cases in favor of free-trade, market forces, and the role of the private sector in achieving economic development. He does often tout his own success regarding recommendations for economic reforms that enhanced development in impoverished. However, given the overall pessimistic attitude that many have towards real, subtantial economic development in these difficult places, I am not so sure it was out of place. Read the rest of this entry »

Development as Freedom, by Amartya Sen, winner of the Nobel Prize in Economics, provides a powerful argument that development and progress cannot be measured on the basis of economic output and consumption alone, that personal freedom is a very important and in some areas predominate variable in determining whether progress has been or will be made, and in defining what poverty truly is.

Amartya Sen chooses to describe poverty not as a lack of resources, but as a lack of freedoms. Those freedoms include choosing where to live and work, with whom to associate, freedom to choose our leaders and decide the rules we live by, and many others. This key point is useful in that it does not focus solely on maximization of wealth as a way out of poverty. The problem with poverty is not lack of money, but that lack of money means that people are not free to make their own way in life. They may be trapped being at the mercy of nature, an opressive government, or an economy cripled by bad policy. The conclusion therefore, is that money alone cannot fix the real problem. Government reform, economic liberalization, and the general increase of personal freedoms is the true end we are striving for. Increasing incomes is one of several necessary steps to be accomplished and not an end in and of itself. Read the rest of this entry »

The Elusive Quest for Growth: Economists’ Adventures and Misadventures in the Tropics by William Easterly is an honest answer to part of the question, “why hasn’t the world improved like we thought it would?” Easterly conducts a post-mortem conference on western aid programs since the end of World War II, finding that in many cases we should have known better. The incentives created by some nations’ economic environment, or the aid programs themselves led national economies into periods of stagnant or negative growth. Easterly’s mantra is “people respond to incentives.” Ignoring this truth, a central tenet of economics, has led to several irrational choices in the area of development aid, and many failures to achieve our objectives. Read the rest of this entry »