Showing posts with label poverty. Show all posts
Showing posts with label poverty. Show all posts

Saturday, March 22, 2014

An Alternative Easterly Road to Development

Over the past century, global poverty has largely been viewed as a technical problem that merely requires the right “expert” solutions. Yet all too often, experts recommend solutions that fix immediate problems without addressing the systemic political factors that created them in the first place. Further, they produce an accidental collusion with “benevolent autocrats,” leaving dictators with yet more power to violate the rights of the poor.
In The Tyranny of Experts, New York University economics professor William Easterly, bestselling author of The White Man’s Burden, traces the history of the fight against global poverty, showing not only how these tactics have trampled the individual freedom of the world’s poor, but how in doing so have suppressed a vital debate about an alternative approach to solving poverty: freedom.
 Presenting a wealth of cutting-edge economic research, Easterly argues that only a new model of development—one predicated on respect for the individual rights of people in developing countries, that understands that unchecked state power is the problem and not the solution —will be capable of ending global poverty once and for all.

Review in the Wall St Journal  by Sarah Chayes
"Mr. Easterly's alternative to the autocrat-driven, technocratic model of development is simple: Apply abroad what we know has worked at home—bottom-up solutions, a free flow of ideas leading to innovative experiments and democratic politics."
Review by Geoff Lamb (who works for the Bill and Melinda Gates Foundation)
"It’s an odd jumble of a book."
Review by David Roodman
"Through choice quotes, an Easterly trademark, the book dramatizes how rife is the “technocratic illusion” in the development business today. In particular, the technocratic illusion “would capture Bill Gates and Tony Blair” and World Bank president Jim Kim."
"In sum, I think this book, like its predecessor, gets tripped up in places by ill-defined abstractions. Just as searchers and planners are usually the same (when Steve Jobs’s told his people to create the iPad, was that top-down planning or “spontaneous” problem solving by a market actor?), the phraseology in “tyranny of experts” tends to blur distinct groups. There are autocrats who adopt with various degrees of sincerity the rhetoric of centrally planned development and then use it to rationalize human rights violations. There are foreign institutions that collaborate with them, sometimes for the best humanitarian reasons, sometimes out of geo-realpolitik. There are the less-powerful human beings within those institutions, who are seemingly the “experts” and “economists” in this book’s title. I think it is a mistake to simply tar one group with the sins of another."
Hear it on Audible

Tuesday, April 2, 2013

A Trade-off Between Credit and Welfare

The Land of Too Much: American Abundance and the Paradox of Poverty, by Monica Prasad, presents a simple but powerful hypothesis that addresses three questions: Why does the United States have more poverty than any other developed country? Why did it experience an attack on state intervention starting in the 1980s, known today as the neoliberal revolution? And why did it recently suffer the greatest economic meltdown in seventy-five years?

Monica Prasad is Associate Professor of Sociology and Faculty Fellow in the Institute for Policy Research at Northwestern University.




"Prasad’s history leapfrogs from the early New Deal to the 1970s, when economic stagnation led both Republicans and Democrats to deregulate finance to make credit even more available. At this point, we come to the familiar tale of Americans taking on too much debt, leading to speculative bubbles and the 2008 financial meltdown.
"History is where Prasad’s book runs into problems."
Read a review in Finance & Development magazine.

Prasad in the New York Times

Harvard University Press

Saturday, March 30, 2013

The Damaging Effects of Global Inequality

World Bank economist Branko Milanović has a great introduction to global inequality in his The Haves and the Have-Nots: A Brief and Idiosyncratic History of Global Inequality. He uses history, literature, and stories straight out of today’s newspapers, to discuss one of the major divisions in our social lives: between the haves and the have-nots. 

Milanovic reveals just how rich Elizabeth Bennet’s suitor Mr. Darcy really was; how much Anna Karenina gained by falling in love; how wealthy ancient Romans compare to today’s super-rich; where in Kenyan income distribution was Obama’s grandfather; how we should think about Marxism in a modern world; and how location where one is born determines his wealth. 

He goes beyond mere entertainment to explain why inequality matters, how it damages our economics prospects, and how it can threaten the foundations of the social order that we take for granted.

The book, by the lead economist with the World Bank’s research division and one of the world’s leading experts on inequality, was discussed in a three part series in Think Progress:

Part 1:  Inequality: The Global View
Part 2: Five Things You Might Not Know About Inequality
Part 3: Why Rich People Hate Talking About Inequality

See also Finance & Development magazine on inequality.
         Branko Milanovic's article: More or Less
                                 podcast interview on inequality  
          IMF research: Andy Berg and Jonathan Ostry

Inequality may be hazardous to your growth
How inequality affects savings behavior

Branko Milanović talking about inequality research:



Monday, March 18, 2013

Democracy Pays Off

Why Nations Fail: The Origins of Power, Prosperity, and PovertyWhy Nations Fail: The Origins of Power, Prosperity, and Poverty by Daron Acemoğlu
My rating: 5 of 5 stars

A nation's poverty or prosperity may have as much to do with politics as economics, says Daron Acemoglu.

The MIT professor argues that more democratic countries with inclusive political institutions create sustained prosperity, while “extractive” authoritarian regimes lead toward poverty.

Acemoglu discusses why China is not the exception.

Listen to an interview with Acemoglu: http://www.imf.org/external/podcast/2...