The End of Poverty, by Jeffrey Sachs (book review)Now all we Need is the Money!


We all want to end poverty and injustice.  It’s why I joined Peace Corps:  t do my part.  There are some small things  people can do that make a big difference.    The Grameen Bank was revolutionary.  However, where there is no local political will things get complicated, and unjust.  You can not give people power, They must take it.  Also,  you can’t do just 1 thing.

Worth  reading is Jeffrey Sachs book, The End of Poverty.  It’s much longer than it needs to be, but  he spends about half the book  justifying his credentials.  I have no problem with that.  He’s obviously an extremely talented economist.  He also managed to be in the right place at the right time to be able to earn his street cred.

When I originally hears about his Millenium Developement Goals, I thought he was very arrogant. This guy is, essentially, a jet setting  policy wonk, flitting all over the world and hob-nobbing with elites.  What could he possibly know about  poverty?  Well, he made a point to educate himself.  He understood, that for every  economic crisis he  helped fix, he caused other problems.    That was before he started addressing acute poverty.

What I particularly like about the book, and what absolutely everyone in the developed (that is, North America, Europe, much of Southeast Asia, and a few very wealthy islands) world should understand,is,  what he addresses on pages 252—255 in his Chapter 13:  Making the Investment Needed to End Poverty.  He justifies why governments need to make infrastructure and social investments that ultimately benefit us all.  That  create economic vitality.  That’s it. Bottom line.

The trouble is….the IMF and World Bank are still their own fiefdoms and supported,  for no logical reason, by donor countries, including the USA…And they still allow—heck—they FUND  corruption and mismanagement.

Sachs discounts the impact of corruption (it probably is only 20% of why there is poverty in Africa), and spends a decent part of this book explaining to  World Bank and IMF funders that if they  funded what is proven to work, instead of their cronies’ schemes,  all humans could have a decent standard of living—but they don’t give a shit.  Full stop.  However,  while he is excellent with the numbers, as an economist, he  believes the  amount of aid should be based on a country’s GNP.  In theory, that’s a great idea.  Unfortunately, for the developed world,  were there surplus GNP,  we’d be paying the debt for the  stupid wars we’ve engaged in, as well as the politicians/government workers unfunded pension plans.

Sachs then  expresses astonishment at the Bush era tax cuts to the wealthy, making the rich richer.   While he got the Gates Foundation, and a few other  compassionate uber-wealthy  donors on board—well, he didn’t get Mitt Romney, Paul Ryan, and a bunch of people who believe that capitalism is really about who dies with the most money. Otherwise, their greed & selfishness makes no sense.  I think that Sachs  realized he’s been working for the wrong team for too many years.

As a Returned Peace Corps Volunteer, working in Malawi, where hunger, chronic disease, and lack of political will destroyed a society, I agree with Sachs’ approach, and in fact, there are many small groups trying to help distinct communities. I  support several.  However, Sachs is right:  the capital is there.  Just not the political will.  & face it: our  ‘development’ policy, whether put forth by Republicans or Democrats, is to make the rich richer.

The late Wangari Maathai really did so much in Kenya, and her work was often sabotaged by the Kenyan government.  I  believe  Sachs gives too big a pass to the many  sub-Saharan governments he claims are well-managed, without addressing their political will.

If you don’t know anything about why so much of Africa is impoverished, this is a good read  to supplement much of what else is written about development economics. As Americans, we have to understand that  we have allowed our government to support war to benefit elites over  poverty  eradication which, ironically, would have gotten rid out our enemies for good more quickly.

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