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The Economics of International Development: Foreign Aid versus Freedom for the World's Poor

The Economics of International Development: Foreign Aid versus Freedom for the World's Poor

William Easterly | Sylvie Aboa-Bradwell | Christian Bjørnskov | Abigail Hall-Blanco

(2016)

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Abstract

Foreign aid and overseas military intervention have been important and controversial political topics for over a decade. The government’s controversial target to spend 0.7 per cent of national income on foreign aid has been widely welcomed by some, but strongly criticised by others. Furthermore, the controversy of the Iraq war rumbles on, even today. This is all happening amongst much instability in many parts of the world. In this short book, a number of authors challenge the assumption that we can bring about economic development and promote liberal democracies through direct foreign intervention – whether economic or military intervention. The lead author, William Easterly, drawing on his wide experience at the World Bank and as an academic, is a renowned sceptic of intervention. He points out that solutions proposed now to the problem of poverty are identical to solutions proposed decades ago – but the plans of rich governments simply do not successfully transform poor countries. Academics Abigail Hall-Blanco and Christian Bjornskov add further context and put forward empirical evidence that backs up Easterly’s argument. Syvlie Aboa-Bradwell draws upon her own practical experience to give examples of how people in poor countries can be assisted to promote their own development. This book is essential reading for students, teachers and all interested in better understanding how to help – and how not to help – the world’s most disadvantaged peoples.

Table of Contents

Section Title Page Action Price
Table 1\tTechnocratic solutions to poverty 1938 and 2005 7
Figure 1\tNumber of African leaders by type 13
Figure 2\tDevelopment in Botswana, Zambia and Zimbabwe relative to the US 57
The authors viii
Foreword xi
Acknowledgements xvii
Summary xviii
Tables and figures xxi
1\tThe tyranny of experts: foreign aid versus freedom for the world’s poor 1
William Easterly 1
Technocrats and the failure of development policy 1
The importance of ‘rights’ 7
Making progress on economic freedom and political rights 11
What should we do to end poverty? 15
2\tQuestions and discussion 17
3\tWilliam Easterly’s political economy of intervention 34
A commentary on William Easterly’s lecture 34
Abigail R. Hall-Blanco 34
Introduction 34
Hayek, the knowledge problem and economic calculation 37
Buchanan, public choice and development 42
Easterly’s critique and the example of military intervention 45
Conclusion 48
References 50
4\tEasterly’s challenge to the development community 55
A commentary on William Easterly’s lecture 55
Christian Bjørnskov 55
Introduction 55
A background for the critique 56
Easterly’s main argument 60
What is missing in Easterly’s argument? 64
Which way next? 68
References 70
5\tEntrepreneurship, social engagement and African development in the twenty-first century 73
A commentary on William Easterly’s lecture 73
Sylvie Aboa-Bradwell 73
Introduction 73
Background and vision 77
Challenges 80
Achievements 82
Lessons and recommendations 84
Conclusion 86
References 88
About the IEA 90