Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

BOOK REVIEW - THE BOTTOM BILLION

WHY THE POOREST COUNTRIES ARE FAILING AND WHAT CAN BE DONE ABOUT IT
by

Sudeeptha Yalla

on 16 September 2014

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of BOOK REVIEW - THE BOTTOM BILLION

Book Review
BY

SUDEEPTHA YALLA
LATROBE ID: 17980706
SUBJECT: SOCIAL AND
CULTURAL PERSPECTIVE
MASTERS IN PUBLIC HEALTH
LATROBE UNIVERSITY
THE BOTTOM BILLION


INTRODUCTION
INTRODUCTION

KEY POINTS

CRITICAL ANALYSIS

RECOMMENDATIONS

QUESTION

OVERALL SOCIAL CONTRIBUTION
BOOK REVIEW
OBJECTIVES
PART 3: GLOBALIZATION TO THE RESCUE
CRITICAL ANALYSIS
TRADE POLICY FOR REVERSING MARGINALIZATION
PAUL COLLIER
FIRST PART: THE ISSUE
KEY POINTS:
PART 2: TRAPS OF DEVELOPMENT
THE CONFLICT TRAP

FOR THE PAST FOUR DECADES THE DEVELOPMENT CHALLENGE HAS BEEN RICH WORLD OF 1 MILLION PEOPLE FACING POOR WORLD OF 5 BILLION PEOPLE

ABOUT 80% OF THE 5 BILLION PEOPLE LIVE IN DEVELOPING COUNTRIES.

THE REAL CHALLENGE OF DEVELOPMENT IS THERE ARE A FEW COUNTRIES AT THE BOTTOM BILLION THAT ARE FALLING BEHIND AND OFTEN FALLING APART.






PART 5: STRUGGLE OF BOTTOM BILLION
MOBILIZING CHANGES IN TRADE POLICY:
TEMPORARY PROTECTION OF BOTTOM BILLION FROM ASIA

PROBLEM OF COORDINATION:
AID IS OVER RELIED, EVEN IF THE AID IS DOUBLED IT CANNOT RESOLVE THE PROBLEM OF BOTTOM BILLION. ALL THE 3 OTHER INSTRUMENTS SECURITY, TRADE AND STANDARDS NEED TO BE COORDINATED.

FOCUS:
GOVERNMENTS OF THE COUNTRIES OF BOTTOM BILLION NEED TO BECOME MORE AMBITIOUS AND DEVELOP STRATEGIES APPROPRIATE FOR THEIR CIRCUMSTANCES.

WHAT CAN ORDINARY PEOPLE DO?
AID JUST CANNOT SOLVE PROBLEMS. WE NEED WIDE RANGE OF POLICIES.
AS ORDINARY CITIZENS WE NEED TO LEARN RANGE OF POLICIES NEEDED FOR THE BOTTOM BILLION
HOW THINKING NEEDS TO BE CHANGED?

1. DEVELOPMENT PROBLEM IS THE FOCUSSED PROBLEM OF AROUND A BILLION PEOPLE IN COUNTRIES THAT ARE STRUCK.
2. WITHIN THE BOTTOM BILLION COUNTRIES, THERE IS A STRUGGLE BETWEEN BRAVE TRYING TO ACHIEVE CHANGE AND GROUPS WHO OPPOSE THEM.
3. WE DO NOT NEED TO BE BYSTANDERS. OUR SUPPORT CAN BE DECISIVE..

Patricia Polacco - Author

AID AND BAD GOVERNANCE:
AID CAN HELP TURNAROUNDS AS INCENTIVES, SKILLS, AND REINFORCEMENT. USE OF AID AS INCENTIVE FOR POLICY IMPROVEMENT IS KNOWN AS
POLICY CONDITIONALITY.

COLLIER SUGGESTS
GOVERNANCE CONDITIONALITY
- SHIFT POWER FROM GOVERNMENTS TO THEIR OWN CITIZENS.

AID AS PROVIDING SKILLED PEOPLE TO FAILING STATES FOR TURN AROUND IS CALLED
TECHNICAL ASSISTANCE.
(1/4 OF TOTAL AID) AND IS EFFECTIVE ONCE TURNAROUND HAS STARTED.
CRITICAL ANALYSIS

SEGAL(2008) ALTHOUGH COLLIER MAKES AN IMPORTANT DISTINCTION BETWEEN THE BOTTOM BILLION AND THE REST, HE TENDS TO OVERDRAW IT. THE DEVELOPING WORLD STILL HAS A LONG WAY TO GO BEFORE IT CATCHES UP WITH WESTERN LEVELS OF PROSPERITY. EVEN CHINA, WHICH IS SO MUCH TALKED ABOUT WITH ITS RAPID DEVELOPMENT OVER THE PAST FEW DECADES, WILL HAVE TO WAIT MANY MORE DECADES TO CATCH UP WITH THE WEST. THIS BOOK IS NOT ABOUT GLOBAL POVERY, AND THE TITLE IS MISLEADING. THE BOTTOM BILLION IS NOT THE POOREST BILLION PEOPLE IN THE WORLD BUT THE PEOPLE LIVING IN POOREST AND MOST STAGNANT COUNTRIES IN THE WORLD.

DANIEL BEN(2007) INDIA IS NOT ONE OF THE COLLIERS BOTTOM BILLION COUNTRIES AND THUS HE IGNORES THE REALITY THAT THERE ARE MORE PEOPLE LIVING BELOW THE POVERTY LINE IN INDIA ALONE THAN IN WHOLE OF AFRICA. HE FAILS TO ADDRESS THE PLIGHT OF THE VERY POOR WHO LIVE IN MODERATELY POOR COUNTRIES. HE IMPLAUSIBLY STATES THAT THE COST OF A CIVIL WAR IS "AROUND $64 BILLION," WITH NO EVIDENCE. HE ALSO PLACES TOO MUCH CONFIDENCE IN SIMPLE CORRELATION ACROSS COUNTRIES.


LAWS AND CHARTERS
QUESTIONS
WHY THE POOREST COUNTRIES ARE FAILING AND WHAT CAN BE DONE ABOUT IT
PROFESSOR OF ECONOMICS AND DIRECTOR OF CENTER FOR THE STUDY OF AFRICAN ECONOMICS AT OXFORD UNIVERSITY.

FORMER DIRECTOR OF DEVELOPMENTAL RESEARCH AT WORLD BANK AND ADVISOR TO BRITISH GOVERNMENTS COMMISSION ON AFRICA.

WINNER OF THE 2008 LIONEL GELBER PRIZE

ABOUT THE AUTHOR OF THE BOOK
PAUL COLLIER THROUGH THIS BOOK TAKES A DYNAMIC APPROACH OF THE PROBLEMS FACED BY THE BOTTOM BILLION, THE REASON WHY THEY ARE FALLING BEHIND AND WHAT CAN BE DONE ABOUT THIS.

THE ARGUMENTS COLLIER POINTS OUT ARE BASED ON CONCLUSIONS FROM HIS EXHAUSTIVE LIST OF PEER REVIEWED RESEARCH.

HE WAS SUCCESSFUL IN ANSWERING THE QUESTION STATED ON THE COVER OF BOOK.

THIS BOOK IS DIVIDED INTO 5 PARTS:

THE FIRST PART INTRODUCES THE ISSUES.

SECOND PART EXPLAINS THE TRAPS OF DEVELOPMENT.

THIRD PART EXPLAINS FACTOS OF GLOBALIZATION AND FOREIGN AID SYNDROME

FOURTH PART EXPLAINS THE INSTRUMENTS TO SOLVE THE ISSUES

FIFTH PART EXPLAINS THE AGENDA FOR ACTION
EVEN IN THE GOLDEN ERA OF 1990'S WHEN ALL THE COUNTRIES ARE DEVELOPING, THE INCOMES IN THE BOTTOM BILLION DECLINED BY 5%.

THERE ARE ABOUT 58 COUNTRIES THAT FALL INTO BOTTOM BILLION.

ABOUT 1 MILLION PEOPLE LIVE IN THESE COUNTRIES. 70% OF THESE ARE IN AFRICA. THE REST IN PLACES LIKE HAITI, BOLIVIA, CENTRAL ASIAN COUNTRIES, COMBODIA, YEMEN, BURMA AND NORTH KOREA AND COLLIER DESCRIBES THESE COUNTRIES AS AFRICA+

THE PER CAPITA INCOME OF THESE
COUNTRIES IS LESS THAN THAT
OF MOST RICH WORLD CITIES.



?
FEW DIFFERENCES BETWEEN DEVELOPING AND BOTTOM BILLION COUNTRIES
PERCAPITA INCOME
DATA IMPLIES THAT:

DURING 1970'S BB DIVERGED FROM DEVELOPING WORLD BY 2% A YEAR
IN 1980'S DIVERGED AT 4.4% A YEAR
IN 1990'S DIVERGED AT 5% A YEAR


COLLIER POINTS THE PROBLEM OF BOTTOM BILLION IN TERMS OF GROWTH RATES.

THESE COUNTRIES HAVE NEGATIVE GROWTH RATE.
THIS PROBLEM NOT ONLY BOTHERS THE PEOPLE IN BOTTOM BILLION INSTEAD IT MATTERS TO ALL OF US.

AS THE BOTTOM BILLION DIVERGES FROM THE WORLD ECONOMY, INTEGRATION WILL BECOME HARDER.

COLLIER SAYS THAT THE PROBLEM OF BOTTOM BILLION IS CONVOLUTED AND CRITICAL, BUT CAN BE FIXED.
COLLIER BELIEVES THAT BOTTOM BILLION COUNTRIES HAVE FALLEN INTO ONE OR MORE OF THE 4 TRAPS
THE FOUR TRAPS HE POINTS OUT ARE:

1. CONFLICT TRAP
2. NATURAL RESOURCE TRAP
3. LANDLOCKED COUNTRIES TRAP
4. BAD GOVERNANCE


CONFLICT TRAP
77%
NATURAL RESOURCE
TRAP
29%
LANDLOCKED COUNTRIES
30%
BAD
GOVERNANCE
76%
THE TWO FORMS OF POLITICAL CONFLICT - CIVIL WAR AND COUP D'ETAT CAN TRAP A COUNTRY IN POVERTY.
CIVIL WARS:

COLLIER ALONG WITH ANKE HOEFFLER EXPLAINED THE FACTORS UNDERLYING PRONENESS TO CIVIL WAR.

1. LOW LEVEL OF INCOME.
2. SLOW GROWTH/STAGNATION/DECLINE.
3. DEPENDENCE UPON PRIMARY COMMODITY EXPORTS.
THE CONFLICT TRAP

LOW INCOME COUNTRIES FACE HIGH RISK OF RELAPSE.

CIVIL WAR REDUCES GROWTH BY 2.3% A YEAR.

COST OF A TYPICAL WAR TO A COUNTRY AND NEIGHBOR CAN BE AROUND $64 BILLION.

COSTS OF THE WAR EVEN SPREAD BEYOND THE WARS TEMPORAL AND GEOGRAPHIC BOUNDARIES.

BREAKING THE CONFLICT TRAP AND COUP TRAP ARE NOT TASKS THAT THESE SOCIETIES CAN READILY ACCOMPLISH BY THEMSELVES.


THE END OF CIVIL WAR IS NOT JUST THE END OF CONFLICT, IT IS LIKELY TO RESTART.

NATURAL RESOURCE TRAP
DISCOVERY OF NATURAL RESOURCES CAN INCREASE PROSPERITY BUT SOMETIMES IT CONTRIBUTED TO CONFLICT TRAP.

RESOURCE CURSE/DUTCH DISEASE:

RESOURCE EXPORTS CAUSES COUNTRY'S CURRENCY TO RISE IN VALUE, THIS MAKES OTHER EXPORT ACTIVITIES UNCOMPETITIVE THAT MIGHT HAVE BEEN BEST VEHICLES FOR TECHNOLOGICAL PROGRESS.

RESOURCE REVENUE WORSENS GOVERNANCE
DUTCH DISEASE INCREASES THE EXCHANGE RATE
AND SALARIES, MAKING THE PRODUCTS COSTLY
AND LESS COMPETITIVE.


LANDLOCKED WITH BAD NEIGHBORS
COLLIER POINTS THAT ONE ASPECT OF GEOGRAPHY MATTERS FOR DEVELOPMENT.

BEING LANDLOCKED CLIPPED AROUND
HALF A PERCENTAGE POINT OFF THE
GROWTH RATE.


BAD GOVERNANCE IN A SMALL COUNTRY
ON MISSING THE BOAT

ALTHOUGH GLOBALIZATION HAS POWERED MAJORITY OF DEVELOPING COUNTRIES TOWARDS PROSPERITY, IT IS NOW HARDER FOR LATE COMERS.

THE 3 ASPECTS OF GLOBALIZATION:

1. TRADE AND THE BOTTOM BILLION:

80% OF DEVELOPING COUNTRIES NOW ARE MANUFACTURERS AND SERVICE EXPORTS - EQUITABLE AND RAPID DEVELOPMENT.

THERE IS FIRM RELOCATING FROM UNITED STATES, EUROPE TO ASIA DUE TO WIDE WAGE GAP.

NOW THAT ASIA HAS MANAGED TO ESTABLISH ITSELF ON THE SCENE BOTTOM BILLION COUNTRIES WLL HAVE TO WAIT LONGTIME FOR ITS TURN.

2. CAPITAL FLOWS AND THE BOTTOM BILLION:

BOTTOM BILLION COUNTRIES ARE SHORT OF CAPITAL. LABOUR FORCE OF BOTTOM BILLION NEEDS PRIVATE CAPITAL.


PRIVATE CAPITAL INFLOWS:

THE ONLY INFLOW OF PRIVATE INVESTMENT TO BOTTOM BILLION IS TO FINANCE THE EXTRACTION OF NATURAL RESOURCES.

COLLIER ALONG WITH CATHY PATTILO INVESTIGATED THE REASON WHY THE BOTTOM BILLION FAILED TO ATTRACT THE CAPITAL INFLOWS AND FOUND
1. PERCEIVED RISK OF INVESTMENT
2. VERY SMALL ECONOMY OF BB
3. POLICY IMPROVEMENTS ARE FRAGILE.

PRIVATE CAPITAL OUTFLOWS:
BOTTOM BILLION'S OWN CAPITAL FLOWS OUT OF THEM. MOSTLY ILLEGAL AND HIDDEN.
LOOSING CAPITAL PARTLY BECAUSE OF TRAPS.

3. MIGRATION AND THE BOTTOM BILLION:
MOST EDUCATED MIGRATED INTO DEVELOPING AND DEVELOPED COUNTRIES.
THE FLIGHT OF THE SKILLED PEOPLE MADE IT DIFFICULT FOR THE FAILING STATE TO TURNAROUND AND ESCAPE THE BAD GOVERNANCE TRAP

ADDING UP ALL THE BOTTOM BILLION COUNTRIES ARE FAILING TO CONVERGE.


PART 4 INSTRUMENTS
TO HELP THE BB COUNTRIES MAKE INTO GLOBAL ECONOMY THERE ARE SEVERAL INSTRUMENTS.
1. AID:

AID SPEEDS UP THE GROWTH PROCESS. OVER THE LAST 30 YEARS IT ADDED 1% TO THE ANNUAL GROWTH RATE OF BOTTOM BILLION.

COLLIER POINTS OUT THAT THE BIGGEST DEVIATION WAS THAT AID MOSTLY FROM THE EUROPEAN COMMISSION WAS GOING TO MIDDLE INCOME COUNTRIES RATHER THAN TO BOTTOM BILLION.

AID AND THE CONFLICT TRAP:

IN POST CONFLICT COUNTRIES AID HELPS TO INCREASE THE INCOME AND GROWTH THERBY BREAKING THE CONFLICT TRAP.

AID AND THE LANDLOCKED COUNTRIES:

AID IN THESE COUNTRIES IS TO IMPROVE THE TRANSPORT LINKS TO COASTS, BUT IT FAILED AS THE AID WAS SHIFTED FROM INFRASTRUCTURE TO SOCIAL PRIORITIES.

THE OTHER REASON BEING THE TRANSPORT LINKS DEPENDED ON NEIGHBORING COUNTRIES.



MILITARY INTERVENTION:

EXTERNAL MILITARY INTERVENTION HELPS SOCIETIES OF BOTTOM BILLION BY:

1. RESTORATION OF ORDER
2. MAINTAINING POST CONFLICT PEACE
3. PREVENTING AGAINST COUP


IN POST CONFLICT SITUATIONS BOTTOM BILLION COUNTRIES SPEND MORE ON MILITARY TO REDUCE FUTURE RISK.

40% OF MILITARY SPENDING IS FINANCED BY AID FROM WEST.




AID WORSENS THE PROBLEM OF TRADE BARRIERS.

TRADE LIBERALIZATION
IS ONE OF THE REMEDIES FOR DUTCH DISEASE, AND THE AMOUNT OF IT DEPENDS ON WHAT AID IS USED FOR.

THE SOLUTION TO THE BOTTOM BILLION TRADE IS
REGIONAL INTEGRATION.

BOTTOM BILLION NEEDS TO DIVERSIFY THEIR EXPORTS INTO LABOR USING MANUFACTURES AND SERVICES.

FOR THE BOTTOM BILLION TO BREAK INTO THESE MARKETS THEY NEED TEMPORARY PROTECTION FROM ASIA AND IT IS BY:

LOWERING THE TARIFFS ON GOODS FROM THE BOTTOM BILLION.

RICH COUNTRIES PUT MONEY INTO INTERNATIONAL DEVELOPMENT ASSOCIATION AND THIS IS DISTRIBUTED TO LOW INCOME COUNTRIES.

AT THE WHO THE BOTTOM BILLION HAVE TO BARGAIN.

AN AGENDA FOR ACTION:
IT IS OUR ROLE AS A CITIZEN TO PREVENT THE BOTTOM BILLION FROM FALLING APART. COLLIER NOW RELATES THE INSTRUMENTS TO TRAPS.

BREAKING CONFLICT TRAP:
AID- PHASED OVER A DECADE
SECURITY- EXTERNAL MILITARY PRESENCE.
CHARTERS - THERE IS NEED TO GET CHARTER PROMULGATED.

BREAKING NATURAL RESOURCE TRAP:
RESOURCE RICH BOTTOM BILLION COUNTRIES NEED - MILITARY ASSISTANCE.
LAWS AND INTERNATIONAL NORMS - NEED CHARTER LIKE THE REVISED VERSION OF EXTRA ACTIVE INDUSTRIES TRANSPARENCY INITIATIVE.

LIFELINES FOR LANDLOCKED:
AID - MORE EFFECTIVE AND ON SUBSTANTIAL SCALE.
ADHERE TO INTERNATIONAL CHARTERS ON DEMOCRACY AND BUDGET TRANSPARENCY

BREAKING REFORM IMPASSE IN FAILING STATE:
IN CASE OF BAD GOVERNANCE REFORMS HAS TO COME FROM WITHIN. INTELLIGENT AID IS REQUIRED.

BREAKING THE LIMBO:
FOR COUNTRIES THAT BROKE THE TRAPS -BIG PUSH AID THAT IS LARGE AND TEMPORARY SHOULD BE PROVIDED TO RAISE EXPORT INFRASTRUCTURE UPTO GLOBAL LEVEL.
INSTRUMENT CHARTER - ENCOURAGE PRIVATE INVESTMENT.
BOTTOM BILLION COUNTRIES NEED TO BE PROTECTED AGAINST ASIAN GAINTS.

WHO SHOULD MAKE IT HAPPEN:
AID AGENCIES: CONCENTRATE IN MOST DIFFICULT ENVIRONMENTS.
NEED TO ACCEPT MORE RISK
INCREASED PROJECT SUPERVISION.
INTERVENE STRATEGICALLY, FINANCE BIG PUSH STRATEGIES FOR EXPORT DIVERSIFICATION.
INTRODUCE GOVERNANCE CONDITIONALITY.

MOBILIZING CHANGES IN MILITARY INTERVENTION:
NOT ONLY US, BRITAN, FRANCE - ALL OTHER BIG COUNTRIES HAVE AN IMPORTANT ROLE TO PLAY.

MOBILIZING CHANGES IN OUR LAWS AND PROMULGATION OF INTERNATIONAL CHARTERS:
INTERNATIONAL CHARTERS POWERFUL FORCES FOR IMPROVING GOVERNANCE IN BOTTOM BILLION.
CHARTERS WOULD EMPOWER REFORMERS - ENABLE COUNTRIES AT EARLY STAGES OF TURNAROUND TO ROCK IN CHANGE.
CHARTER FOR POST CONFLICT GOVERNMENT- PROMULGATED BY PEACE BUILDING IN UN





CRITICAL ANALYSIS
TERRIBLE GOVERNANCE AND POLICIES - DESTROY ECONOMY, INFLATION OF OVER 1000% A YEAR

THE REASON WHY BAD GOVERNANCE IS PERSISTENT IN SOME COUNTRIES IS LEADERS OF POOREST COUNTRIES ARE THEMSELVES AMONG THE GLOBAL SUPER RICH.

MOREOVER IN THESE COUNTRIES THERE ARE ONLY FEW EDUCATED PEOPLE TO BRING THE REFORM.

COLLIER CALLED THE BOTTOM BILLION LOW INCOME COUNTRIES BELOW THE CUTOFF FOR GOVERNMENT AND ECONOMIC POLICIES FOR A CONTINOUS PERIOD OF 4 YEARS AS 'FAILING STATES'.


INCIPIENT TURNAROUND:
AN INCIPIENT REFORM WAS MORE LIKELY TO PROGRESS TO A SUSTAINED TURNAROUND IF THE COUNTRY HAD HIGHER INCOME, LARGER POPULATION, AND MORE EDUCATED PEOPLE.

COSTS OF NEGLECT: WHY IT MATTERS FOR G8 POLICY:
COLLIER ESTIMATED THE COST OF A SINGLE FAILING STATE OVER ITS ENTIRE HISTORY OF FAILURE TO ITSELF AND ITS NEIGHBORS IS AROUND $100 BILLION.
REMAINING 3/4 OF AID IS PROVIDED AS MONEY TO GOVERNMENTS FOR PROJECTS OR BUDJET SUPPORT.

AID CAN BE SPENT ON HELPING EXPORT SECTOR AND ON ACTIVITIES THAT HAVE A LARGE IMPORT CONTENT THERBY OFFSET DUTCH DISEASE.

AID IMPROVES OPPORTUNITIES FOR PRIVATE INVESTMENT, THERBY REDUCING CAPITAL FLIGHT.

AID IS NOT THE ONLY MEASURE FOR HELPING BOTTOM BILLION BUT IT IS THE EASIEST THING FOR THE WESTERN WORLD TO DO.
LIPTON (2008) POINTS OUT THAT ALTHOUGH COLLIER HAS POINTED OUT THERE ARE ABOUT 58 BB COUNTRIES. A FEW OF THEM ARE NAMED, IT IS UNCLEAR WHO EXACTLY THE 58 ARE. AND SO ONE CANNOT ASSESS OR CHECK SOME OF THE COLLIERS CLAIMS ABOUT THE BB. DESPITE THE APPARENT PRECISION OF THE PERCENTAGES WE NEVER LEARN EXACTLY WHICH COUNTRIES ARE IN EACH TRAP NOR THE PRECISION CRITERIA FOR ASSIGNMENT. COLLIER SOMETIMES USES CAUSALITY WHEN USING GDP OR ECONOMIC GROWTH WHICH IS VARIABLE. THERE ARE NO REPORTS OF ROBUSTNESS FOR THE CAUSALITY. AND THE BOOK OMITS LEVELS OF STATISTICAL SIGNIFICANCE, EXPLANATORY POWER AND DIAGNOSTIC TESTS. (P. 750-753)

REINERT, E. S.(2007) IT IS NOT OBVIOUS THAT COLLIER BOOK USES THE RIGHT CRITERIA FOR MEASURING SUCCESS. HE IMPLICITLY SETS UP MAXIMIZING OF WORLD TRADE AS A MEASUREMENT OF ECONOMIC SUCCESS



OSBORNE (2002) FOR INSTANCE, SPECIFICALLY EVALUATES THE RELATIONSHIP
BETWEEN PAST AID EFFORTS AND ECONOMIC GROWTH IN DEVELOPING
COUNTRIES AND CONCLUDES THAT AID HAS HAD A NEGATIVE EFFECT ON GROWTH.

OVASKA (2003) EMPIRICALLY DEMONSTRATED THAT “DECREASING THE LEVEL OF DEVELOPMENT AID MAY ACTUALLY HAVE A BENEFICIAL EFFECT ON GROWTH. (P. 184)

SACHS(2005) BELIEVES THAT POOR GOVERNANCE AND CORRUPTION ARE SYMPTOMS OF
EXTREME POVERTY; END EXTREME POVERTY AND YOU REDUCE CORRUPTION. SEE AID AS A SOLUTION TO ENDING POVERTY IN DEVELOPING COUNTRIES

EASTERLY(2006) THINKS THAT THE CAUSAL ARROW POINTS IN THE OPPOSITE DIRECTION;
POOR GOVERNANCE AND CORRUPTION ARE CORE PROBLEMS THAT MUST FIRST BE
OVERCOME. A GROWING BODY OF RESEARCH REJECTS THE SIMPLE NOTION THAT AID LEADS TO GROWTH

EASTERLY DOES, HOWEVER, THINK THAT THE WEST CAN DO A BETTER JOB OF SPENDING THE
RESOURCES IT COMMITS TO FOREIGN AID. HE ARGUES THAT AID ORGANIZATIONS CAN AND MUST SUPPORT MORE EFFECTIVE PROJECTS.




WHAT DO U THINK ARE THE FACTORS FOR THE FALL OF BOTTOM BILLION COUNTRIES?

IS AID REALLY EFFECTIVE?

WHAT ACCORDING TO YOU ARE THE OTHER MEASURES TO BE TAKEN TO HELP THE BOTTOM BILLION FROM FALLING APART?


REFERENCES:
COLLIER PROPOSES THE NOTION OF GLOBAL CHARTERS ON ISSUES SUCH AS NATURAL RESOURCE REVENUES, DEMOCRACY, BUDGET TRANSPARENCY, RECOVERY OF POST CONFLICT COUNTRIES AND INVESTMENT TO IMPEDE SUDDEN CAPITAL FLIGHT.

COLLIER SAYS THAT INTERNATIONAL CHARTERS COULD BE POWERFUL FORCES FOR IMPROVING GOVERNANCE.





Collier, P 2007a, The Bottom Billion: Why the Poorest Countries Are Failing and What Can Be Done About It, Oxford
University Press

Daniel (2007, July 20). Selling out the bottom billion. Spiked. Retrieved from spiked online database

Easterly, W 2006, The White Mans Burden: Why the Wests Efforts to Aid the Rest Have Done So Much Ill and So Little Good,
Penguin Press, New York.

John, A., & Storr, V. H. (2009). Can the West Help the Rest? A Review Essay of Sachs’ The End of Poverty and Easterly’s The
White Man’s Burden. The Journal of Private Enterprise, 25(1), 125-140.

Lipton, M. (2008). Bottom billion: Countries or people?. The Journal of Development Studies, 44(5), 750-760.

Ovaska, T. (2003). Failure of Development Aid, The. Cato J., 23, 175.

Reinert, E. S. (2007). How rich countries got rich... and why poor countries stay poor. London: Constable.

Sachs, J 2005, The End of Poverty: Economic Possibilities for Our Time, Penguin Books, New York.

Segal, P. (2008). The bottom billion: Why the poorest countries are failing and what can be done about it. Renewal : A
Journal of Labour Politics, 16(3), 152-154. Retrieved fromhttp://0search.proquest.com.alpha2.latrobe.edu.au/
docview/211506964?accountid=12001
THE CITIES THAT WERE CAPITALS OF LANDLOCKED COUNTRIES INCURRED HIGHER TRANSPORT COSTS.

TRANSPORT TO LANDLOCKED COUNTRIES DEPENDED ON ITS COASTAL NEIGHBOR TRANSPORT INFRASTRUCTURE.
COMPARED TO RESOURCE SCARSE LANDLOCKED COUNTRY, RESOURCE RICH LANDLOCKED COUNTRY HAVE CHANCE OF MAKING SUCCESS.

BEING BOTH RESOURCE SCARSE, LANDLOCKED AND HAVING NEIGHBORS WHO DO NOT HAVE OPPORTUNITIES CONDEMNS A COUNTRY TO SLOW GROWTH.

ABOUT 30% OF AFRICA'S POPULATION LIVES IN LANDLOCKED, RESOURCE SCARSE COUNTRIES.
Full transcript