On the surface, this seems like a stage forward relationship; however, on closer examination, this goal may not be easily achievable or possible. William Russell Easterly a Professor of Economics at New York University and an American economist has been questioning the failure of development assistance through his article “Was Development Assistance a Mistake?” by challenging three main assumptions that demonstrate the progress of development assistance in poor countries. This critical review will summarize Easterly’s article and provide a critique about the strengths and weakness of his arguments.
The first false assumption that Easterly discusses is what actions achieve economic development. His overall claim is that development economists claim they know the methods, but they continually change their methods, because the development progress is not successful. From the 1950s to the 1970s, the poor countries were advised to increase GDP rate through increasing investment in both public and private sectors especially in infrastructures. However, loans to finance these projects cannot be repaid, so it resulted in two debts crisis in 1980s. Linked to this, the new method under the campaign “adjustment with growth” adjust by the experts of the IMF, the World Bank and the Post Washington Consensus was applied. Unfortunately, those adjustments are still inappropriate and contribute to almost zero
…show more content…
Easterly sufficiently challenges the uncertainty of the policies and the post Washington Consensus that made by economists for development growth. Conversely, Easterly’s assumption that aid has no effects on economic development is flawed because the evidence backing up his claim is unconvincing as well as some of them are invalid. Therefore, further reading is recommended in order for readers to find more different angles of the topic to promote better
Ever had that one friend? The one who tries to help, but no matter how hard he tries, he just aggravates the situation. This friend, Steve, insists he is helping, and those around, too, would support that he is indeed helping. But Steve is actually worsening the circumstances. He is like countries who provide foreign aid to less developed countries. Foreign aid, defined as “the international transfer of capital, goods, or services from a country or international organization for the benefit of the recipient country or its population,” can be military, economic, or humanitarian (“Foreign”). It is often granted to less developed countries in order to evoke government reforms or to stimulate economic growth. However, foreign aid neither elicits government reform, nor does it consistently and reliably stimulate economic growth; therefore, the United States should discontinue providing foreign economic aid.
On one side of the issue the supporters of developmental aid believe that the United States is doing more than a great job by offering economic assistance to countries that need help to develop. These individuals are aware of the unfortunate poverty levels in many countries abroad. They believe that it is the duty of the American people to help reduce the poverty levels in countries in which people live with less than a dollar a day. In fact, some supporters believe that the U.S. is not offering enough support to the poorer countries. Many have
After Watching The Voice of Ile a Morphil It can be concluded that developmental aid can be helpful in small doses but once brought onto a larger scale it can hurt the developmental country becoming a centripetal force. The reasons for this include the traditions of the cultures, the knowledge of the people regarding the use of this aid, and the underlying cause of the aid.
Riddell, Roger C. 2007. Does Foreign Aid Really Work? 1st ed. OXFORD: Oxford University Press, USA.
The main point of Banerjee and Duflo’s Poor Economics (2012) is that aid is neither good nor bad: there are instances where it can help greatly and instances where it can fail those it seeks to help(4). Aid is a powerful tool, therefore it’s imperative that we carefully select the right types of projects (Banerjee & Duflo, 2012, p. 4-5). Banerjee and Duflo (2012) present a few key points of action as a framework for approaching aid, with the broadest issue being the idea that too much responsibility is placed on the poor in making the most basic decisions (268-69). One example that Banerjee and Duflo (2012) offer is the fact that many of the poorest people don’t have sanitary water
For many years, the U.S. has cut back on its promised obligations and responsibilities to help the cause of development aid. Between 1990 and 1993, U.S. exports to developed countries grew by 6.2%. In contrast, during that same period, U.S. exports to developing countries grew by a remarkable 49.8%, yielding 46 billion dollars more and 920,000 jobs in the United States (Atwood). Assistance cuts hurt America’s
An innocent child begs her mother for food, a single tear running down her cheek. The fires of life that once filled the girl’s eyes slowly begin to fade. The mother embraces her child, tells her the pain will be gone within a few moments. As she holds her, she feels the warmth slip away; her little girl’s body becomes engulfed by empty coldness. So much could have been done to save that life, from local government support to foreign aid, yet not enough aid was given. And so, society is posed with the question of “How much aid should wealthy nations provide for developing countries?” This paper will look at the philosophy behind this question by analyzing two articles.
The arguments on aid have been seen largely from two perspectives: idealistic and realistic points of view. The idealist arguments are normative, with no real possibilities of assessing their validity. In contrast, evidence can be gathered to test the economic consequences of aid although different interpretations of the evidence are always possible and disagreements over the conclusiveness of the test are
In 1954, United States of America started to help developing countries by operating the new assistant program. America gave farm surpluses to developing countries and succeeded to stabilize farm prices. Later on, United States of America provided the biggest monetary help to developing nations. Especially in 2004, America accounted 54% of the world’s foreign aid. Also, since 2002, America is supporting more than 65 countries with more than two billion dollars in average. However, some people are criticizing about the American way of supporting developing nations. Since America gives developing nations money and food supplies, this can undermine developing nations’ self-reliance and make them wait for other nations to help them. Thus, America is finding ways to help developing nations to become independent economically. Some American organizations are even teaching them proper ways to farm and grow crops to help them become gradually
The question at hand is not whether aid from the developed north should be given at all, but whether or not it should be increased to help ease the suffering of the developing countries in the south. Every country, whether rich or poor, should have compassion for the suffering. However, it is not the duty of the developed north to completely take care of every developing country. In the present, there are serious problems that need to be addressed dealing with how aid is given out: misuse of funds by governments, the corruption it creates, economies it destroys, lack of votes it buys at the United Nations, and finally the question of who has priority.
According to William Easterly, the consensus on global development is an axiomatically wrong and ostentatious position. This is not new to Easterly, who spent a number of disenchanted years as a senior advisor at the World Bank. These tumultuous years would certainly help formulate Easterly’s austere perception of technocratic solutions to global poverty. Easterly’s contentious view of technocrats becomes a focused thesis in his book, The Tyranny of Experts. In this book, Easterly argues that poverty is not a “technical problem amenable to technical solutions” (Easterly 6). Instead, poverty is a manifestation of brutish leaders quashing the rights of individuals. While Easterly presents a cogent argument against top down development, the lack
The differences between standards of living in developed and developing nations have been made more evident by the rapid pace of technological innovation. Many world leaders consider the poor circumstances of developing nations to be tragedies that should be solved. Some altruistic organizations such as the World Bank have attempted to improve the conditions in developing nations through deliberate development, in which they would enable an all-encompassing plan aimed at efficiently reducing material suffering. However, in The Tyranny of Experts, Easterly argues that development approaches are flawed because they often emphasize material goods at the detriment of individual rights. Instead, he argues for giving developing nations the freedom to improve themselves by supporting democracy and personal rights. In explaining this idea, he comments on four aspects of the two differing methodologies: blank slate versus learning from history, nations versus individuals, conscious direction versus spontaneous solutions, and authoritarian rule versus free development.
Prior to doing the readings for this week, I did not know very much at all about foreign developmental aid. I only ever figured that foreign developmental aid was money that we provided to developing nations to help soothe poverty. After reading these articles, however, I now know that the intended goal of developmental aid is to alleviate poverty in the long-term, rather than as a short-term response. I also saw developmental aid as purely humanitarian, and never paused to consider that consequences of such aid, nor the possibility of the aid failing.
All human beings regardless of their background require a set of resources to survive. These are food, water, shelter and clothing in addition to this, healthcare, education and sanitation are also essential for a person’s wellbeing. In 1949 Truman’s Inaugural Address “we must embark on a bold new program for making the benefits of our scientific advances and industrial progress available for the improvement and growth of underdeveloped areas” raised awareness of the fundamental belief that countries that are far more developed should be assisting underdeveloped countries to improve their living standards. Aid is the giving of money, goods and advice by one country to another. The principle of giving and supporting others through “foreign aid” blossomed during the 1960’s, technological advances provided opportunities for televised reporting in the United States of inhumane situations in other “underdeveloped” countries. The idea of tackling poverty took hold and the UN and Bretton Woods Institutions (originally formed for post-war reconstruction) became mechanisms for action on development.
Foreign aid has a long track record. The biggest upside appears to be the injection of large sums of money into developing countries otherwise gripped by poverty, war and conflict. In theory, the funds should improve lives and raise people out of poverty, leading to sustainable growth and development. The unfortunate truth, however, is that foreign aid has often presented more challenges than opportunities to aid recipients. Aid has been mandated by government versus relying solely on private donations. We’ve seen small improvements across the globe, from reducing poverty to slowing population growth to curing and preventing diseases. Progress that otherwise would have been absent without an outpouring of foreign support (Tan Keo, 2013).