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What Is Easterly's Was Development Assistance A Mistake?

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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

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