The Elusive Quest For Growth

Why has an economy that has done so many things right failed to grow fast? Under-Rewarded Efforts traces Mexico’s disappointing growth to flawed microeconomic policies that have suppressed productivity growth and nullified the expected benefits of the country’s reform efforts. Fast growth will not occur doing more of the same or focusing on issues that may be key bottlenecks to productivity growth elsewhere, but not in Mexico. It will only result from inclusive institutions that effectively protect workers against risks, redistribute towards those in need, and simultaneously align entrepreneurs’ and workers’ incentives to raise productivity.

Argues that western foreign aid efforts have done little to stem global poverty, citing how such organizations as the International Monetary Fund and the World Bank are not held accountable for ineffective practices that the author believes intrude into the inner workings of other countries. By the author of The Elusive Quest for Growth. 60,000 first printing.

Why economists' attempts to help poorer countries improve their economic well-being have failed. Since the end of World War II, economists have tried to figure out how poor countries in the tropics could attain standards of living approaching those of countries in Europe and North America. Attempted remedies have included providing foreign aid, investing in machines, fostering education, controlling population growth, and making aid loans as well as forgiving those loans on condition of reforms. None of these solutions has delivered as promised. The problem is not the failure of economics, William Easterly argues, but the failure to apply economic principles to practical policy work. In this book Easterly shows how these solutions all violate the basic principle of economics, that people—private individuals and businesses, government officials, even aid donors—respond to incentives. Easterly first discusses the importance of growth. He then analyzes the development solutions that have failed. Finally, he suggests alternative approaches to the problem. Written in an accessible, at times irreverent, style, Easterly's book combines modern growth theory with anecdotes from his fieldwork for the World Bank.

In this "bracingly iconoclastic” book (New York Times Book Review), a renowned economics scholar breaks down the fight to end global poverty and the rights that poor individuals have had taken away for generations. In The Tyranny of Experts, renowned economist William Easterly examines our failing efforts to fight global poverty, and argues that the "expert approved" top-down approach to development has not only made little lasting progress, but has proven a convenient rationale for decades of human rights violations perpetrated by colonialists, postcolonial dictators, and US and UK foreign policymakers seeking autocratic allies. Demonstrating how our traditional antipoverty tactics have both trampled the freedom of the world's poor and suppressed a vital debate about alternative approaches to solving poverty, Easterly presents a devastating critique of the blighted record of authoritarian development. In this masterful work, Easterly reveals the fundamental errors inherent in our traditional approach and offers new principles for Western agencies and developing countries alike: principles that, because they are predicated on respect for the rights of poor people, have the power to end global poverty once and for all.

Top experts in the field discuss how to improve the effectiveness of foreign aid, proposing practical solutions to specific problems rather than a utopian master plan. The urgency of reducing poverty in the developing world has been the subject of a public campaign by such unlikely policy experts as George Clooney, Alicia Keyes, Elton John, Angelina Jolie, and Bono. And yet accompanying the call for more foreign aid is an almost universal discontent with the effectiveness of the existing aid system. In Reinventing Foreign Aid, development expert William Easterly has gathered top scholars in the field to discuss how to improve foreign aid. These authors, Easterly points out, are not claiming that their ideas will (to invoke a current slogan) Make Poverty History. Rather, they take on specific problems and propose some hard-headed solutions. Easterly himself, in an expansive and impassioned introductory chapter, makes a case for the “searchers”—who explore solutions by trial and error and learn from feedback—over the “planners”—who throw an endless supply of resources at a big goal—as the most likely to reduce poverty. Other writers look at scientific evaluation of aid projects (including randomized trials) and describe projects found to be cost-effective, including vaccine delivery and HIV education; consider how to deal with the government of the recipient state (work through it or bypass a possibly dysfunctional government?); examine the roles of the International Monetary Fund (a de-facto aid provider) and the World Bank; and analyze some new and innovative proposals for distributing aid. Contributors Abhijit Banerjee, Nancy Birdsall, Craig Burnside, Esther Duflo, Domenico Fanizza, William Easterly, Ruimin He, Kurt Hoffman, Stephen Knack, Michael Kremer, Mari Kuraishi, Ruth Levine, Bertin Martens, John McMillan, Edward Miguel, Jonathan Morduch, Todd Moss, Gunilla Pettersson, Lant Pritchett, Steven Radelet, Aminur Rahman, Ritva Reinikka, Jakob Svensson, Nicolas van de Walle, James Vreeland, Dennis Whittle, Michael Woolcock

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.