% pop living on < $1/day

THE ENTERPRISE OF INTERNATIONAL DEVELOPMENT

28mar12 Nivi Rengenran, Michael Sieng, Sharon Amani

Think Again, Again.

First flyer = Whole world 1.16$ 2.83$

2nd Flyer = 1 girl

Sachs vs. Easterly Bottom up?

Top Down or

AID or no AID that is the question. or is it the question at all?

Think Again, Again.

A poor girl from Africa wont get to go to school for more than a few years even if she is brilliant, and most likely wont get nutrition she needs to be the world class athlete she could be or the funds to start a business for the great idea that she has.

Mosquito Nets in Malarial Zones

1.

If people must pay full price for bed nets, will they prefer to go without? If bed nets are given to them free or at some subsidized price, will people use them or will they be wasted? After getting the net at subsidized price once, will they become more or less willing to pay for the nets in the future if the subsidies are reduced?

2.

3.

Kennedy. A trap or not?

Planner Approach (Sachs) Searcher Approach (Easterly)

Along with the UN, the world Bank and the WHO + others wants to give away bed nets, computers, fertilizers for free. Poor governance and corruption is a function of extreme poverty

Opposed aid because it corrupts governments respect peoples freedom!

Poor governance and corruption causes extreme poverty

What do you think?

Do you agree with this?

No Poverty Trap Searcher Approach is appropriate

Or do you agree with this?

Poverty Trap

Multiple Equilibria

Need for a big push

Planner Approach is appropriate

Planner Approach: Millennium Development Goals (MDGs)

I.
II. III.

IV.
V. VI.

VII.
VIII.

Eradicate extreme poverty and hunger Achieve universal primary education Promote gender equity and empower women Reduce child mortality Improve maternal health Combat HIV/AIDS, malaria and other diseases Ensure environmental sustainability Develop a global partnership for development

e A P r i c e d

MDG Progress

Progress is uneven
Hunger

and poverty in sub-Saharan Africa (SSA) Gender equality in the Middle East Maternal mortality in SSA and Southern Asia
Access

to clean water target has been met Still need to check in on others

Searcher Approach:

Microfinance Kiva: Who they are, what they do, how they do it Critics

Searcher Approach: Kony2012

Invisible Children
Who

are they Mission

Marketing strategy Critics

http://www.bbc.co.uk/news/world-africa-17308913

Critiques of Planner and Searcher Approaches

Planner Approach

Seeker Approach

Paternalistic, Challenges in unintelligent, replication, dangerous coordination delusions Scale of problem Good intentions, lack of responsibility Lofty goals, dearth of implementable The distinction between planner and (successful) actions searcher programs is arbitrary.

Alternative Approaches

Institutions Why nations fail (Acemoglu & Robinson, 2012)

Successful

nations have inclusive and pluralistic

institutions Failed nations have extractive institutions Inclusive institutions: property rights, contract enforcement, low barriers to entry, competitive markets, democratic elections, written constitutions

What is Development?

More income? More things? More education? More happiness? More equity? Longer, healthier life?

Whose values?

Questions and Comments

Thank you for your attention and feedback