Bill Gates on the Aid Debate

Critics are right to say there is no definitive proof that aid drives economic growth. But you could say the same thing about almost any other factor in the economy. It is very hard to know exactly which investments will spark economic growth, especially in the near term. However, we do know that aid drives improvements in health, agriculture, and infrastructure that correlate strongly with growth in the long run. Health aid saves lives and allows children to develop mentally and physically, which will pay off within a generation. Studies show that these children become healthier adults who work more productively. If you’re arguing against that kind of aid, you’ve got to argue that saving lives doesn’t matter to economic growth, or that saving lives simply doesn’t matter [3 Myths].

That is Bill Gates writing in his 2014 annual letter. If you haven’t read it yet, go ahead and read it. He makes some good points.

You should also read Jeff Sachs and William Easterly on their ongoing “debate.”

I think most reasonable people would agree that Sachs kind of oversold his big push idea in The End of Poverty. Or may be this was just a result of his attempt to shock the donor world into reaching the 0.7 percent mark in contributions. In any event it is unfortunate that the debate on the relative efficacy of aid left the pages of journal articles in its current form. It would have been more helpful if the debate spilled into the public in a policy-relevant form, with questions like: under what conditions does aid make a difference? What can we do to increase the efficacy of aid? What kinds of aid should we continue and what kinds should we abolish all together?

Obviously aid alone will not turn the Central African Republic into Denmark. It is also obvious that less corrupt governments do a better job of reducing infant mortality with aid money than their more corrupt counterparts. This is what policy-makers need to know, if they don’t already.

UPDATE: For more on this see Brett’s response to this post. And the BR forum on Making Aid Work.

Who is the African child on the cover of William Easterly’s new book?

ImageUPDATE: A reader, C. Mwangi, just brought to my attention this quote from William Easterly’s 2009 review of Dambisa Moyo’s Dead Aid.

Moyo is onto something important but, as she says, seldom discussed openly. One of development’s dark secrets is its still-influential origins in the “poor people are children” view, a view with a deeply rooted and very long history. The “development” metaphor was itself is a biological one: poor people “develop” from childhood (poverty) into adulthood (prosperity). Some of the signs of this mindset are subtle but unmistakable. Just think of who was pictured in the last glossy “aid to Africa” brochure you saw? I am willing to bet it was African children. As David Rieff said in his classic book A Bed for the Night, “There are two groups of people who like to be photographed with children: dictators and aid officials.” And of course, you don’t let children manage their own affairs; the adults must do it for them.

The rest of the review, originally meant for publication in the LRB, is available here.

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They say don’t judge a book by its cover, but if it wasn’t for Bill Easterly’s reputation for sound thinking on matters to do with Development, I would not have pre-ordered his upcoming book The Tyranny of Experts.

Seriously, as a new year resolution can we all promise never to fall into the temptation to include anonymous African children (invariably looking poor and shabby with flies on their faces or carrying guns, among other things) on the cover of books on poverty and development?

PLEASE? It is no longer good form (and never has been), especially coming from people who ought to know better. Were the boy’s parents or guardians consulted? Do they even know that their kid is on the cover of Easterly’s book?

The book title suggests that Easterly cares about the forgotten rights of the poor, yet the use of the cover image violates an important right of the poor: the right against unfair objectification. There is research out there suggesting that African states face an FDI inflow penalty simply because they are African. Images like these on the cover of books do not help the cause to reverse this reality.

To be fair (as a commenter pointed out to me on twitter) it is the publishers who decide these things to drive sales. But authors still have a right (and in my view, a duty) to ensure that this sort of stuff doesn’t happen.

I feel bad calling out Easterly on this because he is one of the more nuanced and very sane development economists/practitioners out there (and there are certainly far much worse instances of this phenomenon out there); but the habit of using a whole region and its peoples as shorthand for poverty, underdevelopment and dysfunction has to stop. And it starts with each and every one of us.

frustrations of the african intellectual

William Easterly on Aid Watch captures the frustrations of African intellectuals and their continued neglect by both the aid industry and their home governments.

African intellectuals continue to be on the periphery of the discourse on African socio-economic development. The independence leaders jailed, killed or exiled many of them, leading to fifty years of disastrous misrule and general mediocrity from Dakar to Mogadishu, Khartoum to Jo’burg. The current crop of autocrats and pretend-democrats did not learn a thing from the last half-century and continue to opt for career poverty-voyeurs development experts from donor countries instead of their own people who may have greater incentives to see their homeland match the achievements of the newly emerging states of Brazil, India and China.

William Easterly’s Burden

William Easterly continues his great crusade against the development establishment. I like his pitch for spontaneous development, but I remain skeptical of his quick dismissal of the role of the state in African development for two reasons:

1. The rest of the world has a massive head start which means that if the African entrepreneur is to survive the state must be there to provide the relevant public goods and some minimal protection from foreigners.

2. Let us not forget that stable societies are those in which capital and politics have a symbiotic relationship. The realities of the political economy of development are such that the state – and current holders of political power – must be brought on board if real and lasting development is to be achieved.

Also, check out Blattman’s Blog.