foreign aid fosters corruption

citizens never see the aid. MAYBE 20 cents

crippling them to not create jobs

need to shift focus to searchers, local ideas can be scaled up, homegrown solutions.

BIG PLANS DONT WORK

can't start on development ladder w/out aid, needs reform

BIG SCALE PLANNING

aid is way to get out of poverty traps and cycles

Microfinancing

giving small loans to start little entrepenuers, get money back eventually

Grameen Bank

places with no regulation

behind the scenes

where does the jester seafood come from?

to deliver public goods"

Van Heerden on MNCs codes of conduct

global supply chains

Van Heerden

-Fiscal Discipline

-Trade Liberalization

-Privatization

Trade Related Investment Measures

there can't be any requirement to invest, hire or buy locally

Trade Related Aspects of Intellectual Property Rights

allows MNC to patent ntrl or biological materials

International Labor Org. would give preferential trade based on improved labor conditions

-requires monitoring

Who is less optimistic:

Heerden or Stiglitz

educating a family

Mortenson

b/c on microloans women tend to spend $$ on kids, men spend it on other things

- Network formation- one does it, i do too!

Income Redistribution- remittances!

-Agrarian Transformation- shifts rural communities because they are now dependent on migrants income they stop farming

Remittances- income but could be careless consumption

Human Capital- able to learn new skills, migration causes migration

Empowerment- people lead freer lives but migrant is in control of families life.

might have wage differences in 2 different countries which is why it starts

-migration doesn't always lead to development

Official Development Assistance 

big players give $$ directly to other govts so its hard to be accountable!

receipient govts of aid dont have administrative capacity to effectively use aid 

Sachs opposes this

random social experiments

ex/ 2 schools get breakfast 2 dont

Do it Yourself Aid

-he went in to that country but didn't know anything about finance

-provide jobs

-women's empowerment b/c they have better technical skills

-increase foreign income

-attract tourists

environmental hazards

most workers are poor

low living standards

social constructed roles/behavior

searcher

book= Pathologies of Power

making one country better at expense of another

Tragedy of the Commons 

restrict basic needs of the people

ex: privatization of water 

and Cochabamba

not a problem in the US b/c we have a constant flow of immigrants

# of births required to maintain static population

population changes as society makess $$$$$$ ;)

affects population and birthrate

everyone has access to same resource and they abuse it because no MONITORING

ex: pond in between two neighbors each say theyre gonna fish 10 fish a day but they both lieeee

distribute small loans to the poor to start businesses rather than giving donations.

loans require accountability!

Nancy Birdsol talks about 7 sins of foreign aid 

impatience: structural institutions (instant gratification)

envy: not working together

ignorance: didnt evaluate situation just throw money

pride: not admitting your failures

sloth: slavery (i give you money i tell you how to spend it)

greed: stingy ( i dont want to share)

foolishness: underfunding, giving $ to wrong place

MNCs are accountable

good rule of law (protecting prop rights, employees)

long term financial loans at below market value given to entrepenuers 

(SEARCHER)

VERY RISKY

non governmental organizations

Partners in Health- Paul Farmer

WHO-World Health Organization

UNICEF

Red Cross

BAD THING

because you don't look at all material, picking and choosing which information you share with others. SELF CENTERED DOUCHE

aid leads to corruption

MOYO

if theyre not working for the poor, dont give them aid- corrupt governments

Easterly

-No monitoring or accountability

-they wont be able to sustain themselves, dependent on aid 

-inhibit the homegrown solutions, they dont ask the people

1. More aid should be given-Sachs

2. Too much aid given- Moyo & Easterly

3. Not amount, how its given (Novogratz)

4. Focus on trade, migration, policy -(Moyo Novo.)

homegrown approach

political and economic approach

change from within

stop aid! 

CUT IT OFF! 

markets!!! ( Novo ;)

searcher

all about preferential access for the poor

Human Rights Issue

NELM -New Economics Labor Migration- households migrate

-individual migration

-migration as a social process- whatever starts migration slowly comes off

Cumulative Causation!!!

Economic development leads to migration! (book)

one thing does not always lead to another, but one is a force to another

remittances

human capital

empowerment