geo of intl development notes nov 29

geo of intl development notes nov 29 - Rostow- 15 billion...

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Rostow- 15 billion dollars, and they will all come out of poverty Myrdal- yes, that will work, only need a plan Peter Bauer- no, it wont. Danger of aid- power of govt too high, causes corruption, mis allocates resources, erodes society Typical African country receives 15% of income from foreign donors. 25 least democratic – 9.5 billion 25 most corrupt – 9 billion Top 15% recipients $1 billion each- 25% of the worst governments in the world. Has aid worked for anyone debt service = % exports/ interest on loans Why? Doesn't teach them how to keep economy going higher level of expectations- every time they come to a crisis, they will be bailed out. Aid given with strings. .. must buy capital from richer countries. .. requirements often don't help their economies 200 million $ aid has effect of dutch disease- increases inflation, moves people out of economic sectors they would have otherwise worked in. acts like an import, and no exports to balance it out, appreciates value of the money exporters lose because their products are less competitive same problem as oil states- rentier states and oligarchies- example of Nigeria and how they have nothing to show for their oil money countries that need aid have lousy government policy, aid doesn't cure this. Rates of inflation- some up to 124%, result of dumping aid on countries Which group of countries have good economic policies (low budget deficits, low inflation, etc)? Ones
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This note was uploaded on 06/10/2010 for the course HIS 102 taught by Professor Archer during the Spring '10 term at University of Mississippi Medical Center.

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geo of intl development notes nov 29 - Rostow- 15 billion...

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