Ending poverty in 2025<\/p>\n
Arya B. Gaduh, Contributor, Jakarta<\/p>\n
It was once said, poverty would always be with us. Jeffrey
\nSachs, a world-class economist and professor at Columbia
\nUniversity, does not fully agree: Poverty, at least the worst
\nkind, can be eliminated. In The End of Poverty, he proposes a way
\nfor the world to achieve this, not in our grandchildren's or even
\nour children's lifetime, but in ours. If rich countries pay up
\ntheir dues, he believes it is conceivable to stop extreme poverty
\nby 2025.<\/p>\n
The End of Poverty is, for the most part, about Sachs' passion
\nto end poverty by 2025. Behind this passion is his decade-long
\nexperience in Africa, where he observes first-hand the plight of
\npeople living in extreme poverty, a condition marked by the
\ninability to meet even the most basic needs for survival. The
\nexperience taught him \"a considerable amount about extreme
\npoverty, the power and limits of globalization, and the
\nindomitable strength of the human spirit in the face of
\nadversity.\" (p. 188).<\/p>\n
The experience also taught him that extreme poverty was
\npossible to eliminate. With the right approach, and adequate
\noutside assistance, the poorest of households can begin to meet
\ntheir minimum needs, allowing them a sustainable livelihood of
\ntheir own. His objectives to end poverty, then, are \"to end the
\nplight of one-sixth of humanity that lives in extreme poverty and
\nstruggles daily for survival\" and \"to ensure that all of the
\nworld's poor, including those in moderate poverty, have a chance
\nto climb the ladder of development\" (p. 24).<\/p>\n
What causes extreme poverty, particularly in Africa? Bad
\ngovernments (and governance) have taken a bad rap as the culprit
\nfor Africa's poor economic performance. But according to Sachs,
\nthis would be misleading: compared to other countries around the
\nworld with similar income and quality of governance, Africa's
\ngrowth was as much as 3 percent lower. So, argues Sachs, extreme
\npoverty in Africa was essentially a result of bad luck from
\nadverse geography, and insufficient infrastructure (p. 314).<\/p>\n
Sachs is at his best in providing compelling arguments to
\nexplain the underlying cause of extreme poverty. He skillfully
\nmixes economic growth theory, empirical findings, and sprinkles
\nanecdotes to explain the notion of \"poverty traps\". Without
\noutside help, households in a poverty trap will see their capital
\nshrink and finally, destitution. But the governments of countries
\nstuck in a poverty trap do not have the resources to assist these
\nhouseholds.<\/p>\n
So, he proposes to have rich, foreign governments help these
\nhouseholds instead. To do that, rich countries should live up to
\ntheir promises, made in Rio de Janeiro 1992 and in Monterrey
\n2002, to increase foreign aid to 0.7 percent of their gross
\nnational products (GNP). Of the rich countries, the United States
\nis the laggard, contributing a mere 0.15 percent of its GNP in
\n2003. Rich countries also need to coordinate their policies
\nbetter through the three major international institutions: the
\nUnited Nations, the World Bank and the IMF.<\/p>\n
His proposal on the donor side is, I think, quite
\ncomprehensive and workable. However, Sachs is missing a critical
\nelement: What about the mechanism on the receiving side? Sachs
\ntook issue at excuses made by the U.S. government, based on
\nprejudices against African governments, to avoid giving financial
\naid to the continent.<\/p>\n
However, the problem of corruption in Africa -- and in most
\nother developing countries -- is real. Without a similarly
\ncomprehensive proposal to tackle this, it is not hard to imagine
\nhow the other proposal may fall on deaf ears.<\/p>\n
Sachs clearly acknowledges that there are two parties to a
\ncompact to end poverty. \"Poor countries have no guaranteed right
\n...to accept development assistance from rich countries. They only
\nhave that right if they themselves carry through on their
\ncommitments to good governance\" (p. 269).<\/p>\n
However, it is no easy task to figure out and ensure real
\ncommitments to good governance. A detailed proposal to do that is
\nbadly needed -- and the book's lack of such a proposal makes it
\nrather incomplete.<\/p>\n
This issue aside, The End of Poverty remains a valuable read.
\nEconomists, policy analysts, development specialists and
\nactivists will find gems all over, particularly as Sachs shares
\nhis personal and professional experience in advising countries in
\nLatin America, Eastern Europe, the former Soviet Union, Asia and
\nAfrica.<\/p>\n
For the rest of us, it states the possibilities of our time:
\n\"how our generation could mobilize our capacities in the coming
\n20 years to eliminate the extreme poverty that remains\" (p. 4).
\nIn short, it's a statement of hope.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ending-poverty-in-2025-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}