Dead Aid by Dambisa Moyo
Dead Aid is a 150 page book with a 24 page bibliography - so it reads more like a long white paper than a book. Dambisa Moyo has an impressive resume, much alluded to in both the book jacket and the foreword by Niall Ferguson. The author has worked for the World Bank and Goldman Sachs and she has a PhD from Oxford University. Impressive no doubt. Even more impressive is the fact that she was born and raised in Zambia so her profile fits neatly into the "Solutions to Africa's problems by Africans" paradigm.

The book itself makes its case almost clinically, backed up by statistics and research papers from an entire spectrum of economists. Dead Aid is divided in two sections, The World of Aid, which examines the 'aid-economy', the players and the harmful affects on African countries' dependence on western aid. The second section, A World Without Aid proposes several venues open to the developing countries in Africa to raise money and be independent - the most important being trade and raising capital from the markets. Ms. Moyo manages to connect a lot of different African ailments to aid, from corruption to dictatorship and she makes a convincing case. Her solutions make sense as well - at least to a strong believer in free trade like myself. The hopelessness of it all is that it is almost impossible to imagine the West will roll back its Aid of Africa model that has failed so consistently and for so long.

The book's main weakness is that it makes for almost dreary reading. Ms. Moyo may be a brainy economist, she is not a writer. The book suffers from a dearth of wit and style. The author does try to indulge in a hypothetical by creating the composite African country of Dongo and examinig how the country may funciton if her suggestions were realized. But in the end her vision reads less like a fully realized painting and more like a stick figure drawing. I recommend reading the book, only because it serves as a starting point for examining the issue of tackling the many problems of the African continent.

Labels: 2010, africa, aid, dambisa moyo, development, economics, economists, finance, microfinance, world bank, zambia

posted by ubaid - Sunday, March 07, 2010 at 12:41 PM - 0 comments - post anonymously

An Interview With the Late Chicago Economist Milton Friedman

An interview with Milton Friedman (1912 - 2006) - Nobel Prize-winning economist Milton Friedman is widely regarded as the leader of the Chicago School of monetary economics, which stresses the importance of the quantity of money as an instrument of government policy and as a determinant of business cycles.

Interview conducted 10/01/00

On Freedom and Free Markets

INTERVIEWER: Why are free markets and freedom inseparable?

MILTON FRIEDMAN: Freedom requires individuals to be free to use their own resources in their own way, and modern society requires cooperation among a large number of people. The question is, how can you have cooperation without coercion? If you have a central direction you inevitably have coercion. The only way that has ever been discovered to have a lot of people cooperate together voluntarily is through the free market. And that's why it's so essential to preserving individual freedom.

INTERVIEWER: Marxists say that property is theft. Why, in your view, is private property so central to freedom?

MILTON FRIEDMAN: Because the only way in which you can be free to bring your knowledge to bear in your particular way is by controlling your property. If you don't control your property, if somebody else controls it, they're going to decide what to do with it, and you have no possibility of exercising influence on it. The interesting thing is that there's a lot of knowledge in this society, but, as Friedrich Hayek emphasized so strongly, that knowledge is divided. I have some knowledge; you have some knowledge; he has some knowledge. How do we bring these scattered bits of knowledge back together? And how do we make it in the self-interest of individuals to use that knowledge efficiently? The key to that is private property, because if it belongs to me, you know, there's an obvious fact. Nobody spends somebody else's money as carefully as he spends his own. Nobody uses somebody else's resources as carefully as he uses his own. So if you want efficiency and effectiveness, if you want knowledge to be properly utilized, you have to do it through the means of private property.

Read the full interview here - http://www.pbs.org/wgbh/commandingheights/shared/minitextlo/int_miltonfriedman.html

Labels: chicago, economics, free market, interviews, milton friedman, pbs

posted by ubaid - Sunday, February 04, 2007 at 9:44 AM - 0 comments - post anonymously