Sunday, 24 February 2008

jeffrey sachs on world bank and africa



Jeffrey Sachs on the World Bank and Africa

Via Dani Rodrik.

Sachs says:

And the core problem in Africa is not corruption but the lack of

basic infrastructure and services. Like all poor regions (and rich

nations like the U.S.), Africa has its corruption problems, but

they do not explain its distinctively poor economic performance.

The causes are obvious to anyone who has spent a few days in

African villages. There are almost no roads, electricity, doctors,

nurses, fertilizers, high-yield seeds, and all the other things

that constitute the first step out of extreme poverty.

If by basic infrastructure and services Sachs' also means

"institutions" then he's partially correct. Corruption is a huge

problem in Africa and it's THE major reason why "there are almost no

roads, electricity, doctors, nursues, fertilizers, high-yield seeds,

and all the other things that constitute the first step out of extreme

poverty". (If you want to read a first-hand account, check out Robert

Guest's The Shackled Continent.)

People make up institutions, or at the very least one would be able to

say that they run the institutions. If the people running the

institutions are corrupt, then you have a major problem. The money can

keep on flowing in, but if they don't get to the people who need it

the most and corrupt officials staff the institutions that are most

likely to receive the said funds, the money goes toward buying things

like presidential jets, building state-of-the-art airports, or keeping

a well-stocked liquor cabinet of the finest single-malt scotches in

the world. Moreover, even if the money reaches the people who need it

the most, then what? I certainly hope that they could purchase the

much needed supplies and contract for the services and the

construction of the basic infrastructure necessary for development.

But I doubt the corrupt officials (especially a corrupt military)


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