Video: Major Points
• Rice subsidies
• Giving away shoes puts local businesses out of jobs
• Money flows into aid industry but only a very little goes to actual people in poverty
o Money goes to developing nation governments,
• Need institutional reform
• Markets and institutional reform
o Countries don't get rich from aid, trade will help more
o This system isn't good, but it's better than no system (problem: dependencies, cycles, etc) --
> need change
• Partnerships > projects
• Was the film too capitalist? Neoliberalist?
Poverty Inc - Critiques
• Strong arguments, but evidence?
• Wydick et al (2014, 2016) study TOMS donations in RCT
o No statistically significant impact
o Though children receiving shoes were significantly more likely to state that outsiders should
provide for the needs of their family
• Mindset of dependency
o Main point is targeting: make sure those that can't pay market price for shoes are
receiving the benefits from donations
• Focus on ineffective poverty alleviation programs, but is there anything good in the current aid
o Health programs
• Deworming, smallpox
o Unconditional cash transfers
• Skips steps at the top --> gives cash to people in poverty
• People to people - skips aid system
o Growing evidence base for types of things that work
International Aid and Development
• Poverty Inc
o Empower people for local bottom-up entrepreneurship
• Planners vs searchers
o From Easterly
o Planners = old development paradigm (come in with ideas and plans to help)
o Searchers = meet demands of customers/people they want to partner with
Development and globalization
• Theme 4: Development
a. What is development, and how do we think about what this means?
b. How and why have (economic) development trajectories differed?
c. What is poverty, what are poverty traps?
• Theme 5: Globalization
a. Globalization b. Localization, ‘glocalization’ & examples
c. International aid, and aid effectiveness.
d. Video: Poverty Inc.