POLS 3320 Lecture Notes - Lecture 2: Dambisa Moyo, Microfinance, Marshall Plan
Sachs foreign aid can play a critical role in providing national economies with the resources low- income countries need to get out of the low income equilibrium and low productivity traps. Easterly national economies get into traps due to structural reasons such as education, trade, investments and believes that the big push wont really make a big difference. The reason countries are in debt is because they"re already in debt, they must frequently go back again. The big five agricultural inputs: fertilizers, seeds, irrigation etc. investment in basic health: vaccinations, skilled birth attendants and health clinics investments in education: teachers, facilities, vocational training. They"re too expensive, they wont work, they"re misguided and they"re unethical. The cost of mdgs ( billion in additional oda, we should be near billion). The current oda target is 0. 7%, yet only 5/22 countries have met this target. It"s hard for industrialized countries to meet this target.