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ECO100Y1 (438)
Jack Carr (32)

Poverty Reduction and Conclusion

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Jack Carr

April 8, 2009 Number of hungry people 850 million in 2007, 1Billion now Sachs-primary goal is the removal of poverty -Africa needs a big push, flood of foreign aid -foreign aid is much better than trade, solution is a big foreign aid program to African nations -program charge foreign aid for $150 Billion to solve poverty in 10 years to achieve millennium goal -US spends 450 Billion on Military sector and only 15 billion in foreign aid, misallocation of resources -8 years ago, not one African was treated for Aids, no medicine in Africa, no bedmats -in the international community, not too many people are doing anything to solve poverty -the food shortage in 2006-7 will put more people into poverty -US should not become involved in alternative oil, takes corn out of food supply, put 5 Billion into making energy from corn, will harm food supply for the world -develop a new spirit for global cooperation, should fight extreme poverty, curb population growth, fight environmental degradation -cost of inaction is too great -technological improvements will help food shortage Problems: -some countries want to be able to feed themselves before helping others -cartels for rice -too much spending on Iraq -center of economic gravity will change towards Asia -Sachs concludes: if we continue to focus on the Iraq war and neglect other issues (poverty reduction, food supply) we will not solve global problems that are much bigger, will end up in a deeper mess than now African economist -foreign capital inflow in small doses -Africa has new trading partners, should expand their international trade, use micro-financing, small loans to increase trade -after 60 years of failure from foreign aid, need new path, new strategies -stop foreign aid, African nations will have to find new means to finance their investment from private sector, will be the driver of growth -foreign aid crowds out foreign private investment -global current recession is good, creates new priorities and opportunities in Africa, reduce existing flows of foreign aid -this will give them the ability to grow successfully, trade not aid -past 60 years of aid have produced failures Sachs, Easterly, Lewis Prosperity, productivity, poverty Prosperity -higher standard of living driven by productivity growth -economic growth leads to higher standard of living, will create new jobs and reduce poverty
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