The End of Poverty
Encyclopedia
The End of Poverty: Economic Possibilities for Our Time (ISBN 1-59420-045-9) is a 2005 book by American economist Jeffrey Sachs
. It was a New York Times
bestseller
.
In the book, Sachs argues that extreme poverty
—defined by the World Bank
as incomes of less than 1 dollar per day—can be eliminated globally by the year 2025, through carefully planned development aid
. He presents the problem as an inability of very poor countries to reach the "bottom rung" of the ladder of economic development
; once the bottom rung is reached, a country can pull itself up into the global market economy
, and the need for outside aid will be greatly diminished or eliminated.
. Sachs explains that countries, like patients, are complex systems, requiring differential diagnosis
, an understanding of context, monitoring and evaluation, and professional standards of ethics. Clinical economics requires a methodic analysis and "differential diagnosis" of a country's economic problems, followed by a specifically tailored prescription. Many factors can affect a country's ability to enter the world market, including government corruption
; legal and social disparities based on gender, ethnicity, or caste; diseases such as AIDS
and malaria
; lack of infrastructure (including transportation, communications, health, and trade), unstable political landscapes; protectionism
; and geographic barriers. Sachs discusses each factor, and its potential remedies, in turn.
In order to illustrate the use of clinical economics, Sachs presents case studies on Bolivia
, Poland
, and Russia
, and discusses the solutions he presented to those countries, and their effects. The book also discusses the economies of Malawi
, India
, China
, and Bangladesh
as representative of various stages of economic development.
' Millennium Development Goals
(MDGs) as a first step towards eliminating extreme poverty
, which currently affects 1.1 billion people worldwide. Sachs headed the United Nations Millennium Project
, which worked from 2002 to 2005 to establish the organizational means to achieve the MDGs.
He also offers some specific, immediate solutions, such as increasing the availability of anti-malarial bed nets in sub-Saharan Africa
, and encourages debt cancellation
for the world's poorest countries. Sachs states that in order to achieve the goal of eliminating global poverty, clinical economics must be backed by greater funding; he argues that development aid must be raised from $65 billion globally as of 2002 to between $135 and $195 billion a year by 2015.
Sachs argues that the developed world can afford to raise the poorest countries out of extreme poverty (he agrees with the MDG's calculation that 0.7 percent of the gross national product of first world countries would be enough).
Jeffrey Sachs
Jeffrey David Sachs is an American economist and Director of The Earth Institute at Columbia University. One of the youngest economics professors in the history of Harvard University, Sachs became known for his role as an adviser to Eastern European and developing country governments in the...
. It was a New York Times
The New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...
bestseller
New York Times Best Seller list
The New York Times Best Seller list is widely considered the preeminent list of best-selling books in the United States. It is published weekly in The New York Times Book Review magazine, which is published in the Sunday edition of The New York Times and as a stand-alone publication...
.
In the book, Sachs argues that extreme poverty
Extreme poverty
Extreme poverty, as defined in 1996 by Joseph Wresinski, the founder of ATD Fourth World, is:"The lack of basic security connotes the absence of one or more factors enabling individuals and families to assume basic responsibilities and to enjoy fundamental rights. The situation may become...
—defined by the World Bank
World Bank Group
The World Bank Group is a family of five international organizations that makes leveraged loans, generally to poor countries.The Bank came into formal existence on 27 December 1945 following international ratification of the Bretton Woods agreements, which emerged from the United Nations Monetary...
as incomes of less than 1 dollar per day—can be eliminated globally by the year 2025, through carefully planned development aid
Development aid
Development aid or development cooperation is aid given by governments and other agencies to support the economic, environmental, social and political development of developing countries.It is distinguished...
. He presents the problem as an inability of very poor countries to reach the "bottom rung" of the ladder of economic development
Economic development
Economic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area...
; once the bottom rung is reached, a country can pull itself up into the global market economy
Market economy
A market economy is an economy in which the prices of goods and services are determined in a free price system. This is often contrasted with a state-directed or planned economy. Market economies can range from hypothetically pure laissez-faire variants to an assortment of real-world mixed...
, and the need for outside aid will be greatly diminished or eliminated.
Clinical economics
In order to address and remedy the specific economic stumbling blocks of various countries, Sachs espouses the use of what he terms "clinical economics", by analogy to medicineMedicine
Medicine is the science and art of healing. It encompasses a variety of health care practices evolved to maintain and restore health by the prevention and treatment of illness....
. Sachs explains that countries, like patients, are complex systems, requiring differential diagnosis
Differential diagnosis
A differential diagnosis is a systematic diagnostic method used to identify the presence of an entity where multiple alternatives are possible , and may also refer to any of the included candidate alternatives A differential diagnosis (sometimes abbreviated DDx, ddx, DD, D/Dx, or ΔΔ) is a...
, an understanding of context, monitoring and evaluation, and professional standards of ethics. Clinical economics requires a methodic analysis and "differential diagnosis" of a country's economic problems, followed by a specifically tailored prescription. Many factors can affect a country's ability to enter the world market, including government corruption
Political corruption
Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...
; legal and social disparities based on gender, ethnicity, or caste; diseases such as AIDS
AIDS
Acquired immune deficiency syndrome or acquired immunodeficiency syndrome is a disease of the human immune system caused by the human immunodeficiency virus...
and malaria
Malaria
Malaria is a mosquito-borne infectious disease of humans and other animals caused by eukaryotic protists of the genus Plasmodium. The disease results from the multiplication of Plasmodium parasites within red blood cells, causing symptoms that typically include fever and headache, in severe cases...
; lack of infrastructure (including transportation, communications, health, and trade), unstable political landscapes; protectionism
Protectionism
Protectionism is the economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to allow "fair competition" between imports and goods and services produced domestically.This...
; and geographic barriers. Sachs discusses each factor, and its potential remedies, in turn.
In order to illustrate the use of clinical economics, Sachs presents case studies on Bolivia
Bolivia
Bolivia officially known as Plurinational State of Bolivia , is a landlocked country in central South America. It is the poorest country in South America...
, Poland
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
, and Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
, and discusses the solutions he presented to those countries, and their effects. The book also discusses the economies of Malawi
Malawi
The Republic of Malawi is a landlocked country in southeast Africa that was formerly known as Nyasaland. It is bordered by Zambia to the northwest, Tanzania to the northeast, and Mozambique on the east, south and west. The country is separated from Tanzania and Mozambique by Lake Malawi. Its size...
, India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
, China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
, and Bangladesh
Bangladesh
Bangladesh , officially the People's Republic of Bangladesh is a sovereign state located in South Asia. It is bordered by India on all sides except for a small border with Burma to the far southeast and by the Bay of Bengal to the south...
as representative of various stages of economic development.
The Millennium Development Goals
Sachs places a great deal of emphasis on the United NationsUnited Nations
The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...
' Millennium Development Goals
Millennium Development Goals
The Millennium Development Goals are eight international development goals that all 193 United Nations member states and at least 23 international organizations have agreed to achieve by the year 2015...
(MDGs) as a first step towards eliminating extreme poverty
Extreme poverty
Extreme poverty, as defined in 1996 by Joseph Wresinski, the founder of ATD Fourth World, is:"The lack of basic security connotes the absence of one or more factors enabling individuals and families to assume basic responsibilities and to enjoy fundamental rights. The situation may become...
, which currently affects 1.1 billion people worldwide. Sachs headed the United Nations Millennium Project
United Nations Millennium Project
The Millennium Project is an initiative that focuses on research implementing the organizational means, operational priorities, and financing structures necessary to achieve the Millennium Development Goals or . The goals are aimed at the reduction of poverty, hunger, disease, illiteracy,...
, which worked from 2002 to 2005 to establish the organizational means to achieve the MDGs.
He also offers some specific, immediate solutions, such as increasing the availability of anti-malarial bed nets in sub-Saharan Africa
Sub-Saharan Africa
Sub-Saharan Africa as a geographical term refers to the area of the African continent which lies south of the Sahara. A political definition of Sub-Saharan Africa, instead, covers all African countries which are fully or partially located south of the Sahara...
, and encourages debt cancellation
Debt relief
Debt relief is the partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals, corporations, or nations. From antiquity through the 19th century, it refers to domestic debts, in particular agricultural debts and freeing of debt slaves...
for the world's poorest countries. Sachs states that in order to achieve the goal of eliminating global poverty, clinical economics must be backed by greater funding; he argues that development aid must be raised from $65 billion globally as of 2002 to between $135 and $195 billion a year by 2015.
Sachs argues that the developed world can afford to raise the poorest countries out of extreme poverty (he agrees with the MDG's calculation that 0.7 percent of the gross national product of first world countries would be enough).
See also
- 2005 World Summit2005 World SummitThe 2005 World Summit, 14–16 September 2005, was a follow-up summit meeting to the United Nations' 2000 Millennium Summit, which led to the Millennium Declaration of the Millennium Development Goals...
- The Global Fund to Fight AIDS, Tuberculosis & MalariaThe Global Fund to Fight AIDS, Tuberculosis & MalariaThe Global Fund to Fight AIDS, Tuberculosis and Malaria is an international financing organization that aims to "[a]ttract and disburse additional resources to prevent and treat HIV and AIDS, tuberculosis and malaria." A public–private partnership, the organization has its secretariat in Geneva,...
- Development economicsDevelopment economicsDevelopment Economics is a branch of economics which deals with economic aspects of the development process in low-income countries. Its focus is not only on methods of promoting economic growth and structural change but also on improving the potential for the mass of the population, for example,...
- Dambisa MoyoDambisa MoyoDr. Dambisa Moyo is an international economist and New York Times best-selling author of both Dead Aid: Why Aid is Not Working and How There is a Better Way For Africa, published in 2009, and How the West Was Lost: Fifty Years of Economic Folly - And the Stark Choices that Lie Ahead, published in...
External links
- Jeffrey Sachs discusses his book, The End of Poverty, at the Carnegie Council.
- http://www.earthinstitute.columbia.edu/endofpoverty
- UN Millennium Project