Jan 29 2010

The “bottom billion”, aid, and strategies for achieving economic development

In IB Economics unit 5, Development Economics, several strategies for achieving improvements in the welfare of the world’s poorest people are investigated. Foreign aid has been one of the main focuses of economic development strategies over the last several decades. But is aid in the form of development loans and grants from international organizations and foreign governments always beneficial to those who receive it in the poorest countries (the bottom billion as described by development economist Paul Collier)?

In the discussion that follows, Paul Collier of Oxford and Zambian economist Dambisa Moyo argue that the developed world’s focus on aid to Africa, resulting in a trillion dollars in loans and grants over the last 50 years, has missed the mark and completely failed to achieve meaningful economic development. The focus must therefore shift to opening markets, improving governance, achieving security and creating jobs for the poorest people on the African continent. Watch the two videos below, and respond to the discussion questions that follow. [the time in the video where the question is discussed is in brackets]

Part 1:


Part 2:

Discussion Questions:

Part 1:

  1. What factors does Paul Collier point to that contribute to the “poverty traps” many African nations find themselves in? [3:07]
  2. What have the two main goals of foreign aid policy been over the last 50 years, according to Dambisa Moyo? [4:45]
  3. What are the “four horsemen of the African apocalypse?” How does Moyo think these four obstacles to development can best be overcome? [5:14]
  4. What is Paul Collier’s opinion of the role of free trade in promoting human and economic development in Africa? What does he think about Africa’s traditional dependence on primary products and commodities? [7:45]
  5. Before economic growth and development can occur, security must be achieved. Why is security, according to Collier, the number one obstacle to achieving meaningful development in Africa? [8:30]
  6. In a dissenting view, Dr. Jeffery Sachs argues for more aid to Africa. What types of aid does Sachs believe is absolutely crucial for Africa to continue to receive? [10:39]

Part 2:

  1. Collier makes the claim that aid may create “moral hazard” in Africa. What is moral hazard and how could reducing aid to African governments actually “force good governance”? [5:30]
  2. Is there any historic record of aid working? What strategies accompanied foreign aid that contributed to its greatest historical success? [8:10]
  3. What’s the main difference between Europe’s economic successful development during the second half of the 20th century and Africa’s unsuccessful experience during the same period? [9:00]

About the author:  Jason Welker teaches International Baccalaureate and Advanced Placement Economics at Zurich International School in Switzerland. In addition to publishing various online resources for economics students and teachers, Jason developed the online version of the Economics course for the IB and is has authored two Economics textbooks: Pearson Baccalaureate’s Economics for the IB Diploma and REA’s AP Macroeconomics Crash Course. Jason is a native of the Pacific Northwest of the United States, and is a passionate adventurer, who considers himself a skier / mountain biker who teaches Economics in his free time. He and his wife keep a ski chalet in the mountains of Northern Idaho, which now that they live in the Swiss Alps gets far too little use. Read more posts by this author


57 responses so far

57 Responses to “The “bottom billion”, aid, and strategies for achieving economic development”

  1. Marenon 29 Jan 2010 at 6:55 pm

    Part 1:

    1. What factors does Paul Collier point to that contribute to the “poverty traps” many African nations find themselves in? [3:07]

    - There is no single trap

    - Four: landlocked (can't get to the market), having variable natural resources, weak governments, conflict

    2. What have the two main goals of foreign aid policy been over the last 50 years, according to Dambisa Moyo? [4:45]

    - 1. Increase growth, 2. reduce poverty

    (aid of one trillion dollars -> failed)

    3. What are the “four horsemen of the African apocalypse?” How does Moyo think these four obstacles to development can best be overcome? [5:14]

    - War, poverty, disease and corruption

    - Best strategy is not aid, but building alliances with other countries (other African countries and other developing countries)

    4. What is Paul Collier’s opinion of the role of free trade in promoting human and economic development in Africa? What does he think about Africa’s traditional dependence on primary products and commodities? [7:45]

    - Message of trade – engine out of poverty

    - Not just traditional trade (primary products), but he sees Africa more in manufacturing

    5. Before economic growth and development can occur, security must be achieved. Why is security, according to Collier, the number one obstacle to achieving meaningful development in Africa? [8:30]

    - Security is very hard in small and poor countries -> development hard

    - Security is better in large and rich countries -> development easy

    6. In a dissenting view, Dr. Jeffery Sachs argues for more aid to Africa. What types of aid does Sachs believe is absolutely crucial for Africa to continue to receive? [10:39]

    - Health/medical aid (e.g. mosquito nets)

    - Aid that reduces short them suffering

    Part 2:

    1. Collier makes the claim that aid may create “moral hazard” in Africa. What is moral hazard and how could reducing aid to African governments actually “force good governance”? [5:30]

    - Moral hazard: you give them money and you get very bad behavior – incentive to be immoral and take risks -> the worse the country, the more money they get

    - Reduced aid -> more taxes and the people want good governance for it

    - Government makes own budget

    - Creates development

    2. Is there any historic record of aid working? What strategies accompanied foreign aid that contributed to its greatest historical success? [8:10]

    - Yes, aid was invented to reconstruct Europe after the second world war – America helped Europe (to govern itself better)

    - Marshall plan after World War 2

    3. What’s the main difference between Europe’s economic successful development during the second half of the 20th century and Africa’s unsuccessful experience during the same period? [9:00]

    - Countries worked together

    - Community formed, cooperation, communication – in Europe but not Africa

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  2. Jabboon 29 Jan 2010 at 6:57 pm

    Part 1:

    1. What factors does Paul Collier point to that contribute to the “poverty traps” many African nations find themselves in? [3:07]

    1. Landlocked, when market is not

    2. Variable natural resources

    3. Weak governments, violent conflicts

    1. What have the two main goals of foreign aid policy been over the last 50 years, according to Dambisa Moyo? [4:45] trillion dollars

    1. Reduce poverty

    2. Increase growth

    3. It's not working, Africans became worse off

    2. What are the “four horsemen of the African apocalypse?” How does Moyo think these four obstacles to development can best be overcome? [5:14]

    1. War, poverty, disease, corruption

    2. Building alliances with each other and foreign countries

    1) HER MESSAGE: TRADE not AID

    2) Foreign aid = dumping foreign goods on africa –> taking jobs

    3. What is Paul Collier’s opinion of the role of free trade in promoting human and economic development in Africa? What does he think about Africa’s traditional dependence on primary products and commodities? [7:45]

    1. Trade – Moving beyond the primary commodities (raw materials)

    2. He sees Africa as a source of manufacturing – untapped human capital

    4. Before economic growth and development can occur, security must be achieved. Why is security, according to Collier, the number one obstacle to achieving meaningful development in Africa? [8:30]

    1.

    5. In a dissenting view, Dr. Jeffery Sachs argues for more aid to Africa. What types of aid does Sachs believe is absolutely crucial for Africa to continue to receive? [10:39]

    1. People will die, mosquito nets, fertilizers

    Part 2:

    1. Collier makes the claim that aid may create “moral hazard” in Africa. What is moral hazard and how could reducing aid to African governments actually “force good governance”? [5:30]

    1. You give the money you get bad behavior (the worse my country is, the more money I get)

    2. Good leaders have to tax their own criticizes, govern well > create economic development and make own budget from tax payers

    2. Is there any historic record of aid working? What strategies accompanied foreign aid that contributed to its greatest historical success? [8:10]

    1. Europe after second world war

    2. Marshall plan aid went hand in hand with trade governance policies, cooperation, security

    3. What’s the main difference between Europe’s economic successful development during the second half of the 20th century and Africa’s unsuccessful experience during the same period? [9:00]

    1. Leaders in Africa don’t want to share their success, not with other countries, nor with their citizens

    2. No community in Africa

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  3. Laura Perezon 29 Jan 2010 at 7:00 pm

    1. What factors does Paul Collier point to that contribute to the “poverty traps” many African nations find themselves in? [3:07]

    Valuable natural resource= can be a curse

    Landlocked countries= makes it hard to get to the market

    Weak governments, small country

    Conflict= war, biggest one

    2. What have the two main goals of foreign aid policy been over the last 50 years, according to Dambisa Moyo? [4:45]

    Increase growth

    Reduce poverty

    Africa has received a trillion dollars over the past year (more than the entire GDP of Africa)

    3. What are the “four horsemen of the African apocalypse?” How does Moyo think these four obstacles to development can best be overcome? [5:14]

    War, poverty, disease and corruption

    Focusing on trade, building alliances with new emerging economies. (not the traditional way)

    "Trade not aid"

    4. What is Paul Collier’s opinion of the role of free trade in promoting human and economic development in Africa? What does he think about Africa’s traditional dependence on primary products and commodities? [7:45]

    Agrees with trade as savior for current situation. Sees China coming in

    5. Before economic growth and development can occur, security must be achieved. Why is security, according to Collier, the number one obstacle to achieving meaningful development in Africa? [8:30]

    Without security it can't get going, West Africa is very insecure. Security is hard to achieve in small and poor countries.

    6. In a dissenting view, Dr. Jeffery Sachs argues for more aid to Africa. What types of aid does Sachs believe is absolutely crucial for Africa to continue to receive? [10:39]

    Aid medicine and fertilizer aid (example) STILL NEEDED

    Part 2:

    1. Collier makes the claim that aid may create “moral hazard” in Africa. What is moral hazard and how could reducing aid to African governments actually “force good governance”? [5:30]

    Moral hazard= it doesn't matter if leaders screw up country, the more they give, the less incentive the government has to rule country efficiently. If they stop giving aid the people will eventually demand effective leadership. People will hold government accountable.

    (huge bailout won't make banks efficient, won't be responsible, can lead to moral hazard (incentive to act immorally and can lead to another collapse)

    2. Is there any historic record of aid working? What strategies accompanied foreign aid that contributed to its greatest historical success? [8:10]

    Marshall plan–> was part of a bigger plan

    3. What’s the main difference between Europe’s economic successful development during the second half of the 20th century and Africa’s unsuccessful experience during the same period? [9:00]

    There was a big trade policy during second world war, and new markets being opened, completely new way of governance/thinking. There is no community in Africa unlike the community of the European countries.

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  4. Theresaon 30 Jan 2010 at 1:40 am

    1. What factors does Paul Collier point to that contribute to the “poverty traps” many African nations find themselves in?

    He said that there is no single trap one can blame but that conflict such as war, landlockage, and weak government are main the main problems. Also great natural resources can be bad for the counrty.

    2. What have the two main goals of foreign aid policy been over the last 50 years, according to Dambisa Moyo?

    The 2 main goals of foreign aid were to increase growth and Reduce Poverty.

    3. What are the “four horsemen of the African apocalypse?” How does Moyo think these four obstacles to development can best be overcome?

    War, poverty, disease and corruption

    “Trade not aid” is the best strategy to follow

    4. What is Paul Collier’s opinion of the role of free trade in promoting human and economic development in Africa? What does he think about Africa’s traditional dependence on primary products and commodities? [7:45]

    He thinks that trade is the way out of poverty as Africa could use the manufactoring sector to improve its economy. He thinks that traditional trade in primary products is therefore not the way to go.

    5. Before economic growth and development can occur, security must be achieved. Why is security, according to Collier, the number one obstacle to achieving meaningful development in Africa?

    He thinks that security is hart to achieve in small countries and larger in developed countries, but it is the basis needed for development.

    6. In a dissenting view, Dr. Jeffery Sachs argues for more aid to Africa. What types of aid does Sachs believe is absolutely crucial for Africa to continue to receive?

    -Health/medical aid such as mosquito nets and aid to reduce suffering in short term

    Part 2:

    1. Collier makes the claim that aid may create “moral hazard” in Africa. What is moral hazard and how could reducing aid to African governments actually “force good governance”?

    Moral Hazard means it doesen't matter what the leaders of a country have done to the country. If they give a lot to the country it has less incentive of being ruled efficiently. Therefore one should stop giving aid and help, as people will then demand a strong and functioning leadership.

    2. Is there any historic record of aid working? What strategies accompanied foreign aid that contributed to its greatest historical success?

    The Marshall Plan after the second world war

    3. What’s the main difference between Europe’s economic successful development during the second half of the 20th century and Africa’s unsuccessful experience during the same period?

    New markets were being opnend in the second world war due to a new trade policy. The problem is that the community in africa is not like to community in the european countries. Leaders in Africa do not want to share successes and the countries are not connected like in europe. Therefore no development can take place.

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  5. Christianoon 02 Feb 2010 at 4:59 pm

    1.What factors does Paul Collier point to that contribute to the “poverty traps” many African nations find themselves in? [3:07]

    Paul Collier emphasizes that there is no single poverty trap which hinders the development process of African nations. The biggest poverty traps are political instability caused by wars and weak government, abundance of natural resources or geography (landlocked countries).

    2.What have the two main goals of foreign aid policy been over the last 50 years, according to Dambisa Moyo? [4:45]

    The two main goals of foreign aid policy have been to reduce poverty and increase growth.

    4.What is Paul Collier’s opinion of the role of free trade in promoting human and economic development in Africa? What does he think about Africa’s traditional dependence on primary products and commodities? [7:45]

    He believes that free trade is the best way for African nations to alleviate poverty and spur economic development. He thinks that Africa has great potential for manufacturing products because it has abundant labor force.

    5.Before economic growth and development can occur, security must be achieved. Why is security, according to Collier, the number one obstacle to achieving meaningful development in Africa? [8:30]

    Without a good security system, it is hard to achieve economic growth and development in Africa, because foreign countries would not invest in a country which is insecure. Decreasing foreign direct investment means slowing economic growth and development.

    6.In a dissenting view, Dr. Jeffery Sachs argues for more aid to Africa. What types of aid does Sachs believe is absolutely crucial for Africa to continue to receive? [10:39]

    He believes that it is important to provide medical/ health aid such as mosquito nets in order to reduce suffering in the short term.

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  6. Christianoon 02 Feb 2010 at 7:01 pm

    1.Collier makes the claim that aid may create “moral hazard” in Africa. What is moral hazard and how could reducing aid to African governments actually “force good governance”? [5:30]

    Moral hazard means that aid money results in bad behavior because the African governments are not forced to operate efficiently. The reduction of aid to African governments could actually force good governance because the government is forced to make improvements and has to achieve sustainable long run development by its own means.

    2.Is there any historic record of aid working? What strategies accompanied foreign aid that contributed to its greatest historical success? [8:10]

    The Marshall plan established by America has been an example of successful historic aid. Trade barriers were removed and security measures were put in place so that dumping money could work.

    3.What’s the main difference between Europe’s economic successful development during the second half of the 20th century and Africa’s unsuccessful experience during the same period? [9:00]

    Sovereignty in European community has lead to good decision making whereas conflicts in Africa have prevented African nations from acting together towards successful development.

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  7. Dimitrion 02 Feb 2010 at 7:02 pm

    Part 1:

    1. What factors does Paul Collier point to that contribute to the “poverty traps” many African nations find themselves in? [3:07]

    - Some countries are landlocked

    - Having invaluable resources

    - Weak governments

    - Conflict trap

    2. What have the two main goals of foreign aid policy been over the last 50 years, according to Dambisa Moyo? [4:45]

    - Increase growth

    - Decrease poverty

    3. What are the “four horsemen of the African apocalypse?” How does Moyo think these four obstacles to development can best be overcome? [5:14]

    - War

    - Poverty

    - Disease

    - Corruption

    Start building alliances between African governments

    4. What is Paul Collier’s opinion of the role of free trade in promoting human and economic development in Africa? What does he think about Africa’s traditional dependence on primary products and commodities? [7:45]

    - Africa has been a source of cheap natural resources

    - Countries in Africa need to go through the stages of development

    - Need to start manufacturing and not just exporting

    5. Before economic growth and development can occur, security must be achieved. Why is security, according to Collier, the number one obstacle to achieving meaningful development in Africa? [8:30]

    - Increasing the UN presence would establish the groundwork for a stable government

    6. In a dissenting view, Dr. Jeffery Sachs argues for more aid to Africa. What types of aid does Sachs believe is absolutely crucial for Africa to continue to receive? [10:39]

    - Medical care/ aid

    - Short term recovery

    Part 2:

    1. Collier makes the claim that aid may create “moral hazard” in Africa. What is moral hazard and how could reducing aid to African governments actually “force good governance”? [5:30]

    - You give them money and you get very bad behavior

    - Without aid, good leaders are forced to tax people and taxation results in a demand for good governance by the people

    2. Is there any historic record of aid working? What strategies accompanied foreign aid that contributed to its greatest historical success? [8:10]

    - Marshall plan after WW2

    ? Reduction of trade barriers

    ? Thousands of troops

    3. What’s the main difference between Europe’s economic successful development during the second half of the 20th century and Africa’s unsuccessful experience during the same period? [9:00]

    - Europe managed to pool their resources (sovereignty) by combining to form the EU

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  8. Daniel Edmondson 02 Feb 2010 at 7:04 pm

    What factors does Paul Collier point to that contribute to the “poverty traps” many African nations find themselves in? [3:07]

    4 factors: landlocked, having valuable natural resources, weak governments, and conflict.

    What have the two main goals of foreign aid policy been over the last 50 years, according to Dambisa Moyo? [4:45]

    Increase growth and decrease poverty

    What are the “four horsemen of the African apocalypse?” How does Moyo think these four obstacles to development can best be overcome? [5:14]

    War, poverty, disease and corruption.

    What is Paul Collier’s opinion of the role of free trade in promoting human and economic development in Africa? What does he think about Africa’s traditional dependence on primary products and commodities? [7:45]

    It has natural resources.

    Before economic growth and development can occur, security must be achieved. Why is security, according to Collier, the number one obstacle to achieving meaningful development in Africa? [8:30]

    Without security development cant happen. Security is hard in which countries are small and poor.

    In a dissenting view, Dr. Jeffery Sachs argues for more aid to Africa. What types of aid does Sachs believe is absolutely crucial for Africa to continue to receive? [10:39]

    He argues for more medical aid.

    Part 2:

    Collier makes the claim that aid may create “moral hazard” in Africa. What is moral hazard and how could reducing aid to African governments actually “force good governance”? [5:30]

    Giving more money to the government creates more hazards. They way to get good leaders is when the government taxes their own leaders. All people want governments

    Is there any historic record of aid working? What strategies accompanied foreign aid that contributed to its greatest historical success? [8:10]

    Aid was invented to reconstruct Europe after the Second World War.

    What’s the main difference between Europe’s economic successful development during the second half of the 20th century and Africa’s unsuccessful experience during the same period? [9:00]

    Europe had tight security and free markets. There was also no corruption and the government was willing to share power.

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  9. Marc Lemannon 02 Feb 2010 at 7:23 pm

    Part 1:

    1. There is no one factor; the four main poverty traps are that they are land locked, have valuable natural resources, bad governance and a conflict trap that keep them in a “poverty cycle”.

    2. Increase growth and reduce poverty has been the goal the past 50 years. 1 trillion in aid has already gone to Africa, but it hasn’t done much.

    3. War, poverty, disease and corruption

    4. Moving beyond the traditional dependence on European aid and selling cheap resources to Europe should now be the focus for economic development in Africa. They have to go through the stages of development, initially producing in the primary sector and eventually becoming a producer of goods for foreign companies.

    5. The governments are corrupt and are not able to provide security, he suggests outside security should stabilize the countries.

    6. He is arguing for emergency health aid to continue, which it should, but it is not the type of aid that Paul Collier is arguing should cease.

    Part 2:

    1. The governments in africa don’t strive to create growth, because they are getting aid from Europe, and don’t want that to stop. If there is no aid going to the government, it forces there to be a good government which actually manages to tax its population to make revenues.

    2+3. The best example of aid actually working was where the Marshall Plan was used to reconstruct Europe after World War II. Collier stresses though that troops and a removal of trade barriers contributed to this success in Europe, one can’t throw money at the problem.

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  10. Bastien Vogton 02 Feb 2010 at 10:15 pm

    1. What factors does Paul Collier point to that contribute to the “poverty traps” many African nations find themselves in? [3:07]

    A Manufacturing sector must be made in order to escape the poverty trap.

    Factors include:

    Some countries land locked makes development harder (if you cant get to your market its hard to trade)

    a lot of African nations cant get to the coast

    Valuable natural resources usually a curse

    Weak governments- small country

    Conflict trap- usually goes back into violence

    2. What have the two main goals of foreign aid policy been over the last 50 years, according to Dambisa Moyo? [4:45]

    1 trillion spent on foreign aid

    Increase growth and decrease poverty

    3. What are the “four horsemen of the African apocalypse?” How does Moyo think these four obstacles to development can best be overcome? [5:14]

    Disease and corruption

    Focusing on trade, forcing building alliances with India and china

    Focus on participating when markets come back

    Disenfranchised

    Catering to donors

    Cycle of despair

    4. What is Paul Collier’s opinion of the role of free trade in promoting human and economic development in Africa? What does he think about Africa’s traditional dependence on primary products and commodities? [7:45]

    Natural resources- foreign countries used to exploit africa

    Source of cheap raw materials- it cannot continue to be that way

    5. Before economic growth and development can occur, security must be achieved. Why is security, according to Collier, the number one obstacle to achieving meaningful development in Africa? [8:30]

    He does not want recreate colonialism, trying to encourage that without security development cant get going, Africa is insecure

    Security is hard in small poor countries, easy in big rich countries

    Send in peacekeepers- trying to set groundwork for development

    Moral duty rather than structured effort

    Different types of aid hasn’t worked

    6. In a dissenting view, Dr. Jeffery Sachs argues for more aid to Africa. What types of aid does Sachs believe is absolutely crucial for Africa to continue to receive? [10:39]

    Aid when focused in high priority areas.

    Sach says "AID dead" Bad claim by Dambisa.

    Money gives food and provides health care for Africa- dangerous to stop aid it would be a Cold and adverse decision

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  11. Bastien Vogton 02 Feb 2010 at 10:16 pm

    Part 2:

    1. Collier makes the claim that aid may create “moral hazard” in Africa. What is moral hazard and how could reducing aid to African governments actually “force good governance”? [5:30]

    Mistakes are made yet no one pays the price

    Moral hazard: u give them money and you get bad behavior, aid contribute d to bad leadership

    Some governments, 70 per cent of their budget is made of aid

    No domestic taxation

    Good leaders have to tax their own citizens,

    Menace of taxation makes governance

    The more messed up the country- the moreaid it gets

    If a leader achieves meaningful development the westwill not pump money(aid)

    Reducing aid:

    Long term development-

    Leadership is focused to become sustainability

    Focused to get off aid

    2. Is there any historic record of aid working? What strategies accompanied foreign aid that contributed to its greatest historical success? [8:10]

    Aid was invented to reconstruct Europe- (aid went and in hand with trade-) marshall

    Institutions set up- to help Europe (security measures 100 000 troops and the elimination of trade barriers- without those two dumping money will not work)

    3. What’s the main difference between Europe’s economic successful development during the second half of the 20th century and Africa’s unsuccessful experience during the same period? [9:00]

    Sovereignty in European community, (EC like USA), nations act as one in decision making-

    Conflict trap

    Bad governance

    Etc.

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  12. [...] is an excellent post by Jason Welker, that goes into the evaluation of aid and trade in more depth. The Bottom Billion: Aid and strategies for achieving economic development It also contains the second part of the above [...]

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  13. [...] is an excellent post by Jason Welker, that goes into the evaluation of aid and trade in more depth. The Bottom Billion: Aid and strategies for achieving economic development It also contains the second part of the above [...]

    Like or Dislike: Thumb up 0 Thumb down 0

  14. twilliamon 11 Feb 2012 at 4:02 am

    What’s the main difference between Europe’s economic successful development during the second half of the 20th century and Africa’s unsuccessful experience during the same period? [9:00]

    1) Moral hazard means that aid money will result in bad behavior because the African governments has the lack of incentives and are not forced to operate efficiently.

    2) Probably, I would say the Marshall plan aid when successfull for security, organization and etc after the second world war.

    3) Visibly, government in Europe are more cooperative, more open with the people compared to Africans.

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  15. twilliamon 11 Feb 2012 at 4:05 am

    1. Increase growth, 2. reduce poverty

    Any country would have like to have that, but are there any consequences ?

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  16. jjowetton 11 Feb 2012 at 5:35 am

    Part 1:

    1. -They are landlocked, meaning that they cannot access their market.
    -They have variable natural resources
    - They have weak governments
    - There is political and social conflict

    2. – To increase growth
    - To reduce poverty

    3.The four horsemen of the African apocalypse are war, poverty, disease and corruption. The best strategy to overcome these obstacles is through the building of alliances with other developing countries.

    4. Paul Collier seems to think that free trade as the engine out of poverty, as is being done by China. He is keen to see Africa moving into manufacturing rather than depending on the export of primary commodities.

    5. Paul Collier does not believe development is possible without security. He sees security as something that is very hard to achieve in small and poor countries, as opposed to rich and large countries.

    6. – Health/medical aid (ie. mosquito nets)

    - Aid that reduces short them suffering

    Part 2:

    1. Paul Collier refers to moral hazard as the bad behaviour that occurs as a consequence of giving government money. By giving money to a country, it sparks corruption and bad political leadership. Reducing aid forces good governance as it forces governments to tax their citizens higher which makes people want good governance. Furthermore, governments can make their own budgets and this creates development.

    2. Aid became apparent after the second world war, when the US provided financial aid to the European countries who needed o be literally reconstructed. The Marshall plan contributed to this great success.

    3. Countries worked together (formed a community, undertook cooperation and had great communication) in Europe but not in Africa.

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  17. tsekineon 12 Feb 2012 at 11:34 am

    Part 1:
    1. In the video, Paul Collier points out 4 factors that contribute to a “single trap” that many African nations find themselves in. The four traps are landlocked countries (or qualities of a landlocked country), a “paradoxical trap” of having abundant quantities in natural resources, and having weak governance within a country. Collier further explains that these three factors lead to the “fourth trap”, which is the “conflict trap” (violence, war, etc).

    2. Dambisa Moyo says that the two main goals of aid over the past 50 years in Africa have been to increase growth and reduce poverty in the nations. Moyo claims that the aid has failed in achieving the two goals.

    3. The “four horsemen of the African apocalypse” are war poverty, disease and corruption. Moyo believes that the solutions to these apocalypse is building alliances with emerging economies such as China and India would allow the nations to be able to be “ready” to participate in the “global stage”, by the time their markets come back.

    4. Paul Collier believes that free trade (or trade in general) would be the “engine” out of poverty. He also believes that African countries should move on to manufacturing rather than being completely dependent on primary commodities.
    5. Paul Collier simply says that without security, development cannot be achieved.

    6. Sachs believes that aid needs to be focused and targeted on “high priority areas” and that aid for vaccines, medicines, fertilizers should be continued to these countries, as “people would die”.

    Part 2:

    1. Moral hazard as Collier describes is when you give aid/money to others, and in return get “bad behavior”. He says that ‘bad’ leaders are made because of continued foreign aid, and that good leaders are made by the demand of citizens wanting a good leader.

    2. Collier says that aid was “invented” as a reconstruction of the world after the Second World War. The “success” would be the US providing aid to Europe and helping them govern their countries once again.

    3. The main difference between Europe’s success and Africa’s unsuccessful experience is that Europe had more collaboration and politicians has worked together/cooperated, whereas African communities has separated/split up into more countries instead of coming together.

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  18. tsekineon 12 Feb 2012 at 11:39 am

    For your response in Part 2 question 1:

    I believe what Collier was trying to say is that imposing tax on its citizens would force the citizens to demand a 'better leader', in which either the government can make current positions/status better or adopt new policies and what not. The "moral hazard" is simply a term used for countries that do not strive for growth (as you said) even when they receive aid.

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  19. nmolenkampon 12 Feb 2012 at 1:34 pm

    1)He points out that African nations that are land locked, have natural resources, a weak government and are trapped in violent conflicts often get into the poverty trap.
    2)The main goals of aid have been increase growth and reduce poverty.
    3)War, poverty, disease and corruption. Moyo believes that these ‘four horsemen of the African apoxalypse’ can be best overcome by creating alliances with emerging economies, such as India and China and that governments should prepare for when their markets come back, so they can participate immediately.
    4)He believes that free trade would be the key of movement for African countries that would set them out of poverty. He also thinks that African nations should rather focus on the production of manufactured goods rather than on primary products and commodities.
    5)Collier says that without security economic development cannot occur, because it causes an insecure West Africa, but he also knows that in small, poor countries security is very hard to achieve.
    6)Sachs says that aid must be focused on ‘high priority area’s’ and that aid in terms of medicines and vaccines is very important and that without people will die.

    Part 2:
    1)With ‘Moral Hazard’ Collins means that with aid, sometimes you get bad behavior back, so it is a disincentive to improve their own problems, because of the help, this could reduce the development of ‘a good government’.
    2)and 3) Yes, the example is from after World War II, when America helped out the European countries with the Marshall Plan. This ‘Went hand in hand with America’s trade policy’. The difference between the effects of aid on Europe and Africa is that in Europe politicians learned how to work together, this is what lacks in African countries. European governments brought sovereignty in their countries and this hasn’t happen in Africa.

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  20. nmolenkampon 12 Feb 2012 at 1:36 pm

    It is not only the lack of community in Africa, but also the facts that European leaders were able to work together and started to communicate, which did not happen in Africa.

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  21. Esther Fon 13 Feb 2012 at 3:38 pm

    1.What factors does Paul Collier point to that contribute to the “poverty traps” many African nations find themselves in? [3:07]
    Landlocked, valuable natural resources, weak governments, ‘conflict trap’ – a conflict causes more violence.

    2.What have the two main goals of foreign aid policy been over the last 50 years, according to Dambisa Moyo? [4:45]
    Increase growth, reduce poverty.

    3.What are the “four horsemen of the African apocalypse?” How does Moyo think these four obstacles to development can best be overcome? [5:14]
    Four horsemen: war, poverty, decease, corruption.
    Overcoming: focus on building alliances on emerging economies; focus on participating in the global market.

    4.What is Paul Collier’s opinion of the role of free trade in promoting human and economic development in Africa? What does he think about Africa’s traditional dependence on primary products and commodities? [7:45]
    Trade is the engine out of poverty, but not just primary products, they should move to manufacturers and more advanced stuff.

    5.Before economic growth and development can occur, security must be achieved. Why is security, according to Collier, the number one obstacle to achieving meaningful development in Africa? [8:30]
    Without security development can’t get going because of the insecurity. Security is hard to achieve in small, poor societies.

    6.In a dissenting view, Dr. Jeffery Sachs argues formore aid to Africa. What types of aid does Sachs believe is absolutely crucial for Africa to continue to receive? [10:39]
    Focused aid on high risk areas: AIDS medicine, anti-malaria, fertilizer, vaccines.

    Part 2:
    1.Collier makes the claim that aid may create “moral hazard” in Africa. What is moral hazard and how could reducing aid to African governments actually “force good governance”? [5:30]
    You give money and get bad behaviour. Aid ? bad leaders. Good leaders must be provoked, you need discipline.

    2.Is there any historic record of aid working? What strategies accompanied foreign aid that contributed to its greatest historical success? [8:10]
    Yes; reconstructing Europe after WWII, but there was also a big market – more open market. The US helped Europe govern itself better.

    3.What’s the main difference between Europe’s economic successful development during the second half of the 20th century and Africa’s unsuccessful experience during the same period? [9:00]
    Europe learnt to work together and share common decisions. Africa isn’t doing that. The leaders neither want to share power with either the citizens or the neighbouring countries.

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  22. Esther Fon 13 Feb 2012 at 3:49 pm

    @ nmolenkamp; so if we look at it historically, what Africa needs is a huge war that forces them to work together – as with the Europeans during WWII. It wasn't until WWI that we got the Allies, before that there were lots of wars within Europe. So I guess you could say that African countries need to become allies instead of opponents. To that the problem is that African countries are not divided based on a common culture and language but rather by colonial powers that did not care that they divided a group of people, or that they made a country with two opposing tribes.

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  23. Ece ERDEMon 13 Feb 2012 at 11:17 pm

    dfd

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  24. Ece ERDEMon 13 Feb 2012 at 11:19 pm

    Part 2:
    1. With aid, bad behaviours can be got back. When the country is poorer, the more money the country will get.
    2.Yes. The world war 2 is a good example. With Marshall plan, the European countries got help
    from the USA to save their economy.
    3.Europe learned to negotiate and work together during the hard times after World War 2, and came up with solutions that can be agreed by every European country. This is what Africa can’t do. The politicians don’t want to share their power and they compete rather than coming together to improve their country.

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  25. Ece ERDEMon 13 Feb 2012 at 11:20 pm

    1.1. Landlocked 2. Natural resources that are valuable 3. Weak governments 4. Violent conflicts
    2. Increasing the economic growth and reducing the poverty.
    3.War, poverty, decease, corruption.
    To overcome those alliances are important. The alliances shoul be built in diffferent countries and the global economy should be considered as well.
    4. Free trade should be the key element in Africa. Also, Africa should focus on secondary production, rather than focusing on primary products, the manufacturing should gain importance to get away from poverty.
    5.Security is very hard to achieve in small and poor countries. Security is important in terms of economic development, however it is really tough to achieve this in Africa.
    6Aids medicine, anti-malaria and vaccines and mosquito nets are crucial for Africa.

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  26. Dilan_Guneson 14 Feb 2012 at 12:12 am

    Part 1:
    1.What factors does Paul Collier point to that contribute to the “poverty traps” many African nations find themselves in? [3:07]
    -Paul Collier thinks that poverty traps are landlocked, having so much natural materials but no strong government to make use of those resources.
    2.What have the two main goals of foreign aid policy been over the last 50 years, according to Dambisa Moyo? [4:45]
    -The two main goals are reducing poverty and increasing the growth.
    3.What are the “four horsemen of the African apocalypse?” How does Moyo think these four obstacles to development can best be overcome? [5:14]
    -The four horsemen of the African apocalypse are war, disease, poverty and corruption. For overcome these African governments start to focus on building alliances with the new emerging economies such as China and India but also the capital market.
    4.What is Paul Collier’s opinion of the role of free trade in promoting human and economic development in Africa? What does he think about Africa’s traditional dependence on primary products and commodities? [7:45]
    -The free trade will create a positive environment in African economy and also rather than primary sector secondary production should be considered and should have more importance for getting over the poverty.
    5.Before economic growth and development can occur, security must be achieved. Why is security, according to Collier, the number one obstacle to achieving meaningful development in Africa? [8:30]
    -Security is a hard problem to solve and hard to get over in small and poor societies. If the security problem cannot be solved there cannot be a pure development because security is an important part of standards of living.
    6.In a dissenting view, Dr. Jeffery Sachs argues for more aid to Africa. What types of aid does Sachs believe is absolutely crucial for Africa to continue to receive? [10:39]
    -The crucial ones are about health for example vaccines, fertilizer, AIDS medications etc.

    Part 2:
    1.Collier makes the claim that aid may create “moral hazard” in Africa. What is moral hazard and how could reducing aid to African governments actually “force good governance”? [5:30]
    -Sometimes the aid help may face with the bad behaviors. Therefore, the government should solve its own problems by itself.
    2.Is there any historic record of aid working? What strategies accompanied foreign aid that contributed to its greatest historical success? [8:10]
    -After second world war aids became “popular”. As a part of Marshall plan the US has provided aid to European countries.
    3. What’s the main difference between Europe’s economic successful development during the second half of the 20th century and Africa’s unsuccessful experience during the same period? [9:00]
    -Countries worked together created a communication between themselves.

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  27. Nesibe Zirzakiranon 14 Feb 2012 at 8:18 am

    Part 1:

    1. What factors does Paul Collier point to that contribute to the “poverty traps” many African nations find themselves in? [3:07]

    He points out the negative side of having natural resources as a poverty trap as well as landlocked countries, poor governing of country, conflicts and wars since it makes it difficult to have a liberal market structure and free market.

    2. What have the two main goals of foreign aid policy been over the last 50 years, according to Dambisa Moyo? [4:45]

    The aim is to increase the growth and reduce the povery level.

    3. What are the “four horsemen of the African apocalypse?” How does Moyo think these four obstacles to development can best be overcome? [5:14]

    These are disease, war, poverty , corruption as four horsemen. He states that encouraging of trade and contructing alliance with other countries as means of solution.

    4. What is Paul Collier’s opinion of the role of free trade in promoting human and economic development in Africa? What does he think about Africa’s traditional dependence on primary products and commodities? [7:45]

    He thinks that free trade and use of manufacture industry in Africa can be a way to develop. He considers the dependence on primary products and commodities as not useful and not the right way to follow.

    5. Before economic growth and development can occur, security must be achieved. Why is security, according to Collier, the number one obstacle to achieving meaningful development in Africa? [8:30]

    He thinks that security is the fundamental of economic development and in African countries since they are both poor and having low level of education and small tribes are in existence, it is hard to achieve. Without security, the trade, the safety of markets is impossible.

    6. In a dissenting view, Dr. Jeffery Sachs argues for more aid to Africa. What types of aid does Sachs believe is absolutely crucial for Africa to continue to receive? [10:39]

    Health and medical aids in the short term for example nets, fertilizers to deal with mosquitoes.

    Part 2:

    1. Collier makes the claim that aid may create “moral hazard” in Africa. What is moral hazard and how could reducing aid to African governments actually “force good governance”? [5:30]

    Moral Hazard means it doesen't matter what the leaders of a country have done to the country. If they give a lot to the country it has less incentive of being ruled efficiently. If government stops supplying aid, then people will finally demand effective leadership.

    2. Is there any historic record of aid working? What strategies accompanied foreign aid that contributed to its greatest historical success? [8:10]

    The Marshall plan managed after World War 2.

    3. What’s the main difference between Europe’s economic successful development during the second half of the 20th century and Africa’s unsuccessful experience during the same period? [9:00]

    In the second half of 20th century, new markets were opened, new trade policies were in charge . The governments in Europe share a culture, history etc. with each other; therefore developing shares, trade connections and success. However in Africa, the governments were not tended to share their success and exchange goods with each other.

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  28. tgreeneon 14 Feb 2012 at 3:17 pm

    Part 1
    1. Landlocked, valuable natural resources, weak government, violent conflict
    2. Increase growth, reduce poverty
    3. War, poverty, disease, corruption; focus on trade and build alliances with emerging economies
    4. He thinks that trade will bring them out of poverty, and that African countries need to move from traditional exports of primary goods to more developed manufacturing
    5. Development can’t occur without security
    6. Aid for AIDS, vaccinations, fertilizer, etc.
    Part 2
    1. It’s the bad governance that results from the aid. When the governments get aid, it means they don’t have to tax their citizens as much, and so their citizens don’t demand a good government as strongly. If they stopped the aid, the opposite would occur.
    2. Yes, with the Marshall Plan in Europe to contain Communism. It was successful because it was part of a trade policy.
    3. Europe learned to cooperate and share sovereignty and decisions.

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  29. tgreeneon 14 Feb 2012 at 3:23 pm

    @ Nesibe
    I agree with your answers, though I think that moral hazard has more to do with other governments providing aid to a developing country, which decreases the incentive for that country to govern efficiently and honestly.

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  30. Noah Flanikenon 14 Feb 2012 at 3:58 pm

    Part 1
    1. What factors does Paul Collier point to that contribute to the “poverty traps” many African nations find themselves in?
    - There are four main “poverty traps”, which are being landlocked, having too many resources, having very weak governments, and the last is the conflict trap.

    2.What have the two main goals of foreign aid policy been over the last 50 years, according to Dambisa Moyo?
    - The two main goals of foreign aid goals have been to increase growth and to reduce poverty.

    3. What are the “four horsemen of the African apocalypse?” How does Moyo think these four obstacles to development can best be overcome?
    - The “four horsemen of the African apocalypse” are war, poverty, disease and corruption. Moyo believes that the solution is to focus on trade between the African countries and the emerging markets such as China.

    4. What is Paul Collier’s opinion of the role of free trade in promoting human and economic development in Africa? What does he think about Africa’s traditional dependence on primary products and commodities?
    - Paul Collier thinks that free trade is very important in promoting human and economic development, however he believes that Africa has to go beyond the traditional trade of commodities and add value to its trades. He thinks that Africa needs to break into manufacturing.

    5. Before economic growth and development can occur, security must be achieved. Why is security, according to Collier, the number one obstacle to achieving meaningful development in Africa?
    - Paul Collier thinks that security has to be achieved since conflict is being compounded by the other “poverty traps.” If conflict can be resolved, it would make it easier to solve the other “poverty traps”

    6. In a dissenting view, Dr. Jefffery Sachs argues for more aid to Africa. What types of aid does Sacks believe is absolutely crucial for Africa to continue to receive?
    - Dr. Jeffery Sachs argues that aid needs to be very focused and he emphasizes that aid needs to be focused on medicines, health, bed nets, food, and other things that keep people healthy.

    Part 2
    1. Collier makes the claim that aid may create “moral hazard” in Africa. What is moral hazard and how could reducing aid to African governments actually “force good governance”?
    - This moral hazard is that the aid countries are giving to Africa is not being used well. Governments are actually becoming corrupt because of the money they are receiving as aid and this aid is not being used to help the population.

    2. Is there any historic record of aid working? What strategies accompanied foreign aid that contributed to its greatest historical success?
    - Paul Collier talks about using aid to reconstruct Europe after World War II however this aid was accompanied by the US help to govern Europe better.

    3. What’s the main difference between Europe’s economic successful development during the
    - Europe developed a positive relation between the people and the government. The people were part of the decisions made. On the other hand, African governments are keeping the aid for themselves and they are not sharing the decisions or money with the people.

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  31. Noah Flanikenon 14 Feb 2012 at 4:06 pm

    You bring up an interesting point about sharing power with neighboring countries. If Africa wants to start trading with other countries the need to develop better relations with their trading partners.

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  32. Bryan_DiLauraon 14 Feb 2012 at 5:25 pm

    Part 1:
    1. Being landlocked, having valuable natural resources, weak governance, which all lead to conflict.
    2. Increase growth and reduce poverty
    3. War, poverty, disease, and corruption. Can overcome by focusing on trade ("Trade not aid").
    4. He agrees, and thinks that a manufacturing sector is the way for Africa to go.
    5. Without security, nothing can get accomplished. Anything that is put in place then is easily taken down. This is very hard to achieve in poorer countries.
    6. Medicine/other medical aid. This will prevent suffering in the short run.

    Part 2:
    1. A moral hazard is when there is aid given, it is a disincentive for the leaders to run the country efficiently. If aid stops, the people will demand a strong, functioning leadership.
    2. Marshall plan after WWII
    3. New markets were opened after WWII. The problem is that African countries are different from European countries, as the African leaders don't want to help, and they are not connected in the same way. Because of this, development cannot take place.

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  33. Bryan_DiLauraon 14 Feb 2012 at 5:28 pm

    I think that decreasing foreign direct investment would mean a slowing in economic growth in the short run, but in the videos didn't they say that in the long run it is better because the countries can become autonomous? Your answer to question 5 seems to go against this idea.

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  34. Behiye Da?demiron 14 Feb 2012 at 5:47 pm

    PART 1
    1-Paul Collier mentions 4 points. They are being landlocked, being dependent valuable natural resources, having bad governance, and civil wars.
    2-One of them is to increase growth and the other one is to reduce poverty.
    3-Four horsemen of the African apocalypse are war, poverty, disease, and corruption. One of the actions can be to concentrate on trade not on traditional market while building alliances with some countries like China. Focusing on capital market is important to be ready to participate in the whole market.
    4-Paul Collier thinks trade is essential for Africa in order to overcome poverty. He thinks Africa needs to give more importance to manufacturing as well as focusing on second commodities.
    5-He mentions that without security development cannot be made. It is hard for poor countries to have a secure environment.
    6-Dr. Jeffery Sachs claims that Africa needs help especially in terms of medicine and food in order to prevent millions of people from death. Some helps should consist of vaccinations and bags of fertilizers for farmers.

    PART 2
    1-According to him, moral hazard happens when there is a bad behaviour in return of money aid. Reducing aid to African governments can force them to tax the inhabitants to provoke more demand.
    2-There is a historic record to support Europe in order to overcome the wrecks of World War 2. The aid was made by America as a trade and secure policy. America supported Europe by setting up some intuitions and encouraging governing themselves.
    3-The inhabitants and the governors in Europe could learn how to deal with the problems and build consciousness about how to get rid of this kind of situations. However, in Africa this is not valid. The leaders in Africa have tended not to share their power with anybody. That is why; it prevented the countries to develop and to improve and build awareness among the citizens.

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  35. Behiye Da?demiron 14 Feb 2012 at 5:56 pm

    Hello Esther, I agree with your answer, but I think that in order to learn its power with neighbouring countries, first of all African countries need to cope with how to cooperate on its own.

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  36. Asucan Odcikinon 14 Feb 2012 at 8:27 pm

    Part 1:
    1)The first trap is landlocked which makes hard to get in the market, the other one is having natural resources which can be seen as a good thing but it can become a curse which is a paradoxical trap and the other one is weak governments which is the conflict trap.
    2)The main two goals are to increase growth and to reduce poverty.
    3)The four horsemen of Africa’s apocalypse are war, poverty, disease, and corruption. In order to overcome they need to focus on building alliances on emerging economies such as India and China, also they need should participate in the global market. They need to focus on ensuring.
    4)He thinks that Africa should give importance to manufacturing and second commodities in order to strength its economy. Also they need t make trade to handle poverty.
    5)He states that security should be maintained in order to have development. And he also says it is very hard for poor countries to have security.
    6)Dr. Jeffery Sachs states that Africa needs food and medicine to protect its citizens’ health.
    Part 2:
    1)A moral hazard is the aid that faces with bad behaviors as a result of bad governance.
    2)There is a historic record which is the aid that was given to Europe after World War II for reconstruction of Europe and it was a policy of the USA to make Europe strong again.
    3)The main difference is about the leaders’ view on the topic. African leaders do not want to share their power with their citizens to make their country a better place therefore the citizens suffers from bad economic situations. On the other hand, Europeans learned to work together and they created the best solutions to overcome their problems by creating awareness among people in Europe. That’s why in Africa as the leaders and citizens are not connected and they do not share any power there is no improvement and development in economy.

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  37. Asucan Odcikinon 14 Feb 2012 at 8:29 pm

    I agree with your answers and you made a good and brief explanations for each question but I think as you answered the last question of part 2 by saying new markets were opened after WWII you could have eleborated on that topic more.

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  38. Selin Tatlicanon 14 Feb 2012 at 9:16 pm

    PART 1

    1)What factors does Paul Collier point to that contribute to the “poverty traps” many African nations find themselves in? [3:07]
    Paul Collier points out first landlockered, then natural resources, weak governments and violence conflicts.

    2)What have the two main goals of foreign aid policy been over the last 50 years, according to Dambisa Moyo? [4:45]
    The main goals of foreign aid policy are increasing the economical growth and reducing the poverty.

    3)What are the “four horsemen of the African apocalypse?” How does Moyo think these four obstacles to development can best be overcome? [5:14]
    War, poverty, disease and corruption are the four horsemen of the African apocalypse. Moyo thinks that these four obstacles to development can best be overcome by alliances, with this way the other countries also should be considered to overcome.

    4)What is Paul Collier’s opinion of the role of free trade in promoting human and economic development in Africa? What does he think about Africa’s traditional dependence on primary products and commodities? [7:45]
    Paul Collier believes that free trade is the key for Africa. He says Africa should focus on secondary products rather than primary products in order to end up the poverty.

    5)Before economic growth and development can occur, security must be achieved. Why is security, according to Collier, the number one obstacle to achieving meaningful development in Africa? [8:30]
    According to Collier, security is very important in terms of development of economy, however to achieve security is very hard in Africa.

    6)In a dissenting view, Dr. Jeffery Sachs argues for more aid to Africa. What types of aid does Sachs believe is absolutely crucial for Africa to continue to receive? [10:39]
    Dr. Jeferry Sachs thinks that aids in terms of medicine, vaccines, anti-malaria and mosquito mets are absolutely crucial for Africa to continue to receive.

    PART 2
    1)Collier makes the claim that aid may create “moral hazard” in Africa. What is moral hazard and how could reducing aid to African governments actually “force good governance”? [5:30]
    Collins means that with aid, some bad behaviors can be get back, for poorer countries this will reduce the problems with more money to earn.

    2)Is there any historic record of aid working? What strategies accompanied foreign aid that contributed to its greatest historical success? [8:10]
    Yes, there is historical record of aid working such as the Second World War. The historical success is supplied with the help of USA, with the economical support of USA.

    3)What’s the main difference between Europe’s economic successful development during the second half of the 20th century and Africa’s unsuccessful experience during the same period? [9:00]
    The main difference between Europe’s economical successful development and Africa’s unsuccessful experience is because of not working collaboratively. European countries are working collaboratively after the war but African countries did not do that, so they could not reach to success.

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  39. Selin Tatlicanon 14 Feb 2012 at 9:20 pm

    Hi Asucan, I agree with your answers to the questions. They are very brief and clear, good to understand the text.

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  40. AydaAydon 14 Feb 2012 at 9:55 pm

    PART-1
    1.)What factors does Paul Collier point to that contribute to the “poverty traps” many African nations find themselves in? [3:07]
    The factors that contribute poverty traps many African nations find themselves in are being landlocked, having civil wars in their own countries, having a bad governance and dependent to natural resources.
    2.)What have the two main goals of foreign aid policy been over the last 50 years, according to Dambisa Moyo? [4:45]
    The goals of foreign aid policy are to reduce the poverty level and to increase the growth.
    3.)What are the “four horsemen of the African apocalypse?” How does Moyo think these four obstacles to development can best be overcome? [5:14]
    The four horsemen of the African apocalypse are disease, war, corruption and lastly poverty. Moyo thinks that by contructing alliance with other countries, development can best be overcome.
    4.)What is Paul Collier’s opinion of the role of free trade in promoting human and economic development in Africa? What does he think about Africa’s traditional dependence on primary products and commodities? [7:45]
    With free trade and the use of manufacture, Africa may promote human and economic development. In Paul Collier’s opinion, depending on primary products in Africa should be a way to be followed to get over the bad economy.
    5.)Before economic growth and development can occur, security must be achieved. Why is security, according to Collier, the number one obstacle to achieving meaningful development in Africa? [8:30]
    Safety of markets is significant in maintaining a good economic level and a sustainable growth. Plus, the security is something hard to achieve in poor and not-educated countries.
    6.)In a dissenting view, Dr. Jeffery Sachs argues for more aid to Africa. What types of aid does Sachs believe is absolutely crucial for Africa to continue to receive? [10:39]
    The nets, fertilizers to avoid the mosquitos, meaning the health and medical aids.

    PART-2
    1.)Collier makes the claim that aid may create “moral hazard” in Africa. What is moral hazard and how could reducing aid to African governments actually “force good governance”? [5:30]
    Moral hazard is the aid with bad behavior, because of bad governance.
    2.)Is there any historic record of aid working? What strategies accompanied foreign aid that contributed to its greatest historical success? [8:10]
    The Marshall Plan (the money given to Europe and the countries along by the USA.) However, I believe that the aim in supplying aid to Europe was not to reconstruct there, but in fact preventing the influence of Union of Soviet Socialist Republics from European countries.
    3.)What’s the main difference between Europe’s economic successful development during the second half of the 20th century and Africa’s unsuccessful experience during the same period? [9:00]
    Against the unsuccessful situations, Europe may deal with those problems by building a consciousness, as the governors do. However, in Africa’s situation, the leaders there are having the power by just themselves; and so Africa faced with an unsuccessful experience.

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  41. Jackson Moteon 15 Feb 2012 at 3:28 am

    Part 1:
    1.What factors does Paul Collier point to that contribute to the “poverty traps” many African nations find themselves in? [3:07]

    Factors that contribute to poverty traps in many African nations are countries being landlocked and not being able to expand their markets, valuable natural resources which can force a country’s economy to revolve around on resource, weak governments which can contribute to the slowing of development of these countries and, finally the conflict trap in which a country is violent with another which can last a very long time and hurt an economy.

    2.What have the two main goals of foreign aid policy been over the last 50 years, according to Dambisa Moyo? [4:45]

    The two main goals of foreign aid policy have over the last 50 years have been to increase growth and to reduce policy. In terms of the metrics for these goals, both have failed.

    3.What are the “four horsemen of the African apocalypse?” How does Moyo think these four obstacles to development can best be overcome? [5:14]

    War, poverty, disease, and corruption. Moyo believes that these obstacles can be overcome by focusing on trade with other developing nations to promote global development.

    4.What is Paul Collier’s opinion of the role of free trade in promoting human and economic development in Africa? What does he think about Africa’s traditional dependence on primary products and commodities? [7:45]

    Paul Collier believes that developing nations in Africa are more focused on the needs of donors to receive more money rather than to solve the fundamental economic problems themselves. Rather than these countries keeping themselves accountable for their own economic development, Collier believes that these nations need to develop their own fundamentally sound economy.

    5.Before economic growth and development can occur, security must be achieved. Why is security, according to Collier, the number one obstacle to achieving meaningful development in Africa? [8:30]

    Security must be achieved to prevent the unneeded changing of governments such as a coup d’etat. This would keep economies consistent and free of human error.

    6.In a dissenting view, Dr. Jeffery Sachs argues for more aid to Africa. What types of aid does Sachs believe is absolutely crucial for Africa to continue to receive? [10:39]

    Dr. Jeffery Sachs believes that more aid to children is needed to prevent malnutrition and to allow these children a chance to receive an education.

    Part 2:
    1.Collier makes the claim that aid may create “moral hazard” in Africa. What is moral hazard and how could reducing aid to African governments actually “force good governance”?
    Moral hazard is a lack in effort to improve a countries economy. Reducing aid will force food governance by making a country’s economy fully dependent on the import and export of food.

    2.Is there any historic record of aid working? What strategies accompanied foreign aid that contributed to its greatest historical success? [8:10]

    The Marshall Plan developed by the United States is a record of working aid after the Second World War. Strategies that accompanied this foreign aid included a plan for the target country to exit the dependency of the source country’s aid.

    3.What’s the main difference between Europe’s economic successful development during the second half of the 20th century and Africa’s unsuccessful experience during the same period? [9:00]

    In Europe’s successful economic development, the governments were willing to work together and there was a low amount of corruption.

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  42. Quinn Richardsonon 15 Feb 2012 at 3:29 am

    Part 1:
    1.There are several facts that Paul Collier points to however the main ones are the fact that many developing countries are landlocked which restricts their access to foreign markets. The second one is the abundance of natural resources which can actually plague a nation in the long run due to falling prices of raw goods.
    2.The two main goals have been to increase the growth of developing nations as well as decreasing the poverty within those nations.
    3.They are poverty, war, disease, and corruption. According to Ms. Moyo, these nations need to expand their trade horizons with other emerging markets which would attract investment into these countries.
    4.He believes that Africa should put emphasis on its manufacturing sectors and finished goods rather than primary goods. This would increase employment and alleviate poverty. He believes that Africa’s dependence on the export of primary goods has turned out to be curse rather than a blessing. These goods do not encourage employment on the scale which manufacturing does.
    5.Security essentially ensures confidence in the market and removes speculation that could be harmful for potential investors. Security in the form of property rights is also essential for any nation to develop.
    6.Dr. Sachs believes that much of the aid given to Africa is essential. He argues that many lives are dependent on the giving of such aid. Examples of this kind of aid include the giving of mosquito nets and food stuffs.

    Part 2:
    1.The moral hazard is that much of the aid received by these developing countries in Africa does not make its way to the people in need as a result of bad governance. It is an incentive to continue such governance.
    2.The example given in the video is the American aid given to Europe following WW2. The aid was structured in a way such that the countries could be rebuilt and its markets opened to the world.
    3.The environment for trade in Africa is not nearly as welcoming as it is in Africa. The continent is rife with despot leaders which put no emphasis on its citizens as did the European ones during the 20th century.

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  43. Jackson Moteon 15 Feb 2012 at 3:32 am

    The Marshall Plan was indeed a successful record of aid in history however what aspect of this plan made it so successful?

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  44. Quinn Richardsonon 15 Feb 2012 at 3:45 am

    @Asucan Odcikin

    I completely agree that much of what has been suffered by the Africans themselves has been a result of corrupt bureaucracy and institutions. I order for the developing nations in Africa to alleviate themselves out of poverty, governments need to be held more accountable to its people. They can then follow the paths of their European counterparts as they did in the 20th century and become more developed.

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  45. Heppleron 15 Feb 2012 at 4:59 am

    Part 1:

    What factors does Paul Collier point to that contribute to the “poverty traps” many African nations find themselves in? [3:07]
    weak governments, valueless resources, landlocked, conflict

    What have the two main goals of foreign aid policy been over the last 50 years, according to Dambisa Moyo? [4:45]
    increase growth, decrease poverty

    What are the “four horsemen of the African apocalypse?” How does Moyo think these four obstacles to development can best be overcome? [5:14]
    war, poverty, disease, corruption

    What is Paul Collier’s opinion of the role of free trade in promoting human and economic development in Africa? What does he think about Africa’s traditional dependence on primary products and commodities? [7:45]
    He thinks that African countries should develop manufacturing rather than solely the primary goods they have been exporting to create employment.

    Before economic growth and development can occur, security must be achieved. Why is security, according to Collier,
    the number one obstacle to achieving meaningful development in Africa? [8:30]
    because countries are small and poor.

    In a dissenting view, Dr. Jeffery Sachs argues for more aid to Africa. What types of aid does Sachs believe is absolutely crucial for Africa to continue to receive? [10:39]
    in kind aid –> medical aid, farm equipment

    Part 2:

    Collier makes the claim that aid may create “moral hazard” in Africa. What is moral hazard and how could reducing aid to African governments actually “force good governance”? [5:30]
    It is easier to take foreign money and make bad decisions then it is to use domestically earned money and make bad decisions. Reducing aid would make the governments more accountable

    Is there any historic record of aid working? What strategies accompanied foreign aid that contributed to its greatest historical success? [8:10]
    Marshall Aid worked in Europe because of the increased American presence both militarily and the trade stipulations that were applied to it.

    What’s the main difference between Europe’s economic successful development during the second half of the 20th century and Africa’s unsuccessful experience during the same period? [9:00]
    There is not a large presence and the opening of new markets. There is also continued violence where Europe was experiencing peace and working together, in blocs, to rebuild.

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  46. Will Overhauseron 15 Feb 2012 at 5:03 pm

    1. Landlocked, natural resources, weak governments, conflict
    2. Increase growth, reduce poverty
    3. War, poverty, disease, corruption; focus on trading with emerging countries and capital markets
    4. Trade is the engine out of poverty; moving beyond traditional commodities and into manufacturing
    5. Without security, development can't happen
    6. Aid focused on medicine, bed nets, vaccinations, fertilizer

    1.Moral hazard is when you give money and then they don’t use it well since they don’t appreciate the value of it. Taxation forces good governance by making the citizens care about where the money's going
    2. The Marshall Plan after WWII worked thanks to opening up new markets and increasing trade between USA and Eurpoe as well as better governing in Europe
    3. Politicians cooperated in Europe but this has not happened in Africa so the countries have not shared common decisions. Leaders don’t want to share power with anyone, not other countries nor their citizens.

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  47. Mehmet M Sumaon 15 Feb 2012 at 9:07 pm

    Part 1
    1. Countries such as Zambia are landlocked. This means that smaller markets which are hard to access. The other two factors are dependence on natural resources and weak governance. These three factors lead to the conflict factor which is the most serious one persisting in a long-term.
    2.Two original goals were to increase growth and reduce poverty.
    3. War, poverty, disease and corruption lead to the apocalypse of Africa. She suggests building alliances with the emerging markets such China and India instead of the USA and Europe.
    4. He believes that free market is the path to stop the poverty. He suggests that Africa should stop being dependent on primary commodities.
    5. Security leads to confidence in the market and attracts investment into the market. However, small and poor countries such as West African countries are insecure.
    6.Sachs believes that aid is crucial especially in the field of medicine. He harshly criticizes people who consider aid as harmful because he does consider the events from a more humanitarian perspective.
    Part 2
    1. He thinks that the aid causes bad behavior and creates bad leaders. The aid eliminates the demand for good leaders.
    2. Marshall aid plan which aimed to reconstruct Europe's economy was successful. It was a big trade policy. It maintained a greater security and governance of Europe.
    3. European politicians cooperated with each other to achieve the plan. On the other hand, African politicians are not submissive and cooperative.

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  48. gökçe gündüzon 20 Feb 2012 at 4:02 pm

    1.There are some countries which are landlocked. This means that smaller markets which are hard to access. The other two factors are dependence on natural resources and weak governance. These three factors lead to the conflict factor which is the most serious one persisting in a long-term.
    2. Increase growth and reduce poverty.
    3. War, poverty, disease, corruption; focus on trading with emerging countries and capital markets
    4. Trade is the engine out of poverty; moving beyond traditional commodities and into manufacturing
    5. Security leads to confidence in the market and attracts investment into the market. However, small and poor countries such as West African countries are insecure.
    6. It is believed that aid is crucial especially in the field of medicine. He harshly criticizes people who consider aid as harmful because he does consider the events from a more humanitarian perspective.

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  49. dnyanzion 02 Feb 2013 at 6:51 pm

    Part 1:

    1.What factors does Paul Collier point to that contribute to the “poverty traps” many African nations find themselves in?
    One of the poverty traps is with countries that are landlocked and hence cannot get to the market easily. Another factor is that countries that are rich in natural resources may be cursed, as it could cause conflict and wars. The next would be weak governments and fourth factor being violent conflicts which may last years and even if they are stopped there may be new conflicts.

    2.What have the two main goals of foreign aid policy been over the last 50 years, according to Dambisa Moyo?
    Increase growth and reduce poverty.
    3.What are the “four horsemen of the African apocalypse?” How does Moyo think these four obstacles to development can best be overcome?
    The’ four horsemen of the African apocalypse’ are war, poverty, disease and corruption. She believes that these could be overcome through trade and not aid. She also believes there should be an increased amount of trade and alliances built with emerging markets like China as opposed to those in Europe and the US.

    4. What is Paul Collier’s opinion of the role of free trade in promoting human and economic development in Africa? What does he think about Africa’s traditional dependence on primary products and commodities?
    He believes free trade is the most effective way in promoting human and economic development in Africa, additionally he thinks that African countries should produce manufactured goods as these have a greater value and their prices are less volatile.

    5.Before economic growth and development can occur, security must be achieved. Why is security, according to Collier, the number one obstacle to achieving meaningful development in Africa?
    Because without security no development can occur as foreign investment will not occur. Collier also says that security is very difficult for small and poor countries to achieve as opposed to rich and large ones.

    6.In a dissenting view, Dr. Jeffery Sachs argues for more aid to Africa. What types of aid does Sachs believe is absolutely crucial for Africa to continue to receive?
    Sachs mentioned that aid should be focused on ‘high priority area’s’ such as medicine for people with AIDS, vaccinations, mosquito nets, and fertilizers which would help farmers feed themselves and their family.

    Part 2:

    1.Collier makes the claim that aid may create “moral hazard” in Africa. What is moral hazard and how could reducing aid to African governments actually “force good governance”?
    Collier says that ‘You give them money and you get bad behavior.’ Aid contributes to bad leadership and governance and makes leaders corrupt. Without aid governments would need to tax their people higher and this would make them want good governance.

    2.Is there any historic record of aid working? What strategies accompanied foreign aid that contributed to its greatest historical success?
    Yes, when the US gave aid to European countries after the Second World War, the United States also assisted Europe in how to better govern itself.

    3.What’s the main difference between Europe’s economic successful development during the second half of the 20th century and Africa’s unsuccessful experience during the same period?
    African leaders do not want to share power with its people or neighbors whereas in Europe politicians worked together and collaborated.

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  50. dnyanzion 02 Feb 2013 at 6:59 pm

    @# gökçe gündüz
    Your answers and good and concise. I would just add that Sachs also mentionned aid in terms of fertilizers for farmers to feed their families, and not only in the field of medicine.

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  51. simcajon 04 Feb 2013 at 9:05 pm

    Part 1:
    1. What factors does Paul Collier points to that contribute to the “poverty traps” many African nations find themselves in? [3:07]
    Being landlocked, having a lot of natural resources, really weak governments and the ongoing conflicts.
    2. What have the two main goals of foreign aid policy been over the last 50 years, according to Dambisa Moyo? [4:45]
    1. to increase growth 2. Reduce poverty
    3. What are the “four horsemen of the African apocalypse?” How does Moyo think these four obstacles to development can best be overcome? [5:14]
    It is war, poverty, disease and corruption. They can overcome them by focusing on trade (building alliance with new emerging economies).
    4. What is Paul Collier’s opinion of the role of free trade in promoting human and economic development in Africa? What does he think about Africa’s traditional dependence on primary products and commodities? [7:45]
    He sees free trade as an opportunity for Africa to move out primary commodities.
    5. Before economic growth and development can occur, security must be achieved. Why is security, according to Collier, the number one obstacle to achieving meaningful development in Africa? [8:30]
    Security is hard in small and poor countries to be achieved.
    6. In a dissenting view, Dr. Jeffery Sachs argues for more aid to Africa. What types of aid does Sachs believe is absolutely crucial for Africa to continue to receive? [10:39]
    Health care: (Anti-malaria, vaccination) and agriculture (fertilizers).
    Part 2:
    1. Collier makes the claim that aid may create “moral hazard” in Africa. What is moral hazard and how could reducing aid to African governments actually “force good governance”? [5:30]
    More aid equals more corruption within the government. Therefore if aid is withdrawn, people in the country may decide to take a stand for themselves, and demand better leadership before receiving any actual aid.
    2. Is there any historic record of aid working? What strategies accompanied foreign aid that contributed to its greatest historical success? [8:10]
    The marshal plan after WW2.
    3. What’s the main difference between Europe’s economic successful development during the second half of the 20th century and Africa’s unsuccessful experience during the same period? [9:00]
    The main differences are Government Corporation and the sharing of power between neighbors in the EU and the citizens.

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  52. zbrounson 05 Feb 2013 at 6:29 pm

    Part 1
    1. Collier says that land lock, dependence on natural resources, weak governance, and civil conflict all contribute to poverty traps.

    2. The two main goals of foreign aid policy have been to increase economic growth and to reduce poverty.

    3. War, poverty, disease and corruption. She believes these can be overcome through trade with countries such as China and India, as well as forming alliances with these countries rather than participating in “traditional” markets such as those in the United States and Europe.

    4. The first step in African economic growth is building a relationship and accountability between the government and their people. He also believes that to grow, Africa must move beyond their “traditional” markets of primary commodities and begin to manufacture goods.

    5. Security would prevent civil conflict, and lessen the effect of the other three factors. Security is important because it allows the country to develop without setbacks or restarts in government and society.

    6. Sachs believes that the aid is necessary, and that removing the aid would be “dangerous”. He says that if the aid is targeted appropriately, by being used on medical care, HIV/AIDS prevention, and commodities. Furthermore, he says that this type of aid makes the difference between a person living and a person dying.

    Part 2
    1. Moral hazard is when governments use aid ineffectively. By reducing aid, the governments would be forced to use the money in a more effective way or to tax their citizens. As Collier explains, when governments tax citizens, it is a way of provoking the population into “demanding good governance”.

    2. Yes, the Marshall Plan after World War 2 was successful in encouraging economic growth in Europe. However, it was only effective in accompaniment with the United States’ change in policies. The US was involved in European markets, as a major trade partner. The US also changed its isolationist policy from before the war and became involved in a number of European countries not only economically but politically. The aid plan worked because the US was determined to change and affect the governments of Europe as well as the economies.

    3. Part of Europe’s successful development lies with the fact that their leaders and governments strove to work together to make change. The EU was created, a testament to their teamwork, and this shared economic power in turn created an incredibly successful economy. Africa does not have the same attitude toward economic growth, governance, and politics. Their leaders’ reluctance and refusal to share power and trade may restrict them from making any movement forward economically.

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  53. zbrounson 05 Feb 2013 at 6:32 pm

    @ #simcaj

    When talking about why security is necessary, I think it’s important to consider the link between economic development and political stability. With more security, the government is more stable and more able to do a better job. Great post!

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  54. sophie zhouon 21 Feb 2013 at 10:13 am

    Part 1:
    1. What factors does Paul Collier point to that contribute to the “poverty traps” many African nations find themselves in? [3:07]

    The first factor is the fact that many of them are landlocked. Second is having valuable natural resources. The third is really weak governments. All those three factors lead to the fourth one, which is violent conflict.

    2. What have the two main goals of foreign aid policy been over the last 50 years, according to Dambisa Moyo? [4:45]

    One goal was to increase growth and the second was to reduce poverty.

    3. What are the “four horsemen of the African apocalypse?” How does Moyo think these four obstacles to development can best be overcome? [5:14]

    The “four horsemen of the African aprocalypse” are war, poverty, disease and corruption. African government should start to focus on building alliances with the new emerging economics such as China and India.

    4. What is Paul Collier’s opinion of the role of free trade in promoting human and economic development in Africa? What does he think about Africa’s traditional dependence on primary products and commodities? [7:45]
    Free trade is essential in Africa. Also, Africa should focus on secondary production, rather than primary products.

    5. Before economic growth and development can occur, security must be achieved. Why is security, according to Collier, the number one obstacle to achieving meaningful development in Africa? [8:30]
    Security is very hard in countries which are really poor and really small. Security is important in terms of economic development, however it is really tough to achieve this in Africa.

    6. In a dissenting view, Dr. Jeffery Sachs argues for more aid to Africa. What types of aid does Sachs believe is absolutely crucial for Africa to continue to receive? [10:39]
    The crucial ones are about health for example vaccines, fertilizer, AIDS medications etc.

    Part 2:
    1. Collier makes the claim that aid may create “moral hazard” in Africa. What is moral hazard and how could reducing aid to African governments actually “force good governance”? [5:30]

    When the governments get aid, they don’t have to tax their citizens as much, as a result, their citizens don’t demand a good government as strongly. If they stopped the aid, the opposite would occur.

    2. Is there any historic record of aid working? What strategies accompanied foreign aid that contributed to its greatest historical success? [8:10]
    The Marshall plan after world war II.
    3. What’s the main difference between Europe’s economic successful development during the second half of the 20th century and Africa’s unsuccessful experience during the same period? [9:00]
    The difference between the effects of aid on Europe and Africa is that in Europe politicians learned how to work together and make decisions together, which is not seen in African countries. African leaders are not willing to share power with its citizens and/or the neignbouring countries.

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  55. cbowieon 23 Jul 2014 at 7:21 am

    Part 1
    1.Countries being ‘land-locked’, their natural resources and poor governance.
    2.To increase growth and reduce poverty.
    3.The ‘four horsemen’ are war, poverty, disease and corruption. It seems largely a ‘trade not aid’ approach has been favoured.
    4.That free trade should play an important role, and that secondary products should take focus, rather than primary products.
    5.He believes development cannot be achieved without security, however this is quite difficult to implement in these smaller, poorer countries.
    6.He argues for medical aid, aid to reduce short term suffering.
    Part 2
    1.In some regards, aid acts as an incentive not to develop, as developed countries do not receive aid. The government can let other countries pay for improvements, rather than trying to fix the state of their country themselves.
    2.The Marshall plan after WW2. The removal of trade barriers and security seem to have been factors in this success.
    3.Sovereignty in European community seems to have been the deciding factor, as well as security and a lack of corruption.

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  56. mrichaloton 29 Jul 2014 at 6:31 am

    Part 1:

    1- Some nations are landlocked, meaning that smaller markets are harder to access. Moreover, dependence on natural resources and weak governance also lead to the conflict factor persisting in the long-term.
    2- The two main goals of the aid were to Increase growth and reduce poverty.
    3- The "four horsemen of the african apocalypse" are war, poverty, disease, and corruption. According to Moyo, these can be overcome with a focus on trading with emerging countries and capital markets (reduction of trade barriers).
    4- Collier believes trade is the engine out of poverty, and that Africa is better off moving beyond traditional commodities and into manufacturing
    5- According to Collier, security leads to confidence in the market and attracts investment into the market. However, small and poor countries such as West African countries are insecure and may be obstacle to security.
    6- Sachs believes that aid is crucial especially in the field of medicine. He harshly criticizes people who consider aid as harmful because he does consider the events from a more humanitarian perspective.

    Part 2:

    1-According to Collier, moral hazard refers to the "bad behaviour" observed in return of money aid. A reduction in aid to African governments can force them to tax the inhabitants to provoke more demand.
    2-There is a historic record of aid working. The Marshall plan at the end of WW2 (made by America as a trade and secure policy) supported Europe by setting up some intuitions and encouraging autonomic governing.
    3-The inhabitants and politicians in Europe could learn how to solve problems and build consciousness about how to improve situations. However, in Africa was not successful in this sense, most likely due to a lack of basic levels of education and possible corruption. The leaders in Africa tended not to share their power, preventing countries to develop and to improve awareness amongst citizens.

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  57. mrichaloton 29 Jul 2014 at 6:45 am

    Hi Cassie, I agree with your answers to the questions. They are very brief and clear, and show a good to understand the text! Good job!

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