Beyond foreign aid – recommendations to a House of Commons enquiry

  1. Reducing trade barriers that limit exports from poor countries: implementing aspects of the Doha Round negotiation could create real income gains for low- and lower middle-income countries of more than £28 billion a year. 
  2. Facilitating private investment, especially for infrastructure: lack of infrastructure financing for African countries may be reducing growth in some countries by as much as 2% a year.
  3. Protecting global environmental public goods, which create substantial value for poor countries (fisheries alone contribute an estimated £17 billion a year to African economies), and the burden of whose depletion falls disproportionately on low-income countries.
  4. Facilitating more research and development and technology transfer, ranging from new or cheaper pharmaceutical products to intellectual property that can be used by firms in poor countries. e) Increasing the proportion of migration that comes from developing countries: even temporary migration of poor workers to rich countries creates massive annual income gains far larger than any aid programme.
  5. Promoting security. While civil wars have a human cost and set back economic growth, the UK spends exports £12 billion worth of military and dual-use equipment to states on the Foreign and Commonwealth Office’s list of Countries of Concern for human rights abuses.

HT: conversableeconomist

Is our economic ignorance about the sources of growth increasing?

via Roger Pielke Jr.’s Blog: Is Our Economic Ignorance Increasing?.

Bill Easterly on the great dangers of evidence-based policy and field trials

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Poverty is not the result of rapacious financiers exploiting the poor

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Is the minimum wage an important tool in fighting pov­erty?

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The growth versus redistribution

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Do the poor do better in Hong Kong or France?

Hong Kong v France Per-Capita GDP

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What does socialism do?

HT: Dan Mitchell

The Putin Effect on transitional economies in the former Soviet union

Poland was in the same position as Ukraine after the collapse of the Soviet empire, but it followed better policy and is now several times richer.

Ideas: When Mao died, The Economist wrote

In the final reckoning, Mao must be accepted as one of history’s great achievers: for devising a peasant-centered revolutionary strategy which enabled China’s Communist Party to seize power, against Marx’s prescriptions, from bases in the countryside; for directing the transformation of China from a feudal society, wracked by war and bled by corruption, into a unified, egalitarian state where nobody starves; and for reviving national pride and confidence so that China could, in Mao’s words, ‘stand up’ among the great powers.

China's Birth Rate (1955-1964)

China's Death Rate and Calorie Intake (1955-1964)

via Ideas and http://www.scottmanning.com/content/visualizing-the-great-leap-forward/

Six of the world’s seven billion people have mobile phones – but only 4.5 billion have a toilet, according to a U.N. report

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Cheap Chinese imports no more – Chinese manufacturing industry wages are growing rapidly

China wage inflation chart

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Film review – Elysium

Elysium was on TV. When I saw it on the big screen, no one told me it was a depiction of contemporary capitalism and the class war.

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I read it as a contrast between third world countries lacking the rule of law and capitalist democracies.

The ships shooting up to the space station reminded me of Cubans trying to cross into the USA by boat to Florida.

Sorry,  but I am just a simple country boy from the back blocks of Tasmania.

The World’s Most Corrupt Diplomats, As Told Through Parking Tickets

parking

Kuwait tops the list, with 246 violations per diplomat, followed by Egypt (under Mubarack), Chad, Sudan and Bulgaria. At the bottom, with no violations, are 21 diverse countries including not just the ever-polite U.K., Japan and Canada.

Most U.N. diplomats have improved their parking behaviour since 2002 when the U.S. began withholding parking fines from foreign aid payments: violations fell by 90% immediately after the measure was passed.

The British High Commissioner to New Zealand, plate DC1, nearly ran me over at pedestrian crossing yesterday outside the Wellington library, so this is not an unbiased post.

He was travelling too fast to stop in the central business district, where the speed limit is 30 kilometres per hour. You should not speed near pedestrian crossings because people are trying to walk out onto it. 

Ludwig von Mises as a development economist

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