104 of 105 people found the following review helpful
4.0 out of 5 stars Pragmatic Approach to the Problem of Poverty
As a kid growing up in Nigeria, I thought that it was 'normal' that Latin Americans, Asians and Africans were classified as The Third World. Now as an adult, it seems that the only pictures of starving children I see on TV are those from my native continent. Despite the aid and attention that Africa has received in the last 20 years, most African countries are still stuck...
Published on 13 Dec 2007 by A. O. P. Akemu
163 of 188 people found the following review helpful
2.0 out of 5 stars A Neo-liberal Apologia.
This is another effort by the neo-liberal economic establishment to distance itself from the consequences of its policies in Sub-Saharan Africa. This book is mainly about Sub-Saharan Africa.
The former head of research at the World Bank is perplexed by the failure of Sub-Saharan countries to develop. Maybe, this failure is due to the policies forced on African...
Published on 2 Aug 2009 by Dr. M. S. Nkolokosa
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104 of 105 people found the following review helpful
4.0 out of 5 stars Pragmatic Approach to the Problem of Poverty,
This review is from: The Bottom Billion: Why the Poorest Countries are Failing and What Can Be Done About It (Paperback)As a kid growing up in Nigeria, I thought that it was 'normal' that Latin Americans, Asians and Africans were classified as The Third World. Now as an adult, it seems that the only pictures of starving children I see on TV are those from my native continent. Despite the aid and attention that Africa has received in the last 20 years, most African countries are still stuck in pre-industrial poverty. Professor Collier's highly accessible book provides some illumination on the matter.
BOTTOM-BILLION IN BRIEF
The thesis of the book is that the economies of the poorest countries in the world, the so-called bottom-billion, have not grown in the last 30 years because they are stuck in one or more of the following traps: (1) the conflict trap; (2) the natural resource trap; (3) the "landlocked with bad neighbours" trap; and (4) the "bad governance in a small country" trap. Collier proposes the following solutions to the problems: (1) Military intervention; (2) adoption of voluntary laws and charters; and 3) changing rich-world trade policy.
WHAT I LIKED ABOUT THE BOOK
The book is written in a logical, easy-to-read style. Professor Collier, former head of research at the World Bank, is remarkably familiar with African societies. He rightly points out that aid and revenue from commodities have enriched local parasitic elites, who prefer to maintain the status quo rather than invest in economic development; 'rent' money, based solely on patronage, funds the gravy train for elites. The narrative is laced with delectable anecdotes of author's travels in Africa. He recalls how he was treated as a celebrity in the Central African Republic and how, after he disclosed that he worked for the World Bank, he was shunned by the Immigration official in Nigeria. The reader even learns jargon such as 'Dutch disease' and 'ex and ante' conditionality for investment.
Collier does not pull punches when describing the entrenched elite in the bottom-billion. If, after reading the book you think, "Geez, African elites are self-serving, egoistical spurns of the Devil", then you may be forgiven. Collier reserves his most excoriating remarks for the Angolans. According to Collier, when the East Timorese government needed an example of how to spend their anticipated oil revenues, they turned to Portuguese-speaking Angola. Collier snidely opined that they (the East Timorese) could have asked a brothel for a lecture on sanctity! Funny, sad but true.
Collier also rightly points out that in a number of bottom-billion countries, there are courageous men and women, who are working hard at reforming their economies. He names a few of them like Nigeria's Ngozi Okonji Iweala and Charles Soludo. Professor Collier notes that these brave people deserve support. So true!
Furthermore, he criticizes aid policy as had been administered to date. Aid has not worked and for good reason: it has been badly administered and done with the heart and not the head. As one who is sceptical of the arguments of both the aid-loving left and the aid-bashing right, I was pleased to read how Collier strikes a balance between both camps. His point: aid does not have to be given to poor countries as a sop for colonialism. It must be committed, targeted and given for over a decade to post-conflict societies.
CRITICISM OF THE BOOK
The first few chapters are about the Professor and his students/co-researchers. He reduces the complexity of human interaction to sterile models, which may be - wait for it - be used to predict the risk of civil war. How neat! He manages to do the odd name-dropping also; how his models were recognized by the CIA and the United Nations. An effort to put some humanity in the numbers would have helped the tone of the first few chapters. Also, he purposely skipped the names of the bottom-billion countries except for a few countries like Nigeria, Central African Republic and Zimbabwe. What harm could have been done by mentioning the names of the countries? Moreover, he does not give any information on the equally poor Central Asian countries. It would have been nice to see how the dynamics of poverty differ between Africa and Afghanistan, for example.
The book's major weakness is that its assessment of the failure of African economies is almost wholly agentic i.e. the book focuses on 'bad' actors and ignores the role institutions, especially the post-colonial systems in Africa. Collier observes that Africa has the largest number of landlocked countries in the world. According to him, "...The international system should not have let them become economic entities in the first place..." Well, that's putting a gloss on the issue here. Why not call a spade a spade? The reason why there are so many landlocked countries in Africa is colonialism. For example, landlocked Chad and Burkina Faso were carved up as French zones of influence in 1888 and remain so till this day. The Professor does not even mention the "C" word. The situation is even more complicated than Collier suggests. The international system (a.k.a. the European imperial powers) carved up Africa into a quilt of nation-states and left them at independence with schizophrenic political institutions that were neither African nor European. Using terms like "international system", Collier skilfully avoids naming names. Afterall, if a system caused the problem, no one did it. He asks us to get over it and move on as these countries are here to stay. I agree. Yet, I fear that this is an injustice to readers, who may not understand that most African countries are not 'nations'. Collier, who knows Africa very well, should have emphasised the 'stickiness' of institutions in the post-colonial era.
Reading the book, you'll get the impression that Africans merrily squandered Western aid in the last 50 years. The truth is more complex: there was the added complication of the Cold War, which was anything but cold in the Third World. Indeed, Africa and Latin America were the key frontlines in the Cold War. It is in Africa, for example, that the US supported unsavoury dictators like Mobutu Sese-Seko and Jonas Savimbi's UNITA, leading them to commit the heinous crimes against their own people. The book does not tell this side of the story well.
One of Professor Collier's instruments for pulling the bottom-billion out of poverty, military intervention, is not well-thought through; indeed, it seems to be an after-thought. He does not convincingly argue why the West should intervene in places like Congo. His argument that he does not want his son to live in such a divided world is a good one for the family dinner but may not cut much ice with hard-nosed politicians, beholden to electorates, who do not like to see their soldiers dragged through the streets of a 'God-forsaken' Third World country.
Colier has a message for both sides of the political spectrum. To the left: there is nothing romantic about the poor African native, who lives in abject misery, is 'happy' with his lot and in touch with nature. Aid and growth can and should be compatible if it is to be effective. To the right: Don't overplay the efficacy of growth. It alone cannot life the bottom billion out of poverty. Economic growth must be combined with some painful change of policies, such as at the WTO, to be effective. I hope that the right people are listening to this message.
32 of 34 people found the following review helpful
5.0 out of 5 stars A joy to read,
This review is from: The Bottom Billion: Why the Poorest Countries are Failing and What Can be Done About It (Grove Art) (Hardcover)This is a thought-provoking book: the problems of the poorest countries are deeply and cogently analysed and explained, and appropriate policies proposed. It has the added virtue of being written in simple and refreshingly straight-forward language. There is much that is absolutely original here.
The one comment I have is that Collier bases some of his policy prescriptions on the assumption that the only way to develop is through export, which seems to suggest export-led growth and large projects. There is nothing about micro projects and the need to work with the poor to alleviate poverty through the provision of appropriate/intermediate technology.
I e-mailed him about this and received a rapid and courteous reply saying that he did not have space in the book to cover everything and that he agreed that exporting only makes sense as a growth strategy for some countries and that he has no fault to find with the micro approach.
He also suggested I might write this review; so I did.
PS I also thoroughly recommend the lecture on his website.
18 of 20 people found the following review helpful
5.0 out of 5 stars Summarizes Statistical Studies of Factors Affecting Incomes for People in the Poorest Countries,
This review is from: The Bottom Billion: Why the Poorest Countries are Failing and What Can be Done About It (Grove Art) (Hardcover)Are you troubled by the grinding poverty in the poorest countries? If so, this book will give you hope that something more can be done.
How can a global economy that routinely produces new billionaires leave a billion people behind in countries where the economic prospects are bleak despite enormous spending aimed at turning things around? Obviously, the remedy isn't working. You could have figured that out for yourself without reading this book.
Professor Paul Collier takes us beyond that disquieting simplification to measure what some of the reasons are that contribute to the stalled economies in those countries (which are mostly located in sub-Saharan Africa and central Asia) where a billion people live.
The primary factors that he can isolate include frequent armed conflicts (coups, civil wars, and wars with other countries), producing high value natural resources that can be easily exported, having no access to the oceans while being surrounded by neighboring countries having a lot of problems, and poorly performing government in a small country. Armed conflicts not only take a lot of lives and do a lot of damage; armed conflicts drive people into new areas creating enormous dislocations and increased disease. Armed conflicts interrupt the ability to run a farm, a business, or to have a normal life. High value exports encourage those in government to seek payoffs from the exports while the exports drive up the value of the currency making local businesses less competitive with imports. If you are surrounded by bad neighbors, you cannot do much exporting or importing so your economy is stuck where it is. A poorly performing government simply siphons off funds into corruption.
If a poor country overcomes these problems, it has new issue: There may not be a local size sufficient to compete with other low-cost labor markets in global exports.
Give a country too much aid of the wrong kind, and you make things worse. Excess infrastructure aid (a current favorite among developed countries) leads to corruption and more spending on the military (which increases the risk of armed conflicts). Military intervention is only cost effective if those who are the peace keepers are serious and the spending is low (unlike Iraq). Laws and charters can provide guidelines that can make the subsequent actions more appropriate. Appropriate trade policies can also help open markets for those from the poorest countries.
The book concludes with a call to action to shift development spending from the middle four billion to the bottom billion while increasing reliance on influences other than sending money for aid.
I appreciated having the chance to read this book and recommend it to those who want to know what can be done to help the poorest people. I would have learned more if Professor Collier had shared more details of his research, rather than just citations of his academic works. I was particularly interested in how strong these statistical patterns are. I was also curious about the multivariate effect of these factors in the past.
I have a lot of admiration for the hard work that goes into assembling data to do this kind of work and to then find ways to draw conclusions from the data that make sense. Bravo to Professor Collier and his colleagues!
At the same time, I would encourage serious readers to also look at the problem from the ground up . . . what educated people who live in these countries can do to make things better for the most impoverished. I am highly encouraged by the work that some of my students have done in identifying how small educational and capital inputs can generate enormous numbers of successful entrepreneurs who need employees. Many of these nations lack an educational infrastructure that can produce the skilled labor and business leadership needed for rapid economic growth. It looks to me like working on providing such advanced educational opportunities could be a great way to attack these persistent problems, as well.
51 of 58 people found the following review helpful
4.0 out of 5 stars Thought-Provoking Analysis and Solutions for a Better World,
This review is from: The Bottom Billion: Why the Poorest Countries are Failing and What Can be Done About It (Grove Art) (Hardcover)Despite well-publicised significant improvements in the average condition of several billion people in our world, there remain some one billion seriously poor people, and their condition is unlikely to improve. They are trapped, by conflicts, by possessing natural resources (sic), by being landlocked with bad neighbours, and/or by bad governance. Additionally, globalization is not going to help those caught in the trap. Do we have a responsibility to help? Yes, says Oxford professor of economics and African studies expert, Paul Collier, we do because we are citizens, and that status demands that we help our fellow human beings.
We are a book group of retired men, with experience in a wide range of disciplines and countries, who have read and discussed "The Bottom Billion". Without exception, we all found Collier's identification of this group of non-developing nations, and the problems they face, highly thought-provoking. We were particularly impressed by his use of researchers from different countries and disciplines, and the quantitative techniques used, to analyse the causes of those countries' problems, the impacts on them, and for identifying potential solutions. The power of these analyses was such that many of our preconceived views were changed and we were left wondering what, if anything, we could do as individuals to help the people of these countries escape from their terrible plight.
The Bottom Billion is very principled treatise that takes a close look at one of the biggest running sores in our world, and offers some solutions where many people may have said, sorrowfully, that no cure exists at all.
3 of 3 people found the following review helpful
4.0 out of 5 stars The Bottom Billion,
Much of Paul's argument is based on data collected by international organization such as IMF and The World Bank and so on. When reading through the pages you would meet some high ranking individuals in these countries, i.e. the Finance minister, but rarely the ordinary person in the street and the challenges he/she faces. In my opinion this is the main weakness of this book. It's a top down approach. He does not talk so much about some of the side effects that export driven policies had on these countries such as planting crops for export in the best available land instead of the staple food of the country which people need to survive. Overall very good book, though I encourage Paul to get out of the big hotels and ministerial headquarters and meet ordinary people next time he visits one of these countries.
163 of 188 people found the following review helpful
2.0 out of 5 stars A Neo-liberal Apologia.,
This review is from: The Bottom Billion: Why the Poorest Countries are Failing and What Can Be Done About It (Paperback)This is another effort by the neo-liberal economic establishment to distance itself from the consequences of its policies in Sub-Saharan Africa. This book is mainly about Sub-Saharan Africa.
The former head of research at the World Bank is perplexed by the failure of Sub-Saharan countries to develop. Maybe, this failure is due to the policies forced on African countries by the Western donors, the World Bank, the IMF and the WTO.
Collier tells us that Sub-Saharan countries are not developing because they have fallen into one or more of four traps. These traps are:
1. Bad governance ( read corruption );
2. Being land-locked with bad neighbours;
3. Natural resources curse, and
4. Wars and civil conflict.
Let's take corruption first. Corruption was rampant in Europe and North America in the 18th and 19th centuries. Public posts used to be given to the highest bidder. The British Treasury was a private institution until the 19th century. In the USA, loyal supporters of winning parties used to be rewarded with public office. A practice that continues to this day-a complete change of personnel when a new administration takes office. None of this stopped Europe or North America becoming rich.
Next, let's look at wars and conflict. European nations were constantly at each other's throat until relatively recently. In the 1990s the Balkans were torn apart by war. In the summer of 2008 war broke out in the Caucuses.
In the 1960s, 1970s and 1980s the wars in Africa were mainly proxy wars brought about by the cold war. True, there have been a tiny number of inter-state wars caused by border disputes. The majority have been civil wars over resources.
Wars never stopped Europeans becoming rich.
The differnce between Europe and North America on the one hand, and Africa on the other is that Europe and North America were free to use activist and interventionist policies to promote their manufacturing industries.
Africa is forbidden from using activist and interventionist policies to promote her manufacturing industry by the West.
To get aid, Africa is forced, by the donors, to open her markets to full global competetion. The little industry that is there is completely overwhelmed. Thousands of people are thrown out of work, increasing levels of poverty.
Cheap food produced by subsidised farmers in the West is dumped on Africa, destroying local food markets.
All this is done at the insistence of the World Bank, the IMF and the WTO.
Now let me relate the story of a small, land-locked and resource rich Sub-Saharan country. Botswana is rich in diamonds. Botswana gained independence from Britain in the early 1960s. From the beginning, Botswana practised multi-party democracy. Botswana has never known military coups or civil conflicts. Botswana accepted aid only during its first few years of independence. Botswana holds the world record for the fastest growing economy over the past 40 years. I believe that Botswana has been able to do this because she hasn't needed aid. Therefore, she did not have to take the bitter pills prescribed by the World Bank and the IMF. The medicine prescribed by these two organisations usually kills the patient.
In his prescription, Collier doesn't discuss the role of Western policy on Sub-Saharan development.
Collier doesn't tell us that the economic and social policies of Sub-Saharan countries are dictated by the West. World Bank staff are embedded in African central banks and ministries of finance. Many Sub-Saharan countries cannot pass a budget into law without the approval of the IMF. This has been going on for about three decades.
Now that the West's policies have failed to deliver development, the architects of these policies are casting around for someone or something to blame for the failure.
21 of 24 people found the following review helpful
5.0 out of 5 stars This book is worth buying, reading and acting on,
The book sets out the "4 traps" that can and do consign a country to poverty: conflict, natural resources (such as oil and diamonds), being landlocked with bad neighbours, and suffering bad governance. It also sets out the possibilities: looking at how countries like China, India, Vietnam etc have developed remarkably well in recent years. It then goes on to look at the sorts of policies that can be used to get the bottom billion on track to follow the path set out by the emerging economies. Those policies are (as expected) aid and trade, but Collier also sets out a role for transparency and even military intervention. Not to depose bad regimes, but to prevent (and occasionally reverse) coups, in the Sierra Leone model. A friend in the Aid-Biz told me once that that intervention was so successful that the people of SL would happily have voted to make Tony Blair their constitutional monarch. The book also explains the different strengths and weaknesses of each approach in different circumstances.
The prize for getting policies towards the bottom billion correct is immense: it would mean that, within my lifetime malnutrition would be abolished. No child would go to bed hungry. We have seen how fast change can happen - in Japan early this century, in Korea after the war, and, as mentioned, in any number of East and South Asian countries today.
We can do this, and Collier sets out much more convincingly than Sachs, Easterly or most aid agencies, how to do this. As citizens we need to press our leaders to advocate the policies in this book. If we do that, then, together we can make a dramatic difference.
(The author is an economist, teaching economic history at the London School of Economics)
2 of 2 people found the following review helpful
5.0 out of 5 stars Probably the most Influential Book I have Ever Read,
This review is from: The Bottom Billion: Why the Poorest Countries are Failing and What Can Be Done About It (Paperback)Parts of this book are pure gold in my opinion. Paul Collier appears to have a career rooted in the free market economic establishment, but what he has to say should be read by EVERYONE. I have read no clearer description of the present plight and bleak prospects of some very poor countries.
The heart of his book is the proposition that there are four groups of reasons or "traps" which keep some very poor countries poor. This approach to the subject of global poverty, taken together with the insinuations in the title, and the earlier sections of the book, could be accused of being part of a narrative which qualifies and explains away the failure of the free market paradigm. In other words it performs an act of "paradigm maintenance" (see Eric S. REINERT)How Rich Countries Got Rich and Why Poor Countries Stay Poor by implying that the free market ideas are basically right, except for this one billion people, only in specific countries, with special extraordinary problems. Although this last point is debatable, the reasoning, evidence and anecdotes provided by Collier for the actual traps themselves are completely compelling and should be read, whatever your wider political leanings or economic views.
However the part of the book which fascinates me more is the later chapters where he admits that actually for many poor countries, even if they get their act together, the free market gobalised system STILL will not help them much. He states that they may have "missed the boat" and will be in "limbo", due to China, India etc having dominated the kind of markets they need to enter into in order to succeed within the free market arena. As he notes, it took the present wave of industrialising developing countries a long time to reach a level of wage disparity compared to the West before out sourcing became viable. With much of China's and India's large populations yet to enter global markets, how long will it take before poorer countries look attractive to international manufacturing? Remember, Collier is no left wing reactionary, and these ideas are all the more potent being voiced by a member, (if perhaps a free thinking member) of the free market economic establishment.
Colliers conclusions continue this pattern of being kind of radically progressive and free market establishment at the same time. To summarise to the point of doing him a disservice, he dismisses the industrial policy route for poor countries as resulting in, and being motivated by, corruption, and then proposes that very poor countries require an international artificial trade advantage over China and India etc just to get a kick start. Also he dodges and ducks the usual left wing criticisms of the WTO by asserting that the organisation is just a "marketplace" for "reciprocal bargains" and is not always really for them or relevant to them.
Many of Collier's conclusions feel so urgently right, but also personally for my tastes, I am not sure whether Paul Collier has left his free market background behind enough yet to be able to conclude all the right answers in some areas. However he is definitely shaking the right trees and lifting the right stones better than most, ie issues of trade, progressive protectionism, and creating healthy fair competition.
2 of 2 people found the following review helpful
5.0 out of 5 stars Rightly famous - countries listed in the sequel,
The other reviews deal with this book adequately. My main comment is for readers and potential purchasers who, like me, are interested in exactly which countries are included in the bottom billion. The information is to be found in an appendix of the sequel, which is as good if not better and called "Wars, Guns & Votes".
2 of 2 people found the following review helpful
5.0 out of 5 stars Must read for anyone interested in poverty reduction,
Just as Mr. Collier says at the end of his book, discussions on poverty and development have over the last few years been dominated by two extremes: On the one extreme Mr. Jeffrey Sachs call for more aid to "end poverty", and on the other side, William Easterly's negativity that nothing really works (in the books The End of Poverty and The White Man's Burden, respectively).
Mr. Collier strikes a marvelous and necessary balance between these two. On one side, he says about Mr. Sachs:
"At present the clarion call for the left is Jeffrey Sach's book the end of poverty. Much as I agree with Sachs' passionate call to action, I think that he has overplayed the importance of aid. Aid alone will not solve the problems of the bottom billion - we need to use a wider range of policies."
Mr. Sachs is an advocate of more money will solve the problems, but as Mr. Collier puts well in the book, many of the problems related to poverty are structural, from lack of investement, infrastructure, education, conflict, to being landlocked. Some of these problems are not solved just with more money. Unfortunately, this is a tendency in development aid nowadays, perhaps as aid agencies and staff need to justify their existence, even increase it: the need of more money, much of it in the form of budgetary support, which goes directly to a poor country's budget, in ever bigger amounts. But the link to poverty reduction is awkward to say the least: as pointed out in both Easterly's and Collier's book, higher dependence on foreign aid hardly leads to poverty reduction.
How much did I see this in Mozambique: had any of the subsistence farmers I worked with ever benefitted from the Agricultural SWAp...?
Nevertheless, while one cannot argue that aid will help everything, one can not jump into the other side of "Nothing helps" like the old disillusioned Mr. Easterly does (in my personal view Mr. Easterly is the kind of person who would have let slavery continue, not because he agreed with it, but because "we cannot do anything about it"):
"At present the clarion call for the right is economist William Easterly's book The White Man's Burden. Easterly is right to mock the delusions of the aid lobby. But just as Sachs exaggerates the payoff to aid, Easterly exaggerates the downside and again neglects the scope for other policies. We are not as impotent and ignorant as Easterly seems to think."
As Collier amply argues for, there are many situations and examples that aid has helped and alleviated poverty. But as Mr. Collier also amply discusses and argues for, the aid money needs to be allocated in a well-planned way, and not ignoring the context: aid alone is unlikely to help.
I must admit that at first I found the book to start really slowly: Mr. Collier took time to explain his framework for analysis, ennumerating four "traps" which developing countries, or rather, the "bottom billion", the poorest of the poorest caught in a vicious circle of misery of landlockedness, resource trap, conflict and bad governance. These four traps are inter-related and Mr. Collier carefully presents his huge array of statistics to present his argument.
This part was a somewhat tedious read, but after passing this part, the book moves into more interesting areas, namely what can be done about it, the huge dilemmas and difficulties surrounding these issues.
Nevertheless, on a more critical view, the book's argument is built too much on statistics. It makes it powerful, but at the same time one can feel that the argumentation, like with all statistics, is political and absolutist: in social sciences, there are exceptions to all statistics! At the same time, some of the correlations, like for instance between post-conflict situations and democracy, seem so vague that I would never look at a specific situation with that data, but only focus on the context.
Personally, I like that he says it can be done - too often in the world people say: "there have always been poor people, and there always will be". While I don't deny this is true, I find it appalling that this should be used as an excuse: we have always had murders, rape, wars, but nobody in their right mind would say we should do nothing about it!
I like the book, because we finally have a well-written balance abut development aid, something that has been missing for a while as the issue is discussed more and more.
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The Bottom Billion: Why the Poorest Countries are Failing and What Can Be Done About It by Paul Collier (Paperback - 2 Oct 2008)