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The Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics
356 pages, 2002
Since the end of World War II, economists have tried to figure out how poor countries in the tropics could attain standards of living approaching those of countries in Europe and North America.
Attempted remedies have included providing foreign aid, investing in machines, fostering education, controlling population growth, and making aid loans as well as forgiving those loans on condition of reforms. None of these solutions has delivered as promised.
William Easterly argues that there is no failure for economics itself, but rather a failure to apply economic principles to practical policy work. In this book, he shows how all these solutions violate one basic principle: people respond to incentives. He first discusses the importance of growth; then he analyzes failed approaches; finally, he suggests alternative solutions to the issue at hand.
In 'The Elusive Quest for Growth', William Easterly explores the failure of foreign aid in promoting economic growth in developing countries. He argues that despite the billions of dollars poured into these countries, there's little to show for it. This is a wake-up call for us to rethink our approach to aid.
Easterly emphasizes the importance of incentives in driving economic growth. He suggests that without the right incentives, people won't be motivated to work hard, innovate, or invest. So, if you're looking to boost growth in your own life or business, it's worth taking a closer look at the incentives you're offering.
The book also digs into the role of government in economic growth. Easterly argues that governments often hinder rather than help growth. He believes that they should focus on providing basic services and infrastructure, rather than trying to control the economy. This is a valuable insight for anyone interested in politics or economics.
One of the key takeaways from 'The Elusive Quest for Growth' is the power of individuals. Easterly argues that individual entrepreneurs and innovators are the real drivers of economic growth. This is a powerful reminder of the impact that one person can have, and it might just inspire you to take action in your own life.
Finally, the book highlights the complexity of economic growth. Easterly shows that there's no one-size-fits-all solution, and what works in one country might not work in another. This encourages us to approach problems with an open mind and be willing to adapt our strategies as needed.
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Easterly's book is a powerful exploration of the reasons why so many development efforts fail, and it offers insightful suggestions for how to make them succeed.
Amartya Sen - Economist, PhilosopherEasterly's book is a must-read for anyone interested in understanding why economic development is so challenging and complex.
Paul Romer - Economist, Policy MakerEasterly's book is a compelling critique of the development industry, and a call to rethink our approaches to aid and growth.
Jeffrey Sachs - Economist, UN Advisor