AFRIPOL.ORGIDEAS HAVE CONSEQUENCES
BOOK REVIEWS
BOOK : LAW AND ECONOMICS IN DEVELOPING COUNTRIES. AUTHORS: EDGARDO BUSCAGLIA & WILLIAM RATLIFF
BOOK REVIEW AND ANALYSIS:
Adam Smith reinforces “... retarded commerce was the imperfection of the law and the uncertainty in its application” in his symposium on Jurisprudence and economics. The central thesis of the book, LAW AND ECONOMICS IN DEVELOPING COUNTRIES by Buscaglla & Ratliff is the symbiosis of Law and Economics . The two intellectual minds that authored the book, bring to bear their profound learning and powers of bookish argumentation, collaborating and uncovering the logic of law and economics symbiosis in developing nations. When law is marginalized in economic system, they argued that corruption steps in, deforming the system and weakening its credibility to function effectively.
In this thorough researched book, the authors left no stone un- turn in establishing the relationship between the law and economic development with its unintended poverty and corruption when the relationship is violated. The major problem of developing countries especially Africa is paucity of rule of law which is overwhelmingly absent in the market and economic system. The resultant effect and ramification are poverty and corruption in those developing nations. These forces that threaten the stabilization of market economy and economic development can be stultified with a solid legalistic framework.
Rushing to build a market economy in the absence of law is akin to a house without foundation. Without the law, economics cannot thrive successfully. The economic compass of development is the law. The law defines and reinforces the parameters of the market and the economic activities of the market. Without the law or the rule of the law, the marketers and economic actors including traders, bankers, capitalists and others lose focus and sense of direction. There must be rules and regulations that check entropy of corruptions and weakness in the system, which in turn reinforces economic development and effective capitalism.
The logical application of the law cannot be utilize to derail economic development and to create unnecessary bureaucratic web. Rather to guide in the fulfillment of successful markets.
The authors profoundly examined the legal frame work of countries with regard to economic development, concluding with undisputable observation that the application of law or its absence have a great impact on the scope of economic development. The instruments of law: courts, contracts and other legal entities were examined by the authors and displayed how their failures spurred poverty and corruption in the developing countries.
Buscaglia and Ratliff wrote a book that was based on sound empirical studies and research. Diligently emphasizing that market reforms taking place in developing countries cannot be successful without the presence of structured legal framework.
To usher in, a corrupt free market and sustainable productive economy, the rule of the law must be present. This is precisely the central thesis of the book.
By R. D. Ezeliaku, an Economic Development Expert @ AFRIPOL 2006
BOOK - THE END OF POVERTY: ECONOMIC POSSIBILITIES FOR OUR TIME
AUTHOR: DR. JEFFREY D. SACHS
Jeffrey Sachs, a world renowned economist and a special adviser on issues of economic reforms and development to so many world leaders including UN Secretary General Kofi Annan wrote a serious and a bold book, - The End of Poverty. Its relevance to big ideas and big plans cannot be over emphasized.
The most deserving and distinguished person to write such a book is Jeffrey Sachs, the founder of Earth Institute at Columbia University. He has been in this field all this while, with 25 years of experience and reservoir on dealing with issues of poverty and poverty alleviation.
Dr. Sachs, the man that New York Times cited as "The world’s best-known economist" has a lot to say about poverty and end of poverty.
In the book - The End of Poverty, he showed a detailed road map to end poverty and argues, "Extreme poverty can be ended not in the time of our grandchildren, but in our time." This man cannot be accuse of not being optimistic, an embodiment of hope and reason.
When South African intellectuals cited the issue of the "Afro pessimism" by the international financial institutions, Jeffrey Sachs confirmed the validity in the book by citing the obvious "Pessimism about Africans’ ability to utilise aid is very deep, reflecting an amazing reservoir of deep prejudices. I have heard those prejudices for years and have come to expect them, always with sadness." The time has come for all these international institutions to stop this stereotype.
The mismanagement of funds and resources in Africa are realities, but to use them as excuse to do nothing by the international community is self defeating. When nothing is done, the greatest brunt rested mostly on the children.
Basically, Jeffrey Sachs’s plan to end poverty includes providing basic amenities and sustainable livelihood to the poor of our planet. It is a very expensive enterprise and venture. This will entails generous aids from rich countries to the poor stricken nations of the developing world.
His critics and detractors, which are numerous, accused his plan for end of poverty as very expensive, reckless and irresponsible. Given that funds donated to the poor stricken nations of the world do not trickle down to the poor. Some even argued that poverty is due to corruption not inadequacy of funds and resources. To improve life among the poor of the world, corruption must not only be checked but must be also curtailed drastically.
The solution is not to retreat, but to make funds available while the battle against corruption is relentlessly waged. Eventually, corruption must be defeated in order to sustain a healthy society.
Jeffrey Sachs accused the IMF ‘s market-oriented prescriptions and austerity measures on the poor countries as being unfaithful to the poor by disrupting the fabrics of their lives.
He writes "Rescue the IMF and World bank ... been used like debt-collection agencies for the big creditor countries." IMF must return to the original intention of the founders, which is to help restructure troubled economies not to annihilate them.
The End of Poverty is a serious book by a serious man that deserves all the attention. The Irish rocker Bono of U2 who said that "... Extreme poverty is stupid" wrote the introductory page of the book. Bono the founder of DATA, is an advocate of the global welfare for the poor especially in Africa. Bono is also an activist for debt cancellation for developing nations.
This book have the potential and ability to transform minds that believe that poverty must always be with us.
By E. T. Chiakwelu
BOOK REVIEW
BOOK: THE DEBT THREAT
AUTHOR: DR. NOREENA HERTZ
Developing countries and Africa in particular are paralyzed by their debts to industrialized countries. Africa owned more than $200 Billions and the burden of debt service has a devastating effect on the people and on the GDP of the continent.
Africa and developing world debts to international financial institutions including export credit agency, IMF, IFC and World bank were demystified in all its ramifications in the book. The author try to do so fastidiously, although seldom wanders away from the point she desperately trying to convey to the willing listener. She struggles to bring emotion to bear on the issue of debt and its unprecedented devastating effect on developing nations.
In pragmatic business world of financial dealings, logic must be devoid of emotion, but facts. Without losing anything, both were combined in the course to put a blame where the author think it rightly belongs. Frankly, the blame must be shared mutually, for the developing world leaders must understand their limits, while the mostly industrialized lenders must do their homework very thoroughly and not blinded by the big profit margin and the political advantage to acquire.
It is more complex and profound than that, during and at heart of the cold war when most of these loans were granted, the West was in ideological battle with defunct Soviet Union and most of these loans have political implications and were not based on sound financial decisions . The developing world leaders took advantage of the situation and milked the funds for their home projects into their own personal accounts.
In Africa and some of these debt ridden nations, they cannot afford to pay back the loans, or the servicing of the loans; these loans servicing are diverting fund that can be invested in education and improvement of their dilapidated health care system. To curb the problems of loans default by the developing world countries according to the author, some schemes were formulated and implemented by IMF and World bank. Yet the problem was not solved. The application of James Baker's plan involving loans rescheduling, swapping of debts and Brady plan were all failure.
The author holds the view that the only way to resolve the threat of debt is to go the path of debt cancellation and the role of Bono of U2 , Pope John Paul and the coalition of debt cancellation activists were not minimize in this endeavor.
By E.T. Chiakwelu
