Friday, May 30, 2008

"Common Wealth: Economics for a Crowded Planet" by Jeffrey Sachs

For those who read the author’s “End of Poverty”, this book is a further development of his efforts to mobilize people and nations to address the major issues impacting our world.

He identifies six major trends: (1) process of sustained economic growth has reached most of the world, (2) world’s population will continue to increase, (3) rise in income will be greatest in Asia, (4) people are living more in urban areas, (5) impact of human activity on the environment is significant, (6) gap between the richest and poorest is widening.

His approach towards addressing the major issues is based on the observation that none of the problems are peculiar to nation-states nor are they amenable to solution by nation-states. Without international cooperation, there is no possible mechanism to address the problems effecting our environment, population growth, and poverty.

He recognizes the need of universities, NGOs, governments, and private philanthropists to use their special talents in concert with others to address the problems. Resources are important and represent a small fraction of any nation-state (goal of 0.7% of GNP).

He has realistic methods to address the problems but recognizes that the United States government is itself a major problem. Our immense military and the use of its forces in places where it is counterproductive misdirect financial resources that could better be used to ameliorate real dilemmas in other parts of the world, not only out of a spirit of generosity but also self-interest in furthering our security and that of the world. He cites the following as proof of what our policies have achieved: “one day’s Pentagon spending would provide enough funds to ensure antimalarial bed net protection for every sleeping site in Africa for five years”.

To facilitate global cooperation, he recognizes that the United States has to radically change its foreign policies from one of arrogance to one of many working together.
It has to change its policies regarding population control, i.e., support contraception, increase its financial contributions, and work with other nations who initiate agreements designed to improve the situation.

As in his prior book, nations trapped in poverty require special attention. They have to be given the agricultural tools to become not only self-sustaining but make a profit to enable them to develop to a higher level, e.g., provide fertilizer.

Finally, he notes the importance of governmental support for infrastructure in order for any nation to develop its economy. Governmental resources are often supplemented by private resources, e.g., Gates, Rockefeller. Without such support, all the entrepreneurial skills of the peoples will fail.

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