Politics of developing area has broadened my understanding about why global south are poor and global north are rich. The question that I used to asked myself was why global south countries are still wallowing in extreme poverty despite all the foreign assistance they received from global north countries? And the answer that I got from the class is aid without proper or right institution is meaningless.
From the class lectures, I got surprised about the vast economic disparity between US and Mexico despite they shared border and in a same geographical location. Acemoglu and Robinson (2012) elaborates on the historical analysis of the two countries made me understood that economic growth is easily to take place in places with right institutions which encourage individual participation, enforce property right and create equal opportunity which encourage investments in new technologies and skills are more conducive to economic growth than extractive institution which give opportunity to few people. This scenario divulged to me to understand that sharing border with rich country does not guarantee economic growth for the poor country if it does not have right institution in place.
One study that also fascinated me is Jeffery Sachs assertion that generous foreign aid and investment are the best medicine for poor country to get their foot on the ladder of development. He posits that poor countries are not poor because of bad governance but because they do not receive much aid from donor or rich countries. Then the question is why poor countries are still struggling with their economy despite the generous funds they have received from rich countries?
William Easterly (2005) also opined that despite the good intension behind the loan for the structural adjustment program for global south countries to recover from its economic crisis, it couldn’t even achieve positive results for both donors and the recipient countries and this informed my decision that aid without right institution is meaningless.
Paul collier (2007) bottom billion also got me fascinated about how some government from poor countries divert humanitarian aid to build their military strength despite nation is suffering from hunger. This revelation shows that despite the effort by global north to help poor countries to alleviate from poverty, their government do not make good use of the help they offer meaning they lack institutions which will guide them to utilize and implement the offer very well or setting their priorities right.
Conclusion, the global north should teach global south the right institution which encourage quality education, innovation and patriotic citizens who will see corruption as a crime but not as a norm. Again, global south countries should realize that too much dependent on aid will blind them from seeing the way that will lead them to attain economic growth. And I end it by saying Global north should encourage global south countries to set up strong and right institution but not seeing foreign aid as the messiah for their alleviation from poverty.
‘’Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime’’.
Word Count # 515