AT Private Market solves Private economic development help the poorest nations- they need doesn’t developmental aid Sachs 13 Sachs, Jeffery D. (Sachs is a world famous economist and is director at the Earth Institute at Columbia) Foreign Aid in “Chapter 3: Poverty: Can Reduce Poverty?” Controversies Globalization: Contending Approaches to International Relations, Edited by Peter Haas and John Hird, 2013, pp. 71–103., [Premier] *ODA=Official Development Assistance it is said that development assistance is passé, since private financial flows of Meanwhile, often all kinds now swamp (development assistance, foreign direct investment, foreign portfolio investments, and so on) official flows. this fact does not make ODA obsolete, because the private capital flows Still, are heavily concentrated in middle-income countries and in low-income countries with high-value natural resources Private capital flows such as hydrocarbons, minerals, or precious metals. bypass the poorest countries, which lack the basic infrastructure—roads, world’s power, ports, is needed to attract private investments in the first place. ODA is clinics, and schools—that complementary to private capital flows, and it must generally precede private flows into impoverished regions. think about using ODA to create the base—in We should therefore attract private capital. infrastructure, health, skills, and other necessary conditions—to
AT Private Market solves Private economic development doesn’t help the poorest nations- they need developmental aid Sachs 13 Sachs, Jeffery D. (Sachs is a world famous economist and is director at the Earth Institute at Columbia) “Chapter 3: Poverty: Can Foreign Aid Reduce Poverty?” Controversies in Globalization: Contending Approaches to International Relations, Edited by Peter Haas and John Hird, 2013, pp. 71–103., [Premier] *ODA=Official Development Assistance Meanwhile, it is often said that development assistance is passé, since private financial flows of all kinds (development assistance, foreign direct investment, foreign portfolio investments, and so on) now swamp official flows. Still, this fact does not make ODA obsolete, because the private capital flows are heavily concentrated in middle-income countries and in low-income countries with high-value natural resources such as hydrocarbons, minerals, or precious metals. Private capital flows bypass the world’s poorest countries, which lack the basic infrastructure—roads, power, ports, clinics, and schools—that is needed to attract private investments in the first place. ODA is complementary to private capital flows, and it must generally precede private flows into impoverished regions. We should therefore think about using ODA to create the base—in infrastructure, health, skills, and other necessary conditions—to attract private capital.