by R. Glenn Hubbard (Author), William Duggan (Author)
Over the past twenty years more citizens in China and India have raised themselves out of poverty than anywhere else at any time in history. They accomplished this through the local business sector--the leading source of prosperity for all rich countries. In most of Africa and other poor regions the business sector is weak, but foreign aid continues to fund government and NGOs. Switching aid to the local business sector in order to cultivate a middle class is the oldest, surest, and only way to eliminate poverty in poor countries. A bold fusion of ethics and smart business, The Aid Trap shows how the same energy, goodwill, and money that we devote to charity can help local business thrive. R. Glenn Hubbard and William Duggan, two leading scholars in business and finance, demonstrate that by diverting a major share of charitable aid into the local business sector of poor countries, citizens can take the lead in the growth of their own economies. Although the aid system supports noble goals, a local well-digging company cannot compete with a foreign charity that digs wells for free. By investing in that local company a sustainable system of development can take root.
Format: Hardcover
Pages: 240
Edition: 1st Edition
Publisher: Columbia University Press
Published: 01 Aug 2009
ISBN 10: 0231145624
ISBN 13: 9780231145626
Book Overview: I can't think of anyone better qualified than R. Glenn Hubbard and William Duggan to analyze what they perceptively call the 'feudal system of aid' and to suggest ways to break free. They persuasively argue that thriving private businesses are the best hope for the world's poor and have taken a practical approach to allow business to thrive. -- William Easterly, author of The White Man's Burden: Why the West's Efforts to Aid the Rest Have Done So Much Ill and So Little Good