The end of poverty – economic possibilities for our time

 

by Jeffrey D. Sachs. Penguin Press, New York, 2005. Hardbound, 396 pp. US$27.95. ISBN 1-59420-045-9.

 

Prof. Jeffrey Sachs is Director of the Earth Institute at Columbia University and keynote speaker at the 18th World Congress of Soil Science 9-15th July in Philadelphia. He has written a fascinating book about the poverty and this book should be read by soil scientists fascinated by big questions, global issues and readable books. Throughout the book there are many views on the role of the US in global politics and poverty alleviation.

The book title refers John Maynard Keynes’ from 1930 “Economic possibilities for our grandchildren”. But Sachs has less patience – not for the grandchildren but in our time, that is: by 2025. And these he considers the economic possibilities for our time: to meet the Millennium Development Goals (MDGs) by 2015; to end extreme poverty by 2025; and to ensure that poor countries have stepped on the ladder of development by 2025. Sachs is the head of the MDG Project of the UN. The eight MDGs were unanimously agreed to in 2002 by all 191 UN member states. These goals are important targets for cutting poverty in half by the year 2015, compared with a baseline of 1990. Sachs is convinced: they are bold but achievable.

 

   

The man and his book

 

The book is divided in three parts: introductory chapters on poverty, case studies of countries in which Sachs was involved, and synthesis pointing the way ahead to end poverty. Only one sixth of the global population has a high-income status through consistent economic growth; another two-third has middle-income status with moderate rates of economic growth; and one sixth of all people are stuck in extreme poverty with very low rates of economic growth. Sachs gives an overview of where the poverty occurs (mostly in Africa) and linking it to various factors; for example, crop yields are related to growth of Gross Domestic Product (GDP) per capita. What comes first: economic growth or high yields? But obviously high yields mean high inputs and that can only be done when money is earned and the economy is right. Successes include China where 64% of the population lived on an income below one dollar per day in 1981 but the number was reduced to 17% by 2001. By the year 2050, it is reasonable to suppose that China will reach around half of the Western Europe income average - that is how quickly it can go. For India, he shows how it changed from an impoverished country 25 years ago to high-tech information service country in the world economy in the 1990s. That is why poor countries should not despair, it can be done.

In the second section, Sachs describes his experiences as advisor to various national governments including Bolivia, Poland, Russia, China, India and Africa, mainly Kenya. He describes his approach in which he views countries with huge economic problems, like super inflation, as patients. He sees countries as individuals in trouble who need the help of their families, friends, counsellors and public programs. He has developed a clinical approach to cure the problem and his clinical economics are roughly as follows: countries are poor because they are in debt, are politically instable and have unfavourable environmental and socio-economic conditions. As a result, there is no economic development and they cannot get the first foothold on the ladder. With some help (debt cancellation and financial injections) they get the first foothold and the development may continue. Without that kick-start, development may not start at all. The end of extreme poverty is the beginning of economic progress. It is not quite as simple as that and Sachs shows in various examples that happenings and measures in one place cannot be viewed independently of what happens elsewhere on the globe. Just as in ecology it seems that the holistic view has arrived in economics.

In the latter chapters, examples are given of how poverty can be ended including the already infamous Millennium villages like Sauri in Western Kenya. Sachs demonstrates that five interventions are needed to lift the village out of poverty: 1. Agricultural inputs (e.g. inorganic fertilisers), 2. Investment in health, 3. Investment in education, 4. Power, transport and communication, 5. Safe drinking water and sanitation. Total costs would be about $70 per person per year and Kenya would require an annual investment in the order of $1500 million per year to provide all poor villagers with a similar package. Current donor support for Kenya is $100 million. Upscaling from villages to entire countries or continents seems to be easier in economics than in soil science where the problem is largely unsolved.

Sachs singles out myths and questions common reasoning in the development circuits. For example, he disposes of the idea that the rich have got richer because the poor have got poorer - it would only be plausible if gross world production had remained roughly constant but gross world production raised nearly fifty fold in the past two centuries. Sachs also reminds us that until the mid-1700s the world was very poor by any of today’s standards; in many regions in Western Europe and North America poverty was fairly common until the Second World War. Those that climbed out of poverty have thus a moral responsibility to help those that are still in it.

He also questions why some countries are poor (cultural, geography, governance etc.) and in the book there are various critical notes on donor behaviour. Not only critical - also quantitative. Aid per person in sub-Saharan Africa fell from $32 in 1980 to $22 in 2001, and Africa was poorer at the start of the 21st century than during the late 1960s when the IMF and World Bank first arrived in Africa. Often aid packages have not been delivered or as he notes: an endless stream of misleading announcements that come from rich countries vis-à-vis poor countries. Rich countries should give grants rather than loans – just as was done under the Marshall Plan.

Politics play a role in this book and Sachs is a firm believer that politics cannot explain Africa’s prolonged crisis. Relatively well-governed countries such as Ghana and Senegal fail to prosper and it turns out that Africa’s per capita economic growth is significantly lower than in other developing countries with comparable levels of corruption and income. Sachs comes up with an array of explanations and an important one is the lack of sufficient aid: The biggest problem today is not that too many poorly governed countries get too much help but that well-governed countries get far too little. But not only aid, also trade, although trade reforms alone are not powerful enough to enable the poorest countries to escape from extreme poverty.

In various sections, Sachs refers to soil management and particular soil fertility and nutrient management. For example, he refers to the poor inherent soil conditions in African countries: “..soils have been long depleted of nutrients as the result of repeated harvests without the benefit of chemical or organic nutrient inputs.” He also suggests how these adverse conditions could be improved: nitrogen-fixing trees, agroforestry and inorganic fertilizers. As a means to let household income grow, he mentions that technology can play a role: “…an agricultural extension officer teaches the farm household how to manage the soil nutrients in a new and improved manner by planting special nitrogen-fixing trees that replenish the vital nitrogen nutrients of the soil..”. He also mentions that new agroforestry techniques can triple food crops in the N-depleted soils of Africa. As we know, N-fixing trees are beneficial but cannot do the full job of soil fertility restoration, apart from problems with adaptation of planting trees by farmers. Inorganic fertilisers remain indispensable, as Sachs notes, and he favours fertiliser subsidies like the farmers in Western Europe receive.

 Sachs, like Jared Diamond, is fascinated by the influence of environmental conditions on a nation’s wealth. Some countries are landlocked, very mountainous and have poor inherent conditions that hinder economic development. Nonetheless, he states that “….it is time to banish the bogeyman of geographical determinism” . That is somewhat contradictory to his view elsewhere in the book (page 208 “...geography have conspired with economics to give Africa a particularly weak hand….the combination of Africa’s adverse geography and its extreme poverty cause creates the worst poverty trap in the world”; or on page 312: “…slower growth [in Africa] is best explained by geographical and ecological factors”). Areas where soils are inherently poor are areas where people are poor. But poor soils and people have always existed, also in Western Europe and the USA. Hundreds of years of inorganic and organic inputs and other soil improvements (liming, drainage etc.) have made many poor soils highly productive and the people rich. So the inherently poor soils can be made rich but it needs inputs, and the will to make those inputs. It is unfortunate that there are influential people in rich countries who think that inorganic fertilisers are pesticides, and that organic agriculture can feed the world. It can not, and it is pleasing to read that Sachs has no chemophobia – in fact he suggests that the use of DDT, where appropriate, can help to reduce the burden of malaria in Africa (page 262).

 All in all, it is a bit unusual to read about soils and economic development in economic works. It shows that Sachs has an open eye for an important cause of low agricultural productivity in many poor countries. He provides no spatial or quantitative link between poor soil conditions and poverty (do we have the data?) but his point is well-made. It can only be hoped that his plea for the provision of free or cheap anti-malarial measures and Aids medicines go hand-in-hand with necessary investments in soil nutrient capitals – an idea that has fruitlessly floated around in Africa for more than 10 years.

 As a soil scientist, I enjoyed reading this book, I even think that I understood most of it. Here is a man who can write and has a message. The message is that poverty can end in our time – that is not a forecast, nor a prediction, it is merely an explanation of what is possible. Throughout the book Sachs refers to soils wherever appropriate and that in combination with the historical links and insights makes this book worth reading for many soil scientists. You may also pick up a few ideas of where to focus your next research project or pick and choose convincing arguments to slot into your grant proposal. The world is better off if the Millennium Goals are being met, and if soil science plays the role it deserves.

Sachs thinks bottom-up: he believes that poverty can be reduced by helping the rural poor; give them inputs, health, education, safe water and a good road for transportation to buy and sell goods and economic development may start. True as it may be, in some countries rural poverty was reduced because money was flowing in from family members working in the cities (off-farm income). That is, and has always been, a way of integrating people in the cash economy and getting the first foot on the ladder of economic development. Sachs advocates good science and the upscaling of successes. That is refreshing to read – it has worked in most parts of the world so why not use it in the extreme poor areas. But many development agencies and donors somehow think that science has no role to play. 

 I don’t know enough of macro economics to tell whether Sachs’ ideas and experiences (lifting debt, good governance, financial injections, liberalising markets, etc.) are as glorious and celebrated as described in this book. But I have seen enough poverty rooted in poor environmental conditions to understand that the plea of Sachs for ending poverty is extremely necessary. In a world preoccupied with terror, security and Wall Street and Nikkei indices, compassion and help for the poor is not only noble and humane but also sensible. We can only hope that a soil scientist would be able to write a similar book, as readable, passionate and persuasive as Sachs’ book. Something like: The end of poor soils and their management – ecological possibilities in our time.

 The book is amply illustrated with graphs and maps, which I guess is fancied by most soil scientists with a spatial and quantitative mind. The foreword is by Bono – the singer of U2, an Irish rock band. Bono is the man behind the gigantic pop music spectacle Live8 that was held in the summer of 2005. More importantly, he is one of the most dyed-in-the-wool advocates of Sachs’ ideas. They travel jointly through Africa, share the same ideas but they target a different audience. Obviously Sachs is highly influential in the policy arena whereas Bono appears to be the mobilizer and inspirator for many (young) people throughout the world. That might be a successful combination and it can only be hoped that political changes will follow public opinion – as they mostly do. To some extent people listen to politicians, but increasingly politicians have started to listen to the people they serve.

 

Brother in arms: Bono and his professor

 

At last something about the author. There are some biographic elements and we find out a little about the man Jeffrey Sachs, which increases the readability of the book. We learn how he changed his views over time, how perseverance and persistence pay and how he observes the smoking habits and full ash-trays of a Polish finance minister. Sachs was professor at Harvard before becoming the head of the MDG projects. Sachs has his critics. With this book he aims to convince them of the possibilities to end poverty. I cannot help thinking of various gloom and doom books (Club of Rome, Paul Ehrlich, Lester Brown etc.) that have predicted Malthusian catastrophes which have proved wrong, so far. The state of the world and its progress is a difficult thing to influence, but without hope and high aims to influence and change its future course we might as well do nothing and simply enjoy. Time will tell; let’s influence time. Sachs gives important leads and follows Thomas Malthus' code of belief: Evil exists not to create despair but activity.

         

Alfred E. Hartemink

ISRIC – World Soil Information

e-mail: alfred.hartemink@wur.nl

 

 (This an extended version of a review that will appear in a forthcoming issue of Geoderma)

 

        

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