Economics in Action

The real challenge of development is the bottom billion the people living in 50 or so countries, mainly in Africa, that are falling behind and often falling apart. But increased aid and freer trade will make only a marginal difference to these people’s lives until they enjoy greater security and that means military interventions by the rich countries to end civil wars, prevent conflicts from restarting and provide peacekeeping forces in support of long-term economic solutions.

These were the central messages of Professor Paul Collier when he delivered the 2006 Royal Economic Society Annual Public Lecture ‘ War and Peace in Africa’ at the Wigmore Hall in London on Friday 1 December.

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How can we help the developing countries of Africa? This three-minute BBC radio interview (RealPlayer required) features an interesting take on the issue from Paul Collier, an Oxford Professor of Economics.

Collier points out that Africa has some fragile democracies which are at real risk of falling to a military coup or descending into civil war. The security that comes from stable government makes it more feasible to escape the cycle of poverty. Hence the rich European countries could help by supplying some of their military power, if backed with a legitimate authority.

Muhammad Yunus and the bank he founded to help the poorest Bangladeshis out of poverty have been awarded the 2006 Nobel Peace Prize “for their efforts to create economic and social development from below”.

Yunus pioneered microfinance; small loans made to people whom traditional banks would ignore as too high-risk. Talking to the BBC, he responded, “As a Bangladeshi, I’m proud that we have given something to the world. Our work has now been recognised by the whole world.” Several links found via MetaFilter.