Mighty Currents of Hope: Economic Possibilities

“Let the future say of our generation that we sent forth mighty currents of hope, and that we worked together to heal the world,” writes Jeffery Sachs, author of bestselling The End of Poverty and director of the Earth Institute of Columbia University. In this brief but effective statement, Sachs uncovers the pressing reality that in order to address the global pandemic of poverty, health problems like HIV/AIDS, and improve economic and human development through capacity building and education, sustainability must be central to our ideals as the driving force behind our personal decisions and greater national policies.

Sustainability is today’s buzzword, used to articulate our envisioned solutions, but more often than not, is nothing more than semantics and PR. Sustainability requires action. Not just simple action, but action on a scale that becomes daunting to those who, at first glance, are interested in change. This action must come from both governments and grassroots organizations, and increasingly civil society and larger non-governmental organizations. To address the types of global problems discussed in Sachs’ book, serious commitment and dedication are required by everyone from donor countries to the developing world. And, according to Sachs, the world can still do it on the timeline established by the UN Millennium Development Goals.

Sachs is an economist, whose view of the world and the possibilities it holds, is shaped by markets. In some circles, markets are the very intangible demons that have contributed to the cycle of poverty in developing nations. Consumerism, inequality, unsustainable production practices, and environmental degradation plagues the idea of industrialization, the very concept that the West sees as the solution to the developing world’s problems of poverty. Although pioneers such as Amartya Sen have contributed drastic changes to the way we conceive of development, the field is still dominated by institutions driven by national and donor interests, and continues to rely on economic development as a driving force. So what can Sachs and his economic ideals contribute to the discussion? Apparently, quite a lot.

As special advisor to the UN Secretary General and countries such as Bolivia, Poland, Russia, and China, Sachs’ experience and economic expertise has helped to stop hyperinflation, aid in transition economies, and develop goals to reduce poverty worldwide. He is accurate to point out that development is plagued by the search for a magic bullet, one that will rid the world of its problems with one lump sum and one golden policy. He is an advocate for what he calls “a clinical approach” to development, one that “should train the development practitioner to hone in much more effectively on the key underlying causes of economic distress, and to prescribe appropriate remedies that are well tailored to each country’s specific condition.” This idea flies in the face of the popular structural adjustment programs that do little to address unique country specificities, but rather push for free markets and privatization that has little, if any, proven track record.

If that idea isn’t enough, Sachs is also an advocate for debt forgiveness in particular circumstances. Countries with a heavy debt burden have no possible way to pay off debt AND fund social and economic programs that will help to advance the well being of the citizenry. In addition, he also calls for donor money to be reallocated so that more money reaches projects on the ground, rather going towards experts who consult in the field. Sachs goes through nearly half the book sharing his experiences, but also makes considerable recommendations on how to improve the well being of people around the world by 2025.

Why has Sachs made so many enemies in the development field? It depends on where you stand relative to his position. If you’re a big donor country, he has lost you money by calling for debt forgiveness, and in many cases, has won. If you’re against markets because lack of access to them creates greater inequality, you have a good argument. But he provides a series of possible solutions on how to make access to markets more feasible in the developing world. If you are a US politician who campaigns on the solution to national security as the war on terror, he counters the argument by saying national security is improved when poverty is reduced and education is increased, so we should be focusing our time and money on poverty reduction. If you believe that countries are poor because they “choose to be,” he demonstrates why circumstance, geography, and history all combine and contribute to inequality.

He has ruffled feathers in different disciplines, countries, and international institutions, which makes this writer think he may actually be on to something big. Business as usual will only continue to increase inequality in the current generation, and does nothing to address the problems the next generation will face. Sachs’ ideas are certainly not a magic bullet, but he doesn’t pretend them to be. Rather, his ideas are tools for the toolbox as we push for global action and change.