The problems with economists: they don’t understand development

Economists Cannot Do Development

Economists dominate the development field, but politics is more important to promoting it. This contradiction explains why the policies often recommended by international institutions (such as the World Bank) do not sufficiently take into account the local political, social, and institutional context.

The problem is echoed in other fields, with some blaming the inability of economists to understand institutions and politics as a contributing factor to the 2008 financial crisis. Continue reading

Can Foreign Aid Improve Pakistan ’s Political Economy?

Pakistan Political Economy Foreign AidLike many struggling countries, Pakistan’s two most critical problems are feckless leaders and a feeble state. Can donors do anything to help get such countries’ political economy moving in the right direction?

I recently convened a working group of leading Pakistani development professionals and outside experts at the Global Economic Symposium (GES) to discuss just such this question. Continue reading

What Does it Mean to Work Politically in Development?

Adrian Leftwich gives a great description of what it means to work politically in the development field in a recent publication Politics, Leadership, and Coalitions in Development for the Developmental Leadership Program:

There is understandable caution and reserve about the idea of ‘working politically’, or for donors trying to address ‘the political dimensions of development’ – and for good reason. The phrase itself is easily misinterpreted as insensitive interference, as an invasion of sovereignty and a disregard for principles of ownership and endogenously driven developmental processes. It may sound like ‘regime change’. Given those many cases of bullying or intervention by conditionality of the international community in developing countries, there is good reason for such caution, as the very idea of working politically might seem to suggest a flagrant violation of the principles of Accra and Paris. Continue reading