IQRA UNIVERSITY ISLAMABAD

Submitted by: Mubashar Mahmood

M.Phil. IR (32038)

4th semester

(The End of Poverty written by Jeffery D. Sachs)

Submitted to: Dr.Sadia Khanum

Book Review :( The End of Poverty)

Introduction:
“In his latest book the end of poverty Professor Jeffrey Sachs attempt to tackle issues of under
development and global poverty. Therefore Sach has made a plan to end extreme poverty. The goals are
to halve extreme poverty by 2015 and end it by 2025.He visited almost 100 countries to help reduce
diseases, poverty, environmental damage, and armed conflict and offer advice on the national
economies. He tries to show a big picture of how the whole societies emerge from poverty by explaining
his work in Bolivia, India, Russia, China and other countries integrating the set of solution for economic,
social and political problem which challenge the poorest countries. The main idea behind the drive to
end poverty is a massive aid injection to be spent on infrastructure development and disease control in
the developing world along with the promotion of market reforms

Book Review Analysis:

According to survey more than eight million people around the world die each year because they are
poor and more than one billion people could not afford their living. Six million children pass away from
malnutrition every year. Sach’s main arguments that all poor countries make reliable progress for
economic development. The rich world could help to escape from poverty and make it a realistic by
2025.Sach’s book cover 18 chapters which combine his practical experience and professional analysis.
During his visit to these countries he finds that more than one million African children die because of
Malaria each year and around 140 million people are living in the flood plain of the deltas of two great
rivers in Bangladesh. In chapter 3 Sachs emphasizes that due to the fault of political leadership which
can be called corrupt leadership are main hindrance its country development. The main causes behind
economic decline are poverty trap, governance failure, geopolitics and lack of innovation. If these
countries try to focus good governance, political reforms, economic reforms so that they can come out
from poverty by applying better strategy. Sach found that world economy has changed after 1980 with
over half of world experiencing economic progress in the past 25 years. He criticized main institution
such as IMF and World Bank which he believes that these organizations only protect the interest of
creditor rather poor and consider main problem of global poverty. He further gave justification that if
the rich countries contribute 7 percent of their GDP then poverty can be ended by 2025.The Bush
Administration for lacking concern for poor countries and focusing on military budget if USA contribute
7% of its GDP and focus on disease, hunger and education of poor world then poverty can be reduced in
under develop worlds and same policy should adopt other developed world for reducing poverty till
2025.In chapter 7 and 8 he told how China and India brought market reform after 1990 to reduce
poverty and currently in China seventy crore people get rid from poverty. Sach explain that free market,
innovation and infrastructure are powerful factor to help end extreme poverty. For example free market
between nations will open up new opportunities for wealth creation which also attract the foreign direct
investment. Such kind of things helps to produce more jobs or new job opportunities for the countries.
Free market does not only help developed nation but also under develop world .He also mention that
differences in the level of economic development across the various countries of the world the reason
for slow or stagnant economic growth in the less developed countries. The develop world should take
collective action to end poverty from under develop world. Industrialized countries around the world to
show commitment and help to contribute their aid to the poor countries as set in the Millennium
Development Goals which aim to end poverty by 2025. Sach think that the United Nation need to carry
out assessment and to coordinate aid but United Nation could not invest in the United Nations
Millennium Development Goals. In chapter eleven he further explain that if the rich countries could
contribute 0.7 percent of its GDP to alleviate the global poverty and he is much confident that we can
end extreme poverty by 2025. Sach also argues that extreme poverty could be ended with investment
by the developed world. The ending poverty is not duty of developed world but they can give positive
impact. I think Sach has point out poverty has specific causes such as bad health, bad geography, poor
education and bad infrastructure. Sach try to focus that extreme poverty can be eliminated via free
trade, open market and investment in countries such as China, India and Bangladesh. Furthermore, Sach
constructed plan to improve healthcare, infrastructure and education which are needed in the poor
countries. Long term sustainable economic development can be enhanced and for these purposes we
need to focus good governance of government of under develop world especially building railways,
roads, ports.

There is no doubts that aid programme of eventually fail and some of the western aid could not produce
positive result in poor countries. The failure doesn’t mean that Western aid programme completely
failed but greater capacity needed for execution. In addition, he said that global poverty can be reduced
if the rich countries of the world kept aid budget between 135 billion and 195 billion dollar for the next
decade and properly allocate that money.

Sach argues that poor governance and corruption are one of the root causes of poverty and diseases
factor play a major role but rich countries assistance must be used in six categories such as human
capital to improve nutrition, health and skills; second business capital to improve technology in industry,
agriculture and services, third natural capital to improve soils and ecology. Fourth, infrastructure to
improve roads, power, sanitation, transportation and communication, fifth public capital to improve
governmental, legal and police system, sixth knowledge capital to improve scientific and technological
expertise.

Innovation played dynamic role in reducing extreme poverty in America and the rest of the world. But
this area could not develop in under develop world which are hindrance to the economic stability and
growth of the underdeveloped countries in Sub Saharan Africa and Asia.

At the end Sach says that help not only require few year but till 2025.Sach aims to address the issue of
how much total official development assistance are required to achieve the goals of ending poverty by
2025.

Sach further focus on that better infrastructure such road building are important ingredient in the
reducing of rural poverty and also reduce cost.

By achieving goals of 2025 not only focus aid of rich countries to poor world but main point is that
system of governance and financing mechanism should be purified to end the global poverty from poor
world.
I am strongly confident that Sach’s book is a road map to end poverty and what I find most encouraging,
interesting useful that the plan and concept that he analyzed can surely bring real tangible benefit to the
poor countries. I am agreeing with Sach that efficient use of resources, money should be allocated to
right things and with specific goals.