lest we forget

Arnold Kling reminds us that this is how NYU economist Bill Easterly declared independence:

Unfortunately, with some exceptions, multilateral and bilateral agencies had incentives to continue lending even when recipient government actions destroyed any hope of economic growth. Sometimes donors and multilaterals gave aid and loans only because the function of donors and multilateral agencies is to give aid and loans. Sometimes aid lenders gave loans to enable old aid loans to be repaid. Sometimes donors gave aid because the recipient countries were political allies of the donor countries. Recipient governments promised the multilateral agencies that this time they would reform, like alcoholics promising never to drink again.

William Easterly, “The failure of development“, Financial Times, 4 July 2001.

It was for writing this, that he was fired from the World Bank.


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