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Tag Archives: gains from trade

The Millennium Development Goal that really does work has been forgotten

UPDATE 12 noon: this  is a dueling oped with Sachs on ft.com, debate has moved on and even some agreement (see end of post) from a column in the on-line Financial Times today ; for ungated access and a picture of the handsome author go here.

The Millennium Development Goals tragically misused the world’s goodwill to support failed official aid approaches to global poverty and gave virtually no support to proven approaches. Economists such as…

Posted in Aid debates, Aid policies and approaches, In the news, Trade | Also tagged , , 17 Comments

Growing cars in Iowa

[T]here are two technologies for producing automobiles in America. One is to manufacture them in Detroit, and the other is to grow them in Iowa.

Here’s the detailed technology by which you grow cars in Iowa:

First you plant seeds, which are the raw material from which automobiles are constructed. You wait a few months until wheat appears. Then you harvest the wheat, load it onto ships, and sail the ships eastward into the

Posted in Economics principles | 14 Comments

What don’t make sense in trade don’t make sense in aid

Common sense principles in international trade are surprisingly useful for aid as well. Here’s a list of overall principles that help explain some of the most discussed aid dos and don’ts on this and other blogs.

1) Don’t trade low value items with huge transport costs. No exporter or importer in their right mind would ship bulky low-value items large distances, which is why things like construction materials are often locally-sourced. Aid examples: Nobody

Posted in Trade | Also tagged , , , 35 Comments