Global Marshall Plan

Theory and Evidence

Global Marshall Plan cover

Global Marshall Plan

Theory and Evidence

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Description

Today’s foreign aid programs are small-scale because of the widespread belief that they are ineffective. This could be an example of a self-fulfilling prophecy: small scale virtually guarantees ineffectiveness. However, the pervasive contemporary pessimism regarding global economic inequality is most likely unfounded. The research described in this book suggests that a properly designed and sufficiently massive economic development assistance project—a Global Marshall Plan—could tremendously reduce the economic gap between the richest and poorest nations within a 50-year planning period. Enrichment of the poor nations would not entail impoverishment of the rich nations. The actual cost of the GMP program to the populations of the rich nations would be a very slight and virtually unnoticeable reduction in the rate of growth of their living standards.

The model incorporates features suggested by the skeptical literature on foreign aid, and it is shown that if certain key parameter values are sufficiently adverse, the GMP would indeed be ineffective. However, extensive sensitivity analysis demonstrates that the optimistic benchmark results are robust against wide variations in the numerical values of most model parameters. The fundamental policy implication of this research is that only an actual real-world experiment with a Global Marshall Plan could reliably determine whether or not it would be successful.

Table of Contents

Contents

1. Global Economic Inequality
, 1
,
Is It a Problem?
, 5
,
Outline of the Study
, 20
,

,
,
2. Foreign Aid: History and Evaluation
, 34
,
Six Decades of Foreign Aid
, 38
,
Research on Foreign Aid
, 51
,
Viewpoints on Foreign Aid
, 59
,
GMP Aspirations
, 66
,

,
,
3. A Global Marshall Plan Model
, 77
,
Theoretical Specification
, 80
,
Numerical Implementation
, 87
,
Validation of the Model
, 97
,
Appendix: Nations in the World Bank Dataset
, 105
,

,
,
4. Application of the GMP Model
, 110
,
Benchmark Policy Simulation
, 113
,
Burden of the GMP
, 125
,
Sensitivity Analysis
, 130
,

,
,
5. Summary and Conclusion
, 140
,
Evaluating the Research
, 145
,
The Implementation Issue
, 160
,
Why a GMP?
, 163
,

,
,
Notes
, 171
,
Index
, 186
,

Product details

Published Aug 14 2014
Format Ebook (Epub & Mobi)
Edition 1st
Extent 198
ISBN 9780739192313
Imprint Lexington Books
Publisher Bloomsbury Publishing

About the contributors

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