Development: beyond aid and trade

Dani Rodrik explains how rich countries could promote development overseas:

First, a new global compact should focus more directly on rich countries’ responsibilities. Second, it should emphasize policies beyond aid and trade that have an equal, if not greater, impact on poor countries’ development prospects.

A short list of such policies would include:

• carbon taxes and other measures to ameliorate climate change;
• more work visas to allow larger temporary migration flows from poor countries;
• strict controls on arms sales to developing nations;
• reduced support for repressive regimes; and
• improved sharing of financial information to reduce money laundering and tax avoidance.

Notice that most of these measures are actually aimed at reducing damage—for example, climate change, military conflict, and financial crime—that otherwise results from rich countries’ conduct. “Do no harm” is as good a principle here as it is in medicine.

Read his piece here.