1 comments about The Coming Economic Earthquake.

1. Burkett delineated growing federal deficits and the ever increasing use of debt by business and households out of control. Burkett points out those severe economic times will appear sometime shortly after the millennium unless current polices are changed. Burkett believed that Keynesian economic policies, with ideals for continuing federal deficits and the implicit preference for higher levels of consumption, reduced saving, and a larger role for government in the economy are a means to disaster. As Burkett states in the book that as interest on the debt consumes a larger and larger portion of the yearly federal budget, and more money is borrowed each year to pay the interest on what was borrowed in previous years, there will be a temptation to "monetize" the debt at an increasing rate leading to a calamity not seen since the Great Depression. Burkett questioned whether or not elected leaders would take action in time to prevent fiscal chaos, and believed they would not.

2 comments about One Economics, Many Recipes: Globalization, Institutions, and Economic Growth.

1. I might not agree with significant parts of the book, but it is interesting and, as is true with Rodrick's work generally, it makes one think. I suppose that the most problems that I had were with Chapter 4 on industrial policy. Take the issue of Coordination Externalities. There are large areas of the US market economy where these activities have been coordinated without government involvement (e.g., gasoline stations and cars, bee hives and farms or groves, the development of private highways during the first century and a half or so of US history, radio and television (coordinating stations and people who can listen to them), coordinating telephone exchanges, etc). Often government intervention has slowed or harmed that coordination. Do I agree that in theory that greenhouses and electrical grids go hand in hand? Sure. But it is not clear to me why the problem isn't that in some places the government is the one making these decisions. To me that would have been the hard question to answer. Anyway, I found the book interesting.



2. This is a terrific book. It begins with a good and troubling question: If economists are so smart, why have the most prominent success stories in economic development in recent decades been in countries (China, India, South Korea, Taiwan, Singapore) that ignored our advice? Rodrik's answer is that the advice - mainly Washington Consensus and then its follow-ons - was not so much wrong as a) premature and b) insufficiently flexible. His analysis of recent experience suggests that there are many ways to get growth started in a stagnant economy, and that it takes a very specific, informed, and open-minded local analysis - what he terms "growth diagnostics" - to determine what exactly are the binding constraints in each setting. Furthermore, policies that address those constraints must be politically viable, and that may mean tailoring them so that they create better incentives at the margin without destroying or transferring existing rents.
   
   Once economic growth has started, THEN some of the more standard policy prescriptions, introduced carefully and gradually, may be appropriate and even necessary in order to make growth sustainable. Thus, for example, Rodrik argues that both China and India are moving now in more orthodox policy directions, and appropriately so, but that both relied on quite unorthodox measures to make their initial way out of stagnation.
   
   There are many other issues addressed, including the importance of political arrangements that allow local needs and preferences to be expressed and the case for international trade policies that allow for diversity in national institutional arrangements. The book closes with a detailed and (to me) quite persuasive critique of the focus of the WTO on increasing trade for the sake of trade rather than considering more carefully which changes in trade policy actually make a difference in the lives of the world's poor. His analysis of the Doha Round suggests that, contrary to the received wisdom, a general worldwide liberalization of agricultural markets and removal of developed country subsidies would lead to only small reductions in poverty, and in fact would likely harm many poor consumers in many countries.
   
   I recommend this book highly to anyone interested in globalization and development. It is extremely well written, though some sections may be slow going for non-economists. The overall analysis should be quite readable and thought-provoking for the general reader wishing to get a fresh perspective on these important issues.

5 comments about The Sovereign Individual: Mastering the Transition to the Information Age.

1. From the back cover:
   "In the Sovereign Individual, Davidson and Rees-Mogg explore the greatest economic and political transition in centuries - the shift from an industrial to an information-based society."
   
   The book was first published in 1997. It is now 2008 and I was struck by how prescient and relevant "The sovereign individual" is, several of the changes described in the book are already happening.
   
   In the first chapter they describe four stages for society:
   1- hunting and gathering societies
   2- agricultural societies
   3- industrial societies
   4- information societies
   
   Most of the book is devoted to explaining the transition from the industrial to the information society. Chapter 2 "Megapolitical Transformation in Historic Perspective" provides a useful framework for understanding the four stage of society and it's transitions:
   1- Topography
   2- Climate
   3- Microbes
   4- Technology
   
   According to the authors technology is the most important factor, because of it's impact on the means of production and on the use of force.
   
   They spend quite a bit of time discussing the importance of violence in each of the four stages of society in shaping the political and social organization.
   
   They share their views on how the information-aged society will impact:
   
   - politics and violence (weakening of the nation-state and the rise of organized crime)
   - wealth creation and distribution (unequal and unequal)
   - the changes to morality, especially among the elite
   
   The book is written in a friendly but somewhat dark tone. 'Join us on a tour of the past, present and future' they might say. Read it.



2. A provocative book that aims to forecast the technological, political, and financial shape of things to come. The authors draw upon lessons of history and economic and sociological theory to offer strong opinions about the steps necessary to master the dynamic and, in their view, often chaotic transition to the information age. Among their predictions: the devolution of the governments of the Western industrialized nations, the creation of a cybercurrency initially linked to the gold standard and protected by unbreakable encryption technology, and nationalist reactionary policies fueled by protests from segments of society left behind by the advances of the information age.
   
   The writing is suffused with dry British wit, sarcasm, and an unflinching sense of realism (some might call it hyperbole). Combined with the occasional right-of-center rant, this might be a too much for some readers, especially for those with left-of-center sensibilities. However, the book's transformative value and intellectual heft more than compensate for the stylistic foibles of its authors. Highly recommended.
   
   [...]



3. "Are you ready to free your mind, Neo?"
   
   Just as Morpheus set about freeing captured minds from the grasp of The Matrix, James Dale Davidson has been passionate about showing people the real world political and financial MATRIX around them...and how it is used to control them and their ability to amass a fortune. He has done this quite well in several of his books, including this one.
   
   I am well versed with James Dale Davidson's writing. I started off with The Great Recogning, subscribed to his private newsletter, went to see him in person, spent a weekend at one of his seminars (EXCELLENT) and went on an investment tour with him. James is the real deal...a thinking man that knows alot about wealth creation and wealth protection. His major thrust has been for individuals to NOT see themselves as citizens of one particular country or governmental structure, but to see themselves as free entities who CHOSE which governmental structure best serves THEIR interests...because the greatest threat to your wealth and financial security is GOVERNMENTS (see Bankrupcy 1995 for statistics of what happens when a country becomes insolvent).
   
   Thus the concept of the Sovereign Individual.
   
   This book is an introduction to the world of being sovereign. If you read The Great Recogning and/or Blood In The Streets, you are very familiar with the concepts and really, not much new is offered by this book. If you haven't read those other books, then this book is a GOOD place to start. Then quickly move to The Great Recogning - because it is for THIS reason above all esle, that you will want to position yourself as sovereign and protect your family, your freedom and your lifestyle.
   
   IF freedom is important to you, if you feel a little uneasy with what is going on with the American economy and concerned about its imminent collapse...or America's POTENTIAL for collapse, this book is a MUST read for you.
   
   Buy it now!



4. Keep in mind that this book was written around 1997, before 9/11/2001.
   It is summer 2008 and the "US empire" is in decline.
   The US debt is quickly approaching the $10 trillion mark.
   (that is a one with thirteen zeros behind it)
   The US dollar is in decline.
   The US financial markets are in meltdown mode.
   The FDIC has taken over IndyMac, more banks to follow.
   The government is talking about a bailout of Fannie Mae and Freddie Mac.
   (how high can the US deficit go?)
   The government has enacted the so called "patriot act".
   The government has expanded the FISA rules.
   The housing market is in deflation mode.
   The commodities market is in inflation mode (oil approaching $150).
   
   Here are few quotes from the book:
   Page 20: "Governments will violate human rights, censor the free flow of information, sabotage useful technologies, and worse".
   
   Page 23: "All nation-states face bankruptcy and the rapid erosion of their authority".
   
   Page 29: "We forecast and explained why militant Islam would displace Marxism as the principal ideology of confrontation with the West".
   
   Page 137: "You can expect to see crises of misgovernment in many countries as political promises are deflated and governments run out of credit".
   
   Page 196: "Governments that tax too much will simply make residence anywhere within their power a bankrupting liability".
   
   Page 197: "Paper money also contributed significantly to the power of the state, not only by generating profits from depreciating the currency, but by giving the state leverage over who could accumulate wealth".
   
   Page 198: "Control over money will migrate from the halls of power to the global marketplace".



5. This is a very interesting book with disturbing implications: the authors contend that, in our lifetimes we will see the messy demise of nation states, with the most advanced of the Western democracies falling the farthest and hardest. The grim future they depict is essentially that of Stephenson's "Snow Crash" or Gibson's "Neuromancer".
   
   In making their case, the authors draw an interesting and convincing parallel between today's concepts of patriotism and national duty, and the Church in late medieval Europe.
   
   I'd fault the book for its hyped up rhetoric and excessive repetition of the same historical factoids. Also, the dire predictions of this 1997 book are somewhat undermined by the predictions of the scope of the Y2K computer failures, and also by the odd depiction of Peruvian ex-dictator Fujimori as the wave of the future.

2 comments about The New Elite: Inside the Minds of the Truly Wealthy.

1. I've spent the last 18 months researching academic journals, scientific and popular literature about how those who achieve the top 5% of wealth end up where they are. I've gone through three dozen books, of which four were quite good and the others were brutally poor.
   
   The New Elite by Taylor, Harrison and Kraus stands head and shoulders above the rest.
   
   The book serves two broad purposes.
   
   1) You learn how wealthy people think and who they really are.
   2) You learn the fundamentals of how they will perceive your marketing to them. (Are they interested in what you have to sell?)
   
   Either of the two is a good enough resaon to pick up and devour this book.
   
   THK have undertaken their own research which asks all the right questions. Their analysis is spot on and what readers of every income bracket can gain from what is here could be life changing.
   
   This is not a self help/how to be successful book. It does not set out to accomplish that, but if you simply read between the lines...
   
   Five stars.
   
   Kevin Hogan
   Author of The Science of Influence



2. It has been said that the wealthy are different. Well, not so much. In fact, according the in-depth study done by the authors of this book, the wealthy came not from wealth but from middle class backgrounds. They therefore have all of the middle class ethics and needs, wants and desires.
   
   Yet within the wealthy, there are differences. From first becoming wealthy to having had wealth over a decade or more, money brings different meaning to the groups within the wealthy.
   
   If you're a marketer, you should read this book. I came to it as someone who makes a living understanding different groups and how to sell to them. To that end, I got a good deal of useful information from the book.
   
   You'll learn what they read, what they buy, how they feel about their wealth and money in general. You'll learn far more about them by reading this book than anything you might see on television.
   
   It is full of research. It has lots of facts and figures and very little editorializing, which I like. This is by far the most interesting and best written book on this subject that I've read and I highly recommend it to you.
   
   - Susanna K. Hutcheson

5 comments about Guide to Economic Indicators: Making Sense of Economics - Sixth Edition.

1. As the title says, this book can help you make sense of economic indicators. The more you know, the easier it is for you to understand the economical aspects of society, and this seemed to add a lot more to my knowledge, and it clarified other thoughts.



2. The book itself will be of great use for those analysts who evaluate country risk analysis. Economic indicators sometimes tend to be hard to understand, but this guide makes them easy to comprehend and relate to each other.



3. True to the style of The Economist, this book makes everything seem easier than it really is. However, for people who spend too much time thinking about economic issues, this is actually rather refreshing, much like a cold beer after a long day's work.

   Some examples: "In the long term, the growth in economic output depends on the number of people working and output per worker (productivity)" (Page 41); Or "In general, the more optimistic consumers are, the more likely they are to spend money. This boosts consumer spending and economic output" (Page 93)...

   ...One begins to yearn for the days where economics was more of an explanatory and less a mathematical science.

   The guide is divided into a number of chapters discussing issues and examples related to
   - How economic activity is calculated, and what the main indicators GDP/GNP/NNI capture and do not capture, as well as what changes in these indicators or their components mean.
   - Employment indicators such as employment by sector or the unemployment rate
   - Balance of payments and fiscal indicators, such as tax revenue or budget deficit
   - Consumer indicators, such as disposable income or consumer confidence and their significance
   - Investment and savings indicators, such as investment intentions or sales/inventory ratios
   - Business indicators, including business conditions, auto sales, construction orders and other common stats
   - Exchange rates and financial market indicators, such as interest rates and money supply.
   - Prices and wages, like the effect of oil price changes, among others

   Coverage of the most common and widely available indicators is fairly comprehensive. Given the simplicity of the book, it is better to have a certain level of economic knowledge and opinion to be able to put the content in context. Not much different to reading The Economist, really.




4. I expected a guide that would assist in determining where we were in the business cycle. This wasn't really it. The book is structured more like an encyclopedia - analyzing each indicator in detail and in isolation. A fine addition to anyone's economic reference books, but disappointed me by failing to treat the economy as an organic whole.



5. I wish I would have had it during Macroeconomics class for a reference.

5 comments about A World of Wealth: How Capitalism Turns Profits into Progress.

1. The author is a free market advocate and makes a case for less regulation. However, I think current events have proved that we need more market regulation instead of the 'Wild West' global mentality that has caused Americans to lose 50% of their retirement portfolios.
   
   Read this book for the opposing viewpoint.



2. This book is an approachable read on how capitalism has impacted the world. After a short introduction containing basic principles, it examines how a capitalist approaches issues like immigration, taxes, health care, and retirement. This book moves beyond the rhetoric of republican v. democrat to an exploration of capitalist principles and how they apply to today's very real economic challenges. I found it to be a easy to understand and highly readable economics book -- something I didn't expect because those aren't words I usually use to describe economics. As someone who often runs the other direction from books like this, I found I actually enjoyed reading it. I recommend this if you want to understand capitalist principles and how they apply to today's challenges without being bogged down by ivy tower language.



3. While Mr. Donlan succeeded in providing an overview of free market forces in play: giving historical examples and possible approaches to tackling everything from the "energy crisis", "health care", to "retirement security", he (like many economic "experts") couldn't have possibly imagined the current, gross destruction of wealth and failing economies of the world due to sheer greed and lack of government regulations over speculative trading (e.g.,subprime derivatives). "Irrational exuberance" became irrational stupidity by the over-leveraged investment and banking industries.
   
   "Those who cannot remember the past are condemned to repeat it."
   
   -George Santayana, 1863-1953, American philosopher
   
   How appropriate.



4. This book is very challenging, in its content. You think you know what capitalism is, right? What it's strengths and weaknesses are? Probably not, in truth. In the USA, the most consistently capitalistic country around, markets and finances and trade are all still highly regulated. The US government remains ambivalent about free markets. Such is the nature of democracy, Thomas G. Donlan explains, where 20% of the people produce 80% of the wealth... but everyone can vote.
   
   A World of Wealth is very well written, clear and witty and fun to read. Donlan is an accomplished writer for various financial magazines, and it shows. His premise, which he proves quite convincingly, is that capitalism -- true and unregulated -- is the solution to the biggest problems of today's world. He covers energy costs, global warming and environmental issues, immigration, health care, and many other important topics.
   
   The general theory proposed is that demand drives prices up, and the resulting high prices mean high potential profits. Where there's money to be made capitalists will invest their resources in that market, which will increase (and improve the quality of) the supply, and prices will go back down. Donlan notes where there seem to be exceptions to the rule. Sometimes the producers don't pay for the costs of their production, instead everyone else does (pollution and wild fishing are given as examples).
   
   This is definitely the book for you if you want to start intelligent arguments with people at dinner parties, or even if you just want to challenge your own assumptions. I've always considered myself pretty pro-capitalist, but even I sometimes found myself thinking, "No, that can't be how it is!" and yet... Donlan's arguments are very convincing.
   
   I only wish this had come out a year later, because I would have loved to read Donlan's take on the current financial situation. I worry, also, that readers may be missing out on this great book. Given the current financial climate, I suspect books on economics might not be as popular as at other times.
   
   Overall, highly recommended.



5. of ANY political stripe because as Mr. Donlan reminds us, when it comes to economic policy, both Democrats AND Republicans tend to be idiots (for that matter so do a disturbingly large number of economists and businessmen). In fact given the 80-20 Rule under which 20 percent do most of the producing while the other 80 percent have most of the votes, "It's a pleasant surprise that democracies foster much investment and productivity growth at all."
   
   Of course there are widely varying degrees of economic idiocy. The difference between a Capitalist-sympathizing MBA earner arguably doing more harm than good in futile attempts to stave off or shorten recessions and a clueless naif who honestly believes that the only reason government control of the economy failed before is because no one as smart as he is was running it is quite substantial, as the largest post-election stock market crash in history, following upon the largest pre-election stock market crash in history as Wall Street began to price in an Obama victory, demonstrates to he who has eyes to see and ears to listen.
   
   America has embarked upon Yet Another remedial course in Economics 101, at the end of which hopefully a large majority will have learned, "Oh, THAT is why anti-capitalistic government policies are bad." In the meantime those who would get a head start on the graduates of the School of Hard Knocks could do a lot worse than to read this book. In clear and plain English Mr. Donlan explains why capitalism is the only practical solution to problems like the Energy Crisis, Global Warming (IF it is even happening, an argument for another day), trade imbalances, immigration, health care, retirement security, and economic recessions, depressions, and panics.
   
   Capitalism is not merely the best economic system; it is the only economic system that actually works. Everything else mankind has tried leads only to increased poverty and misery,...
   
   and eventually to dictatorship, Gulags, and mass graves.

5 comments about Dubai: The Vulnerability of Success.

1. This highly polished and painstakingly researched book is the first serious study of Dubai - one of the world's fastest growing and most headline-grabbing cities. There are eight chapters, beginning with a substantial historical background before turning to the present day development of the economy and the survival of the ruling family. Although respectful and dispassionate throughout, no punches are pulled and the book builds up to a strong climax with a discussion of security and terror threats. In some ways, the author himself is of equal interest as the book, with englishman Dr.Davidson considered to be as influential as a sheikh in some parts of this oil rich region.



2. Although written by an academic authority on the subject this book was very readable, and in places I had to remind myself this was non-fiction, such is the scale and pace of Dubai's development. I ordered this quite some time ago, as a pre-release, and only received it this month, so there must have been some delays, but it was worth it. The history is fascinating and it is clear that the origins of the city still have a major influence on its current activities. I never understood before how the UAE and Dubai fitted together, along with many other questions I used to have in mind, but I now found explanations to this normally hidden and secretive part of the world. The information on the ruling families is incredible. Although it would have been good to have some color to the maps included, this book is absolutely invaluable and seems to be written by a genuinely neutral and construcitvely critical author, unlike most other books on the Persian Gulf.



3. Despite the myriad of articles and sound bites about the latest achievements of Dubai, works dedicated to an in depth analysis of the city state have been extremely sparse. Search Dubai in Amazon and nearly all the books published were travel guides, with the exception of the book Dubai & Co.: Global Strategies for Doing Business in the Gulf States. There is a smattering of outdated literature about the UAE, but this does not little to illuminate the underlying trends and contradictions of the Emirate. Therefore Christopher M Davidson's academic work is particularly interesting and timely. Titled the vulnerability of success, this book has become the `go to' for a history of the Emirate and the ability to put the current achievements in context.
   
   Upon starting the book, I immediately skipped from the 19th century tribal histories to the last chapter on the eponymous `Vulnerabilities of Success'. I was disappointed to find little that had not already been discussed in further detail elsewhere. For example, the subsection: `Present threat of Terror' merited only 2 pages, and the dynamics of the economy in the last few years seems largely neglected. For those looking for an up to date picture of Dubai politics and economics, even The Report Dubai 2007 contains more depth. But lacking any other reading material on Dubai, I flipped back to 19th century tribal politics.
   Despite his title, Davidson's work on the history of Dubai is the core of this book, and where he certainly has the most to contribute. Through his narrative it becomes clear how far back the tradition of capitalism and immigration extend, exemplified in the anecdote that "Some of the earliest motorcars imported into Dubai were purchased for the expressed purpose of bringing Pakistanis across the mountains from Fujairah so they could work without the need for visas or time consuming paperwork." (91) Davidson also gives satisfactory answers to some of the most vexing questions about demographics, such as stating authoritatively that nationals account for only 4% of the population, and that 75% of the population is male. (168, 192) Finally, he manages to provide a complete picture of Dubai's role in the UAE and the gulf. One revelation is that the UAE actually convinced Saddam to leave power:
   
   The UAE also tried to head off the 2003 Anglo-American invasion of Iraq by offering Saddam Hussein and his family sanctuary on the condition that he respected Bush's ultimatum and left Iraq. Although it would appear that Saddam actually accepted this proposal, only for the Arab League to later force the UAE to withdraw it on the grounds that it represented interference in a fellow member's internal affairs. (p. 168 from Sheikh Muhammad bin Zayed in 2005)
   Another is the recent integration of Dubai's forces into the UAE network, and the Unions attempts to cozy up to numerous western powers.
   
   In sum, this is the reference book that lays the groundwork for further research on Dubai's history. While weak in analyzing emerging trends, Davidson's is valuable due to a thorough and interesting investigation into the context of the phenomenon that is Dubai.



4. As other reviewers have pointed out, this book is full of information and facts, and is a very good introduction to Dubai/UAE. However, I didn't give it a 5-star because some sections were written a little too matter-of-factly; I found myself having to put the book down for a couple of days before picking it back up again to finish it.
   Nevertheless, it is a good read overall for anyone who's interested in knowing more about what Dubai has been through.



5. This book is for the serious reader; it reads like an academic treatise--dense, magnificently researched with fascinating subject matter.
   
   The first couple chapters succinctly cover the emirate's history. The following chapters detail the first free zone--Jebel Ali port--and the recent emergence of Dubai's diversified economy.
   
   Chapter five concentrates of the distributed-wealth principle and Dubai's reliance on its rentier nature. The next chapter speaks of the paradoxes embedded in present day Dubai(the mix of East-West).
   
   Dubai's relationships with the other emirates are explored in chapter seven, providing some really fascinating insights (who know alcohol was legal in Sharjah until Suadi helped bail the emirate out of its banking crisis in 1989?).
   
   And the book concludes with a chapter on Dubai's naughty underbelly--gun running, terrorism, etc. Personally, I found it the least interesting chapter of the book.
   
   One warning: if I hadn't lived in Dubai for a year before reading this book, it would not have resonated as strongly. Frankly, if you don't have a baseline understanding of Dubai, you may not get much out of it; the book is too dense and specific for a cursory understanding.

5 comments about Out of Poverty: What Works When Traditional Approaches Fail (BK Currents (Hardcover)).

1. An inspiring book that makes one think about the greater good that can come out of poverty eradication & how we can all be a part of it.
   
   Criticism:
   
   1. Author does not cover how he made the transition from being a psychiatrist to creating IDE. This makes it harder to understand how one can participate in this cause, even if one wanted to.
   
   2. While the book is a great food for thought, it seems to be more focused on the destination rather than the journey. At times, it reads more like a journal which may be intentional, but this inconsistency gives the reader, a rather half baked impression.
   
   3. Author's disagreement with major organizations such as the UN feel like a rant at times, as he only criticizes them without putting forth any concrete suggestions for bigger issues such as infrastructure (development of roads, bridges, dam development, power generation, healthcare & educational programs).
   
   [...]



2. This book summarizes Mr. Polak's work with his company, IDE (International Development Enterprises), which focuses on creating affordable, useful products that can assist small-plot farmers in developing countries to increase their income. Throughout, he presents salient and frankly obvious points about the very poor and their needs that most aid organizations either ignore or just never thought to address. For instance, from his introduction: "The biggest reason most poor people are poor is because they don't have enough money." See? Obvious.
   
   The point is, however, most aid organizations don't address this root problem, choosing instead to go for big, showy projects that cost a lot and sound really ambitious, but just don't do anything to benefit the average very poor family. Polak suggests a twelve point plan to create programs that can really benefit the very poor. These include things like talking to people with the problem you are interested in, and really listening to what they have to say about it; learning everything possible about the problem's specific context; thinking in terms of scalability; developing measurable outcomes; and designing to specific cost and price targets.
   
   The book tells the story of how one family in Bangladesh was able to move from barely surviving on less than $1 a day and not having enough food to make it through the year to relative prosperity and a much more comfortable lifestyle. This was made possible in part by their access to affordable, small-scale irrigation equipment, allowing them to make more effective use of their other resources - their land and their physical labor. Polak points out that when families can earn more money, they almost automatically do things like improve their diets, further their education, seek better healthcare, and generally become more empowered to improve their lives in the ways they see fit, according to their own priorities.
   
   It took some mental acrobatics for me to begin to accept the concept of dollar a day farmers as "consumers" rather than "aid recipients." But as a market this group has a huge, untapped potential. There are something like 800 million small farmers; the combined purchasing power (given the right products and a little access to credit) would be enormous. Overall, I found this book engaging and its message hopeful and practical. It certainly provides food for thought.



3. After several years of trying different ways to help people get out of poverty, what Paul Polak shares in this book is the most practical and comprehensive help and guidance that I have found. He is not a great writer, but the simplicity common sense findings brings us back to basics to help people in poverty earn their way out of it, in an unsubsidized and sustainable way.
   
   A must read for every one with interests in this endeavor!
   
   Javier Amarante



4. This is an excellent book written by person who approaches poverty reduction through agricultural solutions for small farmers that are sustainable, practical and very attractive culturally and resource-wise to poor farmers. Some of the cases and anecdotes provide useful information for relief workers and donors seeking to alleviate the suffering of those who live in rural poverty by elevating their standard of living in a sustainable manner.



5. "Out of Poverty" tells the lessons Paul Polak (Denver psychiatrist working with the local homeless) learned both in Denver and Africa in working with the poor.
   
   Polak's main emphasis is to go where the action is, talk to the people with the problems and listen to what they say, and then learn everything you can about the problem and alternative solutions. Don't just sit in a field office and theorize from there!
   
   Think and act big - eg. plan for 50% progress within 15 years, not just .1%. Make certain your approach is cost-effective.
   
   Why do so many programs fail? Polak says the typical large-scale poverty programs rely on big solutions that benefit only big producers and users; failure to create ownership (care and repair) are other problems.
   
   Another problem is that many programs try to do too much. Polak suggests addressing poverty directly - help recipients make more money, rather than focus on increased political power, education, illness eradication, etc. Greater income allows the poor to make their own choices about which problems to then eliminate, and is much simpler to manage from a donor's perspective.
   
   Helping the poor earn more often involves making cheaper alternative resources - eg. treadle pumps, irrigation systems at lower cost than then available. Ways to do this include reduced weight (eg. operate at lower pressure, allowing thinner irrigation pipe), go back to earlier historical designs and consider remaking them using new materials.
   
   Polak also explains why farmers are often so seemingly resistant to new approaches. The high costs of loans, vs. low incomes, make eg. use of more expensive new seeds very risky vs. the chance of a flood wiping out their entire crop.
   
   Developing Country Market Impediments: Lack of entrepreneurial spirit, failure to see an opportunity or recognize how to sell extra crops, no intellectual property protection to incentivize development of new tools, hope for subsidies ("Why buy a pump when maybe waiting will bring one free?"), corruption (surer road to getting a good job for one's son), difficult transportation, lack of information about opportunities, poor access to credit, difficulty aggregating product from small farmers.
   
   Recommends Gates Foundation perspective of insisting on measurable impacts that are attained.

No comments about Bailout Nation: How Easy Money Corrupted Wall Street and Shook the World Economy.

No comments about The Wealth of Nations: With a Foreword by George Osborne, MP and an Introduction by Jonathan B. Wright, University of Richmond.