The Development Challenge: A Summary

Sachs argued the role of United States wasn’t sufficient to help poor countries to meet their Millennium Development Goals (MDGs). It was not only because inadequate amount of Official Development Aid (ODA) fund provided, but also because the allocation didn’t support the MDGs directly. Sachs found that $11.8 billion out of $14.6 billion of total U.S. bilateral aid in 2003 were allocated for things that are not directly build long term economic change in impoverished countries. Of the remaining $2.8 billion very little used for transformational development that he believes would support poor countries to escape dependence on outside aid. Ironically, the perception of U.S. peoples about their development aid was much more than what actually they give. Moreover, the U.S. government often couldn’t meet their own promise to provide adequate amount of ODA fund.

Sachs argued that the poor countries will meet the MDGs if they invest more in infrastructure and human capital. However, the ability of their households and government budget is far from sufficient.

Sachs suggested four steps to make U.S. become the world leader on international development to achieve MDGs: make U.S. peoples realize the actual amount of money they spent for ODA, increase the U.S. fund to contribute to achieve MDGs according to international agreement, restructure the ODA allocation so the proportion is directly support MDGs, transformational development, and the Millennium Challenge Account scheme, and finally to adjust the U.S. development assistance program so they can synergize their development aid and national security concern.

Detail of paper:
Title: The Development Challenge
Author: Jeffrey D. Sachs
Journal: Foreign Affairs (March/April 2005)