The Bottom Billion
Hardcover Book Cover for The Bottom Billion
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| Author | Paul Collier |
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| Country | United Kingdom |
| Language | English |
| Subject | Economics, poverty |
| Genre | Non-fiction |
| Publisher | Oxford University Press |
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Publication date
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April 15, 2007 |
| ISBN | |
| OCLC | 76073943 |
| 338.9009172/4 22 | |
| LC Class | HC79.P6 C634 2007 |
The Bottom Billion: Why the Poorest Countries are Failing and What Can Be Done About It is a 2007 book by Paul Collier, Professor of Economics at Oxford University, exploring the reasons why impoverished countries fail to progress despite international aid and support. In the book Collier argues that there are many countries whose residents have experienced little, if any, income growth over the 1980s and 1990s. On his reckoning, there are just under 60 such economies, home to almost 1 billion people.
The book suggests that, whereas the majority of the 5-billion people in the "developing world" are getting richer at an unprecedented rate, a group of countries (mostly in Africa and Central Asia but with a smattering elsewhere) are stuck and that development assistance should be focused heavily on them. These countries typically suffer from one or more development traps.
The Conflict Trap: Civil wars (with an estimated average cost of $64bn each) and coups incur large economic costs to a country. Additionally, in the time period immediately following a major conflict, relapse is highly likely. Collier also argues that the longer a country stays in a state of conflict, the more players become established that profit from the state of tumult, making the situation increasingly intractable.
The Natural Resource Trap: Countries that are rich in natural resources are paradoxically usually worse off than countries that are not. Collier attributes this to a variety of causes:
Landlocked with Bad Neighbours: Poor landlocked countries with poor neighbours find it almost impossible to tap into world economic growth. Collier explains that countries with coastline trade with the world, while landlocked countries only trade with their neighbors. Landlocked countries with poor infrastructure connections to their neighbors therefore necessarily have a limited market for their goods.
Bad Governance in a Small Country: Terrible governance and policies can destroy an economy with alarming speed. The reason small countries are at a disadvantage is that though they may have a low cost-of-living, and therefore be ideal for labor-intensive work, their smallness discourages potential investors, who are unfamiliar with the local conditions and risks, who instead opt for better known countries like China and India.
He suggests a number of relatively inexpensive but institutionally difficult changes:
The book does not include a list of bottom billion countries because Collier believes this might lead to a "self-fulfilling prophecy." However, he states that there are 58 such countries mentioned throughout the book. In his book Wars, Guns, and Votes, Collier lists the Bottom Billion, to "focus international effort":Afghanistan, Angola, Azerbaijan, Benin, Bhutan, Bolivia, Burkina Faso, Burundi, Cambodia, Cameroon, Central African Republic, Chad, Comoros, Democratic Republic of the Congo, Republic of the Congo, Ivory Coast, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Ghana, Guinea, Guinea-Bissau, Guyana, Haiti, Kazakhstan, Kenya, North Korea, Kyrgyz Republic, Lao PDR, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Moldova, Mongolia, Mozambique, Myanmar, Nepal, Niger, Nigeria, Rwanda, Senegal, Sierra Leone, Somalia, Sudan, Tajikistan, Tanzania, Togo, Turkmenistan, Uganda, Uzbekistan, Yemen, Zambia, and Zimbabwe.
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