0:00:01.599,0:00:05.490 now let's turn to jeffrey sachs perhaps the most famous living development 0:00:05.490,0:00:08.209 economist 0:00:08.209,0:00:10.419 taxes had a wide-ranging career 0:00:10.419,0:00:13.479 which is in some ways tracked the course of world events 0:00:13.479,0:00:16.949 expand about development practice and research into 0:00:16.949,0:00:18.619 development economics 0:00:18.619,0:00:20.800 he spent most of his career by the way 0:00:20.800,0:00:25.049 at harvard university and later at columbia 0:00:25.049,0:00:27.560 sex is pretty well known to the general public 0:00:27.560,0:00:30.190 in part because he spent time associating 0:00:30.190,0:00:32.869 with various movie stars and rock stars 0:00:32.869,0:00:36.260 so jeff sachs really is the economist at a celebrity 0:00:36.260,0:00:37.300 himself 0:00:37.300,0:00:39.699 but we're going to look at another angle of this work 0:00:39.699,0:00:43.610 mainly his impact on the theory and practice of economic development 0:00:43.610,0:00:49.320 if you're thinking uh... facts isn't that the guy i saw with angelina jolie 0:00:49.320,0:00:52.110 that's probably right 0:00:52.110,0:00:55.970 sax first made his name is an economist in the early nineteen eighties 0:00:55.970,0:01:00.230 he wrote a series of papers on international trade exchange rates an 0:01:00.230,0:01:02.730 international policy coordination 0:01:02.730,0:01:05.030 and in the eighties he became tenure at harvard 0:01:05.030,0:01:08.190 as one of the youngest full professors at harvard ever 0:01:08.190,0:01:12.360 if you're interested in reading sax on international trade is a good synthetic 0:01:12.360,0:01:14.479 nineteen ninety-five paper he did 0:01:14.479,0:01:15.729 which is online 0:01:15.729,0:01:16.460 it's called 0:01:16.460,0:01:20.150 economic reform in the process of global integration 0:01:20.150,0:01:24.490 and that paper he talks about by the opening up of economies to trade 0:01:24.490,0:01:29.079 is really is a prerequisite and driver of further policy reform 0:01:29.079,0:01:32.380 but although this work on international trade had a real impact 0:01:32.380,0:01:37.190 it's actually not what sex is best known for today 0:01:37.190,0:01:40.719 sax move more into the public eye in the mid nineteen eighties 0:01:40.719,0:01:42.389 with people living in reforms 0:01:42.389,0:01:45.440 especially the reforms against hyperinflation 0:01:45.440,0:01:49.350 in nineteen eighty five the government of bolivia asked fax if you would come 0:01:49.350,0:01:50.130 down 0:01:50.130,0:01:53.930 and help them with their economy and he came up with a comprehensive 0:01:53.930,0:01:57.670 fairly drastic plan for ending their hyperinflation and reforming their 0:01:57.670,0:01:58.860 economy 0:01:58.860,0:02:02.790 by no means did this plant fix all or even most of their problems 0:02:02.790,0:02:05.850 but it did help the bolivians and the hyperinflation 0:02:05.850,0:02:08.569 an overall it can be judged a success 0:02:08.569,0:02:12.549 it was a form of what later came to be called shock therapy 0:02:12.549,0:02:16.379 plans of this sort were based on tight controls over the money supply 0:02:16.379,0:02:17.689 freeing up prices 0:02:17.689,0:02:21.729 and liberalizing the economy 0:02:21.729,0:02:25.280 sexes connection to the so-called shock therapy continued 0:02:25.280,0:02:29.670 and indeed it intensified as eastern europe started to throw off communism 0:02:29.670,0:02:31.419 in the late nineteen eighties 0:02:31.419,0:02:35.239 at that point it was then necessary to have plans for reform 0:02:35.239,0:02:39.129 sax is added poland and he was very important there as an advisor and it's 0:02:39.129,0:02:43.209 an advisor for dismantling the communist system and moving toward a market 0:02:43.209,0:02:44.579 economy 0:02:44.579,0:02:47.949 again faxes recipes for often fairly drastic 0:02:47.949,0:02:51.879 namely the sense that in economy could and indeed should do a lot of things 0:02:51.879,0:02:52.879 upfront 0:02:52.879,0:02:53.829 very quickly 0:02:53.829,0:02:57.109 to re-establish a market economy right away 0:02:57.109,0:03:00.760 with the passage of time i would judge shock therapy in poland 0:03:00.760,0:03:03.399 actually two has been quite a success 0:03:03.399,0:03:07.450 lately poland has been growing rapidly and it really has joined the community 0:03:07.450,0:03:09.159 of western european nations 0:03:09.159,0:03:11.619 as a more or less equal partner 0:03:11.619,0:03:14.989 in russia the use of shock therapy was more controversial 0:03:14.989,0:03:18.209 because it was accompanied by a series of privatizations 0:03:18.209,0:03:20.130 which led to a lot of corruption 0:03:20.130,0:03:24.359 and redistributed wealth in a manner which many people consider unjust 0:03:24.359,0:03:25.680 in fairness to saks 0:03:25.680,0:03:27.439 these privatizations and russia 0:03:27.439,0:03:29.410 happened after he left the country 0:03:29.410,0:03:31.889 and stop serving there as an advisor 0:03:31.889,0:03:33.890 nonetheless the important point here 0:03:33.890,0:03:39.409 is that shock therapy remains a somewhat controversial concept 0:03:39.409,0:03:43.469 by the way if you'd like to read saxon shock therapy i recommend this piece 0:03:43.469,0:03:45.519 which is available online 0:03:45.519,0:03:49.299 in any case you can already see the tax has been extremely important 0:03:49.299,0:03:55.149 as a practitioner of these science and art of economic development 0:03:55.149,0:03:57.769 moving back to economic theory and research 0:03:57.769,0:04:00.430 sexes had an important piece on what is called 0:04:00.430,0:04:02.379 the natural resource curse 0:04:02.379,0:04:05.229 that resurrected the notion that possibly countries could experience 0:04:05.229,0:04:06.949 growth problems 0:04:06.949,0:04:10.900 precisely because they had natural resources 0:04:10.900,0:04:13.909 natural resource might make the country more corrupt 0:04:13.909,0:04:17.559 or it might make them relied too much on this natural resources 0:04:17.559,0:04:21.209 we consider this argument in more detail in our video unit on 0:04:21.209,0:04:22.780 the natural resource curves 0:04:22.780,0:04:24.779 so i would refer you to that 0:04:24.779,0:04:25.900 needless to say 0:04:25.900,0:04:28.710 sax made important contributions in this area 0:04:28.710,0:04:31.740 and he brought up a new what had been told and at the time 0:04:31.740,0:04:35.509 somewhat it and indeed they 0:04:35.509,0:04:39.260 sacks has been an important researcher on african economic growth 0:04:39.260,0:04:41.849 and why it is chronically being so slow 0:04:41.849,0:04:45.020 sax attributes many of africa's economic problems 0:04:45.020,0:04:48.969 tunic unique geography a lower productivity of the soil 0:04:48.969,0:04:54.050 greater problems with rainfall and also demography africa has an especially high 0:04:54.050,0:04:59.009 use dependency ratio that is a lot of young people who need to be supported 0:04:59.009,0:05:03.429 and africa has many more infectious diseases which need to be worried about 0:05:03.429,0:05:06.620 when you put all these factors together according to saks 0:05:06.620,0:05:09.520 africa faces really some very special burdens 0:05:09.520,0:05:15.270 in attempting to achieve economic growth 0:05:15.270,0:05:20.120 in particular sax cooperative piece called the economic burden of malaria 0:05:20.120,0:05:23.830 which looked closely at just how much malaria held back the economies of 0:05:23.830,0:05:25.080 africa 0:05:25.080,0:05:28.110 the problem of malaria is not only that it kills people 0:05:28.110,0:05:31.980 but also when you're young if you're infected by malaria it stunts your 0:05:31.980,0:05:33.100 physical growth 0:05:33.100,0:05:37.050 it may start your brain growth and it can lead to long-lasting and persistent 0:05:37.050,0:05:38.180 problems 0:05:38.180,0:05:42.479 the importance of infectious disease has been a recurring theme of sexist work on 0:05:42.479,0:05:45.840 africa 0:05:45.840,0:05:49.830 for summary of a lot of sax is thought on this topic i would refer you to his 0:05:49.830,0:05:50.629 peace 0:05:50.629,0:05:54.580 institutions don't rule and also alex is video on 0:05:54.580,0:05:56.770 geography development disease 0:05:56.770,0:06:02.960 which talks about taxes ideas here at much greater length 0:06:02.960,0:06:07.000 more recently sacks has been at the forefront of the millennium villages 0:06:07.000,0:06:08.629 project in africa 0:06:08.629,0:06:11.880 which is being done jointly with the earth institute at columbia 0:06:11.880,0:06:13.949 and also the united nations 0:06:13.949,0:06:16.519 the idea here is really quite ambitious 0:06:16.519,0:06:19.999 that a sufficiently comprehensive program of foreign aid 0:06:19.999,0:06:23.210 can help targeted villages escape a poverty trap 0:06:23.210,0:06:25.740 and blossom into economic development 0:06:25.740,0:06:27.499 this is occasioned a lot of debate 0:06:27.499,0:06:28.959 and we have an entire video 0:06:28.959,0:06:33.279 just on the millennium villages project and so over for you to that 0:06:33.279,0:06:34.389 needless to say 0:06:34.389,0:06:37.330 this project has captured a lot of media attention 0:06:37.330,0:06:41.190 and right now it's the single biggest project which sax is most closely 0:06:41.190,0:06:45.019 identified with 0:06:45.019,0:06:49.289 taxes done so many different things that importance in development economics 0:06:49.289,0:06:53.309 and i've tried to offer references to each as we've been going along 0:06:53.309,0:06:56.550 they also apologized to many of sacks is co-author is 0:06:56.550,0:06:58.989 we just haven't had time to mention the mall 0:06:58.989,0:07:01.199 socks also has numerous books 0:07:01.199,0:07:04.789 if you're going to read just one i think the best one is an introduction to his 0:07:04.789,0:07:06.400 thought was the one called 0:07:06.400,0:07:07.990 the end of property 0:07:07.990,0:07:10.419 in any case there's plenty of sacks of a level 0:07:10.419,0:07:11.929 online and free 0:07:11.929,0:07:16.289 keep in mind that what's really special events acts is a development economist 0:07:16.289,0:07:18.130 is this dual role as 0:07:18.130,0:07:20.170 advisers wise practitioner 0:07:20.170,0:07:21.150 and researcher 