The Bottom Billion by Paul Collier

  • The Traps

    • Conflict

    • Natural resources



      • Dutch disease – resource exports cause currency to rise in value, making export activities uncompetitive when those activities may be desired for development



    • Landlocked with bad neighbors



      • Increase neighborhood growth spillovers


      • Improve neighbors’ economic policies


      • Improve costal access


      • Become a haven for the region


      • Don’t be air-locked or e-locked


      • Encourage remittances


      • Transparent and investor-friendly environment for resources prospecting


      • Rural development


      • Try to attract aid



    • Bad governance in a small country

  • The Instruments

    • Aid

    • Military – serves four purposes



      • Expelling an aggressor


      • Restoration of order


      • Maintaining post-conflict peace


      • Preventing coups



  • Laws and Charters

    • Our (developed nations’) laws often affect problems in bottom billion countries

    • Charter for natural resource revenues

    • Charter for democracy

    • Charter for budget transparency

    • Charter for postconflict situations

    • Charter for investment

  • Agenda for Action

    • “But do not think that just because your work is unconnected with development you are off the hook. You are a citizen, and citizenship carries responsibilities” (175-176).

    • “The key obstacle to reforming aid is public opinion. The constituency for aid is suspicious of growth, and the constituency for growth is suspicious of aid” (183).

    • Collier’s three central propositions (192)

    • The development problem is new, and is tightly focused on the Bottom Billion

    • The politics of the Bottom Billion is a “dangerous contest between moral extremes” – the main struggle comes from within those societies

    • “We do not need to be bystanders” – Collier lays out his proposed interventions in the book