Jeffrey Sachs' Differential Diagnosis for Building an Economy
Submitted by diaskeaus on Wed, 03/22/2006 - 03:41
Tags:
- POVERTY TRAP
- Poverty mapping
- Proportion of households lacking basic needs
- Spatial distribution of household property
- Spatial distrubution of basic infrastructure (power, roads, telecoms, water, and sanitation)
- Ethnic, gender, generational distribution of poverty
- Key risk factors
- --Demographic trends
- --Environmental trends
- --Climate shocks
- --Disease
- --Commodity price fluctuations
- --Others
- ECONOMIC POLICY FRAMEWORK
- Business environment
- Trade policy
- Investment policy
- Infrastructure
- Human capital
- FISCAL FRAMEWORK AND FISCAL TRAP
- Public sector revenues and expenditures by category
- --Percent of GNP
- --Absolute levels in comparison with international norms
- Tax administration and expenditure management
- Public investment needs to meet poverty reduction targets
- Macroeconomic instability
- Overhang of public sector debt
- Quasi-fiscal debt and hidden debt
- Medium-term public sector expenditure framework
- PHYSICAL GEOGRAPHY
- Transport conditions
- --Proximity of population to ports, international trade routes, navigable waterways
- --Access of population to paved roads
- --Access of population to motorized transport
- Population density
- --Costs of connectivity to power, telecoms, roads
- --Arable land per capita
- --Environmental impacts of population-land ratios
- Agronomic conditions
- --Temperature, precipitation, solar insolation
- --Length and reliability of growing season
- --Soils, topography, suitability for irrigation
- --Interannual climate variability (hurricanes, etc.)
- --Long-term trends in climate patterns
- Disease ecology
- --Human diseases
- --Plant diseases and pests
- --Animal diseases
- GOVERNANCE PATTERNS AND FAILURES
- Civil and political rights
- Public management systems
- Decentralization and fiscal federalism
- Corruption patterns and intensity
- Political succession and longevity
- Internal violence and security
- Cross-border violence and security
- Ethnic, religious, and other cultural divisions
- CULTURAL BARRIERS
- Gender relations
- Ethnic and religion divisions
- Diaspora
- GEOPOLITICS
- International security relations
- Cross-border security threats
- --War
- --Terrorism
- --Refugees
- International sanctions
- Trade barriers
- Participation in regional and international groups
Author Comments:
Jeffrey Sachs is an economist, and he designed this list to gauge economic poverty levels, but it will also help you in developing your own economy. These are important facets of a society that are important to think about, so you can brainstorm on these topics to have a better idea of how your society is organized.








What do you think of William Easterly's criticisms of Sachs?
I have enormous respect for Easterly. Two years ago I read his book, "The Elusive Quest for Growth," and my thinking about social reform and economic policies was drastically changed, and I recommend that book to everyone I know who is interested in the subject.
Sach's approach to dealing with poverty seems (I will give him the benefit of the doubt for being an intelligent man) irresponsible and in general, assuming that man in power has a greater capacity to do good than evil. I do not agree with Sachs, and much of his book angered me that he would write such, pardon the term, drivel. I initially bought the book because of his influence he apparently has with it. Similar to Amartya Sen's book, "Development as Freedom," which in my opinion, is totally oblivious to the issue of intra-cultural concerns regarding even the concept of freedom as being a western concept. Both Sachs and Sen seem to be in the same camp, of believing that a unilateral power in the UN to make change in relieving debt, controlling the population of African babies through the use of birth control, and increasing the power of UN intervention on a worldwide scale, is going to bring positive change. To me, this seems juvenile, as if we decided to ignore historical fact and dwell on balmy idealism.
I always enjoy Easterly, and especially appreciated the link to his argument, so thank you. I used Sachs Differential Diagnosis for this particular list because it seems to me to be a good world-building technique. If one were to fill in the blanks from the diagnosis during the process of creating a world, many questions would be answered that might not normally have come up, revealing a much deeper civilization and a very interesting place to visit. Although it could be said that Sachs is writing from a bias, and therefore his diagnosis is tainted, I think good can come out of it.