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We (DON’T) Know How to Help the Poor

Juan Carlos Monterrey

Jeffrey Sacks believes that in order to eradicate poverty, rich countries must provide $195 Billion per year over twenty years in foreign aid. He argues that rich countries must help the poor. On the other hand, William Easterly and Dambisa Moyo believe aid does more harm than good and poor countries must rely on one simple idea: When markets are free and the incentives are right, individuals will find ways to solve their own problems. Who is right…? We simply don’t know.[1]

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