The Aid Trap

R. Glenn Hubbard is dean of Columbia Business School and the Russell L. Carson Professor of Economics and Finance. He was chairman of the Council of Economic Advisers from 2001 to 2003 and has published more than one hundred articles on investing, banking, energy economics, and public policy. His most recent book is the bestselling Principles of Economics. William Duggan is senior lecturer at Columbia Business School, where he teaches strategy in graduate and executive courses. He has twenty years of experience in foreign aid. His most recent book, Strategic Intuition, was named Best Strategy Book by Strategy + Business.

Anyone who wants to end poverty should take seriously the powerful and provocative arguments of The Aid Trap. Even if R. Glenn Hubbard and William Duggan don't convince you to embrace their new Marshall Plan, you will come away with a deeper appreciation for the limits of charity, the dangers of top-down planning, and the importance of creating a vibrant and open business sector. -- J. Gregory Dees, Center for the Advancement of Social Entrepreneurship, Duke University's Fuqua School of Business R. Glenn Hubbard and William Duggan make a persuasive case that international aid flows have been grossly misdirected. In trying to do good, those in the developed world may actually have ended up doing substantial harm to the developing world. Hubbard and Duggan instead argue that aid flows should be redirected towards encouraging business and entrepreneurship. This is a timely and readable book about how to solve one of the most challenging problems of our time. -- Raghuram G. Rajan, The University of Chicago Booth School of Business The authors' willingness to confront conventional wisdom and examine and energetically attack the problem are refreshing and necessary. Publishers Weekly 7/6/09 The Aid Trap is not about the failure of conventional aid but provides the outline of a solution that can work if taken seriously. It is that rare prescriptive book, and the world must pay attention. -- Muhammad Yunus, winner of the Nobel Peace Prize Glenn Hubbard and William Duggan's considered analysis of The Aid Trap adds a new and important dimension to the on-going development debate. This book, grounded in logic and supported by evidence, presents reasonable and sustainable steps that will move Africa forward. -- Dambisa Moyo, author of Dead Aid: Why Aid In Not Working and How There Is a Better Way for Africa A few years ago, we in Mauritius set out to make it easier for our own people and foreign companies to do business in our country. The result has been far more prosperity