How to Reduce Poverty in the Developing World

I think there is nothing like a single magic bullet I am afraid. I think if we had one we would have found one by now and I think we need concerted attack on several dimensions actually. Institutions are -- we have always been aware of institutions in my opinion as I said back in 62 President Kennedy -- and as systems have evolved we are very different today in terms of institutions from 50 years ago. In the west for example, Russia is also moving into a different set of institutions and so on and these tend to evolve -- part of the problem of course is they are trying to set up institutions more rapidly, you don't know whether -- it is like you drop them from outside will they take root? What life will they develop on their own?

So these are complex questions but then institutions are important there is not question about it. And policies are important. But there is no I think even when I - I would say that one way to look at it is to say what can we at our end because this is something which all the enlightened leadership of all the rich countries is interested in. What can we do to help the poor countries? Right? This is -- you might call it Obama problem but it's a much older problem than that and of course Obama can sing, there is nothing that appeals to me, I am too old fashioned but it appeals as a skill illusion of his upheaval, we can raise the money but then what he does with him is really the question you are asking.

So how do we spend the money now that is where I let me put it this way so far by offering trade opportunity letting multinationals go more freely in to some of these countries and that is their own countries policies which have changed in this is regard I think on the whole East Asia manage to pretty well I do not think we need to do anything for India, China, even the parts of East Asia because they have grown rapidly and there is enough evidence that growth as I hope and recommend to my boss the Indian planning commission that has actually pulled people out of poverty both in India and China.

It is not the only thing but there are other things also at the policies which will along side this so that I think - I think is taken care of and the first thing which the World Bank should do is to stop lending to India, China, Brazil I mean all these countries I mean they are big enough to and if they do not grow and if they do not do good things it is their responsibility.


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