Give any willing developed country citizen a plane ticket to Sub-Saharan Africa, $1500 in the local currency, and the inability to leave Sub-Saharan Africa for six months. I would increase the payment to $4000 for anyone willing to stay a year. If someone comes back before their term is up, they would have to pay the whole sum plus interest back. Notice the plan does not provide a plane ticket back to the citizen's home country.
At worst, the citizen spends something on six months worth of tourist activities. This should satisfy the Keynesians who believe multiplier effects cause economic growth.
At best, entrepreneurs use the $1500 and connections in the developing world to start business activities, increase African productivity, and really create growth.
The plan uses adverse selection to get different people involved in development. I suspect the people who join the program will not be the best of society. I suspect that most willing people would be looking to make a quick dollar and get a free vacation. I also suspect some risk-loving entrepreneurs would sign up quickly.
Considering the failures of everyone else involved in African development, these types of people deserve a chance. I am confident my plan would do more for Africa than anything the current establishment is doing.
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2 comments:
Why couldn't you try this? $1500 might be a bit steep for Norton, but this is an interesting economic development idea. What if someone had the balls to give people some money (making them keep track of what they did with it) and compare the economic impacts of the random people and USAID CRSPS? Or better still give it to missionaries. Even more interesting would be to give it to missionaries from a number of different denominations and religions and compare the differences. The write up of that experiment wouldn't be politically correct, but it would be interesting.
Make sure I Email you my plan.
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