foreign aid

No Discernible Rise in Wellbeing? The Data Suggests Otherwise…

Economist Jeffrey Sachs of Columbia University recently made this claim (emphasis mine):

“We’re so rich in our total production and in our capacities to do things that we could solve absolutely fundamental challenges, such as ending extreme poverty or addressing climate change or preserving biodiversity without much effort … it cannot be the most important issue in the world whether the U.S. grows at another 3% or 3.5% or 2.9% a year, when over the last 65 years there’s been no discernible rise in wellbeing

That is the theme of his new book, The Origins of Happiness.

By “we” Sachs appears to mean the U.S. and other rich countries and calls for their governments to engage in wealth transfers to poor countries and a plethora of environmental projects. What he does not seem to realize is that humanity is already making swift progress—through the free actions of billions of individuals—toward ending poverty and better preserving the environment.

Time for Washington to Just Shut Up

The military regime in Cairo continues to kill supporters of ousted president Mohamed Morsi with Washington’s financial support. The Obama administration is turning hypocrisy into an art form. 

Washington labors with the delusion that it controls the world. The administration insists that it must preserve its influence by giving more money to the generals in Cairo. Yet when has the United States ever exercised influence in Egypt?

Egypt’s Vanishing Currency Black Markets

Despite escalating tensions between Egypt’s new military-backed government and supporters of ousted president Mohammed Morsi, there is at least one positive development coming out of the Land of the Nile. Yes, at long last, some semblance of stability appears to be returning to Egypt’s economy.

After the ouster of President Hosni Mubarak in 2011, the Egyptian economy took a turn for the worse. In particular, the Egyptian pound began to slide shortly after Morsi and his Muslim Brotherhood-backed government took power, sparking the development of a black market for foreign currency. The accompanying chart tells the tale: the official and black-market EGP/USD exchange rates began to diverge sharply in late 2012. In recent weeks, however, they have converged.

Recent currency auctions by the central bank, coupled with improved expectations about the country’s economic prospects, have begun to buoy the struggling pound. Indeed, the black-market exchange rate is now 7.13 EGP/USD, very close to the official rate of 7.00 EGP/USD. So, with Morsi, the black market appeared, and with the military’s re-entry, the black market has all but vanished.

The Egyptian stock market is echoing the confident sentiments displayed by the foreign exchange markets (see the accompanying chart). But, it remains to be seen if this newfound confidence in the Egyptian economy will be sustained.

Kick Egypt off the Foreign Aid Dole

The United States has spent decades attempting to micromanage the Middle East. The result is a long series of disastrous failures. Egypt is the latest example.

Almost everyone in Egypt now blames America—despite almost $75 billion in financial assistance to Cairo over the years. Instead of backing away, President Barack Obama is digging America in deeper. The administration is ignoring U.S. law by continuing financial aid.

Karzai’s Latest Outrageous Comment

Yesterday, Afghan President Hamid Karzai alleged that the United States and the Taliban are “working in concert to convince Afghans that violence will worsen if most foreign troops leave.” His accusation exposes a strange irony. Karzai not only supports U.S. forces in Afghanistan after 2014, but also disparages that presence to evade his own failings. 

Is Egypt Molded in Pakistan’s Image?

Last year, in a piece for AOL News titled “Will Egypt Follow Pakistan’s Troubled Path?” I warned that U.S. policymakers must be careful of whatever government follows ousted Egyptian strongman Hosni Mubarak by not repeating the mistake of giving lavish material support to a distasteful regime, as America did with Pakistan’s General-President, Pervez Musharraf.

DoD Now Responsible for Guns and Butter

Of the many enduring tenets shaping America’s state-building project in Afghanistan, the belief that expanded economic opportunities can promote long-term stability has long been received as gospel. Past 2014, that principle will continue to animate U.S.strategy in Afghanistan.

When Obama and Romney Talk Foreign Policy, Who Wins?

The presidential campaign will focus on foreign policy for a few hours on Tuesday when President Obama addresses the United Nations General Assembly in New York City while his Republican challenger Mitt Romney will address the Clinton Global Initiative just a few miles away. Each will try to wring some political advantage from speeches that are generally directed at foreign audiences.

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