by W D Adkins

Created on: April 12, 2008

Few people are unaware that much of the Third World remains mired in poverty and misery. Zimbabwe, once considered to be at the forefront of economic growth in Africa, is struggling with an economic collapse and escalating poverty. Over one billion people worldwide subsist on less than $1 per day. In the Darfur region of Africa, violence and starvation are killing hundreds of thousands.

Paradoxically, developed nations and private agencies have poured hundreds of billions in aid over decades, attempting to bring about change in these countriesand have failed. In many countries conditions are worse than they were 10, 20, or 30 years ago. Is the desire to improve the lives of people in poorer countries a well-intentioned but futile one? If not, what concrete steps can be taken to achieve real change?

Any engineer will tell you that if you have a system that doesn't work, a good way to start finding solutions is to look at similar systems that do work. And, in fact, there are examples of aid that has, and is, working-of Third World countries where solid gains are being made in the lives and economic well-being of ordinary people. Two such countries are Costa Rica and Bangladesh. Studying programs and policies in these two countries and comparing them to efforts elsewhere can provide important clues to taking effective steps to bring about positive changes.

TWO CASE STUDIES

Costa Rica
A few decades ago, Costa Rica, while relatively well off compared to places like war-torn Nicaragua, was mostly still sunk in poverty. Today, it is marked by strong economic growth, a rapidly expanding manufacturing and business sector, rising standards of education and income, and a strong tourist industry. Don't put on your rose-colored glasses just yetthe country still has many problems. But they are clearly on the right track.

Why? The government is stable, for one thing. In addition, government policies are not repressive. On the contrary, it is committed to supporting improved education and fostering opportunities for business. Just this year, a new initiative was launched to expand public education, particularly in English. Tax breaks and other incentives are used to attract foreign firms and support local start-ups. One crucial point is that these policies are not random initiatives that "sound like a good idea." Instead, they are elements of carefully reasoned planning. The push for education in English is directly aimed at producing workers who will be attractive to US firms and

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