The Economist's Tale: A Consultant Encounters Hunger and the World Bank

by Peter Griffiths and Peter Griffiths

Book Overview

What really happens when the World Bank imposes its policies on a country? This is an insider's view of one aid-made crisis. Peter Griffiths was at the interface between government and the Bank. In... This description may be from another edition of this product.

• Format: Hardcover
• Language: English
• ISBN: 1842771841
• ISBN13: 9781842771846
• Release Date: May 2003
• Publisher: Zed Books
• Length: 272 Pages
• Weight: 0.85 lbs.
• Dimensions: 1.0" x 5.2" x 8.8"

Customer Reviews

A real-world mystery story

The Economist's Tale is a slightly-fictionalized account of Griffiths' short-term consulting gig in Sierra Leone. The events in the story take place in 1986, so the information here isn't directly applicable to the present situation, but it will be of interest to (and accessible to) both economists and laymen all the same. This is not a book about economic theory. Nor is it about the World Bank, per se. Rather, it's about the way people respond to incentives, and how the unintended consequences of their actions can combine to create a disaster. The story reads almost like a mystery, told as it is through diary entries that reveal the puzzle as Griffiths himself pieced it together. It's a bit self-congratulatory and defensive, but in a way that I found easy to forgive as I got caught up in the adventure. I'd recommend it to anyone.

A must-read

The Economist's Tale is a clunkily-written but still gripping story of corruption, dogmatism and a barely-averted famine in Sierra Leone in 1986. The author, working on food policy for the World Bank and seconded to the Sierra Leonian government, discovers that: - The country lives mainly on rice (the backup crop, cassava, has all been eaten over the last two years). - Nobody knows whether or not enough rice is being grown to feed the country (there are two different scientific studies of production that differ by 80%). Some rice is imported, but anything from 20-100% of it is smuggled out of the country again, and nobody knows how much. - The currency, the leone, was held at an overvalued rate to the dollar. Imported rice was half the price of home-grown rice and the monopoly exporter was so inefficient that cocoa and coffee growers saw about 20% of the price they might have seen on the open market. So no-one's growing anything. - Now the leone's been floated at the World Bank's insistence, it's collapsed in value by a factor of 10. But production is too low for native producers to take advantage: imports will go up in price long before the exchange comes into the country to buy them. Then he works out by interviews and legwork that, in fact, the country depends on the imported rice to avoid a famine. And then the government signs a deal with the World Bank, his employer, to get an emergency loan of $5 million, in return for which they will stop all rice subsidies and slash their rice imports by almost 90%. And the private importers who might import enough rice to make up the difference won't, because they can't afford to sell it below the market rate and, being all Lebanese, they'd rather not get involved than risk starting a race riot by being seen as price-gouging. As the only person who knows all the facts, he has to persuade the government to break its deal with the World Bank without starting a turf war, making the decision take so long that a famine happens anyway, or destroying his own future career. It's an excellent book. The lessons: - Economics is all about incentives. No matter how ideal a market solution might be in theory, if the incentives aren't lined up right the market won't work. - A currency whose liquidity is so small that its value is changed by importing a single expensive car probably shouldn't be floating. - Corruption is everywhere, and corruption kills. The state electricity company is unreliable, so everyone uses personal, much more inefficient generators, so there isn't enough oil. - Dogmatism also kills. You can't un-distort a market overnight. There's a lovely moment when a British Conservative starts explaining to the Americans how privatisation isn't really that great an idea. Recommended to anyone who's interested in development economics, africa, politics, food, globalization, the World Bank, racism, colonialism, and any of the other ways that people end up treating people the way they do. And it has a hap

Changed my understanding of third world poverty

This is an absolutely riveting book. I heard of it through a brief mention at Brad DeLong's website, and ordered it because of the comments by the previous reviewers. I can only agree with their comments -- this book should be required reading for anyone interested in globalization, poverty, and the real world constraints that often prevent idealistic anti-poverty efforts from succeeding. I can't recommend it highly enough.

Insighful and sad account

A good book, known by few, written by an even less well known author, to which I am grateful. As (probably) most of the other readers, I learned about this book from a (very positive) book review published on the "Economist". This book tells a first person account of how bad economics, corruption, or "simple" incompetence almost caused a famine of immane proportion in Sierra Leone, in the 80s, with the important "contribution" of the World Bank. The author (at the time a consultant for the World Bank) tells us how he managed to avert the crisis, a deed that many did not appreciate, and that caused him professional troubles later on. It is a mistery how this book can be so little known. It is well written, and above all quite deep. Mr Griffith clearly shows to be a skilled and informed economist. I found particularly compelling the pages that discuss how economic "data" should be often taken with a grain of salt, or two. Especially in poor countries, "data" are sometimes nothing else that guesses (sometimes educated, sometimes not), and this may lead to enormous policy mistakes. Unfortunately, people's lives may put at stake by such mistakes. One point that Mr Griffith powerfully makes is that economic policy is not simply boring material to be debated by politicians and discussed in the ivory towers of academia, but it is something REAL that has sometimes the potential of deciding about the fate of millions of people. Unfortunately, policy is the hands of men, and this book amply shows once more how little trust we should have in men. Overall, this is quite a compelling reading, much more than the insipid "Globalization and its discontent" by Stiglitz, a world-class economist that has produced a little polemic book that could have been memorable, and instead has disappointed everyone, except uncritical anti-globalization protesters. If you are looking for a deeper account of the potential evil of economic policy and the World Bank, this book is highly recommended. P.S. By the way, contrary to what some extremist may believe, the World Bank is not only made by evil individuals who only care about their career. The World Bank is a very complex institution, and I can assure you that committed, serious, and conscientious individuals abound in there. Whether they have a major role in how the World Bank actually works in Developing Countries is something I still have to find out...

Andybody Who Cares Should Read This

An excellent, excellent book in several ways. Anybody who cares - about society - conservative, moderate, or liberal should read this. All economists, political scientists, politicians, and students of these fields should read this book carefully. The Economist's Tale is a true morality play. It looks at the way economics plays out in real-life using the framework of food policy in Sierra Leone. The author is not against market forces - but as economic theory has recognized in the last few decades - markets work (or don't work) with many attendant frictions and imperfections. Unfortunately, in the tale told within this book, people die because of these frictions. The Economist's Tale is also quite interesting and riveting as a read. It is also a quick read. One learns much about Sierra Leone among other non-economic subjects. It appears nobody else has rated this book yet - which tends to indicate that few people have read it - a sad state of affairs.