The Bottom Billion

While global poverty has been falling quite rapidly for about 80 percent of the population (Collier, 2007), there is a group of 50 failing nation states whose problems are far beyond the formulaic approach that has been prescribed. The poorest 50 countries are failing at a rate that significantly hampers any future possibility of convergence. This is not because aid isn’t being distributed, but because of inherent problems in what are known as the 4 traps: 1) conflict trap; 2) natural resources trap; 3) Landlocked and surrounded by bad neighboring countries; and finally 4) bad governance in small countries (i.e. small markets). What is most pressing about these issues is that globalization, that is to say the international flow of capital, people and goods, is perpetuating these conditions into a vicious cycle. So while the rest of the world is blazing with benefits from globalization, these 50 countries (which can be found in Paul Collier’s recent book “The Bottom Billion) are falling further and further behind. This issue is of pressing importance to development firms and international institutions. It is vital to recognize that regardless of aid, these four traps will continue to drive the bottom 50 economies on a race to the bottom.