IELD LAW Essay Example | Topics and Well Written Essays - 1000 words

IELD LAW - Essay Example Acemoglu goes on to say that it is important to obtain the right balance between politics and economics, because one inadvertently affects the other (Acemoglu 68). This is where law comes in because laws and policies are mainly made by politicians; these are the same laws that have major effects on the economy and development of a country. As a result of this, it is really important that a right mix be found between politics (law) and economics; this will create new opportunities and freedoms which can be exploited in order to improve economies and by extension the living standards of people living in poor countries (Acemoglu 69). In his book, The End of Poverty: Economic Possibilities for Our Time, Sachs provides several reasons why some countries fail to achieve economic growth and therefore remain poor and underdeveloped. He goes on to list government failures as one of the reasons for failed economic growth in poor countries, and explains this by stating that governments must pro tect businesses and make it easy for people to do businesses (Sachs 59). This, he says, can be done by taking steps to assure people that it is perfectly safe and conducive to do businesses in a particular country (Sachs 60). My understanding of this is that law is heavily involved since policies have to be enacted and implemented in order for investors to inject their money into a particular economy. As a consequence, I can conclude that Sachs also agrees that law plays a vital role in economic development and should therefore be taken seriously because it is a tool for promoting and enhancing economic development. In his book the Bottom Billion: Why the Poorest Countries are Failing and what can be done about it, Collier (65) argues that â€Å"governance and bad policies help to shape economic performance, but that there is a proportionality in the effects of getting them right or wrong†. Collier is simply saying that bad governance and failure to enact the right economic p olicies can seriously dent a country’s hopes of developing. When governments cannot develop and implement policies that ensure a good environment for doing business, investors will stay away and the country will not be able to attract foreign direct investment (FDI). FDI plays a crucial role in the development of a country, and it is common knowledge that all developed nations attract a lot of FDI, and also go to great lengths to ensure that their countries are investor-friendly. In poor and underdeveloped countries, bad governance and lack of democracy leads to things dictatorships, chaos and instability. These are some of the arch-enemies of development; they greatly inhibit the ability of a country to attract investment, aid and good diplomatic relations and therefore limit its potential for development. In Easterly’s The White Man’s Burden: Why the West’s Efforts to aid the rest have done so much ill and so little good (Easterly 5), Easterly identifie s two groups that have influential roles to play when it comes to aid and the distribution of aid. He names these groups as planners and searchers, and says that planners are those who insist on a continuation of giving out aid and grants that often do not reach their intended targets, while searchers advocate