This is the third book by Paul Collier that I have read (see my review of Wars, Guns & Votes here.) In some ways it is his least satisfactory. As always he clearly elucidates what’s the problem – in the resource rich countries of the bottom billion a once-in-a-lifetime opportunity is being squandered. In the middle of a huge commodities boom, and corresponding surge in prices, the benefits seem to be accruing to everyone apart from the inhabitants of the countries in which these resources sit.
I’m sure many readers can list the main culprits without too much effort – profit driven multinationals on the search for the best deal and governments cursed by incompetence, ignorance, corruption or all three – and those factors are not restricted to the developing world. Although China gets selected out for its pursuit of its own national self interest ahead of those in its ‘client’ countries, the sad truth is most countries, including my own, are complicit to come extent. Collier dissects the whole chain of decision making, from agreements on exploitation and at what rate to exploit to investing for the future. He also address the global asset of fish and liability of carbon dioxide production.
Although the author is strong on the problem, his solutions, though often elegant, are weaker than on previous occasions. The sad truth is that much of what needs done requires global agreement. His suggestion that excessive profits on global fish stock go to the United Nations, who then regulate quantities, is conceptually nice but seems rather unlikely. His arguments for a global carbon tax in preference to cap & trade are almost irrefutable. Alas, international agreement seems to be unlikely – the free rider problem is too likely to provoke cheating. His goal of an informed citizenry is also admirable, but at best is a long term solution, at worse an utopian ideal.
So what is to be done. Perhaps the most interesting part was how following the publication of his book The Bottom Billion one of his suggestions has been taken up. The Extractive Industries Transparency Initiative (EITI) gives standards for revenue disclosures. Casting light on the dark rooms in which much of the decision making takes place is an essential part of the process and this is a positive step in the right direction. The events of this year in the Arab Spring show what can happen when corruption becomes excessive and the public decide to act. Whether we will get more outcomes like Tunisia & Egypt rather than Libya, Syria or Bahrain is not clear. But there must be change to ensure that the citizens of the bottom billion have a chance as the current systems are not delivering. The Plundered Planet may be a small step in that process.