Jeffrey D. Sachs

Jeffrey D. Sachs is an American economist, who advised countries throughout the world in economic reform and developed initiatives intended to eradicate poverty on a global scale.

Sachs studied economics at Harvard University (B.A., 1976; M.A., 1978; Ph.D., 1980) and remained there as an assistant professor (1980–82), associate professor (1982–83), and professor (1983–2002). In 2002 he joined the faculty at Columbia University, New York City, where he became a professor of health policy and management and served as director of its Earth Institute.

(Read Milton Friedman’s Britannica entry on money.)

Sachs established a reputation as an expert on international finance and inflation and was an adviser to the International Monetary Fund, the World Bank, and the Organisation for Economic Co-operation and Development, among others. He also advised governments in Latin America (notably Bolivia), eastern Europe, and Asia on how to bring down excessive inflation rates, usually with great success. Sachs published Russia and the Market Economy (1995), a study of the post-Cold War Russian economy, and helped edit numerous influential economic volumes in the 1990s, including The Transition in Eastern Europe (1994) and The Rule of Law and Economic Reform in Russia (1997).

From 2002 to 2006 Sachs served as special adviser to the United Nations (UN) Secretary-General Kofi Annan on the UN Millennium Project, which released its official report on Jan. 17, 2005. The report marked the start of a year of global initiatives to make the project’s Millennium Development Goals (MDGs)—to reduce poverty, hunger, disease, illiteracy, environmental degradation, and discrimination against women—a reality.

In The End of Poverty: Economic Possibilities for Our Time (2005), Sachs created a blueprint for the eradication of extreme global poverty by 2025. He believed that Western countries, particularly the United States, should honour their pledges to give 0.7 percent of gross national product to global development programs. His ambitious solution challenged traditional top-down development policies that required aid to less-developed countries to be donated and planned by Western governments and nongovernmental organizations. Instead, Sachs advocated a bottom-up approach, with recipient countries providing donors with their investment targets. As one of the most high-profile economists of his day, Sachs received his share of criticism, mainly from those wary of a globalized economy. The criticism was most severe in regard to the shock treatment he prescribed in 1991 for Russia, which failed to revive the economy and allowed an oligarchy that often acted outside the law to take control of much of Russia’s newly privatized resources.