[Pen-l] Can You Believe it? David Dollar Tapped to Instruct China

[michael perelman <michael@xxxxxxxxxxxxxxxxx>]

By BOB DAVIS

WASHINGTON -- The U.S. Treasury chose World Bank economist David Dollar 
as economic emissary to China despite sharp criticism of his economic 
research.

Mr. Dollar co-authored several influential studies that argued for the 
effectiveness of aid and the importance of tariff cuts in liberalizing 
economies and reducing poverty.

But in 2006, a detailed review of World Bank research led by Princeton 
economist Angus Deaton called the aid paper "unconvincing" because of 
methodological problems. The paper's results "provide only the weakest 
of evidence for their central contention, that aid is effective when 
policies are sound," the review said. The reviewers said the work on 
trade and growth raised "serious questions about whether the review is 
really supported by the evidence."

The Bank defended Mr. Dollar's work on trade and said that Mr. Dollar's 
work "stimulated a useful and ongoing debate."

Mr. Dollar is now the World Bank's country director for China. He will 
remain in Beijing for his Treasury job. Mr. Dollar didn't respond for 
comment.

Treasury Secretary Timothy Geithner called Mr. Dollar and David 
Loevinger, who was appointed as the Washington-based senior coordinator 
for China affairs, "uniquely qualified to serve in these roles because 
of their deep expertise and extended experience" in U.S.-China economic 
issues.

"David Dollar has been involved in some of the most important debates in 
economic policy for developing countries and the debates have been 
lively and important. And those at the center of this debate and whose 
views are taken seriously should expect to be criticized," a senior 
Treasury official said.

Write to Bob Davis at bob.davis@xxxxxxx

http://online.wsj.com/article/SB124389754251074257.html#mod=testMod

--
Michael Perelman
Economics Department
California State University
Chico, CA
95929

530 898 5321
fax 530 898 5901
http://michaelperelman.wordpress.com

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