Microcredit in International Development http://www.wholeplanetfoundation.org/presidents/

Banker to the Poor, by Muhammad Yunus

This is the seminal work on microcredit and the Grameen Method by the winner of the 2006 Nobel Peace Prize. Highly recommended and a must for anyone interested in microcredit or international development.

What Went Wrong with Traditional Development Models

The White Man's Burden - Why the West's Efforts to Aid the Rest Have Done So Much Ill and So Little Good, by William Easterly

Easterly is an ex-World Bank economist and can clearly make a case for what went wrong and how to change our approach. He is considered on the opposite philosophical spectrum as statist Jeffery Sachs. This is a must-read.

The Elusive Quest for Growth - Economists' Adventures and Misadventures in the Tropics, by William Easterly

This is Easterly's first book and if I had to choose one over the other, I would choose The White Man's Burden. Nevertheless, this book has the best explanation I've read on why capital fundamentalism, the approach to economic development based on the work by economist and Nobel Prize winner Robert Solow, was such a dismal failure in the Third World. However, as Solow pointed out decades ago, the model was never intended for developing economies of the Third World. Easterly clearly shows that we have been wedded to this failed economic development philosophy for the last 50+ years.

The Trouble with Africa - Why Foreign Aid Isn't Working, by Robert Calderisi

Calderisi is another 30-year veteran of the World Bank and an expert on Africa. His assessment of Africa concurs with Easterly's, and is also as "politically incorrect," as it bucks the status quo that for 50 years has failed to do much except spend huge amounts of money. Recommended, but if you read "White Man's Burden," this is not a must-read.

The Bottom Billion - Why the Poorest Countries are Failing and What Can Be Done About It, by Paul Collier

Recommended by The Economist as a middle point between Sachs' statism and Easterly's approach. I concur, except the "middle point" is about 80% towards Easterly's position.

The Other Path - The Economic Answer to Terrorism, by Hernando de Soto

De Soto is the famed Peruvian economist most known for his work in showing the importance of rule of law, especially property rights, in the alleviation of poverty. In this 1989 book he shows how with a few but vital changes in Peruvian law, Peru was able to defeat the Maoist terrorist threat known as The Shining Path, simply by taking away its main weapon - chronic systemic property rights abuse on the rural peasant population. Read at least the preface written in 2002 and Chapter 1.

The Mystery of Capital - Why Capitalism Triumphs in the West and Fails Everywhere Else, by Hernando de Soto

The Economist magazine says of this book, "The most intelligent book yet written about the current challenge of establishment capitalism in the developing world." The challenge he refers to, of course, is that, apparently, four-fifths of the world's population has been left out of the program and how that problem can be remedied.

New Approaches to International Development

Cool It, by Bjorn Lomborg

Bjorn Lomborg is the Danish environmentalist statistician who is trying to bring some calm rational sense to environmental spending and the cost to achieve the desired climate changes. Ostensibly, this book is about global warming, but it is really about how we should spend our money to fix the solvable problems and the return on investment we can expect on the various endeavors.

His book is about half notes and references, and shows that much of the global warming scare is alarmist with the most likely scenarios not coming close to approaching the apocalyptic vision put forth by many. In fact, according to Lomborg and others, the most likely climate change is actually not that bad and certainly a lot better than if the planet were cooling. According to Lomborg analysis, the problems that will arise over the next 100 years are solvable, especially with a wealthier world better able to afford the fixes.

Copenhagen Consensus Website, by Bjorn Lomborg et al

Lomborg is the founder of the Copenhagen Consensus. I highly recommend this approach to solving world poverty. If you read nothing else, read the first two chapters of his book, Cool It, and then spend an hour on the Copenhagen Consensus website

The Fortune at the Bottom of the Pyramid-Eradicating Poverty Through Profits, by C.K. Prahalad

Big business is finally getting what "Banker to the Poor" Professor Yunus has been saying for 30 years. There is a lot of money at the bottom of the economic pyramid, even if it is only a few pennies from each, because there are 4 billion people "down there" and most have at least a few pennies to spend each day. This book advocates businesses serving the poor with the same products the rich have access to, although packaged, marketed and distributed much differently. This will enrich their lives in many ways, including creating the business of distributing these products to themselves. Treating the world's poor with dignity, as decent, hard working and valuable assets of the world instead of as a huge collective charity case is paramount to changing poverty consciousness. I highly recommend reading at least the first two chapters.

Creating a World Without Poverty - How Social Business Can Transform Our Lives, by Muhammad Yunus

This book is about Yunus' next "Big Idea", which is a new type of social business that will retain all profits to reinvest in social programs like health, education and infrastructure. The owners or original investors in the business will not receive dividends; however, they will be bought out by the enterprise from the ensuing profits. He proposes that the stock be sold on a new stock exchange developed for this kind of business. This is an intriguing idea for the wealthy to ponder what and how to invest their excess capital. This type of business would not increase wealth for its owners, but rather, attempt to transfer wealth to the poor by foregoing capitalist benefits.

Classic Economics that Supports Our Economic Development Model P

The Road to Serfdom, by F.A. Hayek

This book by the Nobel Prize winning economist deals with "the relation between individual liberty and government authority." He won the Medal of Freedom, as well.

Free to Choose, by Milton and Rose Friedman

If you read only one book on market economic theory, read this classic "inquiry into the relationship between freedom and economics."

Capitalism, Socialism and Democracy, by Joseph A. Schumpeter

First published in 1942, this rather academic treatise is still a must read, as it thoroughly establishes entrepreneurial capitalism as superior to socialism in any of its many guises.

Other Recommended Reading in Development

Poor People, by William T. Vollmann

A book about the poor by someone who is not only talking to the poor, but also listening to what they are saying. Vollmann is a wonderful writer, too.

Good Capitalism, Bad Capitalism - And the Economics of Growth and Prosperity, by William J. Baumol et al