Category: News and Events

In today’s Grand Rapids Press I respond to a previous piece by religion columnist Charley Honey, “Religious voices have a place in the state’s budget cut discussions.”

I Hope I Die Before I Get OldI argue in “Christ’s kingdom is bigger than the federal government” that there is a basic confusion from many religious voices in the budget debate about the primary role of the federal government, and make the point that Abraham Kuyper’s “famous quotation attributes the claims of lordship over ‘every square inch’ of the world to Christ, not to the government. To miss this critical distinction is to undermine the very basis of Kuyper’s comprehensive and variegated social thought. For Kuyper, there are important differences among the responsibilities of the government, the church, the family, schools and a host of other social realities.”

I also refer to last month’s conversation with Gideon Strauss of the Center for Public Justice on “A Call for Intergenerational Justice” (audio here). Be sure to check out the event later this month where I’ll be a panelist to discuss these issues along with Strauss, Jennifer Marshall, Ron Sider, Jonathan Merritt, and Ryan Streeter, “I Hope I Die Before I Get Old,” hosted by the American Enterprise Institute (the event will be streamed online for those fortunate enough not to live in or near the Beltway).

Richard Reinsch II has an excellent condensed summary of his book Whittaker Chambers: The Spirit of a Counterrevolutionary over at the Heritage Foundation. I really cannot praise Reinsch’s account enough. It is perhaps the best book I read in 2010.

I reviewed the book on the PowerBlog and in Religion & Liberty. We also featured Whittaker Chambers as the “In The Liberal Tradition” figure in the last issue of Religion & Liberty. In the write up, we included the citation to the 1984 Presidential Medal of Freedom posthumously awarded to Chambers by President Ronald Reagan. The citation reads:

At a critical moment in our Nation’s history, Whittaker Chambers stood alone against the brooding terrors of our age. Consummate intellectual, writer of moving majestic prose, and witness to the truth, he became the focus of a momentous controversy in American history that symbolized our century’s epic struggle between freedom and totalitarianism, a controversy in which the solitary figure of Whittaker Chambers personified the mystery of human redemption in the face of evil and suffering. As long as humanity speaks of virtue and dreams of freedom, the life and writings of Whittaker Chambers will ennoble and inspire. The words of Arthur Koestler are his epitaph: ‘The witness is gone; the testimony will stand.’

I encourage you to read Reinch’s summary. It is a fitting and informative tribute to one of the great minds of the 20th century.

To provide water for people, communities have usually turned to  two different options: public or private utilities. However, if Bolivian President Evo Morales, leader of the Movement Towards Socialism Party, gets his way, the United Nations will pass a resolution blocking the sale of public water utilities to private companies. If adopted, this resolution will cause problems for many nations, especially the undeveloped countries receiving support from the U.N. that will be forced to abide by one option—public supply of water—instead of being permitted to consider privatization which may be more efficient and cost effective.  The makes the global water crisis much worse.

It will not help any country to limit its options when searching for the most efficient and cost effective solutions for providing a clean, sanitary, and abundant source of water.

Theories and examples in support and against both private and public water utility systems are numerous. A study conducted by the University of Michigan showed that water prices, in general, are too low. The study explains that direct and indirect subsidies, in both developed and undeveloped countries, have caused low prices, resulting in water waste. Furthermore, the study argues that if the subsidies are removed, the price of water will increase and provide an incentive for those utilizing water to not waste it. This, in turn,  will result in the investments that are needed to develop more efficient technologies. If subsidies are removed, then a lighter burden is placed on public funds.

Lending support to the findings of the University of Michigan study, a survey conducted in 2004 by Global Water Intelligence found that the under-pricing of water is widespread. The study analyzed the prices charged by water utilities in 132 major cities worldwide and found that 39 percent of water utilities had average tariffs that are set too low to cover basic operation and maintenance costs. Some 30 percent had tariffs that are set below the level required to make any contribution toward the recovery of capital costs.

Changing the price system may be a solution. Some argue for a metering that charges water users based on consumption. However, while subsidies are proving to be largely inefficient the question must be asked: Can those in undeveloped countries, who are already living in a state of grave poverty, afford increased prices on water?

The International Development Association and the World Bank are quick to point out the success of private water utilities. Examples can be found in Rwanda and Mozambique where the private sector helped provide, improve, and/or expand the water supply. The U.N. has acknowledged five reasons to pursue private sector partnerships.

A private sector supply of water can be more efficient and cost effective. According to the World Bank, it is estimated that in the United States each dollar of public funds raised for utilities has an opportunity cost of $1.30 of private consumption, and the average opportunity cost for each dollar of tax revenue raised is $1.17 for 38 African countries.

Critics of the privatization of water argue that while it is more efficient and cheaper, the private systems fall short of social equity in supplying water and charge higher prices. While there have been unsuccessful stories of privatization, the aforementioned examples in Rwanda and Mozambique are a just a few of the many success stories, and, as The Economist notes, when private utilities charge higher prices, that often corresponds to higher rehabilitation investments, better water quality, and better service.

Privatization will also promote the decentralization of  government, and in the case of many developing nations, remove the control of water out of the hands of corrupt bureaucrats. A large overarching centralized government is not needed. Instead, the principle of subsidiarity should be applied.

Private entities are able to supply an efficient and cost effective supply of water. Privatization is an effective solution, and its ability to meet the needs of consumers has improved. As a result, water supply can follow the principle of subsidiarity by utilizing other alternatives to supply water instead of through a system brought forth by a centralized government.

It is important to note that just as public utilities are open to corruption, inefficiencies, and poor management, so is privatization. Privatization can fall subject to a corrupt government. The example of Detroit is instructive here. For example, when a government decides to contract a private utility to supply water, instead of having an open bidding process, the government accepts no outside bids and picks a company that is owed a political favor. If privatization is to succeed government must take the appropriate actions to allow it to succeed and also nurture an environment that is open to decentralization, promoting business without unnecessary government interference.

Bill Whittle at Declaration Entertainment uses a recent Iowahawk post, Feed Your Family on $10 Billion a Day, to figure out how an “Eat the Rich” economics program would work as a solution to our fiscal ills.

Thrift almost seems like a lost virtue among much of our governing class. It is also true of the general population. We don’t have to just look at our staggering public debt, but consumer credit card debt tells the story too. In a past post on the virtue of thrift, Jordan Ballor reminds us that “thrift is one of the things that separates civilized capitalism from savage consumerism.”

When I worked for U.S. Congressman Gene Taylor in Mississippi, we had a lot of second-hand office equipment. The boss was always serious about saving tax dollars. I know there are still representatives out there that take thrift seriously. However, we should also let the illustration provided by Amity Shlaes on Calvin Coolidge over at National Review sink in, especially given some of the lavish entertainment we hear about in Washington:

For Coolidge, no savings was too small to overlook. Recently William Jenney, the archivist for the state of Vermont at the Coolidge homestead, pulled out for me an old looseleaf notebook. It contained the White House housekeeper’s journal of outlays for White House entertainment. The White House, even then, received tens of thousands of visitors a year; the Coolidges hosted Col. Charles Lindbergh and Ignacy Padereweski, the pianist and politician. There were many days when Coolidge shook 2,000 hands. But he also kept an eye on the budget. For 1926, the housekeeper itemized each purchase for each event; the total was $11,667.10. For 1927 she managed to get the amount down to $9,116.39. The president reviewed this and wrote her a note: “To Miss Riley, very fine improvement.”

Shlaes, who has a forthcoming book on Calvin Coolidge coming out soon, was interviewed in Religion & Liberty’s 2009 fall issue. She discusses her book The Forgotten Man and the Great Depression in the interview.

I have also touched on Coolidge on the PowerBlog. In a post titled “Keep Cool with Coolidge,” I linked to a great recording on Coolidge talking about the cost of government spending. Have a listen:

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Writing in the Wall Street Journal today, William McGurn looks at some of the root causes of the catastrophic decline of the city of Detroit. Census information released last week showed the city — once the fifth largest in America and a place which had such awe-inspiring industrial might that President Roosevelt labeled it the Arsenal of Democracy — had lost more than 25 percent of its population in the last decade. Detroit’s population fell to 713,777 in 2010, the lowest since 1910 (two years after Henry Ford’s Model T was introduced). The city, vasts stretches of which are depopulated, is now smaller than Austin, Tex., Charlotte, N.C., and Jacksonville, Fla.

What happened to Detroit?

As McGurn points out, much of Detroit’s problems are of its own making. There was no tsunami or hurricane to blame. He quotes Rev. Robert A. Sirico, president of the Acton Institute, on the cultural factors that have contributed to the city’s demise:

Most Americans did not need to be told that Detroit is in a bad way, and has been for some time. Americans know all about white flight, greedy unions and arrogant auto executives. The recent census numbers, however, put an exclamation mark on a cold fact: A once-great American city today repels people of talent and ambition.

“Detroit is a classic example of how a culture that was legendary for enterprise and innovation was slowly eroded by toxic politicization from the 1960s on,” says the Rev. Robert A. Sirico, president of the Michigan-based Acton Institute. “It’s been class warfare on steroids, and the inevitable result is that so many Detroiters who had the means—black and white—have fled the city.”

Another way of putting it is this: Unlike New Orleans and Japan, the ruin we see in Detroit is entirely man-made.

Read “A Requiem for Detroit” in the Wall Street Journal.

Over at CNN, Bob Greene has an opinion piece titled “4-star general, 5-star grace.” In it, he retells the story of how White House aide Valerie Jarret confused Four-star Army General Peter Chiarelli for a waiter. Greene said:

Graciousness can pay priceless dividends. And it doesn’t cost a thing. You may have heard the story about what happened between White House adviser Valerie Jarrett and Four-star Army Gen. Peter Chiarelli at a recent Washington dinner. As reported by the website Daily Caller, Jarrett, a longtime Chicago friend of President Obama, was seated at the dinner when a general — later identified as Chiarelli, the No. 2-ranking general in the U.S. Army hierarchy, who was also a guest at the gathering — walked behind her. Chiarelli was in full dress uniform. Jarrett, apparently only seeing Chiarelli’s striped uniform pants, thought that he was a waiter. She asked him to get her a glass of wine. She was said to be mortified as soon as she realized her mistake, and who wouldn’t be? But the instructive part of this tale is what Chiarelli did next. Rather than take offense, or try to make Jarrett feel small for her blunder, the general, in good humor, went and poured her a glass of wine. It was evident that he wanted to defuse the awkward moment, and to let Jarrett know that she should not feel embarrassed.

I suppose the story in and of itself says something about a town that makes a big deal out of the general’s actions. General Chiarelli may not have even felt as if his character was out of the ordinary. I wonder if I would be wrong in saying that these are the type of social graces that were once very common and are still common in many homes and communities. I also once heard a friend remark that “in New York City it’s about how much money you make, Los Angeles is about what you look like, and Washington D.C. is all about who you know.” You get the point.

When I was in college, sometimes I would notice the chancellor walking around campus with a bag picking up trash. I remember cynically wondering if he was doing it so everybody could see him. Maybe I just thought that because I found myself disagreeing with him a lot. And then one day I had to get up early on the weekend, and sure enough, there was the chancellor picking up trash before the sun was even up. It was the worst possible time to try and impress anybody with his actions.

I reviewed Joker One on the PowerBlog a couple of years ago. It is an excellent book and it is essentially about servant leadership and the greater love principle (John 15:13). I commented at the time, which is still true, that the book taught me more about leadership than all my seminary classes on leadership.

The general’s actions serve as a good conversation starter for leading with humility. It also serves as a nice contrast to Senator Barbara Boxer’s attitude on Capital Hill in 2009:

There is a great 18th century hymn “Guide me O Thou Great Jehovah” by William Williams. It is, of course, well known today, but the last verse is missing from most modern hymnals. I don’t really know why it is often omitted because it seems most appropriate today. Especially during the Lenten season, it is a powerful reminder of the type of leaders Christians should be. The last verse speaks to the very self-centered and vain world we inhabit:

Musing on my habitation,
Musing on my heav’nly home,
Fills my soul with holy longings:
Come, my Jesus, quickly come;
Vanity is all I see;
Lord, I long to be with Thee!
Lord, I long to be with Thee!

We have all heard the phrase, “water is essential for life,” and we all understand its importance. Many of us are blessed to have instant access to clean, sanitary water. However, World Water Day, which recently took place on March 22, sought to raise awareness of the current water crisis.

According to the World Health Organization and Water for Life, in 2005 more than 1 billion people were faced with little choice but to resort to using potentially harmful sources of water. About 3,900 children die each day due to harmful water.

Furthermore, the water crisis isn’t going to be solved overnight especially when one takes into account the lack of fresh water for a growing population. According to a study conducted by the University of Michigan, 97.5 percent of all water is salt water and only 2.5 percent is fresh water. Of that 2.5 percent, nearly 70 percent is frozen in icecaps in Antarctica and Greenland, and less than 1 percent of the world’s fresh water is accessible for direct human use—this includes water found in lakes, rivers, reservoirs, and underground services shallow enough to be tapped.

In addition, the demand to feed an ever increasing population can be seen in the use of water by the agriculture industry. According to the same study by the University of Michigan, agriculture is responsible for 87 percent of the total amount of water used globally. Farming in Asia utilizes 86 percent of its total water use, in North and Central America the number is much lower at 49 percent, and Europe’s agriculture industry consumes 38 percent of its total water use. However, before the agriculture industry is criticized for its high intake of water, it must be remembered that water is a necessity for growing food and raising livestock which are essential—just like water—to sustaining life.

Besides the daunting numbers of those suffering from lack of water, recent events have caused many to demand action in solving the global water crisis. Bolivian President Evo Morales, Movement Towards Socialism Party, emerged as the leader in a movement demanding a resolution from the United Nations to block the sale of public services to private companies, and in 2008, Ecuador’s constitution gave rights to nature. These actions have raised cause for concern and debate from many who are apprehensive of an ever expanding government and U.N.

It is without question that action must be taken to alleviate the problems. The University of Michigan study also predicts that by 2025 we may be consuming 70 percent of the world’s total accessible renewable water supply (we currently utilize 30 percent). A big picture approach is needed to solving the global water crisis as well as an understanding of the role government must play without creating an inefficient unproductive solution.

Over the next few weeks I will be presenting a faith-based analysis to the global water crisis while also bringing to light different economic and social related issues.

Blog author: cromens
Thursday, March 24, 2011
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Three days ago I arrived in Nairobi, Kenya, for Acton’s conference at Strathmore University. Driving about the city the last few days, I have been amazed by the number of small-medium businesses located in the kiosks along streets. These simple, tin/wood structures are bustling with enterprising and entrepreneurial souls working hard to better their lives and those of others.

In a Nairobi bread kiosk


With such diligent and enthusiastic people, why is Kenya such a poor country?

In discussions with students and staff at Strathmore, I have heard many stories outlining the significant problems with law, property, and inter-tribal (low non-kin) trust. You wonder:

• How can a country thrive when officials do not equally distribute justice? Where bribes and connections determine legal decisions?
• How can an entrepreneur access the necessary start-up capital for his business when he is considered a squatter in the home he built because he cannot access a title to the land?
• How can local or foreign investors expand their businesses when they are not members of a certain tribe and so are not well trusted?

These are the struggles, not only of Kenya, but of the developing world. These are the problems that need to be addressed in order to have a strong market economy that has the power to reduce poverty world-wide. These are some of the many questions asked and discussed at today’s conference titled Economic and Cultural Transformation: Breaking the Shackles of Poverty.

More than 170 people attended this conference, co-sponsored by Strathmore’s Governance Centre. We heard the speakers discuss both the theory and the practice of moving out of poverty through enterprise. By building up the institutions of rule of law, private property, and a culture of trust, the creative power of individuals is able to be unleashed and drive innovation and business. A new mindset is needed – not to rely on big government or foreign aid, but upon the many entrepreneurs who create wealth and help countries rise out of poverty.

Also see the article “Involve People in the Poverty Fight” by Antoinette Kankindi and Tom Odhiambo of the Strathmore Centre which appeared in yesterday’s Nairobi Star.

Update (3/25): The Standard reports on the conference. Read “Top economists urge African States to support enterprises.”

In his recent lecture “Christian Poverty in the Age of Prosperity,” Rev. Robert Sirico reminded us that “We should not minimize the demands of the scripture but we should embrace them.” The quote was in context of caring for the vulnerable among us. He also talked about the need to be wholly devoted to the Lord despite the distractions of technology and prosperity in our midst.

At the same time, Rev. Sirico also admonished religious figures who offered superficial exegetical statements condemning all wealth. A great example being a topic I previously covered on the PowerBlog, “The What Would Jesus Cut?” campaign. In my devotional reading this week, I came across a very appropriate quote by 17th century English Puritan Jeremiah Burroughs. The words compliment the pastoral tone Rev. Sirico set during the lecture, and reminds us just how woefully inadequate superficial pronouncements are when it comes to the gospel call. Burroughs words are below:

Suppose a man had great wealth only a few years ago, and now it is all gone-I would only ask this man, When you had your wealth, in what did you reckon the good of that wealth to consist? A carnal heart would say, Anybody might know that: it brought me in so much a year, and I could have the best fare, and be a man of repute in the place where I live, and men regarded what I said; I might be clothed as I would, and lay up portions for my children: the good of my wealth consisted in this. Now such a man never came into the school of Christ to know in what the good of an estate consisted, so no marvel if he is disquieted when he has lost his estate. But when a Christian, who has been in the school of Christ, and has been instructed in the art of contentment, has some wealth, he thinks, In that I have wealth above my brethren, I have an opportunity to serve God the better, and I enjoy a great deal of God’s mercy conveyed to my soul through the creature, and hereby I am enabled to do a great deal of good: in this I reckon the good of my wealth. And now that God has taken this away from me, if he will be pleased to make up the enjoyment of himself some other way, will call me to honor him by suffering, and if I may do God as much service now by suffering, that is, by showing forth the grace of his Spirit in my sufferings as I did in prosperity, I have as much of God as I had before. So if I may be led to God in my low condition, as much as I was in my prosperous condition, I have as much comfort and contentment as I had before. – Jeremiah Burroughs, from his book Rare Jewel of Christian Contentment