Category: Effective Compassion

In this Beliefnet interview conducted by Charlotte Allen, conservative firebrand Ann Coulter references the work of Acton senior fellow Marvin Olasky:

Is it possible to be a good Christian and sincerely believe, as Jim Wallis does, that a bigger welfare state and higher taxes to fund it is the best way in a complex modern society for us to fulfill our Gospel obligation to help the poor?

It’s possible, but not likely. Confiscatory taxation enforced by threat of imprisonment is “stealing,” a practice strongly frowned upon by our Creator. If all Christians and Jews tithed their income as the Bible commands, every poor person would be cared for, every naked person clothed and every hungry person fed. Read Marvin Olasky’s “The Tragedy Of American Compassion” for further discussion of this.

Very often Coulter comes off sounding crazy, and her rhetoric would certainly be more at home in the sixteenth rather than the twenty-first century. Even so, I found this interview eye-opening on a number of levels, and in her answer to this question she makes a lot of sense. Ron Sider makes the same point about tithing a number of times in his recent book, The Scandal Of The Evangelical Conscience.

Also, Rod Dreher doesn’t approve of Coulter’s “schtick”.

HT: GetReligion

At least, the title of this post is typical of the mantra against the practices of drug pharmaceutical companies, according to Peter W. Huber’s “Of Pills and Profits: In Defense of Big Pharma,” in Commentary magazine (HT: Arts & Letters Daily).

Huber, a senior fellow of the Manhattan Institute, summarizes in brief the anti-drug company argument, and then goes on to examine what truth there is in such claims. He says of the difference between creating and administering drugs, “Getting drug policy right depends mainly on getting that difference straight—the difference, that is, between ministering to the sick and making medicines—and grasping its implications from the start. Big Pharma’s critics do not even try.”

He goes on:

Pricing is indeed the key. Whether the first pill typically costs $100 million or $1 billion to develop, replicating it costs less—a thousand times less, or perhaps a million times less. This slope—precipice, really—is far steeper than most of the other hills and valleys of economic life. It complicates things immeasurably. It also largely explains the gulf between the industry’s perception of reality and that of the critics.

Huber gives some explanation of the function of the price mechanism in pharmaceutical markets, and says, “Economists have established—as rigorously as things ever get established by the dismal science—that there is no efficient price, no ‘right’ price. Any scheme is, from one perspective or another, inefficient, unreasonable, or worse.” He argues that the high prices for boutique drugs like Viagra in the developed world help fund the provision of desperately needed drugs in the developing world. This is the situation created by so-called “price discrimination”.

The situation he says, is similar to that of airline travel: “Business travelers get soaked, college students fly almost for free, and the jumble of prices in between drives most people nuts. But the planes are packed full, and that drives the average price of a ticket way down. The rich fly, and the much less rich fly, too.” There is, I would think, a similar model at play in the work of plastic surgeons who charge Hollywood millionaires huge sums to do face lifts and tummy tucks, and then use a portion of the money they make doing that to do pro bono work for burn victims and deformed children.

The complexity of the pricing situation is what critiques of drug companies tend to ignore. Concludes Huber, “This kind of behavior is not aberrant or anomalous—it is an inevitable and essential part of groping toward the right price where there is no right at the end of the tunnel. Somehow or other, the average price of the pill has to end up high enough to pay off the up-front cost.”

If Huber’s analysis is correct, it is interesting to see how a nonprofit drug company, like the one profiled in today’s New York Times article, “A Small Charity Takes Lead in Fighting a Disease,” fits into the picture. The NYT article itself exemplifies many of the criticisms against pharmaceuticals that Huber summarizes.

Huber points to the vagaries of government regulation and private insurance, which greatly affect the drug market. One explanation for the situation that a nonprofit drug company like OneWorld Health attempts to address is that “big drug companies shun some drugs and embrace others because, collectively, the FDA, doctors, patients, insurers, and juries push costs higher, and prices lower, on some categories of drugs and not on others, to the point where some make economic sense and some do not.”

Indeed, OneWorld Health is working with a drug for black fever that, according to the NYT, administered “a series of cheap injections was identified decades ago but then died in the research pipeline because there was no profit in it.” There is, effectively, a partnership at play between for profit and nonprofit drug companies. OneWorld Health didn’t develop the drug in the first place, but on that point is dependent on the work of for profits.

Huber says:

Universities and small biotechs license their innovations to Big Pharma because they lack the capital, scale, and expertise required for mass manufacturing, because they wouldn’t know how to sell the same drug five times in succession (to the FDA, doctors, patients, insurers, and juries), and because a vast and swampy system separates pharmaceutical innovation from the treatment of real patients at prices that will cover cost and earn a profit. The little guys just don’t have what it takes to finish the job.

But OneWorld Health, in the case of the drug mentioned above (paromomycin), “has conducted the medical trials needed to prove that the drug is safe and effective. Now it is on the verge of getting final approval from the Indian government. A course of treatment with the drug is expected to cost just $10, and experts say it could virtually eliminate the disease. If approval is granted as expected this fall, it will be the first time a charity has succeeded in ushering a drug to market.”

Huber concludes that in the future “we will fare better, much better, if we streamline regulation, curb litigation, and unleash prices to make vaccines as alluring to Big Pharma as Viagra and Vaniqa.” But in the meantime, it may be that efforts like OneWorld Health can help at least some of those who fall through the cracks. Says Dr. Ahvie Herskowitz, one of the backers of OneWorld Health, “We fill a gap pharma companies cannot because they have to make a profit.”

And on the biggest obstacle to getting vaccines and drugs like paromomycin to those who need it, for profit and nonprofit drug companies seem to agree: “The government will be the biggest challenge,” says Dr. C. P. Thakur, a former Indian health minister who oversaw a OneWorld Health trial of paromomycin.

Sunglasses

Hunger, disease, the waste of lives that is extreme poverty are an affront to all of us. To Jeff [economist Jeffrey Sachs] it’s a difficult but solvable equation. An equation that crosses human with financial capital, the strategic goals of the rich world with a new kind of planning in the poor world. –Bono, Foreward to The End of Poverty by Jeffrey Sachs, italics mine.

I am informed by philologists that the “rise to power” of these two words, “problem” and “solution” as the dominating terms of public debate, is an affair of the last two centuries, and especially of the nineteenth, having synchronised, so they say, with a parallel “rise to power” of the word “happiness” for reasons which doubtless exist and would be

Mustaches

interesting to discover. Like “happiness”, our two terms “problem” and “solution” are not to be found in the Bible-a point which gives to that wonderful literature a singular charm and cogency. . . . On the whole, the influence of these words is malign, and becomes increasingly so. They have deluded poor men with Messianic expectations .. . which are fatal to steadfast persistence in good workmanship and to well-doing in general. . . . Let the valiant citizen never be ashamed to confess that he has no “solution of the social problem” to offer to his fellow-men. Let him offer them rather the service of his skill, his vigilance, his fortitude and his probity. For the matter in question is not, primarily, a “problem”, nor the answer to it a “solution”. –L. P. JACKS, Stevenson Lectures, 1926-7

This proper way of serving others also leads to humility. The one who serves does not consider himself superior to the one served, however miserable his situation at the moment may be. Christ took the lowest place in the world—the Cross—and by this radical humility he redeemed us and constantly comes to our aid. Those who are in a position to help others will realize that in doing so they themselves receive help; being able to help others is no merit or achievement of their own. This duty is a grace. The more we do for others, the more we understand and can appropriate the words of Christ: “We are useless servants” (Lk 17:10). We recognize that we are not acting on the basis of any superiority or greater

Says Masses

personal efficiency, but because the Lord has graciously enabled us to do so. There are times when the burden of need and our own limitations might tempt us to become discouraged. But precisely then we are helped by the knowledge that, in the end, we are only instruments in the Lord’s hands; and this knowledge frees us from the presumption of thinking that we alone are personally responsible for building a better world. In all humility we will do what we can, and in all humility we will entrust the rest to the Lord. It is God who governs the world, not we. We offer him our service only to the extent that we can, and for as long as he grants us the strength. — Benedict XVI, Deus Caritas Est

The Super MoneyMaker Pressure Pump

No, we’re not talking about Elmore James’ Blues hit covered by the likes of George Thorogood, Fleetwood Mac and The Black Crowes nor its racy subject matter.

Rather, it’s how members of the other oldest profession in Kenya and Tanzania power the irrigation pumps that extend both their growing season and range of crops. This foot-powered move beyond subsistence farming to much more profitable harvests, such as vegetables, is facilitated by the aptly named MoneyMaker series of pumps. 

KickStart (previously Approtec) 10 years ago produced the Original MoneyMaker Pump; the over 4,000 in operation still generating $3.9 million in profits annually. Since then the Super MoneyMaker Pressure Pump, resembling and operated much like a Stairmaster, can push water uphill 7 M (23 ft.) to irrigate 2 acres. The newest – and most affordable – version, The MoneyMaker Plus Pump relies on swinging one’s hips side to side on a skateboard-like platform, a motion that, unlike arm-powered pumps in particular, can be performed all day. Costing $34, KickStart officals claim it generates $1000 in profits the first year.

Though even this amount can be out of the reach of the world’s poorest, KickStart co-founder Martin Fisher, insists on a business model. Along with enriching “farmerpreneurs”, Kickstar has created a private supply chain though hundred of farming supply shops that sell the pumps and spare parts. Undercutting these local merchants and removing their incentive to stock parts would be one of the serious disadvantages of giving away the pumps.

Beyond the pragmatic concerns, their ultimate goal is to “create dignity,” Fisher said on NPR’s Weekend Edition. He concluded, “When you give things away, you are really just creating dependency and people hanging out waiting for more handouts.”

Blog author: jspalink
posted by on Wednesday, July 12, 2006

Philanthropy, for all its good intentions, does not necessarily imply a personal connection with the needy person. It can and often does, but it doesn’t have to. Philanthropy is the more institutional, “big-picture” cousin of charity, which is the personal and direct connection to those in need. Andrew Carnegie building hundreds of libraries with the wealth he made in the steel industry, and being celebrated for it to this day, is philanthropy. Your Aunt Evelyn volunteering at the local church-operated hospice and sending the facility an annual donation of $150, in perfect anonymity, is charity.

Karen Woods examines Warren Buffett’s gift to the Bill and Melinda Gates Foundation and discusses the importance of his philanthropy while at the same time emphasizing the need for support of smaller, local charities that interact directly with those they help, creating accountable and personal relationships that effect change in people.

Read the complete commentary here.

It is one thing to create wealth by using our gifts. This is a matter of knowledge. It is quite a different thing to know what to do with the wealth that has been created. That is where wisdom comes into the picture. Rev. Zandstra, a Senior Fellow with the Acton Institute, examines Warren Buffett’s recent gift of $31 billion to the Bill and Melinda Gates Foundation and offers words of hope that the Gates Foundation can use this wealth with wisdom, making a difference in the lives of those they seek to help.

Read the full commentary here.

Acton Impact ad raising awareness of the malaria epidemic.

An article in today’s New York Times, “Push for New Tactics as War on Malaria Falters,” coincides nicely with Acton’s newest ad campaign (see the back cover of the July 1 issue of World). The article attacks government mismanagement of allocated funds in the global fight against malaria. Celia Dugger, the author, writes:

Only 1 percent of the [United States Agency for International Development's] 2004 malaria budget went for medicines, 1 percent for insecticides and 6 percent for mosquito nets. The rest was spent on research, education, evaluation, administration and other costs.

The game is now changing, however. The White House has initaited new campaigns, boosting allocation for medicines, insecticides, and mosquito nets to over 40% of the agency’s total malaria budget. The new government push is also raising awareness among private donors, including the Bill and Melinda Gates Foundation.

Acton has begun a media campaign to raise awareness of available and economically sound solutions to the malaria epidemic. Among possible solutions is the indoor residual spraying of insecticides, including DDT (proven to be highly effective and safe in South Africa), distribution of treated mosquito nets, distribution of medication, and educational programs that explain where malaria comes from and how to avoid it.

Visit our Impact Malaria page for more reading and for links to get involved in the global fight against malaria.

GoodSearch is a Yahoo!-powered search engine that allows you to designate a recipient charity of your choice. Once you pick a charity, each time you use GoodSearch that group will receive one cent. GoodSearch was founded by a brother and sister who lost their mother to cancer and wanted to find an easy way for people to support their favorite causes.

The Acton Institute is now an option and can be designated as your GoodSearch recipient. Simply type in “Acton Institute” in the field below the search form to verify whom you are supporting.


Those looking for more direct ways to support the work of the Institute can join us in advancing freedom and virtue here.

HT: WorldMagBlog

Ecumenical News International (ENI) relates the launch last month of a new initiative in Africa, designed to “to mobilise a strong African voice in development.” The effort is called African Monitor and is led by the Anglican Archbishop of Cape Town, South Africa, Njongonkulu Ndungane.


Anyone who spends much time at all looking at the economic development situation in Africa quickly realizes the lack of independent, nongovernmental, native voices. As African Monitor states, “This African civil society voice can thus be seen as the too often missing ‘fourth piece of the jigsaw’ alongside existing stakeholders of donor governments and institutions; their African counterparts; and donor-based NGOs and civil society.”

African Monitor’s mission is to begin to fill this need: “African Monitor is an independent body, acting as a catalyst within Africa’s civil society, to bring a strong African voice to the development debate, and to raise key questions from an African perspective.” The initiative represents a truly unique and much needed enterprise, since before the creation of African Monitor “there was no existing pan-African network that can provide such a catalyst across the sub-Saharan region, and taking a perspective across aid, trade, development and financial flows.”

In his address before the opening of the group, titled, “Let African Voices speak out for effective action on Africa’s development,” Archbishop Ndungane emphasized the need for accountability and true follow-through on the part of donors and developed nations: “We saw that Africa’s grassroots voices, currently marginalised and fragmented, could be harnessed to pursue these ends, and that faith communities, the most extensive civil society bodies on the continent, could provide the backbone of networks to bring these voices into the public arena.”

The Acton Institute has long supported the claim that African civil society needs to take a leading role in the development of the African continent. See, for example, the conversation with Rev. Bernard Njoroge, bishop of the diocese of Nairobi in the Episcopal Church of Africa, and Chanshi Chanda, chairman of the Institute of Freedom for the Study of Human Dignity in Kitwe, Zambia, about the issues of debt cancellation the moral nature of business (video clips, .wmv format, available for Rev. Njoroge and Mr. Chanda).

A recent NYT article outlines some recent research showing that many people who give to charity “often tolerate high administrative costs, fail to monitor charities and do not insist on measurable results — the opposite of how they act when they invest in the stock market.” Tyler Cowen writes in “Investing in Good Deeds Without Checking the Prospectus,” about the research of John A. List, a professor at the University of Chicago, which “implies that most donors do not respond when they have opportunities to be more effective in their giving.”

Cowen, who is a professor of economics at George Mason and blogs here, concludes, “If donors do not abandon failing causes, those efforts will continue. Perhaps the content of donor pride needs to change. Rather than taking pride only in their generosity, donors should also take pride in their willingness to confront unpleasant news.”

The bottom line is that when you give to charity, you have a responsibility to give to charities that are good stewards of the money, thereby rewarding good charities and punishing bad ones. Doing this gives the proper incentives for charities to work well.

Part of the problem is that people may not really know how to measure the effectiveness and stewardship of a given charity. The Acton Institute’s Samaritan Guide is a tool designed to assist donors in meeting this responsibility.

Indeed, Acton’s effective compassion initiatives, based on Marvin Olasky’s seven principles for effective compassion, are largely based on providing the education that donors need to find out the sort of issues and questions that they should be asking.

HT: EconLog