Posts tagged with: africa

You’ve heard it from us before: Good intentions are not enough.

Now hear it from a piece in the Columbia Journalism Review, “The Obscured Continent,” which takes a look at the special issue of Vanity Fair devoted to Africa (HT: Poynter Online). The piece begins by depicting the two major approaches to international development (compare to my “Henderson” model).

“In the end, it’s hard to avoid the feeling that the only thing it actually achieves is to convince us of those good intentions. Nothing more,” concludes CJR reporter Gal Beckerman. “And that, for Africans, both those who desire help and those trying to help themselves, is not even close to enough.”

Or as Etienne Gilson wrote, “Piety is no substitute for technique.”

In today’s NYT: “Oxfam Suggests Benefit in Africa if U.S. Cuts Cotton Subsidies.”

“Eliminating billions of dollars in federal subsidies to American cotton growers each year would reduce American cotton production and exports, raise world prices by about 10 percent and modestly improve the incomes of millions of poor cotton farmers in Africa, according to a new study by Oxfam, the aid group.”

About how many other industries could a similar thing be said? It’s also good to see that some of these multinational aid groups sometimes focus on liberalizing trade, rather than simply on direct government-to-government compensatory aid packages. Apparently Oxfam “has long campaigned for reductions in rich country agricultural subsides as a means to fight rural poverty in the developing world.”

One reason Oxfam is critical of bilateral free trade agreements is that they “do not address the adverse impacts of rich-country subsidies on poor countries through dumping, or the plethora of non-tariff barriers that continue to impede access to rich-country markets.” Their claim is that the bargaining power of individual developing nations is reduced under such agreements, so that the developing nation ends up giving up concessions to the wealthier nation, while the latter does no such thing. Reducing tariffs without addressing subsidies and other “non-tariff barriers” works to undermine the interests of developing nations.

The NYT piece ends on a bit of a pessimistic note, and no doubt the elimination of subsidies alone will not be enough to combat the grinding poverty that is so prevalent in the developing world. But it would do a lot to level the playing field and give resources and products from the developing world a fighting chance in the global market.

“Subsidy reform alone will not resolve all the challenges facing the cotton sector,” Oxfam said. “But it could significantly ease the burden on poor cotton farmers struggling to support their families.”

Kris Mauren (far right) and African guests get ready to visit GFS.

Acton University is now well underway, and on Wednesday a group of seven African attendees joined Kris Mauren on a visit to Gordon Food Service’s Grand Rapids headquarters for an up-close look at ethical capitalism. Mauren called it a great opportunity for people from countries with barren and corrupt markets to see an efficient, principled business for themselves. “The management of GFS also has a strong concern for philanthropy and international missions,” he said. “So it’s a great model of the capitalist ideal to hold up for these folks, who are used to a much more hostile economic climate.”

The group met with Gordon Food Service management for a luncheon, then toured the company’s office and factory area. Harry Ayile, formerly from Ghana and now residing in Norway, was completely blown away by what he observed. “It was like … wow,” Ayile commented with a smile. He was struck by the dedication shown by the company’s workers. “At every level, the workers are extremely well-organized, focused, and committed to doing their jobs excellently,” he said.

Ayile was astonished at how the “energetic” GFS employees took pains to avoid mistakes in the orders they were filling. “The business has a good system of checks and balances, and most of the employees have been there for fifteen years or more,” he said. “They take true satisfaction in their work.”

Comparing Gordon Food Service’s methods to the way business is done in Africa and even in Europe, Ayile said his visit couldn’t have been more of an eye-opener. “Before I came to Acton, I thought all people who did business were evil,” he said.

Ayile recalled one food-production company in Ghana that deliberately had been selling expired grain infested with maggots. “They would just sift out the maggots, package the grain, and sell it at full price,” he said. “Finally one employee caught on to what was happening and was able to produce evidence and pictures, but it went on for awhile.” Ayile called the incident typical of business practices in much of Africa, which lacks the institutional support necessary for free enterprise to flourish. When the rule of law is unreliable, incentives for greedy and corrupt behavior often outweigh the benefits of integrity. He added that many businesses “show very little respect for the consumer, as opposed to the way American businesses like Gordon Food Service care about their customers.”

Ayile and others from the group — which included visitors from the Congo, Kenya, and other African countries — all said they were very impressed with the way GFS invested in its employees and how these employees, in turn, were invested in the success of the company. Although Africa has a long way to go, Ayile said his visit was inspiring and gave him hope for the future of Ghana and other developing countries in Africa.

Oprah isn’t the only one opening a school in Africa. Fraser Valley Christian High School and Surrey Christian School in Canada have partnered together with Christian Extension Services in Sierra Leone, Africa to build a Christian Primary School in Kabala. This partnership is one of the initiatives I highlighted in a previous Acton Commentary.

The partnership has released its first newsletter (PDF here), which chronicles recent news and events, including prayer requests and special opportunities for donation.

Also be sure to keep up with the project at the blog administered on location in Sierra Leone, “A New School for Kabala.”

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.”

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.

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).

Blog author: mvandermaas
Friday, May 19, 2006
By

The Rock Star, sounding kind of Acton-ish:

Bono acknowledges that four years ago when he toured Africa with then U.S. Treasury Secretary Paul O’Neill, bringing private sector with him would never have crossed his mind.

“…I could see so many of the pieces intersected with commerce, trade and entrepreneurial spirit.”

It’s a signal of changes in Africa over the past decade, but in part it’s Bono’s own advocacy that has helped shift attitudes toward the African agenda.

“I think it is bizarre that Africa got me interested in commerce,” chuckles the U2 lead singer in an interview with Reuters. “I am an activist but I looked at the mosaic of problems facing this magical place and I could see so many of the pieces intersected with commerce, trade and entrepreneurial spirit.

“And I’m saying, I believe that Africa can compete with China in terms of offering jobs to its people in the apparel sector, I believe Africa can compete with India in terms of offering jobs to people in the IT sector, if this problem of business efficiencies and strangulation of red tape and corruption can be dealt with,” he said. Africa’s political leaders know the influence he wields. Lesotho’s Minister of Trade and Industry Mpho Meli Malie is one of those who knows that having Bono pitch for Lesotho’s apparel sector could bring new investments. “A celebrity like Bono and with his organization DATA they should be able to penetrate and encourage some of the brands to consider Lesotho as a destination,” said Malie.

The more that Bono and his fellow advocates turn their attention to private sector and entrepreneurial solutions to Africa’s problems, the better. And Bono – if you’re out there – Give us a call, will you? Let’s talk.

Blog author: dphelps
Tuesday, May 16, 2006
By

Sir Bob, Free Trader?

The May 16 Independent is guest-edited by the ubiquitous Bono and sports the RED brand–another Bono project where a share of the profits from the mag will be donated to fighting AIDS and poverty in Africa. (Other companies with RED brands include Converse, American Express, Armani, and GAP.) See the issue for yourself (where you will find a critique of subsidies, as well as Nelson Mandela giving props to RED as well as an interview with commedian Eddie Izzard–two men who much too rarely share a marquee).

What is of special interest to PowerBloggers is the article by Bob Geldof, founder of Live8, titled: Aid isn’t the answer. Africa must be allowed to trade its way out of poverty. This is the same Bob Geldof who has been lobbying for huge aid packages for twenty years, the same Bob Geldof who said “We must do something, even if it doesn’t work.” It quite something that this same fella who wrote the following:

In a time of weak world leadership, when the WTO negotiators are failing so miserably, let us remind their bosses – Bush, Chirac, Merkel et al – that we agree with them when they argue that, long term, “aid isn’t the answer”, and that the continent of Africa and its people must trade its way into the global market and sit where it rightfully belongs, negotiating as equals with the rest of us.

As always, I have no interest in questioning the intentions of Bob and Co.–I think they are the noblest of intentions, and I think more people ought to share their zeal for the poor. But could this admission that long term aid isn’t the answer mean that projects like the ONE Campaign are losing their luster? Or are people realizing that governments can’t solve poverty, but maybe the corrective is individual charity and free trade amongst free peoples?

And it is also worth noting that the cover art for the mag includes “Gen. 1:27″–I will save you the trouble of looking it up: “God created man in his own image; in the divine image he created them; male and female he created them.” I am curious how far Bono has parsed out the implications of this statement, as this verse lays the foundation for many of Acton’s economic arguments (for example, see here).

Blog author: jballor
Monday, May 15, 2006
By

John Stossel has made an excellent and noteworthy journalistic career by going where the evidence takes him. He possesses an intellectual honesty and curiosity that is refreshing, especially when compared to the banal talking head syndrome which dominates most main stream media.

As co-anchor of ABC’s 20/20, Stossel has negotiated a deal which allows him to do special reports on whatever interesting and controversial topics he chooses. His latest was a special aimed at debunking popularly accepted myths, tied to the release of his new book, Myths, Lies and Downright Stupidity.

Here’s Stossel’s #1 myth: More foreign aid will end global poverty. (You can view video of the segment here.) Stossel points to Bono and Jeffrey Sachs as examples of people who perpetuate this myth, with their advocacy of the ONE campaign and emphasis on increased foreign aid.

Stossel relies in part on June Arunga and James Shikwati of the Inter Region Economic Network to explode this myth: “Arunga grew up in Kenya, and she wonders why Americans waste money on foreign aid to Africa … when many politicians just steal it.”

“What’s holding down Africans is actually the bad governments, the bad policies that make it difficult for Africans to make use of their own property,” Shikwati said. “What the aid money is doing to Africa is to subsidize the bad policies that are making Africans poor.”

The Acton Institute has worked on exposing the false assumptions of this myth a long time, and with the help of Arunga and Shikwati as well. Arunga wrote a letter from a WTO meeting in Cancun in 2003, first published by the Acton Institute (PDF) and subsequently carried in the Philadelphia Inquirer (October 6, 2003). James Shikwati authored an Acton Commentary that same year, “The WTO and the Voice of the Poor.”

For more information about Acton’s work in these areas, check out our special Aid to Africa section, which brings together a number of important and related resources, including conversations on debt relief and the moral nature of business with the Rt. 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.

You can also visit Acton’s award-winning IMPACT ad campaign, aimed at raising awareness about the complexity of global poverty and the Solutions video, which addresses failures of governments first, governments only proposals.

And for more of John Stossel, check out the 2 CD set of his address at the Lord Acton Lecture Series on October 20, 1997, in which he deals with the pervasiveness of government and the nature of self-interest in the free economy.