Posts tagged with: aid

Philosopher and theologian, Michael Novak recently delivered a speech at the Catholic University of America on the vocation of business and Forbes published the transcript. Novak argues that “capitalism is lifting the world out of poverty.” As many Asian and African economies shift from socialist to capitalist, they are seeing enormous economic growth, and small businesses are the force behind these economic gains:

Even in developed nations, most jobs are found in small business. In Italy, over 80 percent of the working population works in small businesses. In the U.S., the proportion is just about 50 percent, but some 65 percent of new employment is in small businesses.

During the great economic expansion of 1981-1989, the U.S. added to its economy the equivalent of the whole economic activity of West Germany at that time. Sixteen million new jobs were created in the U.S., the vast number of them in small businesses. Startups peaked as new businesses came into being at a rate of 13 percent (as a portion of all businesses) – an all-time high. Much the same happened under Clinton in 1993-2001, but even better – 23 million new jobs were created.

In the creation of small businesses, four factors are necessary. First, ease and low cost of incorporation; second, access to inexpensive credit; third, institutions of instruction and technical help (such as the system of local credit unions in the U.S.), and the steady assistance of the extension services of the A&M universities; and, fourth, throughout the population habits of creativity, enterprise, and skills such as bookkeeping and the organization of work. Economic development is propelled, as John Paul II said, by know-how, technology, and skill (Centesimus Annus 32). Therein, perhaps, lie the greatest entry-points for Americans and others who wish to help poor nations by proffering assistance in economic development from the bottom up. (more…)

Mission Drift, Peter Greer, Chris HorstPeter Greer recently wrote a book about the spiritual danger of doing good, encouraging Christians to deal closely with matters of the heart before putting their hands to work. “Our service is downstream from the Gospel message,” he said in an interview here on the blog. “If we forget this, it’s just a matter of time before we self-destruct.”

Just a year later, writing alongside co-author Chris Horst, he’s released another book, Mission Drift  this time focusing on the spiritual risks faced by Christian organizations, churches, and the leaders who drive their missions. Their thesis: “Without careful attention, faith-based organizations will inevitably drift from their founding mission.” Assuming such organizations are founded out of obedience to God, such missions are not, of course, ours for the drifting.

Highlighting a number of cases, from Yale University to ChildFund to the YMCA, as well as the struggles they’ve faced at their own organization (HOPE International), Greer and Horst demonstrate that it is all too common and convenient for Christian organizations to move toward whole-scale secularization. Such a digression is the “natural course,” they argue, and without the proper foundation, safeguards, and determination, “drift is only a matter of time.”

Yet it is not inevitable. Thus, in an effort to help others prevent such a course, the bulk of the book focuses on how organizations can stay “Mission True” — serving, adapting, and growing without changing their God-given identity. “Mission True organizations know why they exist and protect their core at all costs,” they write. “They remain faithful to what they believe God has entrusted them to do. They define what is immutable: their values and purposes, their DNA, their heart and soul.” (more…)

Blog author: jcarter
posted by on Tuesday, February 4, 2014

povertycureCan the current model of humanitarian aid generated by networks of large philanthropic foundations, NGOs, and Western governments actually alleviate global poverty? The latest Liberty Law Talk podcast asks Acton’s Michael Miller, director of the new Poverty Cure Initiative, to address that question and to explain what conditions can lead to prosperity:

As Miller discusses, the prevalent humanitarian aid model frequently uproots the very beginnings of the circles of exchange that must exist for wealth to be created in these societies. Frequently missing as well in the current approach is understanding how crucial the rule of law, property rights, and markets are in the uplift from poverty, and that frequently, these economic and legal orderings are absent in regions of hardship. Consequently, the conditions for human flourishing don’t exist and cannot be created by large philanthropic interventions, which everywhere substitute parental relationships between the donor and recipient in the place of real human flourishing in these communities.

Click here to listen to the podcast.

SpiritualDangerGreerPeterPeter Greer has spent his life doing good, from serving refugees in the Congo to leading HOPE International, a Christian-based network of microfinance institutions operating in 16 countries around the world. Yet as he argues in his latest book, The Spiritual Danger of Doing Good, “service and charity have a dark side.”

As a study from Fuller Seminary concluded, only one out of three biblical leaders finished well, despite the good they accomplished during their lifetimes. How can Christians avoid the spiritual dangers that persist in pursuing the good of our neighbors?

Greer’s book offers plenty of answers, and in an interview with On Call in Culture, he was kind enough to offer a glimpse.

As a young man, you noticed a certain brokenness in the aid industry—manipulation, phoniness, failure to uphold the dignity the human person. Yet you began to recognize these same traits within your own heart. Why does the position of the heart matter? Why isn’t it good enough to get busy?

In 2002, a volcano erupted in Congo. I went to help. Up high on a platform, I handed out blankets to refugees. And a photographer was snapping photos. But I wasn’t thinking about the refugees. My thought was: I can’t wait until people back home see these photos of me.

That moment helped me see how it’s possible to appear to be serving God but actually be making our service all about us. Unless we rediscover why we serve, our service can become a way to promote our image, heightening vanity and pride. (more…)

In the world of celebrity-do-gooders, Bono has earned the reputation of being more than a mouthpiece. Over two decades, the musician has created the ONE campaign, worked with Amnesty International, collaborated on the Band Aid bono clintonconcerts, and became increasingly involved in poverty-stricken Africa. He worked for years to promote debt forgiveness for African nations, while working for increased foreign aid.

And now? Bono says capitalism is the answer. Rudy Carrasco writes at Prism Magazine:

…Marian Tupy, who writes at the Cato Institute blog, ‘For years, Bono has been something of a pain, banging on about the need for billions of dollars in Western foreign aid…’

The world has taken notice that Bono has adjusted his economic tune. In a November 2012 speech at Georgetown University, Bono said, ‘Aid is just a stopgap. Commerce [and] entrepreneurial capitalism take more people out of poverty than aid.’ One month earlier Bono had shared at a tech conference in Ireland that he was humbled to realize the importance of capitalism and entrepreneurship in philanthropy.

These recent declarations, however, have been brewing for a few years. A 2010 New York Times op-ed by Bono notes how ‘lefty campaigners’ and business elites are learning to collaborate: “The energy of these opposing groups is coming together [because both] see poor governance as the biggest obstacle they face.”

Bono’s affirmation—that business takes more people out of poverty than aid—should be a rallying cry for a new generation.

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Blog author: adeleon
posted by on Wednesday, July 3, 2013

A common lesson that many of us were taught in grammar school was what defined an ‘opposite.’ As children we learn that hot and cold are antonyms; as are bad and good, living and dead, love and hate. One statement that I recently heard challenged a childhood preconception of mine. It declared that the opposite of love is not hate, but indifference.

If we think about what indifference is, we soon see that it is in stark opposition to love. To be neither hot nor cold toward a person in need is quite a horrific thing. It involves a lackadaisical attitude where we fail to see human beings as individual persons made in the image and likeness of God. If I have a neighbor down the street and do not care if his family is treated unjustly I am acting in an egocentric way. I am being indifferent and not – loving my neighbor as myself.

This idea troubled me and I began to wonder what ways I was acting indifferently toward others. My first thoughts were about homeless men and women whom I had ignored on the street. This notion shifted once again as I began to think not about whom I had ignored, but the reason behind why I had ignored them. I found two reasons.

The first had to do with my resources. I am a recent graduate of James Madison University in Harrisonburg, Virginia and an intern at the Acton Institute who has more debt than money to his name. Since I am not able to fully provide for myself I can only offer a bit of pocket money or volunteer from time to time. Because my resources are limited, my ability to help is limited.

The second reason, I am ashamed to say, is that I do not always take beggars at their word. I find that I am more likely to believe a man who is asking for gas money than a man who is looking to buy food. This may seem judgmental at first, however I do find that there is a logical reason behind my rationale. (more…)

SmotherAugustine observes that humans are constituted in large part by their sociality. As he puts it in the City of God, “For there is nothing so social by nature as this race, no matter how discordant it has become through its fault.”

I have written that a corollary of the natural law is a vision of society as one based on mutual aid. This includes economic exchange as well as the economy of gifts and the corresponding gratitude, as I have highlighted this week.

But this orientation towards others can take a negative turn. As I noted yesterday, Augustine describes a corrupted kind of “spiteful benevolence.”

C.S. Lewis explores this as well in his description of the person who must always be giving to the point of fostering dependency, foisting oneself upon others, and even creating the need for intervention if necessary. This “unselfish” giving of oneself to others can turn into the most depraved kind of selfishness.

As Wormwood relates a description of such a person in The Screwtape Letters, “She’s the sort of woman who lives for others–you can always tell the others by their hunted expression.”

This kind of need to be needed is of course a corruption of love. By contrast, the true expression of love is exemplified in no more glorious a fashion than the truly other-directed self-giving of a mother.

This is something to remember and celebrate this Mother’s Day.

Africans unite to save Norwegians from dying of frostbite. By joining Radi-Aid, you too can donate your radiator and spread some warmth in the frozen wasteland of Norway.

Why Africa for Norway?
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In The American Spectator, Acton Institute’s Michael Matheson Miller throws his hat into the ring as he launches a tongue-in-cheek candidacy for World Bank president, but also raises serious questions about the institution’s poverty fighting programs. Miller is a research fellow at Acton, where he directs PovertyCure, an initiative that promotes enterprise solutions to poverty. Jeffrey Sachs — are you listening?

Here are some planks from Miller’s campaign platform:

I don’t believe that foreign aid is the solution — or even a solution. It has subsidized corruption and delayed the development of local business. In short, it is generally part of the problem. And I’m not alone in thinking so. There are growing numbers of Africans, Latin Americans, and Asians who are saying no to aid and instead want the chance to have free and fair competition.

I also don’t believe the developing world is a lab for Western scientists and technocrats to test out their various utopian theories on others. When I am president of the World Bank, none of these people would be given support to experiment with the lives of others.

In this connection, I should mention that I don’t believe in a “scientific” solution to poverty. Nor do I believe that I or anyone else can end poverty “forever.” There will always be some poverty because there will always be human weakness, human error. There will always be a need for human love and caring.

Read “Here I Come to Save the Day — How I would lead the World Bank” by Michael Matheson Miller on The American Spectator.

Last summer, Acton’s PovertyCure team traveled to Ghana to meet with its economists and entrepreneurs — the men and women who are helping the country develop. It just so happens that they also met briefly with Peter Cardinal Turkson, president of the Vatican’s Pontifical Council for Peace and Justice and co-author of the note released yesterday that has stirred up a global controversy.

Cardinal Turkson, a native of Ghana, calls for the establishment of a central world bank in his note to the G-20, published in anticipation of next month’s summit in Cannes. Drawing from the first world’s obligation in solidarity to the developing world, he says:

Specific attention should be paid to the reform of the international monetary system and, in particular, the commitment to create some form of global monetary management, something that is already implicit in the Statues of the International Monetary Fund. It is obvious that to some extent this is equivalent to putting the existing exchange systems up for discussion in order to find effective means of coordination and supervision. This process must also involve the emerging and developing countries in defining the stages of a gradual adaptation of the existing instruments.

On that trip to Ghana, PovertyCure sat down for an interview with entrepreneur Herman Chinery-Hesse, a Ghanaian software developer who writes programs that can handle frequent power outages and primitive technology. (“Everybody builds Rolls Royces, but we’re in Africa; we build Land Rovers,” he explains.) His experience with a heavily nationalized economy that is dependent on foreign aid has taught him much:

I have never heard of a country that developed on aid. If you have heard of one, let me know! I know about countries that developed on trade, and innovation, and business. I don’t know of any country that got so much aid that it suddenly became a first world country. I have never heard of such a country.

Chinery-Hesse has plenty of experience with engines of economic progress created by well-meaning Western nations:

You cannot imagine how petty the political parties could get [in Ghana]… and they can do this because they are not depending on tax revenue. They are more interested in a smile on the World Bank country director’s face than the success of my business.

A truly human program of development must take into account the fallen nature of developing countries’ rulers — they’re human too, after all. The World Bank is disruptive enough as it is: ask Herman Chinery-Hesse whether Ghana would improve if we merged it into a behemoth financial overlord.