Posts tagged with: aid

Coverage of the drought in the Horn of Africa has fixated on the amount of aid going into the region and humanitarians’ estimates of how much more will be needed. According to the U.N. Coordination of Human Affairs office, the $1 billion already committed to assistance is less than half of what will be needed—but who knows whether the final figure will be anywhere near the stated $2.3 billion.

Hundreds of thousands of Somalis are flooding out of their country into neighboring Kenya and Ethiopia because massive refugee camps and daily high-energy rations are better than the situation at home. This migration is no different than that of the Israelites in Exodus or Ruth: surely 3500 years and half-a-dozen moon landings later we ought to have a better way of doing things?

Well we do, but the U.N. and the rest of the humanitarian establishment have lost the patrimony of Moses, and so have been wandering around the desert, dispersing aid to no effect, for a good deal more than 40 years. There is, thank goodness, a growing realization that U.N.’s materialistic solution is not working, as Ian Ernest, the chairman of the Council of Anglican Provinces of Africa, said last week:

We would not only want to work on the immediate needs, but we are thinking, because this is becoming a chronic problem, we have got to see the root causes and fight it.

World leaders cannot help developing Africa, of course, unless they understand developing Africa, and that is hopeless if they do not understand human nature. There can be no to help for the world’s poor that does not come from a correct understanding of the human person. Modern humanitarian efforts undermine the dignity of the human person by treating the people of developing nations as mouths to be fed rather than the entrepreneurs who will pull their countries out of poverty.

Eva Muraya, a Kenyan businesswoman and one of the voices of Acton’s PovertyCure project, put it this way:

We begin to say no to poverty and begin to redeem the dignity of the citizens by virtue of creating business opportunity.

My biggest asset, I will say without a doubt, is the people who have worked with me, have worked alongside me.

As long as the U.N.’s mission in the Horn of Africa is unchanged, progress made by Somalia and other countries will be despite mainstream humanitarian efforts, not because of them.

Bread for the World CEO David Beckmann once said, “We can’t food-bank our way to the end of hunger.” As I said then, if “changing the politics of hunger” means that more people are getting food assistance from the government rather than food banks and community efforts, count me out.

But on a more hopeful note, this story from NPR tracking how Walmart has partnered with Feeding America, the largest food bank network in the nation, to get food that would otherwise be wasted into the hands of those that need it most. Last year Walmart announced a plan to contribute $2 billion to food banks in the form of direct cash assistance as well as material donations. You can see more at Walmart’s “Fighting Hunger Together” page.

And be sure to check out Feeding America to find out what food banks really can do.

Last week in Rome the Acton Institute presented a promotional video for the PovertyCure initiative before an international audience of businessmen, scholars, journalists, graduate students and missionaries in attendance at the Institute’s May 18 development economics conference: “Family-Enterprise, Market Economies, and Poverty: The Asian Transformation.” The Acton Institute is one of many partners in this new initiative made up of a network of individuals and organizations looking for free-enterprise solutions to poverty.

The video caused quite a stir in the hearts and minds of the attendees. So I solicited some feedback from the audience, a great percentage of whom hailed from countries with developing and emerging markets.

A missionary Ph.D. student at the Pontifical Gregorian University told me after the presentation: “This brief trailer has already brought to my clear attention the real hindrances to economic growth in South America and throughout (other) developing and emerging markets. And more importantly, what impressed me was what we have to do — through our own pastoral outreach — to begin changing the pervasive dependency on government hand-outs.”

One of the Vatican beat journalists present at the showing, Edward Pentin (who contributes to the National Catholic Register and Zenit, among others) had the chance to interview Acton’s president, Rev. Robert Sirico, about the video’s purpose and potential impact on changing common opinions on failing aid-based development economic systems.

In responding to Pentin’s questions, Rev. Sirico said the video’s aim is “to challenge the development community to really focus on developing, that is, opening spheres of economic productivity and cooperation … allowing the others to contribute to their own prosperity.”

Below you can find the May 19 Zenit article (or go here) and the Poverty Cure video.

Fostering prosperity
by Edward Pentin

Vast amounts of state aid and governments imposing endless regulations are not the way to solve global poverty; rather it will be done through trade, private enterprise and helping populations in poor countries to contribute to their own prosperity.

This is the view shared by members of PovertyCure — an international network of individuals and NGOs who are seeking to encourage anti-poverty solutions through fostering opportunity and unleashing the entrepreneurial spirit in the developing world.

A leading partner and one of the main organizers of the network is the Grand Rapids-based Acton Institute for the Study of Religion and Liberty. Its president and co-founder, Father Robert Sirico, told ZENIT there is “plenty of data across the board” that has long been known to create prosperity — namely low taxation, low regulation and increased market globalization. “This doesn’t come without some problems as the Pope and others have indicated, but this is the first time in human history where we know how to solve poverty.”

Father Sirico said one of the overarching aims of PovertyCure is “to challenge the development community to really focus on developing, that is opening spheres of economic productivity and cooperation,” allowing the others to “contribute to their own prosperity.” “When I put it like that it sounds so clear and simple,” he said, “but it is and that’s what’s frustrating.”

The American priest noted the challenges of overcoming a static mindset that believes government aid is the only real solution to global poverty. But he also highlighted a “perhaps more sinister” problem which is a “huge institutional vested interest in leaving the situation as it is.” He was referring to the thousands of people employed through aid program bureaucracies that are averse to change for fear it will put them out of a job. Father Sirico said it is “ridiculous to spend significant proportions of development money on supporting bureaucracies to administer programs.”

Instead he prefers what, in Caritas in Veritate, Benedict XVI calls “fiscal subsidiarity” — a form of creating credits in various nations not for foreign governments to invest in developing nations but for the citizens to invest in businesses in poor countries, and to have their tax burden lightened with respect to the investment that they give. “That’s one approach,” he said. “The other is to obviously drop the scandalous trade barriers that separate people and create pockets of interest in maintaining unfair portions of the market.”

When put to him that some aid agencies believe international aid should be a mix of private entrepreneurship and state aid, Father Sirico said governments should be “the last in and not be the most dominant” in a development situation which tends to always be very delicate. “The problem is that government is very heavy handed and bureaucrats develop self interest in justifying their existence,” he said. “So it sounds very reasonable to say you want to have a partnership but when the partner is a huge gorilla, and the other partners are small little enterprises, the gorilla has the say.”

He therefore prefers to approach the issue “through the lens of subsidiarity.” Otherwise, he said, there’s a tendency on the part of government to “suck all the air out of the room” and not allow scope for enterprise.

He readily concedes, however, that what he is advocating is not a panacea, nor that the free market is naturally moral. “People caricature my approach, saying [I believe] the market is virtuous,” he said. “But the market will reflect all of the vices and virtues that people will reflect in their own private life because that’s in fact what the market is.”
For this reason, he calls “for a more robust form of evangelization.” It’s evangelization, he said, that “really shows us what we need to do rather than covering it over with regulations and giving the impression that if we made regulations then we’ve solved the problem. That’s simply not the truth in terms of human misery.”

Father Sirico was speaking on the sidelines of a May 18 Acton conference in Rome on the transformation of the Asian economy through the expansion of trade, commerce, and entrepreneurship. He said that Asia is one of the “great examples” that “really underscores our point.”

In its vision statement, PovertyCure states that Christ calls us to solidarity with the poor, but this means more than just material assistance. “It means seeing the poor not as objects or experiments, but as partners and brothers and sisters, as fellow creatures made in the image of God with the capacity to solve problems and create new wealth for themselves and their families. At a practical level, it means integrating them into our networks of exchange and productivity.”

The Acton Institute and its co-members of PovertyCure are inviting other partners and NGOs to join the network. More details can be found on its Web site at: www.povertycure.org

International aid has come in for a lot of criticism recently and with the debate on the federal budget just beginning, U.S. funding for aid is on the chopping block.  With a rising deficit, and a struggling economy, many are asking why the United States chooses to continue funding international, or foreign, aid. People of faith are often caught in the middle of the debate on whether international aid should or shouldn’t be cut, along with the role the state should play.

In International Aid and Integral Human Development, Philip Booth, Editorial and Programme Director at the Institute of Economic Affairs, addresses the problems with international aid, the role the state should play in funding it, and how international aid should be funded to most effectively benefit those who receive it along with ensuring that the aid is founded on the correct moral principles.

Booth articulates that aid needs to focus on true development, which can be understood as a more well-rounded development.  Aid that fosters true development will encourage moral development, will ensure that those benefiting from the aid will not become slaves to consumer goods, presents an opportunity to own property and save, respects openness to God, the natural world and human rights.

In this new monograph, Booth explains why he thinks that our current structure of international aid is failing.  He offers a timely example:

Estimates of the size of the fall in the number of very poor in China over the last two decades or so range from 50 to 400 million, and other Asian countries such as Vietnam  have also seen astonishing declines in absolute poverty.  Such Asian countries account for the greats share of the reduction in absolute poverty in recent years, yet they are not among the top thirty recipients of U.S. foreign aid between 1996 and 2006.

Later in his monograph, Booth discusses the problems with the current top-down process of international aid.  He conveys how aid currently benefits the governing elite who have used their power to keep their people poor.  Corrupt governments prevent the aid from going to those who need it the most.  Booth also says that, “Aid changes the lines of accountability in government.  Governments become accountable to those from whom they receive aid—either through other government or institutions—and not to their own people.”  From his evaluation, Booth explains history has proven poor countries can develop without aid, and countries that receive aid do not tend to develop.

In a recent article appearing in The Telegraph, Booth further expands upon his ideas laid out in International Aid and Integral Human Development by showing that fair trade is not the answer to solving poverty. Instead, we should be looking towards free trade. In order to truly help a country, he argues, we must make sure they develop a sound economy that does not rely on aid. Booth explains in his column that fair trade is not the answer and is counter productive to its goals:

Fair trade is supposed to bring better working conditions to poor producers, together with higher prices and better social infrastructure. Questions have been asked about whether monitoring in the supply chain is sufficiently robust, and examples of unsatisfactory practice have been found. Furthermore, there are costs for producers. Poor farmers have to pay considerable sums to join up and often have to organise their businesses in particular ways: it is not suitable for all producers, especially in the poorest countries.

Booth later demonstrates how “fair trade is not capable of pulling 400 million people out of absolute poverty as free trade has done.”

In his monograph, Booth goes on to explain basic preconditions that are necessary for countries to develop, and where direct aid is appropriate. He brings in principles from Catholic social teaching, and explains that the common good requires basic conditions for humans to be able to flourish.  In International Aid and Integral Human Development, Booth gives very timely advice, and provides insightful recommendations for international aid while still abiding by the principles founded in Catholic social teaching.

International Aid and Integral Human Development by Philip Booth is available through the Acton Bookshoppe.  Booth’s article in The Telegraph can be found here.

Blog author: jballor
Monday, July 26, 2010
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Bill Easterly has a brief reflection on the role of religion in global societies, a role that must be taken into account by development ‘experts.’ Speaking of his experience at an Anglican worship service in Ghana:

I think it’s something about how to understand people’s behavior, you need to understand how they see themselves. A good guess is that the people in the congregation this morning, in one of the poorest regions of Ghana, do NOT see themselves primarily as “poor” or “developing”, they see themselves as Christians. Another guess is that similar feelings about religious faith would apply to other Ghanaians in other religious services, like Muslims, Catholics, traditional religions, etc.)

Development efforts must take into account broader cultural, non-material concerns, and religion plays an enormous constitutive role in the formation of cultural worldviews. More important than how those in developed nations see those in the developing world is how those in the developing world see themselves. And as Easterly notes, most often they see themselves primarily as “Christian” or “Muslim” rather than “rich” or “poor.”

Blog author: jballor
Monday, July 12, 2010
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Some of the assumptions built into the mainstream international aid and development movement are puzzling. Among them is the faulty assumption that the comparison that matters most is how the developing world is doing in relation to the developed. Not surprisingly, this kind of comparison tends to make the gains in developing countries seem small, inscrutable, or nonexistent, and end up reinforcing the myth that progress is never achieved.

What’s more important than how a country like Zambia is doing in comparison with a country like Belgium is instead how Zambia of today is doing compared with Zambia of 3, 5, 10, or 20 years ago. The comparison that’s most important is to how bad things have been and how they are relative to now, not how things there are versus here.

You see the outworking of this first kind of comparison, however, in the paradigms adopted by aid and development experts. As Stephane Fitch writes, the other model of comparison (not between developed and developing nations, which among other things feeds envy and despair, but rather between how it was and how it is now in a particular place) can inspire surprising gains from seemingly modest proposals. In a recent issue of Forbes, Fitch writes about the work of F.K. Day, a bicycle company executive who has done extensive work in Zambia.

As Fitch writes, Day complains that “World Bank types…tend to favor (and fund) paved roads and train tracks.” They tend to favor (and fund) those things they assume to be marks of development and progress, based on comparison with the existence of those things in the developed nations. But more important for a country like Zambia than paved roads, train tracks, or even internet access and affordable laptops, are simple and reliable means of short-range transportation: bicycles. In this case, bicycles that don’t, in Day’s words, “suck,” mean much more for the typical Zambian farmer or weaver than a paved road or WiFi service. His charity produces bikes that are much more reliable, sturdier, and appropriate for the Zambian terrain.

Fitch describes Day’s vision:

Through his World Bicycle Relief charity the ponytailed entrepreneur hopes to put millions of sub-Saharan Africans aboard special heavy-duty bikes designed to withstand the continent’s rugged roads while carrying 200 pounds of cargo–enough for a weaver to bring his rugs, or a farmer to tote his produce, to market. Moreover, he aims to promote a self-sustaining bicycle economy with regional operations assembling the bikes and area mechanics trained to repair them.

Sometimes you need to walk before you can run, and pedal before you can press down on the accelerator. This is as true for an individual as it is for a national economy.
Day is focusing on encouraging and fostering entrepreneurship and sustainability (e.g. profitability), and he does so with an explicit acknowledgment of the power of markets to transform lives: “You can have all the goodwill in the world,” he says, “but if what you do isn’t driven by the invisible hand of Adam Smith, you’re doomed to fail.”

That’s another way of saying that good intentions are no substitute for sound economics, and the wedding of both is what you see in Day’s work. And that’s what we’re all about here at the Acton Institute. As Fitch concludes, “It’s amazing too how a charity with a small budget ($2.5 million) and a staff of 24, including 19 in Zambia, can change thousands of lives, two wheels at a time.”

For more information on Day’s charity, his brand of “ponytail capitalism,” and the “bicycle economy” he’s trying to build in Zambia, check out the Forbes slideshow.

The AP reports that of the roughly $379 million spent by the US government on relief efforts in Haiti, less than 1% has been in the form of direct government to government aid.

This has raised complaints from the Haitian president, Rene Preval, who says his government isn’t getting its fair share. According to the report, Preval spoke at a news conference and complained, “There’s a perception of corruption, but I would like to tell the Haitian people that the Haitian government has not seen one penny of all the money that has been raised — millions are being made on the right, millions on the left, it’s all going to the NGOs (nongovernmental organizations).”

But is that really so bad? If it is the citizens of Haiti who need direct assistance, why should more of the money be routed through the Haitian governmental bureaucracy?

Undoubtedly the government is struggling to provide any modicum of law and order in the chaos of the last two weeks. And whatever money the Haitian government receives should go firstly toward providing that kind of stability within which aid workers, food suppliers, and virtuoso entrepreneurs don’t have to be so concerned with theft and violence.

And in any case, the amount spent by the US government thus far is a small percentage of the nearly $2 billion in aid that has been sent in to the disaster zone. Indeed, according to the Chronicle of Philanthropy, private aid from America is running at about $470 million, topping the government’s contributions by nearly $100 million. Preval’s claims to a greater share of that aid money seem to not have much merit.

It isn’t the Haitian government that is the object of charitable aid; it’s the Haitian people, and that’s where the vast bulk of the money ought to be (and seemingly is) going. That’s also why calls for forgiveness of the Haitian government’s debts are so misguided, at least in the short term as the dead are still being pulled from the rubble.

Blog author: jballor
Thursday, January 14, 2010
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I have to admit that my first few reactions to the news of an earthquake in the Caribbean weren’t especially charitable. I thought first that the scale of the reports had to be exaggerated, that things couldn’t be as bad as the media was breathlessly reporting. Then I wondered how long it would take for the environmental movement to make use of the disaster to advance their agenda. Neither of these reactions are particularly noble on my part, obviously. Blame it on my dispositional skepticism, I suppose.

But by all accounts, the human toll in Haiti after the earthquake is vast. In a world of digital media and on-demand news reporting, we can oftentimes see instantaneous first-hand accounts of these kinds of events. Here’s a kind of informal poll for PowerBlog readers: are you planning on donating specifically to address the need resulting from the earthquake in Haiti? And if so, which agencies or charities are you specifically supporting?

One of my favorite charities of first resort, International Aid, closed up shop amidst the economic downturn last year (Update: A commenter notes that International Aid is still making international shipments and actively working in Haiti). My family and I support a child in the Dominican Republic through Compassion International, which is currently accepting donations aimed specifically for Haiti. (I haven’t heard much about the impact on that other nation sharing the island with Haiti, incidentally. Relative to Haiti, of course, the Dominican Republic is markedly more economically stable.)

Put some specific suggestions in the comments for other PowerBlog readers to consider. Do you use denominational ministries, stand-alone aid agencies, something else, or nothing at all? There are the typical guides to disaster giving, which often point to large groups like the Red Cross, to whom my fundamental skepticism also applies.

One curious response has been to send outdated sports apparel to devastated areas.

Commenting on how Pope Benedict XVI addressed the economic crisis and development challenges in “Caritas in Veritate” is Lord Brian Griffiths of Fforestfach, a member of the British House of Lords and Vice-Chairman of Goldman Sachs International. He has served in an advisory capacity to the Acton Institute and delivered published papers on globalization and Third World development at the Institute’s international conferences.

Click here for the original article appearing in The Times.

July 13, 2009
The Times

Pope Benedict is the man on the money

The best analysis yet of the global economic crisis tells how people, not just rules, must change.

By Brian Griffiths

When Cardinal Ratzinger was elected Pope, his strengths and weaknesses seemed clear. Here was an eminent theologian, philosopher and guardian of Christian truth, but a man unlikely to make the Church’s message relevant to the world today. How simplistic this now looks in the light of his third encyclical, in which Pope Benedict XVI confronts head-on the financial crisis that has rocked the world.

The language may be dense, but the message is sufficiently rewarding. The encyclical analyses modern capitalism from an ethical and spiritual perspective as well as a technical one. As a result it makes the Government’s White Paper on financial reforms published two days later look embarrassingly one-dimensional and colourless.

It is highly critical of today’s global economy but always positive. Its major concern is how to promote human development in the context of justice and the common good. Despite heavy competition from some of the world’s finest minds, it is without doubt the most articulate, comprehensive and thoughtful response to the financial crisis that has yet appeared. It should strike a chord with all who wish to see modern capitalism serving broader human ends.

The Pope makes it clear that the encyclical takes its inspiration from Populorum Progressio, the encyclical published by Paul VI in 1967, at the height of anti-capitalism in Europe. It attacked liberal capitalism, was ambivalent about economic growth, recommended expropriation of landed estates if poorly used and enthused about economic planning. (more…)

Throughout Caritas in Veritate there is a strong message to help the poor.  This is an age old belief held by many.  It can be found throughout the Bible and is preached by Christians and members of differing faiths.

What was interesting and refreshing to hear in this new encyclical was how Pope Benedict XVI renewed this call for helping the poor.  What has become the common theme presently is to provide aid to poor countries that gets funneled directly to the government.  It is then left to the decisions of the governments of the poor countries to determine how to spend the aid.  Unfortunately, too many governments of poor countries are corrupt and tyrannical, and they use the aid in inappropriate ways that does not help provide aid to the poor of their country.

Pope Benedict seemed to not only understand but acknowledge this in Caritas in Veritate by recommending that the people receiving the aid should have direct influence on how the aid is used.  Those receiving the aid know better than their government where the aid is most needed and how to put it to the greatest use possible:

Social concern must never be an abstract attitude. Development programmes, if they are to be adapted to individual situations, need to be flexible; and the people who benefit from them ought to be directly involved in their planning and implementation. The criteria to be applied should aspire towards incremental development in a context of solidarity — with careful monitoring of results — inasmuch as there are no universally valid solutions. Much depends on the way programmes are managed in practice.

Furthermore, Pope Benedict carefully iterates in section 58 that the aid should be used to improve the lives and conditions of those that receive it.  The aid should not come with strings attached that keep those who receive it locked into a state of dependence or exploitation with the donors.  Instead the aid should liberate people from the state of poverty that they are currently in and provide them with opportunities to work and provide for themselves.

Too provide such aid Pope Benedict calls for us and for countries to look within and cut waste.  Once that waste is cut, people and countries should be able provide more aid to those who need it.  As we’re reminded in the Acton Institute video shown above, the solutions to poverty start with us.