Posts tagged with: development

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.

Acton has been heavily involved in developing a new initiative called PovertyCure, an international network that promotes entrepreneurial solutions to poverty rooted in the dignity of the human person.

We are excited to announce the launch of PovertyCure this week. Acton has joined together with over 100 organizations to encourage people to rethink charity and development.

In the last three years I’ve had the privilege of interviewing over a hundred people from all over the world—religious and political leaders, small business owners, development experts, people working with orphans and the sick, and entrepreneurs creating jobs and prosperity in their communities. It’s been inspiring and eye-opening. You can watch clips from some of those interviews at the Voices page of the PovertyCure website.

Watch the 3 Minute Promo (below) and a clip from Fr. Sirico on Charity and Enterprise. You can “Like” PovertyCure on Facebook and follow us on Twitter.

And please encourage your church, business or non-profit to join the PovertyCure network.

Blog author: jballor
posted by on Friday, June 24, 2011

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.

Returning from a conference earlier this week, I had the chance to speak with Garreth Bloor, a student at the University of Cape Town in South Africa, about his engagement with politics, the role of religion and civil society, and “Mama Africa’s” story of microfinance success.


In the interview Garreth recommends “The Call of the Entrepreneur” and Lessons from the Poor.

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
posted by on Monday, July 26, 2010

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.”

Back in 1983, economist Thomas Sowell wrote The Economics and Politics of Race, an in-depth look at how different ethnic and immigrant groups fared in different countries throughout human history. He noted that some groups, like the overseas Chinese, Japanese, and Jews, tended to thrive economically no matter where they went, bringing new skills to the countries that they arrived in and often achieving social acceptance even after facing considerable hatred and violence. Other groups, like the Irish and the Africans, tended to lag economically and found it difficult to become prosperous.

Sowell explained many of these differences by looking at the cultures both of the immigrant groups and of the dominant powers in the countries that they moved to. The Chinese, Japanese, and Jews, for example, valued work. They often arrived in countries with little more than the clothes on their backs, but they worked long and hard hours in menial labor and saved money scrupulously to make life better for their children. Even if they lacked social acceptance, they were allowed the freedom to develop their talents and contribute to the economic life of their new homes.

Irish and African cultures were never offered these opportunities. Ireland’s feuding lords had prevented hard work from being rewarded in Ireland, a situation that only got worse with British occupation. Sowell shows how Africans were similarly discouraged from working hard because slavery and the Jim Crow Era made it impossible for skills and effort to pay off in better standards of living. So long as hard work never paid off, there was no incentive for Irish or African cultures to emphasize entrepreneurship, and the members of these ethnic groups suffered from poverty rates much higher than those of other populations in the places they lived.

Fast forward to 2009. With many of the institutional barriers to the advancement of ethnic minorities gone from most countries, historically disadvantaged groups are catching up with the general population in economic terms. Pope Benedict revisited the theme of economics and culture in his encyclical Caritas in Veritate, coming to similar conclusions as Sowell does about the role that culture plays in the development of the human person. (more…)

Kevin Schmiesing, research fellow at the Acton Institute, was interviewed by Ave Maria Radio recently on Caritas in Veritate.  Schmiesing explains how the idea of human development and progress figure as central themes of the encyclical.  It is important to remember that our ethical advancement must be ahead of material human development, and our ethics must be paired with our personal development.  Furthermore, Schmiesing explains that Caritas in Veritate warns against an all encompassing role for the state.

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Kishore Jayabalan, director of Istituto Acton, was also interviewed by Ave Maria Radio on Caritas in Veritate.  Jayabalan talks about the ways trade has brought many countries out of poverty in contrast to government-to-government aid.  The importance of subsidiarity is scattered throughout Caritas in Veritate, and Jayabalan articulates that subsidiarity should only be expanded to more remote areas of the world when the local authority is unable to respond to the needs of the people.  Furthermore, Jayabalan explains how globalization has made us all neighbors, but to Pope Benedict XVI it is important that we make these neighbors our brothers.

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Kishore Jayabalan, director of Istituto Acton (the Acton Institute’s Rome office), was interviewed by Vatican Radio concerning the authentic human development concerns of the whole person, which is a topic discussed in Caritas in Veritate. Jayabalan discussed how development schemes throughout the world should look at the aspirations of each individual person.  Furthermore, in Caritas in Veritate there is a mention of a “breathing space” used a few times in the encyclical.  This breathing space aspect means developing a vibrant and diverse society and not allowing central planning to decide every aspect of a person’s life; it is also important to place the individual at the center of the development.

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Samuel Gregg, Director of Research at the Acton Institute, was interviewed on Ave Maria Radio.  Gregg discusses Caritas in Veritate while addressing many issues that have risen from the encyclical.  Gregg explains that the encyclical is not a conservative or liberal document, but rather it is simply Catholic.  People should not read it through the eyes of secular political categories; importantly, when reading Caritas in Veritate, we must not think in secular terms on issues such as the free market and redistribution of wealth.  Gregg also makes a point to mention Caritas in Veritate does not say markets are evil.  Markets are good, but we must make sure they are grounded in morals — this is what makes a market good and successful.

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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…)