Posts tagged with: development

Blog author: kjayabalan
posted by on Friday, December 2, 2011

In my opinion, those words coming from the mouth of Declan Ganley were the most memorable from our distinguished speakers at yesterday’s conference “From Aid to Enterprise: Economic Liberty and Solutions to Poverty” in London.

Ganley compared what European governments were doing in their attempts to deal with their sovereign debt problems with the attempts of rock stars to solve the problem of hunger in Africa with Live Aid back in the 1980s. It was just one of many precious remarks coming from the Irish entrepreneur who also led his country’s ultimately unsuccessful campaign against the Lisbon Treaty. As someone who’s quite committed to a unified Europe, he worries a lot about the future of the European project, should the euro no longer serve as a common currency. We’d all be better off if governments just let creditors that made bad loans bear the brunt of their decisions, Ganley told us, instead of trying to prop up banks that are considered “too big to fail.” The problems affecting Europe is also the same one that plagues many developing nations – the collusion of big government and big business to squash competition. As a result, Europe and to a lesser degree the United State are in no position to preach and need to get their own houses in order, a lack of meddling that could well benefit poor countries in the end if we recover the importance of enterprise and trade.

Some of the other speakers, such as Lord Brian Griffiths and our own Anielka Munkel, very ably addressed the importance and centrality of the human person along with the vital role played by social institutions such as the family and churches in the free society. It’s a relatively straightforward, even obvious point but one that’s under attack in international development circles. (I can add from my personal experience with the Holy See at the United Nations that many developed, and especially European, governments refuse to admit the role of parents and the family in development, and I have the battle scars to prove it!)

Antoinette Kankindi of Strathmore University in Nairobi did something I’d never seen before as a student of political philosophy and economics by bringing Aristotle and his discussion of work and leisure into a conference on foreign aid. Prof. James Tooley gave the remarkable story of low-cost private schools in many parts of the developing world and how they thrive where governments are most inefficient and and ineffective, all drawn from his book The Beautiful Tree. The Ghanian entrepreneur Herman Chinery-Hesse also related many funny-if-not-sad accounts of doing business in places where State officials try to pick winners and losers.

For me, the most edifying presentation was the one by Marcela Escobari from the Kennedy School of Government at Harvard, of all places. Using a lot of new mapping data, she destroyed many of the myths surround how countries grow out of poverty and underlined the importance of increasing economic complexity, the diversity of knowledge and even imitation, rather than narrow specialization and an overemphasis on innovation, for developing countries. We don’t often have a speaker with such a good grasp of new research and important technical details at an Acton conference but her contribution makes me think that we should.

There were many good questions from the audience about the challenges of Christian individuals and organizations in the development field and I’d say the take-away message from our panel was: do not involve yourselves in misguided foreign aid schemes in the name of charity, which only serve to exacerbate the scandal of poverty and corruption in many parts of the world. It looks like the message was well-received, even if, in the end, a certain Londoner named Tony did not grace us with his presence.

Blog author: kjayabalan
posted by on Wednesday, November 30, 2011

Greetings from London, which is only partially shut down today due to a public sector strike over the British government’s not-so-temporary austerity plan. The worst fears of extremely long delays at the airports and of possible violence have yet to materialize and let’s hope they never do.

We’ll be holding the last of our Poverty and Development conferences here tomorrow on the theme “From Aid to Enterprise: Economic Liberty and Solutions to Poverty.” Our speakers will look at the (rare) successes and (recurring) failures of government-to-government development assistance, and it just so turns out that former British Prime Minister Tony Blair weighted in on the subject with a Washington Post op-ed last Sunday entitled “Ending global aid in a generation.” Blair boldly and confidently predicts: “I believe that within a generation no country need be dependent on aid. This matters around the world but especially to Africa, the continent most dependent on aid and a focus of my own work. ” You’d be forgiven for thinking that Blair was the keynote speaker at our event, having seen the light on the futility of Official Development Assistance (ODA).

Alas, you’d be wrong. For while Blair does cite the positive example of South Korea’s development based on enterprise, he still clings to the dogma of the church of ODA: governments must still fulfill their commitments to provide 0.7 percent of GDP to ODA. He doesn’t seem to ask the obvious question, which will surely be raised at our conference: if ODA is generally ineffective, in some cases counterproductive to the cause of development and only serves to breed economic dependence, why should governments continue to honor their commitments to a failed policy? Courage in the service of an ignoble end is no virtue, after all.

I, for one, still note an lingering prejudice against free enterprise in Blair’s supposed conversion: “Lord, make me trade with others as equals, but not yet”, to adapt St. Augustine. Like everyone else in these times of austerity, Blair preaches the need for economic growth. But also like many others, he doesn’t seem to realize how to achieve it. Yes, he addresses important factors such as governance and investment, which only leaves me wondering why he couldn’t seem to mention that dreaded word “business” in his article. Development, for Blair, remains in the hands of government leaders and aid experts, rather than in the hands of the people who take risks, seek new opportunities to provide goods and services to others, and thereby create wealth.

In the words of a former U.S. president, “Yo, Blair!” You should stop by our conference tomorrow to complete your bold vision of world without foreign aid.

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.

Blog author: mmiller
posted by on Thursday, October 6, 2011

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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