Posts tagged with: international aid

"Help me help you."

“Help me help you.”

Yesterday in conjunction with this week’s Acton Commentary I looked at Tim Riggins’ gift of freedom to his brother and the corresponding sense of responsibility that resulted. When Tim takes the rap for Billy, Billy has a responsibility to make something of his life. As Tim puts it, that’s the “deal.”

When Tim feels that Billy hasn’t lived up to his end, it causes conflict. Tim’s gift has created an obligation for the recipient. This reality is on clearest display in this exchange between the two brothers:

Billy: “How long are you going to hold it over my head, man?”

Tim: “The rest of my life if I feel it needs to be.”

This hints at the shadow-side of much of our gift-giving as human beings, as this good thing can be turned into a way of manipulating, controlling, or holding “it over” someone.

Consider these words about Augustine and their implications for the kinds of gift-giving that we ought to pursue:

A person who sorrows for someone who is miserable earns approval for the charity he shows, but if he is genuinely merciful he would far rather there were nothing to sorrow about. If such a thing as spiteful benevolence existed (which is impossible, of course, but supposing it did), a genuinely and sincerely merciful person would wish others to be miserable so that he could show them mercy!

The “spiteful benevolence” that drives much gift giving is actually intended to keep the recipient in a state of dependence, in a relationship that gives power to the giver which can be lorded over others. This, I think, is actually one of the key dynamics of much of the modern international aid movement. Aid can become a tool of a kind of neo-colonial policy.

It is this debased and corrupted form of gift-giving that has led so many to the extreme position which argues that true gifts require no response and inspire no responsibility. But as I argue this week, this abuse of the reality of gift is no argument against its proper use: “The connection between gift and gratitude invigorates a life of stewardship and responsibility.”

In the German newsmagazine Spiegel, Kenyan economics expert James Shikwati says that foreign aid to Africa is doing more harm than good:

SPIEGEL: Mr. Shikwati, the G8 summit at Gleneagles is about to beef up the development aid for Africa…

Shikwati: … for God’s sake, please just stop.

SPIEGEL: Stop? The industrialized nations of the West want to eliminate hunger and poverty.

Shikwati: Such intentions have been damaging our continent for the past 40 years. If the industrial nations really want to help the Africans, they should finally terminate this awful aid. The countries that have collected the most development aid are also the ones that are in the worst shape. Despite the billions that have poured in to Africa, the continent remains poor.

SPIEGEL: Do you have an explanation for this paradox?

Shikwati: Huge bureaucracies are financed (with the aid money), corruption and complacency are promoted, Africans are taught to be beggars and not to be independent. In addition, development aid weakens the local markets everywhere and dampens the spirit of entrepreneurship that we so desperately need. As absurd as it may sound: Development aid is one of the reasons for Africa’s problems. If the West were to cancel these payments, normal Africans wouldn’t even notice. Only the functionaries would be hard hit. Which is why they maintain that the world would stop turning without this development aid.

Read more . . .

Acton’s Rev. Robert A. Sirico published an article in Religion and Liberty in the fall of 2010 on Haiti and how we could help it recover.  It has been several months since then, and eighteen months since a 7.0 magnitude earthquake struck Haiti near Port-au-Prince, killing around 230,000 people.  Eighteen months is a long time and many, including myself, have pushed Haiti into the background of their minds.  However, Haiti is still desperately struggling to recover from this terrible disaster.

Excerpts from a letter written to the International Organization of Migration by a Haitian citizen show just how dire the situation is: “Since January 12th, things have only gotten worse and worse. We do not have work and we do not have money. There is no supervision. We are shown hope, but nothing has come to us except the hurricane season.”

Another letter written to the IOM by a Haitian citizen states: “What will be done for those of us living in tents? We are eating dust. We want to go home. How can you help? There are talks of a rebuilding process since IOM carried out a registration in the camp but nothing has happened. Must we wait for ever? We want to find work, because it is very painful to wait and be dependent on others for help. When we work, we suffer less. We believe that if IOM could give us work, things would be better for us and our families.”

The Haitian people are still struggling mightily to merely survive.  How did this happen?

It has not been from a lack of generosity.  According to the British charity Oxfam, “over $1 billion was quickly raised for the emergency response… [it was] ‘unprecedented generosity’ shown by the world for Haiti.”

In fact, the aid has helped in many ways:  “U.N. figures show around 4 million people received food assistance, emergency shelter materials were delivered to 1.5 million, safe water was distributed to more than a million, while a million more benefited from cash for work programs.  The U.N. World Food Program continues to help close to two million Haitians with school meals, nutrition and cash-and-food-for work programs.”

However, as the recovery has dragged on, Oxfam reports that “few damaged houses have been repaired and only 15 percent of the basic and temporary new housing required has yet been built.”  Also, much of the rubble from the earthquake has yet to be cleared, which has significantly slowed rebuilding and recovery efforts.

In terms of human health, the president of Doctors Without Borders International “blasted what he called the ‘failure of the humanitarian relief system’ to stem cholera epidemic deaths in Haiti.”

In addition, Oxfam reports “The World Bank says almost half of the $5.3 billion — about $2.6 billion — has been approved in donors’ budgets, while a separate Bank document said [only] $1.2 billion had been actually disbursed to date for program support.”  Only about 23 percent of the funds available for Haiti’s recovery have been dispersed, and this has certainly slowed rebuilding.

Oxfam has called the situation a “quagmire”.  The lack of progress is not surprising given the leadership vacuum in Haiti: “[the earthquake] has brought together a weakened and struggling Haitian government, an alphabet soup of U.N. agencies, other governments from around the world and an army of private charities that some estimate at more than 10,000.”

Although the relief effort started off well, the chaos of a situation with no clear leader has stifled a true recovery and left the Haitian people in despair unnecessarily.  If the Haitian government has been unwilling or unable to lead due to the magnitude of the disaster, then another organization or country needs to step up and help Haiti organize the charities and aid dispersal.  Waiting for “someone else” to take the lead has just caused more suffering.

Ted Constan, chief program officer of Boston-based Partners In Health, said, “We need to think about getting money down into the communities to produce jobs for people because that’s the only way people are going to get on their feet economically. We’d like to see more of a ‘pull’ policy being generated around getting people out of the camps – markets, jobs, healthcare, clean water, stable housing etc.” Helping Haitians get jobs and adequate housing is fundamental to the rebirth of the country.

In the words of Rev. Sirico: “Haiti needs practical help and generous charity right now — implemented intelligently, and with a keen eye for existing conditions. We need to support aid agencies that provide water and medicine.”  This is still as true today as it was in the fall of 2010.  As much as possible, we need to support organizations that can successfully accomplish this.

Finally, as Rev. Sirico has previously stated: “In the long run, we have to look at what Haiti needs to prevent such disasters and minimize their impact. What the country needs is economic development and a culture that can support such development.  What Haiti needs are the institutions that provide protection and cushioning in cases of emergency. Most of all, it needs to develop economically.”  Hopefully, this will happen soon, but, until then, we can keep Haiti in mind, pray for the people there, remember to support the charity efforts there, and have a desire to help the country progress and develop in the future.

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.

Cardus’ Robert Joustra rightly pillories “fair trade” along with the logic of foreign aid in a challenging article, “Fair Trade and Dead Aid: ‘My Voice Can’t Compete with an Electric Guitar.’”

Joustra’s point of departure is sound: “The aid model is not working, and no large-scale cash infusion or debt forgiveness scheme is going to make it suddenly start working. The fair trade brand is too small-scale and ultimately regressive.”

Unfortunately, though, Joustra’s well-placed critique of the fair trade movement underestimates the scope of the movement’s vision. With regard to coffee, for instance, Global Exchange has called for “a total transformation of the coffee industry, so that all coffee sold in this country should be Fair Trade Certified.”

The logic of fair trade in fact requires such wholescale paradigm shifts. But Joustra critiques the movement in part because it does not, on his view, represent the needed “long-term substantive critiques of the global social and political architecture.”

Joustra conclude that “as long as our consciences are salved by feel-good coffee branding and knee-jerk check writing campaigns, we won’t take the hard look we need at the architecture of global capitalism and bring about the social innovation that is necessary for genuine architectonic reformation.”

The problem with fair trade is not that it is not a comprehensive alternative to so-called global capitalism. It is that undermines the proper functioning of the market by artificially manipulating the price mechanism, resulting in all kinds of negative consequences, some of which Joustra notes, promoting “unprofitable work, and subsidizing unprofitable and undiversified economies.”

The critical questions that remain for Joustra and others are these: Does the proposed architectonic alternative to the current system properly value the role of markets or not? Do the corporatist and governmental abuses of “global capitalism” (e.g. subsidies, price fixing, and so on) need to be addressed, or are the philosophies of fair trade and aid not sufficiently communitarian? Is the basic problem free trade and liberal economic globalization itself or the distortions thereof?

Update: Robert Joustra cogently addresses my questions. His answers, in part:

First, I believe capitalism, particularly coupled with the rule of law in a culture of virtue and long-term’ism, is a sound economic system. But our capitalism has degraded to an obsession with utilitarian short-term materialism. Some are apt to blame the system, but consumerism is nothing new – the scale which modernity enables us to practice it on is. That can entice us to be overly critical of the system which facilitates it, but I remain convinced that the deep “sites” of resistance to global consumerism are not our politics or our institutions, but our homes, churches and grocery stores. Politics, as they say, is downstream of culture and our culture is saturated with short-term materialism.

I find very little with which to quibble in these answers. Read the whole thing.

In a blow to international relief work, the Spring Lake-based International Aid has announced that it is ceasing operation, effective immediately.

CEO Dr. Gordon Loux cited a “perfect storm” of fiscal hardship: “We have tried to turn it around and we’ve sent out a number of appeals,” he said. “But because of the West Michigan economy and because of donor fatigue of most organizations trying to raise funds, we’ve got the perfect storm.”

In May, longtime CEO and president Myles Fish resigned, citing a restructuring plan focused on handling decreased levels of giving. According to Charity Navigator, International Aid was a model of efficiency in 2007, with 95% of funds being directed to program expenses and garnering a four star rating for both organizational efficiency and organizational capacity.

Founded in 1980, International Aid, “a Christian-based organization known for helping millions around the world, particularly in developing countries hit hard by natural disasters,” received about 40% of its revenue from individual contributions, with foundation support accounting for just over a quarter of support.

Background: “Global Giving and Local Needs”

One of my favorite novels is Saul Bellow’s Henderson the Rain King. Eugene Henderson is a loud, boorish, rich American who goes on a soul-searching journey into the heart of a mythically depicted Africa.

One of Henderson’s first stops is a village inhabited by folks called the Arnewi. He comes into the village brandishing his modern implements, lighting a bush on fire (one of many biblical allusions) and offering to shoot any man-eating lions with his gun loaded with .375 H and H Magnum.

Henderson is determined to help the people of the village any way he can. When it becomes clear that the people (and their livestock) are suffering from water shortages, Henderson leaps into action.

It turns out that the source of the problem is that the village’s cistern is populated by frogs, which the villagers understand to be a curse. The water is not itself harmed by the frog’s presence, but it cannot be used while the frogs are there. Moreover, the Arnewi are prevented from doing anything about the infection, and must wait for divine intervention to lift the curse.

Henderson, of course, is restrained by no such ceremonial inhibitions. He says to the prince, “You’re not allowed to molest these animals, but what if a stranger came along–me for instance–and took them on for you?” Henderson is dedicated to helping the people, “I realized I would never rest until I had dealt with these creatures and lifted the plague.” (more…)

Blog author: jballor
posted by on Monday, May 15, 2006

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.

An snippet from Ecumenical News International:

Presbyterians invest $1 million in church ‘bank’ that helps poor

New York (ENI). The Presbyterian Church (USA) has invested US$1 million in Oikocredit, an organization established by the World Council of Churches that assists people in poor countries start small businesses. The investment is the largest in Oikocredit over more than a decade, the church announced earlier this week, making the 2.4-million-member US denomination the second-largest investor in the institution set up in 1975. The largest is the Church of Sweden.

I’ve looked a bit at the Oikocredit organization, and in generally this does not fit my normal expectations for an initiative by the left-leaning WCC. To be sure, Oikocredit does employ the rather vague criteria of “socially responsible investing” when deciding which groups to fund.

But in general, the microlending approach is much more economically viable and informed than many ecumenical attitudes towards global poverty. Started over thirty years ago, Oikocredit has a track record, and “was created for groups that need credit to develop their productive enterprises, but have difficulties receiving credit through conventional financial institutions, because they simply lack collateral.” For a personal story of how microloans can be a part of the solution (along with property rights, the rule of law, and so on), see this commentary by Rev. Jerry Zandstra.

Despite its shortcomings, Oikocredit on the whole is probably a good thing. And again, when compared to what you typically see from ecumenical groups, it’s positively refreshing.

In this week’s Acton Commentary, “The North American Church and Global Stewardship,” I note that blessed with extraordinary material riches, Christians in North America are increasingly viewing their stewardship responsibilities in a global context. I look at one school in British Columbia and how their local building project also raised funds for a school in Sierra Leone.

Dennis DeGroot, principal of Fraser Valley Christian High School, writes and informs me, “The money keeps coming in for the school project. The students have far exceeded their goal. The total now at $36,000 and money still coming in.” He also says, “My long term vision for this is that all Christian schools would find partnerships like ours in the developing world; true partnerships where we learn from each other where real wealth lies.”

For some background, you can read my brief column in The Banner, “Building on the Tithe.”