Article: “Big Questions and Poor Economics”
James Tooley. “Big Questions and Poor Economics: Banerjee and Duflo on Schooling in Developing Countries.” Econ Journal Watch 9, no. 3 (September 2012): 170-185.
In Poor Economics, MIT professors Abhijit Banerjee and Esther Duflo set out their solutions for global poverty. Their key premise is that development experts have been sidetracked by the “big questions” of development, such as the role of government and the role of aid. This approach, they say, should be eschewed in favour of adopting carefully tested “small steps” to improvement. The book ranges widely, covering topics such as food, health, family planning and microfinance. Here I treat only their arguments on education in developing countries. Poor Economics points to evidence that shows that governments have not been successful in bringing quality education to the poor. Nevertheless, the authors bring their own big-think judgments to suggest why, despite the evidence, governmentally owned and operated schooling should remain central. Part of their own evidence concerns how private schooling, including for the poor, is burgeoning and outperforming government schooling. But private education cannot be the solution, they argue, because private schooling is not as efficient as it could be. The problems identified by Banerjee and Duflo are, however, clearly caused by bad public policy. I suggest that development economists are quite justified in forming and exercising judgment on the big questions, and that when they do exercise such judgment they should be aware that they are doing so.
Article: “Catholicism, Human Rights and the Public Sphere”
Christopher McCrudden, International Journal of Public Theology
This article suggests that the scope and meaning of human rights, and its relationship to religion, is anything but settled, and that this gives an opportunity to those who support a role for religion in public life to intervene. Such intervention should address four main issues. First, it should ensure that judges engage in attempting to understand religious issues from a cognitively internal viewpoint. Secondly, it should articulat a justification for freedom of religion that fully captures the core of the significance of religious belief, and the importance of the religious principles in the public sphere. Thirdly, it should ensure engagement and dialogue between the churches and others on the meaning of human dignity, given its centrality to religious and secular perspectives on rights. Lastly, the churches should consider more carefully what it means to give ‘public reasons’ in the political and cultural context, and how it can engage in the process of ‘public reasoning’ regarding human rights.
Article: “New Challenges for Catholic-Inspired NGOs in Light of Caritas in Veritate“
Jane Adolphe, Catholic Social Science Review
The non-governmental organization (NGO) is perceived not only as a disseminator of information, monitor of human rights, or provider of services, but also as a shaper of national, regional, and international policy. Many members of the lay faithful, working with others from various Christian denominations, have established NGOs to monitor and to promote the rights of the unborn, the natural family, and many other topics of common interest. These NGOs lobby at the national, regional, and international levels. This paper discusses the role of the Catholic-inspired NGO on the international level with reference to the thought of Pope Benedict XVI in his encyclical, Caritas in Veritate.
International Conference on “Governance and Sustainable Development: Building Commerce and Communities,” Coimbatore, India 10th-13th December, 2012. With increasing calls for greater accountability and efficient management of sustainable development, there are also greater demands for more effective governance in this area. The overarching aim of the conference is to provide a forum for stimulating debate and exchange of ideas by exploring the latest developments in the governance of sustainable development from a variety of perspectives including environmental sustainability, social enterprise, corporate governance, legal pluralism, and social investment. The conference will appeal to academics, professionals from both business and non-profit entities, and policy makers.
The Operations Editor would work with the JBIB editor to identify data bases and journal listings that the JBIB should be in, to assist with printing and other logistics, and to help guide the future of the JBIB in the fast-paced academic journal industry.
The Book and Media Editor would work with the editorial staff of the JBIB to manage media reviews for the journal. The Editor should understand the nature of media in the 21st century, be organized, be experienced in the classroom, and be of an inquiring mind.
The course I taught was a survey of some major themes in the Catholic social tradition, with readings from Augustine, Aquinas, Maritain, and the modern papal encyclicals and conciliar documents. Interested readers can see the syllabus here. Guest speakers Father Robert Dodaro, OSA and Father Stephen Brock brought their great expertise to bear on our discussions of Augustine and Aquinas, and I took the class on a side trip to the magnificent Augustinian mother church in Rome, the Basilica Sant’Agostino, which includes the tomb of St. Monica and a wonderful Caravaggio (Madonna di Loreto).
If you want to work in international development, says Charles Kenny, go work for a big, bad multinational company:
Kids today — they just want to save the world.
But there is more than one way to make the planet a better place. Here’s another option: Get an MBA and go work for a big, bad multinational company. Consider this: Over the past decade, foreign direct investment in Africa topped foreign aid — and in 2011 alone, by $7 billion. And unlike food handouts or free latrines, this kind of investment built factories, financed banks, and opened mines and oil fields, creating tens of thousands of jobs and transferring invaluable knowledge to the countries that need it most. That’s good news, because it is increasingly clear that new technologies are what’s driving improved quality of life in Africa, and new ways of doing business are vital to sustaining economic growth on the continent.
Yet there’s still a widespread feeling that multinationals are the rapacious, profit-obsessed spawn of globalization and free markets, running amok across the developing world. Some surely are. But think about how hard U.S. states compete to attract a Toyota factory. Or how happy Britain was when the Indian firm Tata bailed out its ailing steel industry. If multinationals can make that kind of difference in job creation and productivity in the rich world, consider the even greater role they play in poorer countries.
If you weren’t able to attend last week’s Acton Lecture Series event here at Acton’s Grand Rapids office, we’ve got you covered. we’re pleased to present video of Rudy Carrasco’s lecture, entitled “Business as Mission 2.0,” below.
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.
Michael Matheson Miller, Acton’s Director of Media, recently made an appearance on NPO Showcase, a community access show here in the Grand Rapids area, to discuss the PovertyCure initiative. The full 15 minute interview is available for viewing below:
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.
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.
Three days ago I arrived in Nairobi, Kenya, for Acton’s conference at Strathmore University. Driving about the city the last few days, I have been amazed by the number of small-medium businesses located in the kiosks along streets. These simple, tin/wood structures are bustling with enterprising and entrepreneurial souls working hard to better their lives and those of others.
With such diligent and enthusiastic people, why is Kenya such a poor country?
In discussions with students and staff at Strathmore, I have heard many stories outlining the significant problems with law, property, and inter-tribal (low non-kin) trust. You wonder:
• How can a country thrive when officials do not equally distribute justice? Where bribes and connections determine legal decisions?
• How can an entrepreneur access the necessary start-up capital for his business when he is considered a squatter in the home he built because he cannot access a title to the land?
• How can local or foreign investors expand their businesses when they are not members of a certain tribe and so are not well trusted?
These are the struggles, not only of Kenya, but of the developing world. These are the problems that need to be addressed in order to have a strong market economy that has the power to reduce poverty world-wide. These are some of the many questions asked and discussed at today’s conference titled Economic and Cultural Transformation: Breaking the Shackles of Poverty.
More than 170 people attended this conference, co-sponsored by Strathmore’s Governance Centre. We heard the speakers discuss both the theory and the practice of moving out of poverty through enterprise. By building up the institutions of rule of law, private property, and a culture of trust, the creative power of individuals is able to be unleashed and drive innovation and business. A new mindset is needed – not to rely on big government or foreign aid, but upon the many entrepreneurs who create wealth and help countries rise out of poverty.
Also see the article “Involve People in the Poverty Fight” by Antoinette Kankindi and Tom Odhiambo of the Strathmore Centre which appeared in yesterday’s Nairobi Star.
Update (3/25): The Standard reports on the conference. Read “Top economists urge African States to support enterprises.”