Posts tagged with: poverty

Arthur Brooks, president of the American Enterprise Institute, has an op-ed in today’s Wall Street Journal that every conservative should read—and heed:

Conservatives are fighting a losing battle of moral arithmetic. They hand an argument with virtually 100% public support—care for the vulnerable—to progressives, and focus instead on materialistic concerns and minority moral viewpoints.

The irony is maddening. America’s poor people have been saddled with generations of disastrous progressive policy results, from welfare-induced dependency to failing schools that continue to trap millions of children.

Meanwhile, the record of free enterprise in improving the lives of the poor both here and abroad is spectacular. According to Columbia University economist Xavier Sala-i-Martin, the percentage of people in the world living on a dollar a day or less—a traditional poverty measure—has fallen by 80% since 1970. This is the greatest antipoverty achievement in world history. That achievement is not the result of philanthropy or foreign aid. It occurred because billions of souls have been able to pull themselves out of poverty thanks to global free trade, property rights, the rule of law and entrepreneurship.

Some say the solution for conservatives is either to redouble the attacks on big government per se, or give up and try to build a better welfare state. Neither path is correct. Raging against government debt and tax rates that most Americans don’t pay gets conservatives nowhere, and it will always be an exercise in futility to compete with liberals on government spending and transfers.

Instead, the answer is to make improving the lives of vulnerable people the primary focus of authentically conservative policies.

Read more . . .

I have recently accepted the honor of becoming a contributing editor at Ethika Politika, and I begin my contribution in that role today by launching a new channel (=magazine section): Via Vitae, “the way of life.” In my introductory article, “What Hath Athos to Do With New Jersey?” I summarize the goal of Via Vitae as follows:

Via Vitae seeks to explore this connection between the mystical and the mundane, liturgy and public life, the kingdom of God and the common good. While I value technical discussions of public policy and believe that the work of advocating for civil laws that reflect the law of God constitutes a true vocation, I see a lacuna in our discourse when it comes to the habits necessary to enable persons to live morally in the first place, however just or unjust the law itself may be. (more…)

PovertyCure was featured in Forbes Magazine last week. Alex Chafuen, one of Acton’s founding board members, featured PovertyCure in his article on champions of innovation. He writes:

A new multifaceted initiative, called PovertyCure, provides abundant materials and resources for those who want to create lasting solutions to poverty. The program is founded on the conviction that each human person can be a source of great creativity. It highlights the incentives needed to unleash the entrepreneurial spirit that fills the developing world.

Chafuen also calls attention to PovertyCure’s focus on the big picture:

Many intellectual entrepreneurs and some of their donors and “angel investors” tend to be single-product champions. They focus on only one element in the road to reduce poverty, e.g., women rights, property titles, vaccines. This could lead to neglect of the fundamental problems that impede successful outcomes in their area of work… A fruitful dialogue among participants in PovertyCure can increase the chances that poverty or “human flourishing” programs will be structured with the proper incentives.

Instead of focusing on what we can do to solve poverty, the real question is how do people in the developing world create prosperity for their families and communities.

Learn more about PovertyCure, their network of over 180 organizations, and order the new PovertyCure DVD-Series, a 152-minute documentary-style series that challenges conventional thinking and explores the economic and theological foundations of human flourishing.

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 . . .

solar light, developing worldOver a billion people are still using kerosene as a primary fuel source, with over 1.5 million dying annually from issues related to indoor air pollution and kerosene fires. For many in the developing world, solar lamps are a new, inexpensive solution to the problem. A recent piece in The Economist hails solar lamps as the next “mobile phone” for the poor, noting that “its spread is sustainable because it is being driven by market forces, not charity.”

In an article for Christianity Today’s This is Our City project, HOPE International‘s Chris Horst interviews two business leaders from the industry who share how their purpose and direction in providing these products stems from a strong missional orientation toward work and a belief in the power of markets.

For Brian Rants, vice president of marketing for Nokero, a leading solar light company, involvement in the industry came after a fundamental transformation in his thinking:

“I am very surprised to find myself in business,” Rants says. “Business seemed to be a backup plan to being a missionary. Or being a pastor like I thought I would be. It seemed like businesspeople were just ‘extras’ in God’s story, rather than lead or even supporting actors.”

Over the past ten years, Rants worked for a number of nonprofits and churches. After going through graduate school, however, he began to discover the ways enterprise is improving the lives of the poor around the world. Rants excitedly joined Nokero, equipped with a restored vision of vocation. Through leveraging his knack for marketing, Rants fights poverty not just through his volunteerism and philanthropy, but inherently through his work in business. (more…)

If you haven’t joined us for this lecture series yet, there’s still time! The final live session for the Globalization, Poverty, and Development AU Online series, Fair Trade vs. Free Trade, has been postponed. This means that you now have a few extra days to catch up on the lectures that we’ve already held before joining us next week for Victor Claar’s lecture on Tuesday, December 18, 2012.

Also, if you’re interested in learning more about topics related to development, trade, globalization, or human flourishing, be sure to check out the recently released DVD Series from our friends at PovertyCure.

Poverty, development, and stewardship tend to be topics both of discussion and personal reflection as we are reminded to count our blessings around this time of year. If similar ideas have been on your mind, you may be interested in Globalization, Poverty, and Development, an AU Online lecture series that explores the theme of human flourishing and its relation to poverty, globalization, and the Church in the developed world. Join Mr. Brett Elder, a director at Acton Institute and creator of the NIV Stewardship Study Bible and Dr. Victor Claar, a professor of economics at Henderson State University, for online sessions scheduled for Tuesday, December 11 and Thursday, December 13 at 6:30 pm EST.

Everyone who registers for the Globalization, Poverty, and Development series (or subscribes for an All Access Membership) has access to the recordings and resources shared on the course page. This means you can still register for the course even if you won’t be able to join us for the live sessions. Visit auonline.acton.org for more information and to register.

The Goldwater Institute has released a new study showing that states with a larger share of entrepreneurs do a better job at reducing poverty than states with fewer entrepreneurs.

There is a strong connection between a state’s rate of entrepreneurship and declines in poverty. Statistical analysis of all 50 states indicates that states with a larger share of entrepreneurs had bigger declines in poverty. In fact, comparing states during the last economic boom—from 2001 to 2007—data show that for every 1 percentage point increase in the rate of entrepreneurship in a state, there is a 2 percent decline in the poverty rate.

To help reduce poverty, policymakers should focus on increasing the number of entrepreneurs in their state. Research shows that one of the most effective ways to increase entrepreneurship is by lowering tax burdens. In particular, this study shows that high tax burdens, measured as a percentage of personal income, drags down the growth rate of entrepreneurship in a state: for every 1 percentage point increase in the tax burden, there’s a corresponding 1 percentage point drop in the entrepreneurship rate. States without income taxes also have higher average rates of entrepreneurship than those with income taxes. The average number of sole proprietors as a percentage of employment in states without an income tax is 21.7. The rate for states with an income tax is 19.6.

You can access a PDF of the report here.

In 1977 a pro-life Jesse Jackson compared the pro-choice position to the case for slavery in the antebellum South:

There are those who argue that the right to privacy is of higher order than the right to life. I do not share that view. I believe that life is not private, but rather it is public and universal. If one accepts the position that life is private, and therefore you have the right to do with it as you please, one must also accept the conclusion of that logic. That was the premise of slavery. You could not protest the existence or treatment of slaves on the plantation because that was private …

When Jackson prepared to run for president as a Democrat, he dispensed with his pro-life position. I’m convinced this was a grave error, but I sympathize with Jackson’s dilemma. When I was in college, I was frustrated at having to choose between politicians who defended the rights of the unborn (usually but not always Republican) and, on the other hand, politicians who supported abortion rights but who seemed ready to do so much more to help the poor.

I eventually came to see a couple of things that resolved the dilemma for me. First, I realized that a prudential judgment to leave more charitable work in the hands of private initiative was not morally equivalent to choosing not to protect the life of the unborn—was not morally equivalent, in other words, to viewing the matter as “above my pay grade,” as President Obama put it. That is, I came to realize that the decision to neglect the government’s core role of protecting the life of some of its citizens (the unborn) was vastly worse than the decision to push for less government involvement in helping the poor.

The other thing that helped me resolve my love-the-poor/love-the-unborn dilemma—and this came into focus only as I began to connect my good intentions with a study of economic history—was this: The well-intended government poverty programs from the 1960s and ‘70s have had many unintended consequences, consequences that have done much to hurt poor communities over the long-term—whether in inner cities or in places like rural Appalachia. If you believe in the sanctity of all human life, including the life of the unborn, but you hold your nose and support pro-choice candidates who support current or even increased government levels of federal spending on welfare programs, I urge you to watch this six-minute video featuring experienced Christian poverty fighters. It’s entitled “How Not to Help the Poor.”

Watch it. Pray about what you see and hear. Then allow whatever you find insightful there to inform and guide you as you discharge your duty as a citizen of a nation dedicated to the proposition that all humans are endowed by their Creator with certain unalienable rights.

Bono, foreign aid, development, capitalismBono, lead singer of U2 and co-founder of charity-group ONE, recently offered some positive words about the role of markets in reducing global poverty and spurring economic development (HT):

The Irish singer and co-founder of ONE, a campaigning group that fights poverty and disease in Africa, said it had been “a humbling thing for me” to realize the importance of capitalism and entrepreneurialism in philanthropy, particularly as someone who “got into this as a righteous anger activist with all the cliches.”

“Job creators and innovators are just the key, and aid is just a bridge,” he told an audience of 200 leading technology entrepreneurs and investors at the F.ounders tech conference in Dublin. “We see it as startup money, investment in new countries. A humbling thing was to learn the role of commerce.”

The remarks have led to relative hype in “pro-market” circles, but I’d remind folks that these are brief statements made to a small group of innovators and entrepreneurs. ONE has plenty of wrinkles in its past, and Bono’s primary legacy in this arena consists of promoting the types of ineffective, top-down social engineering that groups like PovertyCure seek to expose. When Bono continues to claim that foreign aid, as he understands it, is still a “bridge”—even if just a bridge—it’s reasonable to assume that his orientation toward “bridge-building” has been left largely unchanged by his newfound appreciation for markets.

But although I’m not overly confident that Bono’s sudden self-awareness is enough to radically shift his aid efforts away from fostering dependency, this small admission helps illuminate one of our key obstacles to doing good in the world: overzealousness paired with overconfidence.
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