Religion & Liberty Online

The myth of aid

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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.

Jordan J. Ballor

Jordan J. Ballor (Dr. theol., University of Zurich; Ph.D., Calvin Theological Seminary) is director of research at the Center for Religion, Culture & Democracy, an initiative of the First Liberty Institute. He has previously held research positions at the Acton Institute and Vrije Universiteit Amsterdam, and has authored multiple books, including a forthcoming introduction to the public theology of Abraham Kuyper. Working with Lexham Press, he served as a general editor for the 12 volume Abraham Kuyper Collected Works in Public Theology series, and his research can be found in publications including Journal of Markets & Morality, Journal of Religion, Scottish Journal of Theology, Reformation & Renaissance Review, Journal of the History of Economic Thought, Faith & Economics, and Calvin Theological Journal. He is also associate director of the Junius Institute for Digital Reformation Research at Calvin Theological Seminary and the Henry Institute for the Study of Christianity & Politics at Calvin University.