Some social and political analysts regard private help as a bad thing. They speak of the “problem” of food banks, and of America’s “miserly” support for poorer countries. In fact food banks are a solution, not a problem. Private generosity has leapt into the breach to help tide people over temporary problems. The great majority of food bank users do so only once.
Similarly with US aid to poorer countries. The United States is regularly berated for being very low on the list of aid givers, but this only applies to government-to-government aid. Once the private contributions made by Americans to people in poorer countries are counted in, the US rises to the top. In fact US private help is better spent, usually going to people to spend in towns and villages in the local economy, rather than on gold palaces and white elephant steel mills in the desert.
Part of this mismatch arises from the fact that these analysts seem to wear spectacles that admit only light of a political wavelength and ignore private generosity. The latest victim of this myopia is the “bank of mom and dad.” It is assumed to be a bad thing that young people should turn to mom and dad to help out with deposits and mortgages.
“Richard”, “Is Private Help a Bad Thing? – Political Spectacles of the Left”, Continental Telegraph, 2018-04-02.
July 15, 2020
QotD: State and private charity
February 7, 2020
QotD: The negative economic and human value of foreign aid
I’d like nothing better than to be proven wrong, but I’m gloomily confident that my prediction of failure will be verified. History and sound economics both warn that foreign aid is far more likely to harm than to help economies.
During the past four decades, Western governments have lavished on Africa nearly a half-trillion dollars in aid. But to no good effect. Everyone agrees that Africans remain desperately poor.
Academic studies confirm aid’s ineffectiveness. In his celebrated 2001 book, The Elusive Quest for Growth, former World Bank economist William Easterly carefully reviews aid’s history and concludes that it is one of abject failure.
Indeed, many studies find that aid harms economies. For example, University of Regina economist Tomi Ovaska, writing in the Cato Journal, finds that “a 1 percent increase in aid as a percent of GDP (gross domestic product) decreased annual real GDP per capita growth by 3.65 percent.”
The reasons for this dismal record should be plain to anyone with a rudimentary understanding of economics. Failure of economies to develop is not because of lack of resources. Instead, it’s because of overbearing and corrupt governments, as well as to the dysfunctional social and cultural institutions that keep such governments in power and that are themselves fostered by such governments.
As long as a country is cursed by a malignant government and dysfunctional institutions, no amount of foreign aid will help it.
Don Boudreaux, “Faulty Band-Aid”, Pittsburgh Tribune-Review, 2005-06-18.
October 4, 2019
Foreign aid now an issue in the federal election
The Milk Dud actually said something worthwhile on the campaign trail the other day:
Andrew Scheer’s announcement that a Conservative government would cut foreign aid by 25% has been met with the usual wailing and gnashing of teeth by the out-of-touch elites.
Yet, it’s a policy that all Canadians can support because it will benefit all of us.
As I’ve said many times, the Canadian government is called “Canadian” for a reason.
It exists to serve the Canadian People, not to serve foreign, often corrupt, countries.
When we have such serious problems here at home, including a growing opioid epidemic, veterans who are homeless and struggling, and many Indigenous communities that lack access to good housing and even clean drinking water, then it’s obvious to everyone that we need to focus our resources here at home.
Personally, I would like to see all foreign aid (aside from disaster relief) eliminated and redirected towards Canadian citizens.
Still, the Conservative proposal has (along with earlier calls by the PPC to end all foreign aid) finally shifted the conversation around foreign aid, and will help wake up many Canadians to the reality that a large amount of our tax dollars are given away to foreign countries while Canadians here at home are suffering.
It’s appalling that the Canadian government sends money to foreign regimes (where the money is often appropriated by corrupt leaders and used for things very different than aiding the poor and destitute) while First Nations communities here in Canada still lack basic drinking water and sanitation facilities.
June 22, 2019
The African Continental Free Trade Area (AfCFTA)
Alexander Hammond explains why a free trade deal among many African nations is good news for the United States and other non-African nations:
The poorest continent in the world is about to lend a hand to the United States. Last week, Africa implemented the world’s largest free-trade area, and that’s great news for American foreign policy. Back in December, U.S. National Security Advisor John Bolton unveiled a plan for the Trump administration’s titled the “Africa Strategy.”
The plan is simple — the United States will give less aid to Africa, instead prioritizing enhancing America’s “economic ties with the region.” Now that many African nations have unified under a single market, trading with the continent will become far easier — and a trade deal between the United States and Africa would help out everyone involved.
Streamlining Trade
The African Continental Free Trade Area (AfCFTA) trade deal officially came into force on May 30, a month after it reached the twenty-two-nation threshold needed to do so. Now, tariffs on 90 percent of the goods traded among AfCFTA member states will be removed — a move that, according to the UN, will boost intra-African trade by 52 percent in only a few years.
Given the United States’ new plans for the continent, the AfCFTA’s member states aren’t the only economies that will reap the benefits of an African single market.
A key component of the Trump administration’s Africa Strategy is to advance “U.S. trade and commercial ties” with Africa by creating “modern comprehensive trade agreements.” A single African market will be a far simpler trade partner for America. Now, only one set of trade deals will need to be negotiated with the AfCFTA — as opposed to fifty-five intricately-crafted trade deals with each small African economy. The U.S. Trade Representative has even released a report noting how time-consuming and costly it is to negotiate trade deals with each African nation. Because trade deals are long and expensive processes, creating a solitary trade deal with the AfCFTA will keep more money in the U.S. government’s purse.
March 25, 2019
QotD: Village life
I hate rumor. Perhaps I hate it more because I grew up in a village.
The people who imagine villages are idyllic and every person in it loves the other like a brother or sister, have no knowledge of people — or reality. Sure, in many villages in isolated places, most of the people there are related to some degree. This was not true where I grew up, because the village was already in the process of exploding into a large-city suburb. It wasn’t visible to me as a child, because it was so slow, and newcomers still took years to integrate, but it it had been going on for so long that the appellation of “aunt” given to any grown woman by any child was just courtesy, not truth. Still, had we been all related, people who imagine that makes for harmonious living must have been only children and the children of only children.
No, never mind, I’m being silly. Those people are actually enormous racists and oikophobes. Hating their own home, they imbue places far away, particularly those inhabited by people who tan more than they do, with the qualities of heaven. They also in the process make those people-who-tan (or as I always think when I’m the object of this type of thought, and yes, I am, it’s what enables them to think themselves my intellectual superiors a-priori “Little brown peoples”) less than human. They (we) are not people with our own agency, and all the virtues and vices of mankind, but sort of little pets, perfect, well behaved and needing both the protection of our masters, the pale enlightened, and their pat on the head for how good we are. (Most of the left’s ideas on “defeating colonialism” envision themselves as benevolent colonial masters. In fact, the colonialism of Marxist ideas in Africa is what has made it hell on Earth, far worse than any colonial overseers could do. By turning their best and brightest into Marxist apostles at our “finest universities” they get to send these ideas back to Africa. There was some idea they would flourish there among people unsullied by greed and the wish to succeed individually (yes, it’s that racism again. It is inherent in the left’s contrived “celebration” of black people, Kwanza, which is really a celebration of socialist principles. And no, is in no way African. It was invented in the US. For one there isn’t such a thing as an “African” holiday. The continent is as or more varied than Europe (because transport was near impossible for most of its existence, tribes and villages were very isolated indeed.)) It didn’t. Instead it has made Africa worse than ever before. And this was done by turning its favorite sons, its brightest sparks into poison pills. Colonialist Marxism is appalling and responsible for the deaths of millions. As is Marxism everywhere.)
Sarah Hoyt, “Painted All In Tongues”, According to Hoyt, 2017-03-20.
September 21, 2018
QotD: “Let us abandon Capitalism, and go back to Adam Smith”
An old friend of mine, among my bosses in late ’seventies Bangkok — Antoine van Agtmael, genuinely admired and loved — was the genius who invented the expression “emerging markets,” to replace that downer, “developing countries.” (Which in turn had been the euphemism for “backward countries.”) It was by such creative hocus-pocus that attitudes towards “Third World” investment were dramatically changed, in the era of Thatcher and Reagan. A man of indomitably good intentions; charitable, selfless, and a brilliant merchant banker; a little leftish in his social and cultural outlook — I give Antoine’s phrase as an example of the sort of poetry that changes the world. I took pride, once, in editing a book of his astute investment “case studies.”
Thirty-six years have passed, since in my youth and naiveté I was draughting a book of my own on what is still called “development economics.” (I was a business journalist in Asia then, who did a little teaching on the side.) It seemed to me that “free enterprise” should be encouraged; that “government intervention” should be discouraged; but that the aesthetic, moral, and spiritual order in one ancient “developing country” after another was being undermined by the success, as also by the frequent failures, not only of foreign but of domestic investors. This bugged me because, like my father before me (who had worked and taught westernizing subjects in this same Third World), my well-intended efforts on behalf of “progress” were ruining everything they touched; everything I loved.
My attempt to explain this, if only to myself, ended in abject failure to answer my central question: “Why does capitalist success make the world ugly and its people sad?”
Only now do I begin to glimpse an answer; and that part of it could be expressed in the imperative, “Let us abandon Capitalism, and go back to Adam Smith.”
David Warren, “In defence of economic backwardness”, Essays in Idleness, 2016-12-01.
June 30, 2018
Wealthy virtue-signalling hurts the poor
At Catellaxy Files, Rafe Champion discusses some of the points raised by Matt Ridley in his recent book:
Essentially, the poor pay for the virtue-signalling of the rich. Dr Matt Ridley opens chapter 14 of Climate Science: The Facts with some blunt claims.
Here is a simple fact about the world today. Climate change is doing more good than harm. Here is another fact. Climate change policy is doing more harm than good.
On top of that he points out that the poor are carrying the cost of today’s climate policy. That is something for the ALP [Australian Labour Party] and the social justice warriors to think about.
This should remind people of another great postwar example of destructive virtue-signalling – massive foreign aid to the developing nations aka the Third World. That did more harm than good for the people of the Third World, apart from the crony criminals in power. The great Lord Peter Bauer was onto that very smartly, starting in the 1940s and his findings have been consolidated lately, notably by William Easterly [in] The White Man’s Burden: Why the west’s efforts to aid the rest have done so much ill and so little good. There are exceptions to the rule such as hands-on medical care and private education.
Ridley mentions in passing some of the cases where apparently smart people have made very bad calls, starting with a prominent and wealthy leftwinger who he debated on TV. Faced with the charge that climate policy was hurting the poor he replied “But what about my grandchildren?”. As though the future wellbeing of the presumably affluent and privileged grandchildren of the talking head might be threatened by policies that help the poor who are with us at present. Ridley also cited a son of Charles Darwin who thought that eugenic breeding programs were essential to save civilization and Paul Ehrlich who in 1972 predicted that millions would die due to over-population (prompting the one-child policy in China).
August 15, 2017
The Civil Service on Helping Foreign Nations
Published on 23 Nov 2010
Taken from Yes, Prime Minister
September 24, 2015
A case study – Nik-Mart in Subsistia
Don Boudreaux looks at the different effects of international aid and capitalist exploitation in a desperately poor, far-away country:
The far-away land of Subsistia is inhabited by people who are desperately poor, not only relative to the typical person elsewhere on the globe but also in absolute terms. For decades well-meaning, well-educated, and well-funded people from the United States and other wealthy countries have visited Subsistia to help raise Subsistians out of poverty.
Alas, while these efforts by governments, NGOs, and churches have been many and munificent, all ordinary Subsistians continue to live in deep poverty – that is, until recently. A few short years ago a large U.S. corporation, Nik-Mart, set up factories in Subsistia. The wages that Nik-Mart pays to its Subsistian workers, while much higher than the average wage in Subsistia, are only a tiny fraction of the wages that Nik-Mart pays to its production-line employees in America.
Nik-Mart sells the goods produced in its Subsistian factories all around the world. One result of Nik-Mart’s operations in Subsistia is that the real prices that poor Americans and Europeans pay for shoes, clothing, and home furnishings have fallen significantly.
Nik-Mart is consistently one of the world’s most profitable corporations. It is also one of the world’s most hated.
When word recently leaked out of Nik-Mart’s record sales revenues and of the healthy rate of return on Nik-Mart’s assets, protests erupted in all major capitals of the developed world. Washington, Ottawa, Santiago, London, Amsterdam, Stockholm, Paris, Berlin, Madrid, Rome, Prague, Moscow, Tokyo, Pretoria, Canberra – these and other cities were swarmed by protestors demanding “social justice” and criticizing Nik-Mart for exploiting workers. “Nik-Mart’s profits are in the billions,” screamed U.S. Sen. Elsbeth Walter, who gave a rousing speech to protestors on the Washington Mall, “and yet it exploits poor workers in Subsistia while it off-shores jobs from America, hurting poor Americans! Have you no shame, Nik-Mart? Have! You! No! Shame?!!” Sen. Walter rhetorically asked, her index finger pointing accusingly at an imaginary Nik-Mart executive presumably hovering, phantasmically yet bloatedly, before her.
The Sunday talking-head shows were filled with heads talking of little else. “It’s really unconscionable,” said Harmon Nicholson, a famous progressive columnist, “that Nik-Mart takes advantage of the freedom that this country gives it to produce the things it sells in America outside of America. It’s no wonder our jobs picture is so weak and that American wages have stagnated.”
Sen. Lawrence Greenham, a Republican from the south, chimed in: “I don’t normally agree with Harmon, but he’s right on this. American plutocrats are gettin’ richer an’ richer off the backs of America’s poor. It’s gotta stop.”
October 14, 2014
Reason.tv – 3 Reasons the US MILITARY Should NOT Fight Ebola
Published on 14 Oct 2014
President Obama is sending thousands of U.S. troops to West Africa to fight the deadly Ebola virus. Their mission will be to construct treatment centers and provide medical training to health-care workers in the local communities.
But is it really a good idea to send soldiers to provide this sort of aid?
Here are 3 reasons why militarizing humanitarian aid is a very bad idea
August 25, 2013
Another (pointless) round of Mideast peace talks
Strategy Page on the upcoming “negotiations” over the Israeli-Palestinian situation:
Why are the Palestinians participating in yet another round of American- sponsored peace talks with Israel? It’s mostly about money. This round was forced on the Israelis and Palestinians by the U.S., which threatened to withhold aid (1.3 billion a year to Israel about half as much to the Palestinians) if the two did not at least go through the motions. Many knowledgeable observers see another round of talks as pointless. Arabs and Palestinians have not changed their “kill all Jews” attitudes towards Israel and the Israelis have still not agreed to just disappear. Because of the continued Arab intransigence over Israel, opinion polls show that most Israelis are opposed to any peace deal with the Palestinians that involves withdrawing Jews from the West Bank or Jerusalem and believe the peace talks will fail.
The Americans want the talks for domestic political reasons. The Israelis don’t mind having another opportunity to force the Palestinians to admit all their hypocrisy and anti-Semitism. The Palestinians don’t care about that because they are in big trouble. The current Fatah leadership (Hamas, which runs Gaza, is not participating) is in a desperate situation. Fatah is committed to pushing for “statehood” in the UN, but has been told by the U.S. that such a move will mean withdrawal of $600 million a year in American aid. Israel said it will withhold $100 million a year in customs taxes it collects for Fatah. Backing away from the UN statehood effort would be very embarrassing. The “peace talks” provide a credible excuse to back off.
Given the heat Fatah has been taking from Palestinians over more than a decade of increasing corruption and poverty, losing $700 million a year in aid would put Fatah out of power and probably out of business. So Fatah will go through the motions to calm down the Americans and Israelis while a new strategy is developed and sold to Palestinians. The current one got going in 2000, when Fatah turned down the best peace deal it was probably ever going to get (and would probably accept today) because the Palestinian radicals threatened civil war if Fatah took the Israeli offer. In retrospect that was a hollow threat, but at the time it seemed a good idea to turn down the peace offer and start a terrorist campaign against Israel. That failed, and was largely defeated by 2005. But it all made the Palestinian radicals stronger and too many Palestinians unemployed, broke and angry. It also allowed Islamic radical group Hamas to take control of Gaza, where 40 percent of Palestinians lived. To make matters worse the great Palestinian patron Saddam Hussein lost power, and his life, cutting off another source of cash. Palestinian children are still taught to honor and praise Saddam, which has become something of a media liability. Other Arab allies have become less supportive and more insistent that the Palestinians make peace with Israel and stop being professional victims and career beggars.
January 15, 2013
Don Cherry: Canadian … icon?
In an article designed to stir up controversy over aid to Haiti, Kathy Shaidle provides a neat thumbnail portrait of Don Cherry:
The Canadian Broadcasting Corporation (CBC) says taxpayers must keep funding this great unwatched billion-dollar behemoth because the network has a never-hear-the-end-of-it “mandate” to “reflect Canadian values.”
Which “the Corpse” does indeed, but for just about nine minutes every Saturday night, and only during hockey season, and by accident rather than design.
That’s when Don Cherry’s red light goes on and the former Boston Bruins coach begins bellowing about the fruitcakes and foreigners destroying his beloved game.
He’s old, white, loud, and uneducated. He’s bigoted, mawkishly patriotic, and he dresses like an Edwardian time traveler stuck in 1970s Detroit trying to pass himself off as a pimp — and Don Cherry’s Coach’s Corner has also been the CBC’s highest rated… thing for generations. It’s not even a show, you see, just a segment — possibly the only “intermission” in history that prompts people to run to their seats instead of away from them.
By lucky chance, “shhhh!” is the same “word” in both official languages, and that’s the sound heard in sports bars and rec rooms across Quebec and the ROC (Rest of Canada) as the show’s familiar intro gallops into millions of ears.
To the countless Canucks who can’t stand him, however, Cherry is a perpetual outrage machine. The coach doesn’t make “Kinsley gaffes,” either — those “controversial” statements which accidentally reveal some embarrassing truth. Cherry tells embarrassing truths on purpose. His only “crime” is saying things lots of his countrymen agree with but aren’t allowed to say — or even let themselves think — anymore.
November 8, 2012
The Swiss children of Malthus
In sp!ked, Patrick Hayes points out the odd way that Malthusians and xenophobic far-right political groups converge:
For greens, the ends will always justify the means when it comes to saving the planet. In the UK, they have opportunistically latched themselves on to left-wing movements to try to gain purchase with a broader public. But, as Swiss campaign group Ecology and Population (EcoPop) has demonstrated, in an attempt to pursue their Malthusian goals, greens can be equally happy tapping into the anti-immigrant rhetoric of the far right.
In a stunt last week, members of EcoPop carried dozens of cardboard boxes into the Swiss chancellery which contained 120,700 certified signatures calling for immigration into Switzerland to be capped at 0.2 per cent of the resident population. Under Swiss law, this means that a referendum will now be held on the proposal. Such a move trumps even the efforts of the far-right Swiss People’s Party, which has long lobbied for greater immigration controls.
But these greens aren’t mobilising for an immigration clampdown with banners claiming ‘keep the darkies out’ as right-wing groups have done in the past. Nor are they using dodgy, discredited scientific arguments to justify racial superiority, wielding books like Madison Grant’s The Passing of The Great Race for evidence.
No, instead EcoPop delivers its demands for immigration curbs carrying a banner asking: ‘How many people can the Earth tolerate?’ The group’s members use the (equally dodgy and discredited) Malthusian science of population growth and babble on about our ‘finite planet’. And they have reportedly been strongly influenced by the theories of US Malthusian Paul Ehrlich, author of The Population Bomb.
EcoPop bends over backwards to claim that it is not singling out particular races when advocating its policies. According to the BBC, it claims to be ‘opposed to all forms of xenophobia and racism’. But, the group says, ‘Switzerland must limit immigration to avoid urbanisation and to preserve agricultural land’.
You could almost believe that EcoPop is just a bunch of backward-thinking NIMBYish Luddites wanting to stop a flood of immigrants from destroying what it sees as a rural idyll — until you see what the group has tacked on to its proposed referendum for immigration caps. EcoPop slipped an additional clause into the referendum calling for a tenth of all foreign aid to be used ‘for birth-control measures abroad’. (It’s highly questionable how many people would have signed a petition for that alone.)
So it’s not enough to keep foreigners out of Switzerland, then, it’s also necessary to keep them from breeding too much in their own countries as well. And the fact that most of the aid will go towards stopping poor black and brown families from breeding too much suggests that if they’re not intentionally being racist, then EcoPop’s members should really think very hard about how they come across.
September 15, 2012
July 19, 2012
The messy internal state of North Korea
Strategy Page on internal affairs of North Korea in the early stage of Kim Jong Un’s leadership:
China remains the foreign power with the most influence over North Korea, but that isn’t saying much. When given unwelcome advice from China, which represents nearly 80 percent of foreign trade and the only source of free food and fuel aid, North Korea still tends to adopt a suicidal attitude. For the northern leadership, it’s “death before dishonor” and that means Chinese demands, even backed by threats of aid cuts, are ignored. For this reason, China is believed involved in the current reorganization of the senior North Korean leadership. China has long developed friends and relationships among the North Korean elite. As corruption became more of a factor in the last decade, China knew how to cope. China is awash in corruption, and Chinese leaders have learned how to use it (even as they struggle to lose it). In effect, China’s decade-long effort to overwhelm the “old school” faction in North Korea appears to have succeeded. But the “old school” crowd are still numerous, scared and armed. This could get messy. This does not bother China, which has plenty of experience with messy.
In the last month or so North Korea’s new leader (Kim Jong Un) has removed hundreds of military and government officials and promptly installed younger replacements. Un has made it clear, in public announcements, that it’s time for a new generation. Many of the dismissed older officials were seemingly loyal to and supportive of Un, so this appears to be more a desire to shake up the leadership, than to purge opponents. Kim Jong Un isn’t doing this by himself, as he has a small group of advisors he relies on a lot. This includes his uncle, Jang Sung Taek, who is married to Kim Jong Ils sister. Jang has long been a powerful government official, and is believed to be quite wealthy. That’s because Jang has a lot to say about how North Korea earns (by legal, or illegal means) foreign currency. In a country so extremely poor, the man who controls the most money has a lot of power. Jang, for example earlier this year ordered house searches of families believed to be hoarding foreign currency (Chinese or American), rather than, as the law demands, putting it in the bank. People do not want to put their foreign currency in the bank because the government pays you less for it (in North Korean currency) than the black market money changers (who give fair market value). Jang understands how the North Korean economy really works, and is trying to increase government control over the “new economy.” Yang and his wife have a lot more knowledge of, and experience with, the North Korea government and economy than their nephew Kim Jong Un and, for the moment, they have his ear, and trust.
[. . .]
The food situation in the north is getting worse, with food prices (in the growing number of free markets) at record levels. Government distributions of food are declining. Worse, the government is printing more money, increasing inflation (because there’s now more money chasing the same amount of food.)
North Korean censors finally caught on to the fact that young North Koreans had been taking South Korean or Western popular songs, adding new lyrics that have a double (anti-government) meaning in the north, and spreading them widely. North Korea doesn’t have much Internet access, but there are memory sticks, CDs and floppy disks. Stuff gets around, and now the police have been ordered to crack down on a list of over 500 subversive songs. The cops love this sort of thing, as it creates plenty of new bribery opportunities. That’s because many of those involved in this music conspiracy are children of ruling families, and can afford a fine (rather than anger their parents by getting arrested.)
Update: In the Guardian, Paul Watson says we’re all sheep and ignoring the horrific crimes of South Korea and vilifying the peace-loving, friendly, warm-hearted North Koreans:
Reunification and conciliation are usually portrayed as South Korean concepts, while North Korea is seen as a closed state, hostile to such talk on “idealistic grounds” – a view perpetuated by media outlets’ lack of interest in all recent North Korean initiatives. In fact it is almost impossible to find any piece of positive European journalism relating to the Democratic People’s Republic of Korea (DPRK). The days of cold war pantomime journalism and great ideological battles might be over, but North Korea remains an area in which journalists have free licence for sensationalism and partiality.
The lack of western sources in North Korea has allowed the media to conjure up fantastic stories that enthrall readers but aren’t grounded in hard fact. No attempt is made to see both sides of the Korean conflict: it is much easier and more palatable to a western audience to pigeonhole the DPRK as a dangerous maverick state ruled by a capricious dictator and South Korea as its long-suffering, patient neighbour.
These roles are dusted off whenever there are flare-ups, such as the Yeonpyeong Island incident of 2010 when North Korea was condemned for firing shots at South Korean military and civilians in an “unprovoked attack”. It was not widely reported that South Korea had been test firing artillery in a patch of ocean that North Korea claims ownership of or that North Korea’s repeated demands for an explanation were ignored. While military intervention may not have been wise, it was far from the random act of hostility it was made out to be.