Is it possible that foreign aid can actually do more harm than good?

A really good read by Stuart Schneiderman.

Excerpt:

…if you send boatloads of food to feed the world’s hungry, you are going to feel very good about yourself, but you are also going to destroy local agriculture.

No one can compete with “free.”

Gratifying your philanthropic urges can easily create a cycle of dependence, one that saps initiative, self-respect, and demeans individuals.

Keep in mind, no matter who begins these foundations, and no matter whose name is on the door, ultimately they will be run by people who are in the business of philanthropy, and that means, people who have made it their life’s work.

These people are not champions of the free market; they are not especially interested in building businesses. They are interested in assuaging guilt, their own or someone else’s, by giving away money.

These charities will be promoting liberal and progressive causes; they will become advocacy organizations. They will not be promoting capitalism.

It is a good thing to fund education. It makes you feel good to fund education. Except that the problem with education has very little to do with money.

Education is a system that has been run by liberals and progressives, with precious little interference from moderates and conservatives. More and more it has devoted itself to inculcating the values associated with political correctness and self-esteemism, rather than teaching children.

All the world’s money is not going to change that.

It’s one thing to give money to the poor and the indigent. Religions have always done as much. It’s quite another to create a special class of people who can promote their own ideology under cover of philanthropy.

When I give to charity, it is usually for specific speakers and conferences that my friends organize at universities and churches. I don’t believe in giving money to organizations like United Way and Amnesty International. I do not think it is a good idea to give money to left wing groups who view the poor as victims instead of as potential allies. I like foreign investments, free trade and micro loan programs, though.

3 thoughts on “Is it possible that foreign aid can actually do more harm than good?”

  1. Zambia used to have, apparently, a viable garment industry, until the West started dumping its used clothing on Africa. Giving Africans clothing does nothing to demonstrate how to set up a business, how to make a profit, how to live a responsible life; it just sets the example of getting something for nothing, and it reinforces a culture of dependency.

    So, aid can definitely do more harm than good.

    Poverty does not begin in the wallet; it begins in the mind; it is the result of a mindset. The West has built a wonderfully productive society, line-upon-line, precept-upon-precept — that is what we need to impart to other cultures and societies, not hand-outs.

    I put it this way. The Make Poverty History signs currently directed at the West? The signs need to be turned around so they face the poor countries. It is they who need to make their poverty history, not us.

    I will be interested in hear what Mary thinks about this.

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  2. Good point, Wintery. Even on a personal level, it is better to support organizations that seek to uplift people with a long-term strategy. I have friends who work for a Christian organization that ministers to the homeless in our city. They cater to people’s immediate needs for food, shelter and clothing, but then they take it further to effect lasting change in people’s lives, by means of practical training, helping them find jobs, helping them where there are issues of addiction, and providing Bible study and discipleship. They challenge people once they are on their feet, so that they are able to become self-sufficient. It’s a difficult task and sometimes frustrating, but the difference that has been made in many people’s lives is amazing.

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  3. Hi Richard! Well, I won’t claim to have all the answers to the problem of poverty. :-P But there are things that can be done by wealthier western nations to help poor nations, like promoting economic systems which work. So one should promote capitalism. But one needs to make sure that the distinction between capitalism and materialistic avarice is properly understood. In my opinion, the lack of conceptual distinction between these two is what makes many poor nations susceptible to the promises of communism. Often, when advice comes from the West, it is seen as condescending. And yet, the West borrows what is good from other cultures, so it real is a case of learning from each other and using what works. Take Japanese business methodologies such as Toyota’s JIT workflow, or Kanban project management, for example. And another key is to look at the underlying causes of poverty and address those. Poverty is a symptom of other societal problems which need sorting out. A big part of what makes the West successful is the influence of Christianity, including the protestant work ethic.

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