Showing posts with label Kling. Show all posts
Showing posts with label Kling. Show all posts

Saturday, 12 May 2007

If we really want to solve poverty, first we have to stop trying

It is the weekend, a time for reading books, watching a three day old episode of Question Time and not spending too long in front of the PC.

So instead, let me guide you to an excellent article by Arnold Kling on why the best means to solve poverty is "decentralised entrepreneurial activity under capitalism", rather than misguided centrally planned wonder-cures.

In the process, he (or rather, Robert Rector, whom he quotes) points out the fallacy of our oft-cited figures on poverty in the Western world, where (in America, where British commentators like to say that poverty is rife) "Forty-three percent of all poor households actually own their own homes... Eighty two percent of poor households have air conditioning... Nearly three-quarters of poor households own a car; 30 percent own two or more cars..." etc.
Kling's final point is especially pertinent. He advises that we need to shift our attention from a focus on intentions (how nice and worthy people are, and how much they want to help poor people), to a focus on outcomes (what effective policies or practices are, and how much they actually help poor people).

In the end, we need to spend less money dispatching 11,000 donor missions to 31 aid-receiving countries each year, and more money buying stuff we want to own, much of which (and, increasingly, more of which) is made in developing countries. If we try less hard, we might do more good.