Thursday, December 01, 2005

I know it's been a while since I have written. Time is very precious right now, and I really don't have a lot to say.

As much as I enjoy coaching basketball, this is still my last year, just too much of a sacrifice on the family.

I'm almost feeling led to a different sort of career or at least a job change. But I am convicted of that since I have things so well here at KHS, I don't know if things could ever get better than here, at least in the marketplace.

Finally, I've begun this great book by Jeffrey Sachs, "The End of Poverty." In honesty, I began the book as a way to strengthen my rebuttal to those who are lobbying for the government to forgive all debts and up the enormous amount of aid we already provide to developing countries. I have written much over the past few months on this issue, noting how I see private investments and careful consideration of the governments of the countries we provide the aid to, questioning why the country got into debt in the first place, etc. Furthermore, I have cited several cases where it is shown that the aid does not go to the people, it simply fills the pockets of the corrupt government heads.

Anyway, I digress, this book has been phenomenal, I can't put it down! A few thoughts:

- I've believed for a while that part of the problem in the Church and government and social ideas of America is that deep down we are racist, we don't believe that the lives of these people are as important as ours. Bono makes the same point in the forward to the book, "Deep down, if we really accept that their lives-African lives-are equal to ours, we would all be doing more to put the fire out. It's an uncomfortable truth."

- He discusses a lot of the problems of the World Bank and IMF, some of them I understand, some I don't. Overall, though, he seems to lean toward the fact that we can't just tell the governments that they are wrong, which I agree with, we need to ask the right questions and provide a prescription for getting them out of their problems. He says that in the past Western governments have simply told the developing nations to privatize ownership of land and business and open up their markets. True, but there's more to it. Again, I have no qualms of what he is saying. My problem is that sometimes governments are the problem. Take, for instance, North Korea. There is no reason those people should be starving and that it is a developing country, with S. Korea attached and most profitable. That is the case where the government is the problem, and there are others. Much of Africa, I'm afraid, is in the same boat, with all of their natural resources and opportunities for tourism, yet their are corrupt and despotic and their people suffer.

- He cites John Maynard Keynes with another appropriate quote, "extreme poverty no longer exists in today's rich countries, and is disappearing in most of the world's middle income countries."

- Using India as an example, he defends the outsourcing of many American countries, "Some rich-country protestors have argued that Dhaka's apparel firms should either pay far higher wage rates or be closed, but closing such factories as a result of wages forced above worker productivity would be little more than a ticket for these women back to rural misery...Not only are Indian IT workers providing valuable goods and services to US consumers, but they are also sitting at terminals with Dell computers, using Microsoft and SAP software, Cisco routers, and dozens of other empowering pieces of technology importer from developing countries."

- the rural misery he refers to it extraordinary poverty, illerteracy and no education, chronic hunger and domineering, patriarchal society

- He is an advocator of microfinance, so am I, this past summer in Kenya I spent a day with a pastor in the Hrumba slums who offers small loans to people in his ministry, as low as Ksh500 (USD $.75), which allows them to start a business and change their lives. AMAZING!

- "Let me dispose of one idea right from the start. Many people assume that the rich have gotten rich because the poor have gotten poor...This interpretation of events would be plausible if gross world product had remained roughly constant, with a rising share going to the powerful
regions and a declining share going to the poorer regions...The key fact in modern times is not the transfer of income from one region to another, by force or otherwise, but rather the overall increase in world income, but at a different rate in different regions."
AMEN!

- What causes a country to increase or decrease economic output? According to Sachs, saving or lack of saving, trade or lack of trade, tech advancement or reversal, resource boom or natural resource decline, adverse productivity shock (flood, heat wave, pest problem, etc.) or
population growth (which in rural areas means more family members sharing less land which cannot meet their needs)

- One question still remains, what is the duty of richer countries to help (or bail out) developing countries? Is it our obligation? Of course, as Christians, I believe we are obligated to help a brother in need, but this is the government, not the Kingdom, what should our part be?

4 comments:

Anonymous said...

hey jason,
Did you read the entire Bono book? just curious. You're not hacked at me because of my news entry are you? I doubted you would be!
gs

JPN said...

I did not read the Bono book (which one are you referring to?), I hate to say this but I'm not a big fan of some of Bono's solutions, while I totally applaud and respect his passion in getting this issue into the mainstream.

No worries on the news entry, I found it kind of funny, I hope to see you tomorrow at 2 at Tom's.

edluv said...

earlier in the year, i was dropping a friend @ the airport. long drive to metropolitan airport, and i got to listen to a bunch of npr and that sort o radio. anyhow, this was around the time of the economic summits in scotland.

they had 2 authors, from the same country in central africa offer solutions. not surprisingly, they were opposites. so, they're just as torn as what the solution is. is it loans? debt cancellations? business stimulation? and that last one was a controversy too, because do they just want to be an outsourcing location, providing a service and making american companies money or do they want to develop their own industries.

such a huge issue. it makes you want to do nothing, but yet something.

JPN said...

You ask a good question, one that is constantly on my mind. What is the solution, loans? debt relief? business stimulation? etc. What I have found of late, mostly from Sachs, is that it's a combination of all of them, and not the same for each country. That's what I so appreciate in his writing and conclusions, he is balanced. I'm not in favor of simply going to the G8 and lobbying for total debt cancellation and increase in aid. There are so many countries that will simply misuse those funds, placing the money in the hands of the despotic dictators (i.e. Mugabe) and none will get to the people. Sachs calls for what he refers to as clinical economics, much like clinical medicine, where a patient will come to a doctor and after a check-up, receive a prescription for what ails them. He discusses that each country's economy, history, government, geopolitical status, etc. will determine the course of action. It makes sense! I would just add that private investment in that country needs to happen on a micro-scale, getting involved at the grass-roots level through education, microfinance, whatever is needed in the community that for a few dollars a month we can provide. It doesn't seem like a lot, but when a few hundred people get together and provide a few dollars each, entire villages/communities, districts can be spared from extreme poverty. I really believe it can happen, and am participating in such a program right now in Kenya, although we have a lot of work to do, there are over 300 families now with basic needs being met and many more on the horizon. They step from extreme to moderate poverty means they don't have to worry about their next meal or diseases (although that is always a worry in developing countries) and can focus on issues to help them take the next step up the latter.