by David Zetland member of s. V. Ciriacy-Wantrup economics of natural resources and economic policy, UC Berkeley
While the Bill and to other were mess of the The New Yorker piece on the development of China, they have overlooked another piece in the same issue which can be even more important (!) that the debates on the growth of China.
"Alms Dealers" [required sub] Philip Gourevitch examines Linda Polman book "" the caravan of the crisis: that is not with humanitarian aid? ""The Central thesis of this book (as presented in the magazine) is that people who provide assistance are addicted to hungry children and horror stories, and this dependence is powered by those who enjoy using, whether they are local leaders, militias commit atrocities or even victims who do not wear their prosthetic legs because they can get more attention with their stem.
This thesis has always been meaning to me (see this this and this in my day-job, blog aguanomics) .Polman simply puts data (several anecdotes) theory.
Here is the simple version: If people give you money for A while you don't do anything to stop a. better yet, make A larger so you get more money.
Here is the refined version: theory of Bruce Yandle holds Baptists and traffickers that traffickers cheer quietly Baptists efforts to close the liquor stores the day of the Lord. Closed stores means less competition for dealers to sell alcohol, uh, boots.
Although the Baptists and traffickers cannot be explicitly cooperating, they seek the same thing (a legal alcohol sales ban) for totally opposite reasons.Baptists are led investigations leading to think the ban expires drinking alcohol .the traders know that the ban is good for business and profits.
Now, suppose reformulate for help: "activists Baptists are delusional to believe the ban aidmoney will end poverty of drinking alcohol."traffickers warlords and corrupt politicians know that prohibition of aid money is good for business and profits.?
Who suffers? pay more for their unlawful alcohol drinkers are no better loties.Les taxpayers pay more in taxes, and the aid recipients are not better off.
What is interesting in the book of the Polman is how traffickers warlords and crooked politicians are actively making worse the poor, to raise their profile and increase the flow of money to "do something!" spilled by Angelina-Bono-Geldof-Sachs pipeline.
I covered a number of these issues, focusing on the discretion which intermediaries (workers humanitarian and bankers) have to choose the measures to be taken and what effort to fulfill my article of public choice "Save pauvres.Certains bankers stems" [free access], but I wasn't quite cynical endogenize polman that the people in the area of assistance is worsening actively pauvreté.Demande things for the beneficiaries of aid, to give more money, and employment security is dangerous and damming, but it is fair game for testing evidence for or against.
Even if we give the World Bank, USAID and NGOs a free pass as pure Baptists, then we must still worry cynical war lords and politicians who cut weapons and their people to stand at the top of the hour of the press and of starvation as recipients of well-meaning donors who want to do something about it.
Photo credits (from top to bottom): World Bank, USAID, UN
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