Home sweet Havana

by Marshall on May 11, 2011

Dear faithful readers, please forgive the brief hiatus from blogging…I bring you a peace offering – economic food for thought!

Owning a home isn’t just an American dream, its a common goal for people around the world. Owning a home is generally a good investment (not always), as it often brings dignity, security, and stability to a family. I’ve spoken with many Esperanza and HOPE loan associates who say one of their ultimate goals is to own a home where all of their children can fit and live comfortably.

But what does it mean to own a home? What does it mean to “own” anything? The bible, of course, teaches that we don’t own anything…we just administer what God has given to us. But what about in a legal sense?

In Cuba, 85% of the population owns their homes. Yet if you live in Cuba, you don’t fully “own” your home – because you don’t have the right to sell it. The Economist reports:

The only legal way to move in Cuba is by swapping residences—a slow, bureaucratic and often corrupt process known as the permuta(“exchange”), which requires finding two roughly similar properties and getting state approval. To avoid this hassle, some Cubans prefer to marry the owner of a property, transfer the deed, and divorce.

The goal of this policy is to limit the gap between rich and poor, towards a world without class differences. No more rich people amassing property at the expense of the poor. To be sure, we’d all prefer more equality. But crippling private property rights destroys economic incentives for gifted builders to construct homes to sell to anyone, rich or poor:

Because there is no incentive to build new homes, Cuba suffers from a dire housing shortage. Many buildings have been repeatedly subdivided. In some families three generations share one bedroom.

This isn’t just an isolated case. Peruvian economist Hernando de Soto (no, not the conquistador) was made famous for linking poverty in Latin America to a lack of full private property rights provided under the legal system.

“In most developing countries, the vast majority of people live outside the legal economy…Because they lack property rights, they cannot access capital or credit, so they cannot grow their businesses. Without a legal framework, the market system fails.” (link)

Rule of law and property rights. Boring stuff but it constitutes the architecture of economic growth. Get it right and you’ll have the privilege of being able take it for granted. Get it wrong, and your left short on houses, food, and opportunity.

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Inspiration without Integrity

by Marshall on April 19, 2011

It saddens me to hear the reports that Greg Mortensen, founder of Central Asian Institute (CAI) and author of the acclaimed book Three Cups of Tea and Stones Into Schools isn’t the humanitarian hero we thought him to be.

…last Sunday’s 60 Minutes broadcast and a thorough exposé by Jon Krakauer provide convincing evidence for some serious allegations:

  • That some of the most important, inspiring stories in Mortenson’s nonfiction books—stories that provide the foundation for his whole mission—fall somewhere on the spectrum between greatly exaggerated and completely invented.
  • That Mortenson’s charity, the Central Asia Institute (CAI) lacks sufficient transparency and oversight.
  • That some not insignificant number of schools Mortenson claims to have built in Afghanistan and Pakistan either aren’t being supported by CAI, aren’t being used as schools, or don’t exist at all.

I really enjoyed reading both of Mortensen’s books – his story and work inspired me. A simple guy that ended up becoming a development big-shot. I’ll stay my final judgement until the proverbial dust has settled, but it seems pretty clear that he’s been less than truthful. Disappointing, and makes me think:

Inspiration, without discipline and integrity, is a house of cards.

What are some other lessons can we learn from this?

HT: Aidwatch

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Link me up, Scotty

by Marshall on April 14, 2011

My cousin Amy writes poetry, even when she writes prose.

Interesting thought from Joe Sunde at Common Sense Concept:  The market system enables parents to sacrifice for the benefit of their children.

Russ Roberts takes on Joe Stiglitz and our popular conception of income equality.

Streaming live from Chicago, its The Gospel Coalition National Conference 2011.

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A Christian defense free markets

by Marshall on April 13, 2011

If you’ve ever wondered at (or been frustrated by) Christian support of free market economics, free enterprise, and limited goverment…here’s something for your consideration:

Today, RJ Moeller over at the Common Sense Concept Two Cents Blog embarks on an epic journey to honestly explain how he sees his Christian faith informing his socio-economic-political beliefs:

I firmly believe that the Bible affirms free enterprise, entrepreneurial activity, and the de-centralization of power in the hands of fallen men and women.

What follows is my defense of that belief.

Whether you agree or disagree, I encourage you to check it out as it may help explain the theological roots of at least part of today’s political debate in the US and around the globe.

In his first post, RJ deals with Creation, God’s image, and the Cultural Mandate:

As one made in God’s image, I am a walking, talking (albeit limited) expression of His character, creativity, and capabilities.  What does this generally mean?  The lives we live have meaning.  There are better (God-honoring) ways to live our lives.  We are capable of great and imaginative things.

I for one will be following along closely. I encourage you to do the same, too!

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Monday Funday

by Marshall on April 11, 2011

In keeping with last week’s theme on true charity and altruism, kick off your week with this classic Seinfeld clip. (Thanks to The Economics of Seinfeld!)

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YMBDI: Visiting the US

by Marshall on April 8, 2011

You might be Dominican if…

…visiting family in the US is really just a cover for exchanging plátanos and salchichas for mini chocolate bars.

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Learning Haitian Creole

by Marshall on April 8, 2011

“Hello non mwen se Alejandro ak mwen se yon konseye nan Espwa”*

Interesting piece on loan officer Alejandro, who works for Esperanza InternationalHOPE’s partner in the Dominican Republic. Alejandro is learning Haitian Creole so he can build stronger relationships with the many loan associates of Haitian descent.

I got to know Alejandro last month when I worked in San Pedro de Macoris, and actually saw his Creole in action – I thought he was fluent!

*Translation: “Hi, my name is Alejandro and I’m an Esperanza loan officer.”

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Day Without Dignity – the Video

by Marshall on April 7, 2011

2 announcements:

1. Check out the highlight video of A Day Without Dignity.

2. Thanks to Good Intentions Are Not Enough for giving yesterday’s post a shout out. (Next to the sandle-clad feet.)

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Aidwars: TOMS shoes vs dignity

by Marshall on April 6, 2011

Tempers flared. Shots were fired. People got hurt. Okay, okay, yesterday’s action was more of the virtual/internet variety. But still, it was heated.

TOMS Shoes – One Day Without Shoes

TOMS Shoes, who I’ve written about before, is a for-profit shoe company founded by Blake Mycoskie whose business and marketing hinges on donating large amounts of shoes to poor people, celebrated yesterday its One Day Without Shoes campaign. To raise awareness about poverty, they encouraged people to go barefoot on April 5…at work, school, home.

Mycoskie described about ODWS in the Huffington Post:

Most people don’t even realize how many children in developing countries grow up barefoot and all the risks, infections and diseases they endure. For most of us, modern shoes our so comfortable and accessible, we all but forget about our feet, but they are a source of constant focus for others. I wanted everyone to personally understand the impact of shoes, and the difference they can make, so we thought, “Why don’t we get a taste of what these kids go through every day?”

Yesterday, TOMS highlighted many participants on their online vwall:

Mavis E shows her support for One Day Without Shoes

Katie kicks back in support of TOMS

 

2nd graders at Bear River Charter School made posters and wore signs on their shirts to raise awareness for One Day Without Shoes. They are raising money throughout the month of April to send to Tom’s to help buy shoes for other children.

Others included:  Heather Morris from Glee, Charlese Theron, Matisyahu, Philadelphia Eagles Cheerleaders, and a host of other celebrities.

Response – A Day Without Dignity

TOMS shoes has been criticized for its model of giving shoes to poor people – for unintended consequences on local economies, for not addressing a significant problem (education, jobs, health, infrastructure), and for the underlying philosophy being perpetuated:  poor people can’t take care of themselves without our charity.

Many in the international development community criticized TOMS for its One Day Without Shoes campaign, and Good Intentions Are Not Enough (org dedicated to helping donors make good funding decisions) organized its own awareness campaign for the same day:  A Day Without Dignity.

A Day Without Dignity is a counter-campaign to TOMS Shoes A Day Without Shoes “awareness raising campaign” (commercial). On or around April 5th – the same date as A Day Without Shoes – we’re asking aid workers, the diaspora, and people from areas that receive shoe drops and other forms of charity to speak up in blogs, on twitter, or at school. – GIANE

Yesterday, April 5, was D(ignity)-day. People took to the streets, Twitter, Facebook, blogs, Youtube, etc…to criticize One Day Without Shoes:

  • Vivek from Aidwatch goes barefoot on broadway (includes gross feet pics)
  • TMS Ruge from Uganda:  ”Why has it become so easy for people to start feel-good campaigns that no one asked for? There are a thousand things this village needs and nowhere on the list are t-shirts and shoes…”
  • Hands Wide Open:  ”Christians love TOMS shoes. I mean, who wouldn’t really love a company where you buy a pair of shoes and then they donate a pair of shoes to a poor kid in a third world country? It is like winning the trifecta for Christians…”
  • Wanderlust:  ”TOMS, I get that shoes are your thing. If you’re really serious about wanting to provide footwear to the world’s barefoot children, try looking at a totally different form of investment. Instead of donating a pair of shoes for each pair purchased, take the cash equivalent of that donation (the production cost of the shoe plus the shipping/handling/storage/distribution costs) and instead sink that into local shoe manufacture.”

Visit A Day Without Dignity for more links to articles, photos, videos.

My Take

Look, raising awareness and giving stuff is easy. It means I can “do something” with little/no knowledge of the situation, little time involved, and without asking any questions. Which is exactly why it doesn’t work.

Not only does it not work, it is based on an incorrect materialistic worldview:  that a person’s value is based on his or her access to material goods. Just because I might have more money than someone in Africa doesn’t mean they need me to tell them what they want. It’s wrong logically, and morally. All people are endowed by their Creator with worth, rights, abilities, potential. Even if you don’t believe in God, I hope you believe that people have intrinsic worth, not dependent on how much stuff they have. Materialism maintains a strong cultural hold in the West, one that needs to be continually exposed and challenged.

That said, it’s not unfixable. TOMS, there are many ways for you to really make a difference. Invest in and share your expertise with local shoe businesses, leading to sustainable jobs. Donate some of your profits to support educational institutions, leading to more opportunities. These are things that people want, and promote their dignity. If you’re not willing to do that, please drop your current marketing approach which oversells your impact, encourages self-absorbed charity, and is an affront to the dignity of the materially poor.

What do you think about TOMS? How can we fight the temptation to make our charity about us?

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A little dose of optimism

by Marshall on April 5, 2011

Balancing out the weight of my previous post on the Democratic Republic of the Congo, here’s the bigger picture (that also doesn’t make the news):

Despite the wars, the disease, the poverty, and counterproductive international aid, African living standards are on the rise.

HT to this Aidwatch post.

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