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| Originally Aired: September 21, 2006 |
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Authors Analyze, Criticize Foreign Aid Agencies in New Books |
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| The NewsHour's Economics Correspondent Paul Solman reports on the effectiveness of foreign aid in reducing proverty. |
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PAUL SOLMAN, NewsHour Economics Correspondent: What do all these have in common? The IMF and World Bank; the U.N.; billionaires Bill Gates, Warren Buffett, and George Soros; superstars Bono and Angelina Jolie; many of the world's highest profile politicians. The link? A public commitment to end world poverty and disease through foreign aid. BILL CLINTON, Former President of the United States: Regardless of size or scope, our problems will yield to concerted action and innovative partnerships of individuals, NGOs, businesses, and governments. PAUL SOLMAN: But one skeptic claims that the more than $2 trillion spent on foreign aid over the past 50 years or so has been a tragic waste, failing to deliver even the cheapest of fixes, like rehydration kits for babies dying of diarrhea. Cost: 10 cents. WILLIAM EASTERLY, Economist, New York University: And yet, still last year, 2 million babies died because they didn't get these. PAUL SOLMAN: The skeptic is William Easterly, former self-described left-wing do-gooder. He grew up in Ghana, the son of a missionary. Former World Bank staffer for 16 years, now a hard-nosed economist at New York University. Malaria medicines, he says, can save a life for 12 cents, and yet... WILLIAM EASTERLY: There were 1 to 3 million deaths from malaria last year. It's true of so many simple interventions, that aid money could pay for over and over again, the existing aid money, without even increasing aid. And yet, somehow, the aid is not actually reaching the poor people. |
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The "white man's burden"
PAUL SOLMAN: So much aid, so little attention to where it winds up. That's the nub of Easterly's argument, spelled out in a new book, "White Man's Burden," which blasts foreign aid agencies, the U.N., even sacred cow good-doers like Irish rock star Bono.WILLIAM EASTERLY: When people like Tony Blair and Bono say, "It's up to us to save Africa," you know, it sounds to me exactly like the white man's burden. PAUL SOLMAN: That is Englishman Rudyard Kipling's 19th-century colonialist, some would say racist, poem, "White Man's Burden." WILLIAM EASTERLY: "Take up the white man's burden, the savage wars of peace. Fill full the mouth of famine and bid the sickness cease." PAUL SOLMAN: And what does he mean? WILLIAM EASTERLY: He means that it's up to the whites, the white man, to go in and cure the sick in Africa, to feed the hungry in Africa, and that's pretty much the mind-set of aid officials today. PAUL SOLMAN: Also part of the mindset: a belief that poverty can be solved scientifically by experts, what Easterly calls "the planners." WILLIAM EASTERLY: The total misconception there is that poverty is a technical scientific problem, that you just need to come up with a lot of scientific interventions, like bed nets, to protect people against getting malaria, and improved fertilizer to improve agriculture, and, you know, about 400 other things like this. But it doesn't work to have a bunch of experts parachute in, because you're trying to solve in microcosm what's a part of a much larger problem of a society that's not working because free markets and democracy are not working. |
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Successes in foreign aid
PAUL SOLMAN: Skeptical of Easterly is aid expert and
activist Jeffrey Sachs.
JEFFREY SACHS, Economist, Columbia University:
But we see so many successes of foreign aid, we ought to learn from them: the
green revolution, the health revolution in so many parts of the world, disease
control, eradication of smallpox, near eradication of polio, children in
school, spreading literacy, declining fertility rates. So many successes, that
we should learn from those successes and apply them to the problems that our
world faces in the 21st century.
PAUL SOLMAN: To Sachs, Easterly's white man's burden
indictment is provocative and, if true, important. But Sachs speaks for much of
the foreign aid establishment in treating this as a slander and out of date.
Author of his own book, "The End of Poverty,"
friend of, among others, Bono, who wrote the introduction to this book, Sachs
is also a target of Easterly's critique because he's an unapologetic planner.
By contrast, Easterly supports what he calls
"searchers," social entrepreneurs and nongovernmental organizations
trying to achieve modest goals one at a time, like making micro-loans to
village entrepreneurs or distributing mosquito nets to eliminate malaria in the
African country of Malawi.
WILLIAM EASTERLY: The percentage of children and mothers
actually sleeping under bed nets dramatically went up after the searchers in
Malawi stumbled upon this solution of giving pregnant mothers subsidized price
for bed nets in clinics. And they actually sold the net to the pregnant
mothers, so you know that the mother placed some value on the net and would
actually use it.
Now, whereas the planners' approach to malaria would be, you
know, "We know the scientific solution to malaria is for everyone to sleep
under a bed net, so we just drive trucks around, throwing nets off the back of
trucks." And the nets, you know, get wind up being used as fishing nets,
or wedding veils, or diverted to the black market, and they don't really reach
the poor people.
JEFFREY SACHS: The fact of the matter is that, when you try
to sell bed nets to people that have no money, it takes years, and years, and
years to achieve what you can achieve in a few weeks by a mass distribution
campaign. This idea that somehow you go slowly or on a small scale because
that's the right thing to do, while millions of people are dying because they
don't have access to the most basic things that they need, makes no sense. |
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Bigger isn't better
PAUL SOLMAN: But big projects do fail, Easterly and others
maintain. Planners undertake them with the best of intentions...
WILLIAM EASTERLY: And then somehow they just take it for
granted that these will all be implemented by human agents. And that completely
ignores the economic and political problems that make poor countries poor. Governments
in poor countries are -- it's sad to say it, but we have to face reality --
they're very corrupt. Even when they're not corrupt, the bureaucracies are very
unmotivated and dysfunctional.
So, you know, when you try to channel the money through
governments in poor countries, the money just doesn't reach the poor.
PAUL SOLMAN: But Jeffrey Sachs' point is that, these days,
some big plans actually work, like the effort to get drugs to HIV-positive
patients in Africa, for example, and to make
sure they follow the regimens.
JEFFREY SACHS: Six years ago, there wasn't one person in Africa on an official donor effort that was able to get
anti-retroviral medicines. Now, there are hundreds of thousands of people
staying alive. And the latest evidence is, "Oh, the skeptics were wrong. The
people really do follow through the protocols. The spread of resistance, which
was so much feared, no, that hasn't happened specifically."
You have the president of the United States and his plan behind
these concepts in a big way now. Now you have a new presidential malaria
initiative, because there are proven things that can be done to save millions
of lives. That's what counts. |
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Accountability above all
PAUL SOLMAN: Well, we're at the end of this debate, and you
may think you've just heard yet another typical dueling books, on-the-one-hand,
on-the-other-hand standoff, where you can't possibly know who's right.
So let's finish with a point of commonality, because both
these men actually agree as to what works in foreign aid: proven practicality. And
that means what's needed is accountability, which has so often been lacking in
the past.
WILLIAM EASTERLY: We demand accountability, which means we
demand that aid agencies really do get evaluated for whether their dollars
reach the poor, for whether the medicines reach dying babies in time to save
their lives. We demand that these evaluations be totally independent.
And if you know that you're going to be judged in that way,
then you are going to be a lot more motivated to make sure that those babies
get 10-cent oral rehydration kits so they don't die from dehydration.
PAUL SOLMAN: To which Jeffrey Sachs says,
"Absolutely." And it's now beginning to happen.
JEFFREY SACHS: Foreign aid has always been most successful
when it's been most practical, straightforward things that can be done on a
large scale, and the world is moving in that direction, fortunately, finally.
PAUL SOLMAN: The questions remain, of course: Has foreign
aid really begun to become accountable? And if it has, will it continue to
change in the right direction?
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