Saturday, June 9, 2012

Responses to Poverty - Part 2: William Easterly


William Easterly

William Easterly does not think Jeffrey Sachs’ big plans and demand for more aid is the answer to end extreme poverty [see previous post, Response to Poverty: Part 1].  In his book, The White Man’s Burden: Why the West’s Efforts to Aid the Rest Have Done So Much Ill and So Little Good, Easterly declares both the big plan and the demand for more aid as the absolute wrong ways to solve the poverty problem.  
Easterly refers to rich nations as the “West” and poor nations as the “Rest.”  “This is the tragedy in which the West spent $2.3 trillion on foreign aid over the last five decades and still had not managed to get twelve-cent medicines to children to prevent half of all malaria deaths,” bemoans Easterly.  He continues, “The West spent $2.3 trillion and still had not managed to get four-dollar bed nets to poor families.  The West spent $2.3 trillion and still had not managed to get three dollars to each new mother to prevent five million child deaths…. It’s a tragedy that so much well-meaning compassion did not bring these results for needy people” [White Man’s Burden, 4-5]. 
Easterly cites two specific groups in the war on poverty—the Planners and the Searchers.  The Planners are those who dream up great and grandiose strategies to help the poor but have no accountability in the process or for any results.  Many of these planners are elitist, educators, or wealthy who are insulated from the gritty realities of poverty.  Easterly believes that Planners are far removed from poverty’s problems and therefore from its solutions.  While acknowledging Sachs’ good works in poverty fighting and development, Easterly calls him a Planner.
Easterly accuses Planners of having utopian ideas and goals.  Billions of dollars are either wasted or diverted from actually helping the poor.  Easterly explains, “A big problem with foreign aid has been its aspiration to a utopian blueprint to fix the world’s complex problems.  The utopian agenda has also led to an unproductive focus on trying to change whole political systems.  The status quo—large international bureaucracies giving aid to large national government bureaucracies—is not getting money to the poor.” [White Man’s Burden, 367-368].
Searchers on the other hand, according to Easterly, are those in the field working with the poor who actually get the job done.  Searchers are individuals, companies, or organizations that learn what is needed, supply the need and earn a return for their work.  Their plans are not huge or grandiose but piece-meal—hit or miss.  If a plan or idea misses they can quickly discard it for another product or service until it hits.  This way the public is served with what it wants and the Searcher is rewarded with a profit.
            Easterly cites an interesting case of Searchers getting the job done more effectively than the aid agencies.  “There is significant evidence to suggest that lifesaving products are more effectively distributed among the poor when they are sold than when they are given away.  The best example is the distribution of bed nets for malaria prevention in Africa.  One survey found that when free nets were distributed in Zambia, 70 percent of the recipients didn’t use them.  In Malawi, where nets were sold at affordable prices, there was nearly universal use” [White Man’s Burden, 14].
Easterly contrasts Planners and Searchers this way, “In foreign aid, Planners announce good intentions but don’t motivate anyone to carry them out; Searchers find things that work and get some reward.  Planners raise expectations but take no responsibility for meeting them; Searchers accept responsibility for their actions.  Planners determine what to supply; Searchers find out what is in demand.  Planners apply global blueprints; Searchers adapt to local conditions.  Planners at the top lack knowledge of the bottom; Searchers find out what the reality is at the bottom.  Planners never hear whether the plan got what it needed; Searchers find out if the customer is satisfied” [White Man’s Burden, 5-6].
Easterly claims that Planners like Sachs demand more aid for impoverished people and nations.  But, with all due respect to Sachs and other Planners, the past fifty years of big ideas and $2.3 trillion in aid has not solved global poverty and may have contributed to it.  The next blog post will look at the effects of foreign aid on poverty.