THE WHITE MAN'S BURDEN

Easterly, W. (2006) The white man's burden Penguin Press, New York

Easterly writes an excellent summary of foreign aid in the Third World. He also suggests some solutions. His first caveat is that he was part of the problem when he worked for the World Bank.

In a move straight out the Chicago school of capitalism, the big bank demanded a quick pay off to outstanding loans. It almost broke the banks of various African nations.

The story begins with what places like Darfur and what ever other hot spot emerges, in that year. a First world nations were there to get slaves and harvest the resources. For every 3 dollars we have gotten from Africa, one dollar has been returned.

He has become very skeptical of the big visionaries who have grand schemes about how to remake a country into a western democracy. So a plan is arranged, various charities now called NGO'S

gather the money and put on rock concerts and whatever. Then money and or goods are sent to

the region. Bureaucrats divvy up the money and they are right back to where they started.

Additionally, who ever is in control is not really all that excited about a democracy. If there is a revolution then one ruling class is replaced with another. So it all ends up that the majority of a country live in mud huts and life goes on. The grand scheme is in ashes and the money has been siphoned to crooks. Or, the peasents get it, but stick it out with subsistence farming. At any rate, he suggests that few things work.

He is willing to suggest the following. Visionaries have a tendency to want government programs to work by setting up public agencies. It does not work, or it has not worked. So, he suggests that a more mundane approach MIGHT work. If a region needs a road to get what excess goods they have to sell, build a road and demand a payment that is very low. The road encourages activity and the activity MAY  lead to surplus profit. Capitalists then invest in other projects because it is a benefit to them to build or create other institutions that create wealth.

Further, micro lending mainly to the women, creates farming that can generate wealth and they repay their loan with a small interest. A capitalist class begins to emerge and a middle class MAY

emerge. The capitalism that peasants have seen before is colonial capitalism where money is used to harvest a resource, buy off local governments, and exploit the peasants. This capitalism is generated within the country. When small farmers begin to emerge maybe then we can talk about democracy.

The praise for the book on the back all come from Right wingers. However, as a moderate, I would like to lend my support. Not much has worked in the past and if this has a chance to

stop folks from starving, I am for it.