Thursday, June 07, 2007

Stop donating to the poor...you are only making it worse?!?!

Interesting read of an interview by a Kenyan economist begging, not for more money, but for less.

http://www.spiegel.de/international/spiegel/0,1518,363663,00.html

I'm no economist, but the case studies that he presents, if true, are quite compelling. For example, he states that if, during a mild food shortage, the rest of the world donates food to african countries, the farmers in the country will be undercut and thus some will give up farming, ensuring that the next time round, there is even less food, resulting in more aid, and so on. In the meantime, the jobless farmer goes and asks for aid. He is basically saying that giving aid to africa encourages the people to just freeload, and alot of the aid goes to the corrupt politicians anyway. I can't verify what he is saying, but it is an interesting viewpoint you should take note of the next time you donate money, whether it is to a country, and organisation or a person. The situation seems alot like the worst qualities of a welfare state.

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