Actually, some local workers learn construction skills on these types of projects. Another example is when the documentary shows innovators from developing countries without acknowledging that they were among the few privileged residents of these countries that could receive a good education. ABSTRACT. Innovation requires high quality education, but many rural areas in many poor countries do not even have a free university or free secondary schools for the poor. When Food for the Poor constructed houses in a desolated and rural area such as Saltadere (Haiti) for poor families (which put wealth in hands of these families), does that discourage any local producers? MPESA) account of the extreme poor all around the world. No. When thinking about the power of direct cash transfers consider the idea of diminishing returns. Fourthly, by basing their arguments on anecdotes, the documentary also enters what economists call the “fallacy of composition”. What’s Wrong With 'Poverty, Inc.'? Poverty Inc. is unsparing in its criticism of efforts by rich countries to help the global poor, implying that they remain stuck in old, broken paradigms that not only don’t work, but often make matters worse. The concern that aid that goes directly to corrupt governments often does very little in the lives of the poor and (perhaps) makes the whole situation worse by weakening “the social contract” between governments and their electorate. -Jeff Bloem is a graduate student at Michigan State University in the Department of Agricultural, Food, and Resource Economics. No. For example, the film takes quite a bit of time explaining why TOMS Shoes, while well-intended, actually damages the local economies where the shoes are donated. Besides mentioning supranational entities, the documentary did not expose crucial structural problems: there is no serious analysis on geopolitics, global power relations, or class issues, among others. Another example is when the documentary shows innovators from developing countries without acknowledging that they were among the few privileged residents of these countries that could receive a good education. To put that number in perspective, that’s more lives saved than would have been saved if we achieved world peace in 1973. ( Log Out /  Without a global government that taxes the rich countries and redistributes to poor countries, some of the existing channels available for redistributing income are: receiving remittances, exporting more than importing from the North, and attracting foreign transfers, among others. Middle- and high-income consumers will consume new clothes from multinationals because of prestige, but if they would buy some used clothes from poor local merchants, that would help development more than buying new clothes from multinationals. Many. The aid and development industry needs more evidence not less financial support. Perhaps the best points made by the documentary are the arguments against the heavily subsidized agriculture in rich countries and that Nongovernmental Organizations (NGOs) can do a better job if they base their strategies on effective communications with local entities, although this idea is not a new either. It’s understandable why very few NGOs spend time and money measuring impacts and collecting evidence. If no country has been able to provide well-paid jobs to everyone, how can a poor economy with limited resources do that for everyone? No. What Is #EndSARS In Nigeria And Why Are Celebs Supporting It? In fact, in 2017 China ranked worse in property rights than Botswana. But the results have been mixed, in some cases even catastrophic, and developing world leaders have become increasingly vocal in calling for change. The problem with most NGOs, and the key reason why many countries remain poor despite the overwhelming number of NGOs, is because these organizations often don’t do anything as far as collecting data, gathering feedback, or rigorously measuring impact. In reality, it’s a grossly over simplified plod through some pretty well established criticisms of certain areas of development work that tars everyone with the same brush. One thought on “ Poverty Inc Critique Article & Discussion ” Laura Hollis on February 6, 2018 at 1:28 pm said: Great find, and a wonderful piece to prompt discussion! For instance, asking one physician about his living conditions abroad is not representative of all physicians working for NGOs. The film draws attention to several parts of the aid and development industry that seem to be riddled with flaws. To make the case against spending foreign aid, it is not a sufficient argument to simply point to projects or policies that seem to have not produced benefits. This is a real concern, but the film doesn’t share much in terms of rigorous evidence. Shared Justice is an initiative of the Center for Public Justice. NGOs and local states can work together to provide higher access to education. View all posts by Trenz.today. This explanation uses well-developed theoretical economic logic: local shoe businesses can’t compete with free, so when shoes are given away for free the local shoe market suffers. Second, the film focused only on the flaws of the current system and fails to mention what the aid and development industry (perhaps miraculously) has gotten right over the years. Did China become a neoliberal state or strongly protect intellectual property (a sign of good institutions for these schools of thought)? Actually, some local workers learn construction skills on these types of projects. The findings of the study are surprising, given the sound logic in the paragraph above. Fourthly, by basing their arguments on anecdotes, the documentary also enters what economists call the “fallacy of composition”. approximated by the rate of established business ownership, international patent law is another structural factor with dire implications for ART (antiretroviral therapy) in resource-poor settings, http://trenz.today/whats-wrong-with-poverty-inc-a-critical-review/, Videos Show Migrant Children Being Slapped, Dragged At Since-Shuttered Arizona Shelter, John Kelly Blames Jeff Sessions For Family Separation Policy: ‘He Surprised Us’, Microsoft Allowed Super Mario Bros. to be Illegally Sold on Their Store, The Ancient Aliens Theory Explained By Erich Von Daniken April 2015. On the other hand, criticism of the structure of current foreign aid is a relatively old idea in the development literature. I believe that solidarity is better than indifference, and that the ultimate causes of poverty are in the structure of the system, not in the few people that are trying to counteract the system with their available tools. Do economies with “strong” institutions have higher entrepreneurship levels than economies with weak institutions? He is currently working toward his MS degree. To End Global Poverty We Need More Evidence, Not Less Aid: A Review of “Poverty, Inc.”, Religious Freedom: One Notion Under God, Indivisible, Elections in Myanmar: First Steps on a Long Road, Foreign Aid Transparency and Accountability Act. NGOs and local states can work together to provide higher access to education. No. ( Log Out /  A Critical Review As a development economist, I share here my views on the famous documentary “Poverty, Inc.” On the positive side, the documentary does a good job in making some points for an audience unfamiliar with economic development, such as the idea that dependency does not end poverty, or… Can the “miracle” of the Asian Tigers (Taiwan, Hong Kong, South Korea, and Singapore) be attributed to “property rights”? According to the movie Poverty, Inc. voluntary contributions to inhabitants of poor countries from church and other such groups hurt the recipients instead of helping them. When Food for the Poor constructed houses in a desolated and rural area such as Saltadere (Haiti) for poor families (which put wealth in hands of these families), does that discourage any local producers? The documentary also failed to mention that charity is necessary for some populations. He is a graduate of Calvin College. An academic study shows that in-kind transfers do not harm local purchases. Take the case of the Ethiopian Women Lawyers Association (EWLA), that has won important cases with the funds provided by NGOs. These include: By raising awareness of these flaws in the global aid system, this film deserves appreciation, as these issues are presented in a clear and meaningful fashion. Thirdly, not all countries that receive shoes or clothes are producing them locally and most of the apparel manufactured in poor countries is made by exporting multinationals, therefore, not consumed locally. Physicians working for $1,000 per month with Doctors Without Borders in very endangered places in Syria and Sudan are anonymous heroes that give up a comfortable life in their home countries and that may earn less than people associated to this documentary. This is the idea that $1 is worth exponentially more in the hands of someone living off of $2 per day than it is in the hands of someone living off of $200 per day. Innovation requires high quality education, but many rural areas in many poor countries do not even have a free university or free secondary schools for the poor. Thirdly, not all countries that receive shoes or clothes are producing them locally and most of the apparel manufactured in poor countries is made by exporting multinationals, therefore, not consumed locally. Secondly, the documentary mixed foreign aid with all kinds of NGOs to state that NGOs do “more harm than good” because by gifting food or clothes they are harming local producers. On the positive side, the documentary does a good job in making some points for an audience unfamiliar with economic development, such as the idea that dependency does not end poverty, or that current foreign aid (money flows between governments) has “unintended consequences that do more harm than good.” However, both ideas are not new. Although the film focuses on the topic of failed attempts to aid the poor, it is actually quite well-made and is a remarkably engaging film. Distributing eggs to a rural community that produces eggs substitute local capacity. The film argues through examples that “good jobs are the solution.” No one would disagree. To put this calculation in perspective: standard cost-benefit analysis within the United States government rests on the assumption that a life is “worth” saving if it can be done with a price tag of $7 million or less. A class analysis would not, for instance, stress that “NGOs need the poor to exist” but that “the rich need the poor to exist”.

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