Repost: Best ways to give to poor

The following post by Bruce Wydick (Economics Prof at USF) is from World Bank's blog, but the article was originally written in Christianity Today. The question is basically, what is the most cost-effective way to positively impact the poor? Professionals rate these activities in order or most to least effective:

1. Provide clean water
2. De-worming treatments
3. Bed nets
4. Child sponsorship
5. Efficient stoves
6. Micro finance
7. Reparative surgeries
8. Farm animal donation
9. Libraries
10. Fair Trade Coffee
11. Laptops for kids....the list goes on

Point is, Fair Trade coffee is at the bottom. And this is a grave issue in my opinion. Not that I disagree entirely - but because Fair-Trade coffee is entirely different than the other 10 ways to help the poor. Can you guess why?

Only Fair Trade requires something of the poor. Ok, you think, that is ridiculous, we are to help the poor, not the other way around! The thing that Fair Trade has the power to do is EMPOWER the poor in a way that other interventions don't.

PAC, the organization I interned with in Nicaragua takes it a step further than Fair Trade. They build strong relationships with their farmers, and provide consistently higher prices through a simplified supply chain, good marketing, and higher quality coffee. They invite farmers to improve the quality and quantity of their product, and gives them access to tools (microfinance, technical assistance, etc.) to make it possible.

Poverty is complex, and PAC has found a multifacted approach that has measurable results.

And now, a picture so that people at least read a few words of the blog :)

 Hugo and I checking out a huge selection of cheeses in Toulouse, France. I wish Newton had specialty cheese like this...I've heard rumors that a local dairyman Jason might start up - if he makes artisan swiss cheese, I will buy it!

GDP and trash

I was reading an article that I found interesting from the Economist, and it reminded me of a simple fact that must be considered when we define "development." The first picture is one of GDP, or gross domestic product, which is basically a measure of income. Intuition would tell us that as incomes rise, people live healthier, happier lives. And this is true to some degree.

The second picture is a measure of the trash that people create (or municipal solid waste) in kilograms per day.

 Source: http://www.economist.com/blogs/graphicdetail/2012/06/daily-chart-3
Comparing the two pictures is obvious. Raising incomes does NOT solve all the problems, in fact it leads to a very glaring cost (called a negative externality in economics).

For me, this is a reminder that development is about more than people's income. It's (more importantly I would argue) about people, about relationships. With God, ourselves, others, and creation. More on this later!

Nice or good?

So I just finished reading a book called "No More Christian Nice Guy" by Paul Coughlin that was laying on a shelf in our house and caught my attention (very cheesey, I know). Needless to say, it was challenging, especially into the life of Jesus and how it compares with today's portrayal of what a Christian nice guy (CNG) should look like, such as:

• Be passive and avoid conflict
• Don't say things that insult others
• Turn the other cheek
• Be humble and submissive

These are part of great character, but they are not ALL there is to great character. Jesus broke all of these principles at one time or another, for the right reasons of course. Some principles that are often overlooked include:

• Initiator - Jesus did not wait for others to tell him what to do next
• Compassionate - especially for the sick
• Confrontational - how He spoke to the Pharisees
• No fear of others opinion - Jesus did as He knew was right, eating with sinners, healing on the Sabbath
• Extreme, not-holding-back love - dying an undeserved death as a criminal

How can we live in such an unashamed, unselfish way? To make a difference in a world that so desperately needs movers? I have so many examples to follow, of people who are leading the way, showing me what it looks like to give 100%, to not turn back. My Great Uncle and Aunt, Dr. John and Clara giving their lives to leprosy patients in Paraguay. My Uncle Tom and Aunt Marcy, giving up comfort to share with others the true peace that we can experience only in a relationship with God. And my parents, giving so generously out of what they have been given.

Will our generation unselfishly step up to the challenge?

Hershey's President and CEO - truthful or a lier?

Today John P. Bilbrey spoke at K-State; he is the President of Hershey's, the largest chocolate manufacturer of chocolate in the US. The focus of the presentation was to awe us over the fact that he has gained $billions in revenue for the company since he became president in 2003 (31% dividends to shareholders in last years bad economy, not bad).

After the presentation, students had an opportunity to ask him questions. One of the questions was, "what are you doing to end child labor" and "what are you doing to help the African people." The second question was asked by an African about an issue obviously close to his heart.

Let's examine what Mr. Bilbrey really said:

The first part of his answer was "it's complex." Is this a valid argument? Yes, most definitely, not all child labor is slave labor. Unfortunately, he was using it as an excuse for the company to sit on their hands and act as though children enslaved on cocoa farms do not harvest cocoa for Hershey's - they do.

Secondly, "all the FairTrade cocoa that is available, we'll use it" is simply not true. Firms are notorious for rejecting FairTrade cocoa because it doesn't measure up to their high standards. Once again, FairTrade needs to work with companies more closely in this regard (Starbucks coffee is a great example).

Third, he said that they are "very, very dedicated" to end child labor. Which explains why they spent $125 million on a high school in Pennsyvania last year, and will spend $2 million, or 0.08%
of total profits, to end child slavery. By the way - he did use the word "very" twice. At least it is a step in the right direction. They spent $0 the last 11 decades.

Fourth, he claimed to be a "man of faith" and while he was implying faith in God, I'm glad he didn't qualify it. What does God have to say about all this, anyways? "Whoever oppresses the poor shows contempt for their Maker, but whoever is kind to the needy honors God." (Proverbs 14:31).

This all begs the question, can our generation step up to the plate with a strong stance on moral issues like this one? Can we tell the next generation that child labor is a thing of the past because we had a perspective that went past profit? I certainly hope so.

Cocoa - the global picture

While today was mostly dedicated to my thesis, I took a lunchtime break to explore cocoa a little. Where is it from? Where does it go? I hope you enjoy my findings (courtesy: FAOSTAT).

Production (2010):

Ivory Coast - 29%
Indonesia - 19%
Ghana - 15%
Nigeria - 10%

These 4 countries alone produce 73% of the worlds cocoa, wow! The entire Americas produces 12% of the entire cocoa production in the world, 9% from Brazil and Ecuador.

Imports of cocoa beans (2010):

Netherlands - 24%
United States - 14%
Germany - 11%
Malaysia - 9% (from Indonesia?)
France - 5%
Belgium - 5%
UK - 5%

These 7 countries buy almost 70% of total imports, which is 50% of all cocoa beans produced in the world. (73% of cocoa beans are exported unprocessed).

What does this conclude: the worldwide cocoa market is very concentrated in "pockets" of production and processing. Is this an open door for countries like Nicaragua that are placed strategically close to the US, a huge cocoa market? Or does it suggest that economies of scale (large quantity) is a "must" in the cocoa industry?

My job is to do the research, I'll let you decide!

Why FairTrade? Many small farmers in LICs get cheated - either they get paid an unreasonably low price, or they never get paid at all. Here, a cocoa producer in Nicaragua gets his fair share of the profit.

My heroes...

This is a shout out to some people that are my heroes - they have dedicated their lives to love God, love others, and end poverty. They sacrifice daily to live simple lives in tough environments so that the kingdom of God reaches to the ends of the earth. They are living the gospel, not just talking about it.

(Me, Mai Anne, and Papa Sam)

(Me with Mario, Jesifina, and Mario, Jr.)

I miss them lots and ask God that He continues to raise up more people like them to bring good news!

(heart)breaking news...

On CNN today that had “Breaking News: 1 person dies in Norway.” While this is a tragedy and I don’t want to underplay it’s significance, there is another Breaking News (UNICEF) that tends to be ignored: “29,000 children under the age of 5 die each day of preventable causes (hunger, malnutrition, diarrhea, malaria, to name a few.)

The crisis in East Africa, leading to a mass migration of people from Somalia to Kenya in hopes of finding food breaks my heart.

http://edition.cnn.com/2011/WORLD/africa/07/20/somalia.famine.explainer/index.html?

The listed causes, and some solutions (my own)

(1) long-term drought – drought tolerant crops (WEMA project) wouldn’t hurt (PS - quit doubting people, global climate change is real)

(2) conflict – I’m convinced only God can fix relationships that were broken from the fall

(3) a succession of poor harvest – once again, more drought tolerant crops

(4) rising food and fuel prices – I can personally consume LESS of the worlds resources (especially oil, electricity, gas, food) People that say "People that eat less/no meat aren't helping end poverty" are wrong. Each step counts. (And it takes 6-7 kgs of grain to produce 1 kg of beef.)

Finally, we as the body of Christ, the kingdom on earth, can dedicate our lives to these things. Consume less. Plant a garden. Give more. Love our enemies. Hold those in power accountable for their actions. Ask God to reveal greed and selfishness in our lives, and give Him time to answer.