Bono for capitalism

U2's Bono has lobbied for decades in the cause of more and more aid handouts from Western countries to Africa.  

But some Africans (see this week's earlier posts) protest that aid has been hurting Africa more than helping.  The charge is that corrupt leaders get their hands on the millions, and that average people see very little of it.  Dambisa Moyo has spoken and written on this, one of her books being Dead Aid.

George Ayittey argues that not only does foreign aid produce corruption, but that the efforts of African people to create wealth are hindered in many ways (see Tuesday's post).

The amazing thing is that Bono has changed his mind.  He's still a bit shocked by it, says "it's been a humbling thing for me," but he now says that aid is only a "stopgap."

At a conference about a year ago, he said,   "Job creators and innovators are just the key, and aid is just a bridge."  Redistribution of wealth isn't the answer.  Society prospers when wealth is created.  For stories about how that happens, see the topic "Create Wealth" on the right.

You've got to respect a person who changes his mind when he receives better information. Winners make corrections.

"Please stop" (the aid)

Spiegel interviewer Thielo Thielke is shocked:  economist James Shikwati from Kenya begs the West to stop sending millions of dollars, food, and clothing to Africa.

Thielke is confused.  But people will starve if we don't help them, he said!  The problem is, as in the Bono quote from two days ago, "aid is just a stopgap."  Yes, it is good for a temporary emergency measure, but it's just inadequate in the long run.

What Africans need is a growing economy (Bono: Africa needs "to become an economic powerhouse").  They need prosperous farms and industry - they need to create wealth.

Western industrialized countries did that during the last few centuries which is why they have enough wealth to give away.  And, according to Ayittey (yesterday's post), Africa supported itself before the colonists arrived and can do it again if the West will stop sabotaging their weaving businesses, their corn farms, their local/community efforts to create wealth.

Cheetahs vs. Hippos

George Ayittey, economist from Ghana, says that Africa's elitist leaders are "hippos."  Note who he calls "cheetahs" in his TED talk:

Ayittey condemns African leaders who he claims have not cared for the people they lead  (he calls it the "blind leading the clueless").  Instead, they have made themselves rich by manipulating aid money.  He believes aid has done more harm than good for Africans.

U2's Bono was in attendance, and approached him afterward. Ayittey gave him a copy of his book, Africa Unchained, which may have helped Bono re-think the problems of African nations.

Years ago I remember asking someone (sure wish I could tell you who it was) why Africa is so poor when it has so much in the way of natural resources.  That someone told me that the reason lies with Africa's corrupt and brutal leaders.  So this video - by an African - resonates with me.

Stopgap aid to Africa

Bono of the band U2 made headlines again this past August.  It was not for a concert; it was not for asking developed countries to donate aid to Africa (the 1985 concert, "Live Aid," was his  first fundraising concert).  He has changed his narrative.

The policy of West has been to pump money, food, clothing, wealth in general into African countries that they perceived as needy and desperate.  Motive?  They saw poverty, and they wanted to help.

But did it help?  That is the question.  As more became known about the results of massive aid, voices - from Africa - tried to change the paradigm.  

Bono has been one of the most influential people in the world in raising money for African aid.  But here's what he said in August 2013:

"Aid is just a stopgap. Commerce [and] entrepreneurial capitalism take more people out of poverty than aid. We need Africa to become an economic powerhouse."

Movie heroism

Acculturated.com reviews the movie, "Captain Phillips" with Tom Hanks and some young Somalis recruited to act.  The author says that wisdom and prudence have their part to play in the making of a hero.

"Green" clarification

Maybe I should clarify what side I take in "green" environmental issues. I'd call my position cautious.

From recent articles in Spiegel International, it looks like we could learn from Germany's experience: their aggressive "green" policies are costing taxpayers a lot (as in the United Kingdom, yesterday's post) while showing little in the way of results.

So far I'm not convinced that global warming is or isn't an urgent danger.  If the German Green Party politician Herman Ott is at all representative of the movement,  I'm skeptical.

We seem to have nothing to show for the hundreds of millions we've thrown at green companies in the U.S. . . while our debt is horrible.

I'm taking these issues one at a time, still thinking things through.

UK green costs rise

In the United Kingdom, as we've also seen in Germany, energy prices are rising.  The UK Telegraph in this article reports that complaints are escalating along with calls for change in the government's "green" policies.  It is expected that energy costs will continue to rise every year for the rest of this decade.

Last Friday the Telegraph reported that "one of the most influential think-tanks in the country will say energy subsidies for wind farms and solar panels are a "regressive" tax".  Regressive means that it falls more heavily on the poorer taxpayer than on the wealthier one.

In a related United Kingdom story, a wind farm in the Yorkshire Dales hasn't functioned for years and is being torn down for scrap metal.