Global Community Efforts That Will Improve the World

“Eat your vegetables,” my mother told me when I was growing up in America in the 1950s. “Children are starving in Europe.”

My mother’s postwar economic geography sounds comically antiquated today; she could never have foreseen a world in which the euro is stronger than the U.S. dollar. But in another sense she was half a century ahead of her time; her quaint tactics were designed not only to encourage me to finish a meal but—at least in part, I think—to teach me that the destinies of all people on earth are somehow connected.

Although economic geography has undergone changes my mother never would have imagined, one thing remains unchanged: the key to reducing poverty around the world is to build a sense of community at the global level.

When I was a child, of course, I could find no connection between my uneaten vegetables and hungry people in a faraway land. I knew that cleaning my plate had nothing to do with anyone else’s stomach—not directly, at least. But what I didn’t know then—and what my mother must have known all along—is that, when coupled with the necessary resources, a desire to make a difference is a powerful tool for change.

The most ambitious twentieth-century attempt at changing the world—the United Nations—is generally perceived as having failed to improve political, economic and social conditions around the world. Time after time, the UN has failed to prevent genocide, famine and widespread repression of political freedom. If global collaboration is the key to solving the world’s most pressing problems, then in view of the UN’s dismal performance, do we still have a reason to hope?

The World Development Report has been published annually for the last 30 years by the World Bank. The 2008 Report focused on the key role of agriculture as an instrument for development and poverty reduction. All 191 UN member nations have committed to the Millennium Development Goals (MDGs). Goal 1 is to eradicate extreme hunger and poverty.

The nations of the world and the World Bank have thus reached an unusual and perhaps unprecedented consensus; everyone agrees that the key to reducing poverty in the poorest areas of the world is to target more aid money for agricultural development. But as Time recently reported, “This year the U.S. will give more than $800 million to Ethiopia: $460 million for food, $350 million for HIV/AIDS treatment—and just $7 million for agricultural development.”

Spending the bulk of our available resources to treat chronic ills and recurring crises is like treating a cancer patient with band-aids: the deep causes of the patient’s condition go untreated as long as we must respond to one crisis after another, even though we think we know what the root of the problem is and where our money really needs to go.

According to the 2008 World Development Report, 2.1 billion people live on less than $2 a day; 880 million live on less than $1 a day. Agricultural development isn’t a magic bullet; disease, lack of education, social inequality and political corruption are huge obstacles. But since three of every four poor people in the developing world live in rural areas, targeted investment in agriculture promises to pay the most immediate social and economic dividends.

World Development Goal 1 is to cut worldwide poverty and hunger in half by 2015. Even though the G8 leaders have pledged to increase African aid to $50 billion a year by 2010, “Sub-Saharan Africa is at the greatest risk of not achieving the Goals and is struggling to progress on almost every dimension of poverty, including hunger, lack of education, and prevalent disease,” says the UN.

Our Heavy Responsibility

It’s hard to picture a scenario in which the affluent nations of the world will be willing to spend even more money to achieve the MDGs. “You will always have the poor with you,” Jesus told his followers two millennia ago. Although 21st-century economic geography suggests that Jesus was an astute economist, he also exhorted his followers to aid the poor to the best of their ability.

Microsoft chairman Bill Gates believes that creative capitalism is the best way to reduce grinding poverty in developing nations. In theory, Gates’ proposed “system innovation” would produce a kind of planetary trickle-down effect by stimulating consumption in affluent economies.

But as long as we live on a planet with limited resources, unrestrained consumerism in wealthy nations can only produce the opposite effect. On a global scale—and in a closed system—an increase in consumption in affluent nations is more likely to bring about a decrease in consumption in the poorest areas of the world.

Wouldn’t it make more economic sense to consume less in rich economies in order to provide more to the world’s poor? As Vic George pointed out two decades ago in Wealth, Poverty and Starvation, “From a rational perspective this would be a desirable trend because most people in affluent countries consume far too much for their own physical and mental health.”

In Development as Freedom, Amartya Sen, winner of the 1998 Nobel Prize in Economic Science, wrote, “With adequate social opportunities, individuals can effectively shape their own destiny and help each other.”

Sen has argued that human capability influences rapid change far more than human capital. In view of Sen’s findings, Nicholas Negroponte’s One Laptop per Child Foundation is one of the most exciting ideas in the global marketplace. There are two reasons why it can work:

1. It stimulates direct targeted investment in the world’s poor.

2. It aims to unleash human capability.

The Mande people of West Africa have a sophisticated belief system. Although primarily an Islamic people, Mande cosmogony hardly sounds foreign to anyone who is familiar with the Old Testament book of Genesis. “When the Everlasting addressed man, He taught him the law by which all the elements of the cosmos were formed and continue to exist. He made man the Guardian and Governor of His universe and charged him with supervision of the maintenance of universal Harmony. That is why being man is a heavy responsibility.”

Our food consumption, to cite one of the most blatant examples of universal disharmony, is out of control. At the beginning of the new millennium, the percentage of obese Americans had skyrocketed to 65%.

“We’ll be cutting down on fast food, sweets and other unnecessary calories,” my mother would have said if she were raising children in 2008 instead of 1958. “We’ll eat better and save more. Let’s see how many laptops we can buy for kids in Africa.” Then she might have added, “We’ll all be healthier and happier for it.”

Teaching children about man’s heavy responsibility is the best education we can give them. Can smarter consumption in affluent countries be channeled into exponentially greater levels of targeted investment in the world’s poorest economies?

It couldn’t hurt to give it a try—we’ve tried everything else. Who knows? We might all be healthier and happier for it.

Bill Gates on Fighting Poverty

In Bobos in Paradise, David Brooks described a society in which the boundaries that once separated establishment from counter culture have disappeared. “The members of the new information age elite are bourgeois bohemians,” Brooks observed—“Bobos.”

The term might not have a congratulatory ring to it, but Brooks applauded Bobos as “the ones who can turn ideas and emotions into products.” You already know that Microsoft chairman Bill Gates is the richest person in the world (Bourgeois Bill). And you probably know that the Bill & Melinda Gates Foundation is the king of the nonprofit hill (Bohemian Bill). Meet Bill Gates, Bobo in Chief.

The Gates Foundation plans to apply its multibillion-dollar war chest to solve the global economy’s greatest inequities. And according to Gates, the greatest injustice of all—the one that will ultimately determine whether the others get solved or not—is our economic system.

“We need system innovation,” Gates announced last January at the World Economic Forum in Davos, Switzerland, and most recently in Time.

In his Davos speech, Gates pointed out the shortcomings of a system that provides greater incentives to cure baldness than to eradicate malaria, which kills over a million people a year. He plans to devote his energy and money to solving the problems faced by the two billion people on our planet that have yet to benefit from the modern world’s scientific and technical progress.

As Gates sees it, human nature is driven by two fundamental forces: self-interest and caring for others. By harnessing these apparently competing drives, Gates’ socially conscious capitalism would continue to benefit those that have always benefited from capitalism while lifting up some of those that have fallen through the canyon-sized cracks in the global economy as we know it.

How do you motivate businesses to produce goods and services for people that can’t pay for them? Gates believes the solution is to create incentives that act in lieu of the profit motive in those markets where businesses are unlikely to make money. “The challenge is to design a system where market incentives, including profits and recognition, drive the change.”

Gates envisions a system in which global goodwill makes it profitable for businesses to team up with governments and nonprofits in a planetary crusade against poverty. He calls it creative capitalism: “If we can spend the early decades of the 21st century finding approaches that meet the needs of the poor in ways that generate profits and recognition for business, we will have found a sustainable way to reduce poverty in the world.”

Gates isn’t saying anything that hasn’t been said before. Almost a decade ago, David Brooks pointed out that “practically every company now portrays itself as a social movement.” It’s only fitting that the catchphrase for the new century should come from the man that epitomizes what Brooks called “Bobo capitalism.”

“If you give people a chance to associate themselves with a cause they care about,” Gates explains, “they will pay more, and that premium can make an impact.”

If the zeitgeist fits, wear it. “Shopping, like everything else, has become a means of self-exploration and self-expression,” David Brooks concluded. If Bill Gates finds a way to bundle RED products with AIDS vaccine the way he once bundled Internet Explorer with Windows, there might be no limit to what consumers in advanced economies are willing to pay for T-shirts made with 100 percent African cotton.

To be sure, Bill and Melinda Gates will leave a legacy. Children will be saved and communities will be given a new lease on life. What’s wrong with that?

In theory, nothing’s wrong. But in practice, will applying the good old profit motive to the world’s poorest markets, albeit in the name of a politically correct social movement, only serve to widen the gulf that separates rich and poor?

The Gates Foundation is rich enough—and Bill Gates is talented and influential enough—to make an impact in sub-Saharan Africa, if not the entire world. But if the gulf grows wider in spite of creative capitalism’s best intentions, will all of its beneficiaries still feel like beneficiaries at the end of the day?

World Hunger and Its Complications

There are many issues today regarding our food, where it comes from and why everyone doesn’t have enough. Some believe America directly affects the food resources overseas and drives mass starvation. The problem with this is that often it is only backed by the emotional argument regarding children starving around the globe. It is rarely, if ever, backed by numbers showing that the U.S. is tight-fisted with its food or money. To truly assess world hunger, it is important to look at what the U.S. has contributed as well as the effect world leaders have had on their countries.

According to a press release issued July 16 by the U.S. House of Representatives Committee on Agriculture, the U.S. gives approximately 58% of the total money contributed to global food aid. In 2007, this equated to more than $1.78 billion. In 2008, $1.53 billion was appropriated with another $1.2 billion supplied by a bill passed by Congress. This means in 2008, Americans will give $2.73 billion to help those in foreign countries feed themselves and their family.

“Food for Progress”

For those that don’t believe $2.73 billion is enough, more numbers follow. For instance, according to Michael Yost, the administrator of the Foreign Agricultural Service, in 2007, the USDA initiated 21 food for progress (FFP) agreements in 15 countries. This provided $120 million. In 2006, Catholic Relief Services gave 4,400 metric tons of U.S.-donated food to feed over 32,700 students in 658 elementary schools in Honduras. This totaled $3.4 million. Food rations were also given to over 13,000 children up to five years of age and 7,000 pregnant women and new mothers. Expenses also come from other things such as 120 gardens and fish ponds, income for schools, training for teachers, sanitation systems and infrastructure for 77 of 100 of the neediest schools with work continuing at the final 23.

In 2006 in Guatemala, an FFP agreement used 8,000 tons of U.S. soybean meal and 2,000 tons of U.S. tallow to support a microcredit program. This created $3.2 million in revenue. This money was used to initiate a banking program which could provide loans for women. These loans allowed women to begin businesses to better support their families.

Another program, the McGovern-Dole, has given food, money and assistance to reduce hunger and improve education. Since 2000, more than 22 million children were fed in 41 countries. A third program, Trade and Investment Missions (TIMs), has the specific goal of increasing trade and investments in new markets around the world. Since 2005, new trade has produced $45.8 million in countries such as the Republic of Georgia and Kazakhstan and all parts of Africa.

As for Iraq and Afghanistan, in 2009, the U.S. is slated to spend $12.5 million to support farming, agricultural development, USDA volunteers and livestock management. Agriculture is a major force in these countries since 80% of Afghanistan’s population is involved with agriculture or livestock. In Iraq, agriculture is the second largest revenue source for the country’s gross domestic product. These industries employ 25% of the working population and are the largest Iraqi employers. To provide more money, the USDA has established a “Stocks-for-Food” program where government-owned commodities are exchanged for food aid. According to Yost, this new program is giving $120 million and has put $100 million in The Emergency Food Assistance Program. More than $20 million has gone to help 650,000 mothers and children in multiple countries.

To meet unexpected needs in Africa and other countries, President Bush has made another $200 million immediately available through the P.L. 480 Title II Program. In 2008, $850 million was given through this program with $395 million available in 2009.

Enough Blame to Go Around

Many times, populations starve not because of a lack of food but because food is mismanaged by the government. According to the biography Mao: The Unknown Story, in 1953, Mao took control of the food supply in order to export almost all of it to pay for his Superpower Programme. This program was established to satisfy Mao’s desire to “control the Earth.” According to Mao, the population only needed “140 kg of grain, and some only…110.” This is less than half the amount considered necessary for basic survival. He responded to the peasant’s pleas for more food with “educate peasants to eat less, and have more thin gruel.” While 30 million people died during peacetime due to this program, after 1958, 40 million died due to his “Great Leap Forward” plan which tightened his stranglehold on the country’s food resources.

More recently, a new problem has developed from genetically modified (GM) food. While much of America’s food sources are modified to produce more, faster, larger and cheaper, many countries have great disdain for GM foods. It would seem that if a population is starving, that any food aid would be happily accepted. In 2002, however, Zambia refused to receive GM corn provided by the UN’s World Food Programme even though they were facing a famine. In 2004, Hugo Chavez initiated a total ban on GM foods in Venezuela. In 2005, the Hungarian government refused GM corn even though it was authorized by the EU. Many would point out that the citizens refuse to eat such GM food, leaving the government blameless. Either way, millions are unnecessarily starving. (Read Jennifer Bunn’s blog on genetically modified foods for specifics.)

When one looks at the amount the U.S. contributes to help those in need as well as the roadblocks many of governments initiate to prevent food from getting to the people, one has to wonder why people are so willing to fully blame the U.S. for world hunger rather than lay at least some blame on the governments and people themselves.