Bread Blog

The Munk Debate on Foreign Aid

 

Monday night, Munk Debates held an incredibly interesting debate on the effectiveness of foreign aid, in response to the growing allegations from many scholars that aid in fact amplifies the problems of the developing world. The debate took place between four leading voices in the discussions on poverty reduction and foreign aid: Dambisa Moyo, Hernando de Soto, Stephen Lewis, and Paul Collier. While the debate was formally set up to be Moyo and de Soto against Lewis and Collier, in reality it emerged to be an ideological debate between Moyo and Lewis, with Collier bridging a sort of middle ground, and de Soto on everyone’s side but advocating a different approach to the argument.

The debate was well run and civil (for the most part), which allowed each of the participants to develop their argument and respond effectively to their opponents. Lewis outlined the amazing victories of aid, such as decreasing child mortality and the HIV/AIDS death rate, building schools, decreasing hunger, reducing malaria, vaccinating children, and providing education. He also preemptively addressed Moyo's argument by pointing out that in the last 10 years aid has become more focused and active among the people rather than just being handed out to the government, increasing its effectiveness and advancing towards the goal of decreasing poverty. Hernando de Soto’s remarks gratefully thanked all of those who advocate for aid and selflessly give so much to developing nations, but stated that that is not enough. Capital needs to be raised by introducing property rights and protecting business deals, as well as helping the poor.

Collier entered the debate stating simply that aid is a useful tool, but not the only one. Aid should be used in conjunction with improvements in other areas (security, trade, and governance) in order to bring the “Bottom Billion” up to converge with the rest of society. Furthermore, aid needs to be targeted and conditioned to the accountability of the governance of a particular nation. Finally, Dambisa Moyo outlined her argument on the evils of aid, stating that Africa is poorer now than it was 40 years ago despite $1 trillion of aid. Moreover, aid has decreased growth, fueled corruption, encouraged inflation and debt, killed entrepreneurship, and destroyed the export market. She ended by stating that her argument was not for immediate, direct removal of aid, but rather a weaning off of it, for no other nation in the world has ever risen out of poverty with an indeterminate amount of aid.

This debate was particularly interesting because both sides were arguing very similar ideals, just in different ways. While it is most likely true that Moyo would not oppose to complete removal of aid, she does argue for a weaning and a transition, something Lewis agrees with simply on a different time scale. Furthermore, they all agreed that the situation in Africa is not sustainable, aid cannot be indeterminate and it must be done in addition to other techniques. Aid should also be targeted towards increasing sustainability through encouraging entrepreneurship and infrastructural development. Finally, the African leaders must take ownership of their own development, accountability for their actions, and leadership in their affairs in order for their nations to emerge from poverty.

- Kaj Pedersen is an intern with the Pasadena Office of Bread for the World.  He is a student at Claremont McKenna College.

Parade Magazine and Foreign Aid

We often find good resources for our anti-hunger advocacy work in the Sunday newspaper.  Often those resources come in the form of an Op-Ed column in the opinion page or a feature on page 6 or 7 or 8 of the front section.  This Sunday I found that great resource in a chart published by Parade magazine. 

Since many of the Sunday newspapers around the country carry Parade (buried in the mass of glossy advertisements), you might have already seen the chart.   It's in the section called Intelligence Report on page 8, with a big headline above the chart entitled Who Gets U.S. Foreign Aid. 

As many of us already know, our 2009 Offering of Letters is going to push for a reform of foreign aid. Our effort is going to place an emphasis on making U.S. foreign aid more effective and getting assistance to those who need it the most. 

We don't know yet what approach our Bread government relations and organizing staff is going to ask us to take when contacting our members of Congress. But it's very useful to know a bit of background on what policies our country has followed in regards to foreign until now.  This is where the chart is very instructive.  It lists the top six recipients of foreign aid (Israel, Egypt, Pakistan, Jordan, Kenya and South Africa) and the purpose for which the aid is used.  In the case of the first four countries, the words "weapons" and "security" are prominent.  In the next two, Kenya and South Africa, the key word is HIV/AIDS.  If you view the online version of the chart (by clicking on the title), you can get links from the U.S. State Department to information on the next four countries: Mexico, Colombia, Nigeria and Sudan. 

I found this chart very interesting.  I already knew the basic trends, but I didn't have many of these figures handy.  I know that it's going to be very useful background in my Bread for the World advocacy work in 2009.

Items in a Basket: The Poverty Line

As Washington continues to debate the bailout package for Wall Street, we turn our thoughts to an outdated poverty line and main street.            

Ever wonder how the government determines the poverty line?  They use a hypothetical consumption basket to determine if an individual or family has the resources to meet the basic needs for healthy living.  The hypothetical consumption basket used today is still based on a 1964 shopping list that does not take into account modern needs which include out of pocket medical expenses, child care and transportation, as well as the typical housing, clothing and food.  Ratios of the real price of these items need to be updated and based on current consumption patterns.  Neither does the basket take into account which area of the country one goes shopping; the cost of living in Washington D.C. and the cost of living in rural Washington State have two different price tags. 

Rep. Jim McDermott of Washington State introduced the “Measuring America Poverty Act of 2008” into congress (H.R. 6941) last week.  The bill would revise the standard measure of poverty to better reflect modern realities.  Bread for the World supports this legislation.  Recently even the global poverty line was revised to create a better understanding of real poverty in developing countries to better address solutions to combat hunger. It’s time the U.S. took the same step.

* Photo by Gene Krebs

Your Gift of Citizenship

“Woe to you, scribes and Pharisees hypocrites!  For you tithe mint, dill, and cumin, and have neglected the weightier matters of the law: justice and mercy and faith.  It is these you ought to have practiced without neglecting the others.”  MATTHEW 23: 23-24.

Photo by Eric Munoz

    Recently members of the Bread for the World Institute traveled to Ethiopia and saw first hand the devastation of extreme hunger.  In Sub-Sahara Africa too many of God’s cherished children suffer from too little access to the food required to survive.  As recently pointed out in Institute Notes, the Food and Agriculture Organization (FAO) has released new estimates that in 2007 the number of hungry people in the world has increased by 75 million.  In Sub-Saharan Africa where the average person spends upwards to 80% of their income on food, the sky rocketing prices of basic grains are leading to devastating hunger.  In the U.S., increased food prices have hit hardest those with low incomes and those who are looking for work
    Biblically, over and over again, God calls us through his prophets and Son to speak up for the widow and the orphan; to not “neglect the “matters of the law”. In 1 Corinthians 8 we are told, “To each is given the manifestation of the spirit for the common good.”  We can easily view that our citizenship, where we have the freedom and responsibility to influence our elected officials, is just such a gift to be used for God’s good.  As Christians we must use those gifts to remind our leaders through questions on policy, letters of advocacy, and our combined voices that we have a moral imperative to improve the lives of poor and hungry people.
    Bread for the World has launched the Bread Election Action Team against Hunger – or “BEAT Hunger ‘08.” Over 1,000 activists have joined their voices so far to infuse the election with dialog about hunger and poverty both at home and abroad.  We are using our gifts of voice and citizenship by attending candidate appearances around the nation and asking each candidate about their policies on issues that affect the poor and hungry. We must demand real solutions to injustice to see a real change.

"Africa's Last and Least"

The Washington Post has covered the global food crisis for the past two months.  They provide some excellent resources for learning and educating others about the crisis.  Visit the website to read stories of families around the world and how they are coping with the rising cost of food.

On Sunday, Kevin Sullivan reported the story of Fanta Lingani from Ouagadougou, Burkina Faso.  When you consider that Lingni's earnings are less than $10 per month, it puts a few things in perspective.

On her way to the market, Lingani explained the ugly math: A year ago, she could feed her entire family a nutritious meal of meat and vegetables and peanut sauce for about 75 cents. But now the family gets much lower-quality food for twice the price.

She said the cost of six pounds of cornmeal has risen from 75 cents to $1.50. A kilogram -- 2.2 pounds -- of rice cost 60 cents last year and costs a little more than $1 now. Other basics such as salt and cooking oil have also doubled in price.

How much does your bread cost?

Image from j.fisher. Use by Creative Commons license.

This fact is from our weekly legislative update at Bread: 

The cost of food at home went up sharply last month, rising 1.0% in June, compared to a 0.3% increase in May. The cost of food at home was 6.1% higher in June 2008 than in June 2007. Grocery prices have gone up as much in the last six months as they did in all of 2007.

Higher food prices are especially severe in some staple foods, with a variety of products seeing double-digit food inflation compared to a year before. Bread and butter items – literally – are experiencing the greatest inflation. Compared to a year ago, the price of bread was up 15.9 percent, butter 12.3%, cheese 14.7%, flour 21.1%, and eggs 23.2%. Rice was up a whopping 27.6%.

Have you noticed a rise in your grocery bills compared to last year? How are the higher prices having an impact on your community?

Voices from the Field

There are some excellent blog posts about the global food crisis.  Compassion International's blog features a post from their staff, Karen Wright, who visited Tanzania.  She claims the global food crisis is not necessarily global, rather experienced differently in local communities.  She writes:

"For the woman I met in Tanzania, the increased cost of food meant her children could feed themselves or they could feed their mother in her illness. That’s a burden no child should have to carry. Sadly, I fear this story is not unique." Karen Wright on Compassion International's Blog

Masimba Biriwasha writes some incredibly thoughtful posts over at EcoWorldly.  One of his recent entries, "Where's All the World's Food?" focuses on short and long-term solutions to the food crisis.  I appreciate how he connects the larger political solutions to the personal story of Thai Rice farmers.

"With increased political will, fair trade and investments into agricultural systems, hopefully rice farmers in Thailand will, once again, have nights filled with sleep unafraid of waking up to a bare rice field harvested by some unscrupulous characters bent on making a quick dollar. "

Are you reading other blogs or news sources that you've found helpful on this topic?  Feel free to share in the comments.

Global Hunger Crisis

The USDA published its Food Security Assessment this month.  It reports a rise in hunger around the world.  Institute Notes discusses the report and some of the implications of these findings. 

In the past couple years, we witnessed great progress in the battle against hunger.  People were getting on the first rung of the ladder - making their way out of poverty.  Yet, the rising cost of fuel and food is having a tragic impact on some of the world's most vulnerable people  It's tough to process a set back of these dimensions.  In many ways, this report provides a greater sense of urgency in our work.  We have seen progress.  We know it can be done. Read more about the current crisis.

I've spoken with a number of Bread for the World members in the past month about the global food crisis.  I've asked them, "What are your churches doing in response to the global hunger crisis?" and I'm encouraged by their response.  Many communities are increasing their contributions to development projects around the world.  Others have responded to the immediate needs of their community by opening up the church food pantry more often.  This fall, some churches will organize an Offering of Letters and communicate their concerns to their members of congress. 

What is your church doing to respond?  How can we support you in your advocacy efforts?

Food Crisis to be discussed in Rome Next Week

Jacques Diouf, the head of the United Nations Food and Agriculture Organization (FAO), called a global summit late in 2007 to provide an opportunity for world leaders to discuss the food crisis. Reuters reports today that Diouf asserts that "It's time for action." Diouf noted that "[the hunger crisis] is not an issue like HIV/AIDS where you need some research breakthrough. People know what to do."

Reuters affirms that a combination of factors, including poor harvests, low stocks, and rising demand have combined to produce rises in food commodity prices - a highly unanticipated event. A recent report from the FAO notes that food prices will remain high over the next ten years, even if modest decline occurs. Currently, there are 850 million people in the world suffering from hunger, and this crisis expects to push 100 million more people into hunger and food insecurity.

As the World Bank pledges $1.2 Billion in loans and grant financing to combat this crisis, delegates from 151 countries will gather in Rome from Tuesday to Thursday of next week to discuss poverty and hunger-related issues. However, Rueters notes that underlying issues including free trade, biofuels, and genetically modified organisms will reveal divisions among countries during this event.

Josette Sheeran, head of the World Food Program (based in Rome) stated that the crisis should be seen as "a wake up call to act now to defeat the plague of hunger once and for all."

As these world leaders meet to discuss the crisis, you can engage in the discussion with your faith community by joining Bread for the World's Recipe for Hope campaign. By signing up here, you will have access to educational resources as well as opportunities to engage your church, school group, family, and friends in discussions that seek to inspire your elected officials to act on behalf of the hungry and poor in the world. If you would like more information on legislation and opportunities to respond to the rise in global food prices, contact your local Bread for the World office.

Recipe for Hope: Respond to the Hunger Crisis

You can make a difference in the global hunger crisis.

It's in the news nearly every day: Food prices are soaring worldwide. More low-income people in the United States are making trips to food banks, whose stocks are quickly depleting. In developing countries, for the world's poorest people—who spend up to 80 percent of their income to buy food—the situation is even more devastating. 

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But you have the power to be part of the solution.  JOIN THE CAMPAIGN

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For six weeks, from Mother's Day through Father's Day, Bread for the World will conduct an online campaign to help hunger activists raise awareness and take action. Each week, an email from Bread will offer the ingredients for:

• Recipe for Despair
  More information on the causes of this crisis; and a


• Recipe for Hope
  Specific actions you can take to help end it. You can also invite your friends to join the campaign.

It's easy to feel helpless when you watch people around the world suffering for lack of food. Be part of the Recipe for Hope, and be part of the solution.

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JOIN THE CAMPAIGN 

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Learn more about rising food prices and the hunger crisis.

Read Bread's press release on the Recipe for Hope and invite your friends to join on Facebook.

We'll also be updating the blog during the six-week campaign with the actions we'll be urging folks to take - thank you in advance for joining!  It's quick and free to sign up, and it matters - right now.