Is charity working?

[cdn2wheeler]

On another portion of this site, someone's posted a link to a little type of game whereby you match up a word with its appropriate definition. When you get it right, an organization donates some rice to an impoverished part of the world.

This got me thinking about the whole concept of charity.

I think it's certainly laudable that an easy online game such as this can help alleviate hunger in a troubled part of the world. But are we going about this the wrong way?

Instead of sending off bags of rice (or whatever), would it not make more sense to get to the root causes of hunger in the first place? From all I've seen and read, the world can easily feed itself, but conflicts, greed and climate change are getting in the way. As well, charity programs like the UN Food Program, while certainly well-intentioned and are necessary in a crisis, have a tendency to foster corruption and dependency.

In one specific instance, the African country of Zambia was in dire straits. The UN and the world responded, sending supplies, food and funds to that beleaguered part of the world.

But much of the aid never got to where it was intended.

According to reports, official corruption is rampant (see here, here,here and here). Much-needed resources end up lining the pockets of corrupt officials.

Single-crop intensity agriculture might be one of the culprits. Small villages in Africa (just as an example) used to be self-sufficient because they'd grow different crops through the year. Some of those crops would go to feed the animals they raised - cows, chickens, pigs and goats usually - to supply the village with animal protein.

But more and more, they're being pressured into single-crop specialization that they sell to brokers which in turn sell on the wider market, including overseas. This can result in a glut of that crop, depressed prices and the village is kept in a state of near-abject poverty.

For instance, the African country of Cameroon grows some of the best rice in the world. But the locals don't get any; it's all slated for export.

The coffee plantations in south and central American are a prime example of this. Coffee prices have fallen through the floor, and the villages and towns that depend on the income from their coffee continually struggle to feed their families.

So while we enjoy a little word game and feel better about ourselves because some rice has been donated to a region in trouble, are we really addressing the issue at hand?

Curious to what others might feel about this.

(Yea, I get passionate about this... especially the coffee thing. BUY FAIR TRADE COFFEE!! It's better quality and provides a decent living to those who grow the stuff.)

[Zukin]

William Easterly has an interesting perspective on foreign aid:

William Easterly

David Weil's textbook on economic growth is also very good. As he says, "There is a negative correlation between the degree of corruption in a country and the GDP per capita."

If the international community is truly committed to helping poor countries improve their economies, corruption must be stopped.

[robertanthony]

There is a site called the hunger site were if you click a button it buys food and costs you nothing. Lots of people are doing it. I suppose if advertising can buy food then it's a good thing.

[openeyes]

Like all things, I'd say it depends on the charity. Some may work, while others may be doing more harm than good. In Adventure Capitalist Jim Rogers mentions that much of the food and clothing sent to Africa as charity ends up being sold in the marketplace. Being able to sell at a lower price than local products, farmers and tailors essentially go out of business, and in many areas an entire generation has passed where even though the fields are fertile, people may no longer know how to grow their own food. They've become dependent on the international welfare system.

One charity I've given to for a few years now is Heifer International. They give farm animals to people, train them in caring for them, and have them pass some of the offspring on to other locals.

Charitable Gift Giving that Makes a Difference | Heifer International