Posts Tagged searchers

Bono Abandons Babel?

U2 singerThere’s been a bit of buzz over Bono’s recent remarks about the positive role of markets in reducing global poverty and spurring economic development (HT):

The Irish singer and co-founder of ONE, a campaigning group that fights poverty and disease in Africa, said it had been “a humbling thing for me” to realize the importance of capitalism and entrepreneurialism in philanthropy, particularly as someone who “got into this as a righteous anger activist with all the cliches.”

“Job creators and innovators are just the key, and aid is just a bridge,” he told an audience of 200 leading technology entrepreneurs and investors at the F.ounders tech conference in Dublin. “We see it as startup money, investment in new countries. A humbling thing was to learn the role of commerce.”

I’m a bit skeptical about the broader significance of these remarks on Bono’s activism, but I do think they’re illuminating. Over at the Acton Institute, I argue that Bono’s new humbled attitude is precisely what we need in our attempts to improve economic development:

Although I’m not overly confident that Bono’s sudden self-awareness is enough to radically shift his aid efforts away from fostering dependency, this small admission helps illuminate one of our key obstacles to doing good in the world: overzealousness paired with overconfidence.

Bono describes his realization as a “humbling thing,” and “humbling” is precisely what the foreign aid experts and economic planners could use. As Friedrich Hayek famously wrote, “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.” As the story of the Tower of Babel well confirms, man has a natural disposition to think he knows more than he knows and can construct beyond what he can construct—all to make a name for himself. The juice of righteous anger is a powerful enabler, and once it’s pumping through our veins it takes even less time for our human tendencies to escalate. After all, we’re only out to deliver humanity to heaven’s doorstep.

Such overconfidence in our own designs can be particularly destructive in the realm of economics, a science that’s in a constant battle over whether it should seek to explain human action, control it, or bypass it altogether. Such planners find a perfect match in eager activists such as Bono. “We can build your tower to heaven,” they’ll say, “and you can make a name for yourself. If only the right policy buttons are pushed and the right economic equilibrium is arranged, the world can be set to rights.”

Of all people, Christians should be aware of the deeper spiritual questions we should be asking, cautious not to be wise in our own eyes:

The economic engineer’s intrusion goes well beyond barging into more natural and effective social institutions. For in doing so, he treats dignified man and the unpredictable, invaluable relationships in which he engages as the mere mingling of predictable pieces in a larger static game. Such an intrusion should cause great alarm for those of us seeking restoration among the suffering. For how can we hope to improve conditions for the human person if we skip past what it means to be a human person? For the Christian in particular, God instructs each of us to do what the Lord wills. Are we really to Read the rest of this entry »

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Free Markets as a Fruit of the Gospel

fruit merchantIn our discussions of the pros and cons of various socio-economic models, Christians have a common tendency to forget what should be our more fundamental aim: spreading the message of salvation through Jesus Christ and living as Christ would have us live.

In a recent post, Doug Wilson helps us remember (HT), noting that we should stop critiquing such systems in and of themselves—i.e. separated from the reality of sin and the project of salvation—and focus instead on how they impact each individual when it comes to realizing the life-giving freedom Christ has made possible.

As Wilson explains it:

I have written many times that free markets are for a free people, and that only a free people can sustain them. But slaves to sin cannot be a free people. And the only way to be liberated from slavery to sin is through the gospel that brings new life.

Another problem is that when slaves to sin spiral down into the civic slavery that is their natural civic condition, their masters will also be slaves to sin, albeit usually somewhat shrewder — at least for a short while. At some point the whole thing blows up for everybody, but the bottom line is that sin is the fundamental set of chains. You cannot hope to be enslaved by them, and yet be free in any sense that matters anywhere else.

Hayek, Friedman, and von Mises cannot keep people loving the freedom of markets any more than the wisest geologist who ever lived could have kept Cain from hitting Abel with that rock. Knowledge of the world is not the same thing as knowledge of the human heart.

…Other foolish observers within the Christian tradition have seen that this is true, and concluded that the problem lies with Hayek, et al. “We need to have values other than free market values, etc.” This is to say that since sinners cannot produce the fruit of the Spirit, we need to haul out the chains of compassionate statism. Make ‘em do compassionate stuff and everything….

There is no salvation without a savior, and Jesus is the only savior. And how will they hear without a preacher? What we need is the gospel, what we need is a reformation, what we need is revival.

But although our political systems and economic models can’t produce revival by themselves, they do make a difference in how we interact and what we pursue. This is where our discussions need to begin.

The damaging impacts of top-down control are a bit easier for Christians to understand when we observe various governments shutting down churches and persecuting Christians in the streets on the basis of their faith, but what about when the government shuts down, redirects, or prohibits a variety of our day-to-day economic activities? When the government seizes an industry or moves money around to fund Entrepreneur X instead of Entrepreneur Y, What might such a government be preventing or distorting in terms of Christian initiative, creativity, and collaboration? Are we always to assume the Bureaucrat Z is the preferred oracle of Jehovah?

Fundamentally, we must reject the materialistic, deterministic worldviews of self-anointed economic planners of all varieties. If Christians are serious about spreading the truth, we should go about offering the Read the rest of this entry »

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Instagram, Innovation, and the Almighty Government 8 Ball

Instagram, Government 8 BallThe makers of Instagram, a popular iPhone photo-sharing app, recently sold their company to Facebook for $1 billion. The company was founded a mere 18 months ago by a pair of twentysomethings. It has only 12 employees and brings in no revenue. No big deal.

This week at Values and Capitalism, I look at the story through a broader lens, pondering the implications of such sudden, unexpected technological changes and successes, particularly on those who think prosperity comes from creating five/ten/twenty-year plans to boost Industry/Company/Product X.

Here’s an excerpt:

The problem for the predictors and planners is that despite whatever economic or moral arguments they so cunningly concoct to justify shoving widgets X, Y and Z down our throats, one big, stubborn, complicating reality persists: as innovation continues, needs and desires change.

You can shake the Almighty Government Eight Ball all day long, but even if you get it right and are able to calculate some end-game net profitability for artificially propping up Failing Company X or Greenie Wizard Lab Y, who knows if such a plan will stay workable or cost-effective by tomorrow? Obama can toot the Subsidize Wind Farms horn till the ears of his great grandchildren are bleeding with debt, but what happens when Engineer Suzie wakes up the next morning with an idea for a cheaper, greener, more effective solution? Sorry Suzie, but we’ve already rolled the dice.

Yet this, I argue, is more than just an economic argument:

If you haven’t noticed, this is a clear economic problem (e.g. ethanol), yet coming at it from that angle will be unlikely to influence many progressives, whose positions, whether they admit it or not, rest mostly on rash-and-puffy moral superiority and a quest for control (e.g. “Smart Cars contribute to the common good, not your cute little digital Polaroids”). I’ll save those arguments for another day, because within the economic argument against this contorted game of Pick Your Favorites lies a different moral message about the way we view humans and human potential.

In short: Needs and desires change because people change.

To assume that the government can successfully pick winners and losers economically—whether with products, business or entire industries—is to assume that we humans live, or want to live, in a static world filled with static individuals who conceive of themselves in static terms. We will always buy what we currently buy, know what we currently know and pursue absolutely nothing of real value unless ole Goodie Government tells us otherwise.

But that’s not the way humans are, or, at the very least, that’s not what we were intended to be.

As much as folks might want to wield our semi-free economy toward constructing temples to Gaia and propping up eat-your-veggies initiatives, the market is or should primarily be about facilitating human engagement and human interaction. Such facilitation is integral to empowering human vocation, which should primarily informed by God and any on-the-ground cultural, social and religious institutions. All those select progressive “moral” causes might be fine-and-dandy as individual vocations in individual markets on any individual day of the year, but who is to say they are better or more desirable than innovating a new way to use our smartphones? (Don’t answer that, Joe Biden.)

To read the full post, click here.

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The Scope of the Gospel: Balancing the Spiritual and the Social

Wedding at Cana, Paolo VeroneseI have written numerous times about the tendency within human nature to embrace the Love of Man rather than pursue the Love of God. Even in our striving for compassion and through our attempts to help the needy, we tend to execute a Godly imperative according to our own debased ways.

As Russell Moore explains it in a recent piece, the tension often plays out as being between evangelism and “public justice” — spiritual transformation vs. social reconciliation. Yet this tension, Moore argues, need not be a conflict, and in turn, cannot be resolved through an “either-or” solution.

As Moore explains:

[The mission of the church] is summed up in the gospel as a message of reconciliation that is both vertical and horizontal, establishing peace with both God and neighbor. The Scripture tells us to love neighbor “as yourself” (Lk. 10:27-28).

Sound familiar?

Indeed, the call of the church is not to be founded on some gnostic, dualistic divorce of the spiritual and material – whether or not one prefers one or the other. Jesus didn’t spend all of his time praying on the hillside for soul-winning, yet he also didn’t perform physical miracles and wonders without transcendent, spiritual demands and implications.

This is not simply a “spiritual” ministry, as the example Jesus gives us is of a holistic caring for physical and economic needs of a wounded person, not to mention the transcending of steep ethnic hostilities. As theologian Carl F.H. Henry reminded evangelicals a generation ago, one does not love oneself simply in “spiritual ways” but holistically.

Of course, Jesus’ ministry would be about such things. After all, the Bible shows us, from the beginning, that the scope of the curse is holistic in its destruction—personal, cosmic, social, vocational (Gen. 3-11) and that the gospel is holistic in its restoration—personal, cosmic, social, vocational (Rev. 21-22). (emphasis added)

Moore then points to a similar(/interrelated) tension in the church as an example of Read the rest of this entry »

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You Can’t Plan a Market: Transforming Culture from the Bottom-Up

The White Man's Burden by William EasterlyWhy has post-Soviet Russia not panned out to be the bustling, prosperous economy that the freedom folks predicted it would be? Is this the fault of the free market, or is there something deeper at work?

This week at AEI’s Values and Capitalism, I examine the question, channeling economist William Easterly to make the case that “you can’t plan a market.”

Although many Western tinkerers wrongly ignore the structural limitations in improving developing economies, many on the opposite side make the mistake of pretending that the structural stuff is a cinch.

I argue that it isn’t:

In our modern, polished system (with the wear-and-tear steadily increasing), we are tempted to look at other countries and think their problems are simple enough to be fixed by scribbling a couple solutions on paper and circulating it through the right hands. Even for free-market types, there is a rash assumption that all it takes is a magical structural concoction and a semi-functional government to get a poor country in motion.

Forget the individual habits and beliefs of the people on the ground. Forget the spiritual and cultural factors that limit or propel that society forward. Forget the psychological damage caused by previous (or current) totalitarian rule. “Just give them a market,” we say, “and let them be.”

As I say in the piece, “spontaneous order is not spontaneous order unless it is spontaneous.” Even in America, lest we forget, our thriving economic system did not come from the wave of a magical capitalism wand. Look no further than the 19th century to behold the painful and chaotic emergence of what we know today (and appreciate it).

To demonstrate this lesson, Easterly’s book points to several key market components that are difficult to “invent,” particularly from the top down: trust, property rights, social relationships/unity, peace, etc.

Such features — what Nick Schulz and Arnold Kling call “intangible assets” — must originate from Read the rest of this entry »

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Planners and Searchers: Locating Demand Among the Poor

farmer, foreign aid, development, AfricaIn today’s post at Common Sense Concept, I summarize economist William Easterly’s marvelous dichotomy of planners vs. searchers.

Here’s the gist of the contrast:

The planners are the high-level organizers, sitting comfortably in their air-conditioned offices as they crunch numbers and try to plan their way to global prosperity. The searchers, on the other hand, are the folks on the ground, working effortlessly to locate direct needs, collaborate with on-the-ground resources, and create value.

The deeper issue, in my opinion, is that we need not confine such a contrast to matters of economic development. We as Westerners also need to transform our worldview to being that of a searcher.

Here’s another excerpt:

We as individuals, moral agents, and Christians, must become the searchers ourselves. Like an entrepreneur launching a new business opportunity, we need to get as close to the demand as possible. We cannot rely on a “fail-proof” plan for eliminating poverty. We cannot cower to a policy that promises to make the proper transfers on our behalf. Instead, we must expose ourselves to the searching process.

To read the full post, click here.

Read the rest of this entry »

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Environmental Entrepreneurship: Plastic Bags in Nairobi

When the environment gets neglected, we hear that government needs to take action. When the economy goes down the tubes, we are told that bureaucrats must come to our rescue.

But for Evans Githinji, a 32-year-old entrepreneur in Kenya, achieving prosperity and exhibiting proper stewardship is simply a matter of imagination and initiative. Kenya’s economy is far from thriving, yet Githinji has found a way to both curb environmental harm and bring value to his economy despite his disadvantages.

Hear his story here:

As the video tells us, Githinji’s efforts have led to the opening of 23 collection yards, each of which employs 100 youths in collecting plastic bags.

“I feel great,” says Githinji. “And I feel I’m doing something good for this nation.”

But would it have been better if the Kenyan government had stepped in long ago? Would it have been more efficient if taxpayer money had been poured into dumptrucks and garbage collectors? Would the government have a better grasp on wage rates than Githinji does? Would it be better for Kenyans if the government banned Read the rest of this entry »

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From Poverty to Prosperity: Human Ingenuity and the Triumph over Scarcity

From Poverty to Prosperity: Intangible Assets, Hidden Liabilities and the Triumph over ScarcityLet’s say there’s an apple. I want to eat the apple and you want to eat the apple. Both of us can’t eat the same apple. We can divide it. We can determine who is more hungry. We can figure out who is willing to pay a greater price for it. We can find out who wants the core and who wants the seeds. But no matter how much we deliberate, we cannot share the apple in its entirety.

Economics used to be about how to distribute the apple most efficiently, but the world is changing. Although physical resources remain scarce, human innovation has flourished to the point where we can do much more with much less, and few have bothered to explain how or why.

Arnold Kling and Nick Schulz try to tackle this phenomenon in their new book, From Poverty to Prosperity: Intangible Assets, Hidden Liabilities and the Lasting Triumph over Scarcity. In the book, the authors try to grasp this new way of thinking by terming it Economics 2.0. Where Economics 1.0 saw the market as a means for allocating scarce resources (e.g. apples), Economics 2.0 sees the market as a mechanism for channeling innovation and triumphing over scarcity.

In the beginning of the book, the authors use laundry (of all things) to illustrate the difference. Economics 1.0 would try to explain how it might be more efficient for you to outsource your ironing to someone else. Economics 2.0, on the other hand, doesn’t look at the tangible items in the equation (the number of shirts, the cost of an iron, the cost of dry cleaning, etc.). Instead, Economics 2.0 is primarily concerned with the potential for innovation. For example, what about permanent press? What about wrinkle-free shirts?

As the authors explain:

Thanks to technical progress, many shirts today do not need to be ironed at all. Perhaps in another decade or two they will not need to be washed. Given the likely progress of nanotechnology, there is a good chance that shirts manufactured in 2020 will be ‘permanent clean.’ That’s Economics 2.0.

Another way to look at this is through what Kling and Schulz call the “software layer” of an economy. While Economics 1.0 is concerned with tangible inputs like labor and capital, Economics 2.0 is concerned with the intangible factors, such as collective intelligence, the existence of property rights, and levels of corruption. You can have all of the right hardware for a Read the rest of this entry »

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Human Trafficking in Moldova: Q&A with Missionary Patrick Stitt

The Stitt Family

The Stitts (from left to right): Patrick, Kalyna, Finnian (2), Jack (3), and Levi (1)

I have the great privilege of knowing Patrick and Kalyna Stitt, who will be shipping out in June to be missionaries in Moldova. The Stitts will be working through the Home of Hope to curb human trafficking in the country and help bring spiritual and physical restoration to its many victims.

Human trafficking has been at the forefront of global discussion lately, and for good reason. Innocent women are being sold or duped into sexual slavery, and it is having a devastating impact on those involved. There are currently many high-profile efforts to eradicate the sex trade, but most have been highly ineffective and counterproductive. After all, sexual slavery is, in many ways, a cultural epidemic, and top-down organizations usually have a pretty difficult time influencing cultures for the better.

What I love about the Stitt family is how fully they embody the concept of Radical Individualism. Through their own pursuit of God, the Stitts have decided to leave the comforts of America and follow the voice of the Holy Spirit across the world. They are not dwelling in fear or cowering behind earthly securities, but are founding their family’s self-interest in what matters most to God. Such courage, faith, and determination is incredibly inspiring.

Patrick was kind enough to take some time to answer a few questions about their mission, as well as discuss the issue of human trafficking on a broader level. In addition to reading the following Q&A, you can find out more about the Stitts at their website by clicking here or you can donate money to their effort by clicking here or here. If you are interested in hearing Patrick and Kalyna give a more extended version of their testimony and ministry, you can listen to it on our church’s podcast.

Q: What initially sparked your desire to minister to victims of human trafficking?

 
Patrick: I suppose everyone is struck by the idea of slavery and oppression. In particular, I reflected on the suffering of the hopeless — those who are distraught but are without the means to ameliorate their situation. When I learned about the girls and women who are forced into the sex trade I realized that these poor souls were possibly the most forlorn on the earth. But as horrendous as their lot in life is, I realized I wasn’t the man with plan. What can I do? For many years I took the easy route of Read the rest of this entry »

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Coffee in Rwanda: A Lesson in Individual Empowerment

Rwanda Coffee Exports by Unit Value of Destinations

Source: William Easterly / Aid Watch

William Easterly and Laura Freschi recently posted some encouraging words about Rwanda’s coffee industry over at the Aid Watch blog.

According to Easterly and Freschi, there have been some recent signs of success:

“There is preliminary evidence that the coffee industry is creating jobs, boosting small farmer expenditure and consumption, and possibly even fostering social reconciliation.”

In any other country, such progress might seem ordinary or mundane, but as you probably know, Rwanda has had its fair share of economic turmoil. Most are familiar with the tragic genocide that rocked Rwanda in 1994, but Rwanda’s socio-economic woes have roots that go back much further.

When it comes to the country’s coffee industry, Easterly and Freschi provide a brief history:

The history of coffee in Rwanda is intertwined with the country’s political fortunes, and stretches back to the 1930s when the Belgian colonial government required Rwandan farmers to plant coffee trees, while setting price restrictions and high export taxes, and controlling which firms could purchase coffee. These policies helped create a “low-quality/low-price trap” that would bedevil the post-colonial governments that continued similarly heavy-handed policies.

This poor foundation held the country down for most of the century, but it reached its inevitable collapse after the Read the rest of this entry »

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