Bono Yet to End Poverty, Still Wears Sunglasses Indoors

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Despite credentials clearly polished enough to have been considered for the World Bank's top post, not everyone agrees that his view of free trade economics and countries like, say, Ghana, are the best for all involved. Including someone from Ghana:

Rock stars and charities can be powerful advocates for good causes, and they generally have good intentions - but in many cases their lyrics do not genuinely rhyme with the silent hum of the very poor they seek to protect. Their economics are just plain wrong. They ignore history, peddling the misguided belief that poverty, famine and corruption can be solved with foreign aid, debt relief and other policies that have already failed Africa.

One pillar of their current campaign is to eliminate farm subsidies in western countries, a noble goal which indeed would help to achieve a level playing field for agricultural producers around the world. Yet this view is rife with hypocrisy: the same organisations promote subsidies (what they call "fair trade") for farmers and businesses in poor countries to shield them from the effects of competition.

Coldplay frontman Chris Martin has said that Ghana's rice, tomato and poultry farmers need to be protected from cheap imports. Yet the problems of Ghana's farmers lie elsewhere: they and other entrepreneurs are stifled by punitive tax regimes and the high cost of capital, not to mention our disarrayed land tenure systems which lead to low crop production.

Here's a particularly interesting bit:

Protection for local producers also means that African countries trade very little with each other, as illustrated by the World Trade Organisation's 2001 statistics. Africa's share of intra- and inter-regional trade flows to western Europe alone was 51.8pc, while it was a paltry 7.8pc within Africa.

The author's suggestions for change?

The solution to all that ails us is not aid, debt relief or "fair trade". It is to adopt institutions to harness the entrepreneurial spirit that exists in every African country, to enable Africans to trade with each other and anyone else in the world.

Establishing property rights would be an important first step; an effective, transparent and accountable legal system is another. Combined with respect for private property and the rule of law, these broad reforms would encourage entrepreneurship, trade, innovation and even environmental protection because they empower people - rather than the politicians.

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Yes- I have seen Bono wear sunglassed indoors, but who am I to argue with what works?

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This page contains a single entry by published on April 18, 2005 12:18 PM.

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