| January | 03 |
| 2005 |
Madsen Pirie makes a series of important points about the 'causes' of poverty:
• There are no 'causes of poverty.' It happens naturally when you do nothing. It is wealth that has causes.
• Poor countries are not poor because others are rich, but because they are not rich themselves.
• Rich countries have created nearly all the wealth they enjoy, and poorer countries could do likewise.
• Humanitarian aid is a worthwhile way of helping to tackle such things as conquest of disease and access to clean water. By contrast development aid to invest in industry is less successful and less worthwhile, especially as it is usually directed by governments.
• The gap between rich and poor countries is less important than the attainment by poor ones of enough wealth to lift them from deprivation and give them access to sufficient food, water, healthcare and education.
• The wealth-generating process is robust enough to withstand many things done wrong in a country. It cannot, however, survive genocide, civil war and socialism.
• Corruption is endemic in many poorer countries because without a vigorous economy, political and bureaucratic careers are among the few avenues open to advancement.
• Trade barriers do more harm by rich countries than all of the good they try to do. We could help counties lift themselves from poverty by buying their goods.
• Foreign investment can greatly accelerate economic growth and development.

MessageSpace
Superb. PJ O'Rourke couldn't have said it any better. An absolutely lucid and correct reading of the rich and poor. There isn't a set amount of wealth in the world, and if you get a lot, that doesn't rob me and mean I get less. It means if you get a lot, that creates more wealth. As O'Rourke said: When the water level rises, all our boats go up.
You mean to say that Madsen Pirie is recognised as some superior authority for coming up with that?
"We could help countris lift themselves out of poverty by buying their goods..."
"Foreign investment can greatly accelerate economic growth and development"
and, to paraphrase the second bullet point - "poor countries are poor because they are not rich"
That's the sort of stuff that Peter Sellars as Chance the Gardener came up with in 'Being There'
It seems that if you've got a slightly odd name, and habitually wear a bow-tie you can come up with this sort of sub- A' Level meandering and have it lauded as being 'important'.
Mark
There is no harm in restating the true-but-obvious, especially when the news is full of UN and NGO do-gooders spouting economic nonsense.
Pirie's piece went on to say that Blair and Brown have failed to deal with the CAP which is the single most damaging block on the advancement of many poor nations.
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