Government grants monopoly power all the time, but how can we determine when it's good, and when it's bad?
Can the current model of humanitarian aid generated by networks of large philanthropic foundations, NGOs, and Western governments actually alleviate the poverty of the world’s Bottom Billion, to quote the title of Paul Collier’s book? This podcast with the Acton Institute’s Michael Miller, director of the new Poverty Cure Initiative, puts forward a persuasive case rooted in particular communities in Africa and South America that the conditions for prosperity emerge from our free and relational nature as human beings. Accordingly, authentic help to the world’s poor must not be driven by the notion that the global poor are the objects of wealthy compassion, but that they are the subjects of creative potential. As Miller discusses, the prevalent humanitarian aid model frequently uproots the very beginnings of the circles of exchange that must exist for wealth to be created in these societies. Frequently missing as well in the current approach is understanding how crucial the rule of law, property rights, and markets are in the uplift from poverty, and that frequently, these economic and legal orderings are absent in regions of hardship. Consequently, the conditions for human flourishing don’t exist and cannot be created by large philanthropic interventions, which everywhere substitute parental relationships between the donor and recipient in the place of real human flourishing in these communities.