The Real "End of Poverty"


) Establishment of the Gongali Elites Organization (GEO)

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1) Establishment of the Gongali Elites Organization (GEO)

The Gongali elites have decided to organize themselves to form something like an NGO called GEO that will work with their community. GEO will act as a link between the poor people and the government, donors, institutions, religious communities, and the “blessed” individuals. It will have centralized information on all development projects, and on all national and international poverty-reduction initiatives. The GEO will also collect, structure, analyze, and centralize all information in relation to poverty and the poor. It will collect the opinions of poor people themselves regularly and systematically: regularly giving a voice to these people. The GEO will establish linkages between the opinions of the poor people and public policies. It will help to break down the barriers of misunderstanding that separate the government and the common citizens, and which create segregation, maintain marginalization, and intensify extreme poverty. Thus, GEO has become the first group of the patriotic volunteers to establish and support the Gongali Model. The similar approach will be used to recruit various individuals who will be invited to support the Gongali Model in various developmental sectors.


For example, how to get “patriotic” Teachers for the Gongali High School?

Teachers will be recruited competitively during the promotion of the Gongali Model in Universities, just before graduation. A teacher for the school under this movement must be a patriotic and visionary person with integrated knowledge. He/she must be well acquainted with the Gongali Model. The community may also recruit some teachers and sponsor them for further studies to meet the recommended qualifications. The community will constantly cooperate with the government authorities.


The responsibilities of the teachers under the Gongali Model

i) To perform their regular duties as secondary school teachers

ii) To cooperate with the Gongali Community to train the whole community, particularly the young generation to be well-acquainted with the GONGALI MODEL.

iii) To rapidly spread the Gongali Model to neighboring villages and distant regions efficiently and effectively.



Remuneration for the Teachers under the GONGALI MODEL

i) He/she will live freely in a reputable house built by the Gongali community within the school compound. The community will also do its best to support teachers with various resources such as books, transport, etc.

ii) Remuneration: Preliminary suggestion is that teachers will be paid using a small percentage (based on common agreement with the school board) of the total profit from the school projects under their direct supervision. This will also be an incentive to aim high for mutual benefit.

iii) Teachers will be free to do their personal activities while avoiding conflict of interest with the school/community. Teachers are expected to demonstrate ACTIONS in every aspect – Not just words/theories. Teachers might be shareholders in other economic activities of various groups in the community such as Youth Development Organizations, Women groups, etc. If the GONGALI MODEL is successful in Gongali, then it will be replicated in Karatu District, Arusha Region, Tanzania, and Africa at large! By following this approach we expect to see people’s quality of life improved, similar to the rich people in developed countries, and even more!



2) Establishment of the Gongali Microcredit Bank (GCM Bank)

This is the bank that will provide its services ONLY to the customers who are willing to make seven decisions. A follow-up will be made to ensure that the customers are striving to fulfill their promises/decisions (written in English and translated in Swahili). The system of the GCM bank will be based on the idea that the poor have skills that are under-utilized. A group-based credit approach will be applied which utilizes the peer-pressure within the group to ensure the borrowers follow through and use caution in conducting their financial affairs with strict discipline, ensuring repayment eventually and allowing the borrowers to develop good credit standing. The bank will also accept deposits, will provide other services, and will run several development-oriented businesses. It will follow the well-establish system of the Grameen Bank that was established by Prof. Yunus in Bangladesh in 1976.

Here are the seven (7) decisions of the GCM Bank (MAAMUZI SABA (7) YA GCM BANK)


  1. We will implement the principles of the Gongali Community Microcredit Bank (GCM BANK) which are genuine love, unity, creativity, confidence, hard work, self-reliance, and setting high goals

Tutazitii kanuni za benki ya jumuiya ya Gongali ambazo ni upendo wa dhati, umoja, ubunifu, ujasiri, kufanya kazi kwa bidii, kujitegemea, kuweka malengo ya juu

  1. We will educate our children both our precious daughters and sons to the university level

Tutawaelimisha watoto wetu wa thamani wa kike na wa kiume hadi kiwango cha Chuo Kikuu
  1. We will build decent houses, plant trees, improve roads, and maintain clean environment Tutajenga nyumba zenye hadhi, tutapanda miti, tutaboresha barabara, na kudumisha mazingira masafi




  1. We will have small families that we can afford to take care of

Tutakuwa na familia ndogo tunayoweza kumudu kuitunza vyema

  1. We will be careful about our lifestyle to avoid diseases like cancer, diabetes, etc.

Tutakuwa makini kutunza afya zetu ili kuepuka magonjwa kama vile kansa, kisukari, nk

  1. We will participate in all community activities

Tutashiriki katika shughuli zote za jamii

  1. We aim to have a respectable model community with good living standards

Tunaweka malengo ya kuwa na jamii kielelezo, inayoheshimika, na yenye maisha bora

3) Mobilization Techniques that Attract the Whole Community

Our target is to reach every member of the community. How to achieve this goal? For the Gongali community we realize that religious activities, sports, and traditional dance attract all groups of people. The primary school is a suitable place to assemble the “whole community”. The Gongali community was historically torn apart by politics (CHADEMA and CCM “historical” rivalry) – Now they have joined their hands for mutual benefit which is “to create a new model community” under The Gongali Model. THE GONGALI COMMUNITY HAS DECIDED TO BUILD A HIGH SCHOOL (form one to six). Contributions from various donors may speed-up the project BUT the Gongali community is not solely depending on donations! - Refer to the principles of The Gongali Model. The Gongali Model is also supported by many interested and committed individuals and several NGOs (development partners).

4) Encourage Participatory Approach

The Gongali Model gives full respect to every human being. We encourage every member of the community to contribute or participate in community activities as much as it is possible. For example, we are currently building a high school in Gongali and every member was given a privilege to write his/her promise in a book that was opened for such purpose. Anybody can promise anything BUT we encourage ACTION, BIG THINKING, and SETTING HIGH GOALS. Young generation Primary School Pupils, Secondary School are very important.

5) Setting High Goals and “Unrealistically” Minimum Implementation Period

The Gongali community is determined to accomplish its objectives in the shortest possible duration using the available resources in their surrounding. For instance, when we decided to build a high school in Gongali we gave ourselves only one year. The whole community took this as an urgent project which has to be given full attention. We use examples of other commitments and capabilities eg. Rescuing ca child from prison or disease at any cost; why this approach is not used for education? Eye opener – show possibilities; For example if the whole community of 6000 people decides to go and collect stones for the school then they can build a classroom in one day…..imagine how much will be accomplished after one week……then after one month, then until 2025? – There will be the “real end of poverty” in Africa if this system is adopted everywhere!


6) Maximum Utilization of Networks

We believe that human network is the strongest power in the world in our generation. Networking means telling others about others and others telling others about you. Thus we will forge all possible human networks by all possible means – our friends, institutions, NGOs, Governments, religious communities, and ANY BODY else! We will use various Development partners – Through internet, conference attendance, etc. Religions communities are highly involved. The main denominations are RC Church, Lutheran, Pentecostals, and The Seventh-Day Adventist Church (SDA). The SDA General Conference (GC) Vice President Pastor G.G. Mbwana and other top leaders of the SDA church and other denominations participated in various activities under The Gongali Model.


7) Evaluation, Appreciation, and Celebration

We will regularly evaluate and appreciate various endeavors – Take records, pictures, write, mention in public, foundation stone, museum, etc. Avoid unnecessary criticism and rivalry. We will constantly create a sense of ownership and joy of success. What benefit, future hopes. The whole community, all groups, particularly women, will be strongly involved in every step of our development. Respect, involve and with the government leaders. Strongly involve the various organizations, individuals, NGOs and particularly the religions communities. The INFLUENCE OF RELIOGIOUS COMMUNITIES IS DEEPLY EXPLAINED IN ANOTHER BOOK UNDER THE Gongali Model. This is a “model”; so we need to document every step so it might be emulated elsewhere!




HOW TO SPREAD THE GONGALI MODEL

It should be understood that this is an EXPERIMENT. We expect to develop a prototype that will be suitable for implementation elsewhere! The model will be speedily spread using books (as the one you are reading now), DVDs/CDs, websites, youtube, emails, media (newspapers, radio, and television), pamphlets, and all other possible means. The pioneers of the model will also visit various institutions (public, private, churches, etc) and will conduct public presentations and debates. Another technique is to conduct celebrations of various activities and annual anniversary of the Gongali Model. Most importantly, the BEST way to spread the Gongali Model is by the telling the success stories and prosperity of Gongali – ACTIONS speak louder than words! We encourage “eye witness”! Other communities are encouraged to visit Gongali and learn PRACTICAL lessons. There will be a museum in Gongali that will be available to portray the history and the future of Gongali.



The pioneers of the Gongali Model will support, as much as it possible, any other community that is motivated to implement the Gongali Model. They will provide necessary documents and other resources. We will support any individual who is willing to implement this approach. In particular, the University students will be encouraged to initiate this movement in their local communities. The elites who are coming from the same community are/will be encouraged to form their union/organizations to emulate the patriotic spirit of the Gongali Elites.




MANY WAYS IN WHICH YOU CAN SUPPOT THE GONGALI MODEL
  1. Contribute directly to the Gongali Model to support “any” community or specific development project in a particular community directly or indirectly by supporting the pioneers to spread the movement speedily.


  2. Create some available alternative of “responsible shopping”, that is matching customer contributions one-for-one so turn your $5 contribution into $10 by shopping for items at the great retailers who decide to support the Gongali Model (if you know this system, please connect us to it).

  3. Use social media (email, facebook, twitter) and/or discuss with your family, friends, church, etc about the Gongali Model and ask them to contribute or help you spread the word. If you are really spirited, you could become a member of the team and set a personal goal (say, change one district or at least one community in your lifetime). Then, e-mail your friends & family to contribute directly to your movement.

  4. If you work for a big company, try to see a possibility of matching with their charitable contributions (social responsibility). You may be able to double the contribution with your employer's assistance.

  5. If you own a small business, become a team member and sponsor a portion of the projects under the Gongali Model. There are tons of ways that you can raise the capital for your contribution and the team. For instance, you can donate a portion of your proceeds each year or match your customer contributions. It is a great way to partner with other small business to make a big impact on the lives of the people in Africa.

  6. Educate yourself about extreme poverty, micro-lending and more by purchasing the Gongali Model products such as books, DVDs, T-shirts, etc.

  7. Start your own initiatives and ideas to raise funds - perhaps a run-walk race, a bake sale, selling T-shirts, etc. The possibilities are endless!



APPENDIX 1

SOMETHING ABOUT THE AFRICAN HISTORICAL CHALLENGE (STATISTICS)


  • POVERTY – According to the World Health Organization (WHO 2004), 2.6 Billion people live on less than $2 per day (about 1/3 of the world's population). Of those, nearly 1 billion are living on less than $1 per day. In sub-Saharan Africa, 72% of the people live on less than $2 per day and 41% try to live on less than $1 a day.

  • HUNGER - 854 million people in the world are chronically malnourished. About 300 million of them are children. 6 million of those children die from malnutrition each year.

  • CHILD MORTALITY - Every year, 10 million children in developing countries die before the age of 5. A child dies every three seconds from AIDS and extreme poverty.

  • EDUCATION - In sub-Saharan Africa, only 58% of children finish primary school. There is a huge disparity in girl's education. In fact, more than 40 percent of women in Africa do not have access to basic education.

  • SANITATION & WATER - More than one billion people do not have access to clean water. Four out of every ten people in the world don't even have access to a simple latrine.

  • BIRTH - A woman living in sub-Saharan Africa has a 1 in 16 chance of dying in pregnancy. Compare that with only a 1 in 3,700 risk of dying from childbirth for a woman from North America.
  • LIFE EXCPECTANCY - The overall life expectancy in sub-Saharan Africa has dropped precipitously over the past 10 years from 51 years to 46 years for women and from 47 years to 45 years for men. Much of the drop is blamed on the AIDS epidemic. "Healthy life expectancy in some African countries is dropping back to levels below that of the advanced countries in medieval times. For more details, visit the website of the World Health Organization.


  • DISEASE - AIDS is now the leading cause of death in Sub-Saharan Africa, far surpassing the traditional deadly diseases of malaria, tuberculosis, pneumonia and diarrheal disease. AIDS killed 2.2 million Africans in 1999, versus 300,000 AIDS deaths TOTAL for the previous 10 years. TB is the leading AIDS-related killer and in some parts of Africa, 75 percent of people with HIV also have TB. Each year, approximately 300 to 500 million people are infected with malaria. Approximately three million people die as a result.


APPENDIX 2

THE END OF POVERTY

The End of Poverty: Economic Possibilities for Our Time is a 2005 book by American economist Jeffrey Sachs. It was a New York Times bestseller. In the book, Sachs argues that extreme poverty-defined by the World Bank as incomes of less than 1 dollar per day—can be eliminated globally by the year 2025, through carefully planned development aid. He presents the problem as an inability of very poor countries to reach the "bottom rung" of the ladder of economic development; once the bottom rung is reached, a country can pull itself up into the global market economy, and the need for outside aid will be greatly diminished or eliminated. Clinical economics: in order to address and remedy the specific economic stumbling blocks of various countries, Sachs espouses the use of what he terms "clinical economics", by analogy to medicine. Sachs explains that countries, like patients, are complex systems, requiring differential diagnosis, an understanding of context, monitoring and evaluation, and professional standards of ethics. Clinical economics requires a methodic analysis and "differential diagnosis" of a country's economic problems, followed by a specifically tailored prescription. Many factors can affect a country's ability to enter the world market, including government corruption; legal and social disparities based on gender, ethnicity, or caste; diseases such as AIDS and malaria; lack of infrastructure (including transportation, communications, health, and trade), unstable political landscapes; protectionism; and geographic barriers. Sachs discusses each factor, and its potential remedies, in turn.

Sachs places a great deal of emphasis on the United Nations’ Millennium Development Goals (MDGs) as a first step towards eliminating extreme poverty, which currently affects 1.1 billion people worldwide. Sachs headed the United Nations Millennium Project, which worked from 2002 to 2005 to establish the organizational means to achieve the MDGs. He also offers some specific, immediate solutions, such as increasing the availability of anti-malarial bed nets in sub-Saharan Africa, and encourages debt cancellation for the world's poorest countries. Sachs states that in order to achieve the goal of eliminating global poverty, clinical economics must be backed by greater funding; he argues that development aid must be raised from $65 billion globally as of 2002 to between $135 and $195 billion a year by 2015. Sachs argues that the developed world can afford to raise the poorest countries out of extreme poverty (he agrees with the MDG's calculation that 0.7 percent of the gross national product of first world countries would be enough).

APPENDIX 3

WORLD’S EFFORT TO REDUCE POVERTY WITHIN OUR GENERATION!!!

In September of 2000, 189 UN member states came together under the leadership of UN Secretary-General Kofi Annan to commit their nations to a new global partnership for reducing extreme poverty worldwide by 2015. The result of this meeting was the adoption of the eight Millennium Development Goals (MDGs), a set of quantified objectives for addressing extreme poverty and its many root causes. The MDGs target income poverty, hunger, disease, and exclusion, while promoting gender equality, education, and environmental sustainability. We will have time to reach the Millennium Development Goals—worldwide and in most, or even all, individual countries—but only if we break with business as usual. KOFI ANNAN, UN SECRETARY-GENERAL (1997-2006). In 2002, world leaders signed the Monterrey Consensus, committing to support achievement of the Goals by contributing 0.7% of GNP (gross national product) to official development assistance. G8 leaders again pledged their commitment in 2005 at the Gleneagles Summit, agreeing to double aid to Africa by 2010 en route to larger increases by 2015. Five years after the Goals were established, an inspired group of people began to see it was time for a movement to help mobilize the global community to fulfill these promises.

In 2005, at both the G8 Summit in Gleneagles and at the UN World Summit in New York, world leaders made major commitments to increase official development assistance (ODA) for basic investments in the poorest countries, particularly in sub-Saharan Africa. They pledged to make available approximately $90 per African by 2010 en route to much further increases by 2015. These financial commitments underpinned a major policy breakthrough stating that every developing country would be supported to implement a national strategy ambitious enough to achieve the MDG.

APPENDIX 4

CURRENT “WESTERN” NGOs MOVEMENT TO LIFT AFRICA OUT OF POVERTY

THE MILLENNIUM PROMISE

In 2005, Prof. Jeffrey Sachs, director of the Earth Institute at Columbia University and Special Advisor to the UN Secretary-General on the MDGs, teamed up with Ray Chambers, one of the visionary pioneers of private-equity investing and a passionate philanthropist, to establish Millennium Promise. The organization is headquartered in New York, with regional headquarters in Bamako, Mali and Nairobi, Kenya, and national affiliates in Canada, the United Kingdom, and the Netherlands. Dr. John W. McArthur is the CEO and Executive Director of Millennium Promise. Dr. McArthur was the Deputy Director of the UN Millennium Project and is a Research Associate at Columbia University.

The Millennium Promise Alliance would be the first international non-governmental organization solely committed to supporting the achievement of the MDGs, with a specific mandate to translate the world’s commitment to the MDGs through the mobilization of tangible results. Powerful Partnerships: The co-founders and Board of Directors set forth to assemble a robust global network of key partners and industry leaders to support the new organization and its flagship initiative, the Millennium Villages Project. As a founding partner, the Earth Institute would bring world-class scientific expertise in almost every field related to the Project’s work. The UNDP, as the Project’s implementing partner would also be a key to ensuring the Project’s success. Perhaps most importantly, the host countries, local governments and civil society organizations in the communities and countries where the Project would ultimately work, would own the Millennium Villages effort and oversee the day to day operations of bringing about its objectives.

The Millennium Promise is supported by various sponsors such as Bill gates, George Soros, and many other passionate groups of committed individuals, companies, foundations, and governments. Technical and in-kind investments were done, including hundreds of thousands of insecticide treated mosquito nets from Sumitomo Chemical, hundreds of miles of piping from JM Eagle to bring safe water to communities, tons of fertilizer from Agrium and Mosaic, and essential drugs from Novartis, among many others. Today hundreds of supporters contribute to the work of the Millennium Promise through financial, technical, and other support. Together, this global alliance of partners makes the work possible by directly empowering communities to reach new frontiers of opportunity, laying the foundation for ongoing innovations and local entrepreneurship. The Millennium Promise Launched the Millennium Villages Project (MVP) in 2006 to put their ideas into action. Offering an innovative integrated approach to rural development, the MVP simultaneously addresses the challenges of extreme poverty in many inter-connected areas: agriculture, education, health, infrastructure, gender equality and business development. We know that in order to effect lasting change in any one sphere, we must improve them all. 

One goal of the MV Project is to create lasting “open source” tools, systems, and models that can be used by communities anywhere, serving as an incubator for innovative solutions to development challenges. Innovations in healthcare delivery systems (community health workers), information technology (ChildCount+), off-grid energy (SharedSolar), and more are the hallmark of the MVP. Working in close partnerships with host countries and communities, the Project demonstrates how the MDGs are achievable through practical, low-cost interventions, highlighting the value and feasibility of integrated, community-based investments. Currently (in 2011) reaching more than 500,000 people in village clusters across 10 countries in sub-Saharan Africa, the MVP is the flagship initiative of Millennium Promise with its close partner the Earth Institute, Columbia University.

Holistic, community-led strategies are more effective than stand-alone programs. The package of MVP interventions was designed to operate well within the budget envelope agreed to by world leaders in 2005. The Project was launched in 2006 at a budget of only $120 per capita per year, with MVP donors contributing half of the cost ($60) and the other half being covered by local governments, partners, and communities. Using effective, low-cost interventions, the MVP shows that the MDGs can be achieved on a rapid timeline for less money than world leaders have already promised to spend in ODA. The Millennium Villages Project has shown that synergistic investments in agriculture, health, education, infrastructure, business development, and environmental conservation can lead to rapid and considerable progress in food security, school attendance and performance, reduced hunger and improved livelihoods in a short period of time. UN SECRETARY-GENERAL BAN KI-MOON. On May 30, 2010, United Nations Secretary General Ban-ki Moon visited the Millennium Village of Mwandama, Malawi, and he stated: “I congratulate the leadership of the village and the whole community – especially the women of Mwandama – for their hard work and their commitment to a better life for their children and for generations to come... . Today, I call on every country to look closely at this success. It is a case study in what is possible, even in the poorest places in the world.”



APPENDIX 5

CONTRADICTING VIEWS FROM THE RENOWNED CELEBRITIES

Paul David Hewson (Bono)

Paul David Hewson (born 10 May 1960), most commonly known by his stage name Bono, is an Irish singer, musician, and humanitarian best known for being the main vocalist of the Dublin-based rock band U2. Bono writes almost all U2 lyrics, often using political, social, and religious themes. Bono is also widely known for his activism concerning Africa, for which he co-founded DATA, EDUN, the ONE Campaign and Product Red. He has organized and played in several benefit concerts and has met with influential politicians. Bono has been praised and criticized for his activism and involvement with U2. He has been nominated for the Nobel Peace Prize, was granted an honorary knighthood by Queen Elizabeth II of the United Kingdom, and was named as a Person of the Year by Time, among other awards and nominations.

Bono has become one of the world's best-known philanthropic performers and was named the most politically effective celebrity of all time by the National Journal. He has been dubbed, "the face of fusion philanthropy", both for his success enlisting powerful allies from a diverse spectrum of leaders in government, religious institutions, philanthropic organizations, popular media, and the business world, as well as for spearheading new organizational networks that bind global humanitarian relief with geopolitical activism and corporate commercial enterprise. Since 1999, Bono has become increasingly involved in campaigning for third-world debt relief and raising awareness of the plight of Africa, including the AIDS pandemic. Bono spoke in advance of President Bush at the 54th Annual National Prayer Breakfast, held at the Hilton Washington Hotel on 2 February 2006. In a speech containing biblical references, Bono encouraged the care of the socially and economically depressed. His comments included a call for an extra one percent tithe of the United States' national budget. He brought his Christian views into harmony with other faiths by noting that Christian, Jewish, and Muslim writings all call for the care of the widow, orphan, and stranger. President Bush received praise from the singer-activist for the United States' increase in aid for the African continent. Bono continued by saying much work is left to be done to be a part of God's ongoing purposes.

Criticism to Bono came in November 2007 when Bono's various charity campaigns were targeted by Jobs Selasie, head of African Aid Action. Selasie claimed that these charities had increased corruption and dependency in Africa because they failed to work with African entrepreneurs and grassroots organizations, and as a result, Africa has become more dependent on international handouts. Bono responded to his critics in Times Online on 19 February 2006, calling them "cranks carping from the sidelines. A lot of them wouldn’t know what to do if they were on the field. They’re the party who will always be in opposition so they’ll never have to take responsibility for decisions because they know they’ll never be able to implement them." In November 2007, Bono was honored by NBC Nightly News as someone "making a difference" in the world. He and anchor Brian Williams had travelled to Africa in May 2007 to showcase the humanitarian crisis on the continent. On 11 December 2008, Bono was given the annual Man of Peace prize, awarded by several Nobel Peace Prize laureates in Paris, France. Product Red is another initiative begun by Bono and Bobby Shriver to raise money for the Global Fund to Fight AIDS, Tuberculosis, and Malaria. Bobby Shriver has been announced as the CEO of Product Red, whilst Bono is currently an active public spokesperson for the brand. Product Red is a brand that is licensed to partner companies, such as American Express, Apple, Converse, Motorola, Microsoft, Dell, The Gap, and Giorgio Armani. Each company creates a product with the Product Red logo and a percentage of the profits from the sale of these labeled products will go to the Global Fund.



William Russell Easterly

William Russell Easterly is an American economist, specializing in economic growth and foreign aid. He is a Professor of Economics at New York University, joint with Africa House, and Co-Director of NYU’s Development Research Institute. He is also a nonresident senior fellow at the Brookings Institution in Washington DC. Easterly is an associate editor of the Quarterly Journal of Economics, the Journal of Economic Growth, and of the Journal of Development Economics. Easterly maintained a blog called "Aid Watch" where he posted regularly about aid related issues.

He has also spoken at the Templeton Foundation with his contemporary Dambisa Moyo as well as written in the press to respond to critics such as Jeffrey Sachs and Ha-Joon Chang. Easterly is skeptical toward many of the trends that are common in the field of foreign aid. In The Elusive Quest for Growth he analyzes the reasons why foreign aid to many third world countries has failed to produce sustainable growth. He reviews the many “panaceas” that have been tried since World War II but had little to show for their efforts. Among them is one that has recently come back into fashion: debt relief. That remedy has been tried many times before, he argues, with negative results more often than positive, and calls for a more scrutinizing process.

In The White Man's Burden (The title referring to the famous The White Man's Burden by Rudyard Kipling), Easterly elaborates on his views about the meaning of foreign aid. Released in the wake of Live8, the book is critical of people like Bob Geldoff and Bono (“The white band's burden”) and especially of fellow economist Jeffrey Sachs and his bestselling book The End of Poverty. Easterly suspects that such messianic do-good missions are ultimately modern reincarnations of the infamous colonial conceit of yore. He distinguishes two types of foreign aid donors: “Planners”, who believe in imposing top-down big plans on poor countries, and “Searchers”, who look for bottom-up solutions to specific needs. Planners are portrayed as utopian while Searchers are more realistic as they focus - following Karl Popper - on piecemeal interventions. Searchers, according to Easterly, have a much better chance to succeed. Criticism: Sachs responded to Easterly's arguments, leading to an ongoing debate. Sachs accused Easterly of excessive pessimism, overestimating costs, and overlooking past successes. Nobel Laureate Amartya Sen has praised Easterly for analysis of the problems of foreign aid, but criticized his sweeping debarment of all plans, lacking the due distinctions between different types of problems, and not giving the aid institutions credit for understanding the points he's making.



Dambisa Moyo

Dr. Dambisa Moyo is an international economist and New York Times best-selling author of both Dead Aid: Why Aid is Not Working and How There is a Better Way For Africa, published in 2009, and How the West Was Lost: Fifty Years of Economic Folly - And the Stark Choices that Lie Ahead, published in early 2011. Dead Aid: Why Aid Is Not Working and How There is Another Way for Africa argues that foreign aid has harmed Africa and that it should be phased out. It became a New York Times bestseller. It is published in Chinese, English, French, German, Greek, Italian, Japanese, Korean, Polish, Portuguese and Dutch. The book offers proposals for developing countries to finance development, instead of relying on foreign aid. Moyo has stated that her arguments are based on those made by pro-market economists like Peter Bauer (to whom the book is dedicated) and, later, William Easterly. The Financial Times summarized the book's argument: "Limitless development assistance to African governments, she argues, has fostered dependency, encouraged corruption and ultimately perpetuated poor governance and poverty." She argues that foreign aid helps perpetuate the cycle of poverty and hinders economic growth in Africa.

Harvard professor and historian Niall Ferguson wrote the foreword to Dead Aid. Quotes by the Chairman and CEO of Forbes, Steve Forbes, appear on the book jacket as well as by former United Nations Secretary-General Mr. Kofi Annan who says "Dambisa Moyo makes a compelling case for a new approach to Africa". Moyo's ideas are similar to those held by the Rwandan Government and President Paul Kagame. He says that "Dead Aid has given us an accurate evaluation of the aid culture today". Kagame also invited Moyo to Rwanda to discuss her thesis and bought copies of the book for his entire cabinet. The President of Senegal, Abdoulaye Wade has also expressed similar views on aid. The thesis has also been noted by the Chinese Premier Wen Jiabao. Speaking at a China-Africa Cooperation summit in Egypt, he said "I have read a book titled Dead Aid written by Dambisa Moyo. The author talks about her personal experiences and draws the conclusion that China's assistance to Africa is sincere, credible, practical and efficient and is welcomed by the African people. I am confident that time will prove that friendship and cooperation between the Chinese and African people has a bright future."


Criticisms: In a book review, economist Paul Collier calls Moyo's analysis "over-optimistic" in that "She implies that, were aid cut, African governments would respond by turning to other sources of finance that would make them more accountable." According to Collier, "this exaggerates the opportunity for alternative finance and underestimates the difficulties African societies face." David Roodman, a research fellow at the Center for Global Development calls the book "sporadically footnoted, selective in its use of facts, sloppy, simplistic, illogical, and stunningly naive", while the Financial Times notes that the book "studiously ignores evidence of development assistance working." The pro-aid organization ONE has claimed that Dead Aid is "reckless" and that it calls to "cut-off all aid". Moyo points out in a number of interviews that this is a misrepresentation of her ideas and the Financial Times notes that ONE's campaign "at least partially backfired". The economist Jeffrey Sachs has said more foreign aid is needed to improve conditions for Africa but Moyo points out that when Sachs was her lecturer at Harvard it was he himself who taught that "the path to long-term development would only be achieved through private sector involvement and free market solutions".

Jeffrey David Sachs

Jeffrey David Sachs (born November 5, 1954, in Detroit, Michigan) is an American economist and Director of the Earth Institute at Columbia University. One of the youngest economics professors in the history of Harvard University, Sachs became known for his role as an adviser to Eastern European and developing country governments in the implementation of so-called economic shock therapy during the transition from communism to a market system or during periods of economic crisis. Some of his recommendations have been considered controversial. Subsequently he has been known for his work on the challenges of economic development, environmental sustainability, poverty alleviation, debt cancellation, and globalization.

Sachs is the Quetelet Professor of Sustainable Development at Columbia's School of International and Public Affairs and a Professor of Health Policy and Management at Columbia's School of Public Health. He is Special Adviser to United Nations Secretary-General Ban Ki-Moon, and the founder and co-President of the Millennium Promise Alliance, a nonprofit organization dedicated to ending extreme poverty and hunger. From 2002 to 2006, he was Director of the United Nations Millennium Project's work on the Millennium Development Goals, eight internationally sanctioned objectives to reduce extreme poverty, hunger, and disease by the year 2015. Since 2010 he has also served as a Commissioner for the Broadband Commission for Digital Development, which leverages broadband technologies as a key enabler for social and economic development. He is a member of the scientific committee of the Fundacion IDEAS, Spain's Socialist Party's think tank. He has authored numerous books, including The End of Poverty and Common Wealth, both New York Times bestsellers. He has been named one of Time Magazine's "100 Most Influential People in the World" twice, in 2004 and 2005.

One of Sachs' strongest critics is William Easterly, a professor of economics at New York University. Easterly reproached The End of Poverty in his review for The Washington Post, and Easterly's 2006 book White Man's Burden is an even more thorough rebuttal of Sachs' argument that poor countries are stuck in a "poverty trap" from which there is no escape, except by massively scaled-up foreign aid, though Sachs himself has clearly emphasized the need for a complex, multi-faceted, clinical and unique approach to economic development, of which increased and responsible foreign aid is nearly always a necessary but insufficient part. Easterly presents statistical evidence that he claims proves that many emerging markets attained their higher status without large amounts of foreign aid as Sachs proposes.

Another Sachs critic is Amir Attaran, a scientist and lawyer who holds the Canada Research Chair in Law, Population Health and Global Development at the University of Ottawa. Sachs and Attaran have worked closely as colleagues, including coauthoring a famous study in The Lancet documenting the dearth of foreign aid money to fight HIV/AIDS in the 1990s, which led to the creation of the Global Fund to Fight AIDS, Tuberculosis and Malaria. However, Sachs and Attaran part company in their opinion of the Millennium Development Goals, and Attaran argued in a paper published in PLoS Medicine and an editorial in the New York Times that the United Nations has misled people by setting specific, but immeasurable, targets for the MDGs (for example, to reduce maternal mortality or malaria). Sachs dismissed that view in a reply to PLoS Medicine by saying that only a handful of the MDGs are immeasurable, but Attaran then cited the United Nations' own data analysis (which the UN subsequently blocked from public access) showing that progress on a very large majority of the MDGs is never measured.

Sachs has also been criticized by leftists for having an overly neoliberal perspective on the economy. Nancy Holmstrom and Richard Smith pointed out that, in advising implementation of his shock therapy on the collapsing Soviet Union, Sachs "supposed the transition to capitalism would be a natural, virtually automatic economic process: start by abandoning state planning, free up prices, promote private competition with state-owned industry, and sell off state industry as fast as possible…". They go on to cite the drastic decreases in industrial output over the ensuing years, a nearly halving of the country's GDP and of personal incomes, a doubling of the suicide rate, and a skyrocketing unemployment rate. The Lancet has recently reported that rapid privatization of the Soviet Union caused a 12.8% death rate increase among males in just two years; a claim that The Economist attributed to alcoholism, though The Lancet article attributed the rise in alcoholism to changes in the economy.


APPENDIX 6

WHAT ARE “PEOPLE SAYING” (BLOGS) ABOUT WHY AFRICA IS POOR

Source: http://www.wavuti.com/4/post/2011/6/what-makes-tanzania-poor-see-some-possible-answers.html#ixzz1XsKWd14J

Tanzania is among the poor countries in Africa, this has been contributed by many factors regardless of having millions of resources to make Tanzania and same other countries in Africa rich. The reasons to why Tanzania is poor are as listed bellow:


1. Improper use of resources - many resources have been used in an appropriate ways leading to lack of development from family to nation level. This can be put into the form of Natural resources, funds people have been misusing, funds on unwanted programs/plans, hence leaving the targeted developments programs without funds to work with.
2. Corruption and selfishness - most leaders have been thinking on their own benefit rather than to the national benefits that's why many leaders have been involved in high level corruption on National programs and fund hence leading the country into poverty. This has included entering into void contracts, buying used equipments rather than new ones just to save money for themselves, and etc
3. Poor infrastructures - roads and rails have been the back bone on transportation in Tanzania but most roads are not accessible through out the year which makes difficult to travel and transport things around the country.

4. Foreign investors - most of these investors are from abroad and most of the investments benefits they get always go out of Tanzania and only small amount will remain to be circulated in the Tanzanian economy. Also some sectors which seems to bring lots of money in Tanzania is tourism but still majority of investors in this field are foreigners and the big portion of the income from Tourism goes out of Tanzania the same goes for investors in mining, Natural resources, etc.


How to tackle these problems

1. It is important that all resources allocated to national programs, projects etc are used accordingly to attain the required results.


2. Leaders and everyone involved in leading other people should make sure that they do not think of themselves rather they should work for the country to bring about social and economic development, stop corruption in all levels of national activities.
3. Use the available resources to improve infrastructure so that transportation can be easy and less expensive.

4. Encourage local investors to invest in their economy since all the money will remain in Tanzania and will be felt in the Tanzania economy from family to National level.


WHY IS TANZANIA (AFRICA) SO POOR?

"Tanzania was poor, Tanzania is poor and Tanzania will continue to be poor if we the Tanzanians are not ready to change Tanzania. Tanzania will remain poor if Tanzanians are not ready to make Tanzania rich. There is poverty in Tanzania and there is hunger everywhere on the continent of Africa. HIV/AIDs continue to kill Africans in record numbers. Tanzania is poor and there is no doubt Tanzania is poor. I think the question is not why Tanzania is poor but may be how we can make Tanzania rich. What we can do as individuals or groups to help change Tanzania. There is poverty in Tanzania but Tanzania has almost all it takes to be the richest country on earth. The major problem facing Tanzania today is corruption and poor leadership. There are greedy people in Tanzania including our leaders who don't care about their poor children, mothers, fathers, brothers and sisters. Some people are too greedy and that is why Tanzania remains poor. People are killing their own brothers, sisters, mothers and fathers just to make money. People didn't care about yesterday and people don't even care about tomorrow. All they care about is money and money and that is why Tanzania remains poor. All African leaders I know are corrupt in one way or the other. They come as saints and leave as devils.

An African president of a country is a president for a few selected people. An African president is a president for only his family and friends, a president for only those in the higher class. An African president sees no poverty and if sees does not know why. An African president sees no hunger. An African president sees no HIV. An African president knows no orphan. An African president shows no mercy. An African president sees only money and money and nothing but money... Not just the African president but the African prime minister, the African governor, the African Doctor, the African Judge, the African lawyer, the African King, and even the African Pastor. And that is why this continent is still poor and that is why Tanzania continues to wallow in poverty


WHY IS OUR COUNTRY POOR?

Dear Readers, Here is a good article sent by Dr. Arsenio Martin of Fort Arthur, Texas. Enjoy reading: The difference between the poor countries and the rich ones is not the age of the country: This can be shown by countries like India & Egypt , that are more than 2000 years old, but are poor. On the other hand, Canada, Australia & New Zealand, that 150 years ago were inexpressive, today are developed countries, and are rich. The difference between poor & rich countries does not reside in the available natural resources. Japan has a limited territory, 80% mountainous, inadequate for agriculture & cattle raising, but it is the second world economy. The country is like an immense floating factory, importing raw material from the whole world and exporting manufactured products. Another example is Switzerland , which does not plant cocoa but has the best chocolate of the world. In its little territory they raise animals and plant the soil during 4 months per year. Not enough, they produce dairy products of the best quality. It is a small country that transmits an image of security, order & labor, which made it the world's strongest, safest place.


Executives from rich countries who communicate with their counterparts in poor countries show that there is no significant intellectual difference. Race or skin color is also not important: immigrants labeled lazy in their countries of origin are the productive power in rich European countries. What is the difference then? The difference is the attitude of the people, framed along the years by the education & the culture. On analyzing the behavior of the people in rich & developed countries, we find that the great majority follow the following principles in their lives:



  1. Ethics, as a basic principle.

  2. Integrity.

  3. Responsibility.

  4. Respect to the laws & rules.


  5. Respect to the rights of other citizens.

  6. Work loving.

  7. Strive for saving & investment.

  8. Will of super action.

  9. Punctuality.

In poor countries, only a minority follow these basic principles in their daily life. We are not poor because we lack natural resources or because nature was cruel to us. We are poor because we lack the correct attitude. We lack the will to comply with and teach these functional principles of rich & developed societies. If you do not forward this message nothing will happen to you. Your pet will not die, you will not be fired, you will not have bad luck for seven years, and also you will not get sick. But those may happen because of your laziness, your love for intrigue and politics, your indifference to saving for the future, your stubborn attitude.

If you love your country, let this message circulate for a major quantity of people could reflect about this, & CHANGE, ACT!


WHY IS AFRICA POOR?

http://sotho.blogsome.com/2006/06/20/why-is-africa-poor/

Posted by Rethabile Masilo

Africa is economically poor. Some Afri-philes and some Africans sometimes blame colonialism as part of the reason why the continent is economically poor. Afri-phobes insist that after half a century of freedom from colonialism, that particular excuse is no longer valid, and that we need to look elsewhere. Some people suggest that Africa is poor because Africans are inferior to other races. This latter group goes further and cites inventors and skyscrapers: “Africa had none before the white man showed up,” they say. If you mention black inventors, as I once did, you are quickly told that most of them were of mixed ancestry, “so we know where the entrepreneurial spirit came from, don’t we?” So why is Africa, a rich continent, poor?

Colonialism, and slavery before it, served at least to put the brakes on local civilizations, so that the ways Africans were doing things before became obsolete and backward and therefore undesirable. That supposes that like children, Africans had to re-learn how to live, at the mercy of the colonizer. Take the case of language, for example: what the funk am I doing, writing in English and not in Sesotho, my mother tongue? A mother-tongue English speaker of course has a head-start on me, or at least on previous generations of Africans. Colonialism arrested our development in other ways, and one of the most devastating was the carving up of Africa. That act alone effectively destroyed natural nations and saw the birth of artificial countries. As I type this, war is raging on the continent, war that is a direct result of how the white man pulled out a knife carved Africa up.

Another result of colonialism is that African countries still trade with their colonial masters (at a loss) instead of with each other. “African countries are grappling to undo a legacy dominated by trade with their former colonial rulers rather than with each other. Senegal’s biggest trading partner is France, while Gambia trades extensively with the UK. Although Senegal surrounds Gambia, trade between the two neighbors is minimal. The continent’s railways and roads often lead towards the ports rather than link countries across regions. To fly from one African country to another, it is often easier to pass through Europe.

Africa is rich, rich in natural resources, a fact that can be another reason why it’s poor. For one, think of the Liberian diamond quagmire. There are diamonds, but no industrial infrastructure to channel them through, and no real incentive to do so. The best way then is to tote a gun and keep the diamonds for oneself. That breeds war, and the rest is history. There are no real leaders. Two, if its rich, technologically more advanced populations are more prone to moving in and pillaging, which is what the scramble for Africa was all about.

Many of the reasons that insure Africa stays poor can be scrapped. One of those is the unfairness of the West when doing business with Africa. Economics experts can usually explain this better, but from what I understand, the West slaps high tariffs on African goods so that they’re less competitive. Can’t sell your goods? Why don’t you borrow? Can’t pay back that loan you took out? Why don’t you borrow some more so that you can at least pay off the interest on the loan?


Africa is waking up, however, and I hope it does so in my lifetime. The present state of affairs has lasted long enough. It is time to swing things around. I urge you to visit Timbuktu Chronicles if you want to see just how Africa is waking up. As far as I’m concerned, the continent had to go through a period of realizing its own worth, in order to be able to produce goods and do business in its own image and right, as only it knows how. First, Africa must:


  1. Elect real leaders, or fall back to our pre-colonial system of government

  2. Get rich Occidental countries to start playing fair economic games

  3. Forget that… trade with your neighbor on the continent and cut each other some slack as far as trade tariffs are concerned

  4. Produce things that the world needs

  5. Stop fighting, full-stop. A country at war cannot build infrastructure, and it uses its resources instead on arming itself.

  6. Go all out to promote family planning values and the donning of the humble condom

  7. Realize that “efforts to alleviate poverty in Africa will fail unless urgent action is taken to halt climate change”.

  8. Bang on the heads of embezzlers and other corrupt officials; make authorities accountable

  9. Bend over backwards to make African brains want to stay in Africa

  10. Educate women and integrate them into the professionally active population.



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