Sunday, February 21, 2010

And We Call it Aid...

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"Unfortunately, the Europeans' devastating urge to do good can no longer be countered with reason."
The concept is simple, allow the people of Africa to solve their own problems and they will be better off, and will be able to stay better off.

Imagine if you will that suddenly the average Canadian couldn't afford to buy a house so another country decided that they were going to donate as many fully constructed homes to Canada as possible. Think about the repercussions that would have. The Canadian builders couldn't hope to compete with free houses so they would go out of business, which would push construction workers out of work, which would mean less building supplies were needed, which would lead to layoffs in those industries. Markets are all interconnected and all these layoffs would lead to people having less money to build and buy houses which would exacerbate the original problem, not solve it.

Notice in this map that South Africa entirely surrounds the tiny country of Lesotho. Aid is supposed to go to countries suffering from drought or other such serious disasters right? Well, how is it that the entire area surrounding Lesotho requires less than 1% Aid and that country needs between 5 and 10%?

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