The tyranny of experts vs the real cause of poverty:The unchecked power of the state against poor people without rights March 11, 2014

How development experts have empowered dictators and helped to trap millions and millions of people in poverty

“Ethiopia, for example, reaps money and plaudits from development giants such as the Gates Foundation while remaining a bastion of authoritarian rule. Economic growth and other positive development outcomes in such states are a mirage, the author argues. His central claim is that no matter how much international aid is poured in, the lives of citizens won’t durably improve without freedom.” -SARAH CHAYES, Book Review, Wall Street Journal

‘The international professionals perpetrate an illusion that poverty is purely a technical problem, distracting attention away from the real cause: the unchecked power of the state against poor people without rights. The dictators whom experts are advising are not the solution — they are the problem. The individual economic and political rights crucial to development include all those we take for granted at home, such as the right to your own property, the right to trade with whomever you wish, the right to protest bad government actions (don’t burn down our houses!), and the right to vote for politicians who do beneficial actions (clean our water!). Technical experts in development sometimes concede some rights and deny others, which disrespects rights for what they are: unalienable. The Uganda story shows the Mubende farmers’ lack of both economic rights (rights to their own property) and political rights (prevented at gunpoint from protesting). The tyranny of experts that neglects rights is first of all a moral tragedy. It reflects a double standard in which we respect rights for the world’s rich — is it conceivable that we would forget these farmers if the story had happened in Ohio? — but not for the poor.
The technocratic approach of dictators advised by experts is also a pragmatic tragedy, because it does not actually work to end poverty.  New research by economists on history and modern experience suggest that free individuals with political and economic rights make up remarkably successful problem-solving systems. Such systems based on rights reward a decentralized array of people: Economic entrepreneurs with property rights get to keep the rewards of solving the problems of their consumers. Political entrepreneurs at many government levels and in many departments get rewarded with a longer tenure in office if they solve the citizens’ problems, and they are driven out of office if they don’t. …Focusing on rights yields two perspectives on how development success happens. First, societies that have already attained individual freedom are likely to have already escaped poverty. Economists have gone back deep into our own history to confirm this widely-accepted story for how we in the West escaped our own poverty, but we seem unwilling to consider that the same story could play out in the rest of the world. Second, societies in which there is a positive change in in freedom will likely see a positive change in prosperity (ergo, rapid economic growth and fall in poverty). So what should we do about rights for the poor? Possible starting places for Western policy changes are to not fund dictators, to not support projects that torch farms, to not break promises to investigate rights abuses, and to not let us forget such abuses and missing investigations. But obsessing too much on the “what should we do?” question should not hand the agenda back to the same technical experts who have showed so little interest in the rights of the poor in the first place. The danger of such a tyranny of experts is illustrated by a long history of politicians using technical poverty debates as an excuse to avoid debating rights for the poor. The danger of such a tyranny of experts is illustrated by a long history of politicians using technical poverty debates as an excuse to avoid debating rights for the poor.’ – Read the details and analysis at the original source: http://www.foreignpolicy.com/articles/2014/03/10/the_new_tyranny

Book Review: ‘The Tyranny of Experts: Economists, Dictators, and the Forgotten Rights of the Poor’ by William Easterly

The notion of development assistance was born in a period of unabashed racism.

By SARAH CHAYES

March 7, 2014 (The Wall Street Journal) — Why does poverty persist across so much of the world, despite billions of dollars in international aid and the efforts of armies of development professionals? That is the question that William Easterly explores in “The Tyranny of Experts: Economists, Dictators, and the Forgotten Rights of the Poor.” His answer: a lack of respect for liberty—not just on the part of governments of impoverished countries but also, more provocatively, on the part of the would-be developers themselves.

Mr. Easterly, an economics professor at New York University, joins other students of international aid in decrying the preference for technical fixes when the political structures of recipient states are built to deny political participation and economic opportunity to most of their citizens. “The technocratic illusion,” he writes, “is that poverty results from a shortage of expertise, whereas poverty is really about a shortage of rights.”

Ethiopia, for example, reaps money and plaudits from development giants such as the Gates Foundation while remaining a bastion of authoritarian rule. Economic growth and other positive development outcomes in such states are a mirage, the author argues. His central claim is that no matter how much international aid is poured in, the lives of citizens won’t durably improve without freedom.

Mr. Easterly recalls that the very notion of development assistance was born in a period of unabashed racism, out of a conjunction of two opposing demands. One was the need for late colonial empires to provide a different rationale than racial superiority for their continued domination of the Third World. The other was the desire of Third World leaders to legitimize seizing authoritarian power themselves.

Touting the virtues of development designed by “experts” and delivered by autocrats proved to be a useful strategy for both camps. “Sun Yat-sen,” writes Mr. Easterly of China in 1924, “suggested the idea of technocratic development to resist European imperialism in China, while at the same time in Versailles, the Allies suggested technocratic development to expand European imperialism in Africa.” And, a few decades later, “the new African leaders found state-led technocratic development to be a justification for their own aspirations to unchecked power.”

This marriage of convenience may have sabotaged democracy’s chances of emerging from the rubble of empire, Mr. Easterly suggests, drawing on evidence from China, Colombia and West Africa. The bias in favor of technocratic fixes, and against fundamental political reform, has certainly helped enable autocratic regimes, which, now as then, capture development aid like any other rent. In Yemen, for example, before counterterrorism security cooperation grew to its current scale, aid was a key source of funding for the Ali Abdullah Saleh regime.

Mr. Easterly’s alternative to the autocrat-driven, technocratic model of development is simple: Apply abroad what we know has worked at home—bottom-up solutions, a free flow of ideas leading to innovative experiments and democratic politics. His positive examples aren’t drawn from the international-assistance realm but rather from the organic emergence of economic prosperity in such environments as 12th-century Italian city-states or the Korean auto industry. Hyundai’s rise is presented as an example of an efficient division of labor engineered almost as a matter of course by free-market forces. Unable to farm his infertile land, Chung Ju Yung, who liked tinkering with cars, set up as a mechanic, thereby exchanging “his problem-solving talents . . . for the problem-solving talents of others in producing food for him.” He would go on to found Hyundai.

Mr. Easterly is hardly the first to criticize the international-development community for its avoidance of politics and fixation on technical solutions. But his belabored insistence that freedom and democracy are the only reliable paths to economic prosperity is too general and thus not very helpful for anyone thinking seriously about how to reform development assistance. While he is right to castigate the many aid efforts undertaken in autocratic contexts, few serious Western development professionals today actively promote dictatorship. Indeed, acceptance of much of Mr. Easterly’s reasoning has driven, from the 1990s on, a sharp increase in support for grass-roots development and democratization efforts.

But Mr. Easterly fails to acknowledge such evolutions. And he thereby misses an opportunity to highlight the obstacles that this approach, in turn, has encountered: the tendency of such grass-roots organizations to respond to the desires of donors rather than their own constituencies, their inability to live up to outsize expectations or, when successful, their tendency to suffer repression at the hands of authoritarian states. Nor does Mr. Easterly contend in detail with the fundamental question raised by his book: What explains the persistence of such a “momentous double standard on rights for the West and not for the Rest?”

Some explanations do emerge in passing. Geostrategic priorities, for example, have impelled the U.S. to use foreign aid to reward autocratic allies in the fights against Communism and terrorism. Racism, blatant or otherwise, has made Westerners doubt non-white non-Westerners’ desire for rights and ability to handle them. The desire to self-perpetuate has also been a powerful motive to stick to the status quo for an industry as large as international assistance—a motive Mr. Easterly doesn’t emphasize. Challenging entrenched power structures is a good way to get thrown out of a country, as a number of democracy-promotion organizations recently learned in Egypt.

Apart from these gaps, and the book’s lack of explicit recommendations, its analysis raises some philosophical problems. It draws too sharp an opposition between individualism and collective values. By depicting a global “East” caught in a feedback loop of autocracy and “collectivist values,” Mr. Easterly falls into Samuel Huntingtonesque generalizations. Similarly, he seems to suggest that geography and climate predisposed the Southern Hemisphere to slave-based or extractive economies.

The generalizations, moreover, evade a lot of contrary nuance. The Nordic countries are widely seen as more respectful of community values than the U.S. or Britain. And many of their health and development outcomes outstrip ours. Some might argue that these are smaller, more homogeneous societies, but so are some of the negative examples of “collectivist values” that Mr. Easterly cites, such as the “Maghribi” network, a 10th-century Cairo-based Jewish trading community. And the world economic meltdown of 2008, with devastating development effects for tens of millions, was the result not of excessively collectivist values but the reverse. Poor development outcomes, in other words, aren’t only a matter of rights, as Mr. Easterly argues. At issue is also the distribution of power—justice as well as liberty.

The book’s argument about the power of freedom and democracy to beget development is made by way of a vast historical tableau. From the 12th-century Italian city-states, the narrative winds past the slave trade, expounds the virtues of migration, explores the ideas of Adam Smith and ruminates on the structure of technological innovation. Supporting anecdotes include a Senegalese religious trading community, the Korean automotive industry and an evolving Manhattan neighborhood.

It is hard to trust an author to command such a welter of detail. And indeed, the result is too often haphazard, self-contradictory or erroneous. For example, while the Maghribi traders are said to demonstrate self-sabotaging collectivist values, the Mourides, a modern Somali religious brotherhood that is organized along nearly the same principles, is cited to illustrate the virtues of migration. The Korean auto industry, depicted as embodying “the amazing potentials of specialization and trade,” emerged under an autocratic government applying protectionist laws.

By my count, finally, about 15% of Mr. Easterly’s text recaps what was just said or announces items from later chapters. Subheadings like “Another Key Moment in This Book” suggest an argument that isn’t tight enough to convince on its own merits. And that’s too bad. Mr. Easterly calls for a profound overhaul of the way powerful nations conceive of and implement aid—and, more important, of the broader foreign-policy decision-making of which aid is a component. That change is needed. It’s just not clear this book is crisp or cogent enough to help advance it.

—Ms. Chayes is a senior associate at the Carnegie Endowment for International Peace

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