Module 05: Control, Freedom and Development Aid

Topics to be Covered

This module highlights the problems that occur when power is concentrated in the hands of distant actors, whether actively hostile or ostensibly benevolent. The first presentation, by the famed Native American activist Russell Means, has the provocative title “Americans are the New Indians.” In the excerpt selected for the course, Means talks about the loss of local control suffered originally by Native Americans dispossessed of their lands, rights, and resources, and now by all Americans who have suffered a similar fate at the hands of the American power elite. In the next presentation, the subject is the problems that materialize when well-intentioned donors do not bother to fully understand and appreciate the needs and desires of aid recipients. As the initial presentation entitled “Knowledge Problems and Incentive Problems” details, this very frequent occurrence in the world of aid happens when the donors do not gather any information from likely recipients and make assumptions about what they need and want. It also happens when the donors choose aid items based on what makes them feel good. The next presentation yields insights into the ways in which Western donors working in developing countries adopt a counterproductive paternalistic stance, treating the recipients like servants or children, rather than treating them with respect, as partners in their own economic development. This presentation, with the title “Truly Sustainable Economic Development,” surveys the actual strategies and tactics used by successful donors who accomplish their development goals, strategies and tactics grounded in true partnership. It is critical, for example, to involve local entrepreneurs and to communicate with them privately, so that they can speak freely about the challenges and opportunities for entrepreneurial activity in the local community. The job of the donor therefore should be to facilitate the self-directed activities of local entrepreneurs by connecting them with resources, markets, and other economic actors who can help them realize their entrepreneurial aspirations.

Learning Outcomes

This module will bring home to students how powerful groups, whether benevolent or not, perpetuate their advantage when they interact with less advantaged groups. Students will acquire a more informed and skeptical perspective on the efforts of donors who try to assist developing countries and groups without attending to their actual needs and preferences.

Videos

Russell Means Americans Are The New Indian

Knowledge Problems and Incentive Problems

Source/Attribution: Marginal Revolution University

Truly sustainable economic development: Ernesto Sirolli at TEDxEQChCh

Source/Attribution: TEDx Talks