04 August 2009

Pacific aid a waste of money?

The NZ Herald reports that Foreign Minister Murray McCully says that aid to Pacific Island countries is achieving little, despite millions of dollars being poured into the "Pacific Islands Forum" (formerly South Pacific Forum).

Quite right. The Forum has long been a typical intergovernmental organisation, filled with less than busy hardworking bureaucrats, more keen on earning high salaries that achieving much at all. In fact it demonstrates quite clearly what the approach to aid in the Pacific should be.

Firstly, if there is to continue to be aid, it should go to private charities and organisations that are motivated to achieve charitable good in the region.

Secondly, state aid should be phased out. New Zealanders who want to help Pacific Island states should donate their own money themselves (as they should for all states). Government aid creates appalling incentives of dependency, little interest in the recipient weaning itself off aid, and strong incentives to engage in rent seeking along the way. Rent seeking by bureaucrats, by aid distributors, by suppliers to aid agencies and ultimately recipients.

In other words, offering something for nothing will do precious little to generate a sense of independence, or to perform well. Remember. Africa has received increasing aid over 50 years, and much of it remains a basket case. By contrast, the likes of Chile and South Korea have adopted different national policies - of being oriented towards entrepreneurship, investment, governments that allow enforcement of contracts, and respect property rights (as well as having, now, vigorous open liberal democracies and independent judiciaries).

So when Murray McCully wants to "encourage Governments to adopt good fiscal practice, undertake some economic reform to become more globally competitive and encourage trade, and ensure aid is not squandered". He might want to tie aid to such reform, before phasing it out. After all, if you want the Pacific Island states to grow up, it might be about time to show them how and let them be.

Hamas kids TV praises suicide bombing mother

CNN reports that al Aqsa TV (run by Hamas) has broadcast a children's show (Tomorrow's Pioneers) where it glorifies that a mother blowing herself up in a suicide bombing is doing more for her children than anything else. It is designed to convince children that if their mother gets ready for such a "mission" then it is for their good. In other words, Hamas is promoting a death cult to children.

None of this is new. Al Aqsa TV has used this childrens' programme variously to promote "wiping out the Jews" and promoting martyrdom as a good thing for children.

Want a summary of the episodes? Try this Wiki article, and see for yourself how to have childrens' programming that worships death, murder and suicide. Think how much this puts back any efforts at peace with Israel, and why so many Israelis think so little of Palestinians when some of them elect these sorts of people to government.

Prepared to treat Israel and Hamas as morally equivalent still?

The nonsense of relative poverty

Socialists have long argued that measurements of poverty should not be on the basis of actual subsistence - those who do not have the basics for survival of food, shelter, clothing etc. - but on relative wealth compared to rest of the country within which someone lives.

This of course means that the poverty level for those in your average developed modern Western country would be abundant luxury for someone in Bangladesh, Chad or Paraguay. Relative poverty is a combination of socialism and nationalism (why, for example, is the comparison only with people in the same country? Wealth is not distributed by governments, well not good ones).

The BBC has on its website a graphic comparison of what relative poverty means. It comes from a report which states that pensioners in the UK are poorer, relatively speaking, than pensioners in Romania. That seems intuitively nonsensical, but it is what relative poverty does.

Move the interactive graphic on that website to see what happens when you change the median income. If incomes rise rapidly, so does the poverty threshold. The wealthiest country has a poverty threshold that would be above average income in many countries, but if wealth was destroyed systematically (the Khmer Rouge and Zanu-PF being recent examples), the numbers in poverty could arguably decrease- because the poverty measure drops dramatically.

In other words, relative poverty damns successful economies by the implicit demand that "something be done" to ensure everyone gets their incomes uplifted by prosperity, whether they contributed to it or not. It rewards failed economies, because if people are roughly on average destitute, it's "ok" - at least there aren't too many people wealthy compared to those seriously destitute.

Of course this sort of analysis of "relative poverty" fuels the likes of Help the Aged in the UK, and the Child Poverty (in)Action Group in New Zealand, who simply demand more money be thieved from taxpayers in the middle and upper incomes, to give people at the bottom more - regardless of whether they did anything for it. It encourages dependency and wants to reward poverty, regardless of whether poverty actually means not being homeless compared to not being able to afford Sky TV, or fill up the petrol tank.

After all, two of the groups people appear most concerned about for poverty are the elderly and children. The elderly could see poverty relieved if they saved for their retirement and weren't taxed on their retirement savings or income. Old age is rather predictable. The poverty of children is the fault of their parents, who are (or should be) primarily responsible for paying for them. Breeding isn't compulsory, but too many think it is a right that demands others to pay for it. Both could be addressed in part by personal responsibility, with those who are poor through misfortune able to be helped by charities. You don't notice the Child Poverty (in)Action Group ever raising funds to feed some children do you? No - it just lobbies for the state to put its hand in your pocket to pay more welfare.

Poverty will, of course, always exist, if the relative poverty measure is retained. There will always be people who through incompetence or misfortune earn less than 20% of the median income. If you think that is a problem, then instead of expecting the government - such a quick response and competent authority as it is - to do something, why don't you?

That, of course, isn't really the answer anyone on the left likes to promote.

03 August 2009

2 degrees isn't competing on a level playing field

Now there has been much publicity about the new mobile phone network "2 degrees" with many TV ads.

What 2 degrees isn't telling you is a little about its history.

How did 2 degrees get its radio spectrum? Telecom and Vodafone both bought their spectrum in open competitive auctions. 2 degrees didn't get it that way.

You see, it was part of a deal that the last Labour government did to shut down Maori claims for the radio spectrum (which of course was often used before 1840!). The Waitangi Tribunal at the time believed that radio spectrum is a taonga and so shouldn't be sold, Labour allocated one of the 3G mobile phone spectrum networks to the "Maori Spectrum Trust" at a discount price, with some taxpayers' money to "develop it". Neither Telecom nor Vodafone ever used taxpayers' money to develop its cellphone networks. That Trust teamed up with a Zimbabwean company (Econet), which has since sold its shareholdings on. 2 degrees has had various private sector backers along with the Trust.

So, in effect, 2 degrees has radio spectrum at a discount rate, and has been subsidised to develop it.

It also isn't developing its own network to cover the country, no, it is using Vodafone's, at commercially negotiated rates, but always with the threat of the state regulating them, and with the threat that if Vodafone or Telecom told it to "go build your own" network, the government may regulate for access - like it already has to Telecom's network.

Greens think parental choice is a myth

Yes, I am sufficiently annoyed by the Soviet style brainlessness of the Greens again to post.

Catherine Delahunty, who has long demonstrated a belief in mysticism and passionate embrace of the violent state, has made a rather banal post in Frogblog about educational choice. If anything it should simply harden attitudes against the likes of her and her friends holding their hands at the windpipe of the education sector.

She sees parental choice as a “myth”. Apparently if it is not important to Catherine, it shouldn’t be to other parents. Parents making choices means they are outside her control, and they may make choices she doesn’t approve of. Maybe sending children to Montessori school, or Catholic school. I doubt she would embrace either. She describes vouchers as a failed idea. It’s not my favourite idea, but in Sweden it has been a roaring success – it has seen umpteen private schools open – commercially run ones too (yes, the horror) AND there remains universal education, as every child gets an education voucher.

It is such a failure that the only political party in Sweden to still oppose it is the Left Party, formerly the Communists, who once supported the Soviet crackdown in Hungary in 1956. Take from that as you wish.

Delahunty quotes another person with similar intellectual rigour as herself, Liz Gordon (who famously said “there is only so much freedom to go around”), who apparently has critiqued ACT policy (although this does not appear anywhere online). The concern appears to be that the real agenda is to commercialise schools, which of course can only be bad.

Then she goes off on one of her typical non-sequiturs, because she talks about a school she likes, which is state owned. Fine. However, whilst examples of good state schools and teachers exist, there are also poor ones. Does she give a way to deliver good ones? No.

She says “quality public education” should be available everywhere, not just where there are “well resourced” parents. Which of course is a subtle use of language that tells you where she is coming from.

First, it should be public education. Why? She wont say. It’s as ideological as my commitment to getting the state out of education, but it’s something she doesn’t want to go on about.

Second, “well resourced parents”. Who resources them? Oh, maybe they got their own resources themselves, through their own efforts. Ah, but that upsets Catherine’s ideology that the world is a big bad capitalist place where fat cat men “allocate resources” unfairly, instead of to those who she loves. Not rather that people get resources through their own efforts, intelligence and convincing people that what they do is worthwhile.

So in conclusion she wants to “demand more for all children”, demand from whom Catherine? Oh, the parents who you don’t think need choice. Taxpayers without children, who are imposing the lowest “environmental footprint” as a result. Yes, take more from them to pay for those who do breed.

The mindlessness of it all tragically encapsulates the empty headed vacuous nature of the Green Party. Private education is “bad” because it just is, “commercialisation” of education is “bad” because it is (even though there is no indication ACT believes in this). Public education is “good” because it just is. School vouchers have “failed” without a shred of evidence, and parental choice is a “myth”, even though tens of thousands of parents choose now with their own money, also paying taxes to educate their children. As long as private schools exist there will be choice, but it is denied parents who cannot afford to pay twice for their kids’ education.

The Greens want everyone to have “quality public education”. Who defines quality? Well they do, since they want the state to provide it, and parents to have no choice. So what does this mean? The embracing of an education model that is little different from that seen in the former communist bloc. State education for all, providing the same “quality” (defined by politicians, bureaucrats and the monopoly suppliers of labour – teachers’ unions), meaning all children get the same start.

Oh and those parents wanting choice? Just fuck off you selfish “well resourced” commercialising “freedom” junkies. You just want to take from poor children, and not have to pay for the education of other kids. You want schools to be run as businesses where kids are brainwashed with your ideology, instead of our ideology. You don’t care do you? (time to cry).

I'll conclude with a statement from a former Swedish Minister of Education, Per Unckel “Education is so important that you can’t just leave it to one producer,”. Indeed you might even go to the biggest provider of private education in Sweden and see what you think.

After all, how long do you continue with the system you have before deciding how badly it performs?