Michael Griffiths
Rock n' Roll Doggie
A critical view on Bono's Drop the Debt Campaign
What are your thoughts on this article? The more questions, comments, and cries of outrage, the better...
http://www.nationalpost.com/search/story.asp?id=7FECA467-5ED5-4EC4-9191-A8567B2E91FA
Robin O'Hood lives tax free
Peter Foster
Financial Post
Friday, November 14, 2003
Bono
I have no wish to make an argumentum ad Eminem against Bono, who is due to speak on Third World development at this evening's coronation of Paul Martin. There is no reason why the lead singer of Irish rock group U2 should not, at least in theory, present viable ideas on the topic. We should have no more a priori skepticism about his analysis than about the expectation that, say, Milton Friedman might be a dab hand with a Stratocaster. If anybody were to attack Bono, it should be on the basis of his ideas. So here goes. But first a few personal details.
Bono reportedly has a fortune of well over $100-million and lives largely tax-free. The "pesky Irish rockster," as he dubs himself, has in recent years become a "tireless crusader" for the relief both of Third World debt and AIDS, primarily in Africa.
Everybody, it seems, wants to rub shoulders with such a famous "social activist," that is, a person who seeks to indulge his personal charitable priorities with other people's money. Political leaders from George Bush to Tony Blair -- not to mention Messrs. Chr?tien and Martin -- are keen to be photographed with him. He is supported by Bill and Melinda Gates and George Soros. He is on chatting terms with Warren Buffett. He has a free pass to the Pope.
Bono's self-righteousness has taken him beyond mere charity appeals; now he storms straight into the Oval Office and starts pounding the table.
While we may not doubt his sincerity, we may question his suggested policies. He will no doubt congratulate the Liberal government tonight for making Canada the first jurisdiction to flout the intellectual property rights of pharmaceutical companies by forcing them to license AIDS drugs to "generic" producers for sale in poor countries.
There are a number of problems with this notion. The first is how much good it may actually do in the absence of health delivery systems. The second is the policy's longer-term implications. To artificially reduce the price of any product will cause shortages. It will not only reduce research funds, it will make drug companies less inclined to do research. They will fear that their rights will be expropriated any time a "public health" issue is declared to take priority over their profitability.
Even Foreign Affairs Minister Bill Graham has admitted that the policy has a downside for innovation. "But the problem," wrote Mr. Graham in the Toronto Star earlier this week, "is that sick people in poor countries cannot wait until new medicines are affordable." And so we must expropriate drug companies and damn the consequences.
Lenin must have used a very similar argument while grabbing peasant grain in order to feed the starving cities after the 1917 revolution. How could these selfish kulaks demand market prices when people were dying?
To declare that to steal property by legislation is OK as long as the cause is serious enough is a disastrous lesson for Third World countries whose main problem, as the brilliant Peruvian economist Hernando de Soto has pointed out, is the lack of property rights.
Debt relief is also far less straightforward an issue than Bono is likely to portray it. There is certainly cause for relief from "odious debts" incurred by tyrants and which have offered no benefit to their people, but Bono wants a blanket write-off. Not only will this do arguable good to people who are, we are so often told, live on less than $2 a day, but it will greatly damage the prospect of future loans.
Certainly there should be a forensic examination of just where these loans went, and, above all, which bozos in the West approved them, but Third World development solutions lie beyond redistribution, which has failed time and again. Development is a self-generated process, not a gift.
The fact that people believe that the simple solution for poverty is to take from some and give to others resides in a primitive outlook which evolved in a much poorer, more collectivist world. When we lived in small tribes, this made sense. It was founded on, and promoted, a valuable sense of reciprocal obligation, of mutual support.
We no longer live in such a world. Merely to throw funds at failed nations half a world away without addressing underlying problems invites chaos, particularly when so many nations toil under dictatorships and lack the rule of law.
To question Bono's policy prescriptions is not to replace hope with cynicism, but to point out that redistributionism is both morally and practically flawed.
It was almost 20 years ago that Bono's older and perhaps wiser colleague Bob Geldof staged Live Aid for starving Ethiopians. The main difference now is that, partly as a result of that and other massive initiatives by the UN, there are more Ethiopians starving, even as they are beset by AIDS. And they still live under a dictatorship.
? Copyright 2003 National Post
What are your thoughts on this article? The more questions, comments, and cries of outrage, the better...
http://www.nationalpost.com/search/story.asp?id=7FECA467-5ED5-4EC4-9191-A8567B2E91FA
Robin O'Hood lives tax free
Peter Foster
Financial Post
Friday, November 14, 2003
Bono
I have no wish to make an argumentum ad Eminem against Bono, who is due to speak on Third World development at this evening's coronation of Paul Martin. There is no reason why the lead singer of Irish rock group U2 should not, at least in theory, present viable ideas on the topic. We should have no more a priori skepticism about his analysis than about the expectation that, say, Milton Friedman might be a dab hand with a Stratocaster. If anybody were to attack Bono, it should be on the basis of his ideas. So here goes. But first a few personal details.
Bono reportedly has a fortune of well over $100-million and lives largely tax-free. The "pesky Irish rockster," as he dubs himself, has in recent years become a "tireless crusader" for the relief both of Third World debt and AIDS, primarily in Africa.
Everybody, it seems, wants to rub shoulders with such a famous "social activist," that is, a person who seeks to indulge his personal charitable priorities with other people's money. Political leaders from George Bush to Tony Blair -- not to mention Messrs. Chr?tien and Martin -- are keen to be photographed with him. He is supported by Bill and Melinda Gates and George Soros. He is on chatting terms with Warren Buffett. He has a free pass to the Pope.
Bono's self-righteousness has taken him beyond mere charity appeals; now he storms straight into the Oval Office and starts pounding the table.
While we may not doubt his sincerity, we may question his suggested policies. He will no doubt congratulate the Liberal government tonight for making Canada the first jurisdiction to flout the intellectual property rights of pharmaceutical companies by forcing them to license AIDS drugs to "generic" producers for sale in poor countries.
There are a number of problems with this notion. The first is how much good it may actually do in the absence of health delivery systems. The second is the policy's longer-term implications. To artificially reduce the price of any product will cause shortages. It will not only reduce research funds, it will make drug companies less inclined to do research. They will fear that their rights will be expropriated any time a "public health" issue is declared to take priority over their profitability.
Even Foreign Affairs Minister Bill Graham has admitted that the policy has a downside for innovation. "But the problem," wrote Mr. Graham in the Toronto Star earlier this week, "is that sick people in poor countries cannot wait until new medicines are affordable." And so we must expropriate drug companies and damn the consequences.
Lenin must have used a very similar argument while grabbing peasant grain in order to feed the starving cities after the 1917 revolution. How could these selfish kulaks demand market prices when people were dying?
To declare that to steal property by legislation is OK as long as the cause is serious enough is a disastrous lesson for Third World countries whose main problem, as the brilliant Peruvian economist Hernando de Soto has pointed out, is the lack of property rights.
Debt relief is also far less straightforward an issue than Bono is likely to portray it. There is certainly cause for relief from "odious debts" incurred by tyrants and which have offered no benefit to their people, but Bono wants a blanket write-off. Not only will this do arguable good to people who are, we are so often told, live on less than $2 a day, but it will greatly damage the prospect of future loans.
Certainly there should be a forensic examination of just where these loans went, and, above all, which bozos in the West approved them, but Third World development solutions lie beyond redistribution, which has failed time and again. Development is a self-generated process, not a gift.
The fact that people believe that the simple solution for poverty is to take from some and give to others resides in a primitive outlook which evolved in a much poorer, more collectivist world. When we lived in small tribes, this made sense. It was founded on, and promoted, a valuable sense of reciprocal obligation, of mutual support.
We no longer live in such a world. Merely to throw funds at failed nations half a world away without addressing underlying problems invites chaos, particularly when so many nations toil under dictatorships and lack the rule of law.
To question Bono's policy prescriptions is not to replace hope with cynicism, but to point out that redistributionism is both morally and practically flawed.
It was almost 20 years ago that Bono's older and perhaps wiser colleague Bob Geldof staged Live Aid for starving Ethiopians. The main difference now is that, partly as a result of that and other massive initiatives by the UN, there are more Ethiopians starving, even as they are beset by AIDS. And they still live under a dictatorship.
? Copyright 2003 National Post
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