[net.politics.theory] *Not* re:

carnes@gargoyle.UUCP (Richard Carnes) (09/22/85)

Jan Wasilewsky writes:

>  The problem of poverty hinges on wealth creation, NOT on its
> distribution.  To verify this, list nations, first in the order of
> per capita GNP; then according to *per capita consumption of pro-
> tein*.  This is a  nice indicator because it tells you how the
> great mass of citizens live. The rich can only eat so much pro-
> tein, so they cannot distort the picture. I haven't done it be-
> cause I have no doubt of the result. Distribution takes care of
> itself, one way or another.

I don't understand this paragraph, so I hope Jan will elaborate.  Let
me suggest that empirical research often holds surprises for those
who are confident in their theories, so I'd recommend it.  

I'm not sure I understand Jan's point about the per capita
consumption of protein, but I will mention the case of Zaire, which
has one of the lowest such rates in Africa, if not the world.  Most
of its people are extremely poor (its dictator Mobutu is one of the
world's wealthiest men).  A big factor in the poverty is that
agriculture in Zaire is heavily slanted toward export production, but
this pattern continues because it benefits a relatively few powerful
people, namely the big producers, government officials who manage
foreign trade and the officials of multinational corporations, and an
elite of well-off urban dwellers.  These last benefit from Zaire's
foreign exchange, about a third of which goes to buy imported
foodstuffs, including in particular meat from South Africa.  See if
you can guess whether much of this expensive imported meat goes to
the desperately poor and malnourished majority of Zaireans.  

I suppose it is true that "the rich can only eat so much protein,"
but they can eat much more than they can use nutritionally, as is
generally the case in the US.  Furthermore there is no upper bound on
how much they can consume by feeding it to livestock, burning it,
throwing it away, and other inefficient uses the rich make of
productive resources because they have less incentive to
use resources productively than the less well off.  This is an
important reason why a more equal distribution is in general more
efficient.  

Jan says "distribution takes care of itself, one way or another."
Here is an example of "distribution taking care of itself":  After
the 1974 floods in Bangladesh, many landless laborers were out of
work and out of money.  Many of them starved to death while large
amounts of rice were hoarded by speculators, driving the price beyond
what the vast majority were able to pay.  (See the July 1975
*National Geographic*.)  Even without a natural disaster, the general
pattern in Bangladesh went like this (perhaps it still does):  At
harvest time, when prices are low, many peasants are forced to sell a
large part of their production in order to pay back the loan-shark
moneylender-merchants, from whom they had to borrow food at high
prices before the harvest.  So after selling so much of their
produce, they must borrow in order to survive until the next harvest,
and they are trapped in this cycle.  A similar game is played between
tenant farmers and their landlords.  The result, at least in the
latter 1970's, was that *over half* the population was seriously
malnourished, while the per capita production of grain alone could
provide everyone with 2600 calories a day, a very adequate amount
(sources available on request).

In Bangladesh, as elsewhere, hunger is primarily the result of the
extreme inequality in control over food-productive resources.  A 1975
FAO report on Bangladesh concludes, "A policy of really drastic land
redistribution might promote both production and equity."

-- 

Richard Carnes, ihnp4!gargoyle!carnes

gadfly@ihuxn.UUCP (Gadfly) (09/23/85)

--
>                         ... I will mention the case of Zaire, which
> has one of the lowest such rates in Africa, if not the world.  Most
> of its people are extremely poor (its dictator Mobutu is one of the
> world's wealthiest men).  A big factor in the poverty is that
> agriculture in Zaire is heavily slanted toward export production, but
> this pattern continues because it benefits a relatively few powerful
> people, namely the big producers, government officials who manage
> foreign trade and the officials of multinational corporations, and an
> elite of well-off urban dwellers...
> 
> Richard Carnes

In contrast to Zaire, we have Botswana, a country whose crops have
failed as bad as Ethiopia's (about 80% down the tubes this year),
and has a much more primitive system of roads and transportation
than Ethiopia (Botswana has 1/5 the population density of Eth.),
but quite unlike Ethiopia, has no mass starvation.  It's a democracy.
And a weird one--with one dominant political party since independence,
and an extremely apathetic electorate.  Up until last year, you
could always win bar bets over "Which country has the lowest voter
turnout?"  Alas, the U.S. took over that distinction in '84.  Voter
apathy is probably a good indicator of basic gov't. reliability and
stability.
-- 
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