Hygro
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Read this article when I was in the hospital a couple months ago. I don't remember it very well, but remember it was a surprising and new idea. Anyway, it's a long read, so I'm sure the debate will shift to something stupid, but I'd love some of your takes on it if you've bothered to read it all. It's better formatted if you follow the link, IMho
http://newsdetails.blogspot.com/2007/06/should-we-globalize-labor-too.html
http://newsdetails.blogspot.com/2007/06/should-we-globalize-labor-too.html
New York Times Magazine said:Should We Globalize Labor Too?
By JASON DePARLE
The Arniko Highway climbs out of Kathmandu in long wending loops that pay twin tribute to the impassability of Himalayan terrain and the implausibility of its development. Outside Africa, no country is poorer than Nepal. Its per capita income looks like a misprint: $270 a year. Sudans is more than twice as high. Nearly two-thirds of Nepalis lack electricity. Half the preschoolers are malnourished. To the list of recent woes add regicide 10 royals slaughtered in 2001 by a suicidal prince and a Maoist insurgency.
A few hours east of the city, a gravel road juts across a talc quarry, where the work would be disturbing enough even if the workers were not under five feet tall. Scores of young teenagers, barefoot and stunted, lug rocks from a lunar pit. The journey continues through a district capital flying Communist flags and ends, 12 hours after it began, above a forlorn canyon. Halfway down the cactus-lined slope, a destitute farmer named Gure Sarki recently bought four goats.
The story of Gure Sarkis goats involves decades of thinking about foreign aid and the type of program often seen as modern practice at its best. Two years ago, an organizer appeared in the canyon to say that the Nepal government (with money from the World Bank) was making local grants for projects of poor villagers choosing. First villagers had to catalog their problems. With Sarki as chairman, Chaurmuni village made its list:
Not able to eat for the whole year.
Not able to send children to school.
Lack of proper feed and fodder for the livestock.
Landslide and flood.
Not able to get the trust of the moneylender.
Insecurity and danger.
A week later, they agreed to start a microcredit fund and expand their livestock herds. Twenty villagers would buy a total of 55 goats at $50 apiece. The plan specified who would serve on the goat-buying committee, the per diem the goat buyers would get and the interest rates on the loans (just over 1 percent). Those who were literate signed their names, while others inked fingerprints, and the papers went off to Kathmandu, where officials approved a $3,700 grant. Within two months of the first meeting, Sarki had his goats. They doubled the value of his livestock holdings. He prizes them so much that he sleeps beside them inside his house to protect them from leopards. He plans to sell them next year for a profit of about $25 each.
Lant Pritchett says he has a better idea. Pritchett, a development economist and practiced iconoclast, has just left the World Bank to teach at Harvard and to help Google plan its philanthropic efforts on global poverty. In a recent trip through Chaurmuni, he praised the goats as community-driven development at its best: a fast, flexible way of delivering tangible aid to the poor. But Nepal isnt going to goat its way out of poverty, he said. Nor does he think that as a small, landlocked country Nepal can soon prosper through trade.
To those standard solutions, trade and aid, Pritchett would add a third: a big upset-the-applecart idea, equally offensive to the left and the right. He wants a giant guest-worker program that would put millions of the worlds poorest people to work in its richest economies. Never mind the goats; if you really want to help Gure Sarki, he says, let him cut your lawn. Pritchetts nearly religious passion is reflected in the title of his migration manifesto: Let Their People Come. It was published last year to little acclaim none at all, in fact but that is Pritchetts point. In a world in which rock stars fight for debt relief and students shun sweatshop apparel, he is vexed to find no placards raised for the cause of labor migration. If goods and money can travel, why cant workers follow? Whats so special about borders?
When they are being polite, Pritchetts friends say he is, ahem, ahead of his time. Less politely, critics say that an army of guest workers would erode Western sovereignty, depress domestic wages, abet terrorism, drain developing countries of talent, separate poor parents from their kids and destroy the Wests cultural cohesion. Pritchett has spent his career puncturing the panaceas of others. It says something about the intransigence of much of the worlds poverty that he may be in the grip of his own.
Pritchett was up early, on stinky-toilet patrol. He had arrived in the dark in the village of Bisauli and slept on a dirt floor. Daylight brought the first glimpse of his surroundings and with it a boondoggle alert: several villagers had used program money to build outhouses. South Asia is littered with toilets that are quickly abandoned because they become smelly, he said. Water hauled up mountains is too precious for cleaning squat toilets; most people go outside. Pritchett had feared that organizers were pushing toilets and was relieved to find most of the money had purchased faucets and goats.
He moved on actually up, given the topography and offered a primer on rural development through shortened breaths. PAF (huff) the Poverty Alleviation Fund is a third-generation project (huff), he said. The first generation tried everything at once roads, drinking water, new crops and failed through complexity. The second generation simplified: road builders just built roads; well diggers dug wells. But some villages got roads when they needed wells. And some villages got wells that did not work. Some villages got nothing because people stole the cash. The World Bank officials tried to fix these problems when they helped design the Nepal program, which so far has received $40 million. The program is flexible; the money can be put to many uses. It is demand driven; villagers decide. It is transparent; the accounting is posted on a bulletin board. And it is targeted; only poor villagers qualify. PAF (huff) is state of the art, he said. Its pimped up!
Still, for all of the programs sophistication, it is a modest effort aimed less at ending poverty than at ameliorating it. With an annual per capita income of $90, the Ramechhap district, where Pritchett was traveling, has much to ameliorate. Midway through his morning tour, Pritchett stopped at a faucet where three women were filling baskets with firewood and water jugs. The baskets were designed to rest on stooped backs with the help of a forehead strap; they looked like a chiropractors full employment plan. Pritchett was traveling with his 14-year-old son, Isaac (5-foot-8, 135 pounds), and challenged him to lift one. Neck veins popped, but the basket didnt move. Pritchett (5-foot-9, 185 pounds) leaned into the forehead strap and staggered a few steps. Slight as dime-store dolls, the giggling women grabbed their baskets and trundled off in bare feet. Life in Nepal is hard.
The same could be said of Ireland in the 1850s, Italy in the 1880s and Oklahoma in the 1930s. In each case, large populations suffered economic shocks and responded in the same way. They left. Following the potato blight, the Irish population fell by 53 percent, at least as much because of migration as the deaths caused by famine. That benefited the migrants, of course. But Pritchett notes that it also left Ireland with fewer people to support; gross domestic product per capita never fell.
Pritchett contrasts Zambia, whose economy peaked in 1964 on the strength of copper mines. When copper markets declined, Zambians had no place to go; the population nearly tripled and per capita G.D.P. fell more than 40 percent. Pritchett likens 19th-century Ireland to a ghost town and calls places like Zambia zombies lands of the living dead. While some distressed regions can adapt and prosper, by far a preferential fix, Pritchett argues that hundreds of millions of people are stuck in places with little chance for development. For them, only out-migration can prevent an extended and permanent fall in wages.
Nepal has not suffered a sudden shock (except for the civil war, which has paused with the Maoists sharing government power). But it is a small, landlocked country with little manufacturing, daunting terrain, low literacy and scant infrastructure. What it does have its comparative advantage is cheap workers, many of whom already go abroad. While most go to low-wage countries like India, they still send home about $1 billion a year. That accounts for 12 percent of Nepals G.D.P. and is three times its spending on public investment, which includes efforts like education, hunger relief and electrification. Despite the countrys troubles, remittances have helped cut the poverty rate by 25 percent and would cut it further, Pritchett says, if more Nepalis could work in the West.
Stinky-toilet patrol completed, Pritchett was getting a report in a neighboring village goats bought, fodder trees planted when an overseas worker wandered in. Indra Magar, home from Qatar, had the air of a visiting prince. He was 25, with crisp jeans and a shirt stamped United Precast Concrete. The way his father beamed, it could have said Princeton. The father, Singha Madur, had spent his life as a human mule, hauling goods by foot over the mountains from a road nine days away. His son made $400 a month, nearly 10 times the local wage, and was saving to start a shop in Kathmandu. Something looked different about the younger Madur besides his clothes, and I finally realized what: he was the first villager I had seen with a paunch. I asked the father the best part of his sons life. Hes full! he said. Full all the time.