Below are my rough notes from a cool conversation last night with Khorshed Alam and Ripon Majumder, the directors of a think-tank here in Bangladesh called Alternative Movement for Resources and Freedom Society (AMRF). Very interesting insights. Much of what is said here is supported by other experiences and conversations I have had in developing countries. Enjoy and, as always, feel free to contact me if you'd like to discuss more.
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Aid
- Economic slavery, colonialism.
- "Aid has made people and governments more dishonest, not less. They know what the NGOs want to hear and how to get their money."
- "Aid is an Industry. Poverty is an industry. And it is not the poor people who profit."
- "The guys here from the World Bank make $35,000... per month." In Bangladesh, that is off the charts.
- "We don't need a single penny of Aid. We need our government and our people to take responsibility for themselves."
- "Relief ruins people's potential! Don't ruin people's potential!" (note: disaster relief is different)
Economics
- "You use completely different economic principles when dealing with the developing world. What you are trying to do in Bangladesh would never work in the state of Arkansas, or any state."
- anti-Keynes, used the phrase, "the Keynesian destruction of the economy."
- "Production is key. Then distribution. It is important to both generate and distribute. Not just one or the other. But where distribution is not charity."
Microfinance
- "Microfinance may be a component, but it is not the quick and easy solution that everyone wants. People in the west, they always want a quick and simple solution."
- Women who receive micro-loans: "Microfinance is one of the reasons we are poor." Some women practically starve trying to pay off debts.
- Yunus and the microfinance institutions always lie about the interest rates.
- "In every study, it has been proven that the interest rates are 30-40%. Also, the installments set in place are completely unrealistic. It can't be done. Everything is designed for the microfinance institution to make money. And there is no monitoring of their activity to see if it is ethical." We just take them at their word.
Muhammad Yunus
- "Yunus never acknowledges the work of others. He claims that the idea for micro-finance came to him in a dream, when really it has been practiced for decades. I will admit he was the first to systematically bring it to the rural poor in Bangladesh."
- "He says that microcredit is a human right. This is complete nonsense."
- "He has done a lot of damage to Bangladesh. It will take us a long time to recover."
NGO's
- Very critical of BRAC. Operate in the nicest, most luxurious building in Dhaka.
- Grameen and BRAC have questionable ties to questionable institutions.
- "NGO is the main impediment to development."
- NGOs jobs depend on perpetuating poverty.
- "When I see an NGO with very good paperwork about all the amazing work they are doing, I know they are a fraud."
- "Aid and NGO's encourage corruption. Even the the anti-corruption NGO's! They pay the bribes to get their projects funded and approved."
Freedom
- "Without freedom, people's capacity diminishes over time." Like atrophy.
Well-Intentioned Western People
- "I'm sure people are well-intentioned, but that is no excuse to be ignorant."
- "Poverty has become a form of entertainment for people in the West."
- "What can people do? Well, first understand that doing nothing is better than doing something that harms someone else." Just so you can feel like you made a difference.
- "Guilt is what drives people in the west." That is why they give even if they are hurting us. They give for themselves, not for others.
Structure
- "Poverty is a structural problem. Until we build a sound political economic structure, no country can develop."
- Don't try to take responsibility for the poor. Help governments create structures that enable people to take responsibility for themselves."
Hi, Mark Weber here and I'm a young entrepreneur, filmmaker, and lover of life. This blog is essentially my personal learning journal where I collect key lessons / insights from various sources - books, articles, podcasts, speakers, mentors, peers, interviews, and experiences (especially my own mistakes!) - and package them up to share with you! Enjoy.