Thursday, January 21, 2010

The Perils of Charity

Hundreds of thousands dead or injured. Millions displaced. Billions of dollars in damage. How can we respond to last weekʼs devastating earthquake in Haiti? Americans are generous … and wealthy, so we give. How can we not?

But charity can also be dangerous to its would-be beneficiaries. Too much giving can destroy local economies. How can the farmer sell his produce when food is given to the hungry? How can the manufacturer sell his goods? The merchant his wares? When they canʼt, they too end up in line for the dole. If and when the largess comes to an end, its recipients are left without the means to support themselves, permanently dependent on the fickle generosity of others.

Haiti poses an especially difficult problem in this respect.

Even before the earthquake, Haiti was one of the poorest countries in the world. It was and is also one of the most corrupt. Nearly 40 percent of its national budget was already based on foreign aid, while just one percent of the population controlled half of the nationʼs wealth. With that in mind, how much of our charity will really go to those in need?

How can we truly help Haiti and the similarly troubled nations of this world? Neither our generosity nor our military might can fix their problems—at least not without more money and time than we will ever be willing to invest. Maybe the best we can do is to lead by example, which means fixing our own problems and achieving our full potential as a nation of freedom and opportunity.

But thatʼs enough cynicism for one day. Besides, I have a donation to the relief effort to make. How can I not?

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