Sacrificing Development Needs for Prestige

China, a country where 4 per cent of the population are still living in poverty (following the rather rigorous definition of the World Bank), is about to spend billions of dollars to enable a few Chinese astronauts a flight to the Moon by 2025. There is hardly a tangible benefit to be found in this project – except some kind of international prestige. Meanwhile, the resources (we are talking here about much more than just money, e.g. time, skills etc.) required for its successful carrying out might well be sensibly invested in development projects that would yield a high social return. China’s Moon project seeems to be a particular variation of the positional goods problem described by Fred Hirsch in 1976 – on the national rather than individual level. And it seems to be even more profound than the difficulty originally identified by Hirsch. Continue reading