A Question of Balance

“It’s a question of balance.” I guess, this might be the most often-used phrase on this blog. Today, again, I would like to write about an important balancing act that is not easy to achieve. Particularly so, as we have to achieve it (almost) everyday. It is the balance between being satisfied, on the one hand, and not being satisfied, on the other. Continue reading

Entitlements: Why Income-Based Measures of Poverty Are Not Enough

In this blog, I repeatedly criticized the use of income-based indicators of well-being in rich countries. Probably the most important reason why their use is inappropriate is the so-called Easterlin paradox, viz. the fact that people seem not to become happier as they become richer in absolute terms (above a certain threshold level). In measuring the well-being of poor people or societies, income seems to be of much more merit. However, here also there are reasons to be sceptical. One of the main problems has been identified by Amartya Sen, who stressed that income (or, more generally, command over commodities) alone does not generate well-being if the individual in question lacks entitlements. Continue reading

(Partly) Right for the Wrong Reasons

Some time has passed since I commented (i.e., criticised) on Bjørn Lomborg’s writings for the last time. His most recent activity (an article on Project Syndicate) is, however, inviting for another round of critique. Actually, there is not much newness to be found in this piece by Lomborg. But because it kind of summarises his views, it may be worth a brief investigation. Continue reading

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

Yasuní – Attaching Value to Ecosystems

Many will have heard about the Yasuní-ITT Initiative. It is a proposal made by the Ecuadorian government – it offered not to drill for oil in the Ishpingo-Tiputini-Tambococha (a part of the Yasuní National Park) if the international community were to compensate Ecuador for at least half of the foregone revenues. This initiative could become a milestone towards the attaching of value to ecosystems and biodiversity. Furthermore, although not every Western politician seems able to recognize this fact, saving Yasuní by paying Ecuador would be a win-win situation. Continue reading

Development Assistance’s Dilemmas

A frequent demand by NGOs that deal with developing countries’ affairs is that rich countries (i.e., mainly the European Union, the US, Canada and Japan) increase the levels of their ODA (=official development assistance). In fact, developed countries commited (40 years ago) to raise their ODA to a level of 0,7% of their respective GDPs. So far, only a handful met this obligation. Meanwhile, there are many arguing that ODA is doomed to failure, so it is a wastage of time and money to engage in development assistance at all. I think that the problem is rather more complex. It is not just about whether and how much to invest in ODA – the matter is, actually, how we do it. And there are many problematic issues in this area. Continue reading