Browsed by
Tag: India

U.S. Transhumanist Party Virtual Meeting and Q&A – February 23, 2019

U.S. Transhumanist Party Virtual Meeting and Q&A – February 23, 2019

Gennady Stolyarov II
Denisa Rensen
Palak Madan
Pam Keefe
Dinorah Delfin
Arin Vahanian
Tom Ross
B.J. Murphy


On February 23, 2019, the U.S. Transhumanist Party invited many of its Officers and Ambassadors to discuss recent activities and plans for 2019, including the upcoming Presidential nomination process. The meeting included a public chat and portions where inquiries from members and the general public were addressed. Find the video recording of the meeting and the accompanying YouTube Live chat here.

Agenda
– Gennady Stolyarov II: Overview of 2019 Transhumanist Presidential Nomination/Debate/Primary Process
– Ambassadors – Denisa Rensen, Palak Madan, Pam Keefe: Discussions on Transhumanist Sentiment / Attitudinal Environment in Japan, India, and Hong Kong
– Denisa Rensen: Report on TransVision 2018 in Madrid
– Gennady Stolyarov II: Integration with the Transhuman Party / Dissolution of the TNC
– Dinorah Delfin: Discussion of Forthcoming Article in The Transhumanism Handbook: “An Artist’s Creative Process: A Model of Conscious Evolution”
– Arin Vahanian: Report on Premiere of “Immortality or Bust” Documentary
– Group Discussion: How to Reach 10,000 Members? (What demographics have yet to be exposed to transhumanist ideas and the existence of the USTP? How can we be more effective in getting people “in the door” to even be aware of our existence and content?)
   Potential Ideas
– Social-Media Digital Poster Contest (Suggestion by Tom Ross)
– Incentives for Members to Recruit Other Members (Suggestion by Tom Ross)
– Appeal to Subcultures – e.g., Steampunk, Cyborg Communities (Suggestion by Tom Ross)
– Question for Discussion: Should we engage with conspiracy theorists (e.g., attempt to rebut them) or distance ourselves from them as much as possible?
– Any questions from the audience

Note: The meeting livestream terminated slightly prematurely due to an Internet disconnection. However, the meeting did proceed over the course of the planned two-hour timeframe, and the vast majority of the intended subjects were covered.

Become a member of the U.S. Transhumanist Party for free, no matter where you reside. Fill out our Membership Application Form.

Become a Foreign Ambassador for the U.S. Transhumanist Party. Fill out the application form here.

The World’s Poorest People Are Getting Richer Faster Than Anyone Else – Article by Alexander Hammond

The World’s Poorest People Are Getting Richer Faster Than Anyone Else – Article by Alexander Hammond

The New Renaissance Hat
Alexander Hammond
October 29, 2017
******************************

Last Tuesday marked the 25th anniversary of the United Nations’ International Day for the Eradication of Poverty. The date intentionally coincides with the 30th anniversary of the Call to Action, which saw the French anti-poverty campaigner Father Joseph Wresinski ask the international community, in front of 100,000 Parisians, to “strive to eradicate extreme poverty”.

To mark the occasion, Antonio Guterres, the United Nations Secretary-General, was featured in a short video assessing the current state of world poverty. Despite noting such issues as unemployment, inequality, and conflict continuing in some regions, Guterres correctly observed that since 1990 the world has made “remarkable progress in eradicating poverty.”

While it is valuable to acknowledge that problems remain, it is important to reflect on just how far we’ve come.

Alleviating Poverty Fast

The speed of poverty alleviation in the last 25 years has been historically unprecedented. Not only is the proportion of people in poverty at a record low, but, in spite of adding 2 billion to the planet’s population, the overall number of people living in extreme poverty has fallen, too.

As Johan Norberg writes in his book Progress, “If you had to choose a society to live in but did not know what your social or economic position would be, you would probably choose the society with the lowest proportion (not the lowest numbers) of poor, because this is the best judgement of the life of an average citizen.” Well, in 1820, 94 percent of the world’s population lived in extreme poverty (less than $1.90 per day adjusted for purchasing power). In 1990 this figure was 34.8 percent, and in 2015, just 9.6 percent.

In the last quarter century, more than 1.25 billion people escaped extreme poverty – that equates to over 138,000 people (i.e., 38,000 more than the Parisian crowd that greeted Father Wresinski in 1987) being lifted out of poverty every day. If it takes you five minutes to read this article, another 480 people will have escaped the shackles of extreme of poverty by the time you finish. Progress is awesome. In 1820, only 60 million people didn’t live in extreme poverty. In 2015, 6.6 billion did not.

Now let’s consider those people who are still trapped in extreme poverty. The Oxford University scholar Max Roser’s website, Our World in Data, used World Bank databases to estimate that in 2013, there were 746 million people living in extreme poverty. Of these people, slightly more than 380 million resided in Africa, with Nigeria being home to largest number (86 million). Meanwhile, 327 million of those in extreme poverty lived in Asia, with India having the largest proportion by far (218 million). China had 25 million. The remaining 35 million lived in South America (19 million), North America (13 million), Oceania (2.5 million) and Europe (0.7 million.)

Put differently, of those who live in extreme poverty, over 40 percent resided in just two nations: India and Nigeria.

The Poorest of the Poor

Since its economic liberalization reforms in 1991, India’s average income has increased by 7.5 percent per year. That means that average income has more than tripled over the last quarter century. As wealth increased, the poverty rate in India declined by almost 24 percent. But most significantly, for the Dalits – the poorest and lowest caste in Indian society – the poverty rate during this period declined even faster, by 31 percent. That means that in the nation that has by far the largest number of people in extreme poverty, it is the people at the very bottom of the social strata who are getting richer faster.

A similar trend can be seen in Nigeria. Since the new millennium, gross domestic income per capita has increased by over 800 percent, from $270 to over $2,450. There is much work to be done, but this level of progress shows that even in the poorest countries, the speed of economic growth is encouraging.

In order to help the poorest, consider the impact free-market capitalism has had in the last 200 years in alleviating extreme poverty. The Industrial Revolution turned the once-impoverished western countries into abundant societies. The new age of globalization, which started around 1980, saw the developing world enter the global economy and resulted in the largest escape from poverty ever recorded. That is something that the late Father Wresinski would have been eager to celebrate.

Alexander C. R. Hammond is the Research Assistant for HumanProgress.org, a project of the Cato Institute’s Center for Global Liberty and Prosperity. He writes about economic freedom, globalization, and human well-being.

This article was published by The Foundation for Economic Education and may be freely distributed, subject to a Creative Commons Attribution 4.0 International License, which requires that credit be given to the author. Read the original article.

What Marx Could Teach Obama and Trump about Trade – Article by Jairaj Devadiga

What Marx Could Teach Obama and Trump about Trade – Article by Jairaj Devadiga

The New Renaissance HatJairaj Devadiga
******************************

Karl Marx was hardly known for championing economic freedom. Yet, even he understood the evils of protectionism. Marx, as quoted by his sidekick Frederick Engels, gave probably my favorite definition of protectionism:

“The system of protection was an artificial means of manufacturing manufacturers, of expropriating independent laborers, of capitalizing the national means of production and subsistence, and of forcibly abbreviating the transition from the medieval to the modern mode of production.”

Wow. So much wisdom packed into one sentence, and from Marx of all people. Let’s go through the sentence piece by piece to understand its meaning.

“Artificially manufacturing manufacturers”

This is an obvious one. We need only look at Donald Trump and the way he seeks to create jobs in the United States. By imposing tariffs on imported goods, Trump wants to encourage their production in America by making it relatively cheaper. This is what Marx meant by “manufacturing manufacturers”.

“Expropriating independent laborers”

Protectionism, as Marx observed, hurts the working class. Apart from the corporations who are protected against foreign competition, and their employees, everybody loses. For example, when Obama increased tariffs on tire imports, it increased the incomes of workers in that industry by less than $48 million. But it forced everyone else to spend $1.1 billion more on tires.

Just imagine the impact of Trump imposing across the board tariffs on all products. The cost of living for the average working class American would shoot up by an order of magnitude. And that is not even considering the impact of retaliatory tariffs.

“Capitalizing the… means of production” and  “forcibly abbreviating the transition… to the modern mode of production.”

Marx knew that when you make it expensive to employ people by way of minimum wage and other labor regulations, you make it relatively more profitable to use machines. Economist Narendra Jadhav tracks how manufacturing in India has become more capital-intensive over the years. Tariffs on imported goods did not help create jobs in the manufacturing sector. Even though India has armies of young, unemployed people it is cheaper to use machines rather than comply with the nearly 250 different labor laws (central and state combined).

Just because Trump imposes a tariff on Chinese goods does not mean that jobs will “come back” to the US. Even if there were no minimum wage, wages in the US are naturally higher than wages in less-developed countries, meaning it would still be cheaper to use robots.

“Emancipation of the Proletarians”

Apart from more and better quality goods that would be available more cheaply, as economist Donald Boudreaux points out ever so often, there is another thing to be gained from free trade. Marx said it would lead to the “emancipation of the proletarians.” I turn once again to India as an example. Where earlier the rigid caste system forced so-called “untouchables” into demeaning jobs (such as cleaning sewers), in the past 25 years some of them have become millionaires as a result of India being opened up to trade.

It is a shame, that even when virtually all intellectuals, from F.A. Hayek and Milton Friedman to Karl Marx and Keynes, have agreed that free trade is the best, there are those who would still defend protectionism.

Jairaj Devadiga is an economist who illustrates the importance of property rights and freedom through some interesting real-world cases.

This article was originally published on FEE.org. Read the original article.

Markets Are Breaking Down India’s Caste System, Turning Untouchables into Millionaires – Article by Malavika Nair and G. P. Manish

Markets Are Breaking Down India’s Caste System, Turning Untouchables into Millionaires – Article by Malavika Nair and G. P. Manish

The New Renaissance HatMalavika Nair and G. P. Manish
******************************

This year marks the 25th anniversary of liberal reforms in India that led to the dismantling of many socialist economic policies and the end of the draconian License Raj. Liberalization has changed life for many in India over the past couple of decades, although much more remains to be done. Just the middle class alone has exploded from 30 million people in 1991 to 300 million in 2014.

So this is a good occasion to tell the story of perhaps the most unexpected beneficiaries of these reforms: the rising Dalit millionaires. In recent years, many thousands of so-called “untouchables,” or Dalits, members of the lowest group in the Indian caste order, have risen out of poverty to become wealthy business owners, some even millionaires.

By taking advantage of the greater economic opportunity brought about by market reforms, these Dalit entrepreneurs provide us with an important example of the power of markets, not just to bring about economic emancipation, but to fight deeply entrenched social discrimination.

The Plight of the Dalits

The Indian caste system is an ancient and complex social order that divides society into groups based on a somewhat rough division of labor. The Dalits belong to the lowest group, below the four-tiered hierarchy of priests, warriors, merchants and artisans. Traditionally, Dalits were relegated to a life of doing “dirty” jobs such as cleaning floors and toilets or handling garbage: hence gaining the name “untouchable” as others would refuse to come into contact with them.

Since one’s caste was determined by birth, and it was impossible to switch castes throughout one’s life, being born an untouchable meant a lifetime of being trapped in a low income “dirty” job with very low social status. Marriages would only take place among caste members, and hence one’s children would be faced with the same hurdles brought by the untouchable identity, leading to systematic discrimination locked into place for generations.

It isn’t surprising that the Dalits consistently rank near the bottom of poverty statistics in an already poverty-ridden country. The term “poorest of the poor” would be an apt description of their socio-economic status in general. For decades, this made them the targets of several affirmative-action programs as well as many a politician looking to champion a cause.

While affirmative action has helped some get ahead, it has by no means been a panacea. For as long as all industry was state-controlled and subject to extensive licensing, the state effectively made all production decisions and awarded licenses to a few chosen oligarchs. This meant that opportunities for entrepreneurship and business were slim to none, and affirmative-action programs only served to redistribute pieces of a fixed pie from one to another.

Slumdog Millionaires

But there is a new heartwarming trend of entrepreneurship and self-help among Dalits since the liberal reforms in India, especially in urban areas. A visit to the Dalit Chamber of Commerce website (see also the Facebook page) reveals slogans such as “Fight Caste with Capital” and “Be Job givers, not Job seekers” as well as a spokesperson who favorably cites the invisible hand, a la Adam Smith! This voluntary Chamber of Commerce, set up in 2003 to bring Dalit entrepreneurs together, currently has 5,000 members whose enterprises jointly boast over half a billion dollars in sales revenue. The actual number of entrepreneurs in the population is much higher.

To what do they owe their success? Fascinating new qualitative research that tracks the life stories of several of these Dalit entrepreneurs reveals a common thread. The opening up of production processes to market forces created new opportunities like never before. Starting small and scraping together resources and capital, many of these Dalits now run business empires that actually provide employment to upper caste members.

There is Thomas Barnabas who was born into a family of bonded laborers, all eight of whom lived in a one-room house. Thomas recalls being thrown out of an upper caste friend’s home as a child after eating and drinking there because he was “untouchable.” They then proceeded to purify and wash the floor where he sat and threw away the dishes from which he ate.

Thomas now owns an industrial waste recycling and disposal business that has an annual sales revenue of $2.3 million and employs 200 people (including many upper caste members) outside the city of Chennai. He strove to fulfill an unmet demand for the processing of industrial waste generated by large corporations like Samsung, Dell, and Mercedes that set up manufacturing facilities in India after liberalization.

Or there is M.M. Rao, who was just one of two children to get an education in a family of bonded laborers with eight children. His family was so poor that they could not afford to buy shoes. His mother and sister were forced to walk barefoot to work in a nearby town.

Rao now owns a group of companies that specialize in construction, especially in the telecom sector, with a sales revenue of $7.4 million in 2010 alone. He was able to use his education as a civil engineer to start a small sub-contracting business laying telephone cables for large companies after the liberalization of the telecom sector. Owing to the quality of his work as well as his business acumen, he was able to grow that small sub-contracting business into what it is today.

Sushil Patil grew up in a 200-square-foot house in a slum, and his father was a laborer in a factory where he was discriminated against for his low caste status. Sushil was able to complete his engineering degree only because his father had to request the college dean to waive the fees that they could not afford to pay. He recalls, “I can never forget my father bowing before the dean, that hit me hard.” He now owns a construction and engineering company with revenues of $45 million a year. His main business is to handle the construction of power plants for major power companies. He has friends who still live in the slum that he grew up in and hopes to construct a charitable hospital that will offer medical services free of charge to the poor.

Markets Break Down Barriers

These stories constitute but a tiny sliver of many thousands, if not more. They lead us to an interesting question: how is it exactly that markets fight social discrimination? Markets work in very different ways than the obvious and visible hand of state-driven policies. While the state seeks to outlaw and abolish caste identity by making discrimination illegal, markets work in quiet and invisible ways by making caste identity irrelevant.

Competition brings about the existence of meaningful and relevant alternatives that raise the opportunity cost of discrimination for everyone participating in the market. It is in an entrepreneur’s economic interest to hire and contract with those who have the highest marginal productivity regardless of their caste identity. For if he does not, his competitor might potentially steal away profits that he could have earned. The more open and competitive a market, the more true this holds.

Once liberal reforms were put in place, they created choice and opportunity for many like never before. Market forces unwittingly brought about economic and thus social progress for society’s poorest and most discriminated against.

But can we go as far as saying the caste system has withered away? Not at all. It is unfortunately alive and well, especially in the rural areas where 68% of the population still lives, despite its being legally “outlawed” for decades.

Can we say that discrimination melts away in a market setting? Not necessarily. Anyone is free to discriminate on the basis of caste identity, even in a market. However, the greater the economic opportunity out there, the greater the chance that the cost of discrimination will be borne by the discriminator himself, not the one being discriminated against.

This is not true under socialism. When the state has a monopoly over all production and its chosen oligarchs (employers) sell to a captive market, discriminating against a certain group of people does not have negative economic consequences for the employer, but only for the ones being discriminated against. Naysayers claim that this rise among Dalits is marginal and not representative of Dalits as a proportion to the total population of the country. Some are getting ahead, but most are still left behind.

While this may be true in terms of numbers, the fact that this has happened at all is nothing short of marvelous. It’s not a coincidence that there were no Dalit millionaires emerging under socialism. It is a direct consequence of the underlying institutional setting. The Dalits exemplify the theory of the so-called poverty trap: being locked into a low-income equilibrium for generations. And yet, given a little opportunity and choice, we see many leaving a life of poverty and social discrimination behind to become well-respected business leaders and philanthropists.

Most encouraging is the recognition among them that it is the invisible hand of the market that has been instrumental for social and economic progress in their community. It is a step in the right direction for the future of classical liberalism and its role in alleviating poverty at a time when many who are more fortunate seem to be forgetting or ignoring its importance.

References

  1. The unexpected rise of Dalit millionaires: Swaminathan Aiyar
  2. Capitalism is changing caste much faster than any human being: Shekhar Gupta
  3. Defying the odds: The Rise of Dalit Entrepreneurs: Devesh Kapur, D Shyam Babu, Chandra Bhan Prasad
  4. Capitalism’s Assault on the Indian caste system: Swaminathan Aiyar, Cato policy paper
  5. 5. Dalit Chamber of Commerce website: www.dicci.org.

Malavika Nair is an Assistant Professor of Economics in the Johnson Center for Political Economy at Troy University. She is also an associated scholar of the Ludwig von Mises Institute.

G.P. Manish is an Assistant Professor of Economics in the Sorrell College of Business and a member of the Manuel H. Johnson Center of Political Economy at Troy University.

This article was published by The Foundation for Economic Education and may be freely distributed, subject to a Creative Commons Attribution 4.0 International License, which requires that credit be given to the authors.

“The Line” for Green Cards Is So Long, You Might Die of Old Age Waiting – Article by David Bier

“The Line” for Green Cards Is So Long, You Might Die of Old Age Waiting – Article by David Bier

The New Renaissance Hat
David Bier
******************************

Immigrants are often told to “get in line” if they want to stay in the United States. This demand is disingenuous for many reasons. Many immigrants have no line to get into. And even if they do, we are telling them to join these lines when no one even knows how long they are. In many cases, we could be asking immigrants to join a line that they will literally never live to see the end of.

Immigrants might face a line they will literally never live to see the end of. We don’t know much about who’s in these lines until they get to the front, but here’s what we do: Thousands of immigrants come to the United States each year on temporary work visas. While working in temporary status, some of their employers petition on their behalf to obtain green cards for them to stay permanently. If the employer has jumped through all the appropriate hoops, the worker can then apply for a visa, if — and this is a big if — the limit on visas that year has not been reached.

This is where the line — and the waiting — starts. For lawmakers trying to fix the immigration system, figuring out how many people are at this point in the process is critical. But even they don’t know.

5 million people are waiting abroad.We do have a good idea how many people are waiting overseas. The State Department keeps track of those numbers and publishes them annually, and we’re quickly approaching 5 million immigrants waiting abroad, which is an astounding number on its own.

But for temporary immigrants already in the United States, the Department of Homeland Security doesn’t keep track — or doesn’t publish — the number of applicants who are prevented from receiving a green card due to the limits.

The State Department publishes a monthly visa bulletin that tells people in either line — here or abroad — whether they can apply for a green card. It lists a date, as seen below, next to a visa category. This date is the cutoff. If your employer’s petition was filed after the date listed, you cannot apply for a green card yet.

Figure 1: Visa Bulletin — Application Final Action Dates for Employment-Based PreferencesvisabulletinSource: State Department

These dates can sometimes create the misleading impression that immigrants from India, for example, will have “only” twelve years to wait for a green card. But that’s not right. That’s just how long immigrants who are currently receiving their green cards today have been waiting. We simply don’t know how many people applied since October 2004, so we don’t know how long someone applying today will have to wait.

Even the State Department doesn’t know who’s in line.Apparently, even the State Department doesn’t know who is in the line. When the department moves up the dates, it basically guesses how many people applied between the current date and the new date. When it moved the dates up for EB-2 and EB-3 categories from India (workers who have a Master’s or a Bachelor’s degree) to 2010 and 2007, the government was flooded with more applications than there were visas available, and so it moved the dates back again to 2004.

This mistake, however, gave us some small insight into who is waiting.

We cannot know for sure whether everyone who could apply submitted an application before the date moved back, but the Department of Homeland Security lists 46,098 Indians currently waiting at this stage. The State Department also lists almost 30,000 more waiting for employment-based green cards abroad, for a grand total of nearly 76,000 Indians. Because each country is limited to no more than 2,800 visas in each category, clearing just this backlog alone will take almost 10 years for EB-2 and more than 14 years for EB-3.

But that only gets us up to 2007 and 2010 for those categories. We simply have no idea how many people could be waiting beyond those dates. It would be nice to be able to estimate the number based on green card applications filed before those dates, but the list only gives us the number pending at any given time. It doesn’t show the total number submitted in a year. Some may have already been processed. Others may have been submitted later, after other older applications passed through.

A rough estimate shows 230,000 people in line, a fifty year wait.We know that in 2008, there were at least 19,512 green card applications under EB-2. For EB-3, the numbers haven’t gotten up to 2008 yet, but in 2006, there were at least 12,708 filed for that category. Simply carrying these numbers forward for each unknown year, there would be roughly 230,000 people in line, which would translate into an almost 50-year wait.

The situation is likely worse than that. We know that the number of Indian temporary workers has increased dramatically relative to the number of green cards issued to them in the past couple decades (Figure 2). We also know that roughly half of all employment-based labor certifications (the step employers complete prior to submitting most EB-2 and EB-3 green card petitions) are for Indian workers.

Figure 2: Total Cumulative Green Cards and L or H-1B Visas Issued to Indians Since 2007
h1bslsgreencardsSources: H-1B/Ls: USCIS/State Department; Green cards: DHS

Since 2002, 450,000 Indians received a green card, while roughly 2.4 million high-skilled immigrants from India and their families have entered under the H visa or L visa (for employees transferring to a U.S. branch of their company). Some portion of these workers could have been beneficiaries of an EB-3 green card petition after 2007, the last date on which we know anything about who is in line.

They’ll be waiting somewhere between 50 and 350 years. All we know is this: somewhere between 230,000 and 2 million Indian workers are in the backlog, so they’ll be waiting somewhere between half a century and three and a half centuries. It is entirely possible that many of these workers will be dead before they receive their green cards. And that’s just one country. The backlogs for Chinese immigrants and immigrants from the Philippines continue to grow as well.

America’s immigration system is broken worse than anyone can even know.

David_BierDavid Bier

David Bier is an immigration policy analyst at the Cato Institute’s Center for Global Liberty and Prosperity.

This article was originally published on FEE.org. Read the original article.

Economic Growth Slashed Global Poverty to Historically Unprecedented Level – Article by Marian L. Tupy

Economic Growth Slashed Global Poverty to Historically Unprecedented Level – Article by Marian L. Tupy

The New Renaissance HatMarian L. Tupy
October 6, 2015
******************************
According to the World Bank, for the first time in human history, “less than 10 percent of the world’s population will be living in extreme poverty by the end of 2015.” The bank has “used a new income figure of $1.90 per day to define extreme poverty, up from $1.25. It forecasts that the proportion of the world’s population in this category will fall from 12.8 percent in 2012 to 9.6 percent.”
Global poverty rate, official and baseline scenario, percent

As scholars have noted, historically speaking, grinding poverty was the norm for most ordinary people. Even in the most economically advanced parts of the world, life used to be miserable. To give one example, at the end of the 18th century, ten million of France’s twenty-three million people relied on some sort of public or private charity to survive and three million were full-time beggars.

Thanks to industrial revolution and trade, economic growth in the West accelerated to historically unprecedented levels. Over the course of the 19th and 20th centuries, real incomes in the West increased fifteen-fold. But the chasm that opened up as a result of the Western take-off is now closing.

Life expectancy at birth, West and the Rest, years

The rise of the non-Western world is, unambiguously, a result of economic growth spurred by the abandonment of central-planning and integration of many non-Western countries into the global economy. After economic liberalization in China in 1978, to give one example, real incomes rose thirteen-fold.

As Princeton University Professor Angus Deaton notes in his book The Great Escape, “[T]he rapid growth of average incomes, particularly in China and India, and particularly after 1975, did much to reduce extreme poverty in the world. In China most of all, but also in India, the escape of hundreds of millions from traditional and long established poverty qualifies as the greatest escape of all.”

Marian L. Tupy is the editor of HumanProgress.org and a senior policy analyst at the Center for Global Liberty and Prosperity. He specializes in globalization and global wellbeing, and the political economy of Europe and sub-Saharan Africa. His articles have been published in the Financial Times, Washington Post, Los Angeles Times, Wall Street Journal, U.S. News and World Report, The Atlantic, Newsweek, The U.K. Spectator, Weekly Standard, Foreign Policy, Reason magazine, and various other outlets both in the United States and overseas. Tupy has appeared on The NewsHour with Jim Lehrer, CNN International, BBC World, CNBC, MSNBC, Al Jazeera, and other channels. He has worked on the Council on Foreign Relations’ Commission on Angola, testified before the U.S. Congress on the economic situation in Zimbabwe, and briefed the Central Intelligence Agency and the State Department on political developments in Central Europe. Tupy received his B.A. in international relations and classics from the University of the Witwatersrand in Johannesburg, South Africa, and his Ph.D. in international relations from the University of St. Andrews in Great Britain.

This work by Cato Institute is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License.

World’s Poor: “We Want Capitalism” – Post-Colonial Capitalism at the Bottom of the Pyramid – Article by Iain Murray

World’s Poor: “We Want Capitalism” – Post-Colonial Capitalism at the Bottom of the Pyramid – Article by Iain Murray

The New Renaissance Hat
Iain Murray
August 31, 2015
******************************

In the forests of India, something exciting is going on. Villagers are regaining property taken from them when the British colonial authorities nationalized their forests. Just as exciting, in urban Kenya and elsewhere, people are doing away with the need for banks by exchanging and saving their money digitally. All over the world, poor people are discovering the blessings of bottom-up capitalism.

Sadly, though, developed country governments and anti-poverty activists ignore this fact and insist that developing nations need a paternalistic hand up. Both are missing an opportunity, because there are billions of capitalists in waiting at the bottom of the pyramid.

Next month, the United Nations will formally announce the successors to its Millennium Development Goals, the global body’s approach to poverty alleviation since the year 2000. These new goals will be touted as “sustainable.” The event will coincide with a visit by the pope, at which he is expected to concentrate on climate change and materialism as the greatest threats to the welfare of the people of the developing world.

Don’t expect to hear much on the way people in the Western world lifted themselves out of poverty: free-market capitalism.

The phrase “the fortune at the bottom of the pyramid” was coined by the late C.K. Prahalad, building on the work of Nobel laureate Amartya Sen. In his groundbreaking 1999 work, Development as Freedom, Sen pointed out that one of the most important aspects of development is freedom of opportunity, a vital part of which is access to capital and credit. Capital and credit, however, appear nowhere in the draft UN goals.

When capital is sufficiently available, would-be entrepreneurs at the bottom of the pyramid have demonstrated a willingness to launch new ventures and invest in their futures — that is, to embrace free-market capitalism to the benefit of all concerned.

There are several ways to ensure access to capital in the developing world, but the most important approach is to unlock the productive potential of the capital already available there.

Land Titling

In many countries, people could possess access to capital by virtue of the real estate they already occupy, but they are unable to prove ownership of the land due to inadequate land-titling systems or because of traditional forms of property ownership where everything belongs to the village chief. As Hernando de Soto explained in his book, The Mystery of Capital, land-titling reforms significantly benefit the poor, enabling

such opportunities as access to credit, the establishment of systems of identification, the creation of systems for credit and insurance information, the provision for housing and infrastructure, the issue of shares, the mortgage of property and a host of other economic activities that drive a modern market economy.

De Soto estimates that up to $10 trillion of capital worldwide is locked away unused because of inadequate titling systems. A recent study by the Peru-based Institute for Liberal Democracy (ILD), which De Soto heads, estimated Egyptian workers’ real estate holdings to be worth around $360 billion, “eight times more than all the foreign direct investment in Egypt since Napoleon’s invasion.”

Similarly, many local assets around the world remain in common ownership — in reality, owned by no one. Initiatives such as India’s privatization of forest resources seek to address this problem by enabling the titling of assets by indigenous peoples, who can then tap into those resources for access to credit to open up new opportunities. Estimates suggest that similar initiatives could be extended to 900 million plots of land across the developing world.

There are also exciting opportunities that could arise for the public recording and utilization of such capital through the distributed public-ledger system known as the blockchain, best known for its role in the development of bitcoin. Development of the blockchain for property recording and titling would significantly reduce both the transaction costs and the widespread corruption  associated with government-controlled titling systems. Significantly, De Soto’s ILD is promoting these initiatives.

Microfinance

Recent innovations have enabled the development of microfinance — access to small amounts of credit for specific purposes. Today, microfinance institutions all over the developing world provide small loans, access to savings, and microinsurance to families or small businesses.

By giving them access to proper investment capital and affordable financial institutions, microfinance providers help small- and medium-sized enterprises in developing countries to grow. Often, these businesses are so small that they can neither afford the interest rates on bank loans nor come up with the capital they need on the their own. When implemented correctly, microfinance loans empower their customers to invest, grow, and be productive, all of which contribute to diminishing poverty within communities.

One of the most prominent examples of microfinance is Muhammad Yunus’s Grameen Bank, first established in Bangladesh. According to a RAND Corporation study, areas where Grameen Bank offers programs saw unemployment rates drop from 31 percent to 11 percent in their first year. Occupational mobility improved, with many people moving up from low-wage positions to more entrepreneurial ones. There is evidence of increased wage rates for local farmers. Women’s participation in income-generating activities also rose significantly.

The Consumers at the Bottom of the Pyramid

Access to capital and credit enable new markets to spring up where none existed before. Entrepreneurial activity is unleashed. Consider one of Prahalad’s case studies of Nirmal, a small Indian firm that sold detergent products designed for rural village uses, such as in rivers. The products came in small packages at low prices suitable for Indian villagers’ daily cash flow. The company soon found itself with a market share equal to that of consumer-goods giant Unilever’s Indian subsidiary. Unilever responded by introducing similar products, thereby growing this new market. In the process, more environmentally friendly products were invented and sold, too.

As Prahalad points out, over four billion people in the world lived on an annual income of $1,500 or less (in 2002 dollars), with one billion living on less than a dollar a day. Nevertheless, based on purchasing power parity, this market represents an economy of $13 trillion or more, not that far off from the entire developed world.

The underdeveloped world is ripe for capitalism. The “unemployed” protestors of the Arab Spring were, in fact, small businessmen who were pushed to the breaking point by continually having their capital and profits expropriated by corrupt government officials, as De Soto points out. So, while the Western media portrayed the protests as being mostly about politics and freedom of expression, they were as much — if not more — about the freedom to do business.

Kenya: Mobile Phones and Payments

Despite corruption and bureaucracy, strong markets have grown up in developing countries. Kenya is a case in point. It leapfrogged the Western world’s development process for mobile communications technology. Kenyans went from having few telephones to virtually everyone having a mobile phone without needing the stage of landline infrastructure in between. A similar process is now taking place in personal finance.

Vodafone, along with its Kenyan subsidiary, Safaricom, developed m-pesa, a mobile payment and value storage system to be used on its phones. Transactions are capped at about $500, but crucially can be person-to-person, acting as digitized cash. Introduced in 2007, it had 9 million users — 40 percent of Kenya’s population — just two years later. By 2013, 17 million Kenyans were using it, with transactions valued at over $24 billion — over half of Kenya’s GDP.

M-pesa has in turn improved access to capital even more, and technology businesses are thriving all over Kenya as a result.

Kenya is not alone. The phenomenon is spreading to other African countries and to some South American countries such as Paraguay.

Environment, education, and health all benefit from wealth creation. Perhaps the real mystery of capitalism is that neither the United Nations nor the pope recognize the benefits it can bring to four billion of the world’s poor. Free enterprise and human welfare boom where governments allow new markets with access to capital and credit. That is all it takes to meet the UN’s development goals.

Iain Murray is Vice President at the Competitive Enterprise Institute.

This article was published by The Foundation for Economic Education and may be freely distributed, subject to a Creative Commons Attribution 4.0 International License, which requires that credit be given to the author.

How Collectivism Destroys Friendships and Relationships: Examples from India (2003) – Article by G. Stolyarov II

How Collectivism Destroys Friendships and Relationships: Examples from India (2003) – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
July 28, 2014
******************************
Note from the Author: This essay was originally written in 2003 and published on Associated Content (subsequently, Yahoo! Voices) in 2007.  The essay earned over 900 page views on Associated Content/Yahoo! Voices, and I seek to preserve it as a valuable resource for readers, subsequent to the imminent closure of Yahoo! Voices. Therefore, this essay is being published directly on The Rational Argumentator for the first time.  
***
~ G. Stolyarov II, July 28, 2014

**

Collectivism is not only a primary motivation for oppression and persecution; it also precludes friendship among people despite their individual compatibility. Caste-based prejudices in India provide an optimal illustration of this tendency.

In his memoirs, Indian author Shashi Tharoor recalls, upon a childhood visit to an ancestral village, an untouchable boy by the name of Charlis, who was eager to converse, engage in athletic activity, and share sweets with the higher-caste boys. However, the latter rejected Charlis’s company and threatened Tharoor with a beating to relinquish to the confines of the dirt heap the dessert that Charlis had generously provided him with.

Collectivism curtails both an already existing mutual affinity between two individuals, such as the one between Tharoor and Charlis, and one that would have flourished absent the stereotype, such as that between Charlis and the village boys.

Even the most intimate bonds of all, marriages, are tragically disrupted by the Indian caste system. Several cases have emerged in recent years when upper-caste females married lower-caste males without parental consent. The parents of the upper-caste females responded by lynching the newlyweds and encouraging their village neighbors to publicly humiliate their corpses.

Parents, who would have normally approved of a partnership between two people decently endowed and capable of fending for themselves, are impelled by collectivism to monstrously cut short young lives due to the absurdity of collectivist perception.

Caste is thoroughly ingrained in the general culture of India and in the power-mongering calculus of Indian officials. Hence, despite laws prohibiting caste-based hate crimes, enforcement is scant, and violators of individual rights are granted tacit government sanction for their misdeeds. As violence flares up, the government, instead of coordinating an extensive police and judicial effort to bring the criminals to justice, merely augments the multilateral resentment of India’s caste conflict by reserving further strategic positions for one group at the expense of another.

The atrocities for which the absurdity of collectivism can be held liable extend to stifle the realms of individual aspiration, interpersonal relationships, and  justice, all due to the perception of individuals as entirely determined by circumstantial group status and incapable of altering any of their “inclinations” via volitional efforts.

It is essential for the residents of a peaceful, harmonious, and rights-respecting society to comprehend that, just as a circumstance cannot think for an individual, it cannot deterministically manipulate his actions, that birth or skin color are just as irrelevant to an individual’s character and potential as the color of a building’s bricks is to its structural integrity. Only then can each individual achieve the utmost heights within his capacity and establish profound and productive relationships with others. Justice and liberty are possible where even a single individual carries the rejection of collectivism to its logical extreme.

 

How Collectivism Leads to Violence: Examples from India (2003) – Article by G. Stolyarov II

How Collectivism Leads to Violence: Examples from India (2003) – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
July 28, 2014
******************************
Note from the Author: This essay was originally written in 2003 and published on Associated Content (subsequently, Yahoo! Voices) in 2007.  The essay earned over 1,500 page views on Associated Content/Yahoo! Voices, and I seek to preserve it as a valuable resource for readers, subsequent to the imminent closure of Yahoo! Voices. Therefore, this essay is being published directly on The Rational Argumentator for the first time.  
***
~ G. Stolyarov II, July 28, 2014

**

A devastating effect of the collectivist mindset is the emergence of massive societal turmoil and heinous crimes. Collectivists often unleash brutal force against people who are not of “their” kind and instead belong to some “inferior” group.

In the Indian state of Uttar Pradesh, an untouchable man once slapped a higher-caste thief for stealing beans from his field. The self-righteously offended community responded by stripping the man’s mother and parading her through the village amid a hail of stones and mud hurled in her direction.

In a society which upholds the collectivist premise, even when a hierarchically-designated inferior is legitimately wronged, he will not be dealt justice, and his attempt to obtain it on his own accord will be met with vehement reprisal.

This tragic event also portrays another element of collectivist perception: the delusion that all members of a group are accountable for an alleged misdeed of one, with no link of those individuals to the “crime” but the accident of their birth or relation. Since one untouchable had “wronged” a higher-caste member, thought the villagers, all untouchables must be seditious vermin. Hence the fact that the brutal punitive humiliation was directed at the man’s mother instead of the man himself.

More widespread turmoil based on caste occurs throughout modern India. In Bihar state, skirmishes between lower-caste peasants and landlords have resulted in over one hundred deaths on both sides in 1998. The peasants involved considered themselves perpetually oppressed by the merciless group on top, and hence perceived no means of resolving their land dispute peacefully.

Likewise, the landlords involved approached the peasants in arrogant contempt, perceiving every single one of them as unintelligent vermin whose grievances are to be suppressed rather than addressed. The economic antagonism between the two groups was not irreconcilable, but the caste-based antagonism, so long as it festered in their minds, was. When one is viewed as inherently evil due to circumstantial characteristics, naught but the brute employment of force can be directed toward one.

Yet some grounds exist for the hope that the menace of collectivism might play less of a role in India’s future. In modern India, individuals involved in high-tech urban professions are beginning to act on the profit motive instead of age-old stereotypes and to regard caste as irrelevant in a marketplace where professional skills and a dedicated work ethic are the overwhelming considerations. Where institutional compulsion does not prohibit individuals from associating across circumstantially erected lines or damage their livelihoods for doing so, courageous persons of sound moral premises will rise to dethrone the behemoth of collectivism and lead to a more peaceful, tolerant society.

The Devastating Effects of Collectivism and Affirmative Action in India (2003) – Article by G. Stolyarov II

The Devastating Effects of Collectivism and Affirmative Action in India (2003) – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
July 26, 2014
******************************
Note from the Author: This essay was originally written in 2003 and published  on Associated Content (subsequently, Yahoo! Voices) in 2007.  I seek to preserve it as a valuable resource for readers, subsequent to the imminent closure of Yahoo! Voices. Therefore, this essay is being published directly on The Rational Argumentator for the first time.  
***
~ G. Stolyarov II, July 26, 2014

*

In a milieu of collectivistic perceptions, the most thoughtful and aspiring individuals are always sacrificed to the demon of stereotype. India is plagued today by a system of reservations and affirmative action which, from the university to the workplace to the parliament, establishes quotas and preferential treatment for so-called “backward castes” and “other backward castes” (OBCs) for no reason but that of their caste status and their ancestors‘ oppression by the millennia-old caste hierarchy.

Caste-consciousness in the past had precluded aspiring lower-caste individuals from holding occupations beyond the menial and repulsive, such as street-sweeping, manual toilet-cleaning, and funerary work. Education had been withheld from them by force, and it was thought better, in the words of the god Krishna, “to do one’s own duty poorly than to do another’s duty well.”

This notion of deterministic duty, the opposite of self-determined volition, is the key to any collectivist system which seeks to ingrain an individual’s “place in society” into him. Today, the official direction of collectivist prejudice has been inverted, but its essence, rooted in caste-consciousness, remains the same. In the words of author Shashi Tharoor, in today’s India, “you cannot go forward unless you are a Backward.” The Federal Government reserves 50 percent of parliamentary seats and university positions for lower castes, while numerous state governments have raised the bar to 80 percent.

In 1992, when the affirmative-action system rose to that degree, tens of top university students born into “upper castes” but never personally conducting any crime of institutionalized discrimination committed suicide by self-immolation in outrage that their prospects for future prosperity had been robbed from them by collectivist quotas. Intellect, character, and determination are discarded in any system of institutionalized collectivism. Either one is barred from advancement as a member of a traditionally inferior group, or as a member of a traditionally superior group, in favor of the traditional “victim” group.

The only proper means of resolving India’s caste conflict, as well as the turmoil present within any culture of “reverse discrimination” is to abolish all institutional considerations of circumstantial collective identity, including race, caste, and socioeconomic background. If an individual’s education, career opportunities, and relationships with his colleagues are to be determined by personal qualities, such as industry and character, those shall become the emphasis of the individual’s attention, the jewels which he shall have to offer instead of the oppressor or victim status that would have elevated him in a collectivist society.