Don’t Have a Cow

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“Cow” by Lars Pistaj on Flickr

Like all east coast American liberals, I am required by my contract to like This American Life. Listening to it this week, however, provided some new content for this blog, which is quickly becoming way more focused on where you should give your money to charity than I’d initially planned it to be.

Anyway, this week on TIA, in conjunction with the other show that my New World Order masters use to implant my brain with information, Planet Money, they were talking about a very interesting charity, GiveDirectly. GiveDirectly gives poor people money.

That’s, well, pretty much it.

Now, even though I talk a lot about structural change and the like, there’s a lot to love about this model. In class, for instance, when I talk about trying to help people out, I always tell my students that they should seriously consider whether their plan, whatever it is, is better than just handing out money (my favorite example of this is discussions about how we need to carefully target economic stimulus money instead of just “throwing money in the air” or something similar – of course, there are better and worse ways to stimulate the economy but at the end of the day, yeah, the main point is just to get some money out there, so simply throwing it in the air for anyone to catch is far from the worst idea).

There are two things that the story made me think about, however.

Paternalism vs. Public Goods

Discussions of whether to just hand out money often seem to come down to questions of paternalism. This is basically the mundane, “that panhandler will just spend the money on booze” problem/argument.

In one corner, you have the person who says: poor people wouldn’t be poor if they didn’t make bad choices a lot of the time, and we know pretty well what poor people need to do to un-poor themselves. So, if we put restrictions on the money we give them, like requiring it to be spent on healthy food, or housing, or education, then it’s a win-win. Smart poor people would spend on those things anyway; stupid poor people are being saved from themselves.

In the other corner, you have the person who says: this is all very patronizing. People generally know what is best for them. And anyway, we shouldn’t be so confident that we, those of us who are not and have not been poor, know better. For instance, some decisions that often come in for criticism, like spending on “luxury” goods, make sense when you actually pay attention to the human need for pleasure and dignity in their lives, and criticism is more about us wanting the poor to be properly ascetic to earn our pity than it is about figuring out what’s actually good for them. Yes, sometimes people make bad decisions. But they make fewer bad decisions for themselves than we do for them.

One thing that strikes me as missing from this (very stylized) argument is the role of public goods. This argument makes a lot of sense when you think what the poor are mostly lacking are private goods – things that individuals own, that are only used by one individual, etc. (in the lingo, things that are rival and  excludable). And in those terms, you can probably tell that my sympathies are with the “let people do what they think is best” side of things.

But what if what is lacking are public goods? The one that comes to mind for me is public safety. Everyone is better off if there is a pretty non-corrupt, even-handed system of policing (or something like it) that prevents, defuses, and deters violence. Yes, I can have private security, but in the real world that’s usually a poor second – I have to restrict my movement a lot more, I have to worry a lot more, etc. And working on conflict, I’m familiar with the way that lack of security can keep people from getting themselves out of poverty. There are also less dramatic examples, like digging wells.

The problem is that there are well-known coordination problems with creating public goods, which is why the mainstream conventional wisdom (certainly not unanimous) is that they need to be provided by non-market, coercive entities like the state. In a nutshell, why would I pay my share of a police force if I’m going to benefit from it even if I don’t pay? Giving people more money won’t automatically solve this problem – people with lots of money still face the temptation to free ride.

I actually suspect that there may be more of these kinds of goods that poor people need than we sometimes appreciate, but mostly because I’m a Marxist weirdo interested in social structures. Giving people money within the current system will certainly help them, though, so it’s not everything.

Two side notes. First, if you buy this, it would require dramatically changing the focus of most “charity.” If you’re comparing GiveDirectly to, say, Oxfam, then you’re mostly talking about provision of private goods. This kind of concern only applies if you’re comparing giving to GiveDirectly to giving to something like basic-science research or the Communist International.

Second, it shouldn’t be read as “giving to public goods is always a good idea when compared to giving to private goods.” We, you and I, we’re not magic. If I give $1000 to some poor Kenyan, one thing she can do is take the time she’d spend earning $1000 and instead spend it organizing in her community. It’s entirely plausible that she’d do a better job at getting public goods provided. The advantage that relatively wealthy foreign donors have at this sort of thing would primarily be if they’re trying to influence actors in their own society (like lobbying to have pharma let more generic drugs be made) or maybe use pull at the governmental level (though this would apply mostly to very large donors).

What About Markets?

The other question – and this is a totally honest question-question, not “aha! I have a question you cannot possibly answer!” – I had when listening to the discussion of GiveDirectly was, what about markets?

This is related to the above, since a market is a kind of public good. Yes, we buy private goods in a market, but the existence of the market is a public good. If this sounds silly, keep in mind that markets aren’t just “some people show up and sell some stuff,” they require rules about property to be observed/enforced (otherwise “selling” makes no sense), in the modern world someone is taking care of making a currency work, contracts need to happen, somehow rampant theft needs to be prevented, etc. If you don’t like capitalism, fine, I’m with you, but even non-market kinds of exchange of goods and services require a forum for it, which is a public good. (Or, at least, markets are usually public-good-like, you could probably create a fancy one that isn’t quite, but that’s not the main form).

One of the comparisons in the show was between the GiveDirectly model and Heifer International (another org that I’ve given money to, in fact in lieu of favors at my wedding). Heifer gives people high-quality cows and training, not cash.

Initially, it might seem – and this is the way the discussion was set up – that this is a simple contrast. Let’s imagine that the cost for someone to buy the cow and the training would be $1000. It may seem like we either buy paternalism (and maybe we should, though I’m skeptical) or giving $1000 cash is the clear winner. If someone wants the cow and training, she can just go ahead and buy it. But if she prefers something else, she doesn’t need to.

What this leaves out is that I can only buy a cow if someone is selling a cow, and ditto for training. The discussion makes a big deal about how the Heifer cows are much better than the cows available locally. So what if I want the Heifer cow and the training, and would spend $1000 for it, but I can’t buy it at all because GiveDirectly came in and gave me cash, instead of doing something else?

One way to approach this would be to say that I just haven’t counted all the costs in the situation properly. Heifer International isn’t just providing a cow and training, they’re providing cows and training in rural Kenya. If getting all that stuff and getting it to rural Kenya costs $2000, then it’s totally unsurprising that giving someone $1000 instead will not be as good as giving them a thing that costs twice as much. So to fix the contrast, give them $2000, and let them mail order a cow and a trainer.

But I worry that it’s not quite that simple. There are a lot of fixed costs involved in this sort of thing. We don’t have good cow-mailing infrastructure. A trainer can’t go to rural Kenya for an hour and then go home to her family in Sweden. If an individual person wanted the cow and training, trying to cover these sort of costs could in principle be paid for, but it would be prohibitive. Much more than the nominal doubling of the market cost of the cow in an existing market. It’s in this way that a market for cows and trainers in rural Kenya functions as a kind of public good.

Now, Heifer can provide these things without it getting ridiculous because it provides them to a bunch of people at a time. It surely has high costs associated with getting cows and trainers to rural Kenya, but it knows it can spread them out among lots of people, so it’s maybe only costing that $2000 per person when you figure the actual cow and the actual training plus the share of shipping cows and housing trainers, etc.

You could have a situation where beneficiaries of GiveDirectly do something very similar. If, say, 1000 recipients of $1000 each made it clear to the international cow-and-training industry that they wanted to be able to buy cows and trainers in rural Kenya, someone would set up a franchise of Hilde’s Cow and Training Emporium there. But that’s a coordination problem again – I’m not going to save my $1000 until the emporium opens unless I know that lots of people around me are going to as well. Heifer basically solves the coordination problem via giving gifts-in-kind and negotiating as a large collective buyer with Hilde.

So, my question is: how much should this be a worry in the case of groups like GiveDirectly? How can we best deal with lacks of markets and market failures?

On the one hand, this doesn’t seem like a pure philosopher’s worry. We know that the poor pay more for lots of things, often in a nutshell because they don’t have access to the efficient markets and financial systems that the wealthier among us do. And things it’s hard for one person to buy, like irrigation systems and wells, seem like pretty typical things rural poor areas in developing nations are lacking.

On the other hand, again, external donors aren’t magic. If enough of us can agree to donate to a large org like Heifer to make it feasible for them to build an infrastructure that supplies cows to rural Kenya, it’s not like rural Kenyans who get GiveDirectly money couldn’t have a town meeting and decide to chip in on a larger project.

Giving Well: What Should Count Besides the Numbers?

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Pictured: INEFFICIENT RESOURCE USE (Photo: “Citizens of Abyei Protest Bashir’s Statement” by ENOUGH Project)

It’s pretty common for sites and such devoted to helping you “give better” to ultimately look for some criterion of efficiency. For instance, the first two criteria that GiveWell uses for assessing charities are “strong evidence of impact” and “highly cost-effective.” Similarly, when Giving what we can declares that some charities are 1000 times more effective than others, they focus almost entirely on cost effectiveness. This leads them into some knots on their assessment of some kinds of interventions – for instance, they start by trying to translate things like education into economic improvement (can we measure how many $ of future income $1 of education spending creates?) and political advocacy into health spending (if $1 of spending advocating for bed nets gets the government to spend $3 on bed nets, it may be worth it). I think it’s unsurprising that trying to force things this way leads them to largely throw up their hands on things like education, political advocacy, and emergency relief, though that might be a conversation for another time. But, for instance, I think they’re actually too easy on emergency aid, by their own lights. Emergencies, by definition, are complex and chaotic environments, and so it’s going to be almost impossible for the cost of a disability-adjusted life year (DALY) in an emergency to be lower than the cost of a DALY in a situation where people are simply poor. So long as there is space for additional funding of things like anti-malarials, by the logic of cost-effectiveness, it will almost never make sense to go with, say, Doctors Without Borders over the Against Malaria Foundation.

I think this focus on a narrowly defined notion of efficiency is problematic. I’m not going to give a knock-down argument in a blog post for that, but I’d like to at least make some notes toward broadening the conversation.

The easy way to do this would be to say, “let’s just not focus on outcomes so much.” If I simply have an obligation to help some people and not others, regardless of how effective my help is, that of course makes this whole approach wrong headed. And, in fact, I tend to think that our obligations to help others might look more like Kantian imperfect duties than utilitarian maximizing, but it’d be dirty pool to start with that. I think there are things even the consequentialists should be keeping in mind.

And also, nothing I say here should be construed as saying that efficiency doesn’t matter at all. It’s certainly a worthwhile consideration. Even if you bought an almost wholly deontological picture of your obligations, if organization A accomplished the exact same goals as organization B, but at half the price, you should probably go with A.

Finally, I don’t think the upshot of these considerations is kumbaya-we-should-all-give-wherever-we-please. I do think it’s weird that people I know spend much more time worrying about the marginal efficiency of the charities they give to than they do to the question of whether the marginal dollar of their income should go to charity or personal consumption. It’s a tough question whether I’m doing more “good” by giving $1 to BRAC than by giving it to Oxfam, but it’s almost certain that giving that dollar to either does more good than spending it on a flavor shot in my coffee.*

It’s hard to measure politics.

It’s currently somewhat trendy to measure political advocacy in terms of leveraging your funds, especially since corporations get so much bang for their buck out of lobbying. And that’s something worth thinking about (though I wish people who make this argument would pay more attention to where the money is coming from – e.g., does it make sense to pay for bed nets out of Ghanaian taxes rather than out of my USian pocket?).

But to think that that’s the whole of it impoverishes our notion of politics. Even if you leave aside the inherent value of political participation, the changes that political change can wreak go far deeper than just the number of bed nets provided. I mean, Marx imagined the communist revolution as increasing the material luxuries available to the proletariat, but if you try to reduce it just to lowering the Gini coefficient of a society, you’re missing the point a bit. Politics isn’t just a way of setting spending priorities, it infuses people’s whole lives.

Lest you think this is an airy philosopher’s concern, keep in mind that there are important policy questions that turn on whether or not we think of the value of political systems primarily in terms of material benefits to the population. The whole history of supporting authoritarian governments on the theory that they can make the hard choices needed for economic growth is based on identifying the two.

Even if you do focus just on material change, the important changes may be missed if you focus just on the kind of thing we have a reasonable hope of measuring in a straightforward fashion. Sen has famously argued that democracies don’t have famines – this is a straight-up material benefit to democracy, but it would be at least fiendishly difficult to use that result to calculate the return on investment for each pound sterling contributed to Gandhi’s IndieGoGo campaign. More recently, Peter Buffett posted a somewhat-fluffy-but-makes-a-good-point column arguing that it’s weird to see the same captains of industry and government who create problems like poverty getting together to decide how to spend money to alleviate it. In other words, even if we focus only on material benefits, there’s the question of how many bed nets $1 of spending on lobbying for more bed nets buys, and then there’s the question of how we got to the place where people can’t afford bed nets in the first place.

There’s more to live than living.

I blame the Rawlsian doctrine of primary goods for this one. What about the inherent goods of education and democratic participation? Why should we care less about them than DALYs and the like?

The quick answer is that, if you’re not alive, you can’t enjoy anything else. But as I’ve argued more formally elsewhere, this is a misleading way to look at things. In a nutshell, if we really put an absolute priority on preserving our own lives, we’d all hang out in underground bunkers wrapped in bubble wrap (if you want the longer version, I have a chapter on it in my vaporware book, or you can just go read Butler and look cooler). We accept risks (which in the language of decision theory, just are reductions to our expected number of DALYs) all the time for things we think are important. The argument that one DALY is more important than, say, a child having access to the means to create art is one that we should be having, not one that we should assume away at the start (I mean, it’s a bit weird to me that almost no discussion of charitable giving seems to even notice the discussion about capabilities in the theory of development).

Issues like the symbolism of giving might live here, too. For instance, if I give to a poverty-alleviation organization based in the global South, that might have a good element of “saying” that I don’t think poor people are just victims whose problems need to be solved by white people like me. It might also have non-symbolic benefits mediated by the symbolism, like building organizational capacity in poor communities (often a criticism of aid agencies that swoop in with ready made programs, even if in the short run those may look more “efficient”) – this overlaps with the importance of politics, above – or just changing a hegemonic mindset that can tend to demoralize poorer people.

There’s a difference between badness and injustice.

One intuitively “punchy” reason to be attracted to groups like MSF that work in war zones and the like is precisely the thing that makes it hard for them to compete on pure efficiency measures: they work in war zones and the like.

This starts to push against the assumption that we’re playing nice with the consequentialists, but I don’t think it entirely breaks the rules. It’s at least plausible that there is something worse about someone dying because they got caught in the crossfire of a war than because they happened to catch malaria.

Now, this may pull against some of the considerations about politics, above. If most poverty is injustice rather than bad luck, the gap between the person who dies from a gunshot and the person who dies from poverty-induced malnutrition narrows. But again, I don’t think we get to ignore the conversation (and if you buy the equivalency, you probably should be working for structural political change more than most discussions of charity imply, since the injustice of poverty remains even if you mitigate its effects by giving someone a bed net. If you steal my money, and then someone gives me the P.O.S album I was going to buy with it, it doesn’t morally sanitize the theft).

We might have other special obligations.

This is dicey territory. The push towards efficiency as the overriding moral criterion for giving comes from the – quite powerful – idea that I should measure my action only by how much good it does, and not by morally arbitrary criteria like how close I happen to live to the recipients of my assistance.

But this flattens out plausibly important distinctions. Again, this bends the rule of being nice to consequentialists, but at least pluralist consequentialists can take it seriously.

I might be required to put my thumb on the scale for people whose poor circumstances are in part my fault. For instance, it seems plausible that, as an American, I might have a greater responsibility to help out victims of the wars in Iraq and DR Congo, where my country had a strong hand, than I do to people in some place like (uh… shit, the US has its fingers almost everywhere…) maybe Mali, which is more on the French’s moral account.

I might have special obligations to do good in my own community. For instance, I spend a lot of time these days on prison teaching and (increasingly) on getting involved with violence-reduction in my home city. That’s time that I could be getting a second job and donating the money to buy bed nets.

Now, the worry here is that allowing this kind of consideration opens the door to all sorts of moral abuse. It’s a very compelling worry that at some point, when I’m giving money to help out with re-greening the golf course in my gated community** I’ve crossed the line into just buying luxuries for myself (if I golf) or being morally self-indulgent (if I don’t) under the guise of “charity.” I agree that there needs to be some line here!

But I think it points to the fact that the distinction between consumption and altruism that seems taken for granted by the conversation about giving is too blunt an analytical instrument. It seems right to question whether the prison teaching work does as much good as donating the salary I could earn in that time to the Anti-Malaria Foundation.*** At the same time, it seems odd to count it as just a fancy kind of self-interested “consumption.”****

One utilitarian way around the weirdness here would be to instrumentalize it. Dollar for dollar, my investment in prison teaching is inefficient and sub-optimal. But human nature being what it is, I am more likely to sustain altruistic activities with a face-to-face component, so it makes sense to do this as a way to maximize the good I do in the teeth of human weakness of will. Basically, I’m much more likely to quit the second job where I send money to a faceless organization helping people buy bed nets than I am to quit the work where people tell me directly that I’ve helped them. It’s not right, it’s just a prediction about my own psychology, which is just another utilitarian datum.

But this strikes me as not quite right. I think we need to de-impoverish our conceptual apparatus for thinking about altruism more. I’m not sure we need to “flatten” things like working in one’s own community into either a category of self-interest (where we make a space for them alongside other forms of permissible consumption) or charity (where they probably compete poorly with bed nets). They can be their own category, at least if we’re willing to go at least as far as value-pluralist consequentialism.

And the moral motivations are at least prima facie different. When I give to BRAC, I do it because I think as a relatively affluent person (I AM THE 17%) I am obliged to help out those less fortunate, in a very generic sense (I also think BRAC scores high on some of the less quantifiable stuff above, but I’ve already written about them). I do the prison teaching because I feel like I have a special obligation to make my own community a better community. It’s not clear why these can’t coexist, or even need to be ranked.

Fuck, maybe it is just Kantian imperfect duties. Sorry, utilitarians.

* Blech.

** Fuck gated communities. They’re necrospaces.

*** This also opens the door to the question of why I work as an academic when I could have gotten a higher-paying job as a lawyer or businessman if I’d followed a different path.

**** I mean, yes, inevitable “there’s no such thing as altruism” assholes, I get warm fuzzies from the work. But I get warm fuzzies from donating to BRAC, too. Go read your Hume, but also that argument doesn’t make the distinction here at least.