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by ghouse 3774 days ago
I worked in energy development in sub-sahara Africa. Attempted several solar projects, all of which would have sold electricity at a price considerably lower than the utility's avoided cost from imported petroleum. We were unsuccessful because the country was concerned that by contracting with us they might jeopardize the possibility of a grant from the EU. Law of unintended consequences. Or, great example of compassion disrupting a free market doing more harm than good.
1 comments

There's a whole body of poverty work devoted to these kinds of issues, called Institutionalism. My own experience in poverty reduction was working in Microfinance (in Kenya, Uganda and Philippines). I got disillusioned when I realized that even when our loans helped someone make some additional income there was always some group above them in the food chain who would find some way to leach the additional profit from them. The issue wasn't access to loans, our entrepreneur's work ethic, intelligence or creativity - the issue was systemic corruption. Fixing that though wasn't something the free market or bottom up entrepreneurship can solve.
Sometimes I think the 3rd world population most view the western powers as Schizophrenic. On one hand you have some westerners trying to help with micro lending and free solar energy initiatives, fresh water ... (the list goes on). On the other hand, powerful corporations and western governments do everything to counter any efforts by: meddling in local politics (outright financing coup d'etats!), installing their local strongmen to further the profits of the western world and keep the dysfunctional social fabric intact ($$$).
On the other hand when more wealthy countries don't meddle some people claim apathy, not caring, like with the Sudan or Georgia, etc.

It's not that simplistic and whatever happens, there is a significant voice against interventionism, except when another faction wants it.

I'm not against micro lending. I just don't think they'd need it if 'we' didn't put them in the miserable position they are in now. It's like cutting someone's leg off and then offering them a small fragile cane ...