africa

morally relevant salaries

antarchi's picture

There is a fairly generally held belief in the richer world that what someone earns is not a morally relevant fact. In the business world, that is true almost without exception. But it is held to be true in the so-called non-profit sector as well, even if not quite unconditionally (and perhaps not universally). The fact that ‘western’ consultants are paid at a daily rate exceeding the monthly rate of locals is rarely thought to be troublesome, even if the relative living costs differ by much less; and that the chief executives of Oxfam, Action Aid or Save the Children take home more in a year than most of the people they are supposed to be helping can hope to see in a lifetime is not, for most people, a morally significant issue.

Why not? I suspect that the average worker in sub-Saharan Africa, struggling to feed a family on 50 cents a day would find it morally relevant. So where is the flaw in our more expensive reasoning?

This is what I think we would hear from the chief executives and the roaming consultants:

1. ’The cost of living in sub-Saharan Africa is incomparably less than it is in London / New York / Strasbourg / Brussels: we need more to live off here’.

Yes it is, and yes they do. That, incidentally, raises the question of how far it is justified to have a well-staffed, recently renovated, state of the art headquarters in London, of all places, given the enormous rents; but even supposing it is justified – do these people ‘need’ $500-odd dollars a day, 7 days a week, 52 weeks of the year? That is a heck of a lot more than others need to live off in the same place.

2. ’We are paid at the market rate: if we were not worth it, the market would not pay so much.’

Never mind what the market thinks: the market is a cruel, amoral beast. I wonder if you, the recipients of 6 figure salaries believe you are worth roughly 500 times more than someone who works the same hours, under much more difficult conditions, with no perks, no pension, no international glory – just sweat-shop conditions, day in, day out, for 18 hours per day.

Is the market the best judge of what people are 'worth', and is the market anyway the most appropriate judge for the world of international aid?

3. ’We do a hard job, subject to enormous stresses and strains and burdened by great responsibility. We should be well compensated for this.’

Yes... but so should others for their labour, no less stressful and incomparably worse compensated. Given that any money raised by Oxfam / SCF / Action Aid etc is raised on the understanding that it is going to be used to best effect to help those really in need – is this an honest way of raising the money, let alone an ethical way of spending it?

4. ’If we worked in the business world with the same responsibility and the same number of employees we would be paid far better’.

And if you were a footballer or successful porn star you would be paid even better. Why should that be thought to be a relevant consideration? The money for business executives is not raised on the understanding that it is going to those in need; and anyway – their enormous salaries are hardly benchmarks for good behaviour.

5. ’If I had fewer skills and was less able to run this organisation efficiently, we would help far fewer people around the world’.

I wonder… I wonder, first of all, whether huge ngo-businesses are really the most efficient use of resources. But even if they are, I wonder whether people who are ready to work for less would necessarily be any worse at managing them. Just conceivably, they may be, given the business practices that mostly govern ngo-businesses today. Maybe Oxfam and Save the Children would do even better if they hired real business executives to manage their empires.

Let us anyway do the sums and see: let us see what else, and how else we could spend the money raised for those in need. I am sceptical that $150,000 can not be spent in a way that would be more useful to the starving millions. Since the money is rightfully theirs – perhaps we should give them the chance to decide.

6. ’If I did not take this salary, someone else would take it instead. The money would not go to sub-Saharan Africa.’

!!!??? And if I did not shoot this Iraqi / vote for war / torture this prisoner / support the occupation / invade Afghanistan / sell arms to Suharto …. someone else would do it instead. It may be true (or it may not) but it does not absolve me from moral blame for being the one that actually carries out the act.

7. ‘I cannot be held responsible for not saving more lives: I do far more than most to limit the number of casualties around the world.’

Consider: I am in a position where I could save 10 people or I could save 100 people. I shall survive (and live comfortably) whether I do the first or the second. If I do the first, I shall live not just comfortably, but about 4 times better than the average British citizen, and at least 500 times more comfortably (if comfort can be measured in numbers) than the average sub-Saharan African. The money raised to pay for my additional comfort is intended to go towards improving the lot of the sub-Saharan African. But I cannot be held responsible if I use it instead to pay for my additional comfort.

(to be continued)

structural adjustment

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Between 1980 and 1989 some thirty-three African countries received 241 structural adjustment loans. During that same period, average GDP per capita in those countries fell 1.1% per year, whilst per capita food production also experienced steady decline. The real value of the minimum wage dropped by over 25%, government expenditure on education fell from $11 billion to $7 billion and primary school enrolments dropped from 80% in 1980 to 69% in 1990. The number of poor people in these countries rose from 184 million in 1985 to 216 million in 1990, an increase of 17%.

capital flight

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Intimately linked to the debt crisis is the enormous burden that capital flight from Africa has imposed on this poorest continent. Recent work by Léonce Ndikumana and James K. Boyce of the University of Massachusetts reaches the conclusion that Africa’s wealthy have, during the period from 1970 to 2004, exported a total of $420 billion, nearly double the total debt burden of Sub-Saharan Africa in 2004, which in 2004 was $227 billion. Most of this money was not acquired legally. With the interest this capital could have accumulated over the 35 year period, the authors estimate the total loss to Africa at $607 billion.

selling off grain reserves

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In 1998 and 1999, the Malawi government initiated a program to give each smallholder family a “starter pack” of free fertilizers and seeds. This followed several years of successful experimentation in which the packs were provided only to the poorest families. The result was a national surplus of corn...

— Walden Bello

not thinking the human costs

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The social consequences of structural adjustment [imposed by the WTO] cum agricultural dumping were predictable. According to Oxfam, the number of Africans living on less than a dollar a day more than doubled to 313 million people between 1981 and 2001 – or 46% of the whole continent. The role of structural adjustment in creating poverty, as well as severely weakening the continent’s agricultural base and consolidating import dependency, was hard to deny. As the World Bank’s chief economist for Africa admitted, “We did not think that the human costs of these programs could be so great, and the economic gains would be so slow in coming.”

tony blair intervened personally

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In 2001, the UK government approved the sale of a £28 million military air traffic control system to Tanzania. The World Bank, which usually steers clear of criticising individual purchases, said that the system was both unsuitable for Tanzania's needs and out of date, and that a civilian system could be purchased for an eighth of the cost. Campaigners argued that the deal should be stopped on the basis that half the population of the country lacked access to clean water. This was also the position of Clare Short, then the International Development Secretary, but she was over-ruled as Tony Blair intervened personally to ensure the deal went through.

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