May 25, 2010

It's All About Decision Making

It's hard to believe that this Op/Ed appeared in the NY Times, but this piece from Nicolas Kristoff is one of the more powerful pieces I have read on the importance of proper decision making:

There’s an ugly secret of global poverty, one rarely acknowledged by aid groups or U.N. reports. It’s a blunt truth that is politically incorrect, heartbreaking, frustrating and ubiquitous:

It’s that if the poorest families spent as much money educating their children as they do on wine, cigarettes and prostitutes, their children’s prospects would be transformed. Much suffering is caused not only by low incomes, but also by shortsighted private spending decisions by heads of households.

That probably sounds sanctimonious, haughty and callous, but it’s been on my mind while traveling through central Africa with a college student on my annual win-a-trip journey. Here in this Congolese village of Mont-Belo, we met a bright fourth grader, Jovali Obamza, who is about to be expelled from school because his family is three months behind in paying fees. (In theory, public school is free in the Congo Republic. In fact, every single school we visited charges fees.)

We asked to see Jovali’s parents. The dad, Georges Obamza, who weaves straw stools that he sells for $1 each, is unmistakably very poor. He said that the family is eight months behind on its $6-a-month rent and is in danger of being evicted, with nowhere to go.

The Obamzas have no mosquito net, even though they have already lost two of their eight children to malaria. They say they just can’t afford the $6 cost of a net. Nor can they afford the $2.50-a-month tuition for each of their three school-age kids.

“It’s hard to get the money to send the kids to school,” Mr. Obamza explained, a bit embarrassed.

But Mr. Obamza and his wife, Valerie, do have cellphones and say they spend a combined $10 a month on call time.

In addition, Mr. Obamza goes drinking several times a week at a village bar, spending about $1 an evening on moonshine. By his calculation, that adds up to about $12 a month — almost as much as the family rent and school fees combined.

I asked Mr. Obamza why he prioritizes alcohol over educating his kids. He looked pained.

.........Two M.I.T. economists, Abhijit Banerjee and Esther Duflo, found that the world’s poor typically spend about 2 percent of their income educating their children, and often larger percentages on alcohol and tobacco: 4 percent in rural Papua New Guinea, 6 percent in Indonesia, 8 percent in Mexico. The indigent also spend significant sums on soft drinks, prostitution and extravagant festivals.

..........Look, I don’t want to be an unctuous party-pooper. But I’ve seen too many children dying of malaria for want of a bed net that the father tells me is unaffordable, even as he spends larger sums on liquor. If we want Mr. Obamza’s children to get an education and sleep under a bed net — well, the simplest option is for their dad to spend fewer evenings in the bar.

Because there’s mounting evidence that mothers are more likely than fathers to spend money educating their kids, one solution is to give women more control over purse strings and more legal title to assets. Some aid groups and U.N. agencies are working on that.

.......Well-meaning humanitarians sometimes burnish suffering to make it seem more virtuous and noble than it often is. If we’re going to make more progress, and get kids like the Obamza children in school and under bed nets, we need to look unflinchingly at uncomfortable truths — and then try to redirect the family money now spent on wine and prostitution.

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