ATM cards for poor Africans?

MilwaukeeMike · 6th June 2007, 09:25 AM

So in a recent Newsweek article they wrote about how a new wave of giving in the form of cash... Yah I know, helping people out by giving them money seems novel, but apparently it only accounts for around 10% of the total aid economy (Over $3 billion)

"June 11, 2007 issue - The last thing you'd probably expect to see a Malawian drought victim do is whip out her ATM card and pull cash out of a machine. But that's exactly how some aid recipients in this beleaguered African nation now receive their monthly entitlements. As part of a relief experiment, the British government is handing out £750,000 of aid in the form of cash rather than food. Instead of standing in line for hours waiting for a sack of rice, Malawians simply swipe a card in one of several special mobile ATM machines located in pick-up trucks, then use the local currency to buy food, medicines, fertilizer or even pay for housing or school fees for their children."

Newsweek
http://www.msnbc.msn.com/id/19000117/site/newsweek/

But I'm not sure that this is the best way for aid to get to poor people. First, I can see a lot of room for corruption, mismanagement, and damage to local economies in the form of inflation. (For the last one, I imagine this is the least of their problems.)

But isn't it more effective to bring in the food and supplies and give it to the people in need instead of letting the local governments handle the money.

I think many countries in Africa that reside over extremely poor populations have shown they do not have the desire, infrastructure, or morals to help their people... So how is giving them bank accounts and ATM cards going to help the people?

Darth Rotor · 6th June 2007, 09:32 AM

Originally Posted by MilwaukeeMike

I think many countries in Africa that reside over extremely poor populations have shown they do not have the desire, infrastructure, or morals to help their people... So how is giving them bank accounts and ATM cards going to help the people?

Could the answer be: it workes so well in New Orleans and elsewhere after Hurricane Katrina that it was worth a try in Africa?

This might also be "other things we are trying don't work so well, let's try something else." If it works, hey, sweetness and light. If not, no problem, previous efforts weren't so hot either.

Worth a try.

Not sure why you tossed "morals" into this: these folks are sorta far down on Maslow's pyramid, let's cut their "morals" a break while their food and shelter needs are the issue, eh?

DR

Dr Adequate · 6th June 2007, 09:38 AM

Originally Posted by MilwaukeeMike

But I'm not sure that this is the best way for aid to get to poor people. First, I can see a lot of room for corruption, mismanagement, and damage to local economies in the form of inflation. (For the last one, I imagine this is the least of their problems.)

But isn't it more effective to bring in the food and supplies and give it to the people in need instead of letting the local governments handle the money.

I think many countries in Africa that reside over extremely poor populations have shown they do not have the desire, infrastructure, or morals to help their people... So how is giving them bank accounts and ATM cards going to help the people?

It says in the article that it's an "experiment": presumably the questions you raise are the questions it's intended to answer.

BPSCG · 6th June 2007, 09:44 AM

Originally Posted by Darth Rotor

Not sure why you tossed "morals" into this: these folks are sorta far down on Maslow's pyramid, let's cut their "morals" a break while their food and shelter needs are the issue, eh?

Starvin' Marvin in Space!

6th June 2007, 09:25 AM	#1
MilwaukeeMike Muse Join Date: Jun 2006 Location: The Plains of Oblivion Posts: 793	ATM cards for poor Africans? So in a recent Newsweek article they wrote about how a new wave of giving in the form of cash... Yah I know, helping people out by giving them money seems novel, but apparently it only accounts for around 10% of the total aid economy (Over $3 billion) "June 11, 2007 issue - The last thing you'd probably expect to see a Malawian drought victim do is whip out her ATM card and pull cash out of a machine. But that's exactly how some aid recipients in this beleaguered African nation now receive their monthly entitlements. As part of a relief experiment, the British government is handing out £750,000 of aid in the form of cash rather than food. Instead of standing in line for hours waiting for a sack of rice, Malawians simply swipe a card in one of several special mobile ATM machines located in pick-up trucks, then use the local currency to buy food, medicines, fertilizer or even pay for housing or school fees for their children." Newsweek http://www.msnbc.msn.com/id/19000117/site/newsweek/ But I'm not sure that this is the best way for aid to get to poor people. First, I can see a lot of room for corruption, mismanagement, and damage to local economies in the form of inflation. (For the last one, I imagine this is the least of their problems.) But isn't it more effective to bring in the food and supplies and give it to the people in need instead of letting the local governments handle the money. I think many countries in Africa that reside over extremely poor populations have shown they do not have the desire, infrastructure, or morals to help their people... So how is giving them bank accounts and ATM cards going to help the people?
	__________________ "Let the bears pay the bears tax, I pay the Homer tax!"

6th June 2007, 09:32 AM	#2
Darth Rotor Salted Sith Cynic Join Date: Aug 2006 Location: Rat cheer Posts: 34,264	Originally Posted by MilwaukeeMike I think many countries in Africa that reside over extremely poor populations have shown they do not have the desire, infrastructure, or morals to help their people... So how is giving them bank accounts and ATM cards going to help the people? Could the answer be: it workes so well in New Orleans and elsewhere after Hurricane Katrina that it was worth a try in Africa? This might also be "other things we are trying don't work so well, let's try something else." If it works, hey, sweetness and light. If not, no problem, previous efforts weren't so hot either. Worth a try. Not sure why you tossed "morals" into this: these folks are sorta far down on Maslow's pyramid, let's cut their "morals" a break while their food and shelter needs are the issue, eh? DR
	__________________ Helicopters don't so much fly as beat the air into submission. "Jesus wept, but did He laugh?"--F.H. Buckley____"There is one thing that was too great for God to show us when He walked upon our earth ... His mirth." --Chesterton__"If the barbarian in us is excised, so is our humanity."--D'rok__ "I only use my gun whenever kindness fails."-- Robert Earl Keen__"Sturgeon spares none.". -- The Marquis

6th June 2007, 09:44 AM	#4
BPSCG Cannibal Join Date: Mar 2002 Location: Looting Fafner's Cave Posts: 17,556	Originally Posted by Darth Rotor Not sure why you tossed "morals" into this: these folks are sorta far down on Maslow's pyramid, let's cut their "morals" a break while their food and shelter needs are the issue, eh? Starvin' Marvin in Space!
	__________________ Philanthropist (n.) - Someone who spends his own money to advance his version of Utopia. Socialist (n.) - Someone who spends your money to advance his version of Utopia.

6th June 2007, 09:38 AM	#3
Dr Adequate Banned Join Date: Aug 2004 Location: Waiting Long Enough By The River Posts: 17,897	Originally Posted by MilwaukeeMike But I'm not sure that this is the best way for aid to get to poor people. First, I can see a lot of room for corruption, mismanagement, and damage to local economies in the form of inflation. (For the last one, I imagine this is the least of their problems.) But isn't it more effective to bring in the food and supplies and give it to the people in need instead of letting the local governments handle the money. I think many countries in Africa that reside over extremely poor populations have shown they do not have the desire, infrastructure, or morals to help their people... So how is giving them bank accounts and ATM cards going to help the people? It says in the article that it's an "experiment": presumably the questions you raise are the questions it's intended to answer.