Freedom as development, not vice-versa
“Before about 1800, famine was a common cause of death everywhere. The majority of the world’s population were subsistence farmers. When conditions were good, they produced enough to eat and a little more. When conditions were bad, they consumed their savings. If the bad conditions persisted, they died.
Then, first in England and soon in many other parts of the world, people began to rise above subsistence. They specialized more narrowly than before in the production of certain goods and they traded with others who also specialized. This led to increased output, as specialists were able to produce more than generalists. Competition in the supply of goods drove innovation, which led to further increases in output. Agricultural production rose dramatically and famine declined.
…Since the 1920s, global deaths from drought-related famines have fallen by 99.9%. The reason? Continued specialization and trade, which has skyrocketed the amount of food produced per capita, and has enabled people in drought-prone regions to diversify and become less vulnerable.
In places where trade is restricted, people are forced to remain subsistence farmers. So, when drought occurs, the majority suffer and many die. The Indian drought of 1965 affected 100 million people, of which 1.5 million died. India subsequently liberalized and farmers adopted new technologies, notably high-yielding varieties of wheat and rice developed by Norman Borlaug, a truly deserving recipient of the Nobel Peace Prize. Although the droughts of 1987 and 2002 affected three times as many people, there were only 300 reported deaths in 1987 and none in 2002.
…Instead of carping about climate change and more aid, the World Bank, Western governments and all those charities in Africa should learn the lessons from one of this year’s economics Nobel laureates. Elinor Ostrom has spent a lifetime analyzing the ways in which humans devise institutions—from formal property rights to informal “rules of the game”—that let them solve their own problems. Her work emphasizes the need for such institutions to be built from the bottom up, without interference from higher levels of government.”
Read the entire article by Julian Morris here
