fbpx
01 / 05
The Questionable Economics of Foreign Aid

Blog Post | Economic Growth

The Questionable Economics of Foreign Aid

Strong institutions and good policy - not foreign aid - will lift Africans from poverty.

In 2015, David Cameron’s government enshrined in law the UK’s commitment to spend 0.7 per cent of its gross national income on foreign aid each year. Ahead of last month’s general election, Theresa May reaffirmed Cameron’s commitment, which amounted to over 13 billion pounds in 2016. “Let’s be clear,” May said, “the 0.7 per cent commitment remains and will remain.”

British charities, including Save the Children, Oxfam, Christian Aid and Comic Relief, praised Mrs. May’s decision, stating that “the aid should be untied, focused on poverty reduction and spent through an independent Department for International Development.” Yet many of the same organizations are also concerned about what they perceive as the lack of government spending at home.

“Grenfell Tower is a Hurricane Katrina moment, revealing the shameful state of Britain,” wrote Oxfam’s strategic adviser Duncan Green following the Grenfell Tower fire. “Austerity, which has seen the budgets of local government cut dramatically with the greatest cuts felt by the poorest areas,” was partly to blame for the disaster, he averred.

While the continued plight of the world’s poor and problems experienced by the British underclass should not occasion jokes about “magic money trees”, it is a simple fact of life that the UK, like most Western nations, must economize. The British debt and deficit amount to 86 per cent and 2.6 per cent of GDP, and while UK domestic spending is best left to British economists to address, I would like to offer some thoughts on foreign aid. And, in particular, the theory behind foreign aid and its impact on the world’s poorest region, Africa.

The first question is whether aid is necessary. In the 1950s and 1960s, many development economists believed in the “vicious cycle of poverty” theory, which argued that poverty in the developing world prevented the accumulation of domestic savings. People in poor countries consumed all of their income and had nothing left to save and invest. Low savings resulted in low domestic investment, and low investment was seen as the main impediment to rapid economic growth. Foreign aid, therefore, was intended to fill the apparent gap between insufficient savings and the requisite investment in the economy.

Today’s calls for more foreign aid are often based on the same theory. Thus, the UK’s Department for International Development (DfID) website claims that it is “targeting British international development policy on economic growth and wealth creation [in poor countries].” The United States Agency for International Development (USAID) promises to work “with private-sector companies to spur economic development, so that citizens can participate in a vibrant economy that allocates resources wisely.”

Yet experience contradicts the “vicious cycle of poverty” theory. Today, many formerly poor countries enjoy high standards of living, while others have stagnated or, in some cases, regressed. For example, the 1960 per-capita income in South Korea was $1,102. In Ghana it was $1,053. By 2015 Korea had reached $25,022, while Ghana is yet to break $2,000, only rising to $1,696 (the figures are in 2010 dollars). Yet, as can be seen in the graph below, Ghana received much more in net official development aid (ODA) per capita than South Korea between 1960 and 2015 (figures are in current U.S. dollars).

As New York University Professor William Easterly wrote, “It doesn’t help the poverty trap story that 11 out of the 28 poorest countries in 1985 had not been in the poorest fifth back in 1950. They had gotten into poverty by declining from above, rather than being stuck in it from below, while others escaped. If the identity of who is in the poverty trap keeps changing, it must not be much of a trap.”

Countries that improve their policies and institutions — by increasing their trade openness, limiting state intervention in the economy, building a business-friendly environment, and emphasizing protection of property rights and the rule of law — tend to grow faster than others. Such countries also tend to attract foreign capital, which can help to increase economic growth. Improvement in policies and institutions also creates a suitable environment for growth in domestic investment. As trust in institutions such as the rule of law and protection of private property grows, people feel more confident investing in the local economy.

Today, the size and the scope of global capital markets make Africa’s access to capital potentially easier than at any time in the past. Indeed, private capital flows to developing countries now dwarfs aid flows.

According to the Brookings Institution, ODA to African countries has fallen from “62 per cent of total external flows in 1990 to 22 per cent in 2012,” and the disappearing aid has been largely replaced by private capital. “The volume of external flows to the region increased from $20 billion in 1990 to above $120 billion in 2012. Most of this increase in external flows to sub-Saharan Africa can be attributed to the increase in private capital flows.”

Sub-Saharan Africa is the least economically free region in the world. There is a general consensus among economists that Africa needs to catch up with the rest of the world in terms of economic liberalization. Aid is often intended to promote policy reform, yet it has helped to create disincentives to liberalization for a number of reasons.

For example, aid is often driven by foreign policy considerations, not economics. For much of the Cold War, African countries were given bilateral and multilateral assistance on the basis of their geopolitical importance to the West and the Soviet Union. More recently, a 2015 study by AidData revealed that Chinese aid to Africa is used to both “promote Chinese foreign policy goals,” and advance “the economic interests of the Chinese state as well as Chinese firms operating abroad.” Likewise, American aid to African countries like Ethiopia is often strongly influenced by geopolitical interests. As a recent piece in the Harvard International Review noted, American aid to Ethiopia was long driven by a desire to prevent the spread of Islamic extremism in the country.

Aid has not led to economic reforms in Africa. In the 1980s, the World Bank started to promote structural adjustment loans that were meant to disburse aid to countries in exchange for their commitment to economic reforms. Such conditional lending soon proved ineffective, in part because aid agencies have no enforcement mechanism, and also because they have a well-known bureaucratic incentive to lend, which undermines the credibility of their conditionality.

In fact, aid may also actively retard policy reform. Between 1970 and 1993, for example, the World Bank and the IMF gave Zambia 18 adjustment loans with little or no reform staking place, forcing World Bank researchers to conclude that “this large amount of assistance sustained a poor policy regime.” More generally, two World Bank researchers concluded that “higher aid slowed reform [in the developing world] over the 1980–2000 period.”

Even in those countries that follow sensible macroeconomic policies, aid appears to have no positive effect and may go so far as to discourage reform. Some World Bank research claimed that developing countries that follow good fiscal, monetary, and trade policies benefit from foreign aid. But that research has been difficult to independently corroborate. Scholars who used updated World Bank data found no positive correlation between foreign aid and economic growth in countries with “good policies.” Research suggests that when governments do decide to undertake economic reforms, they tend to do so because of domestic factors, including economic crises.

In short, the theoretical case for foreign aid is, at best, questionable, and aid’s practical impact on some of the world’s poorest economies may well have been harmful.

This first appeared in CapX.

Blog Post | Economic Growth

The Human Meaning of Economic Growth

Misunderstandings of the relationship between wealth and flourishing have obscured the anti-​human implications of slowing growth rates.

Summary: Economic growth has been a driving force behind the dramatic improvements in human wellbeing over the past few centuries. This growth has resulted from the Enlightenment, the Industrial Revolution and capitalism. Criticisms of growth stem in large part from misunderstandings of the relationship between economics and human values.


Why is the world as prosperous a place as it is? And why isn’t it much more prosperous? These questions are broad enough to admit countless answers, but as good an answer as any is the economic growth rate.

You might have heard that economic growth is overrated, that it’s a fine idea, but unsustainable, or even that it’s entirely counterproductive because it puts profits above people and the economy above the planet. These narratives have been widespread in recent years. They’re also based on a fundamental misconception of the nature of wealth and what a growing economy means for humanity.

Properly conceived, wealth is the actualization of human values in the real world. Economic growth is the upward trajectory of human achievement. The forms of prosperity that most of humanity strives for, such as health, knowledge, pleasure, safety, professional and personal freedom, and so many others, were vastly scarcer throughout most of human history—and would be orders of magnitude more abundant today if economic policies had been slightly different. That is the power of economic growth, and it is within our power to influence the world of future generations for better or worse.

The History of Economic Growth

Virtually everywhere and always throughout human history, economic growth was nonexistent. While pockets of momentary economic progress took place in certain instances, the overall trend was one of perpetual stagnation. But just a few hundred years ago, with the advent of the Enlightenment, the Industrial Revolution, and capitalism, that all began to change.

When the conceptual tools of science became widely applied to create the technological advancements of the Industrial Revolution, they brought an unprecedented optimism about the capacity for investment in new discoveries and inventions to reliably uncover useful knowledge of the natural world. This change inspired the broad transformation of mere wealth (resources hidden away in vaults and treasure chests) into capital (resources invested in new inventions and discoveries).

By the time Friedrich Engels and Karl Marx wrote their Communist Manifesto in 1848, the optimism of investment had already transformed Western Europe. As Engels and Marx saw it, “The bourgeoisie [capitalist class], during its rule of scarce one hundred years, has created more massive and more colossal productive forces than have all preceding generations together. Subjection of Nature’s forces to man, machinery, application of chemistry to industry and agriculture, steam-​navigation, railways, electric telegraphs, clearing of whole continents for cultivation, canalisation of rivers, whole populations conjured out of the ground — what earlier century had even a presentiment that such productive forces slumbered in the lap of social labour?”

Marx and Engels misunderstand the complex reasons for increased productivity (attributing it to untapped “social labour”) but the quotation is significant because, despite their sympathy for state centralization of the economy, they could not ignore the success of capitalism.

While no year before 1700 saw a gross world product of more than $643 billion (in international inflation-​adjusted 2011 dollars), by 1820 global GDP reached 1 trillion. By 1940 the number had passed 7 trillion, and by 2015 it had passed 108 trillion.

Contrary to the popular misconception that capitalism has made the rich richer and the poor poorer, this new wealth contributed to growing the economies of every world region while outpacing population growth. While the world’s extreme poor have become wealthier so too have all other economic classes.

What’s So Great about Growth?

A growing economy isn’t about stacks of paper money getting taller, or digits being added to the spreadsheets of bank ledgers. These things may be indicators of growth, but the growth itself is composed of goods and services becoming more abundant. Farms and factories producing more and better consumption goods; engineers creating better machines and materials; clean water reaching more communities; sick people receiving better healthcare; scientists running more experiments, poets writing more poems, education becoming more broadly accessible; and for whatever other forms of value people choose to exchange their savings and labor.

Gross domestic product or GDP (called gross world product or world GDP when applied at the global level) is an imperfect but useful and widely employed measure of economic growth, and its reflection in the real world takes such forms as rising life expectancy, nutrition, literacy, safety from natural disaster, and virtually every other measure of human flourishing. This is because, at the most fundamental level, “economic growth” means the transformation and rearrangement of the physical environment into more useful forms that people value more.

Before the year 1820, human life expectancy had always been approximately 30-35 years. But with the great decline in poverty and rise of capital investment in technology and medicine, global life expectancy has roughly doubled in every geographic region in the last century. Similar trends have occurred in global nourishmentinfant survivalliteracy, access to clean water, and countless other crucial indicators of wellbeing. While these trends are bound to take the occasional momentary downturn because of life’s uncertainties and hardships, the unidirectional accumulation of technological and scientific knowledge since the Age of Enlightenment gives the forward march of progress an asymmetric advantage. For example, the COVID-19 pandemic and lockdowns resulted in a brief and tragic decline in life expectancy, but the number has since risen to an all-​time high of 73.36 years as of 2023.

What is the direct causal connection between economic growth and these improvements to human wellbeing? Consider the example of deaths by natural disaster, which have fallen in the last century from about 26.5 per 100,000 people to 0.51 per 100,000 people. More wealth means buildings can be constructed from stronger materials and better climate controls. And when those protections aren’t enough, a wealthier community can afford better infrastructure such as roads and vehicles to efficiently get sick or injured people to the hospital. When those injured end up in the hospital, a wealthier society’s medical facilities will be equipped with more advanced equipment, cleaner sanitation, and better-​trained doctors that will provide higher quality medical attention. These are just a few examples of how wealth allows humans to transform their world into a more hospitable place to live and face the inevitable challenges of life.

The benefits of economic growth go far beyond the maximization of health and safety for their own sake. If what you value in life is the contemplation of great art, the exaltation of your favorite deity, or time spent with your loved ones, wealth is what awards you the freedom to sustainably pursue those values rather than tilling the fields for 16 hours per day and dying in your 30s. Wealth is what provides you access to an ever-​improving share of the world’s culture by increasing the abundance and accessibility of printed, recorded, and digital materials. Wealth is what provides you with the leisure time and transportation technology to travel the world and experience distant wonders, remote holy sites, and people whose personal or professional significance to you would otherwise dwell beyond your reach.

As the Harvard University cognitive scientist Steven Pinker demonstrates in his popular book Enlightenment Now, “Though it’s easy to sneer at national income as a shallow and materialistic measure, it correlates with every indicator of human flourishing, as we will repeatedly see in the chapters to come.”

The Long-​Term Future of Growth

Human psychology is ill-​equipped to comprehend large numbers, especially as they relate to the profound numerical implications of exponentiation. If it sounds insignificant when politicians and journalists refer to a 1 percent or 2 percent increase or decrease in the annual growth rate, then like most people, you’re being deceived by a quirk of human intuition. While small changes to the economic growth rate may not have noticeable effects in the short term, their long- term implications are absolutely astonishing.

Economist Tyler Cowen has pointed out in a Foreign Affairs article, “In the medium to long term, even small changes in growth rates have significant consequences for living standards. An economy that grows at one percent doubles its average income approximately every 70 years, whereas an economy that grows at three percent doubles its average income about every 23 years—which, over time, makes a big difference in people’s lives.” In his book Stubborn Attachments, Cowen offers a thought experiment to illustrate the real-​world implications of such “small changes” to the growth rate: “Redo U.S. history, but assume the country’s economy had grown one percentage point less each year between 1870 and 1990. In that scenario, the United States of 1990 would be no richer than the Mexico of 1990.”

Cowen gave the negative scenario in which the growth rate was 1 percent slower. US Citizens would have drastically shorter lifespans, less education, less healthcare, less safety from violence, more susceptibility to disease and natural disaster, fewer career choices, and so on. Now imagine the opposite scenario, in which US economic policy had just 1 additional percentage point of growth each year. The average American today would in all probability be living much longer, having much nicer housing, choosing from far more career opportunities, and enjoying more advanced technology.

Just imagine your income doubling, and what you could do for yourself, your family, or the charity of your choice with all that extra wealth. Something along those lines could have happened to most Americans. But instead, growth has been significantly slowed in the United States because taxes and regulations have constantly disincentivized and disallowed new innovations.

At the margins, many dying of preventable diseases could have been cured, many who spiraled into homelessness could have accessed the employment opportunities or mental health treatment they needed, and so on. While economic fortune seems like a luxury to those who already enjoy material comfort, there are always many at the margin for whom the health of the economy is the difference between life and death.

These are among the reasons that Harvard University economist Gregory Mankiw concludes in his commonly used college textbookMacroeconomics, that, “Long-​run economic growth is the single most important determinant of the economic well-​being of a nation’s citizens. Everything else that macroeconomists study — unemployment, inflation, trade deficits, and so on — pales in comparison.”

When we think of the future our children or grandchildren will live in, depending on our choices between even slightly more or less restrictive economic policies today, we could be plausibly looking at a future of widespread and affordable space travel, life-​changing education and remote work opportunities in the metaverse, new sustainable energy innovations, a biotechnological revolution in the human capacity for medical and psychological flourishing, genome projects and conservation investments to revive extinct and protect endangered species, and countless other improvements to the human condition. Or we could be looking at a drawn-​out stagnation in poverty alleviation, technological advancement, and environmental progress. The difference may well hinge on what looks today like a tiny change in the rate of compounding growth.

At the broadest level, more wealth in the hands of the human species represents a greater capacity of humans to chart their course through life and into the future in accordance with their values. Like all profound and far-​reaching forms of change, economic growth has a wide range of consequences, some intended and others unintended, many desirable and many others undesirable. But it is not a random process. It is directed by the choices of individuals, and allocated by their drive to devote more resources and more investment into those things they view as worthwhile. Ever since the Scientific Revolution, the Enlightenment, and the Industrial Revolution, the investment in human values has been on balance a positive sum game, in which one group’s gains do not have to come in the form of another group’s losses. This is demonstrated by the upward trends in human flourishing since the global rise in exponential economic growth. Indeed, it is intrinsic to the fundamental difference between a growing and a shrinking or stagnant economy: In a growing economy, everyone can win.

This article was published at Libertarianism.org on 11/17/2023.

Blog Post | Progress Studies

The Rediscovery of Human Progress

A new movement promoting scientific, technological, and economic solutions to humanity's problems emerges.

Summary: The modern world is built on centuries of progress, yet many take its comforts and opportunities for granted. A new movement aims to redefine our understanding of advancement, and focuses on celebrating humanity’s achievements to shape an optimistic narrative for the future. From fostering technological innovation to advocating for economic growth, this coalition strives to combat cultural pessimism and inspire a renewed belief in the potential for a better world.


“The tragedy of today is that we are the heirs and the beneficiaries of thousands of years of progress and we take it for granted. You wake up in a nice soft bed. You go get fresh milk and orange juice from the fridge. You take a shower under hot running water. You hop on the train or car to work. You take the elevator up to the 40th floor. You earn your living by typing on a computer behind big plate glass windows in an air-conditioned building. You relax in the evening by streaming movies and music or catching up with friends from around the world in your real-time video calls. None of this existed a couple centuries ago. A lot of it didn’t exist a few decades ago. And yet it’s just so easy to go through your days enjoying all of that without giving a second thought to where it all came from or how, or how challenging it was to bring all of those amazing inventions into the world.”

Jason Crawford, founder of the Roots of Progress project, is one of the leaders of a new pro-progress movement that is coalescing in a collection of think tanks, websites, and other intellectual incubators. It celebrates humanity’s achievements so far. It judges progress not in technocratic terms but with an eye on outcomes for individual human beings. And it imagines, again in Crawford’s words, an “ambitious technological future that we want to live in and are excited to build.”

Rethinking Progress

These groups promoting economic growth spurred by scientific, technological, and industrial progress are quite distinct from modern political progressives. Contemporary progressives trace their ideological lineage back to the Progressive movement that arose in American politics around the turn of the 20th century as a response to the consequences of mass urbanization, mass immigration, increasing economic inequality, and rapid industrial growth.

Fundamental then as it is today among modern progressives is their certainty that they know the direction in which “progress” must go and that exercise of government power guided by a technocratic elite is central to achieving their version of “progress.” Princeton University historian Thomas C. Leonard observes that early 20th century “progressives believed in a powerful, centralized state, conceiving of government as the best means for promoting the social good and rejecting the individualism of (classical) liberalism.” In addition, he says, they believed in “the disinterestedness and incorruptibility of the experts who would run the technocracy they envisioned, and a faith that expertise could not only serve the social good, but also identify it.”

A hundred years later, one illustrative distillation of modern progressivism is “The Progressive Promise” manifesto issued by the 101 members of the Congressional Progressive Caucus. “We believe that government must be the great equalizer of opportunity for everyone,” forthrightly states the Promise. “We support bold policies to close the gap between the rich and everyday Americans and ensure our government delivers essential services to every person in this country.” They envision “transformational change” that includes “ending poverty and income inequality,” and “advancing racial justice and equity in every policy.” It is notable that unlike their early 20th century forebears’ belief in technological progress and economic growth, this essentially redistributionist manifesto nowhere mentions policies aimed at advocating and promoting either in the 21st century. In their view, uncontrolled economic growth is leading to environmental catastrophe and to appalling social consequences.

The contours of the new progress movement stretch from the Human Progress project at the libertarian Cato Institute to the “eco-modernist” initiatives at the Breakthrough Institute and the Pritzker Innovation Fund. Four relatively new groups at the forefront of the pro-progress forces are The Roots of Progress, the Institute for Progress, The Progress Network, and Works in Progress. Together, they are—as The Progress Network puts it—”building an idea movement that speaks to a better future in a world dominated by voices that suggest a worse one.”

Cultural Pessimism

There are indeed many voices who say our future is bleak. William Rees, a population ecologist at The University of British Columbia, claimed last year that “collapse is not a problem to be solved, but rather the final stage of a cycle to be endured.” Also last year, Stanford University biologist and indefatigable population doomster Paul Ehrlich told 60 Minutes “that the next few decades will be the end of the kind of civilization we’re used to.” A 2022 paper in the Proceedings of the National Academy of Sciences declared that climate change could “result in worldwide societal collapse or even eventual human extinction.” Last year an article in the Journal of Industrial Ecology suggested that civilizational collapse is likely this decade and certain by 2040.

These dire prognostications are reflected in bleak public attitudes, especially in rich developed countries. A YouGov poll in 2016 found only 6 percent of Americans thought the world was getting better. Other rich countries had even lower scores: Germany and the United Kingdom were at 4 percent, Australia and France at 3 percent. (The Chinese were the most optimistic, with 41 percent saying the world was getting better.) In 2017, a Pew Research Center poll reported that 41 percent of Americans thought that life today was worse than it was 50 years ago, compared to 37 percent who thought it was better.

In 2021, The Lancet published a poll of 10,000 young people (ages 16 to 25) in 10 countries (Australia, Brazil, Finland, France, India, Nigeria, Philippines, Portugal, the U.K., and the USA) asking how they felt about climate change that found pervasive pessimism about the future. About 75 percent reported that “they think the future is frightening,” with more than 55 percent agreeing that “humanity is doomed” and 39 percent saying they are “hesitant to have children.” About 45 percent responded that “their feelings about climate change negatively affected their daily life and functioning.” A YouGov poll in 2022 found more than 30 percent of American adults thinking climate change will lead to extinction of the human race.

In 2023, 76 percent of Americans in an NBC survey were “not confident that life for our children’s generation will be better than it has been for us.” That same year, a Wall Street Journal poll similarly reported that 78 percent of Americans believe that life for their children will not be better than it was for themselves. A November poll by the European Council on Foreign Relations found only 24 percent of Americans were optimistic about their country’s future. These are the headwinds that the emerging progress movement is combating.

The Optimistic Opposition

There is a division of labor between the pro-progress groups. The Roots of Progress is focused on creating a new philosophy of progress and promoting young intellectuals who propound it. In an essay outlining what that might look like, Crawford argues for “a renewed vision of the future” that accelerates technological progress to provide humanity with cheap, abundant, clean fusion energy, permanent settlements in space, and cures for diseases and even aging itself using advanced biotech. “A future where we don’t just end poverty, but create new levels of wealth so fantastic that they make today’s wealth look like poverty in comparison—just as was done over the last two hundred years,” he writes.

“We are going to need a large body of intellectuals, of writers, creatives, educators, and journalists,” says Crawford. To develop this cadre, the group has created a fellowship program as “a career accelerator for progress intellectuals.” There were over 500 applicants for the first cohort, of which 19 were selected. The selected fellows analyze how to remove the regulatory roadblocks that stymie infrastructure and clean nuclear power deployment, how to incentivize countries to welcome more immigration, and how to overcome pervasive risk aversion in awarding research grants.

The Institute for Progress (IFP), co-founded by Caleb Watney and Alec Stapp, focuses on finding public policy ideas that can boost innovation sooner rather than later. “Because of the unique position of the United States, we have a moral call to really take the lead and embrace our role as the world’s R&D lab,” argues Watney. The U.S., he notes, has particular advantages when it comes to scientific and technological progress: the concentration of the world’s top universities, the fact that the world’s top scientific minds want to immigrate here, a huge and dynamic economy that enables the rapid iteration and prototyping of new technologies.

“The Institute for Progress is not an organization focused on mass politics,” Watney adds. “We are not going to get people to hold up banners saying, ‘I want total factor productivity growth to be higher.'” Instead, it’s “a very incrementalist organization” that looks “for issues that are important. If you were to change them, would they really matter? Are they tractable? Does it seem like you could actually move the needle on them in a useful way in, say, the next five years?” Among other activities, IFP researchers engage in such nitty-gritty work as filing detailed comments on federal agency proposals. For example, the IFP recently advised the Biomedical Advanced Research and Development Authority on how to hasten the development of more effective coronavirus vaccines. Also, the IFP signed an agreement last year to partner with the National Science Foundation to help the agency develop faster mechanisms for funding high-risk, high-reward research proposals.

Meanwhile, Works in Progress publishes long-form case studies on how entrepreneurs, inventors, researchers, and others have successfully made progress in fixing various problems. It also prints proposals for how to ameliorate those still unresolved. Among the topics covered in recent articles: overcoming obstacles to tapping geothermal energy, upzoning in New Zealand to address housing shortages, how advance market commitments could have spurred the development of an effective malaria vaccine more quickly, and—in an article by Reason‘s own Peter Suderman—how mixologists surmounted the problem of boring drinks.

The Progress Network—based at New America, a liberal-leaning think tank—aims to bring together an ideologically diverse set of pro-progress scholars and pundits. Its founder, money manager Zachary Karabell, says he’s aiming to “create a cohort of people who are united by a sensibility, but certainly not united by a monolithic view of what’s working and what isn’t.” Its cohort of associates includes the Cato Institute’s Mustafa Akyol, MIT economist Erik Brynjolfsson, George Mason University economist Tyler Cowen, Harvard psychologist Steven Pinker, journalist Matthew Yglesias, Columbia University linguist (and New York Times columnist) John McWhorter, Depolarization Project CEO Alison Goldsworthy, and Pritzker Innovation Fund chief Rachel Pritzker. Other Network members include the founders of both The Roots of Progress and the Institute for Progress. Karabell ruefully acknowledges that it is hard to get the independent “idea entrepreneurs” he has recruited into the Progress Network to collaborate. For now, the Network has assembled 120 or so members whose voices make the constructive point that the world, on the whole, is getting better. The Network highlights stories detailing the actuality of progress “from around the world that get kind of buried under the avalanche of negative stories” through its What Could Go Right? podcast, a daily newsletter, and social media.

The heads of all four organizations cite the animating influence of the July 2019 Atlantic article “We Need a New Science of Progress,” written by Cowen and Patrick Collison, the billionaire founder of the internet payments company Stripe. “The success of Progress Studies will come from its ability to identify effective progress-increasing interventions and the extent to which they are adopted by universities, funding agencies, philanthropists, entrepreneurs, policy makers, and other institutions,” Cowen and Collison argued. “In that sense, Progress Studies is closer to medicine than biology: The goal is to treat, not merely to understand.”

Cowen and Collison are involved in the movements in other ways too. Both The Roots of Progress and Works in Progress have received grants from the Emergent Ventures project, administered by Cowen. Works in Progress became part of Stripe Press in 2022.

How Progress Got a Bad Reputation

Why did progress fall out of favor? Crawford suggests the strong belief in economic, technological, and social improvement that characterized 19th century Europe and America was dented by the next century’s bloody world wars. “People before World War I had hoped that technology and economic growth would actually lead to an end to war and that we were entering a new era of world peace,” he says. “That proved to be disastrously wrong. Not only had technology not led to an end to war, it had actually made war all the more horrible and destructive. It had given us the machine gun, chemical weapons, the atomic bomb.”

Crawford also notes the 20th century saw the emergence of institutions featuring “top-down control by a technical elite.” This, he argues, prompted “a countercultural idea that saw progress as linked to this authoritarianism and rejected both.”

Watney points to the negative externalities that have accompanied technological development and economic growth—air and water pollution, climate change, deforestation—and suggests these have contributed to the disillusionment with progress as well. On top of that, he says, a spirit of complacency and safetyism has emerged in rich developed countries, adding new roadblocks.

“We have become the victims of our success, to a certain extent,” Watney argues. “As you get increasing levels of wealth and productivity, you’re more inclined to keep hold of the safety and the gains that you already have and less likely to risk a little bit to gain a lot more.” Or as Karabell puts it, “If you’re more worried about the unknown negative consequences than you’re excited about unknown positive consequences, you’re basically going to be sclerotic and not do anything.”

You should not confuse this appreciation for past progress with a belief that progress is complete. Karabell stresses that he doesn’t believe “we should just shut up and recognize” everything that’s going right. It’s just that “we are demonstrably able to create problems and we’re demonstrably able to solve them.”

Crawford thinks progress has slowed in recent decades. Two big reasons for the slowdown, he argues, are “the growth of the regulatory state” and “the centralization and bureaucratization of research, and in particular the funding of research.” Both impose unnecessarily constraining limits on scientific freedom and the types of opportunities and inventions that can be pursued.

“It’s totally fair to be frustrated with a lot of the excesses of the regulatory state,” says Watney. More hopefully, he adds: “If you’re so pessimistic about the current state, that means there should be lots of low-hanging fruit. Small changes could actually lead to really large increases.”

The IFP’s chief aim is to pick that low-hanging fruit by cutting down the overburden of regulation and reforming the stodgy processes that encrust science funding. So the group is working to streamline the National Environmental Policy Act so that it no longer blocks for years the building of critically needed infrastructure: roads, pipelines, electrical lines, and nuclear, renewable, and geothermal energy projects. The institute also wants to speed up the approval processes at the Food and Drug Administration and the Nuclear Regulatory Commission—in the first case to get new treatments to patients more quickly, and in the second to deploy modern nuclear reactors faster. It is pushing to reform the science funding programs at the National Institutes of Health (NIH) and the National Science Foundation. For example, researchers associated with the IFP note that NIH peer review grant evaluations now tend to focus on the probability that research proposals will achieve their primary outcomes. Thus this evaluation process generally steers funding away from high-risk, high-reward research. One IFP proposal to overcome this conservative bias is to have peer reviewers first assess how valuable the new cures and treatments stemming from the proposed research would be should it prove successful in developing new fundamental knowledge.

Trying To Make It Better

All these projects direct people’s attention to Gapminder, Human Progress, Our World in Data, and other efforts that comprehensively document how much progress is still being made today. These changes include increasing average life expectancy, cutting extreme poverty, reducing childhood mortality, increasing wealth, supplying greater access to education, and empowering women’s rights.

Yet merely pointing out the facts of progress isn’t enough to persuade a lot of folks. It would be great, says Karabell, if it worked just to tell people, “You should all just read the data and change your views.” But it usually doesn’t.

So another theme that unites these four efforts is their embrace of narrative as a way to restore cultural faith in progress. “You can’t throw facts in the face of people’s emotions, or at least you’ve got to be very careful about how you do that,” says Karabell. “You can’t tell people that they should feel better just because the data tells them they should.” Crawford agrees: “Narratives have a lot of power and they have more power than charts and graphs.”

Saloni Dattani of Works in Progress explains, “One of the reasons that we started Works in Progress was we wanted to allow people to really go deep into some area that they were interested in and make a stronger case and longer case for something that they thought could improve the world or something that they thought was a challenge.” Examples include a recent long article, “Watt lies beneath,” that details how advances in geothermal energy could provide humanity with essentially unlimited supplies of clean energy, and the short video “Gentle Density: Brooklyn” describing how Brooklyn, New York, evolved into the second-most-densely populated county in the U.S.

As another example, Zurich-based Roots of Progress Fellow Alex Telford suggests over at his Liveware newsletter on Substack that the static concepts of health and disease are barriers to progress toward perfecting precision medicine aimed at maintaining bodily homeostasis. In her co-authored Salt Lake Tribune op-ed, “We should pay farmers to save the Great Salt Lake,” Roots of Progress fellow Jennifer Morales explains how water markets can stop that body of water from drying up.

Karabell continues: “How one writes that story about the future is part and parcel of shaping that future. If you begin with ‘We’re fucked,’ it’s really hard to solve your problems because you’re basically convinced that you can’t.”

These proponents of progress do not think that they will change the world overnight. “You have to create a critical mass,” says Karabell, “and ideas take a long time to have an effect on society. But things do change, cultural attitudes do change.” Dattani describes herself as an “impatient optimist.”

“Pessimism is more arrogant than optimism,” Karabell concludes. “Optimism is simply that we know for a fact that we are capable of solving problems. Pessimism is the conviction that we are not. The future isn’t worse unless people stop trying to make it better.”

This article was published at Reason on 4/6/2024.

MSN | Wealth & Poverty

It Turns Out despite Avocado Toast, Millennial Wealth Is Booming

“A new report from the Center for American Progress, a left-leaning think tank, looked at how wealth changed for different age cohorts from 2019 to 2023 by analyzing data from the Federal Reserve’s Distributional Financial Accounts.

The analysis found good news for the much-beleaguered millennial generation: Their wealth grew at a historic clip.

Per CAP’s analysis, from the end of 2019 to the end of 2023, the average wealth of households under 40 grew by 49% — a $85,000 increase, to $259,000 from $174,000. The analysis said that rate of rapid wealth growth had never happened before in the data series’ history, and it came after wealth growth remained relatively stagnant for young Americans prepandemic.

Here’s the whopper: Wealth gains were even higher for just millennials, who were 23 to 38 in 2019; their wealth doubled from the end of 2019 to 2023.”

From MSN.