Sunday, April 01, 2012

Sustainable development?

The indefatigable Michael Clemens reports that a new Millennium Village project in Ghana plans to spend a minimum of $12,000 per household lifted out of poverty in the project. This is something north of 30 times higher than average annual household income in the region where the project is going.

I have no doubt that many of these households will be "lifted out of poverty" during the years when these expenditures are made.

But, I don't think it can be called development.

Clemens proposes an interesting cost -benefit hurdle for the MVP by noting that if the money was placed in a trust that earned 5%, each household would receive $600 / year FOREVER (which would be triple the average annual household income in the region). He asks if the MVP method of spending the money will permanently triple the average incomes of these households.

UPDATE: THE FIRST SENTENCE OF THIS POST WAS REVISED TO BE ACCURATE. SORRY FOR THE MISTAKE!!


4 comments:

Jim said...

"The indefatigable Michael Clemens reports that a new Millennium Village project in Ghana plans to spend a minimum of $12,000 per household in the project."

No, that's not what Michael Clemens said. He said that the total project expenditure divided by the expected reduction in the number of households in poverty would be around $12,000. I would have thought you should be able to see why that's different from 'expenditure per household'.

Angus said...

Thanks Jim. Just a brain cramp on my part. I corrected it.

Sustainable Development said...

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Natalie said...

Non-profit development groups are doing this in Durham too. I saw one that proposed spending about 70k on each SRO (10 unit building)which would then charge rent each month, paid for by the SSI benefits that you had to have in order to rent to SRO.