The Politically Incorrect Guide to Ending Poverty

The Atlantic ^ | July/August 2010 | Sebastian Mallaby

[LibWhacker]

In the 1990s, Paul Romer revolutionized economics. In the aughts, he became rich as a software entrepreneur. Now he’s trying to help the poorest countries grow rich—by convincing them to establish foreign-run “charter cities” within their borders. Romer’s idea is unconventional, even neo-colonial—the best analogy is Britain’s historic lease of Hong Kong. And against all odds, he just might make it happen.

Halfway through the 12th century, and a long time before economists began pondering how to turn poor places into rich ones, the Germanic prince Henry the Lion set out to create a merchant’s mecca on the lawless Baltic coast. It was an ambitious project, a bit like trying to build a new Chicago in modern Congo or Iraq. Northern Germany was plagued by what today’s development gurus might delicately call a “bad-governance equilibrium,” its townships frequently sacked by Slavic marauders such as the formidable pirate Niclot the Obotrite. But Henry was not a mouse. He seized control of a fledgling town called Lübeck, had Niclot beheaded on the battlefield, and arranged for Lübeck to become the seat of a diocese. A grand rectangular market was laid out at the center of the town; all that was missing was the merchants.

To attract that missing ingredient to his city, Henry hit on an idea that has enjoyed a sort of comeback lately. He devised a charter for Lübeck, a set of “most honorable civic rights,” calculating that a city with light regulation and fair laws would attract investment easily. The stultifying feudal hierarchy was cast aside; an autonomous council of local burgesses would govern Lübeck. Onerous taxes and trade restrictions were ruled out; merchants who settled in Lübeck would be exempt from duties and customs throughout Henry the Lion’s lands, which stretched south as far as Bavaria.

[pnh102]

Wasn’t this tried in RoboCop?

[Jack Black]

The Germanic Princes always viewed the Blatic Coast as “lawless”: ie: Germans are not in charge and telling Slavs and Balts what to do. I doubt the people of the thriving cities and towns there felt a need for Germanic lawfulness. In fact the invasions of these areas are called “The Nothern Crusades” by historians. Christianity was imposed on the “northern pagans” on the baltic coast. Henry liked crusading: he also participated in the 3rd crusade to recapture the Holy Lands from Saladin.

Colonialism might be a good idea for a bunch of the third world.

[hellbender]

trying to build a new Chicago in modern Congo or Iraq

Now that's a great idea. Send all the Chicago mob--Baraq Hussein Obama, Rahm Emanuel, Billie Ayers, etc.--to the Third World. They hate America and the West anyway; let them "organize" the Congo.

[Ruy Dias de Bivar]

***the best analogy is Britain’s historic lease of Hong Kong. And against all odds, he just might make it happen.***

Might want to look at what happened to Macau and Goa first.

[wastoute]

I found this interesting when I read it the other day. I was fascinated in that the libtards are interested in “ending poverty” in other nations, but not in the U.S.

[ddk632]

I truly enjoyed this article, thanks for posting it.

[Joe 6-pack]

"I am for doing good to the poor, but...I think the best way of doing good to the poor, is not making them easy in poverty, but leading or driving them out of it. I observed...that the more public provisions were made for the poor, the less they provided for themselves, and of course became poorer. And, on the contrary, the less was done for them, the more they did for themselves, and became richer."

~ Ben Franklin

[conservativeharleyguy]

My Politically Incorrect Guide to Ending Poverty

1. Work

2. Save

3. Spend Wisely

[arthurus]

Except that he relies on governments. Our government, in particular could not succeed with such a scheme because we would make such a city a magnet for aspiring welfare people from all over by requiring all sorts of social programs. To be successful it would have to be done with a total ban on all government supplied welfare. Putin could do it. Perhaps the Chinese could do it. George Soros or Bill Gates could do it were they inclined to that sort of thing. America could not.

Henry was essentially a very rich individual in the context of what he did. He had no bureaucracy or entrenched gimme interests to sway him or that had to be included for political survival. Henry does not live in this world any more.

[Mr. Jeeves]

If we can’t make one of these work in California, first, we won’t be able to make it work anywhere else. :)

[BenKenobi]

4. End welfare.

Step back and watch the fireworks.

[Katya]

I disagree...third world countries don’t have the infrastructure in the first place. They are perfect petri dishes, while California is beyond it’s limits in terms of governance. Dismantling the systems some of the states have set in place, will take years. Better to start somewhere they don’t have the means to build as many walls.