Bartlett to the rescue!
To debunk the myth that the United States are "
stingy", Bruce publishes the same piece in both the
National Review Online and
Townhall.com. Holy Batmobile! Townhall
and NRO?!?!! Surely, then, it
must be true!
Sadly, no.
In fact, it is such a giant falsehood that it merits a thorough debunking of its own. Here is the entire piece:
The other day, a United Nations official accused the United States of being “stingy” in terms of aid to tsunami victims in South Asia. After criticism from the State Department, the official clarified his position. Americans are not being stingy in helping tsunami victims, only stingy in terms of overall foreign aid as compared to other countries.
The official is called
Jan Egeland. He wasn’t talking about the US being stingy, he was talking about “rich countries”. And he wasn’t talking about the current disaster relief effort, he was talking about disaster relief and development aid lumped together. He later clarified his position because both the media (especially the Moonie Times) and the State Department (i.e. Colin Powell going on talkshows) were too lazy to read what he had said. His clarification wasn't a euphemism for backing down, but a real one. Some people were too stupid to actually read what he had said and had jumped to all sorts of conclusions. So he clarified things.
This is a familiar attack, which comes up annually when the foreign aid appropriations bill is before Congress. But let’s look at the facts. According to the Organization for Economic Cooperation and Development in Paris, in 2003, the world’s major countries gave $108.5 billion in combined foreign aid. Of this, the U.S. contributed $37.8 billion or 35 percent of the total. The next largest foreign aid contributor was The Netherlands, which gave $12.2 billion, following two years in which it was actually a net recipient of foreign aid.
First off, I am very surprised that the Netherlands were so generous in 2003. According to
this official government site, our government’s goal is to spent about 0.8 percent of GDP on foreign aid. Apparently our government accountants have accidentally misplaced a couple of billion euros. Oh well. Better luck next time.
I am also quite surprised to find that the Netherlands needed foreign aid in 2002 and 2001. Our last natural disaster worthy of the name occurred in 1953. But I sure am grateful to the rest of the world for sending us money. Please send more, our government is squandering our resources on foreign aid.
Oops. Bartlett isn’t talking about foreign aid at all. He is talking about total net money flows. He just
calls it foreign aid. If Nike sets up a sweat shop in Aceh, Indonesia, it would be a good thing for the locals. But would it be aid? According to Bartlett, it is. But if you run with these numbers for the US, wouldn’t it be better to compare them with Japan and the EU instead of just with Holland?
| Amount ($ billions)
| % of GDP
|
USA | 37.9 | 0.34 |
EU | 49.3 | 0.47 |
Japan | 6.3 | 0.14 |
The US still comes up short. (And never mind about Japan.)
The claim of stinginess, however, comes from a different calculation—foreign aid as a share of national income. In 2003, U.S. foreign aid came to just 0.34 percent, well below the world leading Dutch at 2.44 percent. Other big contributors are Ireland (1.83 percent), Norway (1.49 percent), and Switzerland (1.09 percent). The U.S. would have to triple foreign aid just to reach the lowest of these contributors.
He simply isn’t talking about foreign aid. He's talking about money flows.
But let me try. There is government foreign aid, and there is the foreign aid that’s collected from private citizens and corporations that NGOs get to spend. Bartlett will start yammering about private charities further on, so I’ll just give you the numbers for official government foreign aid. This is the number the Dutch government tries to keep at 0.8 percent of GDP (the OECD recommends 0.7 percent. By the way, it’s from the very same OECD Excel-sheet Bartlett used to look up the net cash flows. I wonder why he didn’t simply take these numbers?
| Amount ($ billions)
| % of GDP
|
USA | 16.3
| 0.15 |
EU | 37.1
| 0.35 |
Japan | 8.9 | 0.20 |
Yup. Even worse than the Japanese.
The first thing one notices when looking at the big foreign aid contributors is that they all spend very little on national defense. According to the Stockholm International Peace Research Institute, in 2002, The Netherlands spent just 1.6 percent of its gross domestic product on defense. Norway spent 2.1 percent, Switzerland spent 1.1 percent, and Ireland spent a piddling 0.7 percent. By contrast, the U.S. spent 3.4 percent—and this was before the Iraq war. It’s easy to be generous with foreign aid when another country is essentially providing your defense for free.
I don’t want to come over as a thankless piece of shit, but now that the Cold War is over, hasn’t the situation, you know, changed?
I live in Amsterdam. Back in the olden days (1989) the nearest non-allied, non-neutral country was East-Germany, about 250 miles away from Amsterdam, where the Warschau-pact had stationed several armies ready to march through the Fulda Gap to, well, Amsterdam. The Soviet Union had 287 million inhabitants and plenty of allies.
Nowadays, the nearest non-allied, non-neutral country of any importance is Russia. Unless they station all their armies in Kaliningrad, they will have to march something like 1250 miles to get to Amsterdam, and even from Kaliningrad it’s a long way. Russia only has 144 million inhabitants and a lot of them are alcoholics. If they haven’t got AIDS or tuberculosis as well. It's only ally is Belarus.
There is no need for large armies in Europe, and no need for lots of defense spending.
There is, however, a large need for troops that can be deployed outside Europe, such as in Africa or the Middle East. I would call that offense instead of defense, but never mind. The trouble is, to get your troops from Europe to somewhere else in a hurry, you need a lot of very, very expensive stuff, such as a navy with aircraft carriers, army bases on foreign soil, large numbers of transport airplanes etcetera etcetera. The small European countries simply cannot afford all this, so stop whining about it.
But I agree that the US military keeps shipping lanes safe and keeps bad guys from getting worse. That's worth something. But how much? Bartlett sort of implies that it's worth the difference between Europe's and America's defense spending. Yeah... right.
Another thing one notices is that the foreign aid data are only for “official” (i.e., government) aid. The data are sketchy, but by all accounts Americans are far more generous in terms of charitable contributions than the citizens of any other country. A 1991 study found the United Kingdom to have the second largest percentage of private charitable giving. But in 2003, charitable giving amounted to 8.6 billion pounds or 0.8 percent of GDP in the U.K., according to the Charities Aid Foundation, compared to $241 billion or 2.2 percent of GDP in the U.S., according to the American Association of Fundraising Counsel.
True. A couple of caveats, though:
First, when you look at net money flows, as Bartlett just did, all the private foreign aid is already in there. Bartlett is trying to count the private money twice.
Second, Americans spend a lot of charity money on other Americans, because poverty is more extreme in the USA than in Europe. Conversely, Europeans, with their socialist health care and eurosclerotic unemployment benefits, don’t need to be so charitable towards their own.
When –talking about the US now- you try to look at sketchy data that have to do with foreign aid, the 241 billion is rather misleading. In 2002 USAid published a 169 page report called
Foreign Aid in the National Interest. In it, they estimate the total private assistance in the year 2000 at somewhere between 33.6 and 43.7 billion dollars. Bartlett overestimates by a factor of six.
Oops. The 43.7 billion also includes 18-20 billion in remittances. That’s foreigners living in the US, sending money to their foreign relatives. Does that really count as foreign aid? It is not targeted at either development or disaster relief. It’s not even paid for by Americans. (Just remember that whatever you think is proper, including the money as "aid" or not, the money was already counted by Bartlett with his net money flows).
But even this estimate of charitable giving by Americans is low because it counts only cash contributions and omits volunteer work. According to Independent Sector, in 2003, they contributed an additional $266 billion worth of their time to charitable enterprises. This is based on a value of $17.12 per hour of time. But even if one assigns a value equal to the minimum wage, this noncash contribution still comes to about $100 billion.
I’m sure that Bartlett is well aware of his generosity towards the Third World when he is coaching his daughter’s soccer team. Even if he could compare this number to a European counterpart, it would still be ridiculous.
In the area of international aid, the official data also exclude private transfers such as remittances by foreign workers in the U.S. According to the Inter-American Development Bank, remittances to Latin America alone amounted to $38 billion in 2003—more than all official assistance combined. And $31 billion of that came from the U.S. In some countries, foreign remittances came to more than 10 percent of GDP, thus having a significant impact on economic growth and poverty alleviation.
This Enron-accountant doesn’t know when to quit, does he? Again, once you take net money flows you can no longer add remittances to the number because the remittances are already in there.
But still, a comparison between Europe and the US might be useful. How much do the Turks and Moroccans of Europe send their families each year? How much do Brasilians living in Portugal send home? How about Phillipinos or Argentineans living in Spain? Indians in the UK? Algerians in France? Surinamese in Holland?
Counting remittances as "foreign aid" is dubious enough. But Bartlett compares America with remittances to Europe without them.
Former U.S. Agency for International Development official Carol Adelman attempted to calculate a total of all private foreign aid in 2000 in a 2003 Foreign Affairs magazine article. She found that private foreign aid greatly exceeded that provided by the U.S. government. Official aid came to $22.6 billion that year, but private aid came to $35.1 billion, including $18 billion in remittances, $6.6 billion from private voluntary organizations, $3.4 billion in aid from churches, $3 billion from foundations, $2.8 billion from corporations, and $1.3 billion from universities.
Oooohhh, so
after mentioning 241 billion in charity money, another 266 billion in volunteer work, and 38 billion in remittances, Bartlett now quotes someone who puts the
total of non-government aid at 35.1 billion. This kind of begs the question:
WHY THE FUCK DID BARTLETT FUCK AROUND WITH ALL THESE OTHER NUMBERS??
Might it be to leave the impression that Americans are more generous than they really are? Might it be to hide the simple truth (the results of Adelman’s study) behind obscure nonsense? Speaking of nonsense, there’s more:
But even this understates the extent to which Americans help developing countries, because it excludes private investment and trade. According to the Institute of International Finance, in 2003, Americans invested $124 billion in emerging market economies, three-fourths in direct investment such as plant and equipment and the rest in stocks and bonds.
Americans also buy a considerable amount of goods from developing countries. This year, about a third of all our imports will come from developing countries, providing jobs and incomes for millions of poor people. This is probably less than most protectionists think. The bulk of our imports still come from industrialized countries such as Canada, Japan and Germany.
In short, the charge of stinginess is unfounded. The U.S. carries much of the world on its back, providing other nations with security, aid and much of their investment and income. It also pays for a fourth of all the salaries of U.N. bureaucrats.
Wow! When you fill up your car with oil from Nigeria, it’s aid! I’ve never felt so good about myself.
Note that once again, Bartlett finds a portion of the net money flow that he can count twice because it’s American.
If you cut the bullshit, and define foreign aid as “stuff that rich people give to poor people living abroad to placate their rich consciences” then you find that, according to USAid
and Carol Adelman, in the year 2000 the total of US government aid (22.6 billion including lots of military stuff for Israel and Egypt but never mind that) and US private aid (15.6 billion not including remittances) was about 38.2 billion dollar, or about 0.4 percent of GDP.
That’s half what the Dutch government was spending, less than half compared with the Norwegians. Never mind whatever money the Dutch or Norwegian people were giving to the Red Cross or Medicin sans Frontiers.
Once again, in an international sympathy penis comparison, the US has a slightly smaller one than average.
UPDATE:
Kristof over at the
NY Times quotes different (probably more recent) OECD numbers. He finds that US government aid amounts to 0.15 percent, whilst US private aid amounts to an extra 0.06 percent.
FURTHER UPDATE:
Mr. Bartlett, please go fuck yourself.
More...