A New Strategy for Global Prosperity: The End of Poverty by Jeffrey Sachs, Review

Celebrating 350 Years in America: Summer 2005

Who is Jeffrey Sachs? He is a Detroiter who became the world’s most famous living economist. He was one of the intellectual stars at Harvard University. He was chosen to be­come the first director of the new prestigious Earth Institute at Columbia University. Kofi Annan, the Secretary-General of the United Nations, appointed him the coordinator of the Millennium Project, an ambitious attempt to rescue our planet from extreme poverty. Time magazine chose to place his latest book, The End of Poverty, on the cover of its journal.

Sachs is the son of one of America’s most respected labor lawyers, the late Ted Sachs. He has been the leading economic adviser to doz­ens of nations. He has transformed the econo­mies of countries as diverse as Bolivia, Poland, Russia, and India. His specialty has been the challenge of taking malfunctioning economies and making them work. Some of his advice and decisions provoked intense controversy.

Sachs now proposes to tackle the most difficult problem of our global economy, the problem of world poverty. One out of every six people on this planet lives in extreme depri­vation. One out of every three people suffers the humiliation of insufficient food, shelter, health care, and education. The dichotomy between the resources of the affluent in the First World and the resources of the poor in the Third World often reaches the ratio of twenty to one. Millions of people in Asia, Africa, and Latin America endure daily suf­fering that we can barely imagine. And their misfortune is aggravated by disease, pollu­tion, and isolation. Although some of their difficulties are the result of bad government, most of their problems cannot be solved by eliminating corruption. Most of these nations are in economic, social, and environmental pits from which they cannot escape through their own efforts alone.

Why should we devote our time, energy, talent, and wealth to a problem that has defied solution until now? Obviously, there are ethical and compassionate reasons. But “spinning your wheels while staying in one place” may salve personal conscience; it does not have much moral value. Without a combination of vision and realism, all noble plans end up mired in fantasy. Jeffrey Sachs claims that he has a real­istic plan. And many expert critics, both liberal and conservative, agree that he has.

Sachs denounces the proposal offered by many economic conservatives (formerly classical liberals) and libertarians to open poor countries to the open competition of the free global market and to the opportunities of foreign markets, foreign investment, and foreign borrowing. This strategy has been recommended by both the International Mon­etary Fund and the World Bank. Taking this advice has yielded disaster. Foreign markets are not readily available for cheap agricultural produce. Foreign investment is scarce because the native infrastructure and judicial systems are inadequate. Foreign borrowing takes place and produces huge debts from which poor nations can never liberate themselves. Mired in loans they cannot repay, they discover that their meager national income is now con­sumed by relentless interest payments. What is a winning strategy for developed nations is a disaster for struggling nations.

Sachs maintains that any successful ac­tion needs the combination of personal deter­mination, state help, and foreign donors. No single factor can rescue poor nations. China and India are perfect examples of the suc­cess that follows this necessary cooperation. There is enough state management to protect a vulnerable economy. And there is enough freedom in the private sector to allow for cre­ativity and to encourage investment. Above all, poor nations need international allies that prevent them from accumulating debts that guarantee failure.

Poor nations that suffer from the mas­sive presence of AIDS and malaria are too depressed and demoralized to sustain any decent level of economic activity. Poor na­tions that are cut off from the global economy because there are no roads, no ports, and no airports cannot join the global world even if they want to. Poor nations that lack any con­sistent system of education for young people are separated from the world of science and technological information, the power base of the modern economy.

“Clinical economics” is the recommended strategy of Jeffrey Sachs. We have to start on the lowest level of economic survival – not cor­rupt governments but poverty-stricken villages. We have to teach the residents how to fertilize their fields, how to provide for sanitary living, how to manage the distribution and sales of their local products. We have to persuade all developed nations to take only 0.7 percent of their gross national product and “invest” it in this noble project. With this minimal and feasible gift, the problem of extreme poverty can be alleviated within twenty years.

Poor nations are a continuous provoca­tion to world stability and world peace. Poor people in poor nations are easily swept away by extremist movements and religious funda­mentalism. Rich nations have a choice. They can cynically hang on to their possessions without sharing and simultaneously endure the misfortunes of hatred and terrorism. Or they can offer consistent and modest help and discover, to their surprise, that they have created wonderful new markets and shrunk violence by providing hope.

The power of Sachs’ message can be ex­perienced only by reading his book, You will be excited by his realism and his optimism.

Capitalism and the Jews

“Capitalism and the Jews”  from The Jewish Humanist March-April 1976

Hester Street. Eighty years ago.

They came by the thousands. The greatest mass migration in the history of the Jewish people.

They came from Minsk and Pinsk. They came from Zhitomir and Berdichev. They came from Lodz and Bialystok.

Most of them were pious and Orthodox, obsessed by the rituals of shtetl life. Many of them were secular and socialist, impatient with poverty and dreamers of the proletarian revolution.

Eastern Europe was the homeland of the Ashkenazic Jew. Eighty percent of world Jewry was squeezed into the ghetto of Western Russia, Galicia, Slovakia and Transylvania.

By 1945 the “homeland” was ten thousand miles away. Emigration and holocaust were the movers. America became the new center of Ashkenazic life. English replaced Yiddish as the major language of Western Jews. Six million Americans represented half of world Jewry.

Collins Avenue. The faded focus of a new migration. An internal migration.

They came from New York and Pittsburgh. They go to Miami and Fort Lauderdale. They come from Detroit and Chicago. They go to Los Angeles and San Diego. Philadelphia, Baltimore and Cleveland are old Jewish words. Houston, Phoenix and Aspen are new Jewish words.

The second migration is different from the first one. The Jews are different. In a short span of eighty years the Western Jew was transformed by the most dramatic revolution in Jewish history. Never before had any Jew been changed so much so quickly.

Secular capitalism did it. It undermined traditional Christianity. It undermined the Jewish life style. It “destroyed” —not by being mean. It subverted—by being so very nice.

All the characteristics of the historic Jew, which feudal society deplored and condemned, applauded and rewarded.

Jews had a head start for survival in a capitalistic society. They had skills that other people lacked.

Capitalism sponsors a mobile society. Rooted peasant people find moving traumatic. Jews are addicted to wandering. Because of antisemitism, they had to defend themselves against a heavy emotional investment in any place (except the fantasy land of Israel). Long before the bourgeoisie made a distinction between ancestral land and real estate, the Jews had experienced the difference. Feudal society condemned them for their rootlessness. The industrial world rewards their mobile skills with wealth.

Capitalism admires verbal abilities. Language is the intellectual vehicle for science and technology. Language is the way you educate workers in schools for new professions and jobs. Language is the tool of salesmanship—the art of convincing consumers to consume. If Jews are anything, they are verbal. They had to be. Deprived of all physical means of self-defense, they had, to train their mouth to do what weapons do for most people. The Jewish mouth became a formidable instrument of war and protection. Hostile, non-verbal peasants find this characteristic frightening and unattractive. The\urban bourgeoisie pay a lot of money to acquire it. Lawyers, writers and academicians become the conspicuous edge of an industrial culture. Jews take to these professions like birds to air.

Capitalism adores aggressiveness. How else can you sell? How else can you promote new ideas and sponsor new products? Peasants and feudal lords hate pushiness. It is so inconsistent with the tranquil and stable life of village and manor. But urban survival demands aggressiveness. The passive waiter is a winner in the eternal scheme of the feudal world. He is a guaranteed loser in the urban scene. Jews are pushy because they were never able to relax. Antisemitism produced a continuous state of alert. Jews were never safe enough to be less than nervous. Now nervous pushiness may not be the most attractive aggressive style. But, in a capitalistic world, it is better than dull passivity.

Capitalism was the first environment to reward the very Jewish characteristics which the feudal antisemite found intolerable.

No Jewish community, in the long history of the Jewish people, has been as wealthy, educated and politically powerful as the American Jewish community.

The radical changes in contemporary Judaism, whether conservative, liberal or humanistic—which make it a distinct religion from traditional Judaism—are the results of a revolutionary adjustment. Secular capitalism has created a new Jewish religion. What is it? What is it becoming?

Judaism in America.

It is unlike any Judaism that ever came before

It is a radical break with the past and with the life style of the Jewish tradition.

It is a product of western capitalism and the urban industrial society which capitalism spawned.

Western capitalism presented the Jew with social realities that violated the essence of Jewish piety.

It sponsored female liberation. An expanding industrial economy provided women with options other than motherhood and wifehood. Female freedom is the consequence of money power and financial alternatives

Western capitalism sponsored secularism. The industrial state was built on the premise that the most readily available power for economic expansion was natural— not supernatural. Divine power was so secondary that it could be relegated to private choice. The state could not be bothered with religious controversy because no essential power was being provided anymore by religious institutions and by clerical professionals.

Western capitalism sponsored the right to happiness. Divine justice had decreed that, given Jewish behavior and Jewish disobedience, suffering and death were deserved. If the Messiah came, it would be an act of divine mercy, a gracious Yom Kippur style act of a sentimental deity. But the capitalist consumer culture cannot be built on the right to suffer.

The growing industrial state needs the citizen conviction that pleasure is appropriate and that happiness is deserved. The early stages of development can use masochistic thrift. But the later stages require massive spending.

Western capitalism sponsored individualism. The traditional family unit makes sense in an agrarian environment where children are free labor and protectors of the aged. In an urban culture the most efficient labor unit is the mobile individual. Individualism is the social product of this economic reality.

Judaism in America cannot survive unless it affirms these four realities of an industrial economy. It does not have the power to repudiate the social reality.

It must reject male chauvinism and affirm female liberation.

It must reject the primary significance of supernatural power and affirm that the essential available energies are secular, human and natural.

It must reject the ethics of sacrifice and suffering and affirm the right of men and women to personal fulfillment now.

It must reject the primacy of the family unit and affirm the significance of individual identity in all relationships—whether marriage or work. The revolutionary consequence is the endorsement of temporary relations as kosher.

The life style of this new Judaism is not a gradual evolution of the old life style. It is a radical and traumatic break with the past.

When the majority of American Jews will be able to accept this reality, official Judaism will stop playing around with the nostalgia and will be able to use its creative energies to celebrate the new life style.