Spontaneous Order, Foreign Aid and K-12

February 28, 2017

(Guest Post by Matthew Ladner)

Annie Lowrey’s NYT magazine article The Future of Not Working is well worth reading. The article describes a Silicon Valley funded experiment with a universal basic income in Africa. Personally I’m skeptical of the notion that human labor is going to become obsolete, and I am even more skeptical of the idea of a universal basic income when we currently stand tens of trillions short on previously made commitments. Nevertheless, this article is well worth reading to the very end, as it contains a powerful insight. With the benefit of modern cell phone banking account technology, this group has been giving aid in the form of small cash payments instead of whatever the aid organizations happen to want to give out. This allows people to work things out for themselves:

The residents of this village had received money in 2013, and it was visibly better off than the basic-income pilot village. Its clearings were filled with mango plantings, its cows sturdy. A small lake on the outskirts had been lined with nets for catching fish. “Could you imagine sitting in an office in London or New York trying to figure out what this village needs?” Bassin said as he admired a well-fed cow tied up by the lakeside. “It would just be impossible.”

Many popular forms of aid have been shown to work abysmally. PlayPumps — merry-go-round-type contraptions that let children pump water from underground wells as they play — did little to improve access to clean water. Buy-a-cow programs have saddled families with animals inappropriate to their environment. Skills training and microfinance, one 2015 World Bank study found, “have shown little impact on poverty or stability, especially relative to program cost.”

All across the villages of western Kenya, it was clear to me just how much aid money was wasted on unnecessary stuff. The villagers had too many jerrycans and water tanks, because a nongovernmental organization kept bringing them. There was a thriving trade in Toms canvas slip-ons: People received them free from NGO workers and then turned around and sold them in the market centers. And none of the aid groups that had visited the villages managed to help the very poorest families.

The article goes on to explain that cash payments have been abjured in aid programs in the past. It would deprive beneficiaries of the “benevolent guidance” of very well-meaning people, and would also require fewer such people. It however seems entirely obvious that the Kenyan villagers in this article know their own needs much better than the distant would-be do-gooder, and that they are far more capable of making good use of resources. All of this very much brings to mind the Douglas Carswell quote (via Matt Ridley):

The elite gets things wrong, says Douglas Carswell in The End of Politics and the Birth of iDemocracy, ‘because they endlessly seek to govern by design in a world that is best organized spontaneously from below.’ Public policy failures stem from planners excessive faith in deliberate design. ‘They constantly underrate the merits of spontaneous, organic arrangement, and fail to recognize that the best plan is often not to have one.’

Education Savings Accounts anyone?


Best Organized Spontaneously from Below

December 15, 2015

(Guest Post by Matthew Ladner)

So half way through reading Matthew Ridley’s new book The Evolution of Everything I come across a perfect distillation of the background meta-narrative of the JPGB in the last paragraph of Chapter 13:

The elite gets things wrong, says Douglas Carswell in The End of Politics and the Birth of iDemocracy, ‘because they endlessly seek to govern by design in a world that is best organized spontaneously from below.’ Public policy failures stem from planners excessive faith in deliberate design. ‘They constantly underrate the merits of spontaneous, organic arrangement, and fail to recognize that the best plan is often not to have one.’

Out here in AZ- a central planner’s K-12 nightmare of Wild West chaos-since the bust of 2007 we’ve had NAEP gains between 2.5 to 7 times greater than the national average. What passes for a consensus on Newtonian mechanics back east will struggle to explain this- something is wrong with the orbit of Mercury! Best perhaps to ignore outcomes entirely- as the New York Times did in an article this summer about AZ K-12:

Arizona in particular has been crippled by several years of targeted cuts at the state level and local voters’ repeated refusals to raise property taxes to offset these shortfalls.

Thank you for your  touching concern NYT, but I’m feeling pretty handi-capable about right now. I know states with budget cuts and dysfunction in central command are not supposed to make nationally enviable academic progress during a very trying period. We alas didn’t get the memo out here in the patch so we went and did it anyway.

Oh and by the way Arizona style austerity of the 2007-2015 variety may make a nasty appearance in a state near you in the near future. Feel free to pop out and take some notes on how to thrive through it- and yes you can bring your golf clubs.

 

 

 

 

 


Rational Optimism on K-12 Reform

August 18, 2011

(Guest Post by Matthew Ladner)

Matt Ridley’s The Rational Optimist powerfully makes the case that market exchange is the driving force of human progress. Starting his argument in the far gone reaches of prehistory, Ridley builds a persuasive case that so long as people are out there developing new products and services, grinding on problems, that the human condition continues to improve. Government can certainly do things to speed things along (by perserving property rights) or slow things down in a variety of idiotic ways, but progress has proven to be robust in liberal market based societies. For instance, despite the collapse of a market bubble, horrible policy decisions by the Federal Reserve, Hoover starting a global trade war, too many policy mistakes by the Roosevelt administration to count and the onset of a World War, the average American was still better off in material terms in 1939 than they had been in 1929.

The reason why was simple- through all of the turmoil, there were still people out to make a buck grinding on problems. Technology continued to evolve and improve despite bipartisan political blunders of truly epic scale. Along the way, Ridley helpfully demolishes the conservative meta-narrative of decline from an imagined lost golden age. We live in an age of wonders compared to that of our ancestors. The problems we face are largely either overblown (global warming) or else getting substantially better at an unprecedented pace (global poverty).

Ridley’s journey through history and prehistory imparts a perspective on our struggles over education reform. Progress occurs in unpredictable ways and at its own pace. The key in the long run is to have a large group of people grinding away on a problem. Along the way, there are innumerable failures and false starts, but as long as people are out there trying to build a better product, sooner or later, they succeed and establish the next baseline for the next innovation.

In a primordial JPGB post in 2008, I wrote:

Our students need a market for K-12 schools. The market mechanism rewards success and either improves or eliminates failure. This has been sorely lacking in the past, and will be increasingly beneficial in the future. The biggest winners will be those suffering most under the status-quo.

New technologies and practices, self-paced instruction and data-based merit pay for instructors, may hold enormous promise. Before the current era of choice based reforms, they didn’t fit the 19th Century/unionized model of schooling, so they weren’t seriously attempted. Bypassing bureaucracy, a new generation has begun to offer their innovative schools directly to parents. Some have already succeeded brilliantly. Some states have been much keener than others to allow this process. Expect the laggards to fall in line eventually. We can hardly continue to cower in fear that someone somewhere might open a bad school when, in reality, we are surrounded by them now.

A market system will embrace and replicate reforms which work, and discard those that fail to produce. A top-down political system has failed to perform this task. Where bureaucrats and politicians have failed miserably, however, a market of parents pursuing the interests of their children will succeed in driving progress.

This process is underway but it is proceeding at a maddeningly gradual pace, from the perspective of an individual lifetime. Some problems take more than a lifetime to solve. Consider the struggle to end slavery and provide equal rights for African Americans. Lyndon Johnson’s signature on the Civil Rights Act came at the cost of hundreds of thousands of lives sacrificed over a period of centuries.

Milton Friedman, the originator of harnessing the power of markets to improve education, lived to see only the faint outline of his vision come into practice. Incremental victories such as lifting charter school caps and creating new voucher and tax credit programs are hard fought and to be celebrated, but in the long run the important thing is that we now have people working on new school models and the delivery mechanisms to allow educators to build them and parents to choose them for their children.

It took the charter school movement 20 years to come up with the idea of hybrid education. It’s no accident that it happened out among the charters. Both districts and pre-existing private schools suffer from far too much “that’s not how we do things around here” inertia. Jay covered this quite well-philanthropists should build new, don’t reform old.Hybrid learning may prove to be the next big thing, or something else might. As long as people are trying to build a better mousetrap and have the means to get it into the market, our future will be brighter than our present.