Sir, - Those criticising my letter of May 3rd either have not read it properly or refuse to be persuaded for ideological, not logical, reasons. The criticisms came in two forms: the "debt is evil" type and the ill-considered polemic.
Ciaran McKenna's letter (May 8th) is an example of the former. Financial institutions, including our pension funds, lent money to Third World countries. The rich elites of those countries squandered that money and did not spend it for the benefit of the ordinary people. To forgive the debt so that the rich elites can borrow more to squander again seems idiotic, as it simply transfers money from the Western financial institutions to the rich elite of the Third World.
A more intelligent solution is needed. One target of the protests, the World Bank, has belatedly realised this problem and increasingly attaches conditions of transparency to its loans. If a civil society is fostered in those countries it will reduce corruption and improve wealth distribution. In addition, the World Bank's micro-credit schemes make small business loans directly to poor people rather than to governments. When properly structured, these schemes significantly increase the wealth of the borrowers by providing them with capital so that they can start a business and become capitalists. Is debt truly evil or are corrupt ruling elites and the lack of a civil society the real problems?
Alan Broderick's letter (May 8th) is an example of the ill-considered polemic. He cites the example of a Filipina working long hours for abysmal wages to make a pair of trainers. The obvious comment is that if more corporations could locate in the Philippines (or wherever) and export freely to the rich countries, the consequent increase in the competition for workers will raise standards and pay. Furthermore, if the Filipina can move to, say, Ireland, she can work to obtain a significantly larger wage. This example is actually an advertisement for free trade and free movement of people!
I did not say that capitalism was the solution to world poverty, but that globalisation, capitalism and the civil society are the best long-term means to eradicate global poverty, improve the environment and protect human rights. Short-term, simplistic "solutions" to complex issues tend only to exacerbate problems. - Yours, etc.,
Fintan Clancy, Robinson Road, Mid Levels, Hong Kong.