Foreign Aid: the Politics of Charity

A lifetime ago, I went on a roadtrip to Canberra with a group of volunteers with a very specific demand: Australia should increase its foreign aid spending.  

We held a brief meeting with a MP from a safe district – his perennial re-election was more or less guaranteed, not matter what he did. Our dialogue lasted 20 minutes, but his response could be summed up in one statement: ‘I hear you, but my party is not in control of the government, so I can do nothing.’ A brief photo-op followed – conducted by the MP with the most enthusiasm he had so far displayed – and then we were out of there.  

Since then, Australian foreign aid as a percentage of Gross National Income has halved, from a brief peak of 0.33% in 2015 to 0.18% in 2020. It currently accounts for 0.74% of the Federal budget – still a significant amount, despite how it may look.  

NGOs – domestic and international – have persistently fought to maintain an equilibrium between compassion and apathy, reflected in the oscillating but overall consistent trend in per-capita donations in the last decade.  

By incessantly telling people that inequalities exist, individuals are forced to become embarrassed about their own inaction. NGOs are at the forefront of a constant tug of war between ‘Papua New Guineans should pull themselves up by their bootstraps’ and ‘I need to help them because NGOs told me how poor they are and I feel bad’. In this way, NGOs keep us accountable to ourselves.  

Photo by Puwadon Sang-ngern on Pexels.com

Over the last decade, this mild, individual-focussed guilt-tripping has slowly been eclipsed by the bigger players in the charity game: corporations and authoritarian governments.  

(this is not counting the odd billionaire who is giving away his wealth as some form of repentance for a lifetime of sexual predation.) 

Charitable donations have always been tied to tax deductions as a proven way to connect selfish motivators to the altruistic – nowadays, it is more or less the only sure way to extract tax money from multinationals doing the Double Irish.  

This is distinct from the monetization of charity, whereby brands push themed products (Pride-themed sneakers, for example) in exchange for donating an appropriate sum to NGOs for every purchase.  

These two methodologies essentially add a ‘middle-man’ to compassion. Picture a fundraiser, where you pay a hundred bucks to enter a potluck to win a house. The house is put up by a real-estate sponsor, of course, in order to market their product, but a proportion of your hundred bucks will still go to charity.  

What if, instead of paying that money for a chance at winning, you are explicitly buying something? Picture a fundraiser, where you buy a 100-dollar limited-edition charity-themed jersey, of which all proceeds will go to that charity. Are these two scenarios different?  

I would argue that it is, in the sense that the priorities are flipped. In the former case, the participant is there with charitable intent as their number 1 priority, the house their number 2 (unless, of course, they can’t do basic statistics, which to be fair is what gambling relies on).    

In the latter, however, I would argue that the participant’s desire for purchasing that limited-time special item exceeds their desire to do good, which ends up more or less an afterthought.  

This is, in my opinion, how corporate charitability differs from individual charitability: not in that companies are motivated by the marketing of their product – because of course they are – but in that it reshapes the intent of the individual when they donate, changing it from a ‘I should do good’ guilt-trip to a ‘I want to buy this’ feel-good.  

One could easily argue that typing charitable acts to feel-good money-spending has no downsides and all the upsides. After all, if the overall amount of money going to NGOs is going up, then what’s the big deal?  

The very successful attempts at tying consumerist incentives to charitability has diminished the fact that the two ideas are separate: one is inherently self-serving, the other altruistic. While no act of charity is selfless, people like to pretend that it is, whereas the concept of ‘pretending to feel good about buying a product’ is somewhat bizarre and requires specific brainwashing, such as the stoking of nationalist fervour.  

In this way, the no-bullshit money-and-material driven dopamine of consumerist incentives are at odds with the social-posturing and moral-status-gaining that comes in tandem with charity.  

By tying these two disparate things together, those living life under a consumerist-charity environment will become blind to charity driven by other motivators.  

Enter authoritarian governments. While they love making money as much as anyone else, it is not their number 1 priority. Their number 1 priority is survival – the sustainment of itself.  

To that end, they are willing to give.  

While Australia’s foreign aid contribution steadily declined, China’s is ramping up at breakneck speed. In the buffer region of South Asia – Indonesia, the Philippines, Papua New Guinea, and numerous Pacific Island Nations – Australia, the once-dominant benefactor of the region, is withdrawing. China is taking over the aid vacuum it is leaving behind, giving out massive loans to small governments so that they may, ostensibly, construct infrastructure projects such as ports and airports.  

The loans are never intended to be recouped. It is a loan in name, but a donation in essence. While the books may be balanced by calling it a loan, China would never seek to reclaim that debt – to reclaim it is to give up their leverage.  

Australian aid was subtler in the sense that, instead of direct financial ties, the beneficiary governments reciprocated in other ways, such as the approval of mines with lax environmental and regulatory oversight. I scratch your back with aid, you scratch mine with approvals for private enterprises – a tale as old as time.  

China, however, wants it done fast, and as always, it is taking shortcuts to get there. It is shoving aid money down the throats of corrupt politicians, in exchange for the most ostentatious KPIs: you let us own a port in your country.  

While, in absolute terms, Australian aid still dwarves that of China’s in the South Asia region, it is also the one regional arena in which China is intent on actually winning. The motive is one steeped in history: in the 14th century, China was the dominant trade entity in the SEA region, sending fleets as far as the horn of Africa. After centuries of watching Western powers operate in what they consider to be their turf, China is intent on taking it back, mostly to reaffirm its own strength to a domestic audience.  

It is expanding in order to survive.  

Photo by Pavel Danilyuk on Pexels.com

Note that there is little financial incentive at play here. No amount of money, short of bankrupting the nation, is too much for its own survival. This is the point that most Western governments, including Australia, fail to understand: you can’t negotiate or haggle a nation’s survival. It is not a matter of reaching a mutual accord in the region’s power balance, because while one side is seated at the table, the other perceives the fact that other parties are seated at the same table as an existential threat.  

In a country where consumerist charitability dominates, there is little understanding of the political and ideological dangers of reducing foreign aid. Australian politicians are still focussed on saving money and balancing the budget, because, to them, foreign aid is near-irrelevant, nothing more than an overseas offshoot of corporate quid-pro-quo. Their priority list is organized around staying in power, and foreign aid ranks very low on that list, especially for MPs in safe seats. 

Perversely, idiots ranting about phantom Chinese threats have led to a recent uptick in aid spending, because of a growing perception in Australian politics that, by being anti-China, one can get more votes. 

Once again, the order of priority is key: politicians prioritizing foreign aid because of their own re-election, is different from prioritizing foreign aid because of a regional and ideological contest with a rival that is, in a comical sense, fighting to re-elect its own country. The difference in scale and drive is monumental.  

It is not too late. Australia has a long and established relationships with NGOs and local governments in South Asia, one that is not easily replaced by blunt disturbances like piles of Chinese money, because, believe it or not, people are not solely motivated by buying and selling, by spending and making money.  

Charity is more than money. To paraphrase Samwise Gamgee, it is the belief that there is good in the world that’s worth fighting for. Don’t let these lofty aspirations stop you from going out and buying that pink ribbon though – if it makes you feel good, then it’s money well spent.  

Employee Beating With Chinese Characteristics.

Your Chinese uni student getting uppity about not getting their 10 dollars for an hour’s work? Fear not! Follow these simple steps to put them back in line!

  1. It is their privilege to work for you.

Everybody knows that non-Chinese stores don’t hire Chinese students unless they are the perfect human specimen. Everybody knows that student visa working rights are iffy, and tourist visa working rights are non-existent.

Therefore, as a proud Chinese entrepreneur, you are indeed generous in granting these vagabonds the privilege of working at your shop for $10/hr. Oppressing your own people, after all, is the foundation of modern Chinese society.

  • You are the victim.

As a business-owner, you run a lot of risks by hiring those with a questionable immigration status. With the ever-rising overheads, you are hard-pushed to make the next payment on your Mercedes E-Class. Maintaining a small business is a complex optimization process, where savings that can be made, must be made, or come tax season you will be paying tax out of your own wallet, which simply cannot be allowed.

How dare this Chinese employee – who is from your own country, by the way – ask you for money, when they know that money is tight! Do they not understand that there are lots of unforeseen costs to running a small business, like bribing food safety inspectors, hiring accountants that fudge your numbers, and, oh yes, having to survive a pandemic!

Every employee is family, and every family member must make sacrifices in these trying times. The fact that they are not OK with not getting paid is not OK!

  • How it works in China is how it works everywhere.

In China, you could beat up ten employees a day without anyone batting an eye.

In China, the employee could call the cops and the cops will do a ‘dispute resolution’ – where they force everyone to shake hands and make up without actually resolving anything – then leave you where you started.

In China, the employee could get a lawyer, and the lawyer will ask for fees that are ten times the monthly wage of the employee just to get the process started. Pro bono? More like, ‘I’m not wasting my time on a guy who makes $200 a month, let me go back to sucking rich people’s dicks.’

In fact, in China, the employee would come back to the shop the next day, with bruises on their face, and thank the boss for letting them keep the job, because everyone knows there are a hundred warm bodies – untrained, inexperienced, ready to work for less – that are waiting for that vacancy.

Since this is how the employer-employee relationship works in China, it is obviously how it works everywhere else too. If everyone is OK with you beating up employees in China, why can’t you do the same in other countries?! It simply does not make sense.

Other countries laws apply to other countries’ people, but you are a proud Chinese entrepreneur; even though you lost your Chinese citizenship when you emigrated, you are still Chinese at heart, you still love the CCP, you still follow the latest Chinese news on WeChat, you still can’t speak English, and you still think the make-believe rules-of-law in China makes it so that laws elsewhere are make-believe too.

  • They deserved the beating.

These students, with their parents so far away, have forgotten their discipline. It is your duty as their employer and supervisor to teach them how to properly behave in a workplace.

You must teach them not to speak up when spoken down to; you must teach them that, no matter where they go in the world, Chinese rules will follow them; you must teach them that, to speak up about not getting paid when they have the privilege of working for you is the height of insolence, and they must be corporally punished, on the spot, in front of the public, because their shame must be publicly displayed.

This is how it works in China, and everyone involved is Chinese, so why shouldn’t you be able to beat an unpaid employee? Why shouldn’t you get away with it? Why is everybody making such a big deal out of this? The overreaction simply boggles the mind.

Made-In-China Diplomacy

The WHO

Two weeks before the city of Wuhan was given a 12-hour notice to shut down, the headline news result in the Chinese search engine Baidu had read: Official Statement From The WHO: No Human-to-Human Transmission.

In those 12 hours, five million people fled from of that city, a sizable number of whom from the railway transit hub that was less than a kilometre away from the wet market at the epicentre of the outbreak.

Tedros Ghebreyesus, head of the WHO, throughout most of January, publicly maintained that there was no transmission risk, despite having received no such confirmation from WHO’s own field team in China.

Now, almost one year later, the WHO is still sending out guidelines on recommended containment strategies, while at the same actively avoiding consulting Taiwan, the place that has objectively done the best at containing the outbreak.

The hard work of thousands of professionals, in the world’s foremost public health organization, was undermined from the very beginning by its leader, who at every turn impeded the effective operation of his own staff.

Normally, we would give a guy like him a break. Once you take a bribe, there is no going back. For a couple million bucks, you run the risk of being blackmailed for the rest of your life, of having your dealings publicly exposed the moment you say something out of line. It’s a tough life. Spare a prayer for the corrupt; they are but indentured servants with eight-digit savings in Deutsche Bank.

At some point, however, they need to be confronted with the impact of their actions. Having them visit one ICU is not enough. Telling them, a million people have died because of their wilful negligence, is not enough. Having tumbled in bureaucratic mud pits for their whole lives, these leaders have skins so thick, almost nothing will impress them.

It will take daily conditioning to make them feel even a shred of guilt.

Take the head of the WHO into every hospital that is packing coronavirus patients into the ICU and running low on PPE. Make him wear one flimsy used mask as he visits twenty hospitals a day, seven days a week, at every epicentre around the world. Make him lay flowers at the graves of every one who has died of the coronavirus. Make him explain to their families, that in January, it was he that told the world that nothing was going on in China, that everything was under control. Every family. Every day. For the rest of his life.

Maybe then, dear Tedros will regret taking Chinese money.

To Make An Example

One might say, wait, that’s too extreme. No one deserves that kind of life-long humiliation for a lack of moral character.

What will be the consequence, then, for killing millions of people around the world?

It’s not a criminal offense. No one’s going to jail over it, except for the doctors and citizen journalists who had tried to investigate what was going on in Wuhan back when it all started.

Some kind of reparation is probably due. Emptying Tedros’s bank account could probably pay for a hundred ICU beds, which is a good start but is not enough. Asking China for reparations is the financially sensible path, but, well, good luck with that, when even getting an apology for a doctored image posted by a low-ranking official is met with derision.

Before reparations can be found, there needs to emerge a winner from this pandemic. If Germany had won in WWI, it would be them asking the world for war reparations, not the other way around. In 2020, the winner of the pandemic will not be the country with the least deaths, but the one to come out of it with the best economy.

China is positioning itself as just that. By every matrix its economy has already recovered.

It doesn’t matter that its GDP figures are bullshit. As long as they are the official figures accepted by the international community, they can act like the winner. The global economy has integrated to such a point, and the stock market has detached from reality to such a degree, that unemployment could hit record highs at the same time as the DOW. Pretending to be rich has become indistinguishable from actual rich. Just ask the Donald.

The only way to break the ego of the pretend-winner is to show them that their success is an illusion.

Realistically, this will never happen. Hundreds of thousands of multinational corporations depend on the maintenance of this illusion of prosperity to uphold their profits. To break it is to shoot themselves in the foot, and lose millions of Chinese customers.

Take iron ore as an example. China doesn’t need any more low-quality steel, but has to keep buying it from Australia to maintain a critical rate of industrial expansion, so that its economy can be propped up by infrastructure spending. Australia, too, will never stop selling it to China. Ever since the GFC, the expansion of the mining sector has been dependent on China buying Australian ore, as most other major markets, like Japan, have been well saturated. To stop selling to China is to forfeit the sector’s only realistic new revenue stream – it’s never going to happen.

Just as Trump will insists into the grave that he has won the 2020 election, so will China insist unto eternity that its economy has never been stronger. Multinational corporations, knowing how much money they can make from that market, will never question this statement.

There is a way out of this loop.

Just as it is morally right to ask Tedros Ghebreyesus to pay for his wilful negligence, but wrong to ask WHO – the organisation – to foot his bill, so it is morally right to target the Chinese Communist Party, the CCP – but not China itself – when it comes to economic action.

It has become difficult to separate China from the CCP. The confusion was intentionally cultivated, so that when the CCP inevitably fails – like the unleashing of this pandemic – they could take China itself as hostage and declare, ‘how dare you blame our hard-working people for this natural disaster?’

In economic terms, this means separating Chinese State-Owned Enterprises, or SOEs, from private Chinese corporations. The former is an extension of the CCP in the free market, the latter, at least in part, plays by market rules.

China has a law that dictates that every foreign company that wishes to operate within its borders must form a subsidiary that is partly owned by an SOE. This law essentially forces multinational corporations into working for the CCP – or be barred from the market.

Except, there is now one exception.

Tesla. Elon Musk.

Their new Chinese giga-factory is 100% owned and operated by Tesla, a foreign company.

The reason being, that Teslas are in such high demand in China, and so technologically superior compared to domestically-produced electric vehicles, that Elon had all the leverage in the world when it came to negotiations with the CCP.

Now, if Elon was a better person, he could have demanded all sorts of labour rights for his Chinese workers, but the whole point of having a factory there was to cut labour costs. One step at a time, folks.

To be fair, not everyone can be as great as Elon, and iron ore is no cutting-edge product – but one exception paves the way for another.  

It will take inordinate effort to turn basic commodities like iron ore or brown coal into indispensable bargaining chips. Perhaps a new, more efficient refinery process could be created based on the specific chemical composition of Australian ore, and propagated to Chinese steel mills. Regardless of how unrealistic such ideas are, they should still be explored – otherwise there will never be a leverage, never a break from this cycle of profit dependence.

Counterespionage

Trump has recently announced that it will no longer be possible for communist party members to obtain long term visas to the US.

While that sounds good on paper, the US does not have access to the party member register, and therefore has no idea who is or isn’t a member. They can’t even reliably distinguish who is a member of the Chinese military. As far as visa frauds go, this is going to be a trivial hurdle to get past.

Here is a better idea.

Remember those 12 Hong Kong activists who were arrested on a speedboat and jailed in China? Sooner or later they will resurface reading letters of confession, pleading guilty to their crimes, and be let back into the real legal system, and receive jail terms from a real judge in Hong Kong.

Taking a letter from that playbook, every Chinese person who wishes to enter the US – or any other applicable location – as a part of their visa application process, should make a video featuring themselves declaring that they are in no way affiliated with the communist party, and post it on social media. The video should be publicly accessible, both from within China and outside it.

If you didn’t have any understanding of a CCP member’s psyche, you’d think that this is entirely pointless, since they can just lie, but in reality, it’s one thing to systematically lie on a template form, and quite another to declare it to the world. Most party members will be physically incapable of vocalizing this declaration in public, even when they know they’re lying. The fear for unspecified reprisals for public repudiations of the party is so huge in their minds, that even a deceptive one will cripple them.

Visa hoops are easy to implement, since most times it’s just a matter of changing some guidelines in the Department of Immigration, rather than laws. Unreasonable visa rules are bread-and-butter for developed nations. If you can separate children from their parents at the border, if you can lock up asylum seekers on an island indefinitely, you can make CCP members shoot a video.