The Poverty of Nations: A Sustainable Solution

Poverty of the Nations takes up the incredibly valuable task of looking at how we can effectively help fight global poverty. Few endeavors are as centrally aligned with the manifested efforts of the Kingdom as this, and pursuing it wisely and effectively is of the utmost concern. The authors examine a wide range of factors that contribute to the economic success and failure of nations, providing some great insights, with Bible verses and economic principles to support their claims.Unfortunately, this book often seems to be shaped more by American neoliberalism ideology, than thorough Biblical theology. This book works hard to find verses that can interpreted (or misinterpreted) to support this ideology, ignoring or dismissing significant passages and themes on equality, sharing, social justice (not just punitive), and grace that would reshape economic vision. Favoring an ideological focus on economic growth bottom-line, instead of a more nuanced theological grounding on the whole of scriptural council on economics, predictably leads to typical libertarian suggestions.There are some great points made by the authors, they provide an excellent defense (both scripturally and economically) of enforcing protection of private property ownership and economic freedom. They provide numerous suggestions for just and fair government structures that will give citizens maximum opportunity to freely pursue economic opportunities.However, when it comes to issues including taxation, welfare, aid, and debt forgiveness, a distorted theological foundation and sloppy economic analysis lead to poorly supported claims.Finally, I was somewhat confused by the focus in relation to the anticipated audience. It would seem likely that most of the readers would be from developed countries. In finding ways to help and serve, it's always easy to excuse oneself by finding faults in the other, and this books has far more focus on failures in developing countries, with little on how we can provide meaningful assistance (although the suggestions on eliminating agricultural subsidies and other protectionists practices are indeed valuable).The following is my rough chapter-by-chapter notes/response/review:The Goal (chapter 1)The authors wisely asserts that "Per capita income does not tell us everything we need to know about the nation", but almost immediately forgets this, forging ahead with economic analysis that seems to be based purely on GPD, rather than a Biblical goal of helping the poor, evaluating policies like foreign aid, debt forgiveness, trade policies, and taxation/welfare purely explicitly (p48-49)in terms of a GDP basis only, instead of a more Biblical evaluation.In section "Transfer of goods", the authors seem to surprisingly actually suggest GDP is more important than the value of Jesus command to share in Luke 3:11 (is he really condemning Biblical teaching?). Within an economy, there are combination of generated resources and constrained resources. The authors seems intent on focusing on the former, and ignoring the latter.Foundationally, this focus on GDP, over and against a Biblical priorities in economics is disturbing because so many economic decisions and priorities are based on this fundamental distinction. Of course policies that can raise GDP and help the poor are naturally widely commended by virtually every economist, it is the more nuanced, and complex policy decisions where the priorities of overall GDP vs the welfare of the poor are carefully weighed, where economist often disagree, and where theology must guide underlying values. Unfortunately this is precisely the point where the authors seem to fail to look for Biblical guidance, instead relying on American ideology.Some great points:* Fair trade programs generally lacks the ability to generate significant income.* Poor countries can not simply continue to try to produce traditional products, they must seek to evolve.Wrong goals (chapter 2)This section has a number of non-sequiter arguments. By finding examples of where aid has been used ineffectively, does that mean it is impossible to use foreign aid effectively? No. Because foreign aid only saves a few million lives, and will never completely solve the massive scale of global poverty, it should not be undertaken? Not only non-sequitor, but it is horrendously immoral to forsake efforts to save these millions of lives. The authors then go on to make distorted citations on studies of aid waste, although with so many different types of spending that are colloquially labeled foreign aid, it is difficult to know precisely what the author's are really even criticizing (they tend to lump it all together).The authors wisest critique of aid: it needs to be driven by evidence rather than emotion. This is rather ironic since certainly the most significant theme in development economics over the last few years is a movement towards more evidence-based aid (through random control trials), with many of the leaders of this movement, like Esther Duflo, having significant influence. Criticizing yesterday's aid to disprove today's aid methods are ineffective is like claiming that antibiotics don't work because we used to use leaches to treat diseases.When entering into the theological realm, the authors again appear to be more focused on finding faults than helping despite faults.In attacking the role of government's role in redistribution, the authors cite Romans 13:4, indicating the government's role in punishing wrong doers. But they seem to ignore the next three verses (they later cite them, but with little influence on their views), which explicitly condone the government's role in taxation, an intrinsically redistributive action (taxes, by definition, is taking money from one's hands and giving to another).The authors make the frequent mistake of treating the creation of wealth and the distribution of wealth as mutually exclusive. There is no logical reason to assume these are mutually exclusive, and none of the verses cited (nor any other passage in the Bible) suggest anything to this effect.The Bible does not explicit layout any specific taxation policy, but does repeatedly commend us to defend the cause of the poor, and does quite explicitly condemn inequality without recourse (Ezek 16:49). Policies must be judged by this scriptural vision, not some imagined exclusions or ideologies, and even a cursory look at countries that have most successfully eradicated poverty (Scandinavian countries typically top such assessments, and Norway is cited as example of wise use of resources on the next page), correlate with government's that employed taxation and welfare towards this goal. A Biblically faithful and economically prudent reader, must take into account both the evidence and Biblical vision.In trying to establish that natural resources lead to lack of productivity, they summarize from the mixed examples that "Resource wealth, therefore, can help an economy, but it is dangerous". If a distinct correlation can't be established, how much less causation. However, this is good advice: "No nation should focus its hope of overcoming poverty on depleting natural resources".Corporate influence: This authors rightly debunk the myth that corporations are to blame for plundering developing countries (at least overall, one can certainly find isolated examples).Colonialism: This is great survey of the positive and negative impacts of colonialism. The authors do a great job explaining how colonialism is not generally to blame for poverty in developing countries. However, as they diverge into the British export of government policies in economics, they fail to distinguish between inclusive and extractive government interventions, while citing Guacamole and Robinson, missing the very distinction that these authors were making in their work, and instead trying to twist these notions into a socialist/capitalist dimension.On (page 90), the authors quote Romans 13:7-8 to argue against third world debt forgiveness. This verse is certainly a reasonable condemnation for those that accrued this debt, but it is nonsensical to apply to the unrelated heirs of this debt, who did not accumulate the debt, and are left to service the debt. The authors seem to be willing to grant an exception when debt was accrued by others, but strangely with the condition that it will never happen again, an unreasonable expectation if you are aware of the doctrine of the depravity of men.p92-93: This is an excellent synopsis of the factors in supply and demand, and how fair-trade products can have negative externalities.p94-95: Continued excellent analysis of international trade and the negative impact of tariffs and subsidies.This section, while providing some solid economic advice, seems to offer some rather odd suggestions in terms of responsibility. Surely, a large segment of the readers of this book are from developed countries, who, as constituents, are likely to have more influence on their policies, than on the developing countries, yet the authors often seem to want to shift the focus on the need for policy change to the developing countries.pg 97-100, This is an solid rebuke of the idea that develop countries are proactively the cause of poor nations poverty. An excellent quote was: "The nations that are rich today became so by producing their own goods and services. In general, they did not get rich by making poor nations poor."This last section featured some excellent economic analysis. However, the theology seemed to grow weak. In particular, a key ethic taught by Jesus was that by His definition of justice, that establishing innocence of causation of another's misery is not sufficient to establish a lack of moral obligation. In the story of the good Samaritan, clearly none of the travelers were directly guilty of inflicting the victim with injuries, but everyone who encountered him was obligated to help, those who did nothing were unequivocally guilty, unjust, by Jesus standards. Likewise, developed countries can definitely be vindicating of any direct cause of poverty in developing countries (in general, there are a few exceptions), but this does not acquit us, by God's standard of justice, who clearly indicates our obligation to help. Again, this is not just an optional encouragement, the unjust violation of this obligation, is worthy of judgment.p106 - The authors are very wise to emphasis complexity of factors involved in economic prosperity.Wrong Systems - The authors do an excellent job showing how limited traditional lifestyles were. Often times these systems are idealized for their traditional, natural ways, but this is classic example of appeal to nature fallacy. The authors rightly show their deficiencies. We do no favors to those in traditional tribal communities by leaving them alone and isolated, spiritually or economically.p115 "the Bible itself regularly assumes and reinforces a system in which property belongs to an individual, not to [society]". The authors, seemingly unable to find any passage that actually supports this claim, opt instead to quote Aristotle, who describes the ethics of property ownership in almost precisely the opposite way as Luke does in Acts 2:44-45. The authors build on this contra-biblical notion of separating the individual from the community, creating a very poor foundation for continuing discussions.p120, On socialism/communism, the authors do a good job of demonstrating the importance of incentives and distributive planning, but fail to distinguish these and the numerous catastrophic extractive actions of past communist leaders that led to their downfall from the inclusive egalitarian ideas and policies that exist. Unfortunately they instead opt to portray a naively binary and single dimensional perspective. Again, scriptural support is lacking here, and the single biblical reference is illogical in application (how does the criminalization of theft support capitalism if it is equally illegal in more socialist systems?)p126, on Welfare states: this section manages to be both theologically and economically vacuous. This is completely lacking in any Biblical support, ignoring numerous scriptures that speak to the injustice of inequality. And here the economic logic completely falls apart as well. Many European countries that the authors generally would be classified as welfare states have surpassed the US in poverty reductions and in numerous other redemptive dimensions. The authors ignore the solid overall evidence and reality of present day Europe, and instead base their critique on isolated metrics and imagined future catastrophes. This is particularly unfortunate in what should be theologically-driven economic analysis, considering that Europe's cultural and economic systems have been shaped centuries of rich Christian heritage and influence.Economic System: The Free Market: Here we have a good explanation of free market principles and the critical benefits that it provides. In particular, this section provides an excellent defense of the need to protect private property. The logic and arguments for a solid consistent rule of law are great. However, the logic fails when it implies government's non-intervention.Biblical support for human freedom in economic systems: Again the look at various passages is helpful in establishing the value of the rule of law, but the exegesis falls far short of differentiating between the spectrum of different economic systems that do protect private property (and government's that institute more active economic policies). Here are some of the main verses that are cited:Ex 20:15 - Again, criminalizing theft may recognize the existence of private property and certainly does teach the importance of enforcing the rule of law in regards to private property, but can't logically be used to support a lack of government intervention in regards to the distribution of property and resources.Lev 25:10 - This verse continues to provide evidence of the assumption of private property in Jewish theocracy. But Jubilee is also an unmistakable and explicit systematic redistribution of previously transferred private property.Deut 19:14 - Another good defense of the rule of law.1 Sam 8:10-18, 1 King 21 - This is clear and pointed rebuke of a military state (of which we should definitely take heed!), not an economic system.Psalms 24:1 - I wonder if this is a typo, as it seems so unrelated to the discussion.Romans 13:1-6 - These verses do set a limit on governments (these verses do not grant states authority to take up military force, for example), but limiting economic responsibility is the opposite of what these verses teach, as they clearly teach that we need to submit the government's role in taxation (an economic force). These verses are even more clear in the context of Matt 25:15-22, where Jesus indicates that the state does indeed retain the ownership and authority for currency, and therefore the economy that it serves (it should indeed largely delegate this to citizens, but responsibility originates from the government).Acts 2:44 - The authors rightly indicate that these verses can not be used to support communist state, but the principle of coordination can't be ignored here, and there is no reason to believe that this principle only applies at small group (church or corporation) levels, and not among the larger community of a country. It is also very unlikely that this example of coordination involved unanimous voluntary support (as the author seems to think), there were almost certainly some church members that were less than excited about the communal-sharing endeavor (anyone with any experience in churches knows that virtually no decision has full agreement from everyone).p140: This is an excellent portrayal of the complexity and interconnected nature of an economy, and the importance of distributive planning. This is a great rebuke of the idea that we can be autonomous individual economic forces, disconnected from others.p142: This section rehashes earlier verses that have already been cited. However, here the authors seem to more carefully interpret these verses to apply specifically to protecting private property.The book provides some great details on the importance of legal, documented titles to property. The lack of property documentation is indeed a huge problem in developing countries. There is also a solid connection made between the property ownership and the ability to attain capital-producing loans. The main points made on the importance of a consistent solid enforcement and protection of private property ownership are clear and persuasive.Section on why the government must maintain relatively low tax rates:Some valid economic principles, like Laffer curve are shared, but in dealing with the specifics of tax levels and causation, the authors fall for common statistical and economic fallacies, trying to make very poorly substantiated claims of causation based on a few cherry-picked isolated examples in the American economics without any real evaluation of the multi-variate factors, much less showing that any correlation that does exists, validates causation. A sample size of one is statistically silly. Even a cursory global look at other country's taxation rates shows clearly that the most developed countries in the world have higher tax rates than the poorest, least developed countries. Their evaluation also continues to narrowly focus on GDP, ignoring the fact that countries that have had the most success along other (more Biblical) dimensions of economic success, have much higher tax rates than they would suggest.The best summary of their concrete position on taxation was (p160): "Most economists argue that the tax rate should be closer to 15 percent to 20 percent". I was curious to see what survey they cited to support this claim. The footnote says:"We recognize that not all economists agree with this recommendation, but we maintain that it is important". It ends up this claim has no reference, the footnote is actually an admission that it just their unsubstantiated opinion. At least I appreciate that the authors are honest in recognizing the lack of any substance to their arguments.The Mechanics of the System:Here the authors show how the creative initiative of the labor force is a beautiful reflection of God, indeed we bring glory to our maker, through the diverse and innovative initiatives of the market. However, like any human system, we must look at both the redemptive and fallen aspects, only looking at one side creates a distorted perspective, and ignoring how the depravity of men influences free market is equally important, so we can anticipate and address the impact of the sin and greed.The author's do a great job explaining how prices coordinate market activity efficiently. However, efficiency and morality are not the same, and by placing faith in the market and it's price-driven signals, instead of constantly reassessing the market based on Kingdom ethics, we will fail to note and stand against injustices within the market. This is particularly important in recognizing the "invisible hand"'s inability to deal with externalities, and address inequality. Policies that assume humans are rational actors also fail to deal with human's shortcomings evident in psychological biases such as procrastination and present-future bias, which also lead to non-optimal allocation of resources in free markets.The author's rightly point to Christianity's remarkable cultural influence in constructing fair and just economic systems, albeit the authors seem limited by a hint of American exceptionalism and pride (and false connection between free markets and God), again ignoring the rich Christian heritage of Europe, and it's centuries of influence leading to economic practices that on many dimensions distinctly reflect the righteousness and justice of God. In short, the manifold wisdom of God and its influence through Christianity on economics is much broader than just the American perspective that is portrayed here.This book illustrates the need for "creative destruction". While many well-meaning people have opposed the tumultuous impact of business growth and development, this section provides a good explanation of how such "destruction" (at least in terms of economic upheaval) is necessary for economic progress.The chapter ends with a summary of the key goals that should be pursued for a productive free market. Almost all of these are great suggestions (with the exception of the untenable taxation argument). Finally, the author suggests that we try to push developing countries towards more free markets. This is admirable, although it seems strikingly similar to the structural adjustments that were imposed by the IMF and World Bank in the 50's, often with dreadful results, where we paternalistically attempted to force certain free market elements on other countries, without giving them the freedom to utilize tools like industrial policy to gain an economic advantage. This is ironic suggestion, since earlier in the book, paternalism is condemned.The Moral Advantages of the System:Several verses are quoted to defend the moral superiority of preserving freedom (Gen 2:17, Deut 30:19, Josh 24:15, Rev 22:17, Ex 20:2). However, these verses are indicating the moral responsibility we have before God because of our freedom. Freedom, as a desirable state, doesn't really need biblical support, clearly everyone likes freedom, and this common appreciation serves as a foundation for the common understanding that Israel's oppression was a curse. We desire for freedom for others, because we love them, and we know they want freedom. The author's rightly condemn egregious state restrictions on our choice of jobs, location, and what products we purchase.However, the Bible also makes it clear that personal freedom is secondary to loving others (Gal 5:13), and consequently pursuing the common good. This is a crucial prioritization, as so often we are faced with a dilemma between the common good and individual liberty. Unfortunately the author's seem to prioritize the American idolization of liberty and individualism over the priorities that the Bible has indicated, and the community-oriented vision presented throughout scripture.The author's point to a study on economic freedom from corruption, in which Denmark finishes first. However, Denmark is the epitome of the type of country which was earlier criticized for being a welfare state.Promoting earned success is defined as a reason for free markets. Indeed, this is a strong reason for freedom of choice in job selection, the state should not be assigning jobs. However, it is also an argument against the idea that large mostly-untaxed financial rewards are a necessary incentive for productive citizens. The author's wisely point to the importance earned success, which points towards an economy driven more by a person's pursuit of using their God-given talent, rather than work being constrained and just driven by financial calculus.Promoting personal charity is offered as another reason for capitalism. At this point, the authors have spent so much time knocking down socialist straw-men, that it is unclear where they really stand in relation to the spectrum of economic systems across the world (Denmark was implicitly condemned for being a welfare-state, later praised for its economic freedom), but again Scandinavian countries have some of the lowest levels of domestic poverty (the goal of most charitable work), as well being the most generous in terms of international aid per capita. The author's suggest that more individual voluntary giving is more "fun". Indeed it may, but that misses the point. Love is based on seeking the welfare of others. The poor don't exist for the amusement (or "fun") of the wealthy.ObjectionsFree markets result in inequality: The authors rightfully point out that some level of inequality is reasonable and to be expected. But to believe that the high levels of inequality that have arisen in the most unconstrained economies is an optimal or even acceptable based on the Bible's clear condemnation of high levels of inequality is quite different. Just because some levels of inequality are acceptable does not equate to dismissing scriptural mandates to fight against high levels of inequality, nor has free markets alone demonstrated that they can successfully overcome these inequalities on their own. Trickle-down economics has become a joke of economics, not a successful policy. Our hope lies in committed believers that would fight for God's vision, not the invisible hand.The Government of the SystemThis section has a great list of solid suggestions for a fair and just government system. I would note that the author's infatuation with America seems to prevent than from garnishing wisdom from the advantage's of other government structures (like the advantage that parliamentary government enjoys in avoiding the gridlock that has plagued the American government).The government's role in protection against foreign invasion is defended with a vaguely connected series of verses, relying on some shifty logical jumps from theocracy to modern government. Still, I would agree that government may employ military force for good (Augustine's just war theory is the best defense of this), but the Bible speaks far more clearly and bluntly about tempering and limiting the temptation to amass military might (see 1 Sam 8:10-18 again) than it does to encourage it. The author's do wisely note that terrible destructive force of war, in degrading a nation's ability to develop.Still this chapter has many great points, there is a relatively clear vision for a productive, fair, healthy government structure outlined here.Freedoms of the SystemThis section provides excellent suggestions for improving people's freedom to participate in an inclusive economy. I still have some critiques. Why restrict the freedom to travel, transport, and most importantly relocate, to within a nation? Many development economists point to international labor mobility as being one of the most valuable policies in facilitating development (which we can influence in developed countries). The freedom to relocate, without constraint of border, whether they be city, state, or national, is a hallmark of global economic freedom, and arbitrarily setting a constraint at the national level is anathema to the one of the most valuable tenets of free markets.The author's rightly condemn developed country's tariffs as a loss of freedom for other countries. However, the author's also seem to want to restrict developing countries' freedom to use protectionist tariffs to develop industries. Trade agreements that create these restrictions are limiting the freedom of these countries to more quickly develop comparative advantages.In regards to energy use, the author's seem to ignore the externalities of energy consumption, and its impact on future generations. It is not remotely close to a faithful adherence to the cultivation mandate of Gen 1:28 for a generation to selfishly consume natural resources, leaving an ecologically deficient world for the next generation. A proper perspective on Gen 1:28 has to turn the focus beyond just immediate economic consumption, to cultivating an planet that will bless our descendants.The authors makes a good connection between Jesus' open, public communication, and the principle of the freedom of communication.The authors ask "What is the result of believing the lie that economic inequality is more important than economic growth?" Yikes, what is result of saying that it is a lie to believe that a clear biblical principle is more important than a goal that is never directly asserted (but constructed from other goals) in the bible? This is a very disturbing claim, from a scriptural perspective.The Culture of the SystemThis chapter is primarily focused on responding to Daron Acemoglu and James Robinson's excellent book, Why Nations Fail (which looks at the patterns of inclusive and extractive systems through history, and unlike this book, does not simply equate these to ideological biases). Why Nations Fail makes the claim that culture does not have a significant impact on whether nations fail or develop (in fact that Why Nations Fail does little to identify an originating factor, instead just showing cycles). This chapter makes an excellent response to this claim, showing numerous redemptive traits in cultures that can positively lead towards development.There are great suggestions in this chapter for cultural changes that need to be applied to succeed economically. There are a few, however, that fall short:"The society believes that the earth's resources will never be exhausted". It is not clear to what extent they are claiming the resources are not constrained, which is the important economic consideration, but ignoring the fact that certain natural resources are constrained would be absurd. To deny this fact it is to deny our finite nature as humans, as well as the basic foundations of constrained supply and demand in economics. There may be natural resources that we can keep extracting, but that doesn't mean they are unconstrained (i.e. you can always squeeze more juice out of a lemon, but it doesn't have infinite juice, and it is not efficient to rely on a continuous supply from it). And the temporal constraints, of both natural and manufactured goods, are real and important. The idea that no resource has any finite limit has no Biblical support, and the verses that are cited aren't even remotely applicable to this bizarre notion.

While teaching Ethics in the 1970s I often used, as a supplementary text, Ron Sider’s Rich Christians in a Hungry World. Written by a Mennonite theologian committed to alleviating hunger and poverty around the world, it challenged readers to thoughtfully address pressing world problems by citing biblical texts and explaining economic structures—generally informed, I now realize, by Marxist critiques (the rich exploit the poor) and Keynesian (deficit spending) prescriptions. Back then I thought Sider surely knew more than I and properly assessed the issues he addressed. Two decades later, however, Sider announced that though his biblical perspectives were defensible his economic positions had been skewed by his misunderstanding of free market economics. Unfortunately, in accord with Sider too many theologians and preachers make economic pronouncements quite untethered to economic wisdom. Thus it’s good to consider a book I wish I’d had in the ‘70s written by a fine theologian (Wayne Gruden, PhD, University of Cambridge, now teaching at Phoenix Seminary) and a skilled economist (Barry Asmos, PhD, now serving as a senior economist at the National Center for Policy Analysis) titled The Poverty of Nations: A Sustainable Solution (Wheaton: Crossway Books, c. 2013). Blending their expertise, they seek “to provide a sustainable solution to poverty in the poor nations of the world, a solution based on both economic history and the teachings of the Bible” (p. 25). They provide a richly-documented and amply-illustrated treatise, engaging and understandable for anyone concerned with rightly alleviating poverty in our world. In an endorsement that sums up the book’s message, Brian Westbury, former Chief Economist for the Joint Economic Committee of the U.S. Congress, says: “I became an economist because I fell in love with the idea that a nation’s choices could determine whether citizens faced wealth or poverty. Thirty years of research has led me to believe that wealth comers from a choice to support freedom and limited government. I became a Christian because I fell in love with Jesus Christ. The Bible says we were created in God’s image and that while we should love our neighbor, we are also meant to be creators ourselves. I never thought these were mutually exclusive beliefs. In fact, I believe biblical truth and free markets go hand in hand. I have searched far and wide for a book that melds these two worldviews. Asmos and Grudem have done it! A top-flight economist and a renowned theologian have put together a bullet-proof antidote to poverty. It’s a tour de force. The church and the state will find in this book a recipe for true, loving, and lasting justice.” High praise indeed! Asmos and Gruden first focus on the right “goal” to pursue: increasing a nation’s GDP, which means producing valuable goods and services. Though popular programs for redistributing existing goods—through taxation or apparently benevolent “aid” programs, or “debt-relief” subsidies for poor countries, or “fair trade” crusades allegedly helping poor coffee farmers, or printing more money—may momentarily appear to reduce poverty, ultimately such endeavors do little to improve economic conditions. Nor is depending on donations God’s ideal for human flourishing. “God’s purpose from the beginning has been for human beings to work and create their own goods and services, not simply to receive donations” (p. 72). Certainly there is an important place for charitable assistance and governmental “safety nets,” but real economic development requires wealth-creation through the creativity of a people adding to their own community’s goods and services. In short: “Producing more goods and services does not happen by depending on donations from other countries; by redistributing wealth from the rich to the poor; by depleting natural resources; or by blaming factors and entities outside the nation, whether colonialism, banks that have lent money, the world economic system, rich nations, or large corporations.” Only one objective should prevail, the “primary economic goal” of “continually producing more goods and services, and thus increasing its GDP” (p. 106). To justify their case, Asmos and Gruden carefully analyze and reject eight historical “economic systems that did not lead to prosperity”—hunting and gathering; subsistence farming; slavery; tribal ownership; feudalism; mercantilism; socialism and communism; the welfare state and its illusory equality. Though certain advantages may be associated with each of these systems, they were all basically stagnant and generally enriched only a small percentage of the population. Surveying the past, it seems clear that only the “free market” system facilitates wide-spread economic prosperity. Rightly defined: “A free-market system is one in which economic production and consumption are determined by the free choices of individuals rather than by governments, and this process is founded in private ownership of the means of production” (p. 131). The authors carefully distinguish between the free-market system they support and the “crony” or “state” or “oligarchic” forms of capitalism they reject. In particular, to function rightly, free-markets require the “rule of law” that extends to political and business elites as well as ordinary folks. Poor countries almost always have poor (i.e. corrupt or incompetent) leaders! Property must be protected, contracts and deeds must be upheld, and harmful products must be banned. A free-market cannot work amidst anarchy, so a good if limited government is essential. And the free-market also needs a stable currency and low taxes to encourage the development of goods and services. Various aspects of free market economics—specialization, trade, competition, prices, profits and losses, entrepreneurship—are explained and defended. “The genius of a free-market system is that it does not try to compel people to work. It rather leaves people free to choose to work, and it rewards that work by letting people keep the fruits of their labor” (p. 133). Neither one person nor any bureaucracy guides the free-market economy—the collective wisdom of countless individuals making choices enables it to work well. This meshes well with the Bible’s celebration of “human freedom and voluntary choices” (p. 188). Freedom is truly essential for human flourishing of any sort. Thus Asmos and Gruden carefully detail “twenty-one specific freedoms” (e.g. to own property, buy and sell, travel and relocate, trade, start businesses, to work at any job, etc.) that should be protected in any good society. Sustained by a free people the free-market works! “With no central director or planner, it still enables vast amounts of wealth to be created, and the benefits to be widely distributed, in every nation where it is allowed to function. No other system encourages everyone to compete and cooperate, and gives people such economic freedom to choose and produce, and thus enhances prosperity. Slowly but surely, countries around the world are seeing the win-win nature of a free-market system” (p. 184). There is, furthermore, a moral as well as economic component to the free-market. Obviously wrongdoing occurs within free-market economies! No Christian should be alarmed at the reality of sin pervading all areas of human behavior! But the opportunities for massive corruption are more strikingly evident in socialistic, state-controlled economies prevalent throughout the developing world. By encouraging individual freedom and responsibility, free markets recognize the intrinsic dignity of persons created in the image of God who create the goods and services basic for human flourishing. Such taking care of oneself, acting in one’s self-interest, can be distinguished from covetousness. As Brian Griffiths says: “‘From a Christian point of view therefore self-interest is a characteristic of man created in the image of God, possessed of a will and a mind, able to make decisions and accountable for them. It is not a consequence of the Fall. Selfishness is the consequence of the Fall and it is the distortion of self-interest when the chief end of our lives is not the service of God but the fulfillment of our own ego’” (p. 208). To Rick Warren, who has energetically supported programs around the world while pastoring the Saddleback Community Church, this book merits serious attention from evangelicals. He’s traveled extensively and “witnessed firsthand that almost every government and NGO (non-profit) poverty program is actually harmful to the poor, hurting them in the long run rather than helping them. The typical poverty program creates dependency, robs people of dignity, stifles initiative, and can foster a ‘What have you done for me lately?’ sense of entitlement.” Thus, Warren continues: “The biblical way to help people rise out of poverty is through wealth creation, not wealth redistribution. For lasting results, we must offer the poor a hand up, not merely a handout.” To enable us to do so, The Poverty of Nations “should be required reading in every Christian college and seminary,by every relief and mission organization, and by every local church pastor.” At Saddleback, Warren says, “this book will become a standard text that we will use to train every mission team we have in 196 countries.”

This book should be in every University business class as mandatory reading.