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Lords of Poverty

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Lords of Poverty is a case study in betrayals of a public trust. The shortcomings of aid are numerous, and serious enough to raise questions about the viability of the practice at its most fundamental levels. Hancock’s report is thorough, deeply shocking, and certain to cause critical reevaluation—of the government’s motives in giving foreign aid, and of the true needs of our intended beneficiaries.

256 pages, Paperback

First published January 10, 1994

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About the author

Graham Hancock

127 books3,661 followers
Graham Hancock is a British writer and journalist. His books include Lords of Poverty, The Sign and the Seal, Fingerprints of the Gods, Keeper of Genesis (released in the US as Message of the Sphinx), The Mars Mystery, Heaven's Mirror (with wife Santha Faiia), Underworld: The Mysterious Origins of Civilization, Talisman: Sacred Cities, Secret Faith (with co-author Robert Bauval), Supernatural: Meeting with the Ancient Teachers of Mankind and Magicians of the Gods. He also wrote and presented the Channel 4 documentaries Underworld: Flooded Kingdoms of the Ice Age and Quest for the Lost Civilisation. His first novel, Entangled, was published in 2010.

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5 stars
108 (29%)
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133 (36%)
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100 (27%)
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18 (4%)
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Displaying 1 - 30 of 45 reviews
Profile Image for Steve Woods.
619 reviews68 followers
June 30, 2015
What can anyone say about this book? After 15 years of living in SE Asia and watching the performance of these predators, stuffing their very being from the swill trough for little or no positive return-indeed on occasion, if positively anything then it would be positively destructive, I felt I needed to get some facts. The anathema with which I regard these people began to look to me slightly hysterical, so I began to wonder whether, at least a goodly part of the problem was with my perception rather than their performance.

Regrettably no! If anything my loathing of the entire system for delivery of aid, along with its institutions and the people within it has grown as a consequence of the fact gathering. All my worst stereotypical classification of the lot, as self interested, self serving and incompetent at best through to cynically exploitative to just plain evil, at worst was confirmed in substance by the research and observations here.

The figures and the examples given in this book may be slightly dated now, but things have not changed. If anything they have gotten worse as the global Aid budget has ballooned as a result of that masterful piece of UN PR propaganda The Millennium Development Goals. Thy themselves remarkable more in their failure to be achieved across the board rather than the slim pickings provided by some improvement. The best image for the whole industry, that comes to mind is Jabba the Hut from Star Wars. Grossly bloated and insatiable. It is difficult to understand how this absolute obscenity could have become any worse than when this book was first published, but it has.

I do not oppose Aid but the industry that bloats its own appetites from the proceeds using the suffering of the poor as justification and the sophistication of modern PR to hide the truth of its rapaciousness and the damage it does both individually and globally. I oppose all of that as iniquitous! Cut off the funds dissolve the World Bank and the IMF and demolish the UN, the argument that something is better than nothing just can't hold up after even the most cursory examination of the results. The current world crisis brought about by the flight of refugees and so called economic migrants, is at least in large part directly attributable to the failure of the Aid industry across the troubled countries of the world. It has not only failed but exacerbated the problems with the countries in Africa now worse off than they were just Pst WW2 when this huge development effort was begun and systematized. The only people who have benefitted have been corrupt ruling classes and the overpaid and generally inept aid workers themselves.

This book was so disturbing I could only read it a small slice at a time. The anger and despair it evoked in me was almost unbearbable at times. My inclination to have absolutely nothing to do with anyone who benefits from this the greatest fraud in history now feels absolute. They are for me agents of evil, simply beyond the pale without exception. Naivete or delusion are not an excuse.
3 reviews5 followers
April 20, 2009
The book is focused on international aid industry in 70-80s. Author shows that international aid in beneficial mostly for donor-countries economies, corrupted aid industry's officials and workers and developing countries' governments, though poor people remains poor. Though, some things have been changes, I still recommend to read this book in order to understand how it was started and be able to compare with current state.
Profile Image for Yanti.
3 reviews2 followers
October 2, 2007
I read this book when the issue of poverty and humanitarian high on the agenda of both Africa and Asian countries - once worked for Oxfam and CARE the two NGOs mentioned in the book and also with UN that is the focus of discussion throughout the chapters within I have to admit that I'm not at all surprised on the facts that were revealed in the book. Bureucracy, one precription fits all attitude, insensitivity, arrogance of the service providers are all common disease that we can find anywhere. UN may have a good system but to run it effectively they need the right people and unfortunately just like in many other giant organisation, NGOs alike, right people not always sit in the right place... the result? disaster and failure...
Profile Image for Brad.
16 reviews4 followers
March 30, 2008
The summary argument:

"At $60 billion a year ... aid is already quite large enough to do harm. Indeed ... it is often profoundly dangerous to the poor and inimical to their interests: it has financed the creation of monstrous projects that, at vast, expense, have devastated the environment and ruined lives; it has supported and legitimised brutal tyrannies; it has facilitated the emergence of fantastical and Byzantine bureaucracies staffed by legions of self-serving hypocrites; it has sapped the initiative, creativity and enterprise of ordinary people and substituted the superficial and irrelevant glitz of imported advice; it has sucked potential entrepreneurs and intellectuals in the developing countries into non-productive administrative activities; it has created a 'moral tone' in international affairs that denies the hard task of wealth creation and that substitutes easy handouts for the rigours of self-help; in addition, throughout the Third World, it has allowed the dead grip of imposed officialdom to suppress popular choice and individual freedom"

Other notes:
I would also be interested in knowing the author's thoughts on how to redirect money from ODA into more effective humanitarian efforts (Oxfam is one of his favorite NGOs to exclude). In crisis, at a minimum, there is a need for this type of work. Additionally, an approach to weening now dependent governments from the aid spigot without setting the stage for conflict would be an interesting addition.
5 reviews3 followers
March 11, 2009
Really interesting book. I never gave much thought to the Aid industry before this book, but certainly have since reading it. My only complaints are that it offers no proposed solutions and it is also somewhat out-dated, in terms of statistics. A newer edition of the book would be incredibly valuable.
Profile Image for Edy.
273 reviews33 followers
December 25, 2011
Buku ini menyoroti ironi polah lembaga Internasional seperti lembaga yang ada dibawah naungan PBB (misal FAO, WHO dll); lembaga keuangan macam World Bank, IBRD, IMF; dan lembaga bantuan sebuah negara seperti USAID.

Dalam buku ini, penulis bahwa bantuan asing baik yang bersifat hibah (grant) dan utamanya berupa hutang (loan) cenderung tidak berhasil mengentaskan kemiskinan di negara ketiga, karena:
• Bantuan yang disalurkan tidak ditangani oleh tenaga-tenaga profesional.
• Tenaga dari lembaga bantuan hidup bergelimang kemewahan sehingga tidak punya emphaty terhadap masyarakat miskin. Sehingga penentuan program untuk masyarakat sering bias dari kondisi lapangan.
• Pengembangan program yang didukung bantuan luar negeri seringkali tidak didukung oleh data dan feasibility study yang memadai.
• Kurang koordinasi antar lembaga pemberi bantuan yang memunculkan duplikasi dan tumpang tindih program
• Korupsi di lembaga pemberi bantuan maupun di lembaga penerima bantuan menimbulkan inefisiensi yang sangat besar.
• Program bantuan seringkali salah sasaran sehingga malah memperlebar kesenjangan di masyarakat
• Implementasi pembangunan yang menggunakan bantuan luar negeri seringkali menciptakan pelanggaran HAM di lapangan dan si pemberi bantuan sering menutup mata terhadap kasus ini.
• Spirit pemberian bantuan khususnya loan oleh lembaga keuangan seringkali lebih didasari pertimbangan untuk menjual kredit pinjaman dan mendapatkan bunga pinjaman.
• Sedangkan penyaluran hibah (grant) sering disertai politik dagang didalamnya. Bantuan luar negeri sering disertai upaya untuk menjual produk-roduk dari negara pemberi bantuan, bahkan juga menciptakan ketergantungan kepada si pemberi bantuan.
• Terdapat filosofi yang salah dari banyak lembaga penyalur bantuan. Mereka berpendapat bahwa masyarakat miskin adalah “masyarakat tidak berdaya”, sehingga bantuan perlu disalurkan untuk mereka. Akibatnya muncul banyak kegiatan charity dari mereka, yang tidak membangun keswadayaan dan potensi lokal.

Dalam buku ini penulis juga mengkritik bahwa masyarakat pembayar pajak di negara maju, disedot pendapatannya untuk disalurkan sebagai bantuan ke negara miskin (termasuk via PBB). Namun selama ini tidak ada mekanisme yang transparans dan akuntabel untuk pelaporan pemanfaatan uang oleh para lembaga penyalur bantuan kepada para pembayar pajak tersebut

Walau buku aslinya diterbitkan tahun 1985 namun analisis dalam buku ini sebagian besar masih kontekstual dengan kondisi sekarang. Semoga para birokrat Indonesia juga mampu bernalar jernih ketika membaca buku ini. “Bantuan” merupakan kata yang indah namun ternyata banyak “kecurangan” atau “hidden agenda” didalamnya. Tidak ada makan siang gratis untuk sebuah bantuan...
Profile Image for Wendy Jackson.
321 reviews4 followers
April 2, 2019
I did not actually read the entire book. I read it about 15 years ago, and perhaps it had some value then, but definitely not now. Do not get me wrong - I do not think the Hancock is wrong about everything. I have lived in expat/diplomatic enclaves in various countries, and he correctly identifies the entitled and elitist behaviours and attitudes that some people have. Also, having worked in the UN system, I know there are deep, troublesome, systemic issues. However, I would rather have a world *with* aid and assistance (as subpar as it may sometimes be) rather than without it. Let's look at it practically: Hancock's book was written in 1989, before the Millennium Development Goals were agreed in 2000, and before he could see the impact they had. Some stats on the goals (which 'expired' in 2015):

-number of people living on less than $1.25 a day has been reduced from 1.9 billion in 1990 to 836 million in 2015
-primary school enrollment increasing from 83% in 2000 to 91% in 2015
-child mortality rate reduced by more than half falling from 90 to 43 deaths per 1,000 live births
-global maternal mortality ratio has fallen by nearly half
-2.6 billion people have gained access to improved drinking water since 1990, so the target of halving the proportion of people without access to improved sources of water was achieved in 2010 (five years ahead of schedule)

The MDGs are one example of initiatives emerging from the development/humanitarian sector, but the goals tell us much about the entire system. Were all goals met? No. Was there some waste in the system? Absolutely. Did some NGOs cream it from MDG-related projects. For sure. But would we have achieved these outcomes without the development system? Probably not. Would the 'invisible hand of the market' led to these outcomes? Highly unlikely. So yes, the system needs improvement, it can be wasteful, and there are perverse incentives; however, until someone designs something better, it is the best we have.
Profile Image for Jon.
18 reviews
September 18, 2010
A damning tirade against the corruption and systemic flaws of the United Nations, World Bank, and other multilateral institutions that comprise the mainstream of international development. I highly recommend this book to anyone interested in the development field; I found it very eye-opening about the realities of the business and some of the ways in which international aid is deeply flawed from the ground up (or top-down, as it were). Although the author dismisses the entire establishment as being beyond repair and better dealt with by disbanding it entirely, for me the strength of his arguments lies in the honest truth about how business gets done - and hopefully I will be able to carry this knowledge with me into the field and use it to help make some sort of positive impact on the system. In the end, the book provides a good hearty dose of brutal truth about one of the Western world's most deceptive and harmful businesses.
370 reviews
August 14, 2010
This is a quite well-wrought screed, which highlights the problem of the global development industry. It is particularly good at explaining the grand farce that is much of the UN. I am amazed that this book, written over twenty years ago, captures so accurately almost exactly the category of the current UN modus operandi.

Even in the 1980s, the book mentions, there are more expatriates in sub-Saharan Africa than there were during colonial times. Meanwhile none of the problems seem to have improved very much. I am reminded by the line from The Zanzibar Chest, where is father said, "we shouldn't have come."

I think it is fascinating that the book focuses on Africa, even in the 1980s. It appears that many of the other parts of the world, with our without aid, have managed to scrabble their way out of destitute poverty. Yet, Africa it just seems to make things worse... Will this ever change?
Profile Image for Jared Donis.
278 reviews61 followers
February 1, 2017
Painful reality presented in glaring honesty. Even after almost three decades most of what he says still takes place in the aid-development practice. His cynicism is well justified.
Profile Image for GrahamJA.
388 reviews10 followers
March 5, 2019
A brilliant eye opening book that delves into the corrupt world international aid . I recommend it .
Profile Image for Maki.
22 reviews
February 11, 2009
Everyone told me I should read this book, and I don't know why. It is not well-written nor is it written with any kind of expertise on the topic. There are plenty of good criticisms of aid agencies out there, and this isn't one of them. I think one of the problems, to be fair, is that the book is dated and most of the issues that are raised in the book, in my opinion at least, have been ameliorated or entirely resolved. I think the bigger questions of ethics in aid are not even really raised here. Maybe I'm just not cynical enough...
Profile Image for Fatimah Al Ubaid.
85 reviews7 followers
January 12, 2020
كتاب أكثر من جيد، مثل هذه الكتب تستحق القراءة على نطاق واسع من نُخبّة القرّاء، لكنه بحاجة إلى تحديث.
* الترجمة العربية لهذا الكتاب لدار حداثة بعنوان "سادة الفقر"
Profile Image for Vincent Paul.
Author 16 books62 followers
October 17, 2023
Even if The Lords of Poverty: The Power, Prestige, and Corruption of the International Aid Business by Graham Hancock was written over 30 years ago, when most of the systemic design was to pauperise the developing (Third World) countries, it still makes sense today. Yes, some areas he identifies have been improved through the Millennium Development Goals (2000 AD) and the Sustainable Development Goals (SDGs), his expose of the deep-rooted corruption in the UN, the AID business, and the Development mirage is still there today. Here are some excerpts:

It is the poor who shoulder the burden: In order to achieve the admirably clear and simple goal of increasing a country's revenues and reducing its expenditures, structural adjustment will
typically involve all, or most, of the following 'austerity' measures: devaluation of the local currency (because, in theory, this will discourage imports - by making them more expensive - and provide a stimulus to exports); draconian cuts in government expenditure, particularly spending on education and health care; radical reduction or complete elimination of food and other consumption subsidies; measures like reductions in wages and restrictions in the availability of credit, which are also designed to reduce the overall level of consumption within 'adjusting' societies; across-the-board abolition of price controls, coupled with the privatisation of public utilities and immediate price increases for the services they provide (like water, electricity, etc.); and, finally, higher taxes and higher interest rates.


Under such circumstances it is difficult to avoid the conclusion that some sort of conspiracy is afoot - a conspiracy in which rich countries and their institutions unite to force Third World nations to adjust even if the recipients are too much willing to adjust and get the loans, which they mostly use not for development but self-enrichment.

I need to say no more. This is what happened to Kenya in the year of our Lord 2023, and the masses cried.
Profile Image for Luther Gwaza.
28 reviews
January 4, 2018
A must read for anyone, from low/middle income countries, or Africa to be precise, and those working in development. Not to be forgotten are policy makers and political leaders, but they are familiar, I presume, to the cases written in this book. I found the analysis to be precise in explaining some of the developmental issues facing Africa, but for me the main message is for Africans to take responsibility for their own destiny. You cannot fault those who are trying to help out of their goodwill. One (Africans) cannot abdicate their responsibility for their own affairs to their 'gracious' neighbor (donors).
Profile Image for Will.
1,585 reviews60 followers
March 13, 2022
A groundbreaking book when it was first written in the early 1990s, questioning the effects of the international system of aid and assistance to developing nations. It focusses largely on state-to-state aid, as well as the United Nations system. It points to the high salaries of the mostly Western bureaucrats, while also discussing the corruption of money given to leaders (including Marcos in the Philippines, Bokassa in CAR, or Mobutu in DRC), and points to how money give to 'aid' often ends up hurting more than it helps. It gives extensive focus on the World Bank's structural adjustment programs.
Read
November 22, 2020
Hancock gives a synopsis of the issues around the Aid Business that most people don't know. The negatives sides of it and how it won't save the third world. He portrays this with examples that are relatable to different parts of the world.

Graham did a work that most writer have failed to do, calling a spade for what it really is.
March 8, 2021
The idea is interesting initially, but eventually it degrades down to a boring loop of repetitions. I believe that the book could have been shorter or presented less examples ..
Profile Image for Rachel.
276 reviews
June 18, 2008
Although interesting, the book left something to be desired -like a workable solution(s) for how best to deliver aid and/or assist developing nations. The book is a detailed list of all the ways that Western governments, NGOs, the UN and other such organizations, along with corrupt leaders have failed the poor. And although I agree that many aid workers are overpaid - there are those of us who are not. Furthermore, I have often questioned the idea that aid workers should not be paid well - the book fails to properly address this and many other aspects of development assistance. The good side is that the book made me look into why I have choosen this industry (and yes it is an industry).
72 reviews1 follower
August 1, 2007
The most damning book on the international aid BUSINESS I've ever read. Almost 2 decades old, but still relevant in its criticisms. It makes a great companion read to the White Man's Burden, but from a more journalistic and less economics oriented viewpoint. I'd give it 4 stars, but it was just too depressing :( Hancock is excellent at pointing out problems, but limits his solutions to starving the beast. From reading his book you know that will be impossible. Easterly's options of gradually reforming and refocusing is more feasible.
Profile Image for Waffles.
150 reviews19 followers
September 15, 2007
I read this while I was a Peace Corps Teacher. It helped to explain why I used to see so many UN SUVs tooling around the capital, but none in my drought-stricken area.

It helped that the author makes it clear that he is biased against the UN. At the very least, this book can help clarify the UN's role in aid and development (they are a contracting agency/outsourcer of aid work with a HUGE administrative overhead (over 80% of their budget at the time the book was published). I'd go on, but I don't want this to turn into a rant.

486 reviews26 followers
September 7, 2011
Besides needing updating.... The indictment of the international aid bureaucracy is a formidable one.... but when someone devotes that much passion to grinding an axe, I can not but wonder what he is NOT telling, even when he is telling me what I want to believe.

Also, it does not mention that much of the antagonism toward Amadou M'Bow was brought on by his advocacy of the so-called "New World Information Order".
1 review3 followers
April 22, 2008
Great book. Lots of information, almost too much info and not enough narrative. Extremely depressing but in a good way - we should all know about this corruption, but I have to admit it doesn't make for the best bed time reading. Some of it is hard to get to but is a great book to have around for reference.
Profile Image for Jaylene.
16 reviews3 followers
Read
April 18, 2009
This book was recommended to me by a refugee who went through the "UNHCR resettlement scandal in Nairobi", circa 2000. It is so hard to read because it is depressing as hell. One semi-positive note is that there seems to have been some improvement since the the '90s. I think I'll finish this one after my early retirement to a bucolic village.
5 reviews
February 3, 2016
Some of Graham's writing is painful to get through, both emotionally and.. literally. However, this is a incredibility important read that is still valid today. Be mindful of where you are sending your money, and keep in mind all organizations have bureaucratic short comings and in most cases presented here, complete failures.
Profile Image for Rob Carr.
194 reviews1 follower
May 1, 2016
While I can't agree with the books ultimate recommendation I think this covers very well some of the issues that historically faced the aid industry. While not eliminated we have come a long way from these mistakes which is good to see for the comparison. Hopefully we will continue to make progress at improving the effectiveness at how we deliver aid.
Profile Image for Tony Cohen.
272 reviews10 followers
May 1, 2007
Guess what...patronage runs rampant at the UN, and what should be helping people isn't really....I am very pro-UN but this book really shook me. Things shouldn't be this way, but the best of ideas must still be run by the meanest of people.
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