Sunday, December 21, 2008

Carbon Micro Property Rights & the Death of Microfinance


Will Carbon Micro-Property Rights supplant Microfinance?

Will the Death of Microfinance be greatly exaggerated?

A pan-African sushi buffet ?

Over 1 billion dispossessed ! ?

Has anyone ever asked the question: "Is there really a need for micro-charity and/or microfinance?"

Perhaps not. In short, as described at length in this blog, if the carbon micro-property rights of the Poor in the Third World were respected, and if they could indeed monetize their reduced-carbon footprints by cooking with an efficient Uganda stove and selling their earned offsets, for example, would there be such a need for micro-charity and micro-finance? I venture to say, the need for them both would be reduced 50 - 75 %. Or more.

If the world's NGOs and major governments would just embrace the Common Sense of the Standard International Carbon Micro Credit (SICMC) described below in detail in my post of November 20, 2008, and engage in a "willing suspension of disbelief" regarding the indisputable fact that human beings do indeed have to eat a certain amount of cooked food every day (or they unwillingly go hungry, in which case the SICMC then becomes a well-merited social-transfer payment), then the need for traditional microcharity and microfinance would be hugely reduced.

Are Africa's one billion people eating sushi every day?

Are they not cooking at home daily with biomass but, rather, dining out at the local McDonald's?

Are they cooking with electric stoves or gas ranges instead of biomass?

Are they fasting 1 or 2 days per week by choice for religious or health reasons?

The answer to all of these foolish questions, of course, is "No!"

But the vast majority of the "intelligentsia" in America & Europe wearing overcoats of subcutaneous body fat doubt the assumption that hyper-low body-mass-index Africans consume food cooked with biomass, and therefore doubt the validity of the Standard International Carbon Micro Credit (SICMC). When the topic of Carbon Micro Credits is raised, they repeatedly express "concerns" about "validation" and "fraud", while the Poor in Africa starve, as happened again recently in southern Ethiopia. Lamentably, excessive feeding starves the brain of Common Sense, and the Rich are poor in compassion.

If we respected the Micro-Property Rights of the Poor in the Developing World and enabled them to sell their annual carbon offsets every year for US$ 45 - 100 per family, as well as allowed them to save 20 - 60 % of their daily income by not having to buy expensive cooking fuels or biomass, then they could immediately elevate their standard of living by 25 - 75 %. If so, then the need for both microfinance and micro-charity in the Developing world would be greatly reduced.

If we further compensated Africans at the village-level for reforestation programs, methane-capture projects, and other green house gas-mitigation efforts, the income of the average African could be elevated even further. As written before below, the Rich in the Developed World should let the Poor in the Developing World inherit the carbon markets.

Respecting Carbon Micro Property Rights worldwide would be the beginning of the end for micro-charity, and likewise reduce the role of microfinance. Markets-based solutions are the economic Natural Order of Things. Property Rights are similarly Divine and "self-evident". Remember, "the Poor shall inherit the Earth." Let Rich Stupidity die so they may inherit their rightful Property now.

Warmly & rightfully yours,

David A. Palella
Chief Dreamer

San Diego, CA
tel: 858-793-0741