Home
/
RELIGION & LIBERTY ONLINE
/
How managers can help save the world
How managers can help save the world
Dec 30, 2025 2:55 PM

Why are some countries rich while other countries are poor? A primary reason, as economists have been pointing out for hundreds of years, is productivity—the efficient use of such resources as labor and capital.

Imagine that panies have the same number of workers and use the same amount of materials to make identical widgets. pany A is able to make 100 widgets in the time it pany B to produce 50 widgets. Company A obviously has some “secret sauce” that is making them more productive. This productivity gap—the portion of the output (in this case, 50 extra widgets) not explained by the amount of inputs used in production—is called Total Factor Production (TFP).

Just as there are productivity gaps panies, there are gaps between countries. For example, productivity in the U.S. is more than 30 times larger than some sub-Saharan African countries. As John Van Reenen, a professor of applied economics at MIT, says, “In practical terms, this means it would take a Liberian worker a month to produce what an American worker makes in a day, even if they had access to the same capital equipment and materials.”

What accounts for these large productivity gaps? A key answer is management practices.

Van Reenen was part of the team that conducted the World Management Survey, which began in 2002 to conduct a survey of 12,000 firms across 34 countries. The survey found, “The large, persistent gaps in basic managerial practices that we document are associated with large, persistent differences in firm performance. Better-managed firms are more productive, grow at a faster pace, and are less likely to die.”

“We found that management accounted for about 30% of the unexplained TFP differentials driving the large differences in the wealth of nations,” adds Van Reenen.

Managerial capabilities may be weak for a variety of reason, but a primary cause may be a simple lack of information. As Van Reenen says, “many firms in developing countries may not even realise how weak their management practices are. Or, even when they do they realise this, they may not know how to improve things.”

How can Christians in Western nations help close this productivity gap and improve the economic conditions of developing countries?

Every year approximately two million Americans participate in short-term missions trips. These trips often include service projects, such as painting buildings, that may not be as effective as we imagine. As Darren Carlson, founder and president of Training Leaders International, says, “I have seen with my own eyes or know of houses in Latin America that have been painted 20 times by 20 different short-term teams.” And writing in his bookToxic Charity, Robert Lupton says, “Contrary to popular belief, most missions trips and service projectsdo not: empower those being served, engender healthy cross-cultural relationships, improve quality of live, relieve poverty, change the lives of participants [or] increase support for long-term missions work.”

A potentially more productive short-term service project would be to use the time to help teach businesses in developing countries how to be more productive. Many of the millions of Americans who go on mission trips have some experience in management, or could at least be trained to teach basic management skills. In many countries the productive gap is so large that almost any knowledge we could pass along could be transformative.

Christians long ago recognized that for long-term spiritual success, missionaries had to train up pastors and teachers from within a country. Perhaps it’s time we applied that same thinking to improving the long-term material success of countries in need. By sharing our abundance of managerial knowledge, we could teach others how to be more productive—helping them create wealth for themselves and their neighbors.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Amazon tribal chief: Liberation theology sustains primitive economy
Pope Francis greets indigenous representatives in Puerto Maldonado, Peru, Friday, Jan. 19, 2018. Standing with thousands of indigenous Peruvians, Francis declared the Amazon the “heart of the church” and called for a three-fold defense of its life, land and cultures. (AP Photo/Rodrigo Abd) As the Synod of Bishops from the Amazon continues to make headlines, many are curious about the contents of its ing report. According to Pope Francis, the synod’s goal is “to identify new paths for the evangelization...
Commemorating two genocides: Armenian and Communist
Halloween may be fast upon us, but October 29 and 30 have marked the memorations of the year. In the last two days, the world has belatedly remembered the genocide of Armenian Christians and the brutal repression of all dissidents by the Union of Soviet Socialist Republics (USSR). Last night, the House of Representatives passed H.R. 296, a bill “recognizing and condemning the Armenian Genocide, the killing of 1.5 million Armenians by the Ottoman Empire from 1915 to 1923.” (Only...
Updated: 5 reasons the Chicago teachers’ strike is immoral
The Chicago Public School system’s 361,314 registered students are starting their tenth day at home this morning, as their teachers union strikes for its fourteenth cumulative day. Elizabeth Warren and Bernie Sanders have publicly supported the 32,000 teachers and school staff (represented by the Chicago Teachers Union and SEIU, respectively) on the picket line – but there are five reasons people of faith should not join them. Why are Chicago public school teachers striking? CPS teachers are striking for higher...
Liberation theology never really went away says Samuel Gregg
October 27 marked the close of the Synod of Bishops on the Amazon, a summit organized to foster conversation on pastoral ministry and ecological concerns in the Amazon region. Although the synod report has not been released yet, many predict that it will reflect just how deep the roots of Marxist liberation theology — or ecology — have grown in Latin American Catholicism. In an article published at The Catholic World Report, Samuel Gregg writes that following the collapse of...
Acton Line podcast: The conversion of Kanye West; What Wilhelm Röpke has to say about our digital age
In just the first week of the release of Kanye West’s new explicitly Christian record “Jesus is King,” it’s outsold his previous album “Ye,” projected to sell 225-275k copies. In addition ments regarding his conversion to Christianity, he’s dominated cultural conversation with increasingly conservative opinions, addressing everything from the importance munities, to local churches and even in a recent interview, condemning abortion. Andrew T. Walker from es on to the show to break down reactions to Kanye’s conversion, new artistic...
The uncertain future for free markets in America
A week ago I participated in a panel for the Philadelphia Society on “Conservatism and the Coming Economy.” During the Q&A, I was asked about the future of economic freedom specifically regarding our two major political parties. I had briefly touched on this in my remarks, and though I noted that current trends do not look good, I believe that support for liberty requires the virtue of hope. First, the current trend: On the one hand, while President Trump is...
What Elizabeth Warren could learn from Emmanuel Macron
A cartoon published just after the fall of the Berlin Wall showed two travelers moving in different directions, one personifying former Eastern Bloc nations and the other the NATO allies: The two met as the former Warsaw Pact countries rushed away from socialism and the West hurried toward it. Soon, those characters could symbolize France and the United States. Indeed, today, our two nations could be represented by two specific people: Emmanuel Macron and Elizabeth Warren. James C. Capretta of...
Video: Rev. Sirico at Acton’s 29th anniversary dinner
The Acton Institute celebrated its 29th anniversary on October 15th at the JW Marriott hotel in Grand Rapids, Michigan. Last week, we featured Andrew Klavan’s excellent keynote address here on the blog; this week, we’re pleased to share the remarks of Acton President and co-founder Rev. Robert A. Sirico, who shared the story of how he moved from being a leftist activist to being a strong supporter of the market economy and the free and virtuous society. ...
Chile in flames
It’s been a good week for the left throughout Latin America. In Columbia, center-left and left-wing parties did well in regional election. Argentina also took a left-turn with a left-wing Peronist easily winning the presidency, and bringing the former president Cristina Kirchner back to office as Vice-President. In Bolivia, long-serving left-populist president Evo Morales looks as if he is going to get away with stealing an election. Events in Chile are also a cause for concern. What started as a...
Some reading for Reformation Day
Here is a by no means exhaustive prehensive but simply occasional set of links to some reading from yours truly that might be of interest to readers of the PowerBlog this Reformation Day… Essays: “The further reformation of all of life,” Acton Commentary, October 31, 2017. “The Secularization of Vocation,” Public Discourse, October 30, 2017. “The Church’s Social Witness and the Further Work of the Reformation,” Journal of Christian Legal Thought 5, no. 2 (Fall 2015): 11-16. “Doing much good...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved