Home
/
RELIGION & LIBERTY ONLINE
/
How managers can help save the world
How managers can help save the world
Jan 11, 2026 9:45 AM

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
Commentary: Time to End Clergy Tax Breaks?
In this week’s Acton News & Commentary, Rev. Gregory Jensen observes that munities on both the left and the right can agree that government budgets are “moral documents.” He then offers a novel suggestion for closing budget gaps while offering clergy an opportunity to show solidarity with the poor. Subscribe to the free weekly ANC and other Acton publications here. Time to End Clergy Tax Breaks? By Rev. Gregory Jensen Unless you are a member of the clergy or involved...
Samuel Gregg: Looking Back on Benedict’s Regensburg Speech
Five years ago today, Pope Benedict XVI delivered a talk titled “Faith, Reason and the University” at the University of Regensburg in Germany. The lecture set off a firestorm of controversy concerning Christian-Muslim relations. On National Review Online, Acton Research Director Samuel Gregg reflects, noting that calling it “one of this century’s pivotal speeches is probably an understatement.” Gregg says that the reaction to the pope’s speech “underscored most Western intellectuals’ sheer ineptness when writing about religion.” More seriously: …...
Hunter Baker to Deliver Acton Institute’s Calihan Lecture
Mark your calendar! As announced earlier this year, Dr. Hunter Baker is the recipient of the 2011 Novak Award. Hunter will deliver the 11th annual Calihan Lecture and receive this year’s Novak Award on October 5, 2011 at Regent University in Virginia Beach, VA. Hunter’s presentation will conclude a day-long conference, “Whole Life Discipleship: Integrating Faith, Economics, & Work,” which will consist of two other lectures and a panel discussion. For more information or to register to attend, please see...
VIDEO: Rev. Sirico on Dave Ramsey’s ‘Great Recovery’
Rev. Robert A. Sirico has lent his voice to Dave Ramsey’s new projectThe Great Recovery. The sound finance guru is leading a grassroots movement based on the principle that economic recovery cannot be a top-down, Washington-directed endeavor. Rather, our economy “will be restored one family at a time, as each of us takes a stand to return to God and grandma’s way of handling money.” Rev. Sirico has recorded a video for the “Top Leaders” section of the website and...
Jobs Act Usurps Liberty, Christian Charity
President Obama wants his American Jobs Act passed immediately. You know this already—he made sure he delivered that message in his speech: “Pass this jobs plan right away” was his refrain. President Obama has definitely not read the Federalist Papers in a while. If he had, he would not be encouraging Congress to pass half-a-trillion dollars of new spending at a moment’s notice. Congress is not a quick-strike team, and the Senate especially is not designed to be a rapidly...
Samuel Gregg: Welfare State Continues to Fail
Acton’s tireless director of research Samuel Gregg has a post up at NRO’s The Corner in reaction to yesterday’s bad poverty numbers (46.2 million Americans live below the poverty line now—2.6 million more than last year). Gregg is ultimately not surprised about the increase, because not only does the American welfare state producelong termdependence on governmental support, but the huge debt incurred by poverty programs tends to slow economic growth. It is now surely clear that the trillions of dollars...
Rev. Sirico: ‘Jobs & deficits — the moral equation’
Writing in today’s Pittsburgh Tribune-Review, Rev. Robert A. Sirico, president and co-founder of the Acton Institute: Jobs & deficits — the moral equation By Rev. Robert A. Sirico Thursday, September 15, 2011 The Genesis account of creation tells us that from the beginning, humanity was created to work. God puts Adam in the garden to “work and watch over it.” The Scripture provides an insight into our nature: We are all, man and woman, called into this life to find...
Samuel Gregg: Tea Party a Force in 2012
Director of Research Samuel Gregg is among those reacting to last night’s CNN/Tea Party Debate on National Review Online. His first point is that “when CNN hosts a Tea Party–sponsored debate, you know we’re not in 2008 anymore.” Gregg’s take is that the debate was a lot more mainstream than the network wanted us to think, and that the economic questions raised and debated are going to be the central issues of the 2012 election: Almost all of the candidates...
Government as Big as We Want
The folks over at Think Christian asked me to write up a response to President Obama’s jobs speech from last Thursday. That response is now up over at the TC site, “The misplaced faith of Obama’s job speech.” I took special note of President Obama’s invocation of a couple lines from JFK: “Our problems are man-made – therefore they can be solved by man. And man can be as big as he wants.” I found this quote, used in this...
Samuel Gregg: Pope’s Work Cut out for Him in Germany
Director of Research Samuel Gregg has written a special report for the American Spectator about Benedict XVI’s ing trip to Germany. The recent World Youth Day in Spain may have looked like a bigger challenge for Benedict, but Gregg says that Germany, while its economy looks good, is facing rough seas ahead. Germany finds itself propping up a political experiment (otherwise known as the euro) that’s tottering under the weight of its internal contradictions. As the German tabloid Bild put...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved