Home
/
RELIGION & LIBERTY ONLINE
/
How managers can help save the world
How managers can help save the world
Jan 28, 2026 9:51 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
Warren on the Faith-Based Initiative
In a wide-ranging interview with Christianity Today, Rick Warren discussed his view of the new vision for the faith-based initiative. Here’s that Q&A: Have you paid attention to the new faith-based initiatives released by President Obama and Joshua DuBois focusing on the four issues of responsible fatherhood, reducing unintended pregnancies, increasing interfaith dialogue, and reducing poverty? Those are great goals. My fear is that if all of a sudden you have promise your convictions to be part of the faith...
PBR: A Cautionary Tale
AS NYT columnist Frank Rich observed earlier this week, it’s hard to find much sympathy for Rick Wagoner. “Sure, Rick Wagoner deserved his fate,” writes Rich. “He did too little too late to save an iconic American institution from devolving into a government charity case.” The delusions of the CEOs who lined up on Capitol Hill last year to lobby for bailouts extended beyond the arrogance of flying to congressional meetings in private jets. Duly chastened, the CEOs next made...
Market and Government Failure
An essay of mine appears today over at the First Things website as part of their “On the Square: Observations & Contentions” feature. In “Between Market and State,” I explore the dialectic logic of market and government “failure,” which functions in part to provide us with a false dilemma: our solution to social problems must lie with either “market” or “state.” I work out this logic in the context of the sub-prime mortgage crisis, and conclude that non-profits play a...
A Quick Response to the Christianity Trailing Off Thesis
I recently received a request from a reporter to respond to the recent spate of studies and stories positing a decline in American Christianity. Here’s how I answered: Broadly speaking, it is silly to think of secularization as a linear process. The prominence of the Christian faith waxes and wanes during different historical periods. As Rodney Stark has pointed out, the old golden age of faith picture of antiquity is not nearly as strong as many believe. There is, however,...
The Tax Code: Business as Usual
In this week’s Acton Commentary, I argue for simplifying the tax code. It should also be evident that any sort of tax reform should coincide with reforming the way Washington currently operates when es to spending. April 15th is of course tax day, and national protests will also be occurring across this nation under the historically significant title of “tea parties.” One of the points I made in my piece is that it is important that these protests are not...
A Micro-Lending Prelate
Zenit reports a new initiative by Cardinal Crescenzio Sepe of Naples, Italy: “he is donating a year’s stipend and part of his personal savings to initiate a diocesan bank that will offer micro-credits to the poor.” I like two things about this project. First, the cardinal is putting his own money to work, furnishing a good example of mitment to assist those in need. Second, he is doing so in a thoughtful and creative way, not “throwing money” at a...
The more things change …
A 1934 cartoon by Pulitzer Prize winner Carey Orr published in the Chicago Tribune. Snopes is still checking. ...
David W. Miller interviewed on PBS
Dr. David W. Miller, who was interviewed in Religion & Liberty for the Winter 2008 issue, was recently on a PBS program discussing corporate morality. Here is a portion of the PBS interview which relates to the theme in Acton’s R&L interview titled “Theology at Work: Faithful Living in the Marketplace:” (anchor) ABERNETHY: You, as I said, you used to work in the financial business. What do your friends there, the friends that you have who’ve worked there — what...
Easter: The Resurrection & the Life
Jesus said to her, “I am the resurrection and the life. He who believes in me will live, even though he dies; and whoever lives and believes in me will never die. Do you believe this?” – John 11: 25, 26 The es from the account of Lazarus being raised to life by Christ after already being dead for four days. The question “Do you believe this?” was posed to the sister of Lazarus, Martha. There have been people who...
PBR: Ministries that Matter
Starting this year, the Acton Institute is planning to give out the Samaritan Award every other year. This will allows us to better streamline the award process as well as to more smoothly integrate the results of the award into our Samaritan Guide database. In recent years the Samaritan Award finalists have been profiled in a special issue of WORLD Magazine (here’s the link to the 2008 issue). But this year the folks at WORLD are taking the opportunity to...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved