Home
/
RELIGION & LIBERTY ONLINE
/
How managers can help save the world
How managers can help save the world
Jan 16, 2026 4:01 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
Gregg on the Moral Environment of Entrepreneurship
In today’s Detroit News, Acton Research Director Samuel Gregg talks about the sort of “moral, legal and political environment” that must exist if entrepreneurs are to flourish. He applies these precepts to the very serious economic problems in Michigan, where Acton is located: … in the midst of this enthusiasm about entrepreneurship, we risk forgetting that entrepreneurship’s capacity to create wealth is heavily determined by the environments in which we live. In many business schools, it’s possible to study entrepreneurship...
Global Giving and Local Needs
This month’s Christianity Today features a cover package devoted to the challenge faced by non-profit ministries amidst the recent economic downturn. The lengthy analysis defies any easy or simplistic summary of the state of Christian charity. There are examples of ministries that are scaling back as well as those who are enjoying donations at increased levels. Compassion International and InterVarsity Christian Fellowship are cited as those bucking the conventional logic that giving to charities decreases during a recession. “So far,...
What do our holidays mean to us?
[Editor’s Note: We e Ken Larson, a businessman and writer in southern California, to the PowerBlog. A graduate of California State University at Northridge with a major in English, his eclectic career includes editing the first reloading manual for Sierra Bullets and authoring a novel about a family’s school choice decisions titled ReEnchantment, which is available on his Web site. For 10 years Ken was the only Protestant on The Consultative School Board for the Roman Catholic Diocese of Orange...
Acton Commentary: From Crisis to Creative Entrepreneurial Liberation
A new study from the Kauffman Foundation shows how Americans are increasingly turning to entrepreneurship to pull themselves out of an economic crisis. “When individuals are truly free to exercise their talents and trade the production of their labor, without oppression from tyrants or the entanglements of unnecessary government ‘oversight,’ the net effect is mutually beneficial for society as a whole,” writes Anthony Bradley in this week’s Acton Commentary. Read mentary at the Acton website and share your response in...
PBR: Only as Good as the People
What’s wrong with populism? Nothing, necessarily. But, to hazard a tautology, populism is only as good as the people. I think this territory was covered pretty well by Alexis de Tocqueville, whose view was in turn covered pretty well by Sam Gregg in mentary of a couple weeks ago: “The American Republic,” Tocqueville wrote, “will endure until the day Congress discovers that it can bribe the public with the public’s money.” As Sam notes, Tocqueville cited the importance of religion...
Acton Commentary: Entrepreneurship isn’t enough
Economists and business schools have, in recent decades, rightfully praised entrepreneurs for their ability to create wealth and transform entire industries. But there’s more to it than that, says Sam Gregg in mentary. “If taxes are high, property-rights unprotected, and corruption the norm, then the environment embodies major deterrents to wealth-generating entrepreneurship,” he writes. “Why would people risk being entrepreneurial when they can’t assume their ideas won’t be stolen or their profits arbitrarily confiscated?” Read mentary at the Acton Website...
Using ‘Human Rights’ to Squelch Free Speech
In the June issue of Reason Magazine, Ezra Levant details his long and unnecessary struggle with Canadian human rights watchdogs over charges that he insulted a Muslim extremist, who claimed to be a direct descendant of the Prophet Muhammad. This sorry episode also cost Levant, the former publisher of Canada’s Western Standard magazine, about $100,000. Read “The Internet Saved My Life: How I beat Canada’s ‘human rights’ censors.” (HT: RealClearPolitics). Levant sums it up this way: The investigation vividly illustrated...
Review: Joker One
It is appropriate that Donovan Campbell offers an inscription about love from 1 Corinthians 13:13 at the beginning of his book, Joker One: A Marine Platoon’s Story of Courage, Leadership, and Brotherhood. That’s because he has written what is essentially a love story. While there are of course many soldier accounts from Afghanistan and Iraq, some that even tell more gripping stories or offer more humor, there may not be one that is more reflective on what it means to...
PBR: Politics and Populism
Last week Arthur C. Brooks, president of the American Enterprise Institute, made the case for “ethical” populism. Speaking of the Tea Party phenomenon, he writes, the tea parties are not based on the cold wonkery of budget data. They are based on an “ethical populism.” The protesters are homeowners who didn’t walk away from their mortgages, small business owners who don’t want corporate welfare and bankers who kept their heads during the frenzy and don’t need bailouts. They were the...
PBR: Cheesy Christian Movies and the Art of Narrative
Writing on the Big Hollywood blog, Dallas Jenkins asks the question: “Why are Christian Movies So Bad?” Jenkins, a filmmaker and the son of “Left Behind” novelist Jerry Jenkins, points to a number of telling reasons for the glaring deficit in artistic plishment, what you might call the dreck factor, that is evident in so many films aimed at the faithful. Jenkins’ critique points to something we’ve been talking about at Acton for some time: the need for conservatives to...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved