How We Beg: The Analysis of Direct Mail Appeals

Fermida Handy's article is a masterpiece which advocates for the pursuance of Honesty which is a great virtue. In essence, Handy is stating that if an individual cannot be trusted with the little that he/she owns, how can that person/entity being an agent be trusted with much which belongs to others, the benefactors and beneficiaries. As Handy states in the article, Charities often play the role of an agent that brokers a charitable transaction between the donor and the recipient. Donors or benefactors are willing to give generously as long as brokers win their Trust and being assured that the donations will reach out to the intended project(s) and not diverted to other programs or end up in some individual pockets. Keeping tabs to avoid being ripped - off is costly and this is why Handy addresses the issue of principal - agent problem.
Focusing on the issue of principal - agent problem, Handy is emphasizing the point that accountability and transperancy is vital. There have been and still situations do exist where agents are accountable but not transparent. It has happened and it is still happenning that agents do recieve substantial sums of funds and deposit the amount in the bank for some duration ( Fixed- Deposit ) in order to cultivate the interest then pass on the initial donation to the recipients. In doing so, they are technically respecting the intentions of the donor by being accountable but they are not sincere transparent by withholding the interest accrued.
This is the explicit picture of what goes on in developing countries and especially in Africa. I must be careful not to make a sweeping statement but certainly there are agents who fail the acid test of being transparent in their mission of trying to alleviate either the conditions of the famine stricken countries or the Aids pandemic. The principal - agent problem also extends to African countries which are experiencing civil strife. For the governments which are deemed to be in power illegimately, the International Monetary Fund ( IMF) , the World Bank ( BK) , United Nations ( UN) , United States ( U.S) , European Union ( E.U) and the International Community, will always enforce economic sanctions. Though the International Community will not recognize rogue states, they still have the obligation to respond to humanitarian crisis by giving donations to the affected countries, not through the state but through the agencies/organizations which have made a good reputation, a name that is highly respected and trusted. The good name of these agents do summarize the advocacy of Handy's article, Honesty is a virtue to be cultivated.