The Millionaires of Maralal

In 2002, a group of Samburu herdsmen in Africa received $7 million (US) as compensation for injuries caused by ammunition left by the British. Headlines proclaimed "From Herdsmen to Instant Millionares."

What did these tribesmen do with the money? As reported by James Shikwati in the magazine African Executive, they went on a spending spree. All that remains today of the money are cell phones and televisions that don't work.

Shikwati cites this story as an example of why "big money" foreign aid does nothing to eliminate poverty. Until individuals have the human capital to handle financial capital, they will squander whatever financial capital comes their way.

Unfortunately, this is not an isolated African problem. In the West, stories of superstar athletes who make millions of dollars and wind up bankrupt are all too common. And sadly, many lottery winners end up spending their way back to whatever standard of living they had before their good fortune. For people like this, wealth is a vacation, not a lifestyle.

An individual and cultural expectation to save and invest for the future, rather than live entirely in the moment, is more valuable than all the "big money" in the world. Somebody tell Bono.