The past has prepared all the materials and means in superabundance to well-feed, clothe, lodge, train, educate, employ, amuse, and govern the human race in perpetual progressive prosperity—without war, conflict, or competition between nations or individuals.”

These words were not uttered by a hopeful world leader at the most recent Group of 8 (G-8) summit, or by Bono at a rock concert—but they certainly sound familiar. They were written in 1857, when British reformer Robert Owen called upon rich countries, who could “easily induce all the other governments and people to unite with them in practical measures for the general good all through futurity.” Owen was laughed out of town as a utopian.

How comforted Owen would be if he were alive in 2005, when some of the most powerful and influential people seem to believe that utopia is back. American President George W. Bush has dispatched the U.S. military to spread democracy throughout the Middle East, G-8 leaders strive to end poverty and disease sometime soon, the World Bank promises development as the path to world peace, and the International Monetary Fund (IMF) is trying to save the environment. In a world where billions of people still suffer, these are certainly appealing dreams. But is this surprising new fondness for utopia just harmless, inspirational rhetoric? Are utopian ambitions the best way to help the poor-world majority?

Unfortunately, no. In reality, they hurt efforts to help the world’s poor. What is utopianism? It is promising more than you can deliver. It is seeing an easy and sudden answer to long-standing, complex problems. It is trying to solve everything at once through an administrative apparatus headed by “world leaders.” It places too much faith in altruistic cooperation and underestimates ...