Sunday, January 17, 2010

Confronting the Economic Causes

Some say money is the root of all evil. Others say the lack of money is the root of all evil. In fact, when reality is examined, there is truth in both statements. Money is indeed the root of all kinds of evil. Greed drives people in positions of power to neglect their responsibilities and fortify their own interests at the expense of the poor they should be protecting. Poverty drives its victims to seek desperate measures in order to survive, or ensure the survival of loved ones and the community. For example, corruption and all its wows of no clear responsibility and the damage to society that results from this is what made possible the inadequate capacity to deal with the recent earthquake in Haiti. It is the extreme stress of having what little security that did exist taken away that will likely drive the poorest people to do things they normally would not. Things like selling a child to pay for medicine. This sort of things is happening all the time.

However, above all else, money is power. Power to feed the hungery and treat the sick. Power to rebuild and free the oppressed. Even power to properly motivate corrupt officials. In this light, it is a tool. A tool which waits for good people to properly use it to cut the chains of poverty and bondage. How to do this is the question, which must be resolved.

The common practice of providing charity in the form of hand outs is good for disasters. It is very, very bad for transforming societies. People can be kept alive on a hand out, but they can not learn to feed themselves. Someone can be bought from slavery, but will quickly be replaced. They key is to find a sustainable solution.

Most fortunately, I am not alone in this opinion, or in actually taking steps to put such plans into action. A proven method of addressing endemic poverty was pioneered by Muhammad Yunus when he founded the Grameen Bank, the first major micro-financing institution in the world. Today, it is credited with being the main factor in reducing the poverty in Bangladesh over the last few decades.

What made Grameen so successful was its truly long term vision. Low interest loans were provided to enable people who would have no access to credit otherwise to invest in capital to start their own businesses and bring themselves out of extreme poverty. Above all else, it respected the poor and treated them as partners, rather than victims or subjects. In this way, people had "buy in" and the result are speaking for themselves. Economic security has been achieved for thousands of families and the threat of having to sell a son or daughter is no longer a concern.

This threat is not something to be taken lightly. It is a common occurrence throughout the world and western history for that matter to sell a child so save the family. Instead of passing judgment, making possible a reality in which this choice does not need to be made should be the goal.

One way this goal is being achieved by my friend, of whom I wrote in the article before this, is be investing what money is raised for his children's home into agriculture, such as vegetable gardens and rice fields. The children get experience, not only in farming and other useful hand skills, but also in the business acumen needed to turn a profit. All the revenue that is generated by the surplus food that is grown is reinvested in new land or projects or is used to pay educational and other expenses for the children. The home is on its way to not having to accept charity anymore. Surviving families of the children would not think to try to sell them because that would interrupt their valuable education and cut off any future support they would be able to provide.

Such self sustaining humanitarian enterprises are possible throughout the world and can be based an any number of industries, form hand crafts to livestock, and even to services, like garbage disposal. There will always be trash and with the global initiative to reduce pollution, there will be increased demand for recycled goods. Sorting out recyclables takes time and manpower in underdeveloped areas. A garbage sorting facility close to a community could provide employment and excess profit could be reinvested in the community. This is actually being done now in a few towns in Brazil.

The critical factor to consider is what will be sustainably profitable to the whole community. When that is determined, the social business model can be applied and economic security can be won.

However, no measure of economic security for potential victims will help those already enslaved. For this, we will move up the spectrum to explore direct action to free the oppressed.

1 comment:

  1. Dr. Yunus is doing such amazing work and it's amazing to see your friend as an example. There’s a new documentary coming out about him and you should check it out if interested. http://www.tocatchadollar.com

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