Posts tagged with: poverty

Connecting CommunitiesA recent report by the United Nations states that out of the world’s seven billion people, six billion have a mobile phone, but only 4.5 billion have a modern toilet. In India, there are almost 900 million cell phone users, but nearly 70 percent of the population doesn’t have access to “proper sanitation.” Jan Eliasson, the UN Deputy Secretary General has called this a “‘silent disaster’ that reflects the extreme poverty and huge inequalities in world today.”

Despite the lack of sanitation, most people are able to afford a mobile phone with a wide range available for [$15] or less and the price of calls reducing from [15c] a minute to [3c] a minute in the last decade.

This report focuses on the negative: the lack of sanitation for those in abject poverty, but it fails to note the extraordinary fact that people living in poverty have access to a device that was, until recently, a luxury item for wealthy Americans. Tim Worstall, a contributor on Forbes.com, addresses this report in a recent article:

It’s possible to be a little cynical about this phones versus thrones number though. Actual flush toilets aren’t in fact the problem. What is the provision of water to flush them and a sewage system to flush them into. Both of which are largely government provided. While mobile phone systems are largely private company provided. Whether you want to call it the lust for profit or the greater efficiency of the private sector, it won’t surprise the more right leaning of us that phones do have a greater market reach than toilets.

Andreas Widmer, president of The Carpenter’s Fund in Switzerland, has spoken a great deal about small businesses, aid, and investing in Africa. In an interview with PovertyCure, he explains causes of poverty: (more…)

logo1b.aiThe Hitachi Foundation is accepting applications for its 2013 Yoshiyama Young Entrepreneur Award, which identifies up to five young people striving to build “sustainable businesses” in the United States. Each awardee will receive $40,000 over two years, along with the tools and training designed to put a startup on the path to success. Deadline is March 28.

The Hitachi Foundation says its Yoshiyama Young Entrepreneur Program “identifies and highlights leaders who are using the power of business to fight poverty in the United States.” Those whose entrepreneurial efforts are animated by faith principles are encouraged to apply. Eligible entrepreneurs are those “intending to lift low-wealth people out of poverty in the context of their business.” These, the foundation explained, “could range from creating quality jobs, producing new products and services or devising management strategies that propel the business and low-income people forward.”

Hitachi Foundation will also host up to ten finalists in Washington for a “two-day networking event with peers and field leaders.”

Applicants must have started a business that is now between one and five years old and the entrepreneur must have launched the business before reaching age 30. In addition, the business must be generating revenue for at least the last 12 months. The business can be legally structured as a for-profit or nonprofit enterprise, but must be a revenue-generating model and not rely primarily on grants or donations.

Investors Circle, an early-stage network of “angels, venture capitalists, foundations and family offices” that has invested in 269 enterprises, is collaborating with Hitachi Foundation on the award program.

In 1936, near the end of the Great Depression, Children International launched one of the earliest child sponsorship charities. Today, child sponsorship is one of the most significant forms of foreign aid. It’s estimated that there are over 8 million internationally sponsored children in the world. With the average monthly sponsorship level set at about $30 (not including other gifts sent to sponsored children), the flow of resources from wealthy countries to poor countries from international child sponsorships is about $3.2 billion per year.

child-sponsorshipDespite the substantial amounts of money being funneled through these charities, few empirical studies have been conducted to gauge their effectiveness. But a new peer-reviewed, independent study on the viability of international child sponsorship led by Bruce Wydick, professor of economics and international studies at the University of San Francisco, reveals “large and statistically significant impacts on life outcomes for children enrolled in Compassion International’s Christian child sponsorship program.”

Some of the key findings from the study include:
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In today’s American Spectator, Acton’s Michael Matheson Miller focuses on Pope Francis’ “street smarts“: a man who knows poverty and economics at the most important and basic level.

It’s a counter-intuitive tale of one of Latin America’s most significant bishops living in modest lodgings, cooking his own meals, and riding the crowded public transportation system in Buenos Aires. Even the small but telling gesture of paying his own hotel bill after the Vatican conclave drew media attention.

As a priest and archbishop he went into the poorest parts of Argentina to minister to the people. He said this in a 2008 homily: “Today the place for Christ is in the street… The Lord wants us like Him; with an open heart, roaming the streets of Buenos Aires and carrying his message!”

His vision of engagement with the poor runs deep. Pope Francis has spoken eloquently about the need to treat poor people as “subjects” and not mere “objects” of the state or the economy.

Miller goes on to say that Pope Francis understands and highlights the social aspects of the market, and rejects notions that the poor are somehow “objects” of action, rather than active participants in the economy.

Read “Street Smarts” in American Spectator magazine.

Michael Matheson Miller, Acton’s Director of Media and PovertyCure, joined host Hugh Hewitt on the Hugh Hewitt Show this afternoon to discuss the election of Pope Francis, and how his experiences in Argentina may influence his actions as Pope in addressing issues of poverty. He notes that Pope Francis is not a proponent of Liberation Theology, and quotes the new Pope’s earlier writings:

We cannot truly respond to the challenge of eradicating exclusion and poverty if the poor continue to be objects, as targets of actions by the state and other organizations in a paternalistic and aid based sense, instead of subjects in an environment where the state and society create social conditions that promote and safeguard their rights and allow them to build their own destiny.

Listen to the full interview here:

Evangelical leader Luis Palau discusses his old friend and fellow Argentine native, Pope Francis, in a new interview at Christianity Today. A few excerpts that stood out to me:

He’s a very Bible-centered man, a very Jesus Christ-centered man. He’s more spiritual than he is administrative, although he’s going to have to exercise his administrative skills now! But personally, he is more known for his personal love for Christ. He’s really centered on Jesus and the Gospel, the pure Gospel.

We’ll see what the effects will be for international relationships and openness, because he’s not a manipulator. He’s a straightforward, straight-shooting person. He says what he thinks and he does it sincerely.

Although he’s gentle, he has strong moral convictions and he stands by them even if he has to confront the government. And he’s done it before. With the evangelical community, it was a very big day when we realized that he really was open, that he has great respect for Bible-believing Christians, and that he basically sides with them. … They work together. That takes courage. That takes respect. It takes conviction. So the leaders of the evangelical church in Argentina have a high regard for him, simply because of his personal lifestyle, his respect, his reaching out and spending time with them privately.

On Pope Francis’s concern for the poor and the youth of Argentina:

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Arthur Brooks, president of the American Enterprise Institute, has an op-ed in today’s Wall Street Journal that every conservative should read—and heed:

Conservatives are fighting a losing battle of moral arithmetic. They hand an argument with virtually 100% public support—care for the vulnerable—to progressives, and focus instead on materialistic concerns and minority moral viewpoints.

The irony is maddening. America’s poor people have been saddled with generations of disastrous progressive policy results, from welfare-induced dependency to failing schools that continue to trap millions of children.

Meanwhile, the record of free enterprise in improving the lives of the poor both here and abroad is spectacular. According to Columbia University economist Xavier Sala-i-Martin, the percentage of people in the world living on a dollar a day or less—a traditional poverty measure—has fallen by 80% since 1970. This is the greatest antipoverty achievement in world history. That achievement is not the result of philanthropy or foreign aid. It occurred because billions of souls have been able to pull themselves out of poverty thanks to global free trade, property rights, the rule of law and entrepreneurship.

Some say the solution for conservatives is either to redouble the attacks on big government per se, or give up and try to build a better welfare state. Neither path is correct. Raging against government debt and tax rates that most Americans don’t pay gets conservatives nowhere, and it will always be an exercise in futility to compete with liberals on government spending and transfers.

Instead, the answer is to make improving the lives of vulnerable people the primary focus of authentically conservative policies.

Read more . . .

I have recently accepted the honor of becoming a contributing editor at Ethika Politika, and I begin my contribution in that role today by launching a new channel (=magazine section): Via Vitae, “the way of life.” In my introductory article, “What Hath Athos to Do With New Jersey?” I summarize the goal of Via Vitae as follows:

Via Vitae seeks to explore this connection between the mystical and the mundane, liturgy and public life, the kingdom of God and the common good. While I value technical discussions of public policy and believe that the work of advocating for civil laws that reflect the law of God constitutes a true vocation, I see a lacuna in our discourse when it comes to the habits necessary to enable persons to live morally in the first place, however just or unjust the law itself may be. (more…)

PovertyCure was featured in Forbes Magazine last week. Alex Chafuen, one of Acton’s founding board members, featured PovertyCure in his article on champions of innovation. He writes:

A new multifaceted initiative, called PovertyCure, provides abundant materials and resources for those who want to create lasting solutions to poverty. The program is founded on the conviction that each human person can be a source of great creativity. It highlights the incentives needed to unleash the entrepreneurial spirit that fills the developing world.

Chafuen also calls attention to PovertyCure’s focus on the big picture:

Many intellectual entrepreneurs and some of their donors and “angel investors” tend to be single-product champions. They focus on only one element in the road to reduce poverty, e.g., women rights, property titles, vaccines. This could lead to neglect of the fundamental problems that impede successful outcomes in their area of work… A fruitful dialogue among participants in PovertyCure can increase the chances that poverty or “human flourishing” programs will be structured with the proper incentives.

Instead of focusing on what we can do to solve poverty, the real question is how do people in the developing world create prosperity for their families and communities.

Learn more about PovertyCure, their network of over 180 organizations, and order the new PovertyCure DVD-Series, a 152-minute documentary-style series that challenges conventional thinking and explores the economic and theological foundations of human flourishing.

In the German newsmagazine Spiegel, Kenyan economics expert James Shikwati says that foreign aid to Africa is doing more harm than good:

SPIEGEL: Mr. Shikwati, the G8 summit at Gleneagles is about to beef up the development aid for Africa…

Shikwati: … for God’s sake, please just stop.

SPIEGEL: Stop? The industrialized nations of the West want to eliminate hunger and poverty.

Shikwati: Such intentions have been damaging our continent for the past 40 years. If the industrial nations really want to help the Africans, they should finally terminate this awful aid. The countries that have collected the most development aid are also the ones that are in the worst shape. Despite the billions that have poured in to Africa, the continent remains poor.

SPIEGEL: Do you have an explanation for this paradox?

Shikwati: Huge bureaucracies are financed (with the aid money), corruption and complacency are promoted, Africans are taught to be beggars and not to be independent. In addition, development aid weakens the local markets everywhere and dampens the spirit of entrepreneurship that we so desperately need. As absurd as it may sound: Development aid is one of the reasons for Africa’s problems. If the West were to cancel these payments, normal Africans wouldn’t even notice. Only the functionaries would be hard hit. Which is why they maintain that the world would stop turning without this development aid.

Read more . . .