Poverty Inc.
The documentary “Poverty, Inc.” begins with this quote from Machiavelli, “The reason there will be no change is that the people who can stand to lose from change have all the power, and the people who stand to gain from change have none of the power”. This brings up the fact that poverty, as well as all other global issues, comes down to whose hands the power is in. The documentary claims that the ways in which the rich help the poor are fundamentally broken and need to change.
Definition of Rich
The countries that are so often called poor are rich in many other ways. They may be a reservoir of resources like oil, diamonds, timber, land, or gold. The documentary states that they are simply cut off from global trade. This makes us wonder why countries judge other countries on their “richness” by a definition that only fits their national standard.
A Surplus in the Market
Richer countries dump surpluses of products into poorer countries which in turn destroys the local market by lessening demand. This then increases the dependency on other countries and makes them less self-sufficient and with fewer jobs. The surplus of products that comes over even in the form of charity often puts local producers out of business in this same area. The response should be a change in the way we view charity and foreign aid and less intervention on the part of western countries. This then will create less poverty. This would mean a decrease in help from NGOs. Instead, more companies like Enersa, local businesses that give to their community in the form of products and jobs, will solve the poverty problems. Enersa is a Haitian solar power company that has gotten many citizens from joining gangs all while aiding their country suffering from an energy problem after an earthquake.
Examples
One example of a company that means well with their charity but in turn has negative effects on an impoverished economy is Toms. While donating a pair of shoes with every pair bought was a generous idea, shoemakers in these countries are now out of business and not incentivized to make any product on their own. A commenter in the documentary even states, “saying that he’s going to supply shoes for people for the rest of his life is implying that he would want people to stay without shoes for their life so he can give them shoes”. This emphasizes the image richer countries associate with impoverished people, an image of begging people that need saving. This outlook on certain people as incapable of progress creates a savior mentality that holds back those receiving the charity.
Orphanages
The documentary brings up the startling statistic that 80% of children in Haitian orphanages have at least one living parent. The children were only given away because their parents could not afford to take care of them, and the parents often still come to visit as well. With this being the case, if impoverished countries like Haiti could become self-sufficient, the number of orphaned children would decrease significantly. Giving power to citizens by teaching and giving them opportunities to make income and provide for themselves and their families is the ultimate tool. They can then be connected to the market and indulge in networks and exchanges.
Power
As mentioned earlier, global issues like poverty are furthered by the individuals in power. In Africa, the more foreign aid that goes to the county, the more power their dictators have. Countries cannot develop based on aid; they need the freedom to develop aspects that help them stand on their own. This money that countries like Africa receive in foreign aid cannot use for local products. Their governments love this free money and give up things that support their citizens in order to keep receiving this. Their citizens then have no choice but to take jobs like sub-contracting under European companies and do the work no one wants to do out of their necessity. The foreign aid doesn’t then go to the people that which majority of people think it goes to.
The Ladder to Prosperity
The things that will lead people in poverty to prosper are legal protection from theft and violence, justice in the courts, the ability to get legal title to one’s land, freedom to register and start a business, and links to wider circles of exchange. If we can create incentives for governments to form these links poverty will lessen. This leads us to wonder who benefitted from the current setup of any country’s government.