Overview of Poverty Inc.
The beginning of the documentary "Poverty Inc." starts with a quote from Niccolo Machiavelli: "the reason there will be no change is because the people who stand to lose from change have all of the power, and the people who stand to gain from change, have none of the power." When applied to the global aid system, we are shown through the rest of the documentary just how much this applies. Poverty Inc. walks us through the amount of damage that non-profit organizations (NGOs) and other donation programs can do to poor countries such as Haiti, Kenya, and Ghana. The documentary explains through interviews by both researchers and locals of the countries how the damage is done, which is that it creates a continuous loop of dependence upon the donations, puts locals out of work, and effectively destroys any economy that the countries could have.
Examples of Economic Destruction
The paternalism that is taking place through these foreign aid systems is shown in different ways throughout the documentary. We're shown several business owners and entrepreneurs from these countries who are put out of business or significantly reduced in business because their competitors offer what they offer for free. Solar panels, eggs, textiles, and more were shown as examples of businesses that were put out because of these donations. The dumping that takes place is shown as unwanted by the locals, as it keeps them in a loop of poverty.
Non-Economic Perspective
To give my two cents, I personally have seen the cycle of poverty that these locals are talking about. On a small scale level, and in the United States, the loop of poverty happens to people every day; and I saw this because of the government programs that were provided to my family. Section 8 housing, food stamps, and electricity and water reduction were all things that seriously kept my family afloat… but it also kept my family poor. My mom stayed stagnant most of my life when it came to earning money. She helped with charities, took care of her kids, and was a dedicated student, but she couldn't be employed without being stripped of the security that was provided to us. Possibly losing those benefits isn't something she could afford, as she had us to worry about. It wasn't until the last couple years when my mom finally got off of food stamps that she was able to work and provide with what she made. Of course, everything becomes economics and this is a part of that, but the perspective of looking at individuals and hearing stories is important, and that is the perspective that the documentary took, so I thought I'd share my part. Another point I am making here by listing off my mom's activities is that she wanted to work. She spent most of her life helping people, and right before her passing, she was finally doing that for a living as a social worker. No one wants to sit at home and do nothing. No one wants handouts their whole lives.
Opinion of Poverty
The perspective of poverty society is given is heavily skewed. Even for the United States, but especially for foreign countries, the first world is fed the idea that poor people are not capable and cannot survive without help. That's just not the case. We were shown just how capable all of these locals are. From welding to jewelry-making to cobbling, these poor people have skills that could help them and have helped to pull them out of poverty. As I said, people want to work, and people want to look at what's in front of them and think "I earned that". It is a completely ridiculous view to think that aid is somehow "saving" these "poor, poor" people. This idea is perpetuated through the media, especially celebrities. Bono was a main talking point when bringing this up in the documentary. He has been a huge pusher of foreign aid throughout the years, and it has ultimately led to the damage of the image of poor counties as well as the economic damage done through the donations that are sometimes a result of the celebrity push.
Reality
What needs to be done, as made clear by the documentary, is that people should be given the opportunity to learn new skills; and they should be given a network of exchange instead of being cut off from the world. Farmers want to export their food as well as sell it to their own community. Many of these "poor" countries are resource rich- all they need is the right circumstances. Job creation and security would make these countries flourish. As said by the documentary, legal protection from theft and violence, justice in the courts, the ability to own the title to one's land, the ability to start a business, and links to wider circles of exchange are what will set up these countries for economic success and overall better well being. All of these things are missing when aid is constantly given, because it gets rid of competition, and makes locals lose their jobs.
So It's All Bad?
Of course, humanitarian aid, especially as a response to emergency disasters, is important; but foreign aid needs to rethink their process. If they keep giving, they'll never stop giving… people want to sustain themselves. Not only is this aid effectively colonizing the countries that it is going to, but the system is only benefiting those who work within the organizations. We should be listening to those who the aid actually affects. Few think that the NGOs and others are out to get them, but it's important to listen. You can't just walk in with a cape and say, "look at all of these nice things I did", when in reality, it's often doing more harm than good. I think this mirrors what I've thought about government programs such as EBT for a while. Poor people need a way out of being poor. Giving people the opportunity to learn new skills and become entrepreneurs is what needs to happen. Aid is good, but it isn't a long-term solution.
