I was watching a program on CNN that touched on poverty in Africa. A lady being interviewed pointed out how since independence large amounts of Aid money had been put into Africa without any significant results. She said that this approach was thought to help reduced poverty mainly because so many people had mis-understandings on how to reduced poverty but that now more people are begining to see that Aid isn't the best way to alleviate poverty in Africa. Instead she pointed out that trade and investment have been shown to be more effective in relieving poverty in Africa than Aid. This got me thinkg about how poverty should and shouldn't be dealt with here in America and in other countries. It's believed by many that the best way to deal with poverty in a country is to increase welfare(Aid)to the poor. Now if you apply this lady's comments to a country tackling poverty then it may be that investment in poor areas in the form of more job creation could be a more effective approach to dealing with U.S poverty and in other countries more so than welfare(Aid). Isn't it true that most poor areas in America suffer from high unemployment as a result of there being few job opportunities in the area,or the local economy not being very diverse? If that's the case, then isn't a solution then is for the government to promote policies that make it easier to start and build businesses in poverty stricken areas rather than making welfare the primary focus for helping the poor even though it can play a role? I believe that a government provided safety net can be useful but I think they should be viewed as being more short term solutions to poverty because people can't or shouldn't be on welfare for too long a period. The long term solution to alleviating poverty will need to come in the form of investment similar to the kind that has been shown to be effective in reducing African poverty.
What are you calling welfare? what do you define as poverty? How do you compare the economy of some of the poorest countries where welfare is unsustainable - to the worlds strongest economy where welfare is sustainable because it accounts for so little of the economy Also, welfare is based on what a person needs in order to survive - investment is based on whatever the investor believes will make a good return state funded welfare is set at an acceptable minimum whereas investors need not invest at all - also investors seek also to imperialise a culture - no democracy - no investment - If you dont make sanctions against North Korea we dont invest. regardless of what fat imperialist investors may think - some of the world would prefer to starve than accept the demands of the west - that is partly the reason Africa lacks investment. I think you need to think the whole thing through
There are similarities. Both foriegn economic aid and domestic economic aid in the form of welfare are both aimed at alleviating poverty through wealth redistribution and both are funded through taxation. In the case of foriegn economic aid the wealth comes from wealthier donor nations or institutions like the IMF & World banks. In the case of welfare,which could be considered a form of domestic economic aid,it comes from the home country. There are also similarities in the results or effects of both. Both have been associated with not being as effective for reducing poverty as assumed. With foreign econmic aid you have problems with it feeding corrupt leaders who use the aid to fill their pockets. With domestic economic aid(welfare) and government programs there have been issues with those in charge of dispencing this aid benefiting more than the people who the government aid was ment for. Sometimes they're called "poverty Pimps". Also,foriegn economic aid has had the effect of causing those countries or governemnts recieving it not to focus on making changes in economic policies that will develop the country's economy in the long run. Similarly,over focusing on domestic welfare programs have had similar effects because it has caused there to be a de-emphasis on expanding entreprenuership in poor areas that could increase needed job creation. So foriegn economic aid and domestic economic aid in the form of welfare and governemnt programs both share similarities as far as the effects both have had on developing countries and poor areas of America. Believe it or not in America you can find examples of poor communties where Millions of dollars are spent every year. The problem is that those Millions aren't being recycled enough in those communities especially if many of the businesses aren't owned by the people living there. This recycling of these Millions can only happen by increasing entreprenurship in these areas by those living there which will lead to more job creation and wealth building in these communities.
More and more Native Americans are choosing entrepreneurship as a path out of poverty — and casinos aren't part of the mix, Steve Tripoli reports... LINK Listen to the audio on this link. Here's a very good example of this. "Poor" Native Americans on this reservation are spending Millions,but they aren't benefiting from this spending power. The solution being proposed here isn't for more domestic economic aid(welfare)but increasing domestic investment or expanding Native American entreprenurship on the reservation.
But all that is exactly what I said before - the investment will only go in if certain political criteria are met. I dont understand your point are you just advocating the 'fair trade' model of investment ? to be an entrepeneur you gotta be more than poor - you gotta have investment capital I just dont understand what you mean sorry I dont have audio on my computer
Yes the political situation of a country will be taken into account by investors. That was one of the problems with foriegn aid. It was given to African countries for example without regard to the political situation such as recieving countries showing that they were democratic. Keep in mind that trade and investment can be both foriegn and domestic. Domestic investment and trade is probably more important. In order to expand domestic investment governemnts in poor countries will need to make changes in their economic policies especially involving taxation that will make it easier for it's citizens to start and build businesses. It's true that several poor countries might not currently meet the political critieria that would attract more investment but the point is that investment is what is going to reduce poverty in those countries more so than Aid,which again, should also be tied to having a democracy of some sort in order for it to be effective anyway. As far as trade it can be effective in reducing poverty but it will do this better if things such as subsidies of rich nations are removed so I do support the removal of these subsidies thats hurting those countries who want to engage in trade. The point again is that trade is what's needed more than foriegn aid.
I don't remember or know exactly how those on that reservation would raise investment capital but it has been done by various immigrant groups through pooled savings. Here's an example of how Carribbean immgrants have pooled their savings to start and expand their businesses. This could work for those Native Americans. I don't have just the link so I'll paste the whole article. The audio did point out that at least $80 million was spent by Indians on that reservation annually,so there is money there that can be pooled to raise capital. ------------------------------ Franchise Profile Pooled Savings Fuel Jamaican Entrepreneurs By Meera Louis HEMPSTEAD, N.Y. -- When it comes to financial help for his West Indian grocery store, Andrew Morris is a step ahead of most small-scale entrepreneurs. Instead of jumping through bureaucratic hoops for traditional lenders and then paying them interest, he taps into a homegrown cash-flow system to expand his inventory. The system is called "susu" or "partner," and it's an informal rotating-credit arrangement with roots in Caribbean culture. A group gets together to pool its savings, and members can draw funds from the pool as they require them. In a typical susu, 20 or so close family members and friends make a weekly contribution -- known as a "hand" -- of a certain fixed amount to the fund. If each member is contributing $100 a week over 20 weeks, each member is entitled to have a turn, known as a "draw," getting $2,000 during the 20-week period. The money changes hands across kitchen tables and living rooms, with housewives negotiating hands and grandmothers acting as bankers. Those who get their share early receive, in effect, a cash advance against future deposits. Those who draw their funds at the end use the system as a sort of savings program that has the benefit of helping friends and family members. While the Caribbean community in the U.S. has long used susu funds for household purchases, more people now use them the way Mr. Morris has: combined with bank loans or other funding to expand a business and move into more mainstream markets. "It's no longer just a Christmas club," Mr. Morris says. In fact for him, susu funds have become such an integral part of his business that he has lost track of the amount he has tapped for his grocery store. "It's a way of life," he says. Other cultures have also flourished in the U.S. through informal or underground lending systems. Asian Americans, for instance, have long relied on each other as a source of business funds. Such networks help ethnic businesses grow. Karl Rodney, publisher of Carib News, a Caribbean-American newspaper distributed nationally, estimates the number of Caribbean businesses has increased about 15% during the past five years. Of the Caribbean businesses, he believes about 10% have expanded beyond small mom-and-pop operations. Even the biggest banks are recognizing the wealth assembled in the underground susu system. Chase Manhattan began recognizing susu deposits as a measure of creditworthines in the early 1990s. About six years ago, Fleet Boston followed suit. The growth of the Caribbean business community is being noted by mainstream U.S. businesses. The Caribbean American Chamber of Commerce includes 15 of the nation's biggest companies as members. All are eager to tap into the market of about 866,000 Americans of Caribbean descent. When the chamber was organized in 1985, it had just two banks, and now it has nine, says Roy Hastick, president of the nonprofit chamber group based in Brooklyn, N.Y. "We cannot do business as we used to," he adds. "We have to change with the times in terms of doing things much bigger." Mr. Morris's store, Sam's Caribbean Marketplace, is a prime example. The former bike messenger opened it in 1993 to cater to a burgeoning Caribbean community here, about 20 miles from New York City. Today, with revenue topping $1 million -- up sevenfold from 1994 -- the store caters to some 10,000 customers a month of all ethnic groups. Customers drive as long as an hour to sample several dozen types of hot sauce, canned products, curry brands, reggae music and even cookbooks. A lean, soft-spoken man who was born in Jamaica, Mr. Morris attributes his success to the susu. In 1992, armed with a master's degree in business administration from Columbia University and a business plan, he secured a $50,000 loan from European American Bank. But the loan wasn't big enough to allow him to open the store. Rent for the 1,600-square-foot space was $1,800 a month, and he needed cash for inventory, marketing, payroll and licenses. It was for these needs that Mr. Morris dipped into the susu, tapping $15,000 in funds he had amassed in a pool managed by his mother. In 1993, Sam's opened its doors. Since then, Mr. Morris has continued to take part in susu hands to fund capital expenditures that have allowed him to keep pace with his growing sales. In 1994, he used a regular household oven to bake Jamaican meat patties. But as demand increased, the oven, which baked 48 patties an hour, wouldn't do. In 1996, Mr. Morris invested in an industrial-style oven that cranked out 108 patties every half hour. By the end of the year, Mr. Morris had sold 70,000 patties, thanks to the susu. Now with business running relatively smoothly and his bank loan paid off, the start-up funding pressures are off. But Mr. Morris still finds reasons to dip into susu funds. Every year around Easter, Jamaicans enjoy eating cheese sandwiched between slices of a sweet bread. For the three weeks leading up to Easter, Mr. Morris sells about $4,000 worth of the treat. So he dips into susu funds to cover about 60% of his purchases of cheese and buns. Last year, Mr. Morris paid his $3,000 sales-tax tab with susu funds. "It's a cash-flow boon," he says. Mr. Morris also relied on the susu when he expanded his product line, boosting the cost of his inventory to nearly $100,000 from $10,000. The strategy helps him cater to specific tastes, such as those of customer Cecile Wong. Ms. Wong, who is of Jamaican-Chinese descent, eagerly picked up a bottle of Jamaican Chinese soy sauce one recent afternoon. "I find this [store] has the most variety that is Jamaican and Chinese," she says approvingly. Meanwhile, some half-dozen non-Caribbean customers a day stroll in looking for particular jerk sauces for barbecues. Just back from a trip to Jamaica, Mr. Morris has more big plans: importing and distributing coffee, gospel music and other products across the U.S. He is also developing a Web site to sell his products online to far-flung members of the Caribbean community. Of course the susu will come in handy, he says.
Oh jeez I thought you were going to say something interesting. Not so much welfare or investment as punishment for being different. The point being of course that this kind of investment is merely a political trick the catholics used on Africa and South America in the years from about 1860 to 1980- convert to christianity or starve - without, of course the political integrity to actually admit its the rich western capitalist countries that are keping these people poor in the first place In just the same way as the catholics stole all the inca gold and never told them its true value - then proceded to set up aid and charity through christian and political funds back in the 15 and 1600's Hey assholes - do what we want you to do - or starve ! for cryin out loud - youre a neo-con and like I said before - these people have more integrity than that. The Africans know what the game is and would rather starve than suffer more exploitation at the hands of the west. Isnt it bad enough that the west pulled its banks investments out of south Africa and decimated the economy there? sure sounds like a scam to me and the Africans see it like that too
Motion -- where the hell do you think most of the money sent to Africa goes? It goes to the corrupt leaders of these countries, giving them further power to enslave the people. There is no solution for the poor souls of Africa under the current global system, because the sick motherfuckers running the show WANT to keep these people enslaved. None of this has happened by chance. Africa has long been targeted because those at the top truly believe these people are genetically inferior and deserve to be treated like cattle. Egomaniacal do-gooders like Bono are nothing more than globalist tools, knowingly or unknowingly. Stop fucking believing everything CNN tells you. Yeah, I know, I'm just a fucking "conspiracy theorist."
Africans seeing the need for more domestic investment as a way to reduce poverty. Africa's courageous women entrepreneurs Malcolm Ray Published: 26-SEP-05 Johannesburg - With women comprising 52% of Africa’s estimated 805 million people there can be no doubt that the empowerment of women is imperative for the continent’s sustainable growth. Although the research on African women entrepreneurs is limited, anecdotal evidence supports the belief that women who possess economic means invest more in education, their families and communities. And women entrepreneurs typically create linkages with other women-owned firms in both rural and urban areas through formal and informal business networks. In other words, it can be reasonably argued that African women are at the cutting edge of poverty and development and key to any poverty reduction strategy on the continent... Business In Africa Moulding African enterpreneural talent Chief Ade Published: 20-SEP-05 Business development on the continent of Africa will be a key component of growth and development through all the regions. While there has been a surge of entrepreneurial activity on the continent, with increased inter-country and inter-regional trade, there are clear indications that there is much room for entrepreneurial development... Business In Africa
The potential for domestic investment in revitalizing America's inner cities. An Inner-City Renaissance The nation's ghettos are making surprising strides. Will the gains last? BEYOND PHILANTHROPY Political and civic leaders helped lay the groundwork, too. After floundering for decades following the exodus of factories to the suburbs in the 1950s, many cities finally found new economic missions in the 1990s, such as tourism, entertainment, finance, and services. This has helped boost the geographic desirability of inner-city areas. New state and federal policies brought private capital back, too, by putting teeth into anti-redlining laws and by switching housing subsidies from public projects to tax breaks for builders. As a result, neighborhoods like the predominantly African-American Leimert Park in South Central Los Angeles are becoming thriving enclaves. The outcome has been a burst of corporate and entrepreneurial activity that already has done more to transform inner cities than have decades of philanthropy and government programs... Businessweek
