how can we make sure that the poor make money to improve their livelihood, economic aid is just not enough!?

Question

in underdeveloped countries we have gazillion national and international agencies trying to implement program and projects with a very broad objective of impowering the poor, and eradicating poverty. It is a pity to see many of these so called relief agencies empower their own expatriot program head with astronomical salaries and facilities. Is there a possibility to have a program that can help poor make money for themselves?

Answer 1

Improving health and reducing infant and childhood mortality which decreases the birth rate has substantial effect on improving livelihood, both because it is hard to be productive if you are chronically ill, and the population does not expand faster the the growth rate of the economy. There are tropical deceases which no vaccinations have been developed because the victims of too poor to make them profitable to drug companies. Education aid is also useful in jump starting an economy. Programs that provide micro loans as seed money to start small business have also shown success. Programs that subsidize European and American farmers have the effect of impoverishing farmers in poor countries by keeping the price of their crops low. The focus on Africa where poverty programs have not had much success makes them seem less effective that they are. Many countries in Asia have shown remarkable improvements which was partially due to foreign aid.

Answer 2

Yes, in India, where it started, and in Mexico, where it has spread to, there is a special loan program. In India, it was started by what must be a very enlightened man, who makes the loans person-to-person.

The man uses his own money, and gives the loans on the basis of a woman's signature (even an X, when she is illiterate.) It has a higher re-payment rate than any other "bank" in the world, ever. The women do things like buying hair other women cut off for sale to wig companies, making purses or hand loomed fabric. It's phenomenally successful.

In India, it's for women only. I'm not sure about Mexico, I think there are some loans made to very poor men there. The programs are spreading to small communities, who make loans to their own members, and help the communities succeed. There have been programs on National Geographic Channel and on other channels about this. More new, successful ideas will grow out of this.

It might not make the headlines we are used to seeing, but people are out there making it happen! The world is not that bad a place, just the news is bad because it puts food on the table of the people who work for the news organizations. Lots of people didn't think CNN would work, either.

Answer 3

There are programs that can help the poor to be economically productive and self-reliant. Some examples: Skills training on crafts, trade and cottage industries is a good program that will promote self-employment and small-medium scale businesses for the poor and marginalized members of the community. Technical assistance in formation and operation of cooperatives is another focused and relevant empowerment tool for the small entreprenuers, farmers, fisherfolks, or tradesmen. Micro-lending/financing in agriculture, trade and industry sector for rural communities and blighted urban areas will help in capital formation for poor and low income groups. Government subsidies in education for the poor deserving students will open greater employment opportunities.

Answer 4

perhaps thev best idea is the so- called micro-loan put in practice in Pacistan by the person who has obtain the Economics Nobel of 2006