Overview of Poverty Inc
The 2016 documentary Poverty Inc opened my eyes quite a bit to the reality of poverty around the world. Until viewing the film, I was of the impression that more humanitarian aid to third world countries was the solution to the issues that we see there, but after I now realize that humanitarian aid certainly has its place but when it is taken too far it is actually a detriment to the country that is receiving it. NGOs, nonprofits, social entrepreneurs, and charities riddle countries that recently have gone through natural disasters or are just low on the development scale. Throughout Poverty Inc there is an undertone that these organizations actual effect over time is the creation of a dependence mentality within the people and crushing of local businesses.
The Documentary compared the deemed the current way of dealing with poverty in these developing countries 'contemporary colonialism', a rather apt description in my opinion. Citizens of the country are indebted in feeling - sometimes also in reality monetarily - to these foreign aid organizations in their country.
This notion really checks out though, how can you expect a local small business to compete with products that are given out to people for free or with European and U.S. companies for contracting business for development. The intentions of these relief organizations are made in good light, however the true effects of their actions are entirely overlooked.
One gentleman in the documentary stated something along the lines of "I have never known a country that has developed off of foreign aid... countries become prosperous from trade". We may be making a difference, but we aren't solving a problem, but rather profiting off of the hardships within these countries. New businesses suffocate under the current structure. We are not teaching individuals to fish, we are giving them fish and killing their local fishermen.
When is Foreign Aid Necessary and in What Capacity?
There are sometimes when these global organizations have the duty to step in to give a helping hand to struggling countries. A natural disaster within a poor country is the first circumstance to come to my mind. Disease outbreaks, complete economic collapse, famine, or lack of clean water are some other examples where I think it is entirely appropriate for these third party organizations to intervene. Their goal however should be sustenance and independence of the people. Rather than setting up permanently in a district these organizations should aim to get the people back on their feet, and provide the necessary resources, training, and opportunities to help individuals and the nation develop. I'm not sure if there is really a necessary time for celebrity photo ops in such countries though - its not bad that they help... I just worry their intention is not always for the betterment of the people but rather improvement of their image.
Concluding Remarks
The solution to the poverty crisis around the world lies in investment in communities, it lies in promoting local entrepreneurs, it lies in fostering economic independence and innovation -- these should be the aspirations of governmental organizations going into underdeveloped, impoverished nations. This is the vision for the future that will break the cycle of poverty rather than perpetuating it at the benefit of the rich at the expense of the poor.