As I was watching Poverty, Inc, one of the lines that particularly stood out to me described how it is easier to have a heart for the poor than it is to have a mind for the poor. This unveils the negative consequences that permanent foreign aid has on those living in extreme poverty. For example, Haiti is suffering consequences from foreign aid that has forced most of its population into slums and made it impossible for them to produce their own food. The average Haitian used to consume rice approximately 3 times per week, but that number has been bumped up to several times per day because of US intervention. The United States subsidized rice production which created an increase in supply without an increase in demand. This allowed the US government to donate free rice to Haiti which forced farmers out of business and crowded people into cities that happen to be located along fault lines. Donating food to Haiti destroyed their local economies, forced the population into unsafe living conditions, and increased their dependence on foreign aid.
In addition, Haiti has seen a surge in foreign aid due to earthquakes, but the problem with the aid is that it has become permanent. One of the sad stories presented in this film was how donations of solar panels were killing Haiti's solar panel industry, which was employing people and allowing Haitians to put their children through school. The people of Haiti do not just want to survive, they want to improve their lives and the lives of their offspring. The film claims that people do not want to beg for the rest of their lives, they want access to resources to help themselves without being trampled by foreign aid. The film commemorates the heart of those that wish to help the poor, but they make sure to point out that the current system does not help, and in many cases actually hurts the poor.
With this in mind, there are many ways to help the people living in extreme poverty. First of all, teaching individuals how to start their own business or providing them with work can be life-changing. For example, the mother in the picture above felt pressured to take her children to an orphanage but was provided with an opportunity to work by creating necklaces. By selling just 200 necklaces, she was able to purchase a home for her and her children and has tremendously improved their quality of life. In addition, the firm that she works for claims that they are able to provide jobs to hundreds of people and help between 750 and 2,000 children. In contrast, an orphanage costs about $20,000 per month and can only help around 100 children. It is abundantly clear that providing job opportunities is way more beneficial than orphanages or other forms of aid because it helps more people, is more sustainable, and keeps children with their parents.
Another area that the film discusses is the idea that governments and charity organizations actually benefit from people being poor. Nonprofits take the donations that people give to help those in need and give free items to those in poverty, but they are also making a lot of money off of "helping" those in need. This appears to lead to a constant loop of dependence because the nonprofits and government organizations do just enough so that the people will always need their help. The goal may be to provide aid, but they do not appear to have a goal of eradicating the need for aid. The beggining of this film sums this up by stating that those in power have the most to lose from change while those without power have the most to gain from change. Essentially, charity organizations would not be able to profit off of poverty if they eradicated it.
In conclsuion, I felt that this film did a fantastic job of exposing the lies of poverty. Poor people are not stupid or helpless, they just need access to resources such as free trade and capital to start successful businesses without being put out of business by foreign aid. My hope is that Poverty, Inc. is able to inspire people to make real changes that actually benefit people by allowing them to help themselves instead of forcing them to become dependent on charity to survive. Foreign aid will never cure poverty until those with power decide to help individials help themselves.