Discussion Paper: Poverty Inc.

Poverty seems to be a global problem that ceases to find a solution through what seems to be endless amounts of trials and tribulations. As a human race, we have put a man on the moon, cloned species and even saved billions of lives through new medicine, but we have failed to create comfort and leisure for everyone on earth. How have we not solved a problem where we annually fund millions of dollars to defeat poverty and leave it as something of the past? It is an overall construct between what we feel is the right thing to do and what is the most beneficial for the cause at stake. It is a societal concept that we need to understand as a productive plan to treat these third world countries as something to build up from the ground instead of just handing out resources. The movie stated this in a concise way that we have a heart for the poor but we need a mind for the poor.
The Poverty Industry has always done a great job of creating awareness and raising money, but they have lacked to try and adapt themselves over time to bring the most beneficial results to the table. The largest problem that countries are dealing with is the long term effects on society the poverty industry has when its main goal is to provide free resources to the public. In hindsight, this seems like a blessing that these nations in poverty are finally getting things they desperately need. There is nothing wrong with the principle of giving to the ones in need at all. The problem that has been identified is the side effects of this social engineering. To show the effects let us talk about the topic of free food in countries. It is obvious that some families may be malnurtured and in need of food desperately. As humans in our society, our reaction is to give and supply their demands ethically. What we do not incorporate in this idea is that the entrepreneurs in the area who already work this job as a way of life (farmers). We understand in economics that when supply is ramped up, the demand lowers. The local farmers could have a whole year's yield of crops that they cannot sell because of the free food being offered instead. How can this hold a positive benefit in the long term if it ruins the local farmers industry and he is forced to move to urban areas or slums to survive? These are the social dilemmas that are created through simple hindsight generosity.
So how do we combat this ineffective use of philanthropy? The answer is a rebuilding of society and their goals. The money should be well spent in local SMEs that will provide the social construct with jobs and valuable goods. SMEs are small and medium-sized enterprises that are not prevalent in these countries like they are in the United States. The United States thrives on the prosperity of the middle class and it eventually leads to society’s satisfaction. These countries rarely get any sort of benefits from their political system unless they are privileged individuals with connections. If more entrepreneurs in these areas were able to operate efficiently, it would benefit the locals. These would introduce new jobs that can provide a better state of living for parents and their children. Children’s suffering is a terrible issue that the poverty industry attempts to help often. However, if the parents had more job optionality, they could obtain a job to provide food and safety for these kids to eventually help them gain an education. Then these generations will be able to provide new ideas and innovation to help create markets. The middle class creates prosperity for a society and contributes to the overall well being of people. These SMEs can produce internet, banks and educational systems that will provide value while creating jobs to produce overall wealth in their society. The economy is in a position of isolation that is disconnected from global trade. A societal change needs to take place to encourage entrepreneurs to take risks and better others while the political system also supports their cause. Subsidies in these countries only temporarily solve these terrible problems. They need to have the entrepreneurial advantage of creating better well being for their communities.