Could it be possible to eradicate abject poverty in one lifetime? Ever since it was first asked, the question has seemed an improbable wish – a salve for the heart, untenable to the mind. But today, the answer is as clear as it is imperative: Yes.
The idea that every living person can have the basics essential to human survival – and from there, begin to climb the ladder of economic development – is a prospect within reach. It does not require a master plan that solves all the world’s problems. It does demand that wealthy nations change their approach in ways both subtle and significant.
Part I – A first step for the global poor – shatter six myths
Part II – Why so much aid for the poor has made so little difference
Part III – What it takes to open a door for the poor
Part IV – The risks of fighting poverty too well
Part V – Practical steps to end poverty
The real work of lifting the last billion out of poverty, the experienced and the expert will tell you, happens country by country, village by village: Digging wells, delivering bed nets, building schools. Faced with this reality, the greatest asset anyone from a wealthy nation might bring to the challenge of eradicating extreme poverty is a healthy balance of audacity and humility.
1. Change from within must be driven by brave people in the country, to assure the relevance, acceptance, and success of any assistance or reform.
Governments that support transparency, audits, strong judicial systems, a free press, and a professional civil service deserve direct support. For those that don’t, ownership by civil society is critical. Without it, aid transfers to the worst governments shield the inept, enrich the corrupt, and entrench the brutal. A jaw-dropping 40 percent of weapons budgets in Africa are inadvertently financed by foreign aid. In the worst cases, the West needs to listen, think, and act more locally, getting more help directly to the people who need it, rather than through government-to-government transfers.
2. Property rights create jobs and self-sufficiency.
Westerners can secure loans with land, buildings, and other assets to start businesses and prosper. The last billion can’t, which is unacceptable. The world’s poor are sitting on untapped assets of $9.3 trillion, according to economist Hernando de Soto. That’s 40 times the foreign aid received throughout the world since 1945. Setting up property systems to support enterprise is something the West learned to do 200 years ago, and must learn to teach.
3. Trade beats aid. . .
4. Assessment and accountability . . . report real results.
5. Military Intervention!??. . .