“Nobody wants their child to be a charity case”
On Tuesday, the Department of History and Political Science co-hosted a lecture with American Enterprise Institute (AEI) entitled “Created to Flourish.” The event was presented by Peter Greer and Phil Smith; it was inspired by the book they wrote of the same name. The lecture was sponsored by AEI and the Association for the Study of Free Institutions.
The lecture focused on Greer and Smith’s work regarding poverty and business entrepreneurship with a microfinances approach. Greer is the president and CEO of Hope International, a faith-based nonprofit aimed at fighting global poverty. According to Greer, the faith-based communal aspect of poverty and business is vital in determining a person’s growth.
According to Greer and Smith, the traditional ways that the Christian church has dealt with poverty has not worked well for people, despite being well-intentioned. Greer asked the audience to suggest a few ways people could help people suffering with poverty in third-world countries.
The audience gave examples including building a well or a house and donating lots of stuff, which Greer explained was a common type of response from Christians. The desire to give to those in need, he said, is a generous and compassionate one; however, it presents several issues as well.
“In my experience, there is an underlying belief that some people don’t have what it takes,” Greer said. “There is an arrogance that says, ‘Let us do it for you because you couldn’t possibly do it on your own.’”
Greer showed a powerpoint with the terminology often used to describe people who are struggling to earn income. Some of the terms shown were “the poor,” “the needy,” “the homeless” and “the underprivileged.” Greer said these common terms are often used without thought, but can have a lasting impact on a person’s self-worth, leaving them feeling invisible and unheard.
“All of these words say, ‘This is who you are,’” Greer said. “That only allows the chains of poverty to wrap more tightly around an individual while allowing us to have an air of superiority that ensures long-term systemic change never happens.”
Greer said one way that people can help those in poverty without ostracizing them is by helping them grow their own businesses.
“Nobody wants their child to be a charity case when they can help them themselves,” Greer said.
Smith, the former CEO and chairman of the Prize Energy Corp. and Tide West Oil Company, spoke next, focusing more on analytics and data research. According to Smith, people in poverty know what works best for them.
Smith explained by using microfinances and microdevelopment in places of immense poverty, people will be able to earn their own money, help their community grow and sustain the positive changes these elements produce. This, he said, is in contrast to hand-outs and donations people usually lean towards, which do not provide a sustainable change and is not helpful in long-term poverty relief.
The two men pointed to Hope International as a good example of what microfinance can look like in third world countries. By loaning members of the community money, those people are able to start their careers, which results in a chain reaction throughout the community where several people have jobs.
“As they establish their credit and their reputation, they’re able to get larger loans,” Smith said. “It works. It makes sense.”
Greer said although many people in poverty-stricken communities have good ideas for business ventures, they do not always have the means to turn their goals into a reality.
“I never realized [before] that for many individuals, capital is the missing ingredient,” Greer said. “I love that we can be investors and invest in people and dreams.”
The lecture was followed by a questions and answers section. One audience member asked how these principles could be applied to poverty in America. Greer said the same principles that apply to places like Zimbabwe and Rwanda can also be applied in the U.S., but people in America are at an advantage because there are more jobs in the U.S. than in many other countries.
Maya Maley, chair of AEI Executive Council, gave her perspective on the event.
“When we look at the story of Genesis, God created Adam and Eve to produce and be co-creators with Him in the garden,” Maley said. “So when we look to that, we will hopefully look to our economic foundations and systems around the world … Do those systems objectively allow humans to create? Do they give them the opportunities to provide for their families? And if the answer is ‘no,’ then we have to reconsider that and support good ventures around the world.”