An Outside View
How can we expect people with no education to make smart fiscal decisions? Those who are stuck in a cycle of poverty for most of their life are simply not provided with the proper tools to ensure success and stability.
Global poverty has been a massively researched topic for generations and there are millions of sources of different perspectives and ideas that discuss ways to address this issue. One of my favorite viewpoints was found from an article from The Journal of Economic Perspectives. Authors Lucy Page and Rohini Pande discuss how making the right “investments” are the key to long term stability.
Preparation
When we look at the issue of poverty and discuss ways to combat it, the idea of simply giving money to those in need is often the most brought up solution. I view that just giving the poor money without preparation is counterproductive and creates more problems that will eventually need solutions.
When given benefits, a false sense of support can be created for those attempting to leave the poverty cycle. Another problem that arises is the eventual poor fiscal decisions because of lack of education. As Page and Pande wrote, “Perhaps because we typically identify the poor as those living below a certain income or consumption level; providing the poor with resources to exit poverty is often characterized in terms of cash transfers…that is give the poor money and they will stop being poor. But poverty is more than just a lack of money, it requires more than cash.” (Page and Pande, 2018)
In other words, basic cash transfers are not the reason why people are stuck in this cycle of poverty. People are stuck in this cycle of poverty because they are provided with little to no aid in gaining knowledge or financial education. How can we expect these people to grow out of their current situations when we provide them with no room or process for development?
We Must Invest
We must invest resources and time into creating atmospheres where these people can explore their capabilities and reach their potential.
Page and Pande wrote of a term called “invisible infrastructure”. Invisible infrastructure in basic terms is providing those in need with sufficient tools for success such as democratic intuitions, sufficient roads, cell phone towers, schools, health care centers. Many people live in areas with little to no technological development and this results in a significant lack of communication and flow of information. When these institutions ae built, they must be filled with the proper educators that work with care, diligence and preparation. As Page and Pande wrote, “the efficacy of a country’s institutions and physical infrastructure depends on how people within each body choose to allocate resources, implement policies, regulate private sector providers and respond to citizen grievances.” (Page and Pande, 2018)
In other words, the infrastructure will all be for nothing if not filled with the right people. There must be workers who are knowledgeable of the best ways to spend resources, as well as providing source of care and support. Learning must take place for these programs to be successful and I believe direct interaction is surely the most promising road to take.
Reflection
Lucy Page and Rohini Pande hit the nail on the head with their perspective on creating long-term stability. This issue isn’t a one-step problem, it requires an understanding of these individuals for true progress to be made. We must invest in these people to allow them to reach their potential and experience never before seen opportunities.
Citations
Page, L and Pande R. (2018) Ending Global Poverty: Why Money Isn’t Enough. The Journal of Economic Perspectives 32(4), 3–28
