Three billion people live on less than $2 a day, while over a billion live in desperate poverty (Corbett & Fikkert, When Helping Hurts, 2012). However, according to Haugen and Boutros, authors of The Locust Effect, that statistic concerning global poverty has not significantly changed in thirty years. In the last fifty years, Africa has received $1 trillion in aid; so why is it that income is lower, literacy levels have dropped, and life expectancy has declined since 1980? (Lupton, Toxic Charity, 2011). This data shows the ineffectiveness that charity has had on reducing poverty. Clearly, there is a need to develop a new approach to solving the problem. Although charitable organizations who give money and resources to those in need provide short term relief, charity is not the answer to ending poverty. According to Lupton, charity has contributed to the creation of a permanent underclass, the breakdown of family structures, and the degrading of self-worth. Many nonprofits approach poverty alleviation with their own methods and solutions. They fail to recognize the need for community leaders to be included in identifying the problem and providing solutions (Corbett & Fikkert, 2012). Jonathan Katz, author of The Big Truck That Went By, explained that most of the money that was donated to Haiti after the 2012 earthquake was spent on short term fixes like free food. Yet, the donated food was purchased from corporations in the donators' home countries, in turn, benefitting their industries while competing with the food industries in Haiti. Isobel Coleman in her 2010 article “The Global Glass Ceiling” writes that economic empowerment is the best contribution the developed world can make to decrease poverty and stimulate growth in the developing world. So what is economic empowerment?
Economic empowerment is a movement that strives to enable impoverished individuals to become self-sufficient by using their own skills and resources. By allowing people to become self-sustaining, they can develop a quality of life that suits them. Economic empowerment not only benefits the quality of life of the entrepreneur, but it also improves their mentality and self-esteem.
According to Corbett and Fikkert (2012), material poverty alleviation empowers people to earn the things that they need through their own labor. Examples of different forms of manual labor include the making and selling of food, jewelry, and other hand-crafts. Farmers can also develop marketable skills in the agricultural arena.
Rao (1998), an expert on economic empowerment, found that by using available resources, the poor can manage and develop skills more efficiently. In essence, they are capitalizing on products readily available or services they are familiar with, rather than being dependent on a second party for materials or maintenance. Louis and Klamor, authors of From Aid to Trade, advocated for an opportunity-based economic approach in order to develop a sustainable economy. This strategy encourages entrepreneurs to meet local needs through a business approach. Ultimately, businesses will not only help to resolve community needs but also generate profit for the entrepreneur.
Economic empowerment has also helped to greatly improve the quality of life for women. Coleman (2010) found that where there is economic empowerment, there is a decline in infant mortality and an increase in child health, agricultural productivity, and economic expansion. When young women are economically empowered, they tend to have children when they are older and more capable of providing for them. In addition, Coleman claims companies that embrace female empowerment will see their labor forces become more productive, improve their global supply chain, and expand their customer base. Therefore, economic empowerment breaks the cycle of poverty not only by helping people become self-sufficient but also by helping future generations.
At SEED., economic empowerment is ingrained in our business model. We buy our products from artisans in both local and global communities such as handcrafted art and jewelry. We then in turn sell those products and donate a portion of the proceeds to our program-partners. We believe in supporting already established organizations rather than trying to create our own in order to allow community leaders to develop their own solutions with tools and resources that will empower them. As a result, SEED. will not only support multiple community development projects but will also play a hand in economically empowering hundreds of local artisans.