Posts Tagged ‘Economic Development’

Courage as a Disciple

Friday, November 13th, 2009

Nowhere did Jesus demand His followers to show great courage. Nowhere did He say, “Never compromise on your values.” He didn’t need to! His example was enough.

In John chapter 2 Our Lord stood against all the Jewish leaders of His day because they had made a place of worship into a trading house. He chased them out with whips and overturned their tables. He castigated them for their wicked practices.

The church needs disciples that will courageously give direction. We need disciples who know and will tell the truth. We do not need to be told our duties, we need the Christ like courage to do what we already know we should do.

Discipleship is a battle, and the fight requires courage.  Having courage doesn’t mean that you will never fear or tremble. Having courage means that you will do what is right, regardless of the consequences.

Martin Luther, the 16th century reformer, was a true disciple of courage. He defied the church of his day. In 1521 he appeared before the German Diet  in the city of Worms; though promised safe escort, he knew he risked his life by going. The same promise had been given to John Hus a century before, and they had burned him at the stake. Church leaders had promised Luther forgiveness if he would repent of his “errors” and return to “true faith”. Luther knew this promise had little value since they considered promises to heretics as nonbinding. He also knew the history of the two previous centuries, when thousands of Christians underwent torture, sometimes death, during the infamous Spanish Inquisition.

Luther arrived safely, but the court allowed him no opportunity to defend his beliefs. Instead he was presented with a list of his “errors”.  Knowing that the court would decide whether he lived or died,  Luther said the following:

Unless I am convicted of error by the testimony of Scripture (since I put no trust in the   unsupported authority of Pope or of councils, since it is plain that they have often erred and often contradicted themselves), by manifest reasoning I stand convicted by the Scriptures to which I have appealed, I cannot and will no recant anything, for to act against our conscience is neither safe for us, nor open to us. On this I take my stand. I can do no other. God help me. Amen.

Through the centuries our disciples have made their stands. They have stood for truth integrity, and righteousness, no matter what their field of labor. God has promised that He will honor those who honor Him.

(1 Samuel 2:30)

An Apology for Economic Development

Monday, March 10th, 2008

Of the very few references in Jesus’ teachings to a Day of Judgment, surely the most notable is described in Matthew 25: 31ff.  In that scene, the sheep (the righteous) are separated from the goats (the sinful) and God explains his judgment with the well-known commendation of the righteous: “For I was hungry, and you gave me something to eat . . . thirsty and you gave me something to drink . . . a stranger and you welcomed me . . . naked and you clothed me . . . sick and you cared for me . . . in prison and you visited me.”  The sinful were condemned for neglecting these acts.  Certainly the most striking point is that eternal judgment hinges how we behave toward those who exist at the margins of society, those generally described as “the poor.”

Someone might protest that this necessitates “works righteousness,” but John ascribes our involvement or neglect to its foundation: one’s love for God: “Whoever has earthly goods and sees his brother in need but doesn’t have compassion on him, how can the love of God be in him?”  My children, let us love, not just in word, but in deed and in truth.”  I John 3:17-18

Unlike the practice of sharing within the Jerusalem church described in Acts 2 or the collection for the church in Jerusalem (e.g., I Corinthians 16), there are simply no models of economic development programs in scripture.  Likewise, there are no specific models of medical mission efforts, but we understand how, teamed with an evangelistic focus, they fulfill the second-greatest commission to “love your neighbor as yourself.”

An aspect of most biblical models of Christian economic assistance is the focus on distribution (or allocation) rather than production.  It is the role of an economic system to allocate resources among producers and consumers in order to accomplish the goals of the society.  A system of distribution that ignores its effect on production may end up producing more people in need, or at least people who appear to be in need.  Even Christian relief ministries face the dilemma posed by the requirement to be good stewards of God’s resources on one hand while observing Jesus’ command to “give to whoever asks you” (Matt. 5:42) on the other.

There are numerous explicit and implied encouragements to industriousness and diligent work (e.g., the virtuous woman, the example of the ant, the parable of the talents), but none of these carries the weight of a “commission” to go and teach the gospel to unbelievers.  In addition, business and money lending suffer from a poor reputation.  Some people will sincerely question whether the church ought to be engaged in the business of consulting and money lending.

Christian mission efforts have characteristically emphasized evangelistic efforts to the exclusion of social or economic programs.  The reasons for this are several:

With limited resources including money, personnel, and time, efforts have focused on what is considered by evangelicals to be the foremost task of the Christian church-to seek and save the lost.  Given limited resources, funds diverted to economic programs reduce funds available for more direct evangelistic efforts.

Related to this is the deeper question of whether Christians ought to be very concerned about physical welfare. Jesus’ ministry did not seem to emphasize physical wellbeing, including economic hardship or political oppression.  Instead, he encouraged followers to depend on God’s loving care for their physical needs, and charged that the real problems in life are not physical but spiritual ones.

Third, given this background, the physical world will pass away while the soul is immortal.  Why, then, should resources be expended on saving the body, which will eventually die, when they could be used to save the eternal soul?  As evidence of this perspective, many are likely aware of economic relief efforts (including church benevolence programs) that have been pitched on the basis of ultimate evangelistic potential.  Others of us are aware of programs that have been justified or questioned on whether they produced evangelistic opportunities or conversions.

There are a number of potential problems that could result from offering business counseling or financing services, particularly in making grants or loans.  First, how are the funds to be allocated?  If loans are made available first to Christians, it could provide perverse  incentive to convert.  Assuming the lending process would involve an analysis of the borrower and the proposed investment, there would likely be some proposals that are rejected, resulting in hard feelings that might become obstacles to evangelistic efforts.

The intertwining of commercial and personal (and in this case, spiritual) relationships creates problems in our own society, where the nature of commercial relationships (e.g., borrower and lender, buyer and seller) is better understood.  In regard to loans, we recognize that the typical borrower/lender relationship is characterized by some degree of conflict.  That conflict could compromise the congeniality of the relationship between missionaries and locals that could undermine the spiritual aims of the mission.  Recognizing this danger, and wishing to focus on spiritual relationships rather than commercial ones, some organizations choose to provide grants rather than loans.  Even so, assuming individuals must qualify for the grants, some will certainly fail to qualify and there will be disappointment.

Many Christians are uncomfortable with capitalism.  They appreciate the benefits, but wonder at what cost these benefits are obtained.  They are concerned about a system which, as they see it, is fueled by greed and which thrives by creating desires for products that people really don’t need.  A critique of capitalism is beyond the scope of this paper, but it is sufficient here to say that the thinking Christian cannot simply regard capitalism as “God’s system,” nor ignore its success in producing benefits.  It is a system that responds to the desires of the market, and its results will reflect the sanctity or sinfulness of the market participants.  Capitalism is, like each of us, in need of redemption.  The challenges to advocating this controversial system are one aspect of the dilemma of accepting the task of economic as well as spiritual mission.

Aside from the specific concerns about capitalism, some Christians are concerned about exporting American consumerist culture and “defiling” native economic arrangements that are attractive in social terms yet not conducive to economic progress. How will the missionaries handle native customs or taboos that are socially beneficial in some respects but which may retard or prevent economic development?  Two examples may be helpful.  One African tribe follows the custom of drawing lots each year to determine which plot of tribal land each family will farm for their own purposes.  The system is very fair since each family has an equal chance of obtaining the most productive land.  However, this system fails to recognize that the system discourages anyone from looking to the long-term good of the land.  Why would a farmer  let a plot lie fallow for a year or spend money to enrich that plot if the benefits were to go to whomever by chance farmed that land the following year?  Another example comes from Latin culture, which places a high priority on the closeness and support of the family.  An accompanying feature, however, is suspicion of those outside the family.  The closeness of Latino family ties tends to work against the development of strong relationships in the larger community, including business relationships.

Although not appreciated by many, free enterprise does not thrive in an environment of heavy-handed government intervention, trade protectionism, and low regard for work or private property rights, among other things.  For extensive economic development to occur via free markets, stable political systems are necessary.  However, even within difficult circumstances, economic mission initiatives are creating what one organization calls “islands of integrity.”  In these areas, sound Christian-based business principles are being taught and implemented and families are being extracted from poverty one by one.

While there is no explicit scriptural example of economic missions, there are a number of principles that apply.  Mountain Movers is committed to being biblical as we help people out of love, and to respect the native culture.

In justifying economic initiatives, the arguments most compelling to me come from the Golden Rule and the Protestant Reformation.  The Golden Rule compels me to desire for others those things that I rightly desire for myself.  That is, I personally desire the benefits of a thriving economy with its higher standard of living.  I therefore wish them for others.  Second, a holistic view of God’s reign as reflected in Reformation theology is that there is no realm of life outside God’s oversight.  All of life is sacred, including commercial activities.  As such, all activities should be conducted as if done in the service of God.  A view of God’s work consistent with this realization does not allow stark lines between evangelistic efforts, economic relief efforts, and economic development efforts.  They are all done to the glory of God in order to bring people to come to know Him and to serve him.

In a practical light, combining personal and commercial relationships, particularly through micro-loan programs, does propose hazards.  Great care must be taken that evangelistic efforts are not undermined by hard feelings related to economic initiatives.  One solution would be to have the economic programs administered by an organization separate from the mission, or to separate duties so that those making the grant or loan decisions are not the same as those doing the primary evangelistic work.

Despite the “dog-eat-dog” reputation of commercial relationships under capitalism, close consideration  reveals that success in free markets requires a great deal of concern for the needs of customers, suppliers, employees, and so on, since all associations are voluntary.

Economic Development Considerations

Tuesday, January 15th, 2008

MICRO-ENTERPRISE Training by Wayne Hamit

1. The ultimate goals in reduction of economic poverty:

a. capitalize on multifaceted survival strategies of low-income persons (the target group) (this is linked to social situation of target population)

b. increase in net worth of participating individuals (as an index of effectiveness of input usage and program impact)

c. increase in locally-owned/managed capital for local re-investment and diversification of economically viable investments (key to poverty reduction is accrual of wealth, i.e., growing capital, to reinvest in local economic development)

2. Microenterprise programs

a. increase availability of capital for local investment (access to capital is a primary input, but not the only one in successful programs: training in small business development and providing financial services for previously “left out” persons is an equally important primary input)

i. “rate of return” on investments is the driver;

ii. they attract additional capital (mobilizing local capital is an important outcome)

iii. Provide local investment opportunities to non-entrepreneurs (only 10-20% of individuals in any given target population will be entrepreneurs) i.e. people can invest in a capital fund and get dividends – and may not be small business owners themselves

b. increase local management skills for successful financial management, by providing a framework for local people to enact significant and improved/enriched roles in socio-economic development;

c. increase demand/attention for non-financial inputs to ensure business success (access to capital must be linked to “how to plan” for successful businesses

d. attract economic growth to an area nothing stimulates economic development better than an atmosphere where small and micro-businesses are developing.

LET ME ILLUSTRATE with an example from work with rural women in a low-income area about 100 km from a capital city:

Background: Collapse of agrarian economy due to government changes in supporting animal feed prices. No other options for wage labor, and no other “apparent” skills…

LESSON #1: DO YOUR SOCIAL HOMEWORK. Assume that there are REASONS than can be discovered that have brought about economic poverty.

Assume that the history of the target people must be learned and understood in order to mobilize their efforts/strengths to overcome lack of economic opportunity. Assume that local people can provide the best information about their situation and can give valuable guidance for solution pathways.

More background: Other organizations had tried to provide interest-free loans and grants. This served to increase the indebtedness of the poor, who had already been indebted to relatives to make up income shortfalls.

LESSON #2: People will provide information and insight into what has not worked to assist them, which is valuable to avoid reinventing the (often unsuccessful) wheel…

First action: We discussed with women their desires: what they wanted and then we provided them with interview tools, evaluative techniques, and analysis frameworks to assess what they were willing to undertake; and then we discussed the structure of how capital would be managed and how the proposed business ideas could succeed.

Next action: We had them do a market assessment, prefeasibility studies, and after discarding lots of business ideas, they did feasibility studies on the surviving ideas. Lots of training here.

And lots of involvement of government and non-government agencies as helpers to the process. We wanted lots of people and organizations to become stakeholders in the success of this venture.

Next action: Implemented the organization to manage the capital; and the business structure to turn the invested capital into a process to produce a product. The women (did I mention that they were mostly widows and illiterate) had discovered that farmers in their region travelled 100km or more to buy seedlings for planting. They decided to provide seedlings as their business. They had some parallel skills that they could develop because they had been small-holding farmers, etc.

The short story (of a long 3 year venture) is that the women have established a successful seeding business. They also bought and farmed additional land to sell vegetables locally, and they attracted the attention of local candidates for election who provided them with cinder blocks to build a one-room “office” for their business beside their greenhouses. The initial capital has been repaid (with interest) into a fund for business development, for new business establishment (for other women not involved in the first business) and they are asked by the local governor to attend district meetings to present development priorities, etc.

The keys were;

Equitability: they got something they (not bureaucrats or outside experts or donors) wanted

Sustainability: Their continuing efforts produced continuing benefits to them and to their community Managerial skills: they managed a resource (capital fund) in a wise way that resulted in more capital being available for more people to participate in economic and social improvements.

Of course, they also benefited personally: they have income, dividends from the company they jointly own and are employed by, and they have increased social status from which to make their opinions known.

And before this, they were illiterate women who needed their husband’s permission to visit their neighbor.

The greatest threat to successful micro-enterprise programs comes from the micro-enterprise (donor) agency itself. Most micro-enterprise agencies hold key decision-making roles for themselves, rather than incorporating local people (especially those who have made a success with their loans) in the target population into the primary decision-making entity. A good model for capital management and microenterprise stimulation is the credit-union model rather than the banking approach.