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Start a Business, Reduce Poverty

A plan to help reduce poverty in the world was talked about and endorsed at last week's summit of the Group of Eight in Sea Island, Ga. The plan is simple, for poor people to succeed, let them start small businesses and then let them evolve over time. Full story here.

The basic thesis is that in developing countries the removal of red tape and other obstacles to private initiative and entrepreneurship has great potential to help speed up economic growth and in turn reduce poverty. Gees, I wonder what the NDP would think of that?

That's a novel idea, let people help themselves, give them the incentive to make their own lives better. Sounds like its worth a try to me. Seeing as for decades richer nations have been pouring foreign aid into poor nation with not all that much success, seeing as half of the world's population still lives in poverty. Almost 3 billion people make $2 per day or less. And that $2 is measured in a way that takes account of lower living costs in poor countries.

Of course this is not the only step that is needed to end poverty but it is essential that people are not depended on foreign aid or handouts, its helpful to start with, but for the long term success of people, they themselves must have a means to continue improving their living conditions.

Starting small businesses, along with free trade will bring much needed capital to developing nations. William Cline, a senior fellow at both the Center for Global Development and the Institute for International Economics in Washington calculates that global free enterprise would add $200 billion per year to developing countries, pretty impressive numbers done you think.

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