Watch Poverty, Inc.
Over the past month, as the conversation around global aid and USAID has taken center stage, we’ve been frequently asked how we’re impacted and for our opinion. As a subcontractor in a USAID program, we’re among the thousands of organizations impacted, so we’re speaking from insider experience and shared financial pain. As for our thoughts on the current discourse, we can best synthesize our own experience and countless readings from respected minds and institutions with the documentary Poverty, Inc.
Poverty, Inc. delivers a hard-hitting critique of the global aid system, particularly the role of USAID and large NGOs in perpetuating cycles of dependency. Instead of fostering economic growth, foreign aid often undermines local businesses, distorts markets, and creates long-term reliance on handouts. The film exposes how well-intentioned programs—such as food and clothing donations—cripple local industries by flooding markets with free goods, making it nearly impossible for entrepreneurs to compete. Overall, there is strong evidence that aid negatively impacts recipient countries’ GDP, often decreasing the recipient nation’s GDP.1
We learned this firsthand when we tried to scale the tried and true methods of “international development,” which are often contrary to the historical realities of economic development. Standing on the shoulders of those brave enough to confront harsh realities, we pivoted until we uncovered a true market-creating innovation–focusing on privately owned piped water taps.
This is a difficult moment of transition for many, but if real progress is the goal, we must rethink how and to whom aid is delivered. Aid should be a temporary lift in a challenging moment, not a crutch that limits individual and societal potential. Economic freedom, property rights, and entrepreneurship—not endless handouts—are the real solutions to poverty.
Take a look and let us know what you think!
Life-Changing Approach
.gif)
