OR How to eliminate poverty without forced taxation (which hasn’t eliminated it anyway).
Here’s a cool fact: we now have evidence for the best way to reduce poverty in the world.
The journal Science has done a rigorous meta-analysis of different types of charities and concluded that the scientific evidence is statistically significant and we can eliminate poverty without forced taxation. Here is the pdf without the whole needing to login thing: (Source) Also, here’s a simpler article explaining the study in case you’re not interested in the jargon: (Source)
Cash, livestock, and training.
That’s it. 3 things.
Now let’s delve into what the heck that means.
People in 6 different countries were each given a cash grant of $150. That’s it, $150. 2 years later, households doing the program now had a total of $202, or the equivalent in purchasing power of $500.
How did they do that?
The subjects were given a choice between sheep, goats, chicken, cattle, etc. A market analyst would sometimes help them make the decision as to which livestock to choose. Which leads me to the training part.
The training provided about livestock included: how to manage a business with their livestock, including feeding, how to rear them, vaccines, and treatment of diseases.
Training also included: health education in nutrition, hygiene, clean water, psychosocial counseling, prenatal health, HIV prevention and medicine; traditional and financial education such as investment and savings; emotional support; and staff supervision for running their business.
What doesn’t work
The study found that microloans don’t increase quality of life or incomes significantly, because the people getting the loans cannot afford to pay them back. Especially at the very high interest rates, microcredit lending charities have to charge to stay open. These programs usually take 18 years to break even. (Source)
Just donated livestock alone was not enough to lift people out of poverty alone.
Just cash while a short term solution, it did not help long term.
Services alone was not efficient enough as well.
Most charities do not pass the cost-benefit analysis test. Most charities are costly to run and require high amounts of fundraising money to operate. Very often, it costs more to operate than the benefit the charity gives to others.
What am I supposed to do? How could someone like me help with extreme poverty in the world?
I did an exhaustive search of the best charities that do the cash, livestock, and training programs. The best rated one I found that had the best benefits was easily FXB International.
And here is why I like them so much:
- They only help the poorest of poor families in the world.
- Their model was developed with input by Harvard University experts.
- Their program is based on eliminating the five drivers of poverty: nutrition, health, education, housing, and income.
- They’ve already lifted 83,500 people out of poverty; the size of small city.
- They have a proven track record that 86% of the people they help STAY out of poverty 4 years later.
- They’ve been around for 27 years.
- They have great transparency for where their money goes.
- Only 12% of the money goes to overhead. That means for every $1 you donate, .88 cents goes to the actual person you’re helping.
- It only costs $140 per year to help lift one person out of poverty, for a 3 year program.
So, if you have $140 lying around that you weren’t going to spend in a better place. Here is their donation page: https://fxb.org/donate/