Improving the Quality of Living in the Third World: The Most Important Goal of World Politics

It has been said that the mark of a great nation is how well it takes care of its poorest citizens. I see a lot of truth in that statement, but find it a modest goal given the communications technology and distribution systems of the modern era. Now, it is possible for middle class citizens of developed nations to impact the lives of entrepreneurs in the third world through private microcredit foundations such as www.kiva.org. Private nonprofits have long been at the forefront of improving the standard of living in the most remote corners of the globe, but the fairly new concept of microcredit, small loans to individuals in developing nations, has taken humanitarian support to a new, more personal level that brings out the best in human compassion and responsibility. Improving the standard of living around the world is the single most important aspect of world politics.
Improving living conditions of the worlds poorest by allowing them to pull themselves up by their own bootstraps is in my mind the answer to the massive gap between living conditions in the most developed nations and those of the third world. The website http://www.kiva.org/ is a leading figure in the field of microcredit. The process for lending is fairly simple; a lender browses the site, where he or she can view a list of potential borrowers. Each profile states the amount of the loan requested, what the money will be used for, the type of repayment, and kiva provides a risk assessment of the borrower. The lender can contribute anywhere from $25 or more to a borrower, which the borrower will use to build or expand their business. The remarkable thing about kiva.org and other microcredit sites like it are the high rate of repayment on the loans. The percent of borrowers that default on the loans are so low; lenders consider microcredit a secure investment, allowing the industry to flourish.
Perhaps more important is what the loan does for the borrower, not only financially, but psychologically. Naturally, the fact that they can attain capital at affordable interest rates is a big appeal; as is the financial security attained through the growth of their business; but this in my opinion is not at the heart of the matter. They gain a sense of self-worth that I feel leads to the high rate of successful repayment from kiva borrowers. They understand as well as anyone that a loan is a calculated risk, and that the lenders have put their faith and part of their livelihoods into seeing them succeed. This sense of responsibility has enabled borrowers not only to successful repay their loans, but has had a snowball effect on their communities. The newfound prosperity of local business stimulates local economies and provides jobs and community improvements, improving the community’s quality of life.
The most important element of world politics is how to bridge the gap between living conditions in the world’s wealthiest and poorest nations. I believe small loans, not charity, is the answer. Microloans build trust between diverse peoples and allow for economic development around the globe. Currently, microcredit is a private enterprise, but I believe if done correctly, governments can make a tremendous impact in the lives of those in developing nations. In the past, the problem with humanitarian aid in improving living conditions is that it was administered from one government to another. Corrupt officials skimmed money intended for medical supplies, bureaucracy allowed food aid to rot in warehouses, and the third world has suffered despite tremendous amounts of money devoted to aiding and improving life in their countries. Governments of wealthy nations must not content themselves to blindly throw money at the world’s problems; it must deal through the individual borrowers directly. Borrowers should go through an application process, similar to applications for visas, green cards, etc. The government should hire many new State Department employees to assess the risk for the prospective loans and determine if the potential borrower is eligible for the loan. In the case of the United States, it can greatly improve relations between people and nations. People around the world know the United States is rich and powerful, but how many consider the United States trustworthy or compassionate? I believe it is in the best interest of this nation to invest in individuals in developing regions. I think few people would consider the quality of life in Sub-Saharan Africa superior to that of the United States and western Europe, but I hope that through a little money and a little faith, we can enable people around the world to live with dignity and comfort.