Don't give the fish to a man.
Photo by Zab Consulting on Unsplash

Don't give the fish to a man.

"If you give a man a fish, you feed him for a day. If you teach a man to fish, you feed him for a lifetime." This old proverb from an unknown author applies to many current debates about economic development.

For many years, economic inequality has been a concern for several countries and global institutions. The gap in the income access of the people is a problematic situation that many experts and researchers have tried to solve without success.

Globalization and technological changes increase this gap, allowing some people to increase their income and reduce others' possibility to change their social situation. The technology brings new opportunities but is apparently available just for some. 

One position to solve this is income redistribution. Some believe that redistributing the higher income will lower poverty by reducing inequality if it is done correctly. This assumption is based on the increasing income of just a few people in the world. It sounds like an easy exit from a major problem, but it is not as simple. Redistributing the income is a short answer without a solid base for believing it could be sustainable over time. In addition, the effects on people who receive payment without deserving could create new social problems. But it may not accelerate growth significantly, except perhaps by reducing social tensions arising from inequality and allowing poor people to devote more resources to human and physical asset accumulation.

I the other hand, directly investing in opportunities for poor people is essential. Suppose the initiatives and efforts are focused on helping people develop themselves. In that case, people can take those new opportunities, increase their income by themselves and make a sustainable model. 

The same globalization and technological progress that increases inequality also bring new opportunities. The democratization of knowledge can help connect the latest opportunities with those who need to improve their capabilities. 

Education and training improve people's lives, starting with better jobs, better income, and access to health care, credit, water, energy, transportation, housing, entertainment, and other benefits. 

In addition, the people development programs can create social mobility; not only will the people be helped, but the efforts could also impact future generations and maintain a cycle of progress for more years. 

Transfer to the poor should not consist merely of cash; it should also boost people's capacity to generate income today and in the future.

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