Wealth Creation in Developing Nations
Development economists increasingly are focusing on encouraging wealth-generating enterprise as the most sustainable method for countries to move from poverty to prosperity. Such efforts are moving forward along several paths, including microfinance, angel investing in small-to-medium size enterprises; and efforts to reform government and lower trade barriers. Churches are also playing a role in such work by supporting microfinance efforts and through efforts at moral formation and cultural transformation, which in turn helps entrepreneurs in the developing world realize their full potential.
Business Enterprise as a Worthy Calling
Many view business enterprise as greed-based, an attitude that prevents many people from supporting and encouraging enterprise solutions to poverty. In an effort to remove this obstacle, champions of enterprise solutions to poverty note that greed exists in every profession, and that entrepreneurs need not be greedy in order to start and run a successful business. An entrepreneur might be motivated by greed; but she also may be motivated simply by a desire to make a better product, or to provide better opportunities for his or family and community. Labor directed toward the production of something that benefits other people is a worthwhile endeavor. Through such work, people find fulfillment and contribute to the common good.
The Role of Government in Enterprise
The idea that government is the primary source of wealth is mistaken. The experience of Communist economies in the twentieth century demonstrated that, while a domineering state could accelerate industrial development in some cases, it could do so only at immense human cost and at an immense cost to long-term development.
At the same time, government does have a crucial role in the process of wealth creation. Establishing the consistent rule of law where property is protected and contracts enforced is a necessary condition for thriving businesses and the economic growth they bring. When government is riddled with corruption, enacts excessive levels of taxation, or imposes excessive regulatory requirements, business enterprise is stifled and the creative potential of a nation’s citizens remains largely untapped. In sum, governments promote wealth creation by promoting justice and protecting economic freedom.