POVERTY OF FREEDOM OR FREEDOM FROM POVERTY

 

ES 341E-01 and REL 324E-01

 

DONALD W. MUSSER, RELIGIOUS STUDIES

RANJINI L. THAVER, ECONOMICS

STETSON UNIVERSITY   FALL 2001

 

Tuesday and Thursday, 4-5:15 PM  322 Elizabeth Hall

 

 

Capital is the force that raises the productivity of labor and creates the wealth of nations.  It is the lifeblood of a capitalist system...most of the poor already have the assets they need to make a success of capitalism. -- Hernando De Soto

 

Indeed the destruction of the poor is their poverty.

-- Alfred Marshall

 

Our dream is a world free of poverty.

-- World  Bank Group 2000

 

A slack hand causes poverty,

But the hand of the diligent makes rich.

-- Proverbs 10:4

 

The rich and poor meet together;

The Lord is maker of them all.

-- Proverbs 22:2

 

We should not wish that the poor and the unhappy exist for us to perform

acts of charity.  You give bread to the poor,

but it would be better that nobody hungered for it

and that no was needed to give it.

-- St. Augustine

 

The response to God's gift is blessed by God,

and with that blessing comes also the obligation

'not to hinder others from having their own part in God's gift.'

-- Richard John Neuhaus, quoting from

Centesimus Annus

 

COURSE OVERVIEW

 

The world is divided into various cultures, nations, and classes.  The world also is divided between the wealthy and the poor.  At one extreme are those who spend some of their money and wealth to keep their weight down, to stay fit, to measure and fight cholesterol, and to become more "cultured."  They ruminate over the teenage crisis, the challenges of adulthood, and the promise of the "golden years."  They debate the environment, education, trade, politics, and the future of the world.  They successfully appeal to private and government resources in the name of ‘rights’ for themselves and their families.   At the opposite extreme are those who do not know from where their next meal will come.  They do not concern themselves about rock concerts, diabetes, and retirement at one orf Del Webb's "sun cities" for they will most likely die young.  They will neither debate social issues nor care about their social identities.  They are usually so preoccupied with survival that they do not cry out for what they "deserve."  Why these extremes?  Is there a way that the poor can prosper?

 

Capitalism, more than any other economic system, has brought prosperity to some.  It has increased longevity, enlarged the range of choices, and made the eradication of poverty and famine attainable. The fruit of this system has been freedom and democracy and an unparalleled increase in human creativity and innovation.  While capitalism has made prosperity a reality for some, however, significant numbers of people in capitalist societies are impoverished. The most prosperous regions of the developed world manifest pockets of destitute and wretched human populations.

 

This course seeks to engage students in an intensive interdisciplinary study of freedom, prosperity, and poverty.  In line with the objectives of the Freedom Project, we plan to engage in fair-minded and informed investigations that respect a variety of philosophical, religious, and economic approaches to the topics of freedom, wealth, and poverty. We will foster an earnest and lively study of the meaning and responsibility of prosperity and the possibility of eradicating poverty.

 

The course has five parts.  Part I introduces students to poverty through autobiographical writings and the testimonies of the poor in the World Bank trilogy, Voices of the Poor. Part II studies classical western ideas of wealth and poverty in the Bible, early Christian theology including Clement of Alexandria and Augustine, and later in John Calvin.  Part III surveys classical economic perspectives of wealth and poverty in Max Weber, Adam Smith, Alfred Marshall, Ronald Coase, Garret Hardin, and Karl Marx.  In Part IV, having established a basic understanding of the economics, theological, and philosophical views, we evaluate the grounds of philanthropy using, among others, the thought of Aristotle and Andrew Carnegie. In Part V we study microcredit as an economic, social, political, and faith-based method for poverty alleviation.  Scholars studied include Muhammad Yunus, founder of the Grameen Bank, Jonathan Morduch, Shahidur Khandker, Aminur Rahman and Michael Woolcock. At the end of this block students will report on their empirical research on a microcredit development program such as ACCION International, CARE, FINCA, CHOICE, etc.

 

CENTRAL QUESTIONS TO BE ASKED

 

Is there a way not only to "teach the poor to fish," but also to create structures for the poor to acquire their own equipment for fishing?  In this course, we will pay serious attention to the role of microcredit as a sustainable moral and economic concept to enable the poor to transcend their economic and morally destitute lives.  Questions we will address include:

 

·       What is material and non-material poverty?  How is poverty measured economically, religiously, and philosophically?

·       What are the economic and non-economic causes of poverty?  Low wages?  Minimum wage laws? Low skills level?  Lack of land and capital? Individual attributes? A culture of poverty? Laziness? Lack of intelligence? Oppressive institutional forces (the church, the government, political leadership)?  Charity and philanthropy that diminish incentive?

·       What specific moral and economic responsibilities do freedom and liberty entail?

·       Does microcredit lead to long-term alleviation of poverty for the poor?

·       Is it is possible that through microcredit leaders can learn to respect the manner in which the poor attempt to face their problems through self-help group activism?

·       Will this allow officials to become accountable for their failure to direct resources to the poorest communities? 

·       Can self-help groups facilitate a sense of enablement through self-esteem and community solidarity?

·       In other words, can microcredit serve as a vehicle to dispel false theories that the poor are victims of their own vicious cycles of poverty and destitution?

·       Do faith-based microcredit agencies have a vital role to play?

·       Can free enterprise at the level of microenterprise help the poor escape from material and non-material poverty through generating greater income, economic confidence, social mobility, and active political participation?

·       Is microenterprise an example of Adam Smith’s world of unhindered competitive markets?

 

COURSE GOALS

 

            The goals of this course are to address the interests of the Freedom Project, the Values Mission of Stetson University, and the purposes of the Departments of Economics and Religious Studies.  Among the central goals are for students to: 

1.   Appreciate the diverse views on freedom, prosperity, poverty, charity, and philanthropy.

2.   Discern the basic concepts of economics, including the ideas of a free market.

3.   Understand the basic ideals of democratic capitalism.

4.   Understand the philosophy and economics of microcredit.  Can it enhance freedom?

5.   Become thoroughly acquainted with and critique a microcredit development project.

6.   Commit to their own views of personal and social prosperity with respect to poverty.

 

N. B.  The course is open to twenty students who hold sophomore academic status by Spring 2001.  It meets a requirement for both Economics and Religious Studies majors and minors, counts toward the Applied Ethics minors, and is an “E” or “Ethical Decision Making” course. 

 

COURSE OUTLINE

 

Session 1: Introduce Course, Requirements, Expectations.

 

 

PART I

LISTENING TO THE POOR

 

Most Stetson students come from affluent families.  Most of them have been insulated from the lives of the poor.  This insulation feeds false theories about the poor, most notably, a tendency to blame the poor for their poverty.  We will immerse students in the experience of the poor through the reading of two autobiographies and a study of the voices of the poor as documented in the World Bank study by that title.  (We will also share three meals with poor people.)

 

Session 2: Autobiography of  Zora Neale Hurston (a Central Florida African-American political activist)

Zora Neale Hurston, Their Eyes Were Watching God, Perennial Classic, 1999.

 

 

Session  3: Autobiography of Mark Mathabane, an indigenous South African man living amidst apartheid.

Mark Mathabane, Kaffir Boy, Touchstone, 1986.

 

 

Sessions 4 and 5:  Voices of the Poor From Sixty Nations.

Deepa Narayan, ed., Voices Of The Poor: Can Anyone Hear Us? Vol. 1,  Oxford University Press, 2000.

 

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FEASTING WITH THE POOR:  MEAL WITH AFRICAN-AMERICAN COMMUNITY OF SPRING HILL, DELAND

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PART II

PHILOSOPHICAL AND THEOLOGICAL FOUNDATIONS

OF FREEDOM, PROSPERITY, AND POVERTY

 

Session 6:  The Hebrew Bible On The Goodness Of The Material Creation, The Blessing And Responsibilities Of Wealth, And The Vanity Of Life.  The New Testament On Sayings And Parables Of Jesus, Primitive Communitarianism, Charity For The Poor, And The Misery Of Misused Riches

 

Genesis 1:1-2:4a, Deuteronomy 14-15:25, Proverbs 22:1-9, Amos 6:1-8, Ecclesiastes 9:1-10.  Mark 14:7, Matthew 5:3, Luke 12:13-21, 16:19-31; Acts 2:42-47, 2 Corinthians 8:8-15, James 5:1-6.

 

 

Session 7:  Pre- and Post- Constantinian Christianity. 

 

Clement of Alexandria, "Who Is the Rich Man That Shall Be Saved?"

Cyprian, "On Works and Alms."

 John Chrysostom, "Sermon on Luke 16:19-31."

Augustine, "Epistles 156 and 157."

 

 

Session 8:  John Calvin -- Prelude to Max Weber. 

Selections from The Institutes of the Christian Religion on the Christian calling, the blessings of material gain, the benefits of righteous living, and the obligation to charity.

 

 

***Expert Discussant: Dr. D. Dixon Sutherland,

Department of Religious Studies,  and dr. ron hall, philosophy department,* Stetson University**

 

 

PART III

ECONOMIC FOUNDATIONS

OF FREEDOM, PROSPERITY, AND POVERTY

 

Sessions 9 and 10:  Classical Moral and Economic Thinkers on Freedom, Prosperity, and Poverty

 

Adam Smith, The Wealth of Nations, Book 1; The Theory Of Moral Sentiments, Part III, 

John Rawls, A Theory of Justice, Chapter 2.

Marx and Engels, Manifesto of the Communist Party.

Milton Friedman, Capitalism and Freedom, Chapter 1.

Alfred Marshall, Principles Of Economics, Chapter 1.

Max Weber, The Protestant Ethic And The Spirit Of Capitalism.

George Stigler and Ronald Coase, "Alfred Marshall's Lectures on Progress and Poverty," Journal of Law and Economics. April, 1969.

Henry George, Progress and Poverty, New York, 1879, Introduction and ch.1.

Garret Hardin, “Living On A Lifeboat, in James E.  White, “Contemporary Moral Problems” (West Publishing Company, 1994).

Gilbert, Geoffrey, "Adam Smith On The Nature And Causes Of Poverty," Review Of   Social Economy. 55(Fall 1997):273-92.

Thomson, Keith Stewart, "1798: Darwin And Malthus," American Scientist.  86(May/June 1998):226-230.

Hont and M. Ignatieff (eds.), "Needs and Justice in the Wealth of Nations: An Introductory Essay," in Hont and M. Ignatieff (eds.) The Shaping of Political Economy in the Scottish Enlightenment (Cambridge, 1983).

 

 

Sessions 11and 12: Definitions And Measurements Of Poverty

 

Sharp, Register, and Grimes, Economics Of Social Issues, 2000, 14th edition, chapter 1 (Human Misery) and chapter 7 (Is Poverty necessary?).

Gerald Meier, Leading Issues In Economic Development, 6th ed.  1995, Oxford University Press.  Chapter 1 (pp.13-32); Chapter II (pp. 67-112).

Bradley Schiller The Economics Of Poverty And Discrimination.  Prentice Hall, 1999. Chs.1-2.

World Bank documents.  On world-wide web at www.worldbank.org.

 

 

Sessions 13, 14, 15, and 16: Contemporary Economic, Theological, Philosophical, and Social Theories On Poverty 

 

William Ryan, Blaming The Victim. Pantheon, 1971, Chapter 1 and Conclusion.

Cherry, Robert, "The Culture-Of-Poverty Thesis And African Americans: The Work Of  Gunnar Myrdal And  Other Thinkers," Journal Of Economic Issues.  29(December 1995):1119-1133.

Hill, Lewis E.  "The Institutional Economics Of Poverty: An Inquiry Into The Causes And Effects Of  Poverty," Journal Of Economic Issues.  32(June 1998):279-286.

Hernando De Soto, The Mystery Of Capital. Basic Books, 2000, chapter 1.

William Julius Wilson, The Truly Disadvantaged.  U. Of Chicago Press, 1988. Chapter 1

Hunt, Matthew O. "The Individual, Society, or Both? A Comparison of Black, Latino, and White Beliefs about the Causes of Poverty," Social Forces.  75(1996).

Lakshman Yapa, "What Causes Poverty?: A Postmodern View," Annals Of The   Association Of American Geographers.  86(December 1996):707-729.

Christopher Collier, "NGOs, the Poor, and Local Government," Development in Practice. (August1996): 244-249.

Graham F. Wagstaff,  "Attitudes to Poverty: The Protestant Ethic, and Political Affiliation: A Preliminary Investigation," Social Behavior and Personality.  11(1983):45-47.

Sanger, Mary Bryna,  "Is Academic on Poverty Purely Academic?, New England Journal of Human Services.  2/3(Summer 1982):27-33.

Galbraith, John Kenneth.  "The Causes of Poverty: A Clinical View," Population Review.  (July 1962):62-66.

Lasch, Christopher.  "The Culture Of Poverty And The Culture Of `Compassion',   Salmagundi.   (Spring/Summer1993):3-12.

Lewis, Oscar, "The Culture Of Poverty," Society.  35(January/February 1998):7.

Heilbroner, Robert, "The Paradox Of Progress: Decline And Decay In The Wealth Of Nations," Journal Of The History Of Ideas.  14(1973):243-62.

Spalding,  Nancy L. "The Relevance Of Basic Needs For Political And Economic Development," Studies In Comparative International Development.  25( Fall 1990):90-116.

Wilson, George, "Toward A Revised Framework For Examining Beliefs About The Causes Of Poverty," Sociological Quarterly.  37(Summer 1996):413-417.

Tinker, Irene, "Alleviating Poverty," Journal Of The American Planning Association.  66(Summer 2000):229-243.

 

 

***Expert Discussant: Dr. RICHARD WOOD, Department of Economics and dr.  charles veddEr, sociology and anthropology, Stetson University***

 

 

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FEASTING WITH THE POOR: MEAL WITH MEXICAN COMMUNITY OF PIERSON, VOLUSIA COUNTY

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PART IV

ECONOMICS AND PHILOSOPHY

OF FREEDOM, WEALTH, AND PHILANTHROPY

 

Sessions 17 and 18:  Perspectives on Philanthropy

 

Carnegie, Andrew.  "The Gospel of Wealth."

Anderson, Albert.  "Aristotle and the Ethics of Philanthropy."

Riley, Jonathan.  "Philanthropy Under Capitalism."

Payton, Robert L.  "God and Money."

The above readings are in The Responsibilities of Wealth, Dwight Burlingame, ed. Bloomington:  Indiana U. Press, 1992.

 

***Expert Discussants: Mark Whittaker, Stetson University, Vice President for Development, and Greg McCann, Director of the Family Business Center, Stetson University***

 

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FEASTING WITH THE POOR: Meal With Anglo Community, DeLand

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BOOKFEAST:  THE CATHEDRAL WITHIN: TRANSFORMING YOUR LIFE BY GIVING SOMETHING BACK  with author BILL SHORE, founder of “share our strength”

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Institute for Christian Ethics/Humane Economics Lecture:  Steven Rockefeller, Bankers Trust

 

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PART V

THE CONCEPTUAL FOUNDATIONS

OF MICROCREDIT

 

Sessions 19 and 20: Definition, History, And Theory Of The Informal Economy

 

Portes, A., Castells, M., and Benton, L. A.  (Eds.), The Informal Economy:  Studies In Advanced And Less Developed Countries.  Johns Hopkins University Press, Baltimore, 1989.  Read the following chapters:

 Castells, M. and Portes, A. "World Underneath: The Origins, And Effects Of The Informal Economy.”

Sassen-Koob, S. "New York City's Informal Economy."

Fernandez-Kelly, M. P. and Garcia, A. M.,  "Informalization At The Core: Hispanic Women, Homework, and the Advanced Capitalist State."

Beneria, L., "Subcontracting And Employment Dynamics In Mexico City."

Capecchi, V., "The Informal Economy and the Development Of Flexible Specialization In Emilia-Romagna."

Lebrun, O. & Gerry C., “Petty Producers And Capitalism”, Review Of African Political Economy, 3 (1975):20-32.

Charmes, J.,   "A Critical Review Of Concepts, Definitions And Studies In The Informal Sector," in Turnham, D., Salome, B., and Schwarz, A. (Eds.), The Informal Sector Revisited.  Development Centre Seminars, Oecd Bookshop, 1990.    

Stepick, A., "Community Growth Versus Simply  Surviving; The Informal Sectors Of Cubans And  Haitians In Miami," in  M. Estellie Smith (Ed.),  Perspectives  On The Informal Economy.  University Press Of America, 1990.

Henry, S. "Can The Hidden Economy Be Revolutionary?  Toward A Dialectical Analysis Of The Relations Between The Formal And Informal Economies," Social Justice.  15(3/4):29-60.

The Kairos  Document:  Challenge To The Church."  SACC, South Africa, 1987.

Mcgee, T.G. "Peasants In The Cities:  A Paradox, A Paradox A Most Ingenious Paradox,"  Human Organization.  32(1):135-142.

Smith, M. Estellie.  "A Million Here, A Million There, And Pretty Soon You're Talking Real Money," in  M. Estellie Smith (Ed.),  Perspectives  On The Informal Economy.  University Press Of America, 1990.

 

Session 21 and 22: Microcredit, The Grameen Model

 

Yunus, Muhammad, Banker To The Poor.  Public Affairs, 1999.

Hossain, Ishtiaq, "An Experiment In Sustainable Human Development: The Grameen Bank Of Bangladesh," Journal Of Third World Studies.  15(Spring 1998):39-56.

Morduch, Jonathan, “The Microfinance Schism,” World Development. 28(September, 2000):617-629.

Khandker, Shahidur R. and Samad, Hussain A., "Income And Employment Effects Of Micro-Credit Programmes: Village-Level Evidence  From Bangladesh," Journal Of   Development Studies.  35(December 1998):96-125.

Wahid, Abu, "The Grameen Bank And Women In Bangladesh. Challenge," 42(September/October 1999):94-102.

Yunus, Muhammad, "Poverty Alleviation: Is Economics Any Help? Lessons From The Grameen Bank  Experience," Journal Of International Affairs.  52(Fall 1998):47-66.

 

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BOOKFEAST on “banker to the poor” AND GUEST LECTURE BY MUHAMMaD YUNUS, founder of grameen bank

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Sessions 23 and 24: Microcredit Methodologies: Community Based And Individual Approaches

 

Nelson, Mknelly, Stack, And Yanovitch, Village Banking : The State Of The  Practice. Village Bank, 1996.

Fairley, Joanne, "New St