03 April 2014

The Economics of Freedom

By Julia Smith-Blake


Speaking of heroes, I recently got to meet one of mine. At the beginning of March, a few of us from Chab Dai were lucky enough to recieve some coveted tickets to a Social Business Hub event to hear Professor Muhammad Yunus speak. Having had the opportunity (and squandered it!) a couple years ago to meet another development hero of mine, Amartya Sen, I was not going to chicken out this time!

The event was wonderful, it began with a panel discussion on the infrastructure of social businesses which included the different definitions of what a social business is, the biggest challenges that can arise and the kind of achievements you can expect in this sector. After a session of workshop presentations, Professor Yunus gave a thorough and superb talk emphasizing the concept of freedom within economics. At the end of the event, a Cambodian social business acrobatic group, Phare, gave an amazing performance (http://www.pharecambodiancircus.org/circus/).


What I love about leaders such as Mohammad Yunus and Amartya Sen is their ability to link, so eloquently and well-thought out, the connections of economics to freedom. Sen’s theoretical model is based on helping individuals and communities achieve freedom. This freedom can be economic freedom, personal freedom, societal freedom and/or the freedom to be who they want to be. Ultimately, all development should be viewed through the lens of freedom. Yunus’ foundational logic for lending money to the poor, which led to the creation of microfinance itself, is essentially, “If I lend money to the poor myself, they won’t have to go to a loan shark, and they will be free!” So many of the poor stay poor or sink even more into a cycle of debt and poverty because of predatory lending practices; and though there is no such thing as a silver bullet in poverty reduction, Yunus saw microfinance as a powerful tool to combat the violence of these practices.

As an aspiring economic sociologist engaged in counter-trafficking, this is music to my soul. It also, in my opinion, promotes the thought that communities have within themselves the potential to end exploitation and trafficking, and the counter-trafficking community’s job is to come alongside them to enable and support their journey to freedom.

Yunus is an inspiring person; after all the challenges he has faced, he remains so positive and hopeful for the future. He truly believes this generation’s youth has the most power and potential in history, and keeps pushing the boundaries of innovative business and economics. At the end of his address, he said (paraphrased), “Poor people are like bonsai trees, there is nothing wrong with the seed, society just didn’t give them room to grow. We need to fundamentally change the system to give them room to grow.”

I am a big believer in “doing with” in development, not “doing for,” and Yunus’ ending words inspire me. Fighting poverty and violence not only requires giving the poor and the oppressed space to grow and achieve their potential, but also working tirelessly to change a system that accepts the status quo and allows a continuous cycle of violence and poverty in the world.