"He is before all things, and in Him all things hold together." ~ Colossians 1:17

Saturday, 1 August 2009

Love and Investment/Nation-Building

You reap what you sow. This is a universal principle, embedded intricately in every aspect of life. Not surprisingly, it is also a Biblical principle; indeed, I have found that it is foundational for understanding the core of Christian teaching.

We are often told to act in a selfless way in the Bible, often in repsonse to a misdeed that has been performed against us. We are told to pray for those who persecute us, to turn the other cheek, to walk the extra mile, to give our cloak along with our tunic. What is the purpose of this way of living? What motive should underlie it? What is the result?

I believe that there are two reasons, inextricably linked, that justify a selfless approach to life. The first is that selfishness is counter-productive, as I will explicate hereafter. The second is that by acting selflessly, that is, by denying ourselves, we draw closer to God, reach a higher level of existence and contentment, and ultimately, benefit ourselves materially as well. Watch out though - if this last result becomes your objective, you will soon find that all of the above become irrelevant.

Crucially, therefore, they must be upheld by a selfless heart. Acting in humility for the sake of reward will yield only the reward that you seek, which is doomed along with this world. This principle, I assert, can be applied to every aspect of life.

Take investment, for instance. It has been widely acknowledged that the poor possess untapped productive potential. Investors, however, are usually turned away from microfinance because they fear (validly) that any income will be spent on immediate humanitarian needs, rather than on wealth creation through savings, which is bad news for the investor, who will lose out in the short term. But what if these immediate needs can eventually be satisfied?

The fundamental laws of economics, inscribed into human behaviour and understood, expounded, and elaborated in the Bible, dictate that the law of diminishing returns should apply. In other words, once we can overcome this initial barrier, the returns on our investment will be far greater than what we initially seek.

Even this initial stage of low returns should not be seen as a barrier. What good is it for man to gain the world yet forfeit his soul? Even if we receive no reward for our investments, we should feel obliged, justified, and indeed, priveleged, to offer them. Whether we are rewarded immediately, later, or in Heaven is up to God. What is evident is that the longer you wait for something, the better it gets; take any earthly desire, including hunger, marriage, sex, success. As Christians, we must see the time horizon on our investments as eternal, because, of course, they are. Moreover, we must see that our investments are guaranteed by the highest authority there is - not a central bank, not a financial watchdog or overseer, but God himself.

The recent success of microfinance bears witness to this truism. Indeed, even the chief economist at the World Bank has sung its praises. Default rates on loans to poor people in developing countries are negligible, especially in comparison to the recent sub-prime mortgage crisis that arguably triggered our current financial mileau. Borrowing (or equivalently, investing) with a selfish mindset will yield earthly returns; and because the earth is tainted with sin, these returns are corruptible, and ultimately, doomed to eventual crisis and inevitable failure. Lending with a selfless mindset will yield returns that multiply 'seven-fold-seven'.
This principle can be applied even to the self. Saving instead of consuming will yield higher possibilities for consumption in the future, even if it involves an intitial sacrifice. Obviously, there is a balance - saving the totality of one's income will not be very satisfying. But the concept remains, and the current financial crisis was caused in part by global imbalances; Americans were spending beyond their means, financed by Asian economies, which were saving to compensate. The immediate consumptive pursuit of happiness led to the eventual corrective adjustment, which proves to be more painful when all is said and done. Everything in moderation.

Lastly, I would apply the Biblical commandment of love (which Christ himself stated fulfills all other commandments) to the idea of post-conflict reconstruction and development. 'Mission accomplishment' was declared within weeks of invading Iraq, but clearly the war is far from over. In Afghanistan, winning the war requries winning hearts and minds, not battles. A selfish mindset of conquest will eventually lead to the downfall of empires, as the experience of Rome, the Third Reich, and any other imperialistic endeavour attest. Seeking to exploit resources will produce civil war, making trade inaccessible, thereby defeating the original purpose of invasion. A selfless mindset of improving people's standard of living will create a lasting relationship of trust; the trade and resources will follow.

The last shall be first and the first shall be last. This is an inescapable truth, and one which we should take to heart. The fundamental problems of poverty revolve around problems of collective action - each person in a group acts rationally according to their own interest, and within this hedonistic system of incentives, the collective outcome will be irrationality. Each person will be worse off. This concept lies at the core of problems of overpopulation, migration, pollution, theft, conflict, corruption, disease, and any other worldwide problem that you care to mention.

Love is the only solution. It is all that is required to access our inheritance of abundance, but without it, the door is locked. The key requires us to deny ourselves. Seek first his Kingdom and his righteousness, and all these things will be added to you as well.

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