Your Money Does More Than You Think
Kwadjo Amouzou Pascal 2006 Country Director, Togo, Africa KCDS International
When you give money to help a needy person in a Third World country, to satisfy a vital and elementary need, your money does more than you think. Why send money rather than buy a gift then send it overseas? Let us suppose that you offer money for the purchase of a blanket for a person in India who cannot afford that luxury.
The first effect will be that the number of people who can purchase blankets will be increased by the number of those who will receive the assistance. Therefore the businesses selling blankets will increase the sales of the suppliers.
The suppliers will have to purchase for themselves blanket making materials which in turn will increase the sales of their suppliers. The chain of reaction created will go all the way down to the first producers which are the farmer and the shipper. Therefore any business that participates, near or far, in the blanket business will take part in the profits.
Beside the direct beneficiaries, there are indirect beneficiaries such as the State that receives the taxes on these products (which should be used for the common good). It will also benefit the bank that will increase its stock of currency.
The profits of each participant in this chain of events will be used to satisfy other needs; indirectly profiting other sectors of the economy who do not take part in the actual production and sale of blankets. Because the demand is high it can create jobs and therefore reduce unemployment. Moreover the effect of this injection of currency will be felt over a long period of time.
Altogether, to give money rather than send goods bought in the US proves to have repercussions which go far beyond the people directly concerned.
So….your money does more than you think!!