The Fallacy of the Middle-Class: Overcoming Social Resentment (XII). International Cooperation can help to overcome multidimensional poverty.
Have a beautiful tuesday. Today, we will continue exposing the truth about the real life of the Middle-Class, regardless if we live in El Salvador, or Switzerland, or Peru, or China or the United States of America.
On my last publication, I was showing you an example of a financial decision making in our lovely Low-Middle-Income Class family in study.
These apartments (brand new) are available in real life at the moment in San Salvador. If you wish to know more about the project visit the real estate company website for this project here: https://casasdelarbol.com/. This specific apartment belongs to the Trino Type B housing unit, and its real price is US$185,000 dollars.
The power of international cooperation when it comes to help low-middle income countries. Yesterday I explained the transaction and the economic rationale of why it was a good idea for this family to switch from leasing a house to buy a new apartment. But I did not explain you what is behind the transaction. The apartment that the Low-Middle-Income Salvadoran family will buy has already an owner who bought it first to the real estate company. This owner is a top diplomatic from the European Union, who acquired it in cash to Bolivar (the local real estate entity). Additionally, this diplomatic is a friend of the LMIC family. The European Union Representative worked in several projects with the mother of the family. He saw her transparency when it comes to handling budgets, her nobility and anti-corruption procedures when she was administering the EU projects, and he also observed how much this family was struggling to save money. After several years, the European Union diplomatic, in an act of bonheur and solidarity, and before leaving to Mozambique, (his next cooperation mandate assignment) decided to re-sell his new asset, to this family´s mother, with a discount of 40% from the real current listed price. Can you believe it? That discount was the truth behind the truth of such a good price. And that is why this deal is a good one. Not only this Salvadoran hard-working mom has more than US$ 22,000 dollars in savings, which the European Union diplomatic knows perfectly, but she won the faith and confidence of the diplomatic, by being honest, transparent, anti-corrupted and disciplined in her work, to the point in which the EU representative in town, decided to gift her the discount of the new asset, and honored the transaction. See the self explanatory slide below.
Multidimensional Poverty may be left behind if the international cooperation has the will to help. The reason why I wanted to explain this transaction in the most simple story-telling vocabulary shows us one way in which the international cooperation agencies from most developed nations can help and support individuals (directly) to leave poverty behind. This transaction in which the diplomatic decided to subsidize 40% of the housing unit to the LMIC family is simply an example that can be extended to other projects in which the International Cooperation subsidies can help to reduce the high-living expenses of the population. For example, the World Bank or many European Development Financing Institutions may share the costs of infrastructure projects such as water, sanitation, electricity, housing for Low Middle Income families, transportation (trains, metros, trams), healthcare, education, etc. And this subsidy will be reflected in what the population will afford by each type of consumer unit expenses.
The importance of Transparency and Zero Corruption to open doors. Of course in exchange the international cooperation will at least request full transparency of public accounts management and will require zero corruption. Poor low-income developing countries governments have to understand this by heart. Each penny, each dollar that international cooperation agencies provide as grants or gifts or discounts or subsidies or sponsorships to public projects, including shelter, has to be honestly used. In order to attract these type of international cooperation programs, each government officer, starting with the President, Ministers, Supervisors and the rest of administrative government personnel have to stop corruption at its roots, even in little things. Just see the example: The only reason why this diplomatic decided to make the discount of US$75,000 dollars to this family when he re-sold his brand new and never used apartment, was simply because he wanted to. The apartment was already there. He could have chosen to lease it, or to keep it. But he saw the transparency of this hard-working mom, and he decided to help her by his own will. With this transaction, the diplomatic did what is defined as “COOPERATION” in economic development terms: By helping the family directly (the real beneficiary), reducing the shelter payments, otherwise impossible to be paid under the circumstances of this family limited budget.
Anyway, I will stop here. On friday I will share all the content related to the dimensions of multidimensional poverty that we can observe in the Middle-Class.
Have a beautiful day! Keep on going.
Sources of reference utilized for this post:
Disclaimer: Illustrations in Watercolor are painted by Eleonora Escalante. Other types of illustrations or videos (which are not mine) are used for educational purposes ONLY. Nevertheless, the majority of the pictures, images, or videos shown on this blog are not mine. I do not own any of the lovely photos or images posted unless otherwise stated.
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