The Trickle-Up Theory

When I was studying Economics in the early 1980s, the battle between Capitalism and Communism - between free market action and central market control - was just about over. By that point just about everyone had agreed that individuals and corporations acting in their own best interest would move the Quija board of commerce to everyone's benefit; what the famous 18th Century economist Adam Smith called The Invisible Hand.

Later that decade, Smith's "Hand" pushed down the Berlin Wall. Today Russia has denounced Communism but still hasn't made up it's mind about freedom of action and so is mired in a seemingly endless cycle of shortages and corruption. China's less-restrictive but still authoritarian approach has yielded results so astonishing that there is some question how long The Party can maintain its powerful position. What are called Black Markets in Cuba are actually free markets forced to operate in the shadows. With the imminent demise of Castro, perhaps the American embargo can end and that country's new leaders will take a new look at capitalism.

One point that is often lost in this type of ivory tower discussion of global economics is the impact that free enterprise can have on those at the bottom of the socio-economic ladder. Any aspiring entrepreneur, no matter their education or social stature, can elevate themselves through hard work and dedication if they are only given the tools and knowledge to succeed and the opportunity to engage in free commerce with their fellow citizens.

Such is the premise and mission of Trickle Up, a New York City-based orginization that provides seed capital and training to micro-enterprises in developing areas worldwide. Over the past 27 years Trickle Up has helped tens of thousands of often illiterate entrepreneurs provide for their families through the fruits of their own enterprises.

Most Trickle Up clients are women who use the regimented business training, ongoing support and accountability - and $100 in seed capital - to begin earning money from the sale of crafts, vegetables and services such as laundry and child care. Over 80% of these business owners succeed, providing their children with much higher levels of nutrition and education, causing them in turn to be more productive members of society whose valuable production trickles up to the entire country.

One more benefit these children receive is that of an entrepreneurial role model whose efforts they can emulate to continue to become evermore productive.

I applaud Trickle Up for their mission and 27 years of successful application of the free enterprise concept to those who can benefit from it the most. If you would like to learn more about - or make a contribution to - Trickle Up, you can visit them online at http://www.TrickleUp.org or telephone them at 212-255-9980.