Five keys to economic flourishing

OPINION:

The Institute for Faith, Work & Economics stresses three fundamental principles in order to create and sustain a thriving society: freedom, fulfillment and flourishing.

Political, economic and religious freedom are necessary for a nation to truly grow and develop. Without freedom, bondage or slavery will ensue. When individuals are free to use their God-given creativity to unfold the potential of the creation around them, the more they will be fulfilled. When millions of people are free and fulfilled, the more flourishing there will be in each sector of their nation.

In addition to holding these core principles, nations must also pursue five key goals in order to end poverty, provide decent work and bring about economic prosperity: rule of law, anti-corruption standards, private property rights, deregulation and an end to slavery in all forms.

The first of these principles, rule of law, must be enforced to reduce or end violence and chaos. To the degree that crime and violence are allowed, businesses from small to large cannot function. The primary role of government in the Bible is to restrain evil and promote the common good (1 Peter 2:14; Romans 13:4, 1 Timothy 2:2).

Second, nations must deal with corruption. When corruption is allowed, deceitful people acquire wealth and use it only for selfish gain. Thus, it’s not being used to better society, help the poor or establish growth. Corruption also causes instability and conflict since, in many nations, power leads to massive wealth. This means that there is less money for education, medical care, employment and infrastructure, and it decreases the GDP, leading to cultural distrust. According to the Corruption Perceptions Index, Denmark is viewed as the least corrupt country in the world, scoring No. 1. The United States is surprisingly ranked 28th out of 180 countries and in 2024, it slipped down four points from the previous year.

Third, there must be private property rights. If people can own and keep land, then they can better provide for themselves and others. They can also be free to get loans or develop capital to fund businesses. In “The Mystery of Capital,” Hernando de Soto argues that most of the poor already possess the assets they need to succeed but what is often lacking is private property rights.

Fourth, nations must balance the above with deregulation. Rules and regulations for businesses are essential. However, in some countries, it can be almost impossible to start small businesses due primarily to burdensome regulations and corruption.

For instance, de Soto cites an example of a very small business in Peru consisting of two sewing machines used to produce clothes in a small garment factory. He had a team of five people working 289 days almost full-time to finally get the permits to start this business. In contrast, the economic rise of South Korea is largely attributed to government policies that made it easy to start businesses and encouraged innovation.

Fifth, nations must deal with slavery, human trafficking, sexual slavery and illegal drugs. Gary Haugen, the president and CEO of International Justice Mission (IJM), often describes the problem, saying there are more people today in slavery (over 50 million) than at any other time in history. Haugen describes one of his strategies for dealing with this in a book he co-authored with Victor Boutros, “The Locus Effect: Why the End of Poverty Requires the End of Violence,” called the 15-70-15 rule.

In many countries where IJM works, about 15% of the people are desperately corrupt, about 15% want to do what is right, and about 70% look for “which way the wind is blowing.” If corrupt people are in power, then the majority is afraid to resist them. But if the corrupt become incarcerated, then the majority are more willing to do what is right.

This underscores the pivotal moment we are living in and why we need men and women who will lead our country in restraining evil and promote these time-tested truths built upon the Judeo-Christian foundation for human flourishing.

Art Lindsley, PhD serves as the Vice President of Theological Initiatives at the Institute for Faith, Work & Economics.