I first used the term “Invisible Hand” for a group in Kiva, a micro- lending institution dedicated to fostering the spirit of entrepreneurship in individuals living in poor nations so as to lift them from financial dependency to self-reliance.   If this goal attracts you, please click on this Kiva/Invisible-Hand link and join  me in this endeavor.

The benefit the individual gains through Kiva is valuable but one should not lose sight of the associated societal benefit.  When we foster entrepreneurship, economic prosperity follows, more jobs are created, and poverty is reduced: it is the society who stands to gain the most.

It is as if the vision of Adam Smith had been resuscitated within the world of charitable groups. This XVIII century Scottish philosopher stated: “By pursuing his own interest he frequently promotes that of  the society more effectually than when he really intends to promote  it.” (1776, Wealth of Nations) In essence, by promoting this capitalist’s dogma, one could expect alleviation of poverty and societal development.

In addition, and perhaps the most important ramification of this vision, as individuals become financially independent, the power of government is weakened.  This lessens the ability of government to coerce its citizens permitting the growth of freedom. Neither reduction in poverty nor individual freedom was the original goal of the entrepreneur, but both are the unintended consequences from which all of us benefit.

Given these precepts and my belief that private property engenders economic development, it should not be surprising that I see protection of private property, institutionalized within the jurisprudence of a country, as an indispensable prerequisite to reduce poverty and foster freedom.

But if we want these effects to truly impact the many, then more than individual loans are necessary. We need to address the governmental inertia and corruption, frequently hidden under a populist agenda, often hindering the entrepreneurial possibilities.  It is with this concern in mind that I created this blog. This electronic site will discuss not only articles that dwell on entrepreneurship but also publications on governmental policies – local, national and foreign – that affect this hope.

In the first paragraph I asked you to join the KIVA group’s “Invisible- Hand” which, as discussed, fosters the spirit of entrepreneurship.  I believe that this outcome strengthens the claim to private property that citizens may demand from their government.  The ultimate price is FREEDOM.  Hopefully this blog will highlight our governmental and private deficiencies that hinder this process.

Jose A. Hernandez, MD
Invisible-Hand@invisible-hand.net