Remember food,clothes and shelter; five million die in the CONGO, and eleven million in the SUDAN.

THE GENOCIDE CONTINUES

Black Press Business/Economic Feature
Week of January 13, 2002
BUSINESS EXCHANGE

By William Reed
ECONOMIC DEVELOPMENT AND FINANCIAL LITERCY
How We Can Make More Monies Flow Into Black Communities

How can people say that African Americans aren't due deserve special
treatment from government and society? Despite those who say blacks
have made substantial economic and social progress over the past 40
years, significant disadvantages for us, based on race, still persist.

For those who say discrimination has been eliminated, note that even
the nation's top financial official, Federal Reserve Chairman Alan
Greenspan, admits discrimination is alive and well. In a recent speech,
Greenspan said discrimination against minority groups in lending
practices hurts the economy and financial institutions that engage in
such practices. One of the few leaders to admit unequal treatment for
blacks, compared to whites, in access to capital, Greenspan, who sets
the pace for the nation's economic engines, is taking the lead in
righting economic discrimination wrongs against African Americans.
Greenspan admits that when minorities approach lenders they are less
likely to receive information about potential loan packages; get less
time and information from loan officers and are usually quoted higher
interest rates for loans.

"Investors and lenders need to understand that failure to recognize
the profitable opportunities represented by minority enterprises not
only harms these firms, it harms the lending institutions as well," says
Greenspan. He says it is essential for the country's future economic
prosperity that efforts be increased to stamp out discrimination in
lending practices to individuals and to minority-owned businesses. "To
the extent that market participants discriminate, consciously or
unconsciously, capital does not flow to its most profitable uses, and
the distribution of output is distorted," Greenspan said.

In America's capitalistic economy, the three principal means for
household asset accumulation are through homeownership, small business
ownership, and savings. African-American communities are last in these
vital areas. Increasing our participation represents distinct and
important benefits to the national economy and play important roles in
the operation of financial markets and priorities of public policy.

Where home ownership flourishes, there's increased neighborhood
stability, more civic-minded residents, better school systems, and
reduced crime rates. Small business accounts for almost half of private
gross domestic product in the economy, and is an important vehicle for
significant numbers of African-American families to accumulate assets.
To overcome past barriers that have been placed on blacks, it's
essential that the opportunity to start an enterprise be open to any,
and all, with a viable business concept.

Until this country embraces reparations for blacks, the next best
thing is to assure more government funding reaches community-based
organizations in place to ensure underserved populations and geographic
areas are able to achieve gains in asset building. Community-based
organizations offer education and training services that enhance the
ability of lower-income households to accumulate assets and wealth.

Those who never knew resources were available from the Fed, note that
all 12 Federal Reserve Banks have Consumer and Community Affairs offices
that can provide local and national financial literacy, access and
economic education programs. Community organizations, financial
institutions, and local governments should contact these offices toward
strategic partnerships that can increase economic opportunities for
distressed neighborhoods.