The Shrinking US dollar and American Missions.

Puritan Sailor · #1 (**permalink**) 01-17-2008, 04:24 PM

I just received this in an email from Action International about the effects of the falling US dollar on the mission field. Any missionaries here wish to confirm this? Any suggestions on how churches can help work through this?

Quote:

This article below was written a missionary in Colombia name Dale Meade.
_______________________________________

The Incredible Shrinking Dollar

A spate of headlines about the falling value of the dollar have caught many
by surprise. But these recent headlines have simply confirmed the reality we
have been struggling with here in Colombia for many years. Unnoticed by most
Americans until recently, the dollar has been losing value for years now.
Recently this trend has caught the eye of journalists and tourists and this
fact has gained coverage.

Many headlines now bemoan the fact. Examples include leading newspapers and
small town journals. The New York Times observed that there is “US Silence
on its Weak Dollar.” Newsweek bemoaned “The Incredible Shrinking Dollar.”

MSNBC’s headline read “How the Dollar’s Plunge Hurts You.” And so one
newspaper after another has been startled into consciousness by the
unavoidable realization that the dollar’s value has collapsed. While there
have been previous ups and downs, such a sustained and pronounced decline in
the American dollar is a phenomenon never seen before.

While there have been fluctuations in the exchange rate between the dollar
and other single currencies from time to time, this is the first time ever
that the US dollar has fallen consistently and steadily against nearly every
other currency in the world. While the affect has been slight; maybe even
positive for the United States, especially in the area of exports, it has
been a significant problem for missionaries around the world. Here in
Colombia, we have been affected even more than most other regions.

Purchasing power of the US dollar here in Colombia has plummeted. Many of
our routine expenses have increased 400% or more in the last six years. In
the case of our college scholarships, they have increased nearly 1,000% in
that same time. As a result we have been forced to continually cut back on
what we are
doing here in the country. I have limited my travel but there is a need to
visit and teach in the churches. We ceased to give out new college
scholarships until a current student finishes and graduates. We suspended
our printing ministry and only recently restarted it. But even now, we are
not sure we can sustain it.

While we understand that income is often static or challenging in the States
as well, we do encourage you to take this fact into account when setting
your missions budget. Missionaries tend to be very frugal people (for
example, we are driving a fifteen year old car to avoid spending money on a
new and more dependable vehicle) but there is a limit to how far one can
stretch a dollar. Please help us avoid further cuts in ministry at a time
when opportunities are at their greatest. If you are able to increase your
missions giving, the Lord’s work here in Colombia will benefit.

As God opens great doors of opportunity, this is not the time to retrench
and cut back. Join with us in praying that God provide the means as He opens
the doors for greater service and increased harvest! Join with us in making
certain that we do not have to ignore these doors that God has opened to us.

Source:
Colombian Christian Mission » Blog Archive » The Incredible Shrinking Dollar

Blueridge Baptist · #2 (**permalink**) 01-17-2008, 04:33 PM

I've heard the same kind of stories from people on the field in Bulgaria and Romania. They say they're being squeezed badly in food costs and rent.

victorbravo · #3 (**permalink**) 01-17-2008, 04:36 PM

Sounds plausible. This chart is from Yahoo finance. It shows Columbian pesos to the dollar. It shows a general drop from around 2650 to 2000 from July 06 to the present. That's about a 25% decline in a year and a half.

victorbravo · #4 (**permalink**) 01-17-2008, 04:41 PM

BTW, this is the chart for the past five years.

JDWiseman · #5 (**permalink**) 01-17-2008, 04:59 PM

We had two missionaries from an eastern European country at my church a few months ago who essentially said the same thing: Namely, that they needed more money. Not because of a drop-off in support, but because the same amount of money was purchasing less and less as the dollar declined.

kvanlaan · #6 (**permalink**) 01-20-2008, 07:34 PM

This is part of why we work in the local economy. I am fortunate to have a job that pays fairly well here (though to just about anyone living in the US, it would be an utterly laughable salary). I teach english but am paid in local currency, so that as we watch the USD go down the tubes in relation, we are still somewhat protected. The other problem here, inflation, is more of a burden, especially on the locals. Pork is a staple here and has gone (percentage-wise) through the roof. In economies like this, a little tentmaking goes a long way. We knew of some people on support who were on the way over here to serve just before the bottom fell out on the S African Rand some years ago. Suddenly, rent, etc. was all out of reach. We know it may have been the Lord providentially closing a door but it sure did hurt to watch it happen.

Pergamum · #7 (**permalink**) 01-20-2008, 08:34 PM

The solution is simple if a few churches merely adjust for this change. Right now, I read from Barna that only about 3% of all church monies go to foreign missions, so there should be plenty of willing souls ready to chip in a few extra dollars and plenty of church monies that could be diverted.

Most mission groups have a range of support that missionaries can choose from. The lowest range is the "survival" range but most groups encourage their missionaries to take the top range or near the top to account for such things as this. Thus, there is a "padding" to account for all those unexpected crises thatr always seem to happen.

Also, many mission groups figure in a one time support amount that is equal to 3 months of support as an extra padding so that - in case of bad times - the missionary has several months to tell their churches and so that their churches can adjust their giving to adjust for any economic changes.

JBaldwin · #8 (**permalink**) 01-20-2008, 09:00 PM

Though I cannot verify this particular situation, but I know from experience that the changes in the dollar can severely affect missionary income. When I was serving in France, the value of the dollar dropped significantly, and in a matter of a few months, my buying power was half of what it was. It's something that churches need to be aware of.