To Aid or Not to Aid
By Susanne Goldstein on Dec 21, 2007 in Social Enterprise, The Social Age
I’ve been thinking a lot about the issue of aid for developing countries lately. Now I am no expert –just a very concerned and curious observer — so please know that I don’t really know what I’m talking about here. But I’m interested in learning more and would love to hear from you guys what you know about the world of development.
My question is this. Does aid help? In the short run, the obvious answer is yes. If you give someone food, it is better than not giving them food. But in the long run, this clearly is not sustainable. Many non-profit and NGO (non-governemental organizations) talk about “don’t give them fish, teach them how to fish”. This orientation has done quite a bit of good in the world, but it hasn’t really shifted the outcomes for the 20% of the world population that live on less than $1 per day.
Did you know that 40% of people worldwide go to bed hungry every night? Here’s the thing, these people are no different than you and I. They love their children, they work hard, they feel joy and sorrow, and they live in a cash economy. They need money for everyday living just like you and I do. In fact, they need more, since most of the world’s poor pay much higher prices for things like cooking oil than we do, as they purchase a tiny amounts (perhaps a tablespoon) at a time and pay premiums to do so.
The other challenge to the poor is that in their cash economy, their customers are other poor people. Product differentiation becomes difficult and innovation and entrepreneurship are squelched.
Organizations like KickStart are tackling exactly this issue. As one of the premier social enterprises around, KickStart doesn’t give out fish or teach people to fish, it helps people figure out how to revolutionize the fishing industry.
I was recently inspired by a presentation by KickStart founder Martin Fisher who spoke about the design and development of “tools to end poverty”. To me, it is these tools, these new design opportunties, these entrepreneurial endeavors, that are really going to change the face of poverty.
But what do I know?
I guess I still don’t know the answer to the question “To Aid or Not to Aid”, but I’m interested in researching the answer. I encourage you to watch Martin Fisher’s presentation and let me know your thoughts. Or share what you know about development.
Thanks to my friend Jeff Alpert of Aquaya for his inspiration of this post.
Susanne, this is an interesting excerpt on the very complex issue of aid and development. Without going into great depth about how culture and politics are significant factors in defining and implementing aid and development policies, I simply like the idea of social entrepreneurship. I was exposed to the concept of social entrepreneurship by a person dear to me called Ellen. Ellen really believes in entrepreneurship with a social conscience. The idea is to start a business or organization to benefit your community, whether you define your community as local, national or international. It can be anything from starting a school to bringing electricity to rural areas in developing countries or improving access to health care.
Like Ellen, I have come to believe that social entrepreneurship is a way to bring sustainable solutions to developing countries. It is a way to start to bring about change without enormous social upheaval with some immediate and real results. Committed individuals and groups can start small projects that have the potential for a larger and lasting impact. Overthrowing a government that you believe is corrupt will not necessarily improve conditions in a country and can worsen poverty and create a climate of violence. However, starting an organization on the ground, lending micro loans for community members to start their own businesses, or organizing people to educate community members about their health are ways to create sustainable solutions. These types of initiatives could make a real impact on lives.
There are more than enough resources in the world to feed, clothe, and educate every individual and it is the unequal distribution of those resources that accounts for the most of the world’s problems. However, realistically, the problem will not be solved overnight by taking from the rich and giving to the poor but gradual changes that will have a lasting impact with methods such as social entrepreneurship can be taken.
Also, the problem with rich countries such as the U.S. and Japan and organizations such as the World Bank and the IMF is that their policies often create dependence rather than self-sufficiency. Their aid is often tied to agreements that force countries to make changes that are not in the best interest of their citizens. Therefore, the ideal would be for developing countries to be able to get most of their assistance from other sources including fair trade and fair investments. Developing countries particularly in Africa need to be more involved in the global market in order to begin more self-sufficient. It may a good thing for developing countries to redefine its relationships with the West and expand its partnerships with China for instance.
There is no fatality about developing countries … social entrepreneurship will help put in place a prosperous generation. Most developing countries have been caught in a number of unfortunate and detrimental circumstances during slavery and colonialism that delayed their social and economic growth. These circumstances have contributed to instability and poverty. However it is possible to overcome and reverse poverty through practical and innovative approaches fueled by a different mind set. Schools have to instill hope to children and train the next generation to invest in their future and technology has a great role to play.
Vourdanne Ignegongba
Comment by Vourdanne Ignegongba -- Jan 1, 2008 @ 5:14 pm