Archive for October, 2009
A new way to think about aid
Monday, October 19th, 2009
Somewhere in between ‘dead aid’ and no strings attached hand outs lies ‘patient capital’ a solution that compliments both sides of the aid debate. Jacqueline Novogratz presents an argument for involving the people of the communities who themselves want to be responsible for driving change in their own lives.
http://www.ted.com/talks/jacqueline_novogratz_a_third_way_to_think_about_aid.html
Based on market economics, ‘patient capital’ encourages innovation and entrepreneurialism in local communities, and involves a high risk tolerance and long term vision on the part of the funders. But most importantly, ‘patient capital’ encourages a partnership between the donors and the recipients where the recipients’ needs drive the funding model. The results are high social impact, and the shift towards the change we all want to see.
e4e’s business model incorporates some of Ms Novogratz’s ideas, with an overall vision to increase local capacity to help empower people and communities to improve their own lives by providing access to energy.
What are your thoughts on the aid debate? Are there holes in the ‘patient capital’ model, are we cranking out too much aid to developing countries? Is there a better approach?
Tags: aid debate, patient capital, smart donors
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