The discussion tonight started with the change in the quality of rice in the world. The group I was with travels regularly across the Middle East, Central Asia and Europe, and they have noticed a major change in the quality of rice over the past year. I added that the price of rice has increased by 50% in the last year alone at the crop levels. And given 75% of the world's population depends on rice for its major staple, its once again the third world and the poor who suffer most as a result. It just got twice as hard for some to feed their families in certain parts of the world.
And then someone commented that "If you really wanted to solve the problem of the world's poor then we would have done it by now." Interesting. Do you agree? True or False? I guess its hard to substantiate such a statement and we went on for a long time discussing the merits and flaws of this comment. Obviously there was no answer by the end of the evening, but it makes you ask yourself how can we realistically solve a problem that is not only so broad, but who's roots are so diverse? Personally I am exhausted just thinking about it, but at the same time I believe there isn't a single solution that any government, rock star or Billionaire has put on the table that can seriously make more of an impact than you or I could personally.
Say what?
Again, I believe there isn't a single solution that any government, rock star or Billionaire has put on the table that can seriously make more of an impact than you or I could personally.
To make my point you have to look at how the world approaches the entire 'space' called Giving - be it charities, non-profits, NGOs, or other governmental efforts to help others. I think there are two extremes at the end of the spectrum: on one end you have the American private citizen, and on the other end you have the United Nations. Everything else, from the Gates foundation to the Red Cross to Save The Children to that little non-profit in your town that is trying to save the last pond creature, falls in between these two extremes when it comes to the space of Giving.
The private citizens of the United States have given more to causes than any other group in the world. Its frankly remarkable. This is a fact supported by a ton of data available all over the internet, and applauded by the likes of Bono and others for years. Its not because Americans are more charitable than other nations. Its because until now, the American people have had the opportunity to earn more money and keep more of it (less taxes) than any other populated nation in the Western Hemisphere. Yes, they are inclined to give more because of their culture, education and values taught by immigrant roots, but none of this would be possible if they weren't the wealthiest nation on earth. The difference of course is they get to choose to give away what they want, no government decides for them. And give they do.
On the other end of the spectrum you have the United Nations. This group is the largest organization in the world focused on the redistribution of wealth in the world, taking billions of dollars in resources and funds from the West and distributing it to the rest of the world in the name of humanity. Its the longest running scheme that is responsible for the most inefficient use of man's resources. Numerous audits and investigations into the UN's activities have found time and time again that financially this organization's activities are anything but transparent and no one can honestly say what happens to the money passing through the UN from its member nations. Millions are going to 'middle men' while pennies go to the real causes. The oil for food scandal in Iraq during Saddam Hussein's reign should have been a clear indication of whats wrong with this entity.
So how can you, one person, make a difference? From the guy in the street asking for a handout to the UN you just don't know where your dollars go. Non-profits and charities are inefficient. More importantly, every dollar you spend, the majority (as high as 98% in some cases) goes to "overhead". Unacceptable by any standard. If you ran your business that way you would be out of business pretty quickly. Now there are exceptions, but the fact of the matter is those hard earned dollars you are giving away to fulfill your charity goals are not getting to the people who need it. There has to be a better way.
And this is where we come to the point about a single person having just as much, if not more, of an impact than any organization set up as a 'Giver'. If you are in a position of wealth today then you should stop giving away your dollars (or Euros or Yen or whatever) to a 'middle man' disguised as a charity or non-profit who pockets more than half for himself, and start creating wealth. Become an entrepreneur. Put your money into a project that is going to yield a result directly as a result of your support. They are all around you and ultimately they can have the kind of impact that the billions we give to charities across the world have failed to have.
In my mind the Entrepreneur sits on top of the pile of Givers. He just doesn't call himself a 'giver', he is a 'producer'. Take the barber who has been cutting my hair in Brussels for years. If I have a trip scheduled back to Brussels then I'll skip a haircut and wait until I get to Rodolphe's on the Avenue Louise. This guy started over 10 years ago as a little 2 chair barber shop in the most anti-business country in the world where taxes are so high you would rather stay home and watch re-runs of General Hospital. Yet he worked tirelessly for the last decade to build his business and 3 months ago moved three doors down to a much bigger space where he has added American style health and beauty offerings, and employing 5 people in the process. And thats where I'd argue Rodolphe has made more of an impact with his business than any charity would have with the same amount of money.
You are crazy, Nomad. People are dying over there and you are talking about hiring people in Brussels.
Really? How about this - one of the people Rodolphe has hired is from Indonesia, a massage specialist who will give you a 5 minute head massage before your haircut. She has a family in Brussels but sends back 20% of her salary to her family in Indonesia. Thats after taxes mind you. Hmmm, I'd say thats more impact than Feed Indonesia would have with the same amount of money. Then there is Georges, the South African barber who finds himself employed now in Rodolphe's establishment. He feeds his family by working there, but what Rodolphe told me is that he is the hardest working, most reliable barber he has had since working in the business. The people in the third world need opportunity, not hand outs. I can go on and on about the impact Rodolphe's little enterprise is having.
We ate lunch at an amazing Italian restaurant called "La Creche des Artistes". It was one of the best meals I have had in a long time. The owner is 30 year old Alessandro. He took over the restaurant from his folks who retired after 25 years in the business. Alessandro's entire staff are either Asian or African. He finds their work ethic superior to the numerous Belgo-Italians who have come and gone in his establishment. And before you say "well its cheaper to hire an African than an Italian" let me warn you the market is a lot more regulated here so that argument doesn't really hold water. The service is impeccable at Alessandro's restaurant and I counted 5 people at the lunch shift who clearly depend on his business to feed their families and live in Belgium. Create opportunity for those willing to take it. Thats impact.
So what about that starving child in Sudan or Earthquake victims in Haiti? Short answer is I don't know, maybe you should consider giving your time and flying out to these locations for a few weeks or months to do what you can if it makes you feel better, but the answer isn't in giving a dollar to a relief organization who spends 98 cents on its operations and gives 2 cents to the children. I attended a presentation by the COO of a prominent global charity not too long ago where she was updating us on Haiti, and I was sadly disappointed. I came away feeling even less confident that these people can competently manage the money we give them blindly. But I do admire them for doing what they do and that brings me to my next and final point.
There are mostly wonderful people working in charities, non-profits and NGOs who have nothing but the best of intentions. The fact that their organizations are inefficient should not stop you from giving your money to them if thats what you want. Its your decision. But I'd encourage you to prioritize and be much more stringent about who you give it to if you want to truly have an impact. And I urge you to step back from the emotions of charity for a second and rethink the credibility of outrageous movements like "Banish Poverty Forever" or "Banish Hunger Forever" that ignorant celebrities chisel in your brain. These sound good but they are lost at the outset and do not benefit those intended. A dose of reality is truly needed so we can actually make a difference in the world.
My advice to you 'Givers' is to look past the teary eyed causes and find the kind organizations and projects to get involved with where you can actually see the direct impact of your donations, time and intellectual property. For example, I have found the most deserving organization to give to this past year in Robert Morris University, a stellar school in my new home town of Pittsburgh. Having spent time with the President, his management team and some of the Deans, I can tell you I didn't hesitate to take out my checkbook and donate a significant part of my annual giving dollars to them. They are making things happen and the energy on campus from students to teachers to Alumni is electrifying. I didn't get the same vibe from CMU or Harvard who have monster endowments. The RMU community are doing great things and I'm not even an Alumni.
I'd love to hear your thoughts about this subject. There is so much more to say, so many perspectives to write, but the night is calling and my flight back to the US awaits me. If you take anything from this unusual Nomad post let it be this - you alone can make more of a difference in a single person's life than any organization or charity by simply being the best at what you do. Go out and make it happen.
And then someone commented that "If you really wanted to solve the problem of the world's poor then we would have done it by now." Interesting. Do you agree? True or False? I guess its hard to substantiate such a statement and we went on for a long time discussing the merits and flaws of this comment. Obviously there was no answer by the end of the evening, but it makes you ask yourself how can we realistically solve a problem that is not only so broad, but who's roots are so diverse? Personally I am exhausted just thinking about it, but at the same time I believe there isn't a single solution that any government, rock star or Billionaire has put on the table that can seriously make more of an impact than you or I could personally.
Say what?
Again, I believe there isn't a single solution that any government, rock star or Billionaire has put on the table that can seriously make more of an impact than you or I could personally.
To make my point you have to look at how the world approaches the entire 'space' called Giving - be it charities, non-profits, NGOs, or other governmental efforts to help others. I think there are two extremes at the end of the spectrum: on one end you have the American private citizen, and on the other end you have the United Nations. Everything else, from the Gates foundation to the Red Cross to Save The Children to that little non-profit in your town that is trying to save the last pond creature, falls in between these two extremes when it comes to the space of Giving.
The private citizens of the United States have given more to causes than any other group in the world. Its frankly remarkable. This is a fact supported by a ton of data available all over the internet, and applauded by the likes of Bono and others for years. Its not because Americans are more charitable than other nations. Its because until now, the American people have had the opportunity to earn more money and keep more of it (less taxes) than any other populated nation in the Western Hemisphere. Yes, they are inclined to give more because of their culture, education and values taught by immigrant roots, but none of this would be possible if they weren't the wealthiest nation on earth. The difference of course is they get to choose to give away what they want, no government decides for them. And give they do.
On the other end of the spectrum you have the United Nations. This group is the largest organization in the world focused on the redistribution of wealth in the world, taking billions of dollars in resources and funds from the West and distributing it to the rest of the world in the name of humanity. Its the longest running scheme that is responsible for the most inefficient use of man's resources. Numerous audits and investigations into the UN's activities have found time and time again that financially this organization's activities are anything but transparent and no one can honestly say what happens to the money passing through the UN from its member nations. Millions are going to 'middle men' while pennies go to the real causes. The oil for food scandal in Iraq during Saddam Hussein's reign should have been a clear indication of whats wrong with this entity.
So how can you, one person, make a difference? From the guy in the street asking for a handout to the UN you just don't know where your dollars go. Non-profits and charities are inefficient. More importantly, every dollar you spend, the majority (as high as 98% in some cases) goes to "overhead". Unacceptable by any standard. If you ran your business that way you would be out of business pretty quickly. Now there are exceptions, but the fact of the matter is those hard earned dollars you are giving away to fulfill your charity goals are not getting to the people who need it. There has to be a better way.
And this is where we come to the point about a single person having just as much, if not more, of an impact than any organization set up as a 'Giver'. If you are in a position of wealth today then you should stop giving away your dollars (or Euros or Yen or whatever) to a 'middle man' disguised as a charity or non-profit who pockets more than half for himself, and start creating wealth. Become an entrepreneur. Put your money into a project that is going to yield a result directly as a result of your support. They are all around you and ultimately they can have the kind of impact that the billions we give to charities across the world have failed to have.
In my mind the Entrepreneur sits on top of the pile of Givers. He just doesn't call himself a 'giver', he is a 'producer'. Take the barber who has been cutting my hair in Brussels for years. If I have a trip scheduled back to Brussels then I'll skip a haircut and wait until I get to Rodolphe's on the Avenue Louise. This guy started over 10 years ago as a little 2 chair barber shop in the most anti-business country in the world where taxes are so high you would rather stay home and watch re-runs of General Hospital. Yet he worked tirelessly for the last decade to build his business and 3 months ago moved three doors down to a much bigger space where he has added American style health and beauty offerings, and employing 5 people in the process. And thats where I'd argue Rodolphe has made more of an impact with his business than any charity would have with the same amount of money.
You are crazy, Nomad. People are dying over there and you are talking about hiring people in Brussels.
Really? How about this - one of the people Rodolphe has hired is from Indonesia, a massage specialist who will give you a 5 minute head massage before your haircut. She has a family in Brussels but sends back 20% of her salary to her family in Indonesia. Thats after taxes mind you. Hmmm, I'd say thats more impact than Feed Indonesia would have with the same amount of money. Then there is Georges, the South African barber who finds himself employed now in Rodolphe's establishment. He feeds his family by working there, but what Rodolphe told me is that he is the hardest working, most reliable barber he has had since working in the business. The people in the third world need opportunity, not hand outs. I can go on and on about the impact Rodolphe's little enterprise is having.
We ate lunch at an amazing Italian restaurant called "La Creche des Artistes". It was one of the best meals I have had in a long time. The owner is 30 year old Alessandro. He took over the restaurant from his folks who retired after 25 years in the business. Alessandro's entire staff are either Asian or African. He finds their work ethic superior to the numerous Belgo-Italians who have come and gone in his establishment. And before you say "well its cheaper to hire an African than an Italian" let me warn you the market is a lot more regulated here so that argument doesn't really hold water. The service is impeccable at Alessandro's restaurant and I counted 5 people at the lunch shift who clearly depend on his business to feed their families and live in Belgium. Create opportunity for those willing to take it. Thats impact.
So what about that starving child in Sudan or Earthquake victims in Haiti? Short answer is I don't know, maybe you should consider giving your time and flying out to these locations for a few weeks or months to do what you can if it makes you feel better, but the answer isn't in giving a dollar to a relief organization who spends 98 cents on its operations and gives 2 cents to the children. I attended a presentation by the COO of a prominent global charity not too long ago where she was updating us on Haiti, and I was sadly disappointed. I came away feeling even less confident that these people can competently manage the money we give them blindly. But I do admire them for doing what they do and that brings me to my next and final point.
There are mostly wonderful people working in charities, non-profits and NGOs who have nothing but the best of intentions. The fact that their organizations are inefficient should not stop you from giving your money to them if thats what you want. Its your decision. But I'd encourage you to prioritize and be much more stringent about who you give it to if you want to truly have an impact. And I urge you to step back from the emotions of charity for a second and rethink the credibility of outrageous movements like "Banish Poverty Forever" or "Banish Hunger Forever" that ignorant celebrities chisel in your brain. These sound good but they are lost at the outset and do not benefit those intended. A dose of reality is truly needed so we can actually make a difference in the world.
My advice to you 'Givers' is to look past the teary eyed causes and find the kind organizations and projects to get involved with where you can actually see the direct impact of your donations, time and intellectual property. For example, I have found the most deserving organization to give to this past year in Robert Morris University, a stellar school in my new home town of Pittsburgh. Having spent time with the President, his management team and some of the Deans, I can tell you I didn't hesitate to take out my checkbook and donate a significant part of my annual giving dollars to them. They are making things happen and the energy on campus from students to teachers to Alumni is electrifying. I didn't get the same vibe from CMU or Harvard who have monster endowments. The RMU community are doing great things and I'm not even an Alumni.
I'd love to hear your thoughts about this subject. There is so much more to say, so many perspectives to write, but the night is calling and my flight back to the US awaits me. If you take anything from this unusual Nomad post let it be this - you alone can make more of a difference in a single person's life than any organization or charity by simply being the best at what you do. Go out and make it happen.
Posts
Great post!
ReplyDeleteI really love this discussion and shift towards trade over aid. With the increased movement towards 4th sector business types, 3Lc's, and social entrepreneurship, I think we're seeing a shift away from traditional giving and more towards social investing.
I hope people do begin to think of their charitable giving in the same way that they think about their investments, and I hope that the non profit sector can move towards asks that are framed as investments, not hand outs.
The Haiti situation is abhorrable. Now the birth rate has risen 10x due to the women being raped. Where is the UN. Seems like the US or some country could send in a peace keeping force to stop those vigilante men, and the sin they do. All the money that was sent there and no one is truly in charge of a program to rebuild Haiti.
ReplyDeleteAlso if the birth control in the poor countries was under control, that would also raise the standard of living there. As the poorest in this country are the ones who have children they cannot care for and get in the poverty game.
However, as you said there are some charities that are right on and we should be scrutinizing exactly where our dollars go. Recently Feed the Children-- had a terrible break up with the founder and his daughter using the money for themselves. They have reorganized and trying to get back on their feet. Of course I asked them why did it happen in the first place. I support World Vision.. They have actually made some of the people they work with--self sufficient. I was impressed when the Tsunami hit that they were already there and had been helping the people in the region before it hit and thus were able to help more since they were established. They were interviewed right after it happened.
Very thoughtful post, Shah!
ReplyDeleteAt the risk of starting a side debate, my only thought is that you somewhat cloud the main reason for generous giving in the US under the heading "immigrant culture" - I think it worthwhile to specifically mention faith/religion. It is largely the God of the Jewish and Christian peoples that drives the conscience of our cultural sense of giving...