U.S.A.I.D., the American foreign aid agency, is conducting a trial that measures the impact when poor people abroad are simply given money with which to decide whatâs best for themselves.
This is loaded with interesting connections to our recent discussions.Â
The first thing that comes to mind when reading this is the idea of mission advancement. Salt Lake City, Utah was able to eradicate chronic homelessness by simply housing people. They figured out that it was a more effective way to tackle the issue and cheaper for tax payers The idea was to get people housed and then take care of the aspects that lead to homelessness. People in stable situations that have their basic needs met have the head space to critically deal with some of these heavy issues.The idea of giving those experiencing poverty money, reminded me of this sentiment.Â
We have also discussed reasons people give and the factors that go into someoneâs decision, one of these being percentage of a dollar going to the programming. This program boasts that 90% of the funds go directly to the programming, eliminating the âoverhead costs.â While there is definitely something to be said for simply giving people what they need, are there any local educators on the ground that can help people manage these finances if they are unsure of how to properly allocate funds and create a budget? By removing NGOâs from the equation, is there a line of accountability for how these funds are used, and should there be? Should creating a sustainable and self-sustaining financial growth model be part of an international giving program like this? Another question I have is if these incredibly direct approaches prove to be more effective, what consequences may come from eliminating NGOâs that have delivered various services in these countries?Â
I am interested to see the effects of this program and the results that these researchers find as it continues. I do believe that empowering individuals in this way can be effective, as opposed to creating a model that creates a bandage to their problems while making the donors and volunteers feel like they are delivering a saving grace (like voluntourism can do), but there can be some issues if some factors are not considered prior to building a program like this.Â












