Connect With Us
YouTube
RSS

182 posts categorized "Poverty Alleviation"

Charities and the ‘Compassion Gap’

July 09, 2014

Rosenman_headshotAny traces of the "compassionate conservatism" championed by George W. Bush in the early days of his administration has long since evaporated under the heat of Republican extremism. Today, more than three-quarters of American conservatives think the poor "have it easy," while fewer than 10 percent believe the "poor have hard lives" and receive inadequate assistance.

What's more, many conservatives believe the poor have easy lives because "they get government benefits without doing anything," ignoring not only the limits of public aid, but also the obstacles that must be overcome to obtain food stamps, Medicaid, day care, public housing, and other kinds of government assistance. In fact, more than 80 percent of conservatives also say that the government programs on which the poor so desperately depend do more harm than good.

Can four out of five conservatives really be so hard-hearted that they cannot imagine how profoundly difficult life is for people without enough money to feed their children, to fill an essential prescription for an ill parent, or to access a safe place to leave an infant while they try to find a part-time, no-benefits, minimum-wage job that gives them no hope of escaping what in many cases are slum- and crime-ridden neighborhoods? "Have it easy?" Really?

These findings are consistent in that more than half of conservatives believe that people are poor because of "lack of effort," while fewer than 30 percent of conservatives believe poverty results from "circumstances beyond [an individual's] control." Despite all we have learned over the years about the causes of poverty and related ills, conservatives seem bound and determined to reduce the issue to the simple fact of people making bad decisions and doing bad things.

That kind of thinking ought to be greeted with dismay by most charities, even if their missions address problems other than poverty. Blaming the victim does not make the work of nonprofits any easier, does not incline people to support well-meaning interventions, and, at the end of the day, is the opposite of charitable. Indeed, with respect to most problems of concern to nonprofits, there is no path forward if people are seen as the sole source of their own troubles.

Continue reading »

NGO Aid Map: See More. Do Better.

June 13, 2014

Headshot_julie_montgomeryThere are certain moments in your life that you never forget. Some of mine include graduating from college, buying a home, and having a baby. The same thing happens in one's career, and for me, Wednesday was one of those moments.

For the past six years, InterAction has been using online maps to help tell our members’ story. Wednesday was important because we launched a new global map on InterAction's NGO Aid Map, one that will allow us to tell this story as it applies to all countries and all sectors.

As the world of development actors continues to grow and expand, it is more important than ever to make aid smarter. One way to help improve aid is through data sharing, but in the midst of a data revolution, how does one make sense of it all?

It may sound simple, but gathering up-to-date, standardized data from NGOs is no small feat, even for InterAction — an alliance made up of more than one hundred and eighty individual organizations working to advance human dignity and fight poverty around the world.

Collecting data is one thing, but ensuring that it stays relevant, useful, and accessible is a massive undertaking. That is why we built the NGO Aid Map, an online platform that demonstrates, using maps and other data visualizations, where our members work and what they do around the world. Through data, we can help determine whether we are on the right track to fighting poverty.

Screenshot_NGO_AidMap

Now that you know why Wednesday mattered to me, I'd like to share five reasons why NGO Aid Map should matter to you:

Continue reading »

It's Time to Make the American Dream Available to All

May 27, 2014

Headshot_geoff_canadaThe barriers to success that black men face have been in plain sight for decades, so it is particularly heartening to see a movement taking shape that is specifically crafted to address these challenges and change the odds for one of the most disenfranchised populations in America.

I was on the board of trustees of the Open Society Foundations when the idea of a black male achievement campaign first came up. While it was obvious that something needed to be done, we immediately found ourselves facing a philosophical dilemma: Was it right to target just one group when other groups also need help?

In a country where cultural and racial relations are as complicated as they are in the United States, people are understandably hesitant to publicly announce they are going to help one group while seemingly ignoring all others. Eventually, we concluded that tailoring our efforts to a group that has a common history and a resulting set of common challenges is absolutely the right approach. Black men in America — while individuals in their own right — are heirs to a unique historical experience. After slavery was ended by the Civil War, black men faced decades of institutional racism, Jim Crow and segregation, public lynchings, and disenfranchisement. More recently, they have been abused and demeaned by a toxic street culture and media stereotypes that glorify self-destructive behavior.

If we are going to close the achievement gap and end what the Children's Defense Fund calls the "cradle to prison pipeline" for black boys and men, we need to take into consideration the insidious context of their situation. Indeed, as the Campaign for Black Male Achievement has taken shape, gaining traction even as parallel efforts have emerged, we've seen how necessary and overdue such an effort is. While there is certainly a lot of day-to-day work still to be done, the narrative and national dialogue have begun to change. Ignorance and fear are giving way to empathy and intelligent action.

We have, in Barack Obama, a president who has given the imprimatur of the White House to the idea that racism will not be sanctioned or ignored by society.  In the aftermath of the Trayvon Martin shooting, the president's empathetic response created space for an honest, open, and clear-eyed public discussion of race relations and the stubbornness of racism in America.

Continue reading »

'Under Construction': SEARAC - Washington, D.C.

May 20, 2014

Under Construction is a multimedia online exhibit showcasing some of the best and brightest organizations working with males of color. The UC team of filmmakers, photographers, writers, and nonprofit experts worked directly with each of these organizations for several weeks. The collaborations yielded comprehensive portraits of the services men of color receive. Each profile features a short video, a photography exhibit, a visual program model, and a narrative essay detailing the efforts of these organizations.

Under Construction is a project of Frontline Solutions and was made possible through the support of the Robert Wood Johnson Foundation. For more profiles, click here.

He'd stayed calm as a cop dumped the contents of his backpack onto the sidewalk.

Scenes like this had already played out with most of his friends. Today he was riding his skateboard to school and running late, and now it was his turn to be the law's concern. He was told to take his shirt off so they could take photos of his tattoos. All the while he stood quietly, insisting that he wasn't in a gang, saying softly, "I don't belong to nobody," over and over. But when he saw the cop get angry and toss his skateboard into the street, he ran after it, picked it up, and came right back to the questions. At 14, that plank of wood and those wheels were the only place he felt good.

"What gang are you in?" the officer asked Anthony Hem, a son of Cambodian immigrants. How many times would he have to say it? "I don’t belong to nobody." Finally the officer went to his car, came out with a list of area gangs, and picked one near the top. "He just came up to me and said, 'Now you're on gang file. You're from this gang now, the Asian Boyz'," Hem says. The Asian Boyz are affiliated with the Crips. From now on, that's how the law would see him.

Under-construction-searac-2In a country where conversations about racial equality are focused heavily on African Americans and Latinos, the Southeast Asian Resource Action Center in Washington, D.C., serves a different population. SEARAC supports grassroots organizations that are looking out for kids like Hem, children of refugees who face many of the same issues other minority groups face, like poverty, violence, prejudice, racial profiling, and despair.

The national organization focuses intently on state and national policies and helps organizations like Khmer Girls and Boys in Action in Long Beach, California, and the One Love Movement in San Diego, relentlessly push lawmakers to reconsider policies like the one that put Hem in a gang file with no notification of his parents and no due process for having his name removed. The policy knowledge that SEARAC shares serves as a tool that smaller organizations integrate into their mentoring and cultural education activities. The collaboration helps foster young leaders who can speak for a refugee community still reeling from the effects of genocide and war.

Continue reading »

5 Questions for…Michael Weinstein, Chief Program Officer and SVP, Robin Hood Foundation

May 06, 2014

In April, the Robin Hood Foundation, in partnership with the Columbia Population Research Center, released the results from its first Poverty Tracker survey, a first-of-its-kind effort to examine income poverty, material hardship, and health in New York City. Based on a sample of twenty-three hundred household across the city's five boroughs, the data from the survey reveals that poverty and hardship are even worse for New York City residents than official government measures indicate.

Recently, PND spoke with Michael Weinstein, chief program officer and senior vice president at Robin Hood, about the results of the survey and the larger aims of the Poverty Tracker project.

Headshot_michael_weinsteinPhilanthropy News Digest: Robin Hood, in partnership with Columbia University, has just released the results of the first Poverty Tracker survey. The federal government has been tracking poverty in New York and around the country for more than fifty years. Why is the time right for a new look at poverty in New York?

Michael Weinstein: There are two answers to that. First, what’s different about this survey is that we plan to re-interview the same families every three months for two years, which will allow us to build a rich, dynamic picture of people's lives and how they change over time. For the first time, we'll have a tool that helps us understand how people fall into poverty, how they adjust to changing circumstances, and how they deal with the economic pressures in their lives. That's not something you can do when you change your survey sample every year, as the government does. And the second thing that distinguishes our effort from other surveys is that we're not just looking at income poverty. We're looking at what we call material hardship. We're looking at whether people can pay their utility bills, their doctor bills, whether they can put food on the table. We're asking them about their health, and about their debts, and the health consequences of indebtedness. We're looking at the details of people's lives, particularly people at the bottom of the income ladder, in a way that goes well beyond just measuring income.

PND: What's the headline finding from the first report?

MW: That the level of need and hardship in New York City is much higher than I, or I think anybody, would have predicted. There are three salient numbers, and each of them speaks volumes about the reality faced by too many New Yorkers.

The first is that more than half of all New Yorkers are either poor by any reasonable definition or are trying to deal with a severe material hardship, meaning they can't afford to put three meals a day on the table for their family, they can't afford their doctor bills or prescription drug bills, they can't pay their utility bills, or have been forced into a shelter, or have had to move in with a relative.

The second surprise was rather stunning: more than 20 percent of New Yorkers who had incomes more than three times the revised and improved poverty threshold were unable to pay for all their necessities at some point during the year. To be clear, we are talking about the revised poverty threshold which was developed using the same methodology as the federal government's Supplemental Poverty Measure. That measure takes into account government benefits such as food stamps and tax credits, and also adjusts for local costs of living. Under that measure the threshold for a family of four in New York City is just over $30,000. So what we learned is more than 20 percent of families making three times that — over $90,000 — were unable to pay for everything they needed. I could never have imagined the level of material hardship in New York City was that high.

And the third surprise was finding that nearly 25 percent of the population of New York City suffers from a work-limiting health problem.

Continue reading »

Financing Sustainable Development Around the World

April 11, 2014

(Tensie Whelan is president of the Rainforest Alliance, which works to conserve biodiversity and ensure sustainable livelihoods by transforming land-use practices, business practices, and consumer behavior.)

Headshot_tensie_whelanMore than two billion people around the world are dependent for their livelihoods on five hundred million smallholder farms. Yet these smallholder farmers, who typically have less than five acres under cultivation, operate far below their potential because they lack access to the technical assistance and credit they need to implement better farm management practices.

Global smallholder demand for credit is estimated at nearly $500 billion. While "social finance lenders" typically lend to smallholders who don't qualify for traditional or commercial loans, they currently meet only a tiny fraction of that demand — roughly $350 million. That leaves millions of smallholders unable to make needed investments in raising their workers' pay and improving worker safety, building waste management systems, and installing new water-conserving technology — all of which contribute to increases in yields and income.

Traditional aid programs aren't likely to alleviate the problem anytime soon, but urging lenders to change their practices could help. A 2013 study conducted by the Rainforest Alliance in conjunction with the Citi Foundation suggests that better data can dramatically improve smallholders’ access to credit. The study, which compared a hundred and ten Rainforest Alliance Certified™ coffee and cocoa farmers in Colombia and Peru with a non-certified control group, found that 90 percent of the certified producers in the survey tracked both revenue and expense metrics for their farms, while only about 30 percent of the non-certified producers did so. The study also found that the average dollar value of loans to certified producers was $5,562, while it was only $3,311 for non-certified producers — a finding which suggests that many smallholders rarely keep the kind of records, including production cost, income, and delivery history, that would enable potential lenders to assess their creditworthiness.

Continue reading »

Weekend Link Roundup (March 29-30, 2014)

March 30, 2014

Our weekly roundup of new and noteworthy items from and about the nonprofit sector....

April_showersCommunications/Marketing

In a guest post on the Communications Network blog, the Barr Foundation's Stefan Lanfer shares some lessons he and his colleagues have learned about communicating in times of change. The first two are simple but powerful: know what you want to communicate, by word and by deed; and know what you don't want to communicate. Check out Lanfer's the post for three more things the foundation got right.

Education Reform

Public school advocate Diane Ravitch has posted a draft version of of remarks made at an education conference earlier this month by Dissent contributor Joanne Barkan on the topic of how to criticize the role of "big philanthropy" in education reform

Fundraising

In today's New York Times, Arthur C. Brooks, president of the American Enterprise Institute, lets readers in on a well-kept secret: Fundraising is fun. The "magic" of raising money for a cause or organization, writes Brooks,

goes even deeper than temporary happiness or extra income. It creates meaning. Donors possess two disconnected commodities: material wealth and sincere conviction. Alone, these commodities are difficult to combine. But fund-raisers facilitate an alchemy of virtue: They empower those with the financial resources to convert the dross of their money into the gold of a better society....

On the Relationship Science blog, Kathy Landau, executive director of the National Dance Institute in New York City, makes an impassioned case for seeing data and relationship building "as mutually beneficial rather than mutually exclusive."

Grantmaking

In a post on the GrantCraft blog, Grant Coates, president and CEO of the Miles Foundation in Fort Worth, explains how a reevaluation of the foundation's grantee selection process helped him and his colleagues realize that leadership often is what separates a "good" grantee from a "great" grantee. "The presence of powerful leadership," Coates writes, "is almost tangible – it's a spirit that employees exude, a confidence that the organization embodies, and an impact that's measurable – true leadership is, in short, a game-changer in the grantee selection process."

Continue reading »

Weekend Link Roundup (March 1-2, 2014)

March 02, 2014

Ukraine_protestorOur weekly roundup of new and noteworthy posts from and about the nonprofit sector....

Big Data

In the Washington Post, Brian Fung reports that more than a dozen civil rights organizations, including the NAACP and the National Council of La Raza, "are backing a set of principles targeting the widespread use of data in law enforcement, hiring and commerce."

With the advent of big data, are "we to assume that government and business will be 'upended', 'revolutionized', 'disrupted' or some other exciting verb but [that] nonprofits and civil society will remain unchanged?" asks Lucy Bernholz on her Philanthropy 2173 blog. Not likely, says Bernholz. "On the contrary, the implications of networked digital data for both addressing our shared social problems and changing how we voluntarily act, how we associate with each other as independent citizens, how we organize for change or protest, are profound. Isn't it time for a real discussion of privacy, association, and autonomy -- about civil society -- in a networked data age?"

Education

Guest blogging on Education Week's Living in Dialogue blog, Paul Horton, who teaches history at the University of Chicago Lab School, argues that "the lack of process is precisely why Common Core needs to be abandoned, especially by public service and teacher unions."

Health

In a post on the Forbes site, Geoffrey Kabat, an epidemiologist with an interest in lifestyle and environmental exposures as factors in chronic disease, suggests that reports that we may "finally be seeing the beginnings of a reversal in the upward trend in obesity" -- a conclusion based on one statistic from a study conducted by researchers at National Center for Health Statistics (part of the Centers for Disease Control and Prevention) -- belies a more sobering reality: there was no change in obesity either in children and adolescents or in adults over the ten-year study period.

Innovation

Innovation in social change works is great, writes Dr. Robert Ross in a special supplement to the Stanford Social Innovation Review, but it's not everything. "In fact," adds Ross, "when it comes to addressing today’s urgent social problems, from education and public health to civil and human rights, innovation is overrated."

Continue reading »

‘Under Construction’: Center for Urban Families - Baltimore, Maryland

February 24, 2014

Under-construction-logoUnder Construction is a multimedia online exhibit showcasing some of the best and brightest organizations working with males of color. The UC team of filmmakers, photographers, writers, and nonprofit experts worked directly with each of these organizations for several weeks. The collaborations yielded comprehensive portraits of the services men of color receive. Each profile features a short video, a photography exhibit, a visual program model, and a narrative essay detailing the efforts of these organizations.

Under Construction is a project of Frontline Solutions and was made possible through the support of the Robert Wood Johnson Foundation. For more profiles, click here.

To learn more about the Center for Urban Families, visit BMAfunders.org.

Joseph Thomas knows how deterioration works. It is the same process for the shuttered blocks of West Baltimore where he was a boy as it is for the man who has no one to talk to. The facades are the last thing to go.

"In prison you have a lot of time to think," says Thomas, who served two years. A quiet, gentle man, he thought about how he had drifted through life since an early age with no one to steer him. Most of all, he thought about his daughters, wondering if he still had a chance to give them what he didn't have, a positive role model. Today, you listen to him talk about his teenage girls, what it means to make it to one of their badminton games, and he almost blushes. He was always in their lives, but he has learned that there are different kinds of presence.

Thomas, 38, is one of more than twenty thousand people who have come through the doors of Baltimore's Center for Urban Families (CFUF), where fatherhood and employment courses re-order their ideas about what a man's life can mean to his family and to the neighborhoods they call home.

The center operates out of an angular, bastion-like building here in Sandtown, where Thomas was a boy. "It was wild," he says. "It was drugs on every corner. It was people getting killed." But in the center's halls, people carry themselves with a refined confidence. They show up on time and sit around boardroom tables, or in large, university-like classrooms. And Thomas, like everybody else, is wearing a suit and tie. "The training wasn't just about training for a job," he says. "It was about succeeding in life."

Founded in 1999 by a former drug addict, the Center for Urban Families has become a model for how to reach urban men, perhaps the country's most underserved demographic. Here in a community that many think of as a "city of neighborhoods," the center's work targets the hardest of these, the street corners that have found infamy as the backdrop of popular television crime shows like The Wire and Homicide: Life on the Streets.

Continue reading »

'A Small Committed Minority of Believers'

February 18, 2014

(Shawn Dove is campaign manager for the Open Society Foundations Campaign for Black Male Achievement. In a December 2012 Newsmaker interview with PND, he discussed the report Where Do We Go From Here? Philanthropic Support for Black Men and Boys.)

Headshot_Shawn Dove_A generation ago, Martin Luther King, Jr. asserted in Where Do We Go From Here, Chaos or Community?, the last book he published before he was assassinated, that "it will take…a small committed minority [of believers] to work unrelentingly to win the uncommitted majority. Such a group may well transform America's greatest dilemma into her most glorious opportunity."

The great dilemma that King wrote about in 1967 still gnaws at the roots of a nation that was founded on a premise of life, liberty, and the pursuit of happiness but was built on a foundation of racial and gender inequality. And while today no single group of people in America can claim that it alone is marginalized — sadly, there are many such groups — it is hard to dispute that disparities faced by black men and boys across a number of indicators, including incarceration, academic achievement, and unemployment, paint a picture of their systemic exclusion from the American mainstream.

The thorny issue of black men and their standing in American society is, of course, not a new one. Yet in light of recent advances in the emerging field of black male achievement, there is reason to hope that the small committed minority of believers who have been working hard to improve the life outcomes and perceptions of black men and boys are swaying the majority of non-believers.

By now, most people have heard that President Obama intends to launch a significant new effort "to bolster the lives of young men of color" in America. Building on momentum that has been growing over recent years, the public rollout of My Brother's Keeper, as the initiative is called, represents a bold response to the challenges confronting so many young men of color. Without a doubt, this is an historic moment for the work and aspirations of many leaders working within and outside philanthropy who have devoted their lives to creating an America where black men and boys can compete on an even playing field of opportunity and realize their full potential.

Continue reading »

For the Success of Boys and Men of Color, A Call to Action

January 29, 2014

(Kenneth H. Zimmerman is director of U.S. programs for the Open Society Foundations. This post was first published on Open Society's Voices blog.)

Headshot_Ken_ZimmermanIn this year's State of the Union address, President Obama opened the door to an opportunity that may be a game changer for millions of boys and men of color in America.

In his speech, President Obama said he believes in the fundamental importance of transforming the lives of young men and boys of color and is committed to bolstering and reinforcing government and private partnerships to work on the issue.

We welcome and are heartened by the president's commitment and recognition that a key part of the effort to increase opportunity for all Americans, regardless of race and gender, is to focus explicitly on helping boys and men of color succeed.

Young men of color face systemic economic, social, and political barriers in their everyday lives. As a result, too many of them are denied educational opportunity, become unemployed, or, worse, face incarceration.

In spite of these barriers, we see men and boys of color overcome the odds on a regular basis —graduating at the top of their classes, achieving leadership positions in corporations, becoming business owners, and being wonderful fathers to their families and valuable members of their communities. They are vital assets to our country, and investing in pathways to build opportunity for them will deliver significant economic and civic benefits to the nation as a whole.

Continue reading »

Nonprofits Must Speak Out Against Poverty and Income Inequality

January 21, 2014

(Mark Rosenman, professor emeritus, Union Institute & University, is a frequent contributor to PhilanTopic. In his previous post, he argued that the rush by many to embrace social impact bonds is another example of private profit crowding out a public good.)

Rosenman_headshotIn the battle to stem and reverse widening economic inequality in the United States, too many tax-exempt organizations are either missing from action or are part of the problem. While charities and foundations in general do much to help the poor and indigent, some organizations and institutions actually make the problem worse through their own compensation practices. At the same time, these organizations and others often go out of their way to disassociate themselves from policy debates on a host of related issues, from increasing the minimum wage to preserving government programs for needy families.

The good news is that both Democrats and Republicans in Congress have started to pay more attention to poverty and economic inequality. Given the profound ideological differences between the parties, however, there is a great deal of disagreement about how government ought to address these problems and what kind of nonprofit programs it ought to support. Unfortunately, charities and foundations cannot truly serve the public interest unless they engage in these debates — today and into the future.

First, though, let's consider the deteriorating economic circumstances of many Americans. While most of the 15 percent of Americans living in poverty are children or adults who do not participate in the labor market, close to 1 in 4 of the 46.5 million people in the United States who are poor do work; that's 7 percent of the country's total workforce, and among other things it means the poverty rate today is as high as it has been since 1965.

What's more, income inequality in the U.S. has reached historic levels. Based on something called the Gini coefficient, the United States now ranks 32 out of 34 OECD member countries in terms of inequality; in fact, we haven't seen these levels of inequality since the 1920s, just before the onset of the Great Depression.

It gets worse. In the three decades prior to 2010, the top 1 percent of Americans increased their share of the national income by 66 percent, while those at the bottom of the economic ladder actually lost ground. Meanwhile, 95 percent of income gains since 2009 have gone to the top 1 percent, who now claim 22 percent of the national income, while the richest 5 percent of American households control more than 60 percent of the country's wealth.

Continue reading »

Fifty Years After the War on Poverty, Americans Want to Renew a National Commitment

January 20, 2014

(Deborah Weinstein is executive director of the Coalition on Human Needs, a partner in the Half in Ten campaign.)

Headshot_deborah_weinsteinIf your refrigerator is empty and you’re not sure when you’ll be eating your next meal, reflecting on the fiftieth anniversary of the War on Poverty may not be your first priority. Unfortunately, a recent survey conducted by Half in Ten, an organization dedicated to cutting the poverty rate in America by 50 percent within ten years, finds that having trouble paying for necessities is a fact of life for at least a quarter of all Americans. And more than half of all Americans say that someone in their immediate or extended family is poor. For millions of struggling families, building a pathway out of poverty is an urgent matter.

Americans, regardless of socioeconomic status, should share this sense of urgency. But wanting to do something about poverty isn't enough. We need to take a hard look at why poverty persists and what works to reduce it. At a time when people increasingly are aware of growing inequality and hardship in America, the fiftieth anniversary of President Lyndon Johnson's speech launching the War on Poverty is a good opportunity to do so. In the survey conducted by Half in Ten, nearly two-thirds of respondents said they believe poverty stems from jobs that do not pay enough and/or from lack of education and health care, while only one in four ascribed poverty to bad personal choices or irresponsibility. Many see — in their own lives or in the experiences of friends and relatives — that the economy is failing to provide people with opportunities to move up, let alone support a family. They are correct. According to a new report from the Stanford Center on Poverty and Inequality, in the three years after the "official" end of the Great Recession, 99 percent of Americans saw their incomes grow by less than 1 percent, while income for the richest 1 percent rose 31 percent. Yes, the economy has grown since the recession, but most Americans are not sharing in the gains.

What's more, an overwhelming majority of Americans (86 percent) agree that government has a responsibility to take action to reduce poverty, while at least eight in ten survey respondents support expanded nutrition assistance, affordable quality child care, universal pre-K education, and raising the minimum wage as steps toward that goal. The War on Poverty introduced many initiatives in these areas that did help to reduce poverty in America. Over a period of four years, LBJ and his team managed to push a stunningly comprehensive package of legislation through Congress, creating the food stamp program, Medicare, Medicaid, Head Start, college affordability programs, job training, housing, and civil rights laws, as well as increasing Social Security benefits. Indeed, a recent Columbia University study shows that when income from food stamps and low-income tax credits is included in poverty calculations, the U.S. poverty rate declined from 26 percent in 1967 to 16 percent in 2012. Similarly, a long-term look at Head Start program participants found they were more likely to finish high school and less likely to turn to crime than low-income children who didn’t participate in Head Start.

Thanks to Johnson's War on Poverty, the official poverty rate in America was cut in half over little more than a decade, bottoming out at 11.1 percent in 1973. Then it began to rise again. Some in Congress who oppose spending federal dollars on programs for the poor point to today's unacceptably high poverty rate to argue that the War on Poverty failed. That is not true. Substantial progress was made, but it wasn't enough to overcome the changes that have transformed the American economy over the last thirty years.

Continue reading »

[Review] 'The Business Solution to Poverty: Designing Products and Services for Three Billion New Customers'

January 04, 2014

The "three billion customers" in the subtitle of Paul Polak and Mal Warwick's new book is a reference to the 2.7 billion people worldwide who live on less than $2 a day — those at the "bottom of the pyramid" (BoP), to use the phrase coined by C.K. Prahalad in his 2006 book The Fortune at the Bottom of the Pyramid; Eradicating Poverty Through Profits. According to Polak and Warwick, however, only one of the case studies in Prahalad's book illustrates the successful execution of a business model based on serving BoP customers. Moreover, in the years since the publication of that groundbreaking book, many companies looking to do the same have failed, even as multilateral organizations, donor countries, foundations, and NGOs have spent tens of billions on development aid — with limited success.

Bookcover_biz_solution_povertyThe Business Solution to Poverty, Polak, a pioneer in market-based ventures designed to serve the poor and the author of Out of Poverty: What Works When Traditional Approaches Fail, and Warwick, former chairman of the Social Venture Network and a co-founder of Business for Social Responsibility, describe "a set of ideas that we believe — in fact, we know — can help end poverty for hundreds of millions of families around the world." It's a sort of mantra they repeat in the same declarative, confidently optimistic manner throughout the book: Only "big global businesses launched either by independent entrepreneurs or by existing multinational corporations" can sustainably serve the poor, because they are the only enterprises large enough to attract enough capital to serve the needs of those at the bottom of the pyramid. Accordingly, Polak and Warwick write, each of these enterprises must set "a ten-year goal of building a customer base of at least 100 million, achieve revenues of at least $10 billion or more per year, and realize sufficient profitability to attract both indigenous and international commercial investors while minimizing [their] environmental impact."

Ambitious? Yes, but then they're talking about nothing less than ending global poverty. So how do they propose to do it?

The key, according to Polak and Warwick, is an approach called "zero-based design," which, they note, begins from "a position of assumed ignorance": Instead of thinking of ways to adapt existing product design to local conditions, "you assume that nothing you have previously done will be suitable...and set out instead to determine what poor people themselves believe will best meet their needs." The application of zero-based design to a business that can market an essential product or service to people living on less than $2 a day, in turn, should be informed by eight principles: a thorough understanding of customers' needs and aspirations; transforming local economies by creating entirely new markets; designing for scale as a central focus of the enterprise; implementing "ruthless affordability" technologies and "supremely efficient" business processes; designing for a generous profit margin that energizes private capital and market forces; designing for radically decentralized last-mile distribution networks that employ local people; aspirational branding; and flexible innovation.

Continue reading »

Newsmakers: Darren Walker, President, Ford Foundation

December 18, 2013

Headshot_darren_walkerIn September, Darren Walker became the tenth president of the Ford Foundation. Before coming to Ford, where he was vice president of the foundation's Education, Creativity, and Freedom of Expression program, Walker served as vice president for foundation initiatives at the Rockefeller Foundation and as chief operating officer of the Abyssinian Development Corporation, where he guided the organization's efforts to develop housing for low and moderate-income families in Harlem.

Recently, Michael Seltzer, a frequent contributor to PhilanTopic, spoke with Walker about the current social change environment, the influence of the foundation's activities on his life, and his hopes for the foundation going forward. Seltzer is a distinguished lecturer at the Baruch College School of Public Affairs and an affiliated faculty member of its Center for Nonprofit Strategy & Management.

Philanthropy News Digest: What is it like to be president of the Ford Foundation?

Darren Walker: Although I've been at the foundation for more than three years, in many ways I still have a lot to learn. I certainly didn't arrive here with any idea I would end up as president. When I walked through the doors of this institution for the first time, it was a transformational experience, because the Ford Foundation represents the ways in which my own life has been changed by philanthropy.

I'm a graduate of public schools. I attended public school in a small town in Texas, and I am also a graduate of the first Head Start cohort, a program that was developed out of Ford Foundation-supported research on early child development at Yale University. After high school, I attended a large land grant university -- thanks to Pell grants, another Ford Foundation-supported intervention -- so I know all about Ford's commitment to public education in this country.

After college, I worked on Wall Street and one day found myself at the Abyssinian Baptist Church in Harlem, which was hosting a representative of the Local Initiatives Support Corporation, a creation of -- you guessed it -- the Ford Foundation. LISC had awarded a grant to the Abyssinian Development Corporation for capacity-building initiatives that would allow it to realize the aspirations of the organization's founders, who had a dream in the mid-'80s that Harlem could be a community that could regenerate itself from within. And the Ford Foundation, through LISC, believed in that dream and invested in it. And that capacity-building grant made it possible for ADC to hire me. So my journey, like the journeys of so many others, has been deeply influenced by the Ford Foundation.

I was thrilled to receive a call from the foundation's board chair, Irene Hirano-Inouye, and have her tell me that the board had voted to appoint me president. Actually, I wasn't sure how to respond, beyond saying, "Yes!" because I know that with this job comes huge responsibility, and that I stand on the shoulders of some extraordinary people.

Continue reading »

Contributors

Quote of the Week

  • "Just because something is statistically significant does not mean it is meaningfully significant...."

    Ashley Merryman, author, Nurture Shock: New Thinking About Children

Subscribe to Philantopic

Contributors

Guest Contributors

  • Laura Cronin
  • Derrick Feldmann
  • Thaler Pekar
  • Kathryn Pyle
  • Nick Scott
  • Allison Shirk

Tweets from @PNDBLOG

Follow us »

Tags

Other Blogs