Philanthropy, foreign policy and sustainable outcomes

There's a lot of talk lately about what role the Obama government should play in helping emerging countries ascend. Most attempt to marry philanthropy and relatively short-term, Western ideas about what we think "they" really need. I wonder if we're simplifying too much and over-committing to the idea of philanthropy?

When philanthropy does create an outcome, how long does it last once the funds and the Westerners leave? If the intervention is not in the natural flow of the local community, and something that they would make a trade-off for within their hierarchy of needs, how often does it succeed?

I'm reminded of a story I read a while back about a Microsoft executive who visited a school in Guatemala - essentially someone donated a satellite dish + internet access to a school; at some point they stopped paying the satellite bill, and there ended that project.

Sustainability is the panacea for all intervention. But things only stick if all the players wish it to, and would make the trade-off for it vs. other priorities. In many emerging communities, the other priorities include food, shelter, income, and healthcare. Even education doesn't always make the cut.

The most successful recent technological intervention in emerging communities is the mobile phone. The innovation was in the sale of cheap handsets and pay-as-you-go plans. The Western investment was typically to build the network (cell towers), and provision very simple, cheap handsets and SIM cards via local retailers.

It succeeded because it was about business not philanthropy. A market investment was made to create a symbiotic relationship - provide a service that the local community wants and willing to pay for. It took time for this to happen, but now there are ancillary businesses that have grown organically from this and it is self-sustaining.

Historical successes include the TV and VCR, though they are used sporadically since they need continuous electricity, which a mobile phone does not. I think this is one reason why PCs don't (and won't) do so well.

I would make the bet in the mobile communication arena (vs. PC computing, or pure internet access, or whatever), and I would consider the following for-profit ventures:

1. Provide ubiquitous and very-low-cost mobile data plans, and provision low-cost data-enabled mobile phones
2. Build a simple, pervasive text and mobile data (3G, GPRS, etc.) e-banking and e-transaction service 
3. Create and distribute mobile educational curriculum, much like Kumaras Pillay does in South Africa
4. Develop mobile content on how to use #1 & 2 to create your own e-business in local languages

The Obama administration should promote investments that create a symbiotic relationship between the Western companies, local companies, and local consumers, but that's just fluff.

The Administration's real role should be to catalyze the ITU and the World Bank to negotiate multinational, multi-party deals that enable #1 & 2, and spawn companies in partnership with UNESCO to build pan-African (say) mobile curriculum for #3. If the large Western companies have a brain (and they do), they will help build #4 in each market to drive increased adoption and usage.

The "owner" should be Hillary Clinton, the new Secretary of State. It should take six months to negotiate the deals with the various parties, and 24-36 months before we see results from pockets of  critical mass. It should cost relatively little to do this (low-interest loans to upgrade cell towers for data access (~$25mm),  implementation of a simple e-banking model (~$1-2mm), and curriculum development ~$2-3mm)), and say 3-5 people in the Administration to oversee progress.

The citizens would benefit if the services were of enough interest to warrant spending their very scarce funds. The local companies would form organically and benefit their communities. The larger (and sometimes Western) companies would benefit because their markets had expanded.

America would benefit because it believes (as Obama said many times) in peace through improved global education, prosperity and communication.

A rising tide lifts all boats. As value is provided to the lowest layer, its worth rises, and goodness flows throughout the whole system. It might take more time (3-5 years) than we'd like, but the result is pervasive, locally-owned and sustained improvement, and a good step towards peace and prosperity for all.