Sunday, November 23, 2014

Paradox in the social sphere

Remember: Poor people have money

When you give out of pity, you tend to create a dependence and a mindset that the rich should give and the poor should just receive. If the poor is "given" enough to get buy and by working, this giving stops, it will destroy ALL motivation to work.

Subsidy / Wage Gap

If you work, you get less support and less that when you do not work. Sometimes, subsidies prevent people from working as the rules for subsidies prevent those low income earners from getting subsidies, making them poorer than those on subsidies.

Free things make destroy local economy

When you donate food to end hunger, the food is usually imported and local farmers and workers lose their jobs because they cannot sell. Ending up with more people who need food.

Free / subsidized housing.

When the best of intentions build subsidized housing, free schools and offer jobs, millions will move in. If there is not enough money as the money is intended for thousands, there will be slums created, schools will be overcrowded and there will be not enough jobs. Eventually, education standard will be poor, living conditions bad, and jobs scarce -- leading to more poverty. (Dertu, Quest to end poverty)

Owen Barder (Center for Global Development)

If we believe that trade is important, we could do more to open our own markets to trade from developing countries. If we believe property rights are important, we could do more to enforce the principle that nations, not illegitimate leaders, own their own natural resources. ... If we believe transparency is important, we could start by requiring our own companies to publish the details of the payments they make to developing countries.

This is seen in many developed countries as well, like rich families owning everything, creating monopolies and unfair advantage as they can influence government to create laws which favor them.

Free Mosquito nets

Angelina Jolie and a few other famous artists gave out more than 1 million mosquito nets to fight malaria, destroying the whole industry of mosquito net makers and repairs. Many could pay for mosquito net repair decide to just use the new ones which put many out of jobs.

More food /= better nutrition.

In many projects where people are given better food, more protein. (Subsidized diets) In many cases, the receipients who save some money on food do not use the protein to subsidize their diets, but decide to make it what they only eat, and spend the moeny saved on cigarettes.

Unequal perception triggers wrong innovation.

When a neighboring village gets a clean water project and other benefits because of polluted water, many other villages will soon have polluted water, because many of them may be smart enough to see that having polluted waters may result in them having cleaner drinking water for free.

Funding do not fund results.

In many cases, funding is spent on the doing. Many people like donate to initiative to fix clef lips, give stationaries to students, deworming kids. And funding can be massive to impact millions, yet there will be no funding given to investigate reports whether doing such initiatives could reduce poverty, build capacity or give the kids a brighter future. No tests, no accountability, no results.

Overheads to run charity well are seen as "inefficient"

Most of the time, NGOs are compared based on total % delivered to beneficiaries. However, they are not measured by quality of service rendered, or transparency and detailed reporting. As intelligent humans, many NGOs pay their staff very little, and provide bad service.

A soup kitchen using a 60% of donations for free food may be seen as a worse soup kitchen than one using 80% of donations for free food. But here are the numbers.

Kitchen 1
$10,000,000 donations per year
$2,000,000 Auditing, Administration infrastructure and salaries
$2,000,000 Marketing and fundraising

Quality campaigns and events are run to engage donors, Donors can visit and communicate with receipents directly. Quarterly reports given, 2,000 beneficiaries served.

Kitchen 2
$200,000 donations per year
$30,000 for Salaries
$10,000 for Marketing and Administrative

Not much awareness created, run by volunteers. No reports or accountabilities. 30 beneficiaries served.

With just some numbers, it is hard to compare charities as numbers do not show the whole picture.

Success, scale, fail

This is seen in many projects, whether in entrepreneurship or social impact. The skill set to run a startup and to run an enterprise is very different. without the abilities to delegate, many founders of these companies will fail to scale.

Through lean startup, many people are able to run a simple model to verify their assumptions and test their ideas, and once proven successful, some are able to get funding to scale. Our idea of think big, scale fast in many cases are the root cause of these failures.

When a VC or a large foundation provide a big grant, they expect results fast. Hence the implementation is done without further testing and based upon initial prototype. In many cases, the situation is different and without understanding other communities that they wish to operate in, the assumptions that may have worked with the prototype may fail. And with testing and firefighting multiple sites at the same time, catastrophic failures is inevitable.

Thursday, November 20, 2014

Entrepreneurship Training at Najayo Jail

Najayo Jail in San Cristobal holds about 2000 inmates and is in the state of transition from a traditional overcrowded prison to the new model of prison (Restorative system). However, at the end of October, there was a jail break which resulted in 4 deaths and many seriously injured.

There is also much overcrowding in the old part of prison, with many prisoners sleeping on the floors and in small "cubes" made they built as shelters which they buy. The stories of overcrowded prisons is true, and its shocking to see so many people inside the prison having their  own economy, with Colmado and barber shops all around.

Despite it all, some inmates are still trying to study, and many interested in improving themselves inside the prison without their external distractions.

Civil Innovation Lab gave a free entrepreneurship talk to the prisoners and close to 100 showed up. Most of them came prepared with paper and writing materials and asked lots of questions. There is a strong interest in entrepreneurship and when questioned whether fear will stop them from taking action, and will they be able to do it and succeed, the room roared with the cheer "YES WE CAN!"

It was quite inspiring for these inmates to have experience so much to be still interested and willing to learn a new skill.


Of course these ideas of training inmates in entrepreneurship and then starting a microfinance or seed funding platform is not without resistance. When pitch to people outside, they tend to as the simple question. "Why are you not helping other Dominicans?" The fact is, we are. Civil Innovation is participating in the Global Entrepreneurship week with many events in the Dominican Republic which includes this in the prison.

There is actually a little more urgency with working with the prison. Firstly, when the person is in prison, they are using resources of the country. There are cost involved in running the prison, organizing events, food, water, medicine.

There are many programs giving these inmates jobs when they are released, but many of them end up in prison again. There is also a 15% unemployment rate in Dominican Republic and the odds are against these ex-inmates like anywhere in the world.

The idea of starting a social business run by ex-inmates hiring other ex-inmates is trying to reduce the rate of them returning to prison. As an ex-inmate, they can understand and communicate with each other better. There can be less discrimination and as long as they perceive to be paid fairly, We think that there is a higher chance for the ex-inmate to stay in the job.

This is our social experiment, and if there are any information or similar projects, feel free to contact me, and I am glad to put up more information once I get some results.

-- Robin Low

Entrepreneurship training at Najayo Correctional and Rehabilitation Center

Civil Innovation Lab has been planning to work with prisoners on giving them options to support themselves. Getting a job is tough in their situation as many employers do not want to hire ex-prisoners. In the case of Dominican Republic, where there employment rate is 15% (est), it is not easy to find a job that pays living wages.

In a country where there are lots of problems, there can be lots of opportunities as well. We want to investigate whether the (women)prisoners are interested in starting their own business, and so we ran a free social entrepreneurship talk to share lean startup methodologies and talk about entrepreneurship mindsets.

We were surprised by the overwhelming response and feedback, and many of them like to start their own business, and are not sure how. Some of them have pretty savvy ideas and after understanding social entrepreneurship, they asked many question and had concerns about resources and reach, and wanted to learn more.

As such, Carlos Miranda Levy (Certified lean started trainer), co-founder of Civil Innovation Lab will run a 8 week Entrepreneurship bootcamp to train lean startup methodologies to them and work with them on their business model and prototypes.

Civil Innovation Lab will also seek to create a funding platform to seed fund some of these companies to get them started, and hopefully employ others in their communities as well.

-- Robin Low

Tuesday, November 18, 2014

You don't need to be rich to give.

A story of a woman living in a rental flat with public assistance allowing a homeless man to sleep in her house is very heart warming.

There is always a misconception of selfish people to believe that you need to be rich in order to give, but how does one consider themselves rich?

This lady in a wheelchair living with public assistance gave a safe space for a homeless man to sleep. Her action speaks a lot and puts a lot of us to shame as we just think of the negative things.

The reply from the government is also very disturbing.

HDB says...
"HDB rental flats are heavily subsidised and meant for needy families without other housing options and family support.
"Therefore, only tenants and authorised occupiers are allowed to occupy the rental flats.
"Subletting of rental flats is not allowed, and will be investigated.
"Some of these needy cases (of individuals living in an interim place) may have deeper underlying personal and social issues, which extend beyond housing.
"If HDB is alerted to such cases, we will work with the relevant social and government agencies to see how we can extend more holistic assistance to them."

So are they going to take action on people allowing homeless people to live in their homes?

-- Iron Bowl