Traditional charity and aid alone will not solve the problems of poverty, according to Jacqueline Novogratz in her talk given at TED in June. Jacqueline is the founder of Acumen Fund, a non-profit venture capital fund for the poor, which takes a business-like approach to helping people out of poverty, emphasising sustainable bottom-up solutions rather than traditional top-down aid.
Markets alone are also not sufficient to solve the problems of poverty. Businesses designed to address poverty still need philanthropic support, strategic advice and access to appropriate contacts and new markets. On a micro level, there is a real role for a combination of investment and philanthropy. “Patient capital” is money which is invested early in the life of an enterprise at below-market returns in exchange for long-term benefits.
What does it take to ensure that people currently living in poverty can give their children access to opportunities to live lives of great purpose? According to Jacqueline, it takes a commitment from all of us to refuse trite assumptions, get out of our ideological boxes, invest in entrepreneurs who are committed to service as well as success, and open our arms wide expecting very little love in return but demanding accountability and bringing accountability to the table. Most of all, it requires that all of us have the courage and patience to really start listening to each other.