transforming market of global aid

[chris macrae]

NEW AID +

livelihood educatoon for everyone in communityy

one stop shop fopr all life secure services the community need to buiold capacity in

double looping guft and loans to grow chioldren and to grow vilage mothers microbusinesses

there are some huge subtleties about being the one stop shop for every life critical service villagers need to learn to supply and demand

the trust multiplies across each different service-adam smith is often misunderstood - he defined a free market as one with such transparncy that it was nn the self-interest of every suppplier  as well as every cutsomer to maximise goodwill at every point of purchase- next imagine that when your one stop shop in the village links in every life sustaining service- bottom-up community is the only way to sustain a meta-free market and to do this across generations

the promise of village empowerment in bangladesh to networks of village mothers was we will empower you to maximise your abilities to cross the poverty line but we will aim to take your children way beyond that- so for example brac's first generation of village mothers were illiterate, in some cases their daughters grew up to be the countries best doctors- this is the rising exponential of sustainable community economies multiplyong individulas action learning curves (see csik and freire)  where netwirk trust-flow is continuoulsy audted- yes each local microfranchsie needs positive cashflow but nobody is maximising a quarters returns by externalising risk onto another family

niote for example in 1974 bangaldesh suffered a million people dying of famine- when there isnt enough food security at the local level everyone in agriculture is cooperating first and competing second; north of bangaldesh china had been sufering similat problems, by some estimates 10% of rural peoples starved in the 1960s and this positive components of the reviolutiin china went thriugh included agrarian keuynsism, and women hold up half the sky; during brac's first 10 years there was qute a ,kot of knowledge sharing with china indirectly and directly- of course there was a big difference in the slope of the expoentials because china's diaspora was the 3rd richest in the world and bangladesh's could barely sustains itself (even so remittaces have always been eyed up by brac as one of the three currency earners which explains how brac innovate micforinace in the vilge but always made sure it timed how to get linkedin to every componet of the nation's financial service chain that the poorest needed to invest in)

people know whos who, so that when a model asks for the richer to sponsor the poorer its all obseravble

especially important is the graduation frpom livelihood training fir free to livelihood loans linked into a gauaranteed microfrachise needed in the village- we will see this graduation has surptrising subtleties in differnt markets eg when brac built the nationwide rural helath service

BR@ 1971: Bangladesh got the double short straw of colonisation. After being colonised by the UK. it was then partitioned off  as East Pakitant be ruled by west pakistan when the Brits ceded independence to the whole subcontinent of India in 1947. 24 years later, the new nation of Bangladesh emerged as victor in a war of independence but at a heavy cost- here was the 8th most populous nation with zero money zero markets, ...

Sir Fazle Abed, who had been a leading busienssman as CEO for Shell's national office decided to start up an NGO and go and spend 7 years in a 50 square mile area which had not only been ravaged by war and a wave of refugees, but had just seen a million people killed by a cyclone. As with all rural areas of Bangladesh, this space had no electricity or other modern structures. Sir Fazle had started the world's first bottom up disaster relief and development ngo. He was well known enough to be trusted by global agencies who usually flew in, did relief, and then left. Many of these global brands fund raised on the grounds they were only aiming to deliver the urgent relief, not the later continuous development with particular local peoples

Sir Fazle's idea was always different. :Lets optimise peer to peer skills training to give the community maximum development self-capacity from day 1. This idea has over 47 years made brac into the world's largest livelihood training network, as well as the world's largest NGO parnetrship

HOW WAS THIS FUNDED & SCALED

By 2 models that gtransformed aid and charity

One of them is now called by world bank jim kim conditional cash transfer- what this means is a donor see what happens with the donation - who gets it, what they did with it. They could foir instance come and see the vilagers rebuilding their one room huts but this time to be cyclone proof and to have pit latrines attached.

the other is now called social business- this means that while the organisiaton has a great human purpose like a charity it has a ;positive income model to that it can keep scaling kits purpsoe without having to spend more time fundraising-

For 20 yeras the bangladeshi governmentg was quite happy to let these entreprenurial revolutikons flourish. They had so little tax base that they cpould barely organsiae social service in the cities. Bangladesh Roral Advance Committee was the most extroaridny grassroots networks - remember all the action klearnking was done face to face - there was no electricity, no phones

Sir Fazle spent about 7 yeras in the one rural hub gravitating all the most life saving micrfeanchises - from rice scikence which ended famine to oral rehtdration which stopped infants from dying to many other solutions that vilage mothers could develop

The big move was which solution to replicate fk=irst across the rural nation. Oral refydration was chose and UNICEF happily donated thye moies for it; next brac trained 200000 village parahealth workers creating a rural nation health service sustained by the services vilages=rs paid each para-helathworker to provide.

so who else has trasformed aid the way brac did

11 years after sir fzle abed Muhammad Yunus got the government to pass a special ordinance grameen village bank for the poor- Yunus deign had the same intended models but with the toiwist that grameen's overall constitution would be a bank 70% owned by the poorest members , 30% by government. Once a memcber saving and loan participation had saved a dolar she git a share in the babk. Yunus design was based on sending a young gtradiate team to hist viklage brances- a team of 5 people would host 60 circkes if 60 vilage motyers microicredit every week; the ladies would also have theior own safe space to meet. In effect the ladies became their onw vilage market spoaces. These were local add on not disilar bto brac. Bit notre that grameen had not built a  ntion wide rural helath service nor did it go on tpo build tens of thousands of village schools for the children.

Yunus had earned his postgraduate in USA and was used to lobbuing us congress back in 1970/71 to gain recognition of bangaldesh as independent nation. So Yunus started a global consultancy grameen foundation - however you would have to go through case by case to see which of these international ventiores had someone of the dedication of sur fazle abed or yunsu prepared to spoend however long it took in the villages. Kenya reveals an outstanding case of Ingrid Munro Jaii Bra 1999-2011

Some of tghese partnerships got very complicated as micrpocreditsumit became an annual global summit starting 1977graced by yunus, the clintos, queen sofia and others

There is also the issue of how did the above models translate from the pre-digital age to the digital age. Oddly the summit was much more of a PR stage thn one building the srt lof learning taht would have been needed for many microfinances bto survive the age lof gloing digital whioe preserving the ownership integrity intended in the beyond aid models that Sir fazle had designed

see ;part 2 coming soon -mpesa in kenya- alipay in china - bkash in brac are all fintech models with hybrid ownership networks; and it wasnt really to about 2012 that the g186 asked whether they needed completely different development banking models than the g7's post world war constitutions; digital commecrec has been bluriing the disinction between aid and trade with models that may refocus what nations mean by aid

the big challenge is that we need to transform financial access to the snatainability gals- while the west has 300 trillion dollars of liquid assets, sdg development investments are not seen as asset grade ...however brac has been mentioned as a network partner that could helo the UN test that out

discuss also give directly and big data small and eg nilekani uni id pu

MICROENTREPRENEURS _ MARKET MAKING AT 4 LEVELS

the vilage eg farners market

the rural natuon 200000 villages eg replicable micrifranchises and microifinance, vilage schools

national leding qualiuty level - eg brac poultry engterprise is nations leader- its built on 5 vilage microfanchsies - over 1 million village motyhers livelihoods

worldwide market - eg beeter models of aid with a chnace of achieving sustainbiluty goals, worlds largest cashless bank www.bkash.com

some example of vilage franchsies 

both brac and grameen offered agriucultural frnachsies such as rice, veggies, poluty - however in brac's case there was always an innovation making the vilage mother more productive, whyereas yunus was more focused on empowering woen to run the smallest vilage markets - one for every circle of 60 wome

as well as loans for livelihood training and operating a vilage micrifranchi9s, both lent money for rebuilding vilage huts where hit bu=y disasster, and uograding dwellings with eg pit latrines- brac develooed a network of uo to 40000 baregoot lawters to look after land rights and womens safety, yunus tended to train hi9s circels of 60 to acr=t as one whenever there was a gender conflict- famously yunus used to say that he only offered loans to vilage mothers to build the huts- that way the cultural norm that a husband could order hois wife and children to leave was reversed!

brac developed crafts as a national customer market- grameen develooed cloting called gramen check; 

while grameen weekly circles started with the 60 women chanting the 16 decisions, commitments like all our children will gio to primry school depened ostly on the 40000 vilage chooling brac had built

as an example of how micro the grameen branch of 60 circles was audited - managers were awarded 5 stars- one of which was if they could get toral funding fir the branch fro richer vilage members; another of which was when they were positive income generating

we will aim to see how brac nd grameen models complemented each other in over 20 markets at www.valuetrue.com

brac was funded as a ngo from 1972; grameen bank founded by unique national irdinance 1983 as bank 70% owjed by poor but regulated and part owned by government-

these constitutions ofered different polutical freedoms and constriants as well as attractions to diferent tuoes of partners around the word

in the ore-e=digotal era, bangaldesh microcredit inspired hundreds of cases in other nations but none had all the livelihhod put=rpsoes buult in with the probable exception of jamii bora in kenya

however by 2011 of all the omce famous cases pitched at annaul microcreditsummits from 1997,bracappears to be the only  nationally scaled one that has survived in ownershop tact both the transformation digital brought and the various sorts of politics and fiunacial problems eg subprie that the 2000s brought

china has alsways been an exception, and there are some peculiarities about india's nation wide agricultural bank which does not make as entrepreneurially empowering but does keep its focus on the aprticular chalenges that agriculture faces in sustaining a nation and all its rural workers- the more so as we need to understad how urban sprwal and dirty energy have costs that are often extermalised onto rural peoples unless their is positive mechansims valueing rural peoples