The IHF just launched its $20.09 Stimulus Campaign, an effort to stimulate sustainable development by investing where it matters most: at the grassroots in developing communities around the world. As the IHF team has talked over this campaign, we’ve gotten to thinking a lot about what makes $20.09 so much more than just a catchy idea. Everyone from Domino’s to your local car dealer has played on the stimulus theme, but the IHF $20.09 Campaign does more than just riff on a popular concept - it actually does some good in the world economy. As we move ahead with the campaign - and as you consider joining our facebook group, following us on Twitter, or donating - here are a few thoughts about what takes this effort beyond gimmicky to dynamic and life-changing.
1. Economists emphasize the importance of investment for long-term growth and economic prosperity. Investment, of course, can take a lot of forms. It can be, say, the purchase of a new machine at a factory - investment in physical capital. But at least as important is investment in human capital, the skills that people have at their disposal to use for the benefit (or detriment…I’m looking at you, Bernie Madoff) of the world around them.
You can think of it like this. All economic products are made up of “stuff” and “ideas” (or particular ways of using “stuff”). A table, for example, is made of wood (its “stuff”) cut and put together in such a way that you can put a fruit bowl on top without it falling off and sit around it comfortably (the “idea” of a chair). Since there is only so much “stuff” in the universe, economic growth depends on the production of new ideas that make possible more or better uses of stuff. Investing in physical capital is using an idea to turn stuff into desireable things. Investing in human capital is creating the conditions necessary for new ideas and new uses of things. In the long-run, all economic growth depends on the growth of human capital.
The IHF invests in human capital in our partner communities by supporting early childhood education in Mexico, helping young people earn secondary school diplomas in Guatemala, training Indian craftsmen to make health-enhancing ventilated cookstoves, and more. In the short-run, these investments benefit the people who receive them directly, but in the long-run, the skills that those people gain improve the lives of their entire communities and make an impact on the world as a whole. Where once it was impossible to build a ventilated cookstove, it now becomes possible. The people who live healthier lives because of that stove can now devote themselves more fully to improving the conditions in which they and their community live. The community as a whole can contribute new skills and ideas to the broader world. And…you see how it goes.
2. This all seems well and good, right? But, I can imagine someone asking, since this is a down time in our country, shouldn’t we keep as many resources here as we can? Now, I’m inclined to make the moral argument for why that’s not the case. And I hesitate to make the case for why it’s in the best interest of Americans to contribute money to projects for people in other countries, because I think we should do it regardless of whether it’s to our advantage. But with that caveat, let me briefly suggest why, in the end, it might work out better for all of us if those of us in more prosperous countries keep giving to projects like the IHF’s even when we’re down.
First, the long-run growth of economies in the Global South is important for the health of wealthier economies like America’s because the latter produce primarily complicated products and services that are relatively high-cost. If people in, say, Nicaragua can’t afford anything that the American economy has to offer, the US loses out on export possibilities. So, when developing economies grow, so do markets for American goods and services.
Second, improving living conditions in the Global South, like the IHF’s projects do, will speed up the adoption of environmentally friendly technologies and reduce many types of environmental degradation, such as deforestation for the collection of wood for heating and cooking, which removes carbon-cleaning trees and increases the risk of natural disasters like the 2005 mudslide in Santiago Atitlan, Guatemala.
So, there you have my thoughts about why the IHF $20.09 Stimulus Campaign makes sense. I’d love to hear what you think. Do you have questions? doubts? other ideas? Stick them in the comments below.
The Brown IHF members who hosted an inaugural party at the SYJAC community center January 17, 2009 were essentially different from the group of students who walked dazedly through the Mexico City airport on January 5. Not only were we a bit more tanned (or sunburned in my case), but we had each learned a great deal about ourselves, the world, and the connections across the global community. While we all had prepared ourselves for this trip as best we could by reading up on the political, social, and historical situations in Chiapas, researching the cultural roots of the local Mayan community, and browsing through travel sites, there was no way we could have readied ourselves for the full impact this trip would have on our studies, our world views, and even our own personal identities and values.
On the trip we faced challenges and gained critical knowledge about the developing world and our own capabilities and limitations in driving change. The significance of our presence at SYJAC went much further than the tangible effects of a new paint job for their daycare center; rather, our impact was in the symbolism that our trip held for the local community. Our trip demonstrated that there is a larger world community invested in the welfare of the community SYJAC serves, and this global interest legitimizes and reinforces the work of the community center. While initially this role felt uncomfortable for our group, we grew to realize that the greatest asset we can offer to SYJAC and the local San Cristóbal community is through our identities as American university students. Furthermore, the significance of our interest in their situation is that we have the networks and resources to connect them to the solutions that they as a community need.
While we are still struggling to understand our own utility for the purposes of a community center and grappling with the role we should play as outsiders to a community organization, we have come to realize that our impact went much further than the sunny walls we painted and continues to have a lasting effect through our maintained connections with the people we met and friendships we made while working at SYJAC.
Secretary General Ban Ki Moon opens the UN’s 2008 report on progress towards the Millennium Development Goals with several cautionary notes. “The economic slowdown will diminish the incomes of the poor; the food crisis will raise the number of hungry people in the world and push millions more into poverty; climate change will have a disproportionate impact on the poor.” Secretary Ban goes on to attribute some of these threats to progress on a lack of concerted effort and attention by developed nations.
Some people say that development aid has a decreasing role to play in improving livelihoods. There is no question that development – economic and social – must be led from within communities, states and regions. But can we really expect developing nations to unwind the issues facing them in an intensely interconnected world without aligned efforts from developed countries?
Secretary Ban goes on to say that “the current troubled climate poses a risk that some advances in reducing poverty may unravel. Some gains, however, cannot be undone. A child will forever benefit from the primary education he or she might not otherwise have received. Many individuals are alive today thanks to a measles vaccination or antiretroviral therapy for AIDS. These and other examples provide ample evidence of what can and has been achieved with sound strategies backed by political will and financial and technical support.”
As we all weather this uncertain time, we can’t forget how poverty, or social and political instability increase exposure to an severe economic downturn. We also can’t forget some basic human facts. The ties that bind are between people, and then between communities.
In a time when we might want to turn inwards, and when a dollar is worth more than ever, organizations like the IHF are more important than ever. By deepening ties between communities, we are able to stretch donors’ dollars to very great lengths. And by building sustainable partnerships between communities abroad and students in the US, the IHF creates a groundwork for the ongoing support that developing communities and countries need. As Secretary Ban says, some changes can never be undone. This goes as much for a child in the developing world as for a student at a top US university.
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