Development Through People and Not Things

I recently attended the Association of Private Enterprise Education (APEE) conference in Las Vegas. I had the luck of stumbling into a session with Karol Boudreaux, of George Mason University, presenting a paper titled “Land Reform as Social Justice: The Case of South Africa”. I was interested in the title as social justice is not a theme you encounter much at APEE events unless it is demonstrate how us egg headed idealist tend to mess things up in our attempts to realize a more just world.
While her paper focused on examining South African land reform policies in the context of Hayek’s arguments about social justice, she mentioned private land reform policies that offer a comparative sample for evaluating land reform programs.

Her research found that state directed land reform policies were a disaster. The numbers demonstrated that transferring functioning agricultural holdings to poor farmers only decreased output with the majority of farmers abandoning the lands within a decade. While not providing very much analysis on why they failed, it appears that the primary issues were the lack of technical and business capacity to manage competitive commercial enterprises.

An exception to the failed attempts at justice through government intervention was the land distribution program of the sugar growers association. While their motives were self-serving, they wanted to lessen the demands for redistributing white sugar growing lands to blacks by increasing the number of black growers, their results where much better. The primary difference I was able to observe in the presentation concerned the focus of the private sector programs to assure success by not only distributing land but also providing capital, technical assistance and guaranteeing a market while the new farmers got their feet on the ground.

After her presentation, we talked about different land reform models and she commented on how the most successful agricultural programs in South Africa were not based on land or capital. It was working with women living in the slums to understand local markets. They were able to identify an urban market for the housewives in Johansburg looking for organic gourmet produce. With knowledge, these women were able to start producing and growing their business.

The South African land distribution program demonstrates that capital and land are not the critical elements of successful transformational development programming. People have to be empowered to use these tools. These resources are transformed into wealth by ingenuity and hard work. Programs that do not stimulate these attributes while at the same time undermining them create worse results then the injustices they seek to remedy.

HSP’s methodology to focus on the empowerment of people is demonstrated to be the critical factor in successful development programming. While this is obvious to development people, community organizing and empowerment programs are the least funded off all charitable, justice and anti-poverty pursuits. The reason is that these transformational programs are more expensive.

The challenge is to educate funding sources, be they the World Bank or Aunt Jane Doe, about the benefits of investing in real transformation.

The Haiti Aid Debacle: A Case for Community Organizing

It is becoming increasingly evident that the lack of local engagement by large international organizations has resulted in a breakdown of relief efforts in Haiti.

There are numerous reasons why international organizations do not foster coordination with and empowerment of local actors. A primary factor is the time and expense involved in developing local community infrastructure. Efficiency and scale are the primary measures that agencies are judged by in the development industry. Furthermore, community organizing does not produce an emotional response in potential donors. In the typical marketing that HSP avoids when it comes to development and relief services, it is understood that a message needs to be easily communicated and pull at the heartstrings.

If we visualize the development and relief industry in traditional market terms, we would have to ask what is the supply and who is the demand. Understanding that the foundation of market relationships is meeting demand, that becomes the salient question. While we would like to imagine that development engineers focus on the needs of an impoverished community, the reality is that they must meet the demands of donors. Without the donor’s funds, the majority of programming activities simply would not be possible. Therefore, it becomes paramount to meet the donor’s ideological, political and theological world view.

Another factor is the corporate structure of international development, relief, charity and faith organizations. Semantically, the difference between a corporation and a cooperative is very small, but in practice this difference has a tremendous impact on programming. A corporation exists to make itself money while a cooperative exists to make its members money. Investors gain value with the growth of a corporation. In a cooperative, the entity exists to facilitate the growth of the member.

If we analyze the usual relationship of community members with international development agencies, we can see relationships akin to an investor in a corporation. The community members are passive recipients. A significant difference is that they typically do not have any voice and management policies as a shareholder would have in a private enterprise. Their benefit is dependent on how large the agency becomes. Increases in funding are typically directed towards growing the size of the agency. Staff and personnel allegiances are with the agency rather than the community and are compensated based on the growth of the agency.

The relevance of these issues are striking when considering reports like those on today's Democracy Now.

Sasha Kramer witnessed that aid arrived quickly but was not able to be distributed for lack of local coordination. She noted that when the big aid organizations do circulate around Port-au-Prince they are in large vehicles with their window sealed. They are not able to develop good relationships with the community and do not speak Creole. These organizations are that have worked in Haiti for decades, but do not have the local contacts or organization to go out in the communities themselves.

Catherine Lane commented on how the security concerns before the earthquake limited the type of interactions you would expect people to have after working in the country for a long time. She said this lack of connections in the community is the main reason they are not able to get things out quickly and that this is a major failure in the way larger aid organizations function and in general.

This underscores HSP's methodology in focusing on community empowerment and fostering agency with partner organizations. This reinforces our commitment in staying the course even though it is very challenging.

Wolfowitz should have studied Che

I recently watched Steven Soderbergh’s two part film project based on Ernesto ‘Che’ Guevara’s memoir “Reminiscences of the Cuban Revolutionary War”.

I found it to be extraordinarily pertinent for community organizers. It shows that development can only be sustained from within. This constant is demonstrated through the difference of Che's role in Cuba and then Bolivia with a clear view of the results.

In Cuba, Che played a supporting role in Castro' s revolution. On various occasions, Che was relegated to medical support rather than leadership of a column. This validates the appropriate and most functional role for outsiders engaged in organizational efforts. Che provided critical support in a role that he was trained to perform. A role that was needed and there was not sufficient local capacity to perform. When a Cuban capable of performing the role appeared, he moved on to another training role.

The documentary makes clear that the Cuban revolution was an indigenous effort led by Cuban nationals who had investments in the process on different levels. You see the importance of family and professional networks that went well beyond ideological solidarity or strategic interests.

A second significant role that Che played for the Cuban revolution was that of international spokesperson. As a highly educated vagabond documented in the motorcycle diaries, Che had the life experiences and literary flair to play the role of international revolutionary rock star. He played this role in support of and with the direction of an indigenous movement. He was not an outside media star imposing a strategy or ideology on a third-party; rather, he was a spokesperson for that movement.

Analyzing his tragic adventures in Bolivia we can witness the disastrous results of failing to follow the prime directive of community organizing. In the Bolivian experience, we find Che and his merry band of international zealots attempting to jump start a peasant revolution. Che's frustration is almost palatable as he begins to experiences the lack of commitment and integrity of his Bolivian counterparts. In him, we also see the arrogance of the expert attempting to impose a strategy rather than fostering of local leadership. In Che's Bolivian experiment, we witness the problems of not engaging family networks, lack of personal ownership over processes, lack of ego or material investment in the process and impatience in building community capacity and organizational infrastructure. In the end, Che's failure to follow basic organizing practices is a fatal error that is as costly for the Bolivian peasants as it is for his band of Cuban followers.

Therefore, community organizers must support local community development whether we are attempting to spread a worker's utopian revolution or democracy in the Middle East. Unless we have a Messiah complex, the rule of development must be followed lest we wish for others to suffer along.

Haitian Relief Through Fair Trade

Now you can support relief efforts in Haiti by purchasing beautiful Haitian fair trade crafts and jewelry. AlterNatives, HSP's sister fair trade boutique, has created a Haiti Relief section of its web page for products from fair trade producers in Haiti. We are going to donate 50% of sales from the Haitian product to Lamp for Haiti.

While emergency assistance is very important, assisting in job creation and opportunity in the next few weeks is going to be critical in rebuilding a positive and transformed Haiti. I’ve experienced in Guatemala that the communities who were helped through the market and business development had far more sustainability and positive results then their neighbors who were supported as long as it was the cause célèbre, but then abandoned when the next crisis took precedence. We can all see how the widows of Chontola are much better off for the investment in threads then corn 25 years ago. Chontola was one of the very first villages HSP worked with, first helping the women literally rebuild their community and then critically helping them form their own cooperative, Ruth y Nohemi, now an internationally successful business.

After hurricane Mitch hit Nicaragua, we focused on marketing the pottery from San Juan del Oriente. It really worked out that they were able to not only recapitalize from lost inventory but to sustain growth that continues today.

We do not feel that it is correct to “profit” off of the calamity and therefore are donating all proceeds from the sales of the product to sustained efforts to train and advocate for the poor of Haiti.

Blame for the Victim and Praise for the Predator: Haiti in the Wake of Devastation

A recent Op-Ed piece in the New York Times by David Brooks demonstrates the worst colonial mentality of blaming the victim. In a piece titled The Underlying Tragedy, Brooks argues that the voodoo culture and poor work ethic are the underlying causes of the economic woes of the country. He postulates that other former colonies have been able to pull themselves up by the boot straps and ask why not Haiti. He proposes to fix Haiti by changing the Haitian culture through programs to teach hard work, responsibility and thrift.

Mr. Brooks is either ignorant or overlooks a critical difference in Haiti’s history. The Haitian people have struggled under a significant debt load since colonial times as a price for their “freedom”. The islands example of liberation has caused fears in Northern capitals for two centuries and to this day the island’s attempts at self rule are blocked by anxious outsiders worried by the example Haiti could represent to its neighbors.

Haiti became the third revolutionary republic of the modern era, joining the USA and France, when François-Dominique Toussaint Louverture successfully defeated the French, then the Spanish and finally the English to obtain liberation for the enslaved population of the island. This liberation was short lived as chains of force were replaced by chains of debt. While the United States initially supported the revolution through the policies of President John Adams, this was changed by Thomas Jefferson who feared an independent state of black people so close to the United would influence the South’s enslaved population. Jefferson went so far as to advocate the emancipation and colonization of American slaves to Africa to prevent another Haiti.

Haiti was left isolated after the revolution and had no friends in the colonial West. Besides slave holding United States, all of her neighbors were colonies that depended on slavery.

In 1825 Haiti was forced to sign a treaty with France to prevent another invasion and forced slavery by European forces. France’s king agreed to recognize Haiti's independence only if the new republic paid France an indemnity of 150 million francs and reduced its import and export taxes by half. By comparison, the United States paid France 60 million francs for the much larger Louisiana Territory.

Haiti was forced to borrow money from private European banks to pay the indemnity. The banks charged high interest and administrative fees that further increased the debt burden. The nation did not finish paying the French for their freedom until after WWII. The repayment of these loans has been a major factor in the continued invasion and occupation of Haiti by the United States. From the 1960’s and beyond, Haiti has suffered under International Monetary Fund management that has done little but assure that all GDP would be channeled to serving debt hosted upon the Haitian people by the governments imposed upon this people by governments acting on behalf of international banking.

While CNN commentators are praising the American response to this crisis, there seems to be little understanding of why we invaded Haiti so many times in the 20th century or the continued role of the United States in defending the interest of banks. There is even less understanding of the long term structural issues created by these policies.

AMA Women Act & Inspire Solidarity with those in Haiti

Great news for everyone! The Mayan women of AMA have made their donation to their peers in Haiti, through the grassroots organization Rights Action. And better still, HSP has heard back from lots of people about how AMA's story of sacrifice and solidarity inspired to them to give to the relief efforts even though they themselves are struggling with economic hard times right here in the U.S. Here's just one of the many responses we received:

"Ben, thanks for that thoughtful and inspired breakdown. I will figure out a way to make some kind of a donation, especially considering the example of AMA. It becomes too easy with the amount of bills to be paid in the US to lose track of how lucky we are to be able to pay those bills." - Susan Posey

Folks have also really appreciated the recommendations and analysis. More is on the way, and we're really glad to see people carefully considering how to best support those in need, both through urgent short-term and necessary long-term efforts.

Haiti Relief - How to Really Help

We all want to help the people of Haiti as they deal with the horrific consequences of yesterday’s earthquake. While HSP isn’t capable of doing emergency relief work outside of Guatemala, we can recommend good folks who do, that you can donate to. Personally, I’ll be donating through Oxfam to help provide immediate emergency assistance.

HSP’s sister nonprofit in Guatemala, AMA(Asociacion de Mujeres del Altiplano), is also planning to donate funds as an organization. The impoverished Mayan women in AMA’s women’s circles plan to raise $250 for women and families in Haiti by the end of this week. These AMA women and their families live on an average of $300 a year, less than $1 a day, making their donation all the more meaningful.

AMA's intentions remind us of the parable of the Widow’s Gift (Mark 12:41-43), in which a poor widow gives her last two copper coins, and thus the greatest gift of all – all she has. AMA will be making their donation through Rights Action, an organization that supports grassroots humanitarian organizing internationally.


Give Now to these HSP recommended organizations

Oxfam has long experience in Haiti and is rushing in teams from around the region to respond to the situation where our assistance is most needed.

Rights Action funds and works with community development, environmental justice, human rights and disaster relief organizations in Guatemala and Honduras, and also in El Salvador, Haiti, Oaxaca and Chiapas.

Direct Relief has an ongoing "Emergency Pre-Positioning Program" and a program in Haiti that stages essential medical materials on site with key partners for immediate use in emergency situations.

Learn More about how to best support emergency relief and long-term aid

This post from the Blood And Milk blog is a good summary of relief vs. aid funding:

"Humanitarian relief programs are focused on rapid start-up, and rapid impact. Implementers of humanitarian programs need to gear up as fast as possible, and start providing necessary assistance as fast as possible. Their primary focus is not building local capacity, sustainability, or monitoring and evaluation. Their primary focus is getting help to people in need. They end when the emergency ends. Relief can come from the outside, and it is a response to some kind of breakdown or disaster.... Development programs are focused on achieving long-term change of some kind, with the intent of improving people’s lives and the lives of their descendants. They involve rigorous planning and ongoing operational research. They are rooted in local capacity building, because they are aimed at change which continues after the project ends. Even if it has outside support, development in the end has to come from inside.”

The blog, Good Intentions Are Not Enough has a great post entitled “Choosing organizations to donate to after the Haiti earthquake.”

AidWatch has posted “Haiti Earthquake: Help Navigating Complex Terrain of Disaster Relief.”

Tales from the Hood, written by an experienced aid worker, has a post—“Haiti”—just out providing information for donors as well.

Philanthropy Action has also posted “Advice for Donors to Haiti - providing advice based on research from the World Bank and the Fritz Institute”

An article “Haiti's Coming Public Health Challenges”, written by Alanna Shaikh at UN Dispatch.

An article from Michael Maren, the author of The Road to Hell – “From an expert: Haiti Donation Advice”