Dear Colleagues,

Lee Thorn, Peter Burgess, Ursula Huws, Gena Fleming, Vickram Crishna,
Andy Lieberman and others have all given useful contributions to the
issue of how to finance "grassroots" projects.

The current debate on "more Aid" (Jeffrey Sachs and the UN, Tony Blair's
Commission for Africa, the recent decisions by the EU and the expected
ones by the coming G8) is all nice and well.

But as you probably know, some people believe that aid (especially
official aid from Government - or the World Bank - to Government), the
way it is given, has little benefits and could even do harm (William
Easterly, etc.).
 
Personally, I have been wondering if there could be a more productive
form of aid, both official and private. More effective and less
distorting (dependency, corruption, waste, etc.)

After all, aren't economies - throughout history - driven more by
entrepreneurial drive than by Governments? At least, I believe so
(having been both a Government bureaucrat and an entrepreneur).
 
I have nothing against good Governments. But it is VERY GOOD to talk
about how to develop forms of support that could reach DIRECTLY to the
people and their own projects, as we are doing. Channeling A LOT MORE
MONEY to viable, sustainable, projects by communities and small private
entities, in a poor country, makes a lot of sense.

In addition, empowering local (poor) people to do their own development,
doesen't necessarily include only entities such as CBOs, cooperatives or
micro-enterprises; it could extend to (poor!) Local Governments too.
 
And it wouldn't have to "cut out" NGOs.... just that the projects or
businesses would be started, "owned" and managed directly by the people.
Of course, the NGOs would help, could provide credibility, etc.
 
But I am under the impression that most big private donors (principally
Private Foundations and Corporations in the US), are not donating that
much, overall, internationally (where are the numbers?); and, in any
case, they give primarily to big, established NGOs, not directly to
single "grassroots" projects. Isn't this so? Again, where are the
numbers? I don't think they would even bother checking out (forget
financing...) some project by some small entity, say in rural India,
even if they produced a full, well documented, business plan and grant
proposal. Or would they?

If this is the case, would "Showcasing" projects on the Internet (with
simple descriptions, some photos, etc.) bring us far? Do you think
people would donate much? Maybe some individuals could. There are web
sites doing this... But I wouldn't think the big donors would, and one
wouldn't be able to determine a SIGNIFICANT flow of money. Am I wrong?
For one, what would prevent silly, wrong projects, or even downright
scams and frauds, from being posted? My impression is that credibility,
reliability and transparency issues may be the most important, here. If
so, how can they be addressed?

I hope that some other GKD Members that know this world (of fundraising
+ donors, etc.) better, will dwell on the matter.
 

Best regards to you all, 
 
Arrigo della Gherardesca 
ItAfrica - Italian African Alliance srl 
Milano



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