Development Dollars

In the Harvard Business Review Conversation Blog, Thomas Ogden writes a compelling essay urging companies and individuals to hold back some of their giving for Haiti until after the dust settles on disaster relief. The problem, he argues, is an unfortunate and discernable pattern when things like this happen:

1. Donations spike in the immediate aftermath.
2. A huge portion of the funds donated are spent on setting up disaster-relief operations that are no longer the primary need.
3. A flood of cash and materials cause a logistics nightmare leading to waste and ineffectiveness, if not corruption.
4. Six months later, reconstruction stalls because the world's attention has moved elsewhere.
5. And, finally, a series of reports bemoan the fact that too many funds are devoted to disaster relief and not enough to disaster preparedness and reconstruction.

The solution, Ogden argues, is not to suspend relief efforts. That would be heartbreaking and cruel. The solution is to give regularly to thoroughly vetted organizations, such as Partners In Health, so they can respond to emergencies when and where they happen and so they can better facilitate economic and human development during ordinary times. One-time, flash-in-the-pan giving, in response to the disaster of the moment, does not bring long-term relief and invites as many problems as it solves. Ongoing and generous support is the only way to make a real difference in good times and bad.

When companies and individuals adopt such practices, Haitians and other, future disaster victims will benefit most in rebuilding their lives and livelihoods. "One way to do this," Ogden concludes, "that engages employees and customers, is to match the dollars they contribute for immediate relief with a corporate gift for reconstruction, to be given in six or eight months. By that time it will be clear which areas of the rebuilding effort are underfunded. You'll also have time to thoroughly vet agencies, projects, and so forth, to ensure that your donations will do the most good."

The bottom line is that property rights impose social responsibilities. The haves must be smart in assisting the have-nots or we will be constantly struggling to pull drowning people out of the river. It's important that we do that, but it's even more important that we attend to the structures to keep people from falling into the river in the first place.

Coaching Inquiries: What is your pattern of giving? How often do you take the long-term view when it comes to economic and human development? How can you be smarter and more generous about sharing your resources with others? Who could you challenge to be more financially responsible and engaged?

If you would like to learn more about our Coaching Programs and to arrange for a complementary coaching session, Click Here or Email Us.