The secret to living is giving, but what are the best ways to give? Maybe you volunteer or make regular donations. But does this help create systemic change or solve the real problems creating poverty and need? What are sustainable, productive ways to help others surpass their need for outside aid and thus, in turn, start giving back to others?
To put it another way, one persistent problem with charities is that if they succeeded in their missions – as in their clients no longer need what they have to offer – they then put themselves out of business. Worldwide conversations about unconditional basic income and government subsidies raise questions about creating dependency. But to assume people need help because they are lazier or less motivated than others is a mistake.
Take these three models of giving, all aid types that help people break free from the cycle of poverty, supporting the creation of lasting change in their communities as a result.
Direct giving
Evidence has been mounting about the effectiveness of cash aid over traditional aid to the poor, such as food or seeds, for years, reports NPR. But evidence and data still must fight against preconceptions about what aid should look like.
Today most aid comes as “in-kind” donations, meaning the aid providers decide what poor people need most, whether that’s schoolbooks, certain foods, or other assets. But what happens when the people who need help decide what they want to spend money on?
A recent study in Zambia looked at how people spent cash they were given with no strings attached through two government programs. They found the cash had an incredible multiplier effect. Household spending increased by over 50% more than the government aid. In other words, if someone got $150 from a program, that same year they spent $300 more than they had before. People used their free money to make more money, boosting the overall economy as people spent their money at local shops and businesses.
With such incredible returns, scaling this program seems like the logical next step. Yet persistent beliefs about who should get aid – the elderly, people who can’t work – instead of able-bodied people living in poverty means this particular initiative is only growing slowly.
