I’ve been thinking a lot about the issue of aid for developing countries lately. Now I am no expert –just a very concerned and curious observer — so please know that I don’t really know what I’m talking about here. But I’m interested in learning more and would love to hear from you guys what you know about the world of development.

My question is this. Does aid help? In the short run, the obvious answer is yes. If you give someone food, it is better than not giving them food. But in the long run, this clearly is not sustainable. Many non-profit and NGO (non-governemental organizations) talk about “don’t give them fish, teach them how to fish”. This orientation has done quite a bit of good in the world, but it hasn’t really shifted the outcomes for the 20% of the world population that live on less than $1 per day.

Did you know that 40% of people worldwide go to bed hungry every night? Here’s the thing, these people are no different than you and I. They love their children, they work hard, they feel joy and sorrow, and they live in a cash economy. They need money for everyday living just like you and I do. In fact, they need more, since most of the world’s poor pay much higher prices for things like cooking oil than we do, as they purchase a tiny amounts (perhaps a tablespoon) at a time and pay premiums to do so.

The other challenge to the poor is that in their cash economy, their customers are other poor people. Product differentiation becomes difficult and innovation and entrepreneurship are squelched.

Organizations like KickStart are tackling exactly this issue. As one of the premier social enterprises around, KickStart doesn’t give out fish or teach people to fish, it helps people figure out how to revolutionize the fishing industry.

I was recently inspired by a presentation by KickStart founder Martin Fisher who spoke about the design and development of “tools to end poverty”. To me, it is these tools, these new design opportunties, these entrepreneurial endeavors, that are really going to change the face of poverty.

But what do I know?

I guess I still don’t know the answer to the question “To Aid or Not to Aid”, but I’m interested in researching the answer. I encourage you to watch Martin Fisher’s presentation and let me know your thoughts. Or share what you know about development.

Thanks to my friend Jeff Alpert of Aquaya for his inspiration of this post.