I agree with the premise but we shouldn’t be using philanthropic funds to try to patch over what is a market problem.
The route here should be projects that enable less friction for trade and investment, rather than creating a company that tries to bypass the fundamental issues. Philanthropic funding here should focus on systemic change to have compounded impact.
Agree these are market systems challenges. My contention is that the most effective way to shift those systems in low-income country settings is bottom-up, through pioneer firm building. Firms that employ people, pay taxes, and generate hard currency earnings have a seat at the political-economy table that external thinktanks and advocates structurally do not.
Philanthropic capital in this context should not be thought of as purely grants, but rather as highly patient and risk-tolerant investment funding that is comfortable incurring losses with pioneer firms in order to demonstrate new commercially viable industries that second-movers can then enter.
I agree with the premise but we shouldn’t be using philanthropic funds to try to patch over what is a market problem.
The route here should be projects that enable less friction for trade and investment, rather than creating a company that tries to bypass the fundamental issues. Philanthropic funding here should focus on systemic change to have compounded impact.
Agree these are market systems challenges. My contention is that the most effective way to shift those systems in low-income country settings is bottom-up, through pioneer firm building. Firms that employ people, pay taxes, and generate hard currency earnings have a seat at the political-economy table that external thinktanks and advocates structurally do not.
Philanthropic capital in this context should not be thought of as purely grants, but rather as highly patient and risk-tolerant investment funding that is comfortable incurring losses with pioneer firms in order to demonstrate new commercially viable industries that second-movers can then enter.