Thinking differently in economic development

Think Differently.

A mantra that invigorated a company to create a device that changed the very way that people communicate all across the globe. That mantra, while not Levo’s, applies to the way Levo approaches ending hunger and poverty around the globe.

When a natural disaster strikes a developing country like Haiti, like an earthquake, or a hurricane, organizations from around the world do what they have done for decades, give millions of dollars of aid. Families, businesses, and organizations all across wealthy countries donate money, food, or supplies, because they care, because they see the news, the level of suffering and want to help. But for some reason poor people still exist all around the globe. Donating food and supplies for weeks to starving people makes sense on the surface, except for the fact that you just destroyed the local food economy, as local vendors can’t compete with free food, and are forced out of business. Now they are poorer than they were before the disaster. We have been following the “aid-centered” development model for many years.

It is time we thought differently.

Levo is, in its tax status, a “charitable corporation”. But that is not who we are. At Levo, we looked at the traditional model and recognized that we need sustainability. We recognize that poor people are poor not because they are incapable, or stupid, but rather lack the necessary resources to take advantage of the innate human capability. People can lift themselves out of poverty. But they need access to resources.

Envision a different scenario.

A hurricane strikes the island of Haiti, but before the island was struck, all throughout the country, people had the opportunity to purchase an efficient means of growing food anywhere, whether in the city or in remote villages, regardless of the soil. These systems that were sourced and built locally, employing local vendors and laborers. Agronomists employed from the local community provide the training and customer service. People purchased the systems, on credit, the initial capital being provided by people in wealthy nations. These systems provide food for the local market, allowing for a return on investment, and interest to be paid on the loan. That interest is banked, reinvested in the community, and used to pay local staff. Before the hurricane struck, people were producing food locally, and even exporting cash crops to wealthier cities and countries.

A hurricane is still devastating. Fields are wiped out, unable to produce again for years. People are hungry. In the new scenario, the Levo center where they bought their system has funding to provide a low interest loan to help make any repairs to their inexpensive growing system, and seedlings are distributed from their local center. This happens throughout the country, and within 6 weeks, food is once again being produced, and sold by local vendors in the market, and being exported back out of the country to bring further income and investment to the local community.

This is thinking differently. This is thinking about sustainable impact, not how many of your dollars went directly to the “cause”. The cause is development, and development is done through partnering and investing in the community, not by handouts.