- Guy Pfeffermann
- Tue, 12 Oct 2010 11:46AM EDT
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Very few NGOs have managed to scale-up, so as to benefit millions of people. Why not ? How have those that succeeded managed it ?
Thousands of NGOs are doing excellent work. Detailed analyses of each one's development impact would show very positive results. However only very few have been able to spread net benefits to millions and millions - examples: oral rehydration kits, microcredit. Other examples, predating the "investion" of NGOs: printing, eye glasses, not to mention all the other investions that spread, such as electricity, radio, TV, up to the internet. Paul Romer might refer to these as "meta-ideas" , i.e., ideas that engender the generation of more ideas.
Do we know what is conducive to potential scaling-up ? If so, should the presence/absence of such attributes guide governments and private funders ? Of course, some of the most signal examples of scaling-up are from commercial technologies such as the steam engine, electric power, radio, the transistor, cell phones, etc. What are commonalities between technology-driven processes and what might help social enterprise innovations spread ?
I attach an HBS case which articulates a method for assessing the development impact of interventions (net social rate of return plus or minus unquantifyable impacts). The point here is that total impact will depend not only on the intrinsic merits of the intervention under consideration, but on the degree of scaling-up, much as financial returns are multiplied when leveraged by borrowing. All too often, impact analysis focuses on a project or program, but ignores leveraging (or its absence).
Guy
