60 years is enough … e-stas conference: GlobalGiving Mari Kuraishi March 2007

… to dramatically change the way international development is done

When the first post-colonial development institutions were established 60 years ago… Staff of the International Bank for Reconstruction and Development departed on “missions” by ocean liner 50 years later, anyone with a computer, camera, and internet connection can “meet” anyone else with the same

Staff of the International Bank for Reconstruction and Development departed on “missions” by ocean liner

50 years later, anyone with a computer, camera, and internet connection can “meet” anyone else with the same

But it required the World Bank to adapt … Technology is intended to make existing processes more efficient, while keeping existing power relationships intact But the drive for efficiency puts tools and access unintentionally at everyone’s fingertips

Technology is intended to make existing processes more efficient, while keeping existing power relationships intact

But the drive for efficiency puts tools and access unintentionally at everyone’s fingertips

E.g., World Bank use of information technology Everyone in the office is issued one, no controls attempted Computer and internet connection E-mail Attempted control over Knowledge Management Computer and internet connection web Every professional issued one, control only through business process (clearances required) but much harder to enforce Proprietary internal address system “ All-in-one” One fax machine per division, physical access limited Phone line and fax machine Fax 1 telex machine per institution, specialized know-how to code Specialized machine, station-to-station, coded Telex

Shifting sands on the ground … Quickly verifiable information flowing freely to many more outlets has led to real behavioral change Experts from the North used to tell governments of the South what had to be done Now local social entrepreneurs can mobilize communities to define their own problems and solutions

Quickly verifiable information flowing freely to many more outlets has led to real behavioral change

Experts from the North used to tell governments of the South what had to be done

Now local social entrepreneurs can mobilize communities to define their own problems and solutions

Change/economic growth happens when: Shifts in “classical” technology Accompanied by behavioral shifts—advances in social technology Combined with a mechanism for allowing differentiation, selection, and replication of successful innovations* * Eric Beinhocker's The Origin of Wealth

Shifts in “classical” technology

Accompanied by behavioral shifts—advances in social technology

Combined with a mechanism for allowing differentiation, selection, and replication of successful innovations*

Technology can make all parts of the supply chain more efficient

Payment processing 1996 Booz Allen Hamilton survey to calculate the average cost of different types of bank transactions: Online transaction: $.01 ATM transaction: $.27 Telephone transaction: $.54 Branch Transaction: $1.07 2006 (the nonprofit sector lagging 10 years behind), Network for Good data on average costs per type of donation: Online Donation: $.05 Telephone Donation: $.63 Direct mail solicitation: $1.25

1996 Booz Allen Hamilton survey to calculate the average cost of different types of bank transactions:

Online transaction: $.01

ATM transaction: $.27

Telephone transaction: $.54

Branch Transaction: $1.07

2006 (the nonprofit sector lagging 10 years behind), Network for Good data on average costs per type of donation:

Online Donation: $.05

Telephone Donation: $.63

Direct mail solicitation: $1.25

Kaligathuk School project Situation: $6,000 keeps 150-student school going. $40 per student Goal: $3,000 from friends/ family + Match = $6,000 Result = $12,200 w/ 37% conversion rate Result = 2 Schools funded Technology can make things far away more intimate

Kaligathuk School project

Situation: $6,000 keeps 150-student school going. $40 per student

Goal: $3,000 from friends/ family + Match = $6,000

Result = $12,200 w/ 37% conversion rate

Result = 2 Schools funded

But there are very many different ways to apply technological advances, and it’s hard to know ex ante what will make a difference or how In other words, technology is meaningless without understanding how it has changed the ways in which value can be captured Who knew, for instance, that technology is at the heart of the Starbucks experience, or the rise in US infant mortality?

In other words, technology is meaningless without understanding how it has changed the ways in which value can be captured

Who knew, for instance, that technology is at the heart of the Starbucks experience, or the rise in US infant mortality?

Technology brings you the Starbucks experience everywhere e.g ., Many ubiquitous brands with very many retail storefronts are operated as franchises: McDonald’s Starbucks is not a franchise model--it uses technology to achieve that uniform customer experience in so many retail outlets: Starbucks HQ knows when a cash register has been continuously busy for a certain number of minutes, and will call the store to prompt them to open a second register

e.g ., Many ubiquitous brands with very many retail storefronts are operated as franchises: McDonald’s

Starbucks is not a franchise model--it uses technology to achieve that uniform customer experience in so many retail outlets:

Starbucks HQ knows when a cash register has been continuously busy for a certain number of minutes, and will call the store to prompt them to open a second register

Unexpected outcomes: Technology and US infant mortality US infant mortality rates are tied with Malta and Slovakia for the second-worst infant-mortality rate among developed nations From 1/3 to 1/2 of infant mortality in the US is ascribed to premature birth Better and more affordable medical care actually has worsened the rate of prematurity, and likely the rate of infant mortality, by making fertility treatment widespread the numbers of women using assistive reproductive technology doubled from 1996 to 2002

US infant mortality rates are tied with Malta and Slovakia for the second-worst infant-mortality rate among developed nations

From 1/3 to 1/2 of infant mortality in the US is ascribed to premature birth

Better and more affordable medical care actually has worsened the rate of prematurity, and likely the rate of infant mortality, by making fertility treatment widespread the numbers of women using assistive reproductive technology doubled from 1996 to 2002

Cambrian explosion, or waste? So there is no question technology can make things more efficient But it’s not always clear how they will change social technology--look at the following current developments What some observers bemoan as duplication and “waste” Can also be the “Cambrian explosion” that maximizes the chance that a useful innovation will emerge

So there is no question technology can make things more efficient

But it’s not always clear how they will change social technology--look at the following current developments

What some observers bemoan as duplication and “waste”

Can also be the “Cambrian explosion” that maximizes the chance that a useful innovation will emerge

Current example: Social networking + social activism and development They are at various stages of development They all seek to bring social consciousness to community sites They have different features, different “hooks” On the downside, a majority of these sites will fail to reach critical mass On the upside, almost all the features they are experimenting with, if they are successful, will be adopted somewhere …

They are at various stages of development

They all seek to bring social consciousness to community sites

They have different features, different “hooks”

On the downside, a majority of these sites will fail to reach critical mass

On the upside, almost all the features they are experimenting with, if they are successful, will be adopted somewhere …

Vision and Mission of GlobalGiving Vision : Unleash the potential of people around the world to make positive change happen Mission : Build an efficient, open, thriving marketplace that connects people who have community and world-changing ideas with people who can support them

Vision : Unleash the potential of people around the world to make positive change happen

Mission : Build an efficient, open, thriving marketplace that connects people who have community and world-changing ideas with people who can support them

At GlobalGiving, we’ve incorporated the following to try and plant the seeds for changes in social technology: Project initiatives proposed from communities Voted on by their stakeholders and potential donors Monitored and reported on by project leaders, volunteers, donors

Project initiatives proposed from communities

Voted on by their stakeholders and potential donors

Monitored and reported on by project leaders, volunteers, donors

“ one of the best methods to allow the people to decide globally on what they regard most important in terms of development needs” - Stephen E., UK “ very innovative way to evaluate projects” - David O., US “ I admire the work done here to enable projects access to a source of funding” - Ellen S., Israel “ What a great idea opening up the area of long term development aid to a new audience and making it fun.” - Kristy S., UK “ A great way to collaborate with folks you never knew about. Thanks for helping us share” - Barbara S., US “ thank you for the opportunity to participate” - Lynn C., Canada

Updates Evaluation Feedback - Supporting Poor Families Affected by HIV/AIDS in Kenya -

Start trusting individual social entrepreneurs Nominate Mohammed Yunus Albina Ruiz Her track record to reflect on his track record

Do-It-Yourself (DIY) Tools For this and other viral tools, magic is in how to make easy and scaleable Ads easily ported to MySpace, Blogger, other “home pages” E-mail-enabled video “ask” tools Fundraising widget/badge for each project Partnerships with networking sites Tools for individuals and companies

For this and other viral tools, magic is in how to make easy and scaleable

Ads easily ported to MySpace, Blogger, other “home pages”

E-mail-enabled video “ask” tools

Fundraising widget/badge for each project

Partnerships with networking sites

Tools for individuals and companies

Questions: Do you agree? Disagree? How far can/should we push on encouraging changes in social technology? Most of the things GlobalGiving is doing has precedence in the private sector: eBay, HotOrNot, Pop Idol … Should we at GlobalGiving or the sector at large be more leading edge?

Do you agree? Disagree?

How far can/should we push on encouraging changes in social technology? Most of the things GlobalGiving is doing has precedence in the private sector: eBay, HotOrNot, Pop Idol …

Should we at GlobalGiving or the sector at large be more leading edge?