We should not underestimate the power of rational thinking for getting the most out of each charity dollar (or unit of effort). Maybe you’ve heard of charities that give people’s old clothes to poor parts of Africa; while this makes people feel good, it has flooded the markets with dirt-cheap clothing, destroying the local textile industry and contributing to the very poverty that the well-meaning donors seek to alleviate.
This is what impresses me about groups like the Bill and Melinda Gates Foundation: they focus on things that are less glamorous but probably more useful, like providing basic financial services in poor areas, or doing R&D on how to make good public health cheaper. This is the kind of thing that can make a difference in the long term, and lead to exponentially growing ripple effects. Charity can be a lot more effective if you spend your resources with your head, not your heart.
We should not underestimate the power of rational thinking for getting the most out of each charity dollar (or unit of effort). Maybe you’ve heard of charities that give people’s old clothes to poor parts of Africa; while this makes people feel good, it has flooded the markets with dirt-cheap clothing, destroying the local textile industry and contributing to the very poverty that the well-meaning donors seek to alleviate.
This is what impresses me about groups like the Bill and Melinda Gates Foundation: they focus on things that are less glamorous but probably more useful, like providing basic financial services in poor areas, or doing R&D on how to make good public health cheaper. This is the kind of thing that can make a difference in the long term, and lead to exponentially growing ripple effects. Charity can be a lot more effective if you spend your resources with your head, not your heart.