Social innovation and economic growth
Social innovation is a modern approach that our international aid organizations can adopt to solve economic problems of less fortunate countries. It can provide unique strategies to use aid more efficiently. It has recently found its feet and is stimulating business across all sectors and geographical regions of the world. It taps value that is present in our communities by supporting people who help the community to flourish. Currently social innovation is vigorously pursued in Europe, Japan and China.
Social innovation is defined as a new concept that can help civil society meet its social needs, like education, community development and health.
In fact it started in ancient times and was pursued by intellectuals like Benjamin Franklin and Robert Owen and it remained an intellectual idea with the writings of Peter Druker and Michael Young (who went on to found the Open University) and French intellectuals such as Pierre Rosnvallon. It then reappeared in 1990s at many US universities, including Harvard and Cornell. It was a perfect time to raise the problems of underdeveloped countries and begin to create the much-needed social entrepreneurs.
The results of satisfying human needs through social innovation have been startling: Wendy Kopp, the founder of Teach for America; Muhammed Yunus for microfinance; David Ellerman for engaging university graduates with social impact; and Anil Gupta for logging ideas from rural communities across India. Other projects include the “Village Phone” connection in rural Bangladesh. The Gates Foundation project brought mobile financial services in undeveloped countries. And text messaging services for HIV/AIDS health management services. Also affordable solar system for rural population and GE health care portable products for infant healthcare in rural areas are worth mentioning.
But there is another level of opportunity for social innovation to help our global communities more — if it is properly integrated within the Saudi Fund for Development — which is probably the largest aid organization in the world. Urban development could then be accelerated in Africa, Asia and other less fortunate countries through social innovation practice. Some of the many benefits include:
1) Allows talented people who did not get qualifications to have a voice in the community.
2) Stimulates the youth and those in old age giving them a meaning in life
3) Provides a mechanism to improve the lives of poor people
4) Provides life altering business models that fit the often forgotten low value/high volume business scenarios
5) Extracts real economic value from social relationships
6) Adds an important social element to science and technology so the product fits needs beautifully
7) Rekindles the ancient practice of social innovation
8) Provides a business template for the renewal of old services
9) Has advanced sufficiently for the fruits of social innovation to be objectively recognized
10) Promotes more respect and lessens crime
11) Provides hope and meaning for everyone
12) Gets people back to work
Thus it would be a remarkable union if social innovation could partner with the Saudi Fund for Development and become part of its road map for change. It would not only help achieve the objectives of the organization but would also grow our social innovation capacity via loans and grants that are fast-tracked to our social entrepreneurs — also known as “change agents.”
Part of this plan would include a study on social innovation in order to find out what exactly is working in these underprivileged communities. Social entrepreneurs can then bring the hidden value to the surface to support amazing development projects that can help our global community.
Likewise it goes without saying that education is the other critical step to move this process forward:
The principles of social innovation is taught in many universities in the US and Europe for the last 10 years and can be imparted in relevant schools, colleges and universities.
As the Saudi Fund for Development is one of the largest sources of funding to help Africa and Asia, it is also the organization that can and will make a big difference to the global community. Thus it is the right time to join hands with the social innovation methodology. We are fortunate that other countries have tested it — and it works. So we face massive gains and very little risk in quickly moving forward with social innovation programs.
Over the next 10 years by integrating social innovation with the Saudi Fund for development, we will transform lives of the global community for the better. It will need a suitable road map of grants and soft loans for social innovation, but once setup in this way, we will have laid the rails for a better planet.
