NextBillion.net is a nice site focused on social ventures. A friend sent me a recent post that discussed the buy one, give one model (BOGO) popularized by Toms Shoes. The criticisms of the Toms BOGO model were:
- "When individuals receive donations, they begin to see themselves as passive recipients of aid rather than active participants in making decisions about their own communities."
- "When products are given away (be they shoes or English classes), local businesses that sell those products wither."
- "Shoes, no surprise, are not often on the priority lists of the poor. When outsiders choose what gets donated, they often overlook other (more pressing) needs."
In response I would point out:
- The needy people appreciate the shoes and economic development theory can be discussed at conferences in the U.S. Also, shoes reduce the transmission of diseases. It's not a shoe program it's a healthcare initiative. Gee, that sounds so much better.
- Mom and pop retail is an unsustainable concept. Perhaps the local merchants should appreciate the early warning so they will already be in new businesses when Walmart or Carrefour opens.
- If shoes are not a priority teach the recipients to sell the shoes and buy what they need. Then they would be "making decisions about their own communities".
All we need is a shadown NGO that follows Toms around to teach people to sell their shoes. That sounds like it would be responsive to the three criticisms initially listed above. Another alternative would be to have Toms only distribute their shoes in cold climates where shoes are a "priority".
Toms BOGO program is a great idea that helps people. Let's not over complicate one company doing some good.