I have often struggled to find a development philosophy that combines my faith in the market with my knowledge of regular market failures and the inability of economic development to ensure improvements in the human condition. Jacqueline Novogratz' approach to development appeals to me as a step up from microfinancing initiatives or part of a comprehensive approach that would include microfinance. I feel comfortable with this approach which entails significant investment in for-profit enterprises that are meeting public needs. The approach appeals to me with its process of providing management assistance to enterprises already in place that with the help of significant investment, are able to raise additional capital, serve many more customers, continue to be innovative, are able to be scaled up and be sustainable, and be models for other businesses. This creates social capital and a working market that is a "listening device" for the needs and demands of the poor.
Other aspects of her philosophy that appeal to me are her recognition of the limitations of the market and the benefit of aid for achieving some goals, her emphasis that access was the key missing for the woman in the story she told in her interview, and her recognition that individuals need and want to pay for goods to allow them to have dignity and ownership over their own development. Individuals will really only use and value products for which they feel are worth paying for. Handouts can be resold if they aren't valued for money or something else considered more valuable.
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