The GiveWell Blog

Alliance for Effective Social Investing survey

We are members of the Alliance for Effective Social Investing, and the Alliance is currently determining whether/how to accept new members. We are passing along the following message on the Alliance’s behalf. If you’re potentially interested in membership, please read the message below.

The Alliance for Effective Social Investment is collecting feedback from current members and other stakeholders in effective social investment to better define the Alliance’s strategic priorities and membership policy. Please take a few minutes to share your thoughts and help shape the way ahead for the Alliance for Effective Social Investment.

All you need to do is follow this link (www.zoomerang.com/Survey/WEB22AWS3WLCWH) that will take you right to the survey. Please take 10-15 minutes to fill in the survey until Friday, July 23. The findings will be discussed at the upcoming Alliance meeting end of July and acted on by current members.

Thank you for your feedback! We appreciate your interest and support. Feel free to invite others to participate in the survey as well and contact us should you have any questions or suggestions.

Best regards,

The Alliance for Effective Social Investment

Unitus and room for more funding

It seems like no one is sure why Unitus is closing its doors. That said – what can we learn from this situation if, as stated, Unitus is closing down because it has accomplished its mission and no longer needs to exist?

“We have always thought of Unitus as a project, and that when we completed the project, we would have the integrity to say we were done,” says Joseph Grenny, one of the seven founders, and the chair of Unitus’s board. (From the Chronicle of Philanthropy’s report on Unitus)

From a donor perspective, what this quote is describing is the issue of room for more funding, which we’ve discussed at length (see our page and blog post series on this issue). No matter how successful a program is, there are limits to how much it can be productively expanded.

In December, we argued that room for more funding is a key question few others are asking charities. The Unitus case – if they did in fact shut down because they “completed the project” – lends support to our argument.

We can’t find evidence that Unitus itself gave an indication that its use for more funds was limited. According to the Puget Sound Business Journal, Unitus was “interviewing potential candidates for its vacant top fundraising post as recently as a month ago.”

Donors shouldn’t rely on a charity to tell them when it’s running out of room for more funding. We believe that the issue of “room for more funding” is one of the most under-recognized issues in the field of charity evaluation, especially for individual donors.

Against Promise Neighborhoods

We are in favor of scaling up proven programs, but against the Promise Neighborhoods initiative.

As far as we know, the only evidence that the Harlem Children’s Zone (or any similar approach) has been effective is the relatively recent study showing impressive effects on test scores at its charter schools. We discussed this study in a four-part series and concluded that:

  • The effect demonstrated was extremely impressive and unusual.
  • There are serious questions about how “real” the effect is (to what extent did it come from narrow “teaching to the test?”), how likely it is to be sustained as opposed to temporary, and how significant it is in terms of likely effects on actual life outcomes.
  • These questions aside, there are also major questions about just what aspect(s) of Harlem Children’s Zone are crucial and whether they can be replicated at all, let alone at a reasonable cost.

Given this situation, we don’t feel it’s time to attempt a replication in 20 communities at once, at a cost that seems likely to stretch into the billions if and when these replications are fully carried out.

We’re not just concerned about mis-spending money. We’re concerned about overreacting to evidence, overpromising results, and thus damaging the credibility of future proposals along these lines. We’re concerned that the funds will be allocated, the Promise Neighborhoods will be rolled out, and 10 years from now we’ll check back and see no narrowing of the achievement gap.

We hope that someday, there will be a truly replicable program with an extremely strong case that it can put a significant dent in the achievement gap. If and when that day comes, a failed Promise Neighborhoods scale-up – and any other oversold programs – will come back to haunt us.

We feel it is appropriate to pursue some replication of, and experimentation with, the Harlem Children’s Zone model. We feel a rollout of this magnitude would be a mistake.

Unitus

Unitus today released a rather sudden announcement that it will be releasing its staff and “shift[ing] its resources and activities to areas of maximum socio-economic impact for underserved people throughout the world that have yet to attain either scale or commercial viability.”

I agree with Sean Stannard-Stockton that while the announcement presents the closing as a simple strategic change in direction (due to success, rather than failure), its suddenness is odd and raises many questions.

We have always found Unitus to be an opaque organization. It is one of several large U.S. microfinance organizations whose value-added is unclear.

We urge Unitus to provide more information than is in its press release.

If the “change of direction” is in response to failures and/or disappointments, we urge Unitus to be clear on this point and to share as much information as possible about what has happened so that others can learn from its experience.

If the “change of direction” is, as the press release implies, a big-picture strategic change brought about by less need for its activities, we have the following questions:

  • What, specifically, will Unitus be focusing on from here?
  • Why does its new focus require a complete change in personnel?

  • Why has the announcement been made so suddenly? Recent newsletters and press releases seem to imply that there are substantial unexploited opportunities for the work Unitus is doing; did these give the wrong impression? What has changed?

Coming on the heels of the LAPO controversy and our recent post about USAID’s “failure” to target the poorest, we see this event as yet another reason to be wary of the appealing stories associated with microfinance.

Aid is not the only thing that reduces poverty

Earlier this month, a Gates Foundation representative (Mark Suzman, Acting President of the Global Development Program) made a post epitomizing what I feel is a key fallacy in the world of giving: that any and all progress in struggling countries can be attributed to aid.

The thesis of his post is that “A greater focus on results and accountability means that overall aid spending has been getting smarter, more focused and more effective. Increasingly, taxpayer dollars are spent on proven interventions that are saving and improving lives.” And the only support given for this thesis is observations about aggregate improvements in health, wealth and education (drops in childhood deaths, drops in the number of people living under a given poverty line, etc.)

Mr. Suzman concedes that “Economic growth in China and India has been the primary engine of this improvement,” but in his discussion of other regions including Africa, there is a strong implication (difficult to convey in an excerpt, but clear if you read the piece) that the mere fact of improvement points to the effectiveness of aid.

There is no mention of possible non-aid-related factors behind the improvement in these regions, such as:

  • Improvements in government programs and government accountability, which could happen because of aid to governments or for other reasons
  • Improvements in technology
  • Local people making progress on their own problems, even if such progress isn’t visible in national-level GDP statistics

This fallacy is one that we see often. People often ask how we can recommend that donors not support certain areas, such as water or education, saying things like “If we don’t support these areas, who will?”

The answer may be that no one has to. It’s worth reminding ourselves that the first countries to emerge from poverty didn’t receive any aid from wealthier countries, and there is no easily discernible influence of aid in many of those that have emerged since.

People can and do solve their own problems. Rather than giving ourselves responsibility for everything they’re struggling with, we should focus on the areas in which we’re most likely to be able to help.

Singularity Summit

Among those who follow GiveWell, there is some interest in the Singularity Institute for Artificial Intelligence and its mission of lowering the risks associated with the creation of artificial intelligence that “[leaves] human abilities far behind.” We have been asked several times to share our views on its work and the value of a donation given to it.

My only knowledge of this issue, as of now, comes from reading Less Wrong and Overcoming Bias and speaking with the Institute’s President, Michael Vassar. I’m interested in this community partly because it has a lot of people (including Mr. Vassar) who think critically and analytically about how to accomplish as much good as possible, considering all options and putting positive impact above other considerations; in that sense their values overlap strongly with ours.

At this point

  • I believe that there are enormous risks and upsides associated with artificial intelligence. Managing these deserves serious discussion, and it’s a shame that many laugh off such discussion.
  • I do not feel that the Institute is a strong opportunity for a donor to accomplish good. I sketched my reasons in this comment and will eventually lay out my thoughts more thoroughly.
  • I do intend to learn more about this area and am open to changing my mind in either direction.

Consistent with the last point, I will be attending the Singularity Summit this year and encourage others interested in this topic to consider doing the same.