In recent years, the capital markets have infused millions of dollars into the 'development sector.' While we applaud the growing interest in development through enterprise, the question arises: are there enough quality investees? Or, more simply, is too much money chasing too few investments? Let's take a closer look:

Capital:
The novelty of the venture philanthropy model and the (debatable) success of microfinance in particular have helped attract large tracts of new capital to the development sector.

(This post continues past the break; click "Read More" to continue)

I recently spent three weeks in South Africa, primarily in the rural Limpopo Province bordering Mozambique, Botswana, and Zimbabwe. While the Republic of South Africa is the 25th richest country in the world, I was struck by the extent to which first-world lifestyles co-exist with endemic poverty. For instance, I stayed in Sewale with a former ANC councilor named Patricia who owned a pickup truck, two televisions and a surround sound system. Around the councilor's home, in all directions, were mud huts.

In my opinion, the fundamental difference between the elite movers and shakers of this rural community and those who had resigned themselves to charity was empowerment. At first, I thought that this empowerment was derived from exposure to the wider world. But after having read Francisco's blog post this morning, I can see the conspicuous applicability of the Bee Sting Effect.

(This post continues past the break; click "Read More" to continue)