Jacqueline Novogratz on an escape from poverty

Summary

In this powerful talk, the speaker reflects on the complex nature of poverty, using the example of Mathare Valley slums in Kenya to illustrate its multifaceted reality. Highlighting the resilience of individuals like Mama Rose and Jane, the narrative underscores how microfinance through Jamii Bora and affordable housing can empower people to rise above poverty. The speaker concludes by emphasizing the importance of innovation in addressing systemic issues and the need to extend dignity and choice to all.

Takeaways

• 🤔 The complexity of defining poverty goes beyond just income; it involves the lack of freedom and choice.
• 🏭 Mathare Valley slums in Kenya is a harsh environment characterized by overcrowding, poverty, and social issues.
• 👩‍👧‍👦 Despite living in extreme poverty, residents like Mama Rose demonstrate resilience and resourcefulness to provide for their families.
• 💼 Economic empowerment through microfinance, as provided by Jamii Bora, can transform lives by enabling individuals to start businesses and escape poverty.
• 👗 Jane's story illustrates how even a small amount of capital can enable someone to start a business, improve their income, and change their life trajectory.
• 🏡 Affordable housing initiatives, supported by organizations like Jamii Bora, offer a path out of slum living for those trapped in poverty.
• 🌟 Personal dreams and aspirations can evolve and be redefined even in the face of adversity, leading to a sense of fulfillment and purpose.
• 🤝 Community and global connections can provide emotional support and a sense of belonging, as seen in the shared excitement over Obama's inauguration.
• 🌱 Innovation and social entrepreneurship are key to addressing systemic poverty and creating sustainable solutions for the economically disadvantaged.
• 🌐 The economic crisis can be an opportunity for invention and innovation, emphasizing the need for inclusive services and products for all.

Q & A

What is the main challenge the speaker grapples with regarding poverty?

The main challenge the speaker grapples with is defining poverty, as it is not just about income but also about the lack of choice and freedom.

Where is the Mathare Valley slum located?

The Mathare Valley slum is located about three miles out of Nairobi, Kenya.

What is the living condition like in Mathare Valley?

In Mathare Valley, over half a million people live in cramped tin shacks, often with eight or ten people to a room, and the area is known for prostitution, violence, and drugs.

Who is Mama Rose and what does she do to support her family?

Mama Rose is a woman who has rented a tin shack in Mathare Valley for 32 years where she lives with her seven children. She keeps them in school by selling water from a kiosk and soap and bread from a small store.

What was Jane's initial dream and why did she have to give it up?

Jane's initial dream was to be a doctor, but she had to give it up because her mother, a single mom, couldn't afford to pay for school fees.

How did Jane's life change in 2001?

In 2001, Jane's life changed when she joined Jamii Bora, an organization that lends money to people regardless of their poverty level, allowing her to save and eventually start a tailoring business.

What does Jane do for a living now?

Jane now buys secondhand ball gowns, repurposes them with frills and ribbons, and sells them as dresses for special occasions like Sweet 16 or first Holy Communion.

What is Jamii Bora and how does it help people like Jane?

Jamii Bora is an organization that provides loans to people in poverty, allowing them to save and invest in small businesses, thus improving their economic situation.

How does Jamii Bora's housing development project benefit people like Jane?

Jamii Bora's housing development project provides low-cost housing to people like Jane, who can afford it by matching their mortgage with what they paid in rent for their shacks, thus offering a safer and more stable living environment.

What does Jane think about moving out of Mathare Valley?

Jane is eager to move out of Mathare Valley despite her challenges, as she does not fear what she hasn't already confronted and is not attached to the violence, drugs, and lack of privacy there.

How does Jane contribute to her community despite her own struggles?

Despite her struggles, Jane counsels HIV patients two days a week, offering them hope and showing them that they can still serve and heal others.

Outlines

00:00

🌍 Exploring Poverty in Mathare Valley

The speaker reflects on the complexity of defining poverty, moving beyond mere income measures to consider the lack of choice and freedom. They share a personal experience in Kenya's Mathare Valley, one of Africa's oldest slums, where they witness the harsh living conditions, including cramped living spaces, raw sewage, and garbage. Despite these challenges, they observe the resilience and aspirations of the residents, exemplified by Mama Rose, who supports her family by selling water, soap, and bread. The story of Jane, who overcame her circumstances through the support of Jamii Bora, an organization that provides loans to the poor, is highlighted. Jane's transformation from a prostitute to a successful entrepreneur selling repurposed dresses illustrates the impact of such support.

05:00

🏡 A Path to Stability and Dignity

The narrative continues with Jane's story, focusing on her journey from the slums to a potential new life in a low-cost housing development. The development is a result of patient capital from organizations like Acumen, which recognizes the need for long-term support and investment. Jane is required to contribute a portion of the mortgage and is matched with her rent payments, allowing her to become one of the first residents. Despite being HIV positive, she expresses no fear of the unknown, having already faced numerous challenges. Her dreams have evolved from traditional aspirations to a deeper sense of service and healing, as she now counsels other HIV patients. The speaker concludes by emphasizing the importance of extending opportunities to people like Jane, not just out of obligation but as a means to foster innovation and build a more inclusive world.

Keywords

💡Poverty

Poverty is a state of deprivation where individuals lack the resources to meet their basic needs, including food, clean water, shelter, and healthcare. In the video, poverty is described as a complex issue that goes beyond income to include the lack of choices and freedom. The speaker grapples with defining poverty, noting that it's often simplistically measured by income levels, such as earning less than a few dollars a day. The video uses the example of Mathare Valley in Kenya to illustrate the harsh living conditions and the broader implications of poverty on people's lives.

💡Mathare Valley

Mathare Valley is one of the oldest slums in Africa, located near Nairobi, Kenya. It is characterized by extreme poverty, with over half a million people living in cramped tin shacks. The video uses Mathare Valley as a case study to highlight the living conditions and challenges faced by those in poverty, including issues like prostitution, violence, and drugs. The narrative emphasizes the resilience and aspirations of the residents despite the harsh environment.

💡Choice

Choice, in the context of the video, refers to the ability of individuals to make decisions that affect their lives. The speaker argues that poverty is not just about income but also about the lack of freedom and choice. For instance, Jane, one of the individuals featured in the video, had to give up her dream of becoming a doctor due to financial constraints, illustrating how poverty limits choices and opportunities.

💡Jamii Bora

Jamii Bora is an organization mentioned in the video that provides financial services, including loans, to the poor, regardless of their financial status, as long as they can save a small amount. This organization plays a crucial role in the video by enabling individuals like Jane to start small businesses and improve their economic situation, which is a testament to the power of microfinance in alleviating poverty.

💡Economic Spectrum

The economic spectrum refers to the range of economic statuses from the poorest to the wealthiest in society. The video emphasizes the need to look at poverty across the entire spectrum, not just at the extreme ends. It suggests that even those who earn slightly more than the traditional poverty line can still face significant economic challenges and insecurities, as illustrated by Jane's story.

💡Resilience

Resilience is the ability to recover and adapt in the face of adversity. The video showcases the resilience of individuals living in poverty, particularly in Mathare Valley. Despite the harsh conditions and multiple setbacks, people like Jane demonstrate an incredible capacity to bounce back and improve their circumstances, which is a central theme in the narrative.

💡HIV/AIDS

HIV/AIDS is a reference to the human immunodeficiency virus and acquired immunodeficiency syndrome, which is a significant health issue in many impoverished communities. In the video, Jane's status as an HIV-positive individual adds another layer of complexity to her struggle with poverty. It also highlights the intersection of health and economic challenges that many face in such communities.

💡Counseling

Counseling, as mentioned in the video, is the process of offering guidance and support to individuals facing personal or emotional challenges. Jane, despite her own struggles, finds purpose and fulfillment in counseling other HIV patients. This act of service underscores the video's message about the transformative power of hope and the human capacity to help others, even in the face of personal adversity.

💡Innovation

Innovation in the video refers to the development of new ideas, products, or services to solve problems or improve situations. The speaker suggests that periods of economic crisis can be opportunities for innovation, particularly in addressing systemic issues like poverty. The video encourages viewers to look for innovative solutions to extend services and products to those in need, as a means to empower individuals and promote dignity.

💡Dignity

Dignity, in the context of the video, refers to the inherent worth and respect that every individual deserves, regardless of their economic status. The speaker argues that addressing poverty is not only about helping the poor but also about upholding human dignity. The video emphasizes the importance of creating a world where everyone can make choices and decisions, which is where dignity begins.

💡Social Entrepreneurship

Social entrepreneurship is the application of entrepreneurial principles to organize, create, and manage a venture to deliver social value. The video touches on this concept through the example of Jamii Bora, which is a social enterprise that provides financial services to the poor. Social entrepreneurship is presented as a powerful tool for addressing social issues like poverty by creating sustainable and impactful solutions.

Highlights

The complexity of poverty involves more than just income; it's about choice and freedom.

Mathare Valley is one of the oldest slums in Africa, with over half a million people living in extreme conditions.

Despite the harsh environment, there's a strong sense of human vitality and aspiration among the residents.

Mama Rose, a resident of Mathare, keeps her seven children in school by selling water, soap, and bread.

Jane, another resident, had to give up her dream of becoming a doctor due to financial constraints.

Jane's life changed when she joined Jamii Bora, an organization that provides loans to the poor.

With a loan, Jane was able to buy a sewing machine and start a tailoring business, transforming her life.

Jane's business involves repurposing secondhand clothing into unique dresses for special occasions.

Earning more than four dollars a day, Jane is no longer considered poor by some definitions, yet she still lives in Mathare Valley.

Jamii Bora is building a low-cost housing development to provide better living conditions for people like Jane.

Residents of the new housing development are required to contribute a portion of the mortgage and savings.

Jane's story shows that despite being HIV positive, she has found purpose in counseling other HIV patients.

Jane's dreams have evolved; she now focuses on providing hope and service to others.

The speaker calls for innovation and extension of services to all, emphasizing the importance of dignity and choice.

The speaker concludes by emphasizing our collective responsibility to address poverty and support individuals like Jane.

Transcripts

I've been working on issues of poverty for more than 20 years,

and so it's ironic that the problem that and question that I most grapple with

is how you actually define poverty. What does it mean?

So often, we look at dollar terms --

people making less than a dollar or two or three a day.

And yet the complexity of poverty really has to look at

income as only one variable.

Because really, it's a condition about choice,

and the lack of freedom.

And I had an experience that really deepened and elucidated for me

the understanding that I have.

It was in Kenya, and I want to share it with you.

I was with my friend Susan Meiselas, the photographer,

in the Mathare Valley slums.

Now, Mathare Valley is one of the oldest slums in Africa.

It's about three miles out of Nairobi,

and it's a mile long and about two-tenths of a mile wide,

where over half a million people

live crammed in these little tin shacks,

generation after generation, renting them,

often eight or 10 people to a room.

And it's known for prostitution, violence, drugs:

a hard place to grow up.

And when we were walking through the narrow alleys,

it was literally impossible not to step in the

raw sewage and the garbage alongside the little homes.

But at the same time it was also

impossible not to see the human vitality,

the aspiration and the ambition of the people who live there:

women washing their babies, washing their clothes, hanging them out to dry.

I met this woman, Mama Rose,

who has rented that little tin shack for 32 years,

where she lives with her seven children.

Four sleep in one twin bed,

and three sleep on the mud and linoleum floor.

And she keeps them all in school by selling water from that kiosk,

and from selling soap and bread from the little store inside.

It was also the day after the inauguration,

and I was reminded how Mathare is still connected to the globe.

And I would see kids on the street corners,

and they'd say "Obama, he's our brother!"

And I'd say "Well, Obama's my brother, so that makes you my brother too."

And they would look quizzically, and then be like, "High five!"

And it was here that I met Jane.

I was struck immediately by the kindness and the gentleness in her face,

and I asked her to tell me her story.

She started off by telling me her dream. She said, "I had two.

My first dream was to be a doctor,

and the second was to marry a good man

who would stay with me and my family,

because my mother was a single mom,

and couldn't afford to pay for school fees.

So I had to give up the first dream, and I focused on the second."

She got married when she was 18, had a baby right away.

And when she turned 20, found herself pregnant with a second child,

her mom died and her husband left her -- married another woman.

So she was again in Mathare, with no income, no skill set, no money.

And so she ultimately turned to prostitution.

It wasn't organized in the way we often think of it.

She would go into the city at night with about 20 girls,

look for work, and sometimes come back with a few shillings,

or sometimes with nothing.

And she said, "You know, the poverty wasn't so bad. It was the humiliation

and the embarrassment of it all."

In 2001, her life changed.

She had a girlfriend who had heard about this organization, Jamii Bora,

that would lend money to people no matter how poor you were,

as long as you provided a commensurate amount in savings.

And so she spent a year to save 50 dollars,

and started borrowing, and over time she was able to buy a sewing machine.

She started tailoring.

And that turned into what she does now,

which is to go into the secondhand clothing markets,

and for about three dollars and 25 cents she buys an old ball gown.

Some of them might be ones you gave.

And she repurposes them with frills and ribbons,

and makes these frothy confections that she sells to women

for their daughter's Sweet 16 or first Holy Communion --

those milestones in a life that people want to celebrate

all along the economic spectrum.

And she does really good business. In fact, I watched her

walk through the streets hawking. And before you knew it,

there was a crowd of women around her, buying these dresses.

And I reflected, as I was watching her sell the dresses,

and also the jewelry that she makes,

that now Jane makes more than four dollars a day.

And by many definitions she is no longer poor.

But she still lives in Mathare Valley.

And so she can't move out.

She lives with all of that insecurity,

and in fact, in January, during the ethnic riots,

she was chased from her home and had to find a new shack

in which she would live.

Jamii Bora understands that and understands

that when we're talking about poverty,

we've got to look at people all along the economic spectrum.

And so with patient capital from Acumen and other organizations,

loans and investments that will go the long term with them,

they built a low-cost housing development,

about an hour outside Nairobi central.

And they designed it from the perspective of

customers like Jane herself,

insisting on responsibility and accountability.

So she has to give 10 percent of the mortgage --

of the total value, or about 400 dollars in savings.

And then they match her mortgage to what she paid in rent for her little shanty.

And in the next couple of weeks, she's going to be

among the first 200 families to move into this development.

When I asked her if she feared anything,

or whether she would miss anything from Mathare,

she said, "What would I fear

that I haven't confronted already?

I'm HIV positive. I've dealt with it all."

And she said, "What would I miss?

You think I will miss the violence or the drugs? The lack of privacy?

Do you think I'll miss not knowing if my children are going to come home

at the end of the day?" She said "If you gave me 10 minutes

my bags would be packed."

I said, "Well what about your dreams?"

And she said, "Well, you know,

my dreams don't look exactly like I thought they would when I was a little girl.

But if I think about it, I thought I wanted a husband,

but what I really wanted was a family

that was loving. And I fiercely love my children, and they love me back."

She said, "I thought that I wanted to be a doctor,

but what I really wanted to be was somebody

who served and healed and cured.

And so I feel so blessed with everything that I have,

that two days a week I go and I counsel HIV patients.

And I say, 'Look at me. You are not dead.

You are still alive. And if you are still alive you have to serve.'"

And she said, "I'm not a doctor who gives out pills.

But maybe me, I give out something better

because I give them hope."

And in the middle of this economic crisis,

where so many of us are inclined to pull in

with fear, I think we're well suited to

take a cue from Jane and reach out,

recognizing that being poor doesn't mean being ordinary.

Because when systems are broken,

like the ones that we're seeing around the world,

it's an opportunity for invention and for innovation.

It's an opportunity to truly build a world

where we can extend services and products

to all human beings, so that they can

make decisions and choices for themselves.

I truly believe it's where dignity starts.

We owe it to the Janes of the world.

And just as important, we owe it to ourselves.

Thank you.

(Applause)