[Challenge:Future] Alleviating poverty through social media and innovation
Alleviating Poverty: Land Conflict in Guatemala
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Transcript of Alleviating Poverty: Land Conflict in Guatemala
Alleviating Poverty: Land Conflict in Guatemala
Laura CashDavid Lefebvre
Jason LiuShelina Merchant
Julie Vaeth
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Agenda Root cause of Guatemalan poverty:
Land Mercy Corps overview Integrated approach to resolving land
conflict Financing and efficiency Key conclusions
Unequal Wealth
Distribution
Unequal Land
Distribution
Lack of Health
and Education Povert
y
1523: Spanish Conquest
1954: U.S. CIA-orchestrated coup
to oust Arbenz1996: Peace
Accords signed
Guatemala Land History
1523: Spanish Conquest
1954: U.S. CIA-orchestrated coup
to oust Arbenz1996: Peace
Accords signed
Guatemala Land History
1523: Spanish Conquest
1954: U.S. CIA-orchestrated coup
to oust Arbenz1996: Peace
Accords signed
Guatemala Land History
1523: Spanish Conquest
1954: U.S. CIA-orchestrated coup
to oust Arbenz1996: Peace
Accords signed
Guatemala Land History
1523: Spanish Conquest
1954: U.S. CIA-orchestrated coup
to oust Arbenz1996: Peace
Accords signed
Guatemala Land History
Hernando De Soto’s Thesis
Developing countries lack a formal property system
It’s impossible for the poor to leverage informal land ownership into capital As a result, farmers
remain trapped in subsistence agriculture
Does Guatemala Fit Into This Thesis? Guatemala is currently
the only country in Central America that lacks a national property registry Over 50% of Guatemalan
landholdings are not currently registered
77% of rural farmers engage in subsistence agriculture
“You must be the change you wish to see in the
world.”-Mahatma Gandhi
Mercy Corps
Mercy Corps: A Broad Overview
Founded in 1979 Provided $1.3 billion
in assistance to people in100 nations
Focus on transitioning countries
2007 Nobel Peace Prize Candidate
Mission Mercy Corps exists to alleviate suffering,
poverty and oppression by helping people build secure, productive and just communities.
Strategic Approach1. Enable community-led and market-driven
recovery2. Discover social innovations3. Inspire others to engage in global
challenges
Mission & Strategy
Projects in Guatemala
TIERRAS - Integrated Land Conflict Mediation
Improving health systems in rural areas
Engaging youth in HIV/AIDS awareness
Investing in local capacity
Strategy in Action in Guatemala
ENABLEcommunity-driven recovery
DISCOVERsocial innovations
INSPIRE
Mercy Corp’s Land Strategy in Guatemala
Previous Situation in Guatemala•Undefined property rights
•Farmers cultivate on this land
•Unequal legal battles that are won by landlords
•Farmers get expelled
•Resentment from both sides
•An unsustainable, violent Guatemala
Situation with Mercy Corps•Bring all the parties to the negotiation table
•Mercy Corps serves as an impartial mediator
•A definitive agreement with definition of property
•Provide financing for the agreement
•Done in a peaceful way to limit resentment
MercyCorps
“The process was just because it defended our dignity as a people.”
“Rather than viewing the poor primarily as consumers, an alternative approach is to focus on the poor as producers and to emphasize buying from the poor. The only way to alleviate poverty is to raise the real income of the poor.”
-Aneel Karnani
Relationship Between Farmers and Markets
Farmers
Markets
middlemen
Little knowledge sharing and low returns on goods
Low value added products
Relationship With Mercy Corps
Farmers
Markets
Mercy CorpsNGOs
Greater knowledge sharingAccess to new, larger markets
High value added products that are in demand
Sustainable income for generations
CorporationsGovernments
The Social Enterprise Spectrum
Purely Philanthropic
Purely Commercial
MERCY CORPS
Social Enterprise Spectrum
Philanthropic Commercial
Mercy Corps Expense Breakdown
88%
7%5%
Program Expenses
Administrative Expenses
Fundraising Expenses
For every 4 cents spent on fundraising,Mercy Corps receives $1 in funds.
Every $1 raised can provide $20.89 in food
and other critical supplies
Comparison Shows:Mercy Corps is More Efficient
Progra
m Expe
nses
Admini
strati
ve Ex
pense
s
Fund
raisin
g Exp
enses
0%20%40%60%80%
100%
Agros In-ternational
Mercy Corps
% o
f Tot
al E
xpen
ses
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