Rethinking Aid in Micronesia

According to The Economist, first world governments spent over $100 billion on development assistance in 2005. An additional $11.1 billion came from private charities. Estimates of total expenditures on foreign aid over that last five decades top $2.3 trillion.

William Easterly, NYU professor and formerly of the World Bank, laments that

...this is really the scandal of our generation, that all this money has been spent on foreign aid and yet, in any meaningful sense, this money never reached the desperate poor.

In a recent lecture published by the Heritage Foundation, Easterly outlines a vision for more responsive and responsible foreign aid providers. He uses the acronym “CIAO” and calls for

Customer feedback
Incentives
Accountability
Outcomes

The Habele Outer Island Education Fund aims to be such an organization. We have no paid employees. All board members are fluent in native Micronesian languages, and have lived and taught in the islands. We work closely with community leaders and awardees to pursue local goals. Our scholarships empower students to attend and complete school, laying the framework for truly sustainable and long term development. We review each award at the end of every grading period. For more information, and to learn how you can help in our summer tuition drive, please visit habele.org.

First FSM Citizen Donation

Habele has received its first financial donation from a Micronesian citizen this week.

Tom Lutte, the fund’s Treasurer explained “This is really amazing. We have received great support from the Outer Island community, so much time and talent, so much ownership, but we never expected financial inputs as well!” The donor, a Ulithian who is living and working in the United States, asked to remain anonymous. He simply noted:

I have been lucky, and landed some unique opportunities here in the US. Sadly this was the result of exceptional circumstance. Most Outer Islanders have no way to move out or up. Education can change that – now tell those kids to study!

The Habele Outer Island Education has announced two scholarships for 2006-07, awarded to girls attending Bethania High School in Palau, and will be mailing checks to the school later this month.

New Application

Today’s mail brought a notice from the IRS announcing that a recent fee hike (implemented ten days prior to the mailing of our Exemption Application) will require Habele to provide the Federal Government with an additional $150 to process our packet. It is interesting that the increase is termed an schedule update by the government.

On the brighter side Habele has just received, and is carefully reviewing, a new scholarship application from a female student on Falalop Ulithi, looking to attend High School off-island. Lets hope we can match her initiative and desire to learn with the money needed to get her enrolled.

With just a few weeks before the start of school we ask supporters to keep posting links and continue encouraging friends to donate. If you get a chance take a look at the revised website here.