The role of technology and new thinking in the development sector is critical to our future. But how do those who are at the front line of implementing and integrating these new ideas feel coming into 2024? We asked three leaders from technology, innovative, and strategy organizations their thoughts on the year ahead.
Read on to hear from:
- Mark Cubit, Co-Founder, Cubit Family Foundation
- Prof. Durreen Shahnaz, Founder and CEO, Impact Investment Exchange (IIX).
- Cameron Neil, Co-Founder and Director, Red Hat Impact.
1. Reflections on 2023, what were the most significant developments or challenges in the global development sector?
For Durreen, 2023 saw progress in investors’ dedication and engagement with global development, with increased investor engagement in sustainable investments addressing impact issues, especially climate change and gender inequality. However, there were many challenges as well, from the worsening climate crisis, ongoing conflicts, and economic inequality to pushback on DEI and the rise of Green and Impact-washing.
“Investors began to acknowledge the profound impact of their actions, transitioning from passive observers to proactive participants. The shift was evidenced by a surge in sustainable investments to address pressing issues such as gender inequality and climate change.”
Mark picked up on the changes in perspective but highlighted a dwindling in funding by tradition donors such as the general public and governments. He noted this as a challenge that took place not just in 2023 but over the last few years. He contrasted this with the ‘big money’ donors, like Mackenzie Scott who are at the other end of the spectrum and are putting huge money out into the sector, and the transition that is occurring with ‘trust-based philanthropy’. And while Trust based philanthropy has benefits, Mark highlighted the need for further enhancements, highlighting that when making decisions on “funding local organizations, where are those funding decisions being made or how are they being made? If they’re being made by a bunch of people sitting around a board table in Melbourne or Sydney, then I don’t see that as trust based philanthropy”.
The challenges in funding were also highlighted by Cameron who commented on the growing focus and alignment on geopolitics in development financing, especially in the Pacific influenced by powers like the US, Australia, and China. But while projects and funding were impacted by this, there were positives in the Global South asserting more influence, and demanding accountability between stated objectives and actions. “Voices in the global south are only going to get stronger and louder on the need and desire for them to be involved in decisions, while holding people to account.”
2. Key Ideas for 2024, what do you believe should be the primary focus areas for the global development sector in the coming year, and why are they crucial?
Mark highlighted the growth of trust-based philanthropy will continue into 2024, along with the increase of indigenous and local involvement in funding decisions. “You’ve got to be hopeful that the balance is going to tip and that people with lived experiences are going to stand up at the table and just say ‘No, you’re wrong’. We can’t do it this way and it’s time that decisions were made here, not in some distant land”
Durreen emphasized that for global development in 2024, there needs to be a keen focus on empowering girls and gender minorities, and the unique and diverse challenges they experience in facing climate change. IIX’s work, focuses on these issues through the Orange Movement and the $100 Million Women’s Livelihood Bond 6.
Cameron focused on power and change in how we operate and finance. “If we really want to achieve the outcomes we’re looking for, then it actually requires a shift in the power dynamics in the way that stuff is done”. He advocated for a renewed focus on different models, such as cooperatives and local ownership which allows groups to have control and agency. Theres a lot of great thinking coming out, 2024 is the year to move some of this thinking forward and not just deliver, but understand the power behind it and how we shift that.
3. Technology, Innovation, and Transformation, What trends do you see in terms of innovative thinking in the development sector in 2024? Do you see technology playing more (or less) of a role in development in 2024?
Returning to impact and greenwashing, Durreen highlighted that these are not new, but highlight years of neglect in establishing tangible impact measurement standards. Introducing better impact measurement is critical, and new technologies, including AI and machine learning, will play crucial roles in ensuring impact reports are reliable and transparent. However, the focus on these technologies needs to be tempered with the risks of even further greenwashing and misaligned risks.
Mark was optimistic that technology continues to have immense potential to improve efficiency, especially in the health and education sectors. For healthcare, the ability to empower community health workers through smartphones offers immense impact, while digital devices with libraries can transform education, once the right delivery model is found. “A few years ago if you listed the major challenges … one of them was communication, there just weren’t the poles and wires down the highway. But now, why would you have poles and wires?” As things move quickly, technology will enhance the impact being delivered, and faster than we might expect.
But, if we are worried about the pace, Cameron shared a more pragmatic approach. While technology can’t be ignored, the limits of its impact are starting to be better appreciated, and a focus on technology as an enabler, but not the focus is coming through.
Moreso than technology, the development and sharing of new ideas is also critical. Cameron shared that many challenges develop multiple great ideas that can achieve the goals, but only one is selected, so what happens to the others? The opportunities lost by not being able to share these concepts and ideas mean that new thinking that can support communities is lost. Understanding ‘Innovation liquidity’ and the ability to share ideas quickly holds great promise but needs technology to help support its delivery.
“We want to get innovative ideas at scale, but where do we find the innovative ideas that are already out there and talked about versus us running a whole new challenge to discover something again, right? Technology plays a key role in how we get that and that comes down to mindset shifts, and people wanting to prioritize differently in sharing ideas”
4. Localisation, How will the discussion move to action this year in localisation?
To support localization, we need funders to invest in innovation, in trying things to see what will work best, says Cameron. Everyone loves the outcomes, but they need to invest in the process. Cameron also highlighted that in localising funding, there is a shift in how we measure as well, if the metrics of what happens are set, then it isn’t localised. Building accountability structures in communities and then letting them determine the metrics is a key aspect in driving this change. The opportunity to test new ideas, to experiment and evaluate localization is critical.
“I don’t think localisation is going to be something that impact (investment) funds are going to pick up first. It will be philanthropic sources that have more flexibility to go early or government sources that want to collect evaluation data.”
Generating sustainable development outcomes that are impactful at the community level is critical to beneficial change and ought to be the emphasis, says Durreen. But to do this engagement with communities and enhancing their involvement in decisions is needed. Programs need to “actively collaborate with key ecosystem players to catalyze broader participation in impact investing” and foster strategic partnerships that are built upon the local communities’ voice.
For Mark, “If the sector doesn’t localise adequately, it will continue its declining influence of the last decade”. The influence and impact of the sector has dropped, with reduced funding and voice, while the population and economy have risen. This drop means we are missing the mark, and localization is the key. If charities can shift where decisions are made, and move to making funding choices in Nepal or in Cambodia, while someone in Australia might not see that directly, it will reorientate the organizations in a way that is more effective, and that will support the story to the public. Speaking on the School of St Jude, where Mark is chair, “We raise eight million dollars a year in Australia. But all donors and supporters are managed out of Tanzania. We have no paid employees here in Australia. It can be done.”
5. Personal Aspirations – what are your goals for 2024, and what role do you aim to play in achieving these goals?
In 2024, Durreen will be commemorating the 15th anniversary of IIX. With this milestone, she’s looking to establish ‘Orange Alliances’ forging partnerships and providing training and support. “My aspiration for 2024 is to galvanize ecosystem players from both the private and public sectors to embrace impact investing, gender equality and climate action wholeheartedly”.
For Mark, 2024 poses the opportunity to give even more effectively and to encourage more giving to international causes. Working with AIDN, which Mark helped create, the goal is for “more Australians to give but our primary focus has to be on allocating our funds efficiently. 99% of what makes a fine individual is that they are philanthropic to the extent they can afford, and giving overseas can be engaging, interesting, even enjoyable and more impactful.”
Cameron’s 2024 is focused on launching the Trade Finance Vehicle 2.0 in July. This unique finance model has been iterated from the Menstrual Health Vehicle launched a few years ago to great success. Cam hopes for commercial viability within 3-5 years, and the ability to shift the vehicle from being managed by Red Hat, to locally owned and managed. But for 2024, the focus is on; building partnerships, and aligning with complimentary programs to enhance and deliver impact.
6. Hope for 2024, What are you most excited for in 2024 in Global Development?
In 2024, Mark is excited for the big foundations in Australia stepping out into the international space and putting big money into international activities. As these big foundations shift, Mark hopes there will be more Australians who follow.
While Durreen is excited for further work and empowerment of women and girls, “recognizing that gender equality is essential for advancing climate action, resilience, and peace and fostering a world where everyone can thrive, irrespective of gender identity”. And the opportunity for IIX to continue to shift the dial, and push the envelope.
Cameron anticipates a shift in the paradigm in 2024, calling for boldness in addressing systemic issues such as climate change and economic disparity. We need more imagination in thinking how things can change. “there’s no reason that capital needs to work the way that it currently does. It’s designed by a human. It can be completely different, with a completely different outcome. But it starts with being able to imagine that it could be different.”
This mindset shift needed in how we approach capital is critical. Our current approach is we focus on the risks of losing money, of “rich people losing money, we’re just focused on the wrong thing. The real risks are that women are denied economic opportunity and empowerment, they’re trapped in abusive relationships. That we’re destroying the planet. These are the risks that we should be caring about.”