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Social Investment=More than Money

By Mario Morino and Carol Thompson Cole

(Op-ed published in the Washington Business Journal on October 14, 2005)

The devastating aftereffects of Katrina are a microcosm of what’s happening in hundreds of urban centers and rural hamlets across America: aging roads and bridges, underfunded emergency response and preparedness, deep racial and class divides, polarized communities, and persistent poverty that leaves millions without hope and opportunity.

These result from decades-long failures to invest adequately and effectively in our physical and social infrastructure.

A strong, robust infrastructure ensures that our nation, organizations and people have the capacity to get the most-needed things done well and create real value in return. It is the foundation for our quality of life and is at the core of our economic competitiveness in a radically changing global economy.

Infrastructure goes beyond homeland defense and physical bricks and mortar; investments in our social infrastructure are just as important.

Everyone, particularly low-income and working-class families, benefits from strong community and civic capacity that includes good schools, affordable health care centers, efficient public services from high-quality nonprofits or public agencies, and effective, responsive government.

But in shortchanging these investments and not being effective with those we’ve made, there’s a cumulative effect of weakening our economic competitiveness, limiting opportunities for many to climb to the next rung of our socio-economic ladder and cementing a permanent underclass.

Similarly, investments in social fabric strengthen the connective tissue that weaves our communities together around shared values, civic engagement, common purpose and patriotism. Yet extreme partisanship, racial conflict and the growing gap in wealth and income all erode social fabric, weaken unity, undermine our ability to get things done and perpetuate the chronic problems facing struggling families.

As daunting as fixing our overall infrastructure problem may be, we have a fundamental moral and patriotic duty to do so.

Why? Because with the challenges our country faces today—natural disasters, terrorism, globalization, and more—we need every single set of hands, every good mind and every resource available in this fight.

America can’t afford to abandon to poverty and lack of opportunity the many future doctors, scientists, carpenters and health care workers living in our urban centers and rural areas.

In short, we need to be smarter and more effective at all levels. That means a different way of thinking and investing by governments, corporations, nonprofits and individuals.

The investment issue goes beyond just more money. Our experience shows there are better, more effective ways to allocate this money to leaders and organizations having the greatest impact and provide them the strategic assistance necessary to succeed.

Skilled managers and staff, supported by effective systems and held accountable for performance, are essential. Real change entails new thinking, clear vision, rigorous analysis, compelling leadership, strong management and quality products and services—all delivered in a way that understands and respects key stakeholders.

Finally, everyone has a role to play.

Certainly, government will be the largest actor, but government cannot and should not do it all because the things we do together make all of us stronger. Government has to work smarter and more effectively. But corporations, philanthropists, nonprofits, foundations, small business and individuals all have crucial roles in mobilizing capital, expertise, ingenuity, and volunteerism―and setting a new expectation for effectiveness.

This is also a defining moment for policymakers, corporate America and the private investor to realize that real wealth and long-term value can come from investing―wisely and effectively―in our country’s infrastructure.

But we can’t keep chanting the mantra of “Do more with less.”

We must become partisans of the “common good,” investing in and building strong, high-performing organizations serving the public interest, whether they are government, nonprofit, or private.

Post-Katrina, we have an opportunity to set a different course for our country—one that invests in American’s traditional strengths of individual opportunity, community capacity and social fabric, and the future of our children and youth. These investments, if done thoughtfully and then strategically supported, will yield meaningful economic and social benefits for decades to come.

The real issue is not whether we do this, but can we afford not to?

Mario Morino, a former business executive, and Carol Thompson Cole, a former city manager, are Chairman and Managing Partner, respectively, Venture Philanthropy Partners, Inc, based in Washington DC.



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