Book Review: The Blue Sweater by Jacqueline Novogratz
Originally submitted for NYU Wagner School of Public Service course “International Economic Development: Governments, Markets, and Communities” in December 2013.
Jacqueline Novogratz’ The Blue Sweater: Bridging the Gap between Rich and Poor in an Interconnected World, in addition to being a personal memoir, is also an obituary for the old way of giving aid. Jacqueline started as a banker in New York, but instead of letting the regal headquarters of Chase bank imbibe and corrupt her, went off to travel the world and figure out a new effective way to help the poor.
Once you get past the gushing tone and a fair dose of clichés, the book is a rich and deep firsthand account of how the poor across the world get by and who tries to help them. In her career, Jacqueline has interacted with all levels of development efforts — from individuals with handmade dolls or jugs of milk for sale, to grassroots microfinance, to private millions of the Rockefeller Foundation, to the World Bank and the United Nations. In The Blue Sweater, she learns from interactions with them as she goes — and so does the reader. However, Jacqueline’s narrative dwells less on the inefficiency and bureaucracy of the World Bank, and more on her personal experiences and on the three offsprings of hers — the Rwandan microcredit organization Duterimbere, the single mothers’ bakery, and Acumen Fund.
A great emphasis in Jacqueline’s memoir is on the places she goes and people she meets. She starts off as a chatty bartender-turned-banker who lives her life to the fullest, and throughout the book (and her life) never strays from being that person. In each new country, the first thing Jacqueline notices is the landscape, the air, the plants, the vibe of the local culture. Throughout her encounters, she learns that poor people need to believe in themselves and have freedom to make decisions in order to be successful in something that can lift them out of dire circumstances. She finds out why it is hard to go against cultural norms, and why it is sometimes necessary to do it — albeit with caution. She also learns that money and power can corrupt beyond belief, and that one of the most powerful remedies to corruption is strong personal morals. She learns that poverty often goes hand in hand with a great appreciation of life and a resilient, happy spirit.
Possibly the main takeaway from Jacqueline’s adventures is that poverty cannot be alleviated by one entity or using one approach. Government aid is often ignorant of local needs and conditions, ridden with politics, and corruptly distributed. Private donors like to feel good about themselves as much as they like to make a difference. Individual leaders and visionaries are often not ready for the realities of poverty. Poor people are deemed perpetual victims so that they can’t get noticed or obtain the support they need. The key, she argues, is to combine the recognition of the poor as legitimate consumers and capable entrepreneurs, the power of markets with their incentives and accountability mechanisms, the talent of private sector leaders, benevolent and efficient policy with resources given by those who want to change the world.
The culmination of her novel approach is Acumen Fund and its ‘patient capital’ — money donated by philanthropists and invested in the well-being of the poor (rather than blindly handed out). The funds come with training and support the businessmen in the developing world need to provide clean water or cheap eye surgeries. The outcome is local entrepreneurs in poor countries who build and scale their businesses, provide jobs, keep their progress measurable and transparent, and make their community healthier, wealthier, and more livable. In other words, the amalgamation of private money, capable managers and mentors, supportive government, and most importantly — local visionaries is what makes development happen, one antimalarial bed net at a time.
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