Poverty is hard to solve, but it's becoming easy to solve very quickly. Let's assume for a minute we have all the money in the world. Poverty is easily solved by removing the obstacles that are preventing the poor from being self-sufficient. But what are those obstacles? Poverty is not considered a disorder yet, and we do not have good diagnostic tools for diagnosing those obstacles.
Let's think for a second about how it if you are wealthy. If your family has enough money, you can have access to 24-hour care for much of your development, either from a stay-at-home parent or a nanny. In other words, you have a person whose full-time job is removing those obstacles and training you to detect and remove them on your own. Not everyone's parents actually do that well, but they at least had a shot at it.
That's great, but it's not useful to us for fixing poverty because it's too expensive to scale. We can't assign a full-time nanny to everyone in poverty, it'd be in the trillions of dollars.
But I think the internet changes the economics of this substantially.
For every one of those specific obstacles that is THE big blocker in a poor person's life, there is someone somewhere else in the world, who has either been there before, or seen it a million times, and who knows exactly what are the main tools you need in your toolbag if you are going to make it through that kind of situation. If we had that all of those equipment lists in a giant database for all of the world's poor, we wouldn't need a full-time nanny, we could just equip the poor person with some tools, and they would have a good shot at leveling up. Tools like I'm describing would be orders of magnitude cheaper than a full time nanny.
So there's a chunk of work for someone: How do you connect poor people with other people who have seen people get through their specific bottleneck?
Of course then they'll need some supplies and probably some ongoing hourly work by whatever relevant professionals are needed. And obviously you are paying rent and health insurance and all of that until those things become self sufficienct.
I think good information tools could bring the cost of this down from trillions to billions.
Still a lot of money, how could we make it back?
By bringing people out of poverty you basically get first crack at marketing to a totally new market. You could also make recruiting deals. I think as long as you're transparent about what is advertising and what is advice, it's morally OK to do this. Although I would love to hear other ideas about that. I am not attached to the model.
All of these transitions I'm talking about facilitating are going to have very high variability, which makes this also a very difficult endeavor to fund or insure. But if you can get all of the tools as efficient as possible, I think a relatively small amount of capital might be able to bootstrap the process. You just have to get your scale to something above the stochastic noise in the outcomes for individual clients.
Once it was bootstrapped though, you could just fund it with VC.