This week, our reading recommendations focus on putting the power of capital - private, public and philanthropic - to work as a tool to dramatically improve the lives of low-income people. At Living Cities, we work to develop, implement and test new capital strategies. We’re also on the look-out for innovative practices, new ideas and fresh perspectives from sources across the country and the globe. Today’s #GoodReads blog covers a few of those ideas and perspectives:
Op-Ed: When Will Candidates Start Talking about The Economy? - By Mohamed A. El-Erian, The New York Times
Recommended by Ben Hecht, President and CEO, Living Cities
This op-ed, by Mohamed A. El-Erian, examines the economy’s stagnant recovery, the pressures on the Federal Reserve system, and the need to lay a groundwork for high, long-term and inclusive growth.
Filling the Funding Gap in ‘Pay for Success’ - Eileen Neely, Next Billion
Recommended by Nadia Owusu, Assistant Director of Strategic Communications and Storytelling
At Living Cities, we are exploring new ways to unlock private capital for social good, harnessing the collective power of 22 of the world’s largest foundations and institutions to develop, implement and evaluate strategies geared toward improving the lives of low-income people in America’s cities. Our Director of Capital Innovation, Eileen Neely wrote a blog for Next Billion that discussed one innovation that we are advancing in collaboration with Third Sector Partners: The Pay for Success “Construction Loan” is a first-of-its kind loan product designed to cover the upfront costs of constructing Pay for Success projects. Pay for Success works by allowing private and philanthropic funders to invest money in preventative social programs with the government only repaying them for successful outcomes. This allows governments to be more responsible stewards of taxpayer dollars by only funding projects that work.
How the Twin Cities Are Financing Immigrant Entrepreneurs – by Oscar Perry Abello, Next City
Recommended by Tiffany Ferguson, Associate, Public Sector Innovation
As our country’s demographics continue to rapidly shift, there will be more conversations about how best to support and serve the needs of an ever-diversifying populace. Minneapolis might have some ideas about small business development for immigrant entrepreneurs. This article highlights some great work being done to provide small business loans to thriving businesses led by Minnesota citizens of African origin.
TedTalk: Why we need to prioritize investing for social change - By Audrey Choi, Morgan Stanley
Recommended by Elizabeth Vargas, Associate, Strategic Communications and Engagement
I’ll leave you with this provoking TedTalk that explores whether capital in the hands of individuals can become a catalyst for social change? In her talk, Audrey Choi, CEO of Morgan Stanley’s Institute for Sustainable Investing and Living Cities Board Member, asserts that you should, “Vote with your investment dollars the way you do with your lattes.”