The $62 billion aid machine just broke

The world faces a growing humanitarian crisis with increasing needs and insufficient funding. Traditional development aid infrastructure struggles to keep pace due to slow processes and risk aversion. In contrast, innovative entrepreneurs are achieving remarkable scale and efficiency with limited resources. Organizations like Yeti Confetti and Rocket Learning demonstrate how technology and streamlined operations can dramatically increase reach. This highlights a shift from a resource-rich past to an innovation-rich present. The current system, built on layers of oversight and intermediaries, hinders rapid, cost-effective solutions. Despite record humanitarian needs, funding remains critically low, forcing a re-evaluation of aid distribution. The solution lies in redirecting resources directly to entrepreneurs and empowering them to scale proven models. This requires funders to embrace risk and support sustainable, revenue-generating ventures. Direct capital, mentorship, and access to networks are crucial for these innovators. Shifting from implementation to validation by development agencies can amplify successful solutions. Ultimately, backing entrepreneurs offers greater leverage, builds lasting systems, and moves towards aid independence for the Global South. The future of global development is being built by these agile entrepreneurs, and established institutions need to adapt.