The U.S.'s Newest Export: Homelessness Policy

by Ted Iobst · 2010-08-26 07:30:00 UTC
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The days of the United States being a net industrial exporter are long gone. In 2008, the U.S. trade deficit was almost $700 billion. But despite the United States' vanishing competitive advantage in manufacturing, the country continues to export science and technology. Judging from a recent article in Australia's National Times, the United States exports  not only products stemming from "hard" sciences like pharmaceuticals and military technology, but it also exports "soft" science knowhow — including (you guessed it) homelessness and housing policy.

In Melbourne, Australia, a new $47 million facility for the homeless opens this month, and the developers have made no secret about where they got their inspiration: New York City's Common Ground. Minister of Housing Richard Wynne took a trip to New York City and brought back with him the holistic, wrap-around approach (a.k.a. supportive housing) that has made Common Ground so successful.

In addition to adopting an effective social services model from New York (Common Ground boasts a 0.9 percent eviction rate), Wynne also brought back a unique — albeit sometimes controversial — economic analysis as well. According to reports, Wynne believes in Malcolm Gladwell's "Million Dollar Murray" theory.  That is, that all-encompassing homeless policies actually provide net financial benefits for governments and communities that invest in them. San Diego just instituted a policy to target the city's 25 most costly homeless, with this concept in mind.

Like he did with the service model and underlying economics, Wynne also approached financing for the new venture in a creative manner: "It's the 'Melbourne model' of Common Ground — a joint venture involving the state and federal governments, the city of Melbourne, those admirable community organisations that choose to work with and for the homeless, and some of the big 'corporates' around town."

Even though the United States' latest export to Australia might not be as flashy or tasty as its imports from Down Under (see: Men at Work and Vegemite), the benefits to Melbourne likely will be marked. In all, the Melbourne project plans to provide 131 homes in the image of its inspiration, Common Ground. And if the project pans out anything like Common Ground has, Melbourne's new approach to housing will be an overwhelming success.

Photo credit: Geof Wilson

Ted Iobst blogs about hunger, homelessness and poverty in Washington, D.C. at HelpTheDistrict.org and volunteers at Miriam's Kitchen.
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