The Ripple Effect

By Rob Boxer, 4Walls Board member

Of the $2,000 cost, approximately $1,600 is spent locally on wages for our professional masons and locally produced building materials. The remaining $400 is for imported materials, primarily the roof. But the impact goes beyond that, because the $1,600 is pumped right back into the local economy on housing, food, services and school uniforms. 

Building a 4Walls house in El Sauce typically costs about $2,000. This amount includes all labor and materials. (4Walls administrators are all volunteers. Each and every donated dollar goes directly to building expenses.) 

Based on economic studies around the world, we estimate the ripple effect of our investment in a 4Walls house is a multiplier of 2.5. So, each house generates local income of approximately $4,000 which is widely disbursed. 

We hope to build 20 houses in El Sauce this year. So, the total ripple effect could be $80,000 of additional income this year. This amount does not include the living expenses of our board members and volunteers who regularly visit El Sauce. With an average laborer’s wage in El Sauce of less than $10 per day, this represents over 8,000 additional days of employment. Due to severe disruptions to Nicaragua’s economy, many Nicaraguans and El Sauce residents have been forced to emigrate to find employment, often leaving families behind. 4Walls’ uninterrupted building in El Sauce adds a bit of economic stability at a time of extreme instability. 

4Walls’ primary mission is to provide homes for El Sauce’s neediest families. We are proud to also create employment opportunities that help to provide stability for El Sauce families.