BASE OF THE PYRAMID(BOP) NeedsIs there a single solution?
Table of Contents BOP Markets - A Snapshot Economic Growth Forecast Fine print The Stakeholders Real Life Stories Government – ‘The Big Brother’ in BOP Markets Recommended Framework Examples
BOP Markets – A Snapshot Troubled Reality Today… …And the Questions Posed• World’s 4 billion poor live on How do I provide for myless than $2 a day family’s Safe shelter• Half of the world’s populationowns less than 1% of the wealth Healthcare services• More than 50 percent of the 2.6 Educationbillion workforce in developing Proper nourishmenteconomies is employed in the‘informal sector’ Sanitary living conditions• Unemployment, especiallyof youths, is in the range of 40percent to 70 percent.• 1 billion people suffer frommalnourishment BOP• 2.7 billion people live withoutproper sanitation and clean water
Economic Growth Forecast Fine-print Markets of the Future - APAC, Latin America and Africa 1.8% W. Europe 7.1% 2.8% Asia/PAC North America 5.5% 4.7% Sub Sahara Africa Latin America BOP Market Size For Business Opportunities BOP Market - Identifying Business Opportunities A $5 trillion global consumer - Considering business market models - Asia ($3.47 trillion ) - Developing products - Latin America ($509 billion) - Investing in BOP Markets - Eastern Europe ($458 billion) For Government -Africa ($429-billion) - focus on reforms to allow a larger role for the private sector
The Stakeholders in Development The Development Ecosystem Domestic Social Multilateral Bilateral Private NGO’s Public Entrepreneur Government Agencies Agencies Businesses Bodies s
Real Life Stories about creating Economic and Social Value Driving innovation through technology providing low- cost solutionsFINOReinventing Strategies for the BoP ITC e-Choupal Linking business purpose to larger societal purpose through Corporate Strategy MyC4 Enabling convergence by empowering African entrepreneurs and creating a market place for investors
Real Life Stories about creating Economic and Social Value (contd.) Tapping business opportunities through technology innovationUnileverIdentifying business opportunities byenabling sustainable livingconditions in BOP communities Jaipur Foot Demonstrating the feasibility of a profitable connection between the rich and the poor – across the world Aravind Eye Care System Making healthcare services affordable through innovation
Private Sector - Real Life Stories (contd.)The New Wave : Corporate CommitmentCorporate Social Responsibility efforts have become an intrinsic part of the corporateDNA
FACT India spends 2 percent of its GDP on poverty alleviation programs, more than any other Asian country according to the World Bank. Still, India is not getting the bang for its rupee ...
Bottleneck - Government Governmental Influence -> Business ChallengesGovernment’s Out of date Role policies No incentive Enabler of Lack of for large private access to and small investment informati on businesses activity Corruption Provider of Lack of consistent Lack of critical access to infrastructure processes Capital Partner in No incentive Lack of e- for ‘public-private’ government partnerships individual entrepreneu rs Leverage Investor in social strengths sectors of private sector
Recommendation – A Collaborative FrameworkWhat is needed? Key Messages Improve social health and growth • The Government, public sector and the Private of BOP communities sector have key roles to play. Through collaboration and commitment, the needs of the BOP communities can be met. •The potential of technology should be harnessed fully for delivery of innovative, high quality and Improve economic low-cost products and services in various sectors health of BOP such as rural development, financial services, communities education and health care services. • Policy reforms fostering business climate BOCA CARE JAVA Raise awareness Provide market and inspire access for advocacy marginalised producers Public COLLABORATION and Policy INNOVATION privatereforms COMMITTMENT sector Promote collaboratio Build capabilities sustainable and and ensure n equitable trading empowerment relationships KIVA EBAY USING TECHNOLOGY TO DELIVER PUBLIC GOODS
A Public Sector Example - eGovernment Increased Accountability Reduced Corruption Empowerment of citizens and businesses Increased efficiency and effectiveness What did citizens have to say? ‚There is absolutely NO corruption in eSEVA‛ ‚All transactions are visible and it is easy for us to pay the bills in a single location‛ ‚We are not harassed anymore at the hands of government employees‛