GLOBAL INEQUALITY AND POVERTYHe’s not just one of 12 million Sri Lankans. He’s one of 4 billion people, that’s 65% of the world’s population, who live on under $5 a day and make up the “bottom of the pyramid”.2.5 billion people- 40% of the world’s population- live on less than $2 a day. Meanwhile the richest 10% account for 54% of the world’s income. The map above shows an atlas where area is proportional to absolute wealth.And its not just income- these stark inequalities exist across almost all indicators of wellbeing.
GLOBAL HEALTHFor example, consider the disparities in under-5 mortality across countries of different income levels. Or the fact that of the 884 million people across the world who do not have access to safe drinking water, 100% live in the developing world and 84% live in rural areas.
GLOBAL EDUCATIONAbout 69 million school-age children are not in school. Almost half of them (31 million) are in sub-Saharan Africa, and more than a quarter (18 million) are in Southern Asia. Only 60% of children of an appropriate age attend secondary school world wide.
SRI LANKA INEQUALITY**In Sri Lanka, the picture isn’t much better. In 2004 the richest 20% of the country received 55% of the national income, while the poorest 20% received only 3.8%. Inequitable growth has only served to widen this gap since.Net enrollment for grades 10–13 among the lowest income quintile (31 percent) is only one-half that of the richest quintile (60 percent).In the richest quintile of households 11% of children are underweight, while in the poorest quintile an astonishing 47% of children are.
DIGITAL DIVIDE GLOBALLYThese myriad inequalities can be characterized by being caused by, AND exacerbating, inadequate access to information. The information revolution that has driven the developed world into a new age of prosperity has left many behind.*Global digital inequality stats *88% of internet users come from developed countries, comprising just 15% of the world’s population. *Sri Lanka digital inequality* **At national level, 10 percent of the population is computer literate. The highest computer literacy rate is 20% in the Colombo area, and the lowest just 5 percent was reported from Uva and North Central provinces. And while all of us are almost always online in some way, we are part of only 5.7% of the population that uses the internet.This disparity is known as the Digital Divide. In an age where connectivity is productivity and information is power, digital exclusion represents yet another seemingly insurmountable hurdle in the pursuit of a more equal world.
WHAT CAN WE DO? : POWER OF TECHNOLOGYBut where there is a challenge, there is also an opportunity.We believe that ICT has enormous unexplored potential to help people all over the world address the challenges they face in striving to improve their quality of life and create better opportunities for their children. Wireless technology in particular allows people and communities to leapfrog a number of infrastructural barriers that would have traditionally excluded them from the digital world. There are 3 billion mobile subscribers in the world today. The mobile phone, a uniquely affordable yet sophisticated general purpose technology, presents an extraordinary opportunity to transform the lives of the world’s poor.And we aren’t the only ones excited about this. All over the world NGOs, research institutes and governments are looking to work together to enfranchise the next billion through ICT.
INCLUSIVE BUSINESSThe corporate sector in particular has an integral role to play in this daunting task by embracing inclusive business.But what is inclusive business?Inclusive business is about encouraging economic empowerment and social cohesion. Unlike aid programs run by NGOs, it is self financing and sustainable, with the twin rewards of promoting development and profits incentivizing innovation. Some success stories from around the world include: 1. Kenya’s M-Pesa, provided by Safaricom, mobile money transfer service enables users to complete basic banking transactions without the need to visit a bank branch.2.Chile’s Datagro, developed by Datadyne, enables famers to obtain information about prices: supply prices, product prices, the weather, and what’s going on in international markets.3.India’s Lifelines Education enables rural school teachers in Rajastan to seek academic guidance and pedagogic advice.
So how do you go about designing a product that is both commercially viable and value adding to the bottom of the pyramid consumer? This was the challenge we were presented with 10 days ago, and we’d like to share with you our journey in trying to tackle it.
Scaling mobile enabled services (base of the pyramid) in Sri Lanka
Scaling Mobile Enabled Services for
Consumers at the Base of the Pyramid
Harshana Godamanna, Mihiri Seneviratne, Tilanka Jayamanne, Hareen
Kamburugamuwa, Guyanga Weerasekera
Final Presentations | Hilton Residencies | 16th August 2011
MAS Holdings, Deutsche Bank and Dialog Summer Internship 2011
GLOBAL INEQUALITY: EDUCATION
93 million school-aged
children not in school
Low quality education and
Only 60% attend secondary
Almost half of Sub- Saharan
Africa and over a quarter in
PEOPLE OUTSIDE THE MARKET
•They are willing to spend
on education (Tuition classes)
on health services (Medical tips)
on job opportunities
•Currently they spend a substantial
amount on all 3 services and are willing
to spend more. They have some
familiarity with the technologies that
Value Cash Other
Target Audience Value Cash Other
•Base of pyramid –
top of the pyramid
•Links tutors and
students with one
•rating system for
quality of tutor
Target Audience Value Cash Other
Base of pyramid –
only manual labour
jobs within a
certain salary scale,
with job seekers.
Rs. 1 per day
Normal Call rate for
Dialog could tie up
with a job agency
to ensure reliable
Our responsibility to make a changeWe have to start from the BOPSri Lankans should have equal opportunityInformation flow has to be bridgedThe only device that can do thatMOBILE PHONEAchieving a common goal