1. The document discusses investing in "embedded intangibles" like human capital, organizational capital, and information capital to drive sustainable development at the base of the pyramid. 2. These intangibles include trust in social interventions, community skills and participation, decision-making processes, and access to relevant information. 3. The author proposes that governments provide tax benefits for long-term investments in financial literacy and community building to encourage sustained funding that addresses existing pressures from private investors, politicians, and donors with short timelines.

1. Investing in Embedded
Intangibles
to enhance solvent demand
at the base of the pyramid
GRF One Health Summit 2012, Davos, Switzerland
Plenary VIII:
Focusing Investment towards Cost Effective Interventions for One Health
22 February 2012
David Dror, PhD, DBA

2. Working hypotheses on
One Health is a movement to change
processes and attitudes that should
facilitate better impact on the ground;
Communities are not easily part of the
process of One Health, but they
represent “tacit knowledge” about risk
assessment and resilience strategies;
One Health is as much about
ONE PLANET, ONE FUTURE

3. Working hypotheses BOP
Social changes at BOP are
introduced by communities, not
single individuals;
Communities introduce changes
when they can take decisions and
trust the processes;
Changes in one domain can lead to
changes in other actions when the
investment is in the community, not
a specific action.

4. “Embedded intangibles”
Definition: The change over time in the human
capital, organizational capital and information
capital of communities
Why Embedded? the result flows from other
specific actions
Why Intangible? because we do not know how to
quantify changes in these “capitals”, and which
quantum delivers which results

5. What is Human capital?
People in the community trust that the
process of social intervention can be
useful for them;
People in the community have skills
and inclination to contribute in
practical ways to the desirable action.

6. How can it be enhanced?
Awareness campaigns to enhance trust
Identify candidates who could contribute
Train, build capacity and increase skills &
motivation to contribute toward the desirable
action

7. What is Organizational Capital?
Communities have adopted
practices of decision-making
and distributive governance
within the community (e.g.
reciprocity, solidarity)

8. How can it be enhanced?
Facilitate group decision-making, building on
people’s perceptions of desirable change
Assist communities to select the individuals that will
assume main roles in affecting the desirable
change
Introduce methods to reach consensus on group
priorities (e.g. structured simulation exercises or
FGDs) Example: consensus building: CHAT

9. What is Information capital
Community members have ample access free-
of-charge to information about each other that
is needed in order to apply the rules governing
their communal objectives (Gossip)
The community members (target group)
understand the goal of the common cause, and
the process of change to make it happen.

10. How can it be enhanced?
Educational material that suits the abilities of the
community
Awareness campaigns, media and games that are
accessible to all
Meetings in which people can get answers to all
questions, in a manner that is relevant and
comprehensible to the people.

11. Why not leave things as they are?
Existing pressures relegate “embedded
intangibles” at BOP to low functional
priority:
•private investors (ROI to shareholders very frequently),
•politicians (function within short time-frames),
•donors (due to “donor fatigue” in the long-term).
An alternative funding mechanism is
needed

12. Alternative funding – a proposal
Governments should give tax credits or benefits
commensurate with investments at the base of the
pyramid
The investments should be in financial literacy and
community-building measures
Tax credits should be based on proof of giving,
rather than on certificates issued by organizations
registered as “not-for-profit”

13. The vision
Recognizing
investments • Peer-to-peer;
in • Corporate to
embedded
intangibles community;
would • Donors to
encourage doers.
giving:

14. The vision
This
investment •Investors;
can create •Governments;
synergy
between •Communities.