Seema Patel's blog

BOP Activity Update: Village Herbs, Nutrition, Microfinance

Seema Patel — Wed, 20 Dec 2006 09:06:05 -0500

It has been interesting and worthwhile to me to have the opportunity to sift through NextBillion’s multitude of resources in search of projects to add to the activity database. The projects I have come across never cease to inspire. Some are new twists on old ideas combining traditional methods with modern systems…some are partnerships forged in the name of innovation. Some focus on cultural and artistic traditions and still others address more urgent needs such as disease prevention and nutrition. Acknowledging and sharing each project’s success and significance is just as important as the activities themselves.

Banco do Nordeste's CrediAmigo: Microfinance Banking
In November 1996 at a meeting in Fortaleza, the World Bank and Banco do Nordeste, a development bank formed to support growth in northeastern Brazil, decided to initiate a collaborative process to jointly implement a local development program based on the idea of micro-credit. Motivated by the fact that small informal companies – family owned and small properties - were not being served by the Bank's financing activities due to the restrictive regulation of Brazil's Banking Systems, Banco do Nordeste and the World Bank decided to develop and launch a pilot low-income bank, targeting micro-entrepreneurs from informal sectors.

(This post continues past the break; click "Read More" for descriptions of the Gram Mooligai and the Nutrition Improvement Program)

Private Schools for the Poor (II)

Seema Patel — Thu, 07 Dec 2006 15:58:10 -0500

The people of Naini were angry. The primary school in their impoverished Himalayan village had just two teachers for more than 110 children in the first through fifth grades. Their kids spent most of the time working on their own. With so many students per teacher, and each teacher working with five grade levels, one father of two boys, farmer Diwan Singh Rawat, asked: ''How is the teacher going to teach?'' Rawat, who supplements his agricultural income by running a small shop that sells biscuits, candies, and cigarettes, says: ''Even if children go for six months to the government school, they don't learn anything.''

Excerpt from Business Week online - International Letter from India: Why India's Poor Pay for Private Schools

Professor James Tooley is an authority on this issue (see my earlier post on private schools for the poor) and has been involved in a two-year research project, titled, "Private Schools Serving the Educational Needs of the Poor: A Global Research and Dissemination Project" funded by an $800,000 Templeton research grant. Through data collection and case studies, Professor Tooley and his research team have been examining educational performance, cost effectiveness and impact on social factors such as crime with regard to government schools. Like the popular microfinance model that has made a global impact in the world of philanthropy, Tooley’s findings suggest that the root causes of poverty can be best addressed when people have a stake in their own educational destiny.

(This post continues past the break; click "Read More" to continue.)

Private Schools for the Poor

Seema Patel — Tue, 05 Dec 2006 13:33:41 -0500

Two new World Bank policy papers have come out recently reporting on the status of public and private schools in Pakistan (via PSD Blog). The reports show that, contrary to most perceptions, the average private school is affordable even to the poor. These reports focus specifically on Pakistan. But according to a paper written by James Tooley, this phenomenon is occurring in schools in India, China and Africa as well:

The accepted wisdom is that private schools serve the privileged; everyone else, especially the poor, requires public school. The poor, so this logic goes, need government assistance if they are to get a good education, which helps explain why, in the United States, many school choice enthusiasts believe that the only way the poor can get the education they deserve is through vouchers or charter schools, proxies for those better private or independent schools, paid for with public funds.

But if we reflect on these beliefs in a foreign context and observe low-income families in underprivileged and developing countries, we find these assumptions lacking: the poor have found remarkably innovative ways of helping themselves, educationally, and in some of the most destitute places on Earth have managed to nurture a large and growing industry of private schools for themselves.

Click "Read More" to read a summary of and links to the World Bank papers.

Easy Money - Criticizing Microcredit

Seema Patel — Thu, 30 Nov 2006 16:11:14 -0500

There is no doubt that there is something to microcredit, though there are critics. But have we let the hype behind the idea, (see Rob's post about Yunus' Nobel Peace Prize) blind our ability to see its faults? This Forbes article, Easy Money, goes deeper into some of the fallacies of microfinance. It's worth reading. An excerpt:

In the K.R. Puram slum in Bangalore, India, a group of 15 women gather in a small, muggy living room. The electricity comes and goes, turning the fan and the single bare lightbulb on and off. Flies buzz around the room, and children run in and out.

(This post continues past the break; click "Read More" to continue)

"Uniting the World through Compassionate Trade" - One World Projects

Seema Patel — Tue, 14 Nov 2006 13:52:09 -0500

One World Projects was founded by Phil Smith, a pioneer in the Fair Trade world before it was hot. Originally conceived as a sustainable alternative for communities living in rainforest areas, Phil worked directly with communities to create crafts from renewable resources and then sold them to the US market.

The company has grown and changed over the years to become an established player in the Fair Trade crafts arena. Phil and his partner, Liz Wald, now work with more than 11,000 artisans in more 20 than developing countries. OWP has been working longer than most of its competitors, creating long-lasting relationships that truly transform communities.

In the now-trendy world of fair trade, OWP penetrates deeper and has a more holistic approach than almost anyone else. From a development perspective, they treat producers as partners rather than just suppliers, working closely with them on issues of quality and design rather than dropping them or not accepting shipments if they aren't right the first time around. From an environmental perspective, they mainly source products from renewable or recycled resources.

Click "Read More" to continue.

New in the Activity Database: Agora, Streetwires, AmazonLife and More

Seema Patel — Fri, 10 Nov 2006 15:05:46 -0500

I've been reading through a slew of successful BOP business models and am continually and consistently amazed and inspired by people’s fortitude and creativity. I find myself thinking, "How did they come up with that?" and other times I wonder "Why didn’t I think of that?" Sometimes it's as simple as taking an existing activity and giving it a new life as a working business model. Sometimes, it comes from wanting to give something back to the community that you grew up in as you see it deteriorating. Other times, it originates from wanting to use the skills you possess for something more. Whatever the motivation, you could say that it’s the fact that they took action to make these things happen and follow them through that is most inspirational.

Check out the Activity Database homepage, and read on for a synopsis of newly-added projects.

News Roundup: Risk-Reward Edition

Seema Patel — Thu, 09 Nov 2006 15:31:53 -0500

"It's a moment to balance the global with the local." - Dr. Abhay Bang, director of SEARCH

NextBillion’s news section contains 4 new items, all of which pertain to “risk” in relation to the BOP community. But this risk I am referring to is two-fold. These news items address the wrongly perceived notion by commercial banks and insurance companies that the poor are 'high risk.' But the flip side, the newsworthy aspect, is that now these companies are seeing opportunity instead of risk. In fact, they are making it their job to reduce the risk to the poor using multiple approaches.

Click "Read More" to read about these approaches...

Rwandan coffee to Vegetable oil to Bug repellant…activities of all shapes, sizes, tastes and smells…

Seema Patel — Tue, 31 Oct 2006 11:13:57 -0500

So much to read, so little time…but these activities are definitely worth a look-over.

Berni Labs - Distributing "Bug Balancer" Pest repellant for farmers
Jorge Berni, a longtime resident of the agriculture-dependent community in Los Mochis, Mexico, was convinced that farmers needed a safer solution for crop control than the heavily toxic pesticides upon which they had relied. Berni combined his training in chemical engineering with his twenty years of experience as an organic farmer to produce Bug Balancer, a chemical solution that serves to repel harmful pests that destroy farmers’ crops while attracting beneficial insects that are the natural predators of those pests.

Click Read More to read about the other activities...

2006 Ashden Awards

Seema Patel — Wed, 25 Oct 2006 07:45:27 -0500

The Ashden Awards reward outstanding and innovative projects which tackle climate change and improve quality of life through the generation of sustainable energy at a local level. As you can imagine, the winners had some amazing ideas with the potential to drastically change the lives of the communities they are reaching out to.

Four awards were given in recognition of the way in which sustainable energy has been used to improve access to Light, to Food, to promote Enterprise and to improve Health and Welfare. An Africa Award was given in recognition of the urgent need to address the combined challenges of environmental degradation and lack of access to resources in the region. More general information on the awards can be found in the press release.

The 2006 winners are described below - click "Read More" to continue reading.

Check out what's new in the activity database...

Seema Patel — Thu, 19 Oct 2006 10:21:55 -0500

I've recently been reading through some past blogs, keeping a keen and curious eye out for activities to add to NextBillion's activity database...care to see what I found? Some very interesting, and of course worthwhile projects...

ZENUFA Laboratories - Tanzania

Zenufa, a pharmaceutical company, is settting up one of the first Tanzanian pharmaceutical plants complying with the WHO Current Good Manufacturing Standards. The project is being supported by BIO (Belgian Investment Company for Developing Countries)

Zenufa has a long-range plan to produce more innovative drugs, not yet manufactured in Tanzania, such as ARV drugs for aids patients. Zenufa will sell most of its products in Tanzania but will also target other neighbourhood countries. In addition, this plant will improve the access to essential drugs, will help reduce prices and will offer opportunities to launch more sophisticated drugs. Zenufa will create about 150 new jobs, most of them for women.