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Well it appears as if last week was “conference week” here at NextBillion, so it’s my turn to dish on my recent attendee experience. Ready? Here I go.

I was fortunate enough to attend 'Financial Inclusion, Innovation, and Investments,' a symposium organized by the Emerging Markets Program of the Department of Applied Economics and Management at Cornell University. In a happy bit of serendipity, a professor with whom I had corresponded informed me about the event just in time for me to change my itinerary. (I had planned to be in Ithaca the week before.)

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Cheikh Mbengue, an expert from Abt Associates on community-based health insurance (CBHI) schemes in Africa, said something that perked my ears last Wednesday at a USAID After Hours Seminar on microinsurance. He said that he thinks CBHIs can't function effectively without subsidies. No one has really talked about subsidies in the BOP space. The message is always, "get prices down low enough, quality up high enough, distribution wide enough, and you've got a market at the BOP."

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Jane Nelson, who wears many hats (IBLF, Kennedy School, Brookings), spoke yesterday at a meeting of the Global Poverty Roundtable at the GlobalWorks Foundation here in Washington. Jane offered a wide-ranging, yet concise summary of all of the ways business can engage in development. Jane said [and, Jane, I beg your forgiveness in advance for this shallow and truncated version of your presentation] that the activities fall in three general categories: core business activities, competence-led philanthropy, and influence on the enabling environment for business.

On Core Business: Two broad areas: First, practice responsible business (human rights, environment, labor, compliance, accountability, etc); second, increase economic opportunities -- innovate for new markets. How? By leveraging global value chains, increasing local content purchases, creating business linkages, creative financing mechanisms which draw on core businesss knowledge and skills, and perhaps most promisingly, through more and more effective collective business initiatives -- industry-wide efforts that both set standards and create healthy and friendly competition to succeed within these new standards.

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Andrew Mack is a former World Bank official and Principal of AMGlobal Consulting. He previously blogged for NextBillion .net about Rwanda's IT development and leapfrog technologies, in January 2007.

By Andrew Mack

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I attended an all-day workshop at the IFC yesterday on their Grassroots Business Initiative (GBI). A half dozen of the Initiative's enterprises from Africa, Asia, and Latin America, and 30 or so GBI partners also attended, along with their program staff. The meeting was conducted under "Chatham House" rules, which means that I can't report on who said what, but allow me to share with you a few general observations, and a bit about one talk.

First, no surprise here, it's remarkable how many of the issues that are of concern to these quite small enterprises (and intermediaries helping them) are exactly those that big organizations must contend with —finding and succeeding in markets, managing for growth, balancing objectives. It's no solace to these small, struggling social entrepreneurs, but things don’t get easier when you get bigger.

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In my old age I’ve come to understand that points of ideological contention can be very eye-opening. My friend Akwasi and I considered each other relatively liberal, like-minded urbanites until we had the “gender role” conversation. Yes, that one —the quintessential Mars/Venus debate. According to Akwasi, women have certain roles such as housekeeping and child-rearing and that they are obliged to fulfill. My view is somewhat more fluid: each party should perform the duties to which he or she is best suited, traditional expectations notwithstanding. I will spare you the details of the tete a tete, but I will share my rather rudimentary analysis of the subject.

After much hand-wringing and a rather ad-hoc consultation with my uncle in Lagos, I concluded that from a “historical” perspective, gender roles had (what I considered to be) relatively unambiguous utility. I reasoned that early man was suited to hunting and gathering due to his greater physical strength and size while early woman, as the child bearer, remained at home out of harm’s way. In my narrow rendering of the world, gender roles were simply a sensible expression of the division of labor. As the capitalist system developed, however, traditionally male roles became recognized by the market and female roles did not. Because we are pushing the boundaries that dictate gender roles, who does what, when, and for whom is now a much more complex question.

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Yesterday, I had the privilege of introducing our BOP market report, The Next 4 Billion: Market Size and Business Strategy at the Base of the Pyramid, to nearly 100 people at the US Agency for International Development. The day before, I did the same for a more academic audience at the Mortara Center at Georgetown University. Both groups had lots of interesting questions:

Q: What other kinds of data would empower business investment, and were we going to gather that too?
A: Very fine grain market data are needed, but at present we are not working with them.
Q: What about local merchants or producers in the informal economy that might be pushed aside by more efficient formal businesses?
A: A market-based approach will have winners and losers, but will, we believe, improve opportunities for both producers and consumers.
Q: What is the role for governments in creating the enabling environment for business investment?
A: See the IFC/World Bank Doing Business reports.

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