Dear Vic, I believe the C-BED is best implemented in the Philippines and its franchise value increased if it has a robust IT infrastructure component for enrolment and deployment. C-BED can be a complementary program to Gawad Kalinga. GK provides the physical and environmental site to build a community while C-BED the economic sustainability infrastructure. Very truly yours, Efren Ricalde

Victor Please send me your paper on CBED. I have recently started reading on the BoP subject. I am considering a business model ito Prahalad but am also interested in the "opposing" comments (eg Aneel Karnani) and the CBED point of view. Rod

Dear Vic, The popularity of your post notwithstanding, you are also falling into the same trap that you characterize as being the root cause of failures so far.One size fits all- every once in a while someone throws a BIG idea out- like you seem to doing with the idea of micro-franchizing; and then expect it to work globally- as you also claim. If you have reviewed the existing literature on SME, you realize that BDS and all of your ideas constitute only a fraction of what is required to be done. Many are talking about rights over resources, and don't we know that markets work best with a level playing distributions of resources PRIOR to the operation of markets? Hopefully, this triggers more informed discussions. Thanks, Prakash

Dear Mr. Vic Recasio, we've met in one of the sympo at UAP several years ago, I was then managing our rural banks and a director of the RBAP representing Bicol. Our banks had grown because of microfinance, and as a fellow Oaseno, I could say that our branch in Oas has contributed to the local econ devt since its opening in 1998. We have grown since then and microfinance has become a centerpiece prgram. But it has its own problems. Now, I am on my second term as municipal mayor of Libon and Local econ Devt is a town direction. I have more appreciation of microfinance now as a tool for poverty alleviation, but there are additional dimensions to be considered. One- agricultural production; that's where the local money comes from. With Bicol always devastated by environmental adventures (flood, tuphoon, landslide), agri production has not reached surplus points for a long time. two- high poverty incidence, as a result of agri money seasonality has affected incomes and capacities to fund other needs like education, health, and impacts on sustainabilities of microenterprises; three- Bicolanos, like most Fil families are prolific in population addition! Rural families have 6 to 8 to 10 children. with a low agri productivity, resources are spread thinly and when one member of the family gets sick, it impinges on the microcapital. fourth- diversification of livelihood projects for funding my MFIs; in my actual microfinance exposure, around 16 years, most projects are homogenous (sari-sari store, trading, small value adding). Again, this is a result of limited education which results again to limited skills, low appetite for risk. There are solutions of course, but these must be undertaken as voluntary collaboration, with costs and benefits in mind. a. Government's Enterprise development institutions must get their act together- TESDA, TLRC,SMED LBP, DBSF, PCFC. Presently, they have overlapping programs and if they belong to a consortium, it is not clear and easily known to the public b. Government must consider non govt MFIs as partners who have the technology, resources and capability to deliver microfinance technology, therefore must not have similar MFIs which will compete, and must go beyond providing credit lines but must also include capability building for end users to diversify microfinance portfolios; c. Government must also invest in mitigating vulnerabilities of microentrepreneurs thru- unversal coverage of health insurance (it is doing it now), guaranty insurance which could be accessed during calamities, a viable crop insurance (PCIC in Albay has slumbered) and a window for financing institutions for debt provisioning relief during calamities. d. Non Govt MFIs are doing a great job funding the underground economy, absorbing all the risks. Yes, the market rtes afford them profit, but with regular calamities evr operation year, a little tap on the back for them will be some tax relief on Gross Receipts Tax on profits used to lend to SMED. Finally, I have composed my thoughts and I will probably be sending these inputs to relevant Government Agencies. By the way, my town is the rice granary of Albay, but it is also the catch basin for flood water. I need not tell you the rest of the story! it is a challenge to manage a town like this. visit www.libon.gov.ph for more about us. I chanced upon your site while i was surfing for village based enterprises- regards. MAYOR AGNES 'BEM' PEREZ DYCOCO LIBON, ALBAY and league of Municipalities Chapter President for Albay province

Just noting that there may be quite a lot of congruence between CBED and P-CED. What we've been doing over the last decade is advocating for a people-centered model od social business which delivers profit to social benefit. http://www.p-ced.com/History/tabid/57/Default.aspx The idea was pitched at Pres. Clinton back in 1996 and since then has leveraged a micocredit bank in Russia, forms the basis of a housing program for a displaced Islamic community and now a micreconomic 'Marshall Plan' for a nil overall cost strategy at national level. efault.aspx... Jeff Mowatt - P-CED UK