NextBillion.net - Development Through Enterprise - Being Green at the Base of the Pyramid - It Just Makes Sense - Comments

indeed

Derek Newberry — Fri, 06 Jun 2008 11:08:59 -0400

Hi David

This is a complex question indeed, and you have examined an important slice of it in your post on shanty towns. I have to say your perspective is enlightening for me because I'm familiar with the arguments for formal property rights as a means of poverty reduction (as presented by Hernando de Soto and advocated for by groups like the Movimento Sem Terra), but I'm less familiar with the sustainability aspects of this issue.

Perhaps this is an example of me falling into the trap of artificially separating poverty from environmental concerns. Either way thanks for adding this to the discussion.

-Derek

BoP and shantytowns

David Best — Fri, 06 Jun 2008 03:36:52 -0400

This is a complex question. I'm a student at Portland State University and we did a blog and survey on the problems of the people at the very base. The problem of not being green at the base is a total lack of assets. If counties would relax codes and allow self-help housing (shanties), this is all changed and I believe those at the bottom could be very green once the government grants them a say, 20 by 50 lot to live on. They would take pride and see beauty in their community and live in a non-wasteful manner. The survey had surprisingly positive responses and starting shanties could be very "green" with composting toilets and a bus service to an urban area for work, supplies, and education. If you care to read more and see the responses of the survey it's at our University blogsite: http://ecomerge.blogspot.com/2008/05/can-small-shantytowns-help-end-homeless.html

the point of TN4B

Derek Newberry — Thu, 05 Jun 2008 10:19:52 -0400

Hi Brian,

Your comment goes straight to a key point of The Next 4 Billion, that the poor are willing to spend their hard earned money on quality products that fit their needs even if, as in the case of CFLs, this means spending more in the short term to get cost savings benefits in the long term.

-Derek

BoP Willing to Spend

Brian Forde — Wed, 04 Jun 2008 17:12:11 -0400

I'm glad our campaign in Nicaragua can be used as a green example at the BoP.

What is interesting to note is the rate of adoption of new technologies when there is a cost savings involved. While over 1,700 customers bought light bulbs during this campaign we were amazed to find that many more already had CFL light bulbs installed in their homes. This amazes us because the cost of the CFL light bulb is five times more expensive than the traditional light bulb. What this shows is that although the BoP has a very limited cash flow that is tightly managed from day to day, they are willing to spend more if the benefits are clearly shown much like the ToP.

You can see how we demonstrated those benefits in our stores, on TV and radio at our website just click on the video link. http://www.noapagones.com

Next year we will look to get more companies behind this effort by helping them educate and possibly subsidize the cost of the light bulbs to their employees.

Brian Forde
President
Llamadas, S.A.
Managua, Nicaragua
http://www.llamadas.com.ni

...and speaking of solar energy

Derek Newberry — Wed, 04 Jun 2008 10:45:43 -0400

Interesting that you mention solar energy because one of the examples I also had in mind in writing that post was the fact that China is a leader in solar water heater technology and production. Is the high demand driven by consumers wanting to "green" their homes or as you point out, is it that they are attracted by the prospect of lowering their energy costs? I think you know where I stand....

Thanks for your comment!

-Derek

BOP are the true innovators

Anonymous — Wed, 04 Jun 2008 03:59:35 -0400

Derek, I couldn't agree with you more. I work for a solar energy company and I have found that this is the case with our end users as well. It doesn't matter about the "carbon saving benefits" of the technology but what makes them invest in it is their perception of it as a need. This has been our USP since the beginning and it appears to be catching up. The end user is willing to pay for something if they feel it is low cost and if more importantly it satisfies a basic requirement. They are the true innovators and environmentalists but by default because they are born into an environment that forces them to watch their pennies.

Being Green at the Base of the Pyramid - It Just Makes Sense

Derek Newberry — Tue, 03 Jun 2008 16:22:11 -0400

Are people at the base of the economic pyramid more "green" than those at the top of the pyramid? There is an ongoing debate about this - and one of the key assertions made by those who answer "yes" to that question is that the BoP are better conservationists. Karen pointed out in her post last week that the people who depend most directly on "ecosystem services" are the ones most likely to utilize them properly and productively in a sustainable manner.

Reading this, memories flashed through my mind of traveling around highways in Mexico where brick sellers would line certain parts of the road - stacks of adobe bricks made from baked mud and straw arranged behind them.

Another BoP innovation around ecosystem services is the proliferation of decentralized biofuel generators, which have been gaining special attention recently thanks to the students who won U Texas' Social Innovation Competition with a rice husk-powered generator. A similar system that uses jatropha instead of rice husks has been circulating throughout rural India for some time.

Biofuel generators are now a hot ticket in the Western sustainable development space, and adobe has long been praised by progressives as a green building material. But what strikes me as the key commonality between these two examples, and what I liked about Karen's post, is that she makes clear this isn't about a green image for much of the BoP - it's about money.

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