Meaning

What do you do when the world is “evacuated of meaning”? This is the wicked problem Walker Percy concerned himself with.

The search is never over.

What the fossil fuel industry doesn’t want you to know

Just because you don’t like Al Gore, doesn’t mean he isn’t telling you the truth:

“…the climate crisis is a fossil fuel crisis. The solutions are going to come from a discussion and collaboration about phasing out fossil fuels. And there’s only so much longer they can hold this up and tie us down and keep us from doing the right thing.”

Fight. It’s time to regenerate this world.

Regeneration: The Future of Community

So our book is finally here. At one point – when we were at 500 pages – I almost gave up. But then I remembered Gail Mazur‘s advice: “anything worth doing is worth doing badly,” and decided to carry on. Now, at 320 pages, this book tries to cover the various angles and sights and buzzwords we see creeping into the regeneration ecosystem (pun intended).

The book’s original title was Regeneration: The Future of Community, but as we went on, it ended up becoming Regeneration: The Future of Community in a Permacrisis World.

What’s the big idea? Actually we think there are several.

Climate change is the greatest market failure in history. Its costs are not priced into market transactions because third parties overwhelmingly bear them – they are euphemistically called “externalities.” There is a fatal misalignment between what is in the interests of the economy and the incentives of the companies that comprise it. Nature, and the communities we live in, are nowhere part of the equation!

 Regeneration means regenerating the Common Good. Our position is this: The Climate Crisis and the Collapse of Society are both symptoms of the same fatal sickness: the destruction of the Common Good.  We cannot compartmentalize the climate and separate it from the rest of society or our activities. 

Here are the questions we – Philip Kotler, Enrico Foglia, and myself, asked ourselves:

The choice is clear. It is regeneration, or extinction.

Learn more at the Regeneration Marketing Institute >>

Steel Pulse: “Only One World (Wicked Problems)”

The legendary reggae band Steel Pulse (one of Bob Marley’s favorites) raises its voice to challenge the world to come together – a “movements of movements” – to save the Earth:

The song is a collaboration between Steel Pulse and The Wicked7 Project.

Special thanks to Jessica Lieng from the W7 Working Group for putting together the video. Maximum respect to Steel Pulse and David Hinds in particular!

Webinar: “Population & Migration”

Join us for the latest webinar from the Wicked7 Project >>

Join Philip Kotler and Christian Sarkar as we discuss the final wicked problem of the Wicked7 Project. With us for the webinar – a group of dynamic personalities from Palermo, Sicily:

Leoluca Orlando. As Mayor of Palermo, Orlando’s extraordinary vision and courage has changed our understanding of immigration, tolerance, and the fight against corruption.

Claudio Arestivo. A co-founder of Moltivolti – a unique regenerative business – which serves as an example for the future.

Melania Memory Mutanuka. An immigrant from Zambia, she is an emerging leader with a purpose.

Carmelo Pollichino. A passionate leader and the head of the non-profit Libera Palermo contro le mafie

Francesco Bellina. An award-winning photographer and artist whose brilliant work on the problems of migration and exploitation are featured in leading newspapers such as the Financial Times and The Guardian.

Thinkers50: Conversation with Philip Kotler

It was my great honor to interview the “Father of modern Marketing” on his lifetime of achievements in marketing.

Professor Philip Kotler received the Thinkers50 Lifetime Achievement Award for his work over the past 50 years. I am deeply grateful for his friendship and mentorship – and everything he has done to demonstrate how marketing must be a force for good.

Paul Polak: 12 Social Entrepreneurial Principles for Solving Poverty

Sometimes I wonder why we have forgotten these principles from the late Paul Polak. When I chatted with him about the $300 House, he wanted me to reconsider and make it a $100 House. His point was simple: affordability drives design.

Now, as part of the research agenda of the Regenerative Marketing Institute, I’m thinking about how these BoP principles and Stuart Hart‘s BoP protocol apply to the developed world — to communities trying to find a way back from the COVID-crash.

Here are Polak’s principles:

1) Go to where the action is. You can’t solve poverty from a World Bank office.
2) Talk to the people and listen to what they have to say.
3) Learn everything about the context of the problem and the people.
4) Think and act big. No reason to be modest. Small solutions applied thousands of thousands of times.
5) Think like a child to find the obvious solution people have missed in the past. (Irony of thinking big and like a child)
6) See and do the obvious. Emersing yourself in the problem helps.
7) If someone has invented it–you don’t have to. Find existing solutions
8} Make sure your approach can be scaled up.
9) Design for the poor. Affordability rules the design process with poor customers.
10) Follow practical 3 year plans. Must transform into effective work plan for 3 years.
11) Continue to learn from your customers. (Interviewed more than 3000 farm families, $12 solar lantern)
12) Don’t be distracted by what other people say (Almost every project I’ve done has had sceptics)

Let’s add another principle for impact innovation:

13) Design for justice. (The design schools don’t)

It’s time for a Movement of Movements

It’s time to put aside our toys – our ideologies and guns – and look at this time in history as our final exam. This is a test, as Buckminster Fuller said, to see if we, the human species, deserve to carry on. COVID has shown us that we cannot find consensus on how to deal with the virus. 

Time’s running out. Philip Kotler, Karthiga Ratnam, and I think it’s time for a movement of movements.

Learn more on the Wicked7 Project site >>

The Wicked7 Project Meets the #ForkintheRoad

What are we going to do now?  The #forkintheroad which Buckminster Fuller warned us about is here now >> “Whether it is to be Utopia or Oblivion will be a touch-and-go relay race right up to the final moment… Humanity is in a final exam as to whether or not it qualifies for continuance in the Universe.” 

What will it take to leap across the chasm and undo the destruction we’ve caused? Why can’t the UN fix it?

We’re hurtling into a state of climate emergency whilst we simultaneously face the convergence of the Wicked7.

What are the Wicked7? The world’s most urgent problems.

We’ve distilled over 200 problems into the Wicked7:

  • The Death of Nature
  • Inequality
  • Hate & Conflict
  • Power & Corruption
  • Work and Technology
  • Health and Livelihood
  • Population & Migration

You can’t solve wicked problems. That’s what we’ve been led to believe. And for years, we haven’t. Solve them, that is.

Well, if not now, then when?

Wicked problems must have virtuous solutions. If any lesson has emerged from this COVID-19 pandemic, it is this: we must address the urgent problems of the world now, or perish. Why? Because COVID-19 is just the tip of the proverbial iceberg… the ecosystem of wicked problems will not wait.

After working on this idea for over a year, Philip Kotler and I kicked off the Wicked7 Challenge on April Fool’s Day, 2021.

Our first challenge? The Death of Nature.

Join us >>

P.S. – Bucky Fuller was wrong. Thanks to Sonmoy, one of our W7 advisors, we now see that there’s a triple fork in the road, and utopia is simply no longer an option. What we must fight for is survival.

Leverage Points: Where to Intervene in an Ecosystem

Once again, it is useful to study the past to learn what applies here to our ecosystematic journeys. Of particular interest is the work of Donella Meadows, who taught us how to focus on having the most impact on a system (Bill Gates, listen up!) >>

Where to intervene:

12. Constants, parameters, numbers (such as subsidies, taxes, standards).
11. The sizes of buffers and other stabilizing stocks, relative to their flows.
10. The structure of material stocks and flows (such as transport networks, population age structures).
9. The lengths of delays, relative to the rate of system change.
8. The strength of negative feedback loops, relative to the impacts they are trying to correct against.
7. The gain around driving positive feedback loops.
6. The structure of information flows (who does and does not have access to information).
5. The rules of the system (such as incentives, punishments, constraints).
4. The power to add, change, evolve, or self-organize system structure.
3. The goals of the system.
2. The mindset or paradigm out of which the system — its goals, structure, rules, delays, parameters — arises.
1. The power to transcend paradigms.

Read all about it >>

Multi-stakeholder Jobs to be Done

One of the points of the Wicked7 Project is to demonstrate how we have a shared responsibility — business, government, and social institutions — to work together for the future of the planet.

By definition, solving society’s most urgent problems is a balancing act between the various requirements and needs of the different stakeholders across all sectors.  Our policy-making must be driven by this idea of balance if it is to create a sustainable and resilient society.


Read >> The Unmet Needs of Society: Introducing Multi-stakeholder Jobs to be Done by Christian Sarkar, Anthony Ulwick, and Philip Kotler.

Politicians and Decision-Making

We are now at that point in history where collapse seems inevitable: political, social, environmental, civilizational. The decisions our politicians make are killing us.

“Where there is no vision, the people perish.”Proverbs 29:18

In Texas, we can applaud our fearless Governor Greg Abbott and his Republican mafia for destroying any pretense of serving the public good (see exhibits A and B). Every decision made by leaders in the Republican Party is made based on ideology, not reason, science, or even common sense. Some argue we live in the Age of Social Murder. The Democrats, for their part, are slightly better — but certainly not equal to the task which lies ahead.

It’s time to depoliticize decision-making.

Either that, or our time is up.

The Pyramid of Love: can we escalate peace and justice?

The work of leadership has never been more clear: it is to bridge the gap — across all boundaries — and to create a way forward for the common good. The pyramid of love reminds us that it is possible to resolve conflicts and escalate peace.

Says David Hinds of Steel Pulse: “Where there is no love, there can be no justice; and where there is no justice, there will never be peace.”

That about sums it up.

The Pyramid of Hate: incitement and escalation — from bias to genocide

As the Senate holds its second impeachment trial of president Trump, they would be well advised to educate their members on how incitement and escalation of hate can indeed lead to violence and even genocide. Here’s a slightly modified version of the Pyramid of Hate developed by the Anti-Defamation League (ADL), Echoes and Reflections, and the Holocaust Center for Humanity.

The pyramid reminds us that hatred can be used to dehumanize people by race/color, tribe, ideology, and faith. The misleader polarizes and radicalizes their followers, pushing them up the pyramid of hate.

From “The Ecosystem of Poverty” to “The Ecosystem of Wicked Problems”

In 2015, the late architect and teacher Abhijit De and I wrote an article for Thinkers called The Ecosystem of Poverty: Lessons Learned from the $300 House.

In it we popped in a chart that was constructed after days and months of debate with students, surveys and discussions with villagers in rural India, and the “experts”:

Soon after, we were working on the concept of a “smart village” – with the sobering realization that the problems of the poor are not going to be solved without solving other wicked problems. A few days before his untimely passing, we discussed expanding this chart.

Now, in 2020 – Philip Kotler and myself, along with a gracious cast of advisers, have embarked on this journey once more; this time we are looking to map the world’s most urgent wicked problems.

This ecosystem of wicked problems is not going to magically vanish. It needs our attention, now more than ever.

And that’s the point of The Wicked 7 Project.

Join us >>

Brand Activism: From Purpose to Action

Professor Philip Kotler – the “father of modern marketing” – and I have co-authored a book: Brand Activism: From Purpose to Action

Brand activism is driven by a fundamental concern for the biggest and most urgent problems facing society. The main idea here is that when government fails to do its job, business has a civic responsibility to stand up for the public interest. It’s what a good citizen does.  

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available in the following countries

US UK DE FR ES IT NL JP BR CA MX AU IN

The book introduces the reader to regressive and progressive Brand Activism, and shows how the best businesses are making the world a better place because their activism is a differentiator – for customers, for employees, and for society at large.  We also examine the role of the CEO.  

Here’s a look at the table of contents:

Screen Shot 2018-11-22 at 5.54.07 PM.pngThe book includes the Sarkar-Kotler Brand Activism Framework, a toolkit for business leaders looking to transform their companies and institutions.  

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The book also includes interviews with leaders from various fields:

  • Scott Galloway
  • John Elkington
  • Raj Sisodia
  • John Ehrenreich
  • Christopher Davis
  • Stephen M. R. Covey
  • Hennie Botes
  • Stuart L. Hart
  • David “Dread” Hinds
  • Clark Fox

and 

Philip Kotler

Finally, we’ve launched a separate website to help individuals who want to learn more – www.activistbrands.com.  We hope you find it useful.

How Marketing Guru Phil Kotler Stepped Up to Confront Capitalism

The Founding Fathers didn’t envision corporate personhood, or Citizen’s United.

In fact, I wonder what they’d think about capitalism as an enemy of democracy and a grave threat to the very survival of life on Earth.

Is democracy doomed?

What must we do to save capitalism from itself?

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Enter Phil Kotler. The legendary marketing guru is marketing a new sort of product these days. He is trying to fix Capitalism, a system he believes has helped create more wealth for more people than any other economic model.

Says the esteemed Professor Kotler (he’s taught at Northwestern for 50 years!) >>

“Capitalism must evolve to serve the needs of all citizens, not just the very affluent. Our goal is to discuss the 14 Shortcomings of Capitalism and systematically analyze the problems and potential solutions. We want to gather opinions and recommendations from everyone – and begin the process of saving capitalism from itself.”

It’s great to see one of the greatest capitalist minds working on reforming capitalism with a capital C.

According to Kotler, the current state of capitalism is falling short because it:

1. Proposes little or no solution to persistent poverty

2. Generates a growing level of income inequality

3. Fails to pay a living wage to billions of workers

4. Doesn’t create enough human jobs in the face of growing automation

5. Doesn’t charge businesses with the full social costs of their activities

6. Exploits the environment and natural resources in the absence of regulation

7. Creates business cycles and economic instability

8. Emphasizes individualism and self-interest at the expense of community and the commons

9. Encourages high consumer debt and leads to a growing financially-driven rather than producer-driven economy

10. Lets politicians and business interests collaborate to subvert the economic interests of the majority of citizens

11. Favors short-run profit planning over long-run investment planning

12. Should have regulations regarding product quality, safety, truth in advertising, and anti-competitive behavior

13. Tends to focus narrowly on GDP growth

14. Needs to bring social values and happiness into the market equation.

So that’s my latest project – helping Kotler and friends get the word out and make a difference.

Like the $300 House Project, I’m helping build an “ecosystem of concerned folks” to face the challenge.

We began by enlisting the Huffington Post as our media partner. 

We now have a FIXCapitalism channel; we’re slowly beginning to get some attention with these articles:

Check out our FIXCapitalism website, read the book, like our FIXCapitalism Facebook page, and follow us on Twitter.

The future is too important to leave in the hands of the corporations and their paid stooges – the politricksters in D.C.!

Can you help? Connect us to others who are interested – who may have a point of view they want to share – and can help move the conversation forward. Join us!

Help spread the word!

Seeing Differently: A Theory of Art for Our Times

T.S. Eliot had his “social function of poetry” and we have social media – YouTube, Twitter, Facebook, etc. etc.

Could it be that what we celebrate as the art of our times is not Art at all? If so, What is Art? 

At best, our culture has relegated Art to the dubious field of “entertainment” – hijacked from its true purpose, left to serve as a decoration on the public walls of high society museums and the private walls of wealthy collectors. At best, art is fashion.

Wait, wait, wait.

John Seely Brown’s latest newsletter takes us to task by raising an important point: 

Artists are not included in our debate on how we build
the economy for the future. They’re excluded in our nation’s emphasis on innovation which has been left to the STEM crowd. We’re not thinking about designing for emergence. Innovation is about seeing the world differently. Who is better at helping us see the world differently than the artists?”

Why is this? I can think of three reasons:

1) The “art” made by “artists” is irrelevant

2) The “artists” are not Artists

3) Art is generally devalued in a society polarized by Science, Fashion, and Politics

Alright, I’m being a bit silly, but here is someone who’s not:  Ben Davis and his 9.5 Theses on Art and Class (h/t Doug Smith) serve as both an indictment and a wake-up call for artists everywhere. Have a look at this excerpt:

2.0 Today, the ruling class, which is capitalist, dominates
the sphere of the visual arts

2.1 It is part of the definition of a ruling class that it
controls the material resources of society 

2.2 The ruling ideologies, which serve to reproduce this material situation, also represent the interests of the ruling class

2.3 The dominant values given to art, therefore, will be
ones that serve the interests of the current ruling class

2.4 Concretely, within the sphere of the contemporary visual
arts, the agents whose interests determine the dominant values of art are: large corporations, including auction houses and corporate collectors; art investors, private collectors and patrons; trustees and administrators of large cultural institutions and universities

2.5 One role for art, therefore, is as a luxury good, whose
superior craftsmanship or intellectual prestige indicates superior social status

2.6 Another role for art is to serve as financial instrument
or tradable repository of value

2.7 Another role for art is as sign of “giving back” to the
community, to whitewash ill-gotten gains

2.8 Another role for art is symbolic escape valve for
radical impulses, to serve as a place to isolate and contain social energy that runs counter to the dominant ideology

2.9 A final role for art is the self-replication of
ruling-class ideology about art itself–the dominant values given to art serve not only to enact ruling-class values directly, but also to subjugate, within the sphere of the arts, other possible values of art

OK. But why are artists banished from the Republic? 

One can argue (via Ben Franklin) that the last artist was Jesus and before him Socrates. I’d add folks like Gandhi, Malcolm X, Mandela, Marley… The artist sees differently. Not just paintings on a wall, but society itself. Who paints our vision for society today? Lady Gaga or our lobbyists?

Walker Percy saw the artist (or writer) as a canary in the coal mine. The artist as prophet. But we are deaf to the canary. We’ve banned our artists from society – not by muzzling them with threats and jail time, but by turning them into designers of consumer and fashion goods.  

For the first time in history, we’ve made art useful as a financial commodity- and killed it in the process.

Meanwhile, somewhere, hidden from the lights of Sotheby’s and Christie’s, art is still being made.

INFOGRAPHIC: Are you a Wavemaker? (With Tips on Collaborative Innovation)

Here’s an interesting classification or segmentation of change makers (from Deloitte) along with some advice on how to make a difference via collaboration >>

Steady Supplier: Combine your contextual knowledge with the Public Value Innovators to create new value

Multirational Multinational: Engage with Citizen Changemakers to gain local insights and ideas

Investors: Connect Wavemakers to amplify impact

Public Value Innovator: Leverage the reach of the Multinationals to reach more communities

Citizen Changemaker: provide feedback to all in order to get to root issues

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Why Making Money is Not Enough

MIT Sloan

This is going to be a central theme in business going forward: what is our purpose?

Here’s William Cohen talking about Peter Drucker‘s perspective:

“…until Drucker came along most everyone believed the basic “fact” that the purpose of a business was to make money. That is, to make a profit. This belief leads to a corollary, another myth, believed by all–that is, that the goal of any business is profit maximization. In other words, whatever your business, your goal should be to make as much profit as possible. If you accept making a profit as a business’s purpose, the second part just follows naturally. This might even seem worthy to many. To quote Michael Douglas’s famous (or infamous) statement in his role as Gordon Gekko in the 1987 movieWall Street: “Greed is good.” Even today many “know” greed, or profit maximization to be the correct prescription for business success, even if it is amoral or shouldn’t be “good” from a moral perspective. Not so fast, Gordon. As Drucker so often said, whatever everyone knows is usually wrong, Hollywood films not excepted. Drucker told us first that profit is not the purpose of business and that the concept of profit maximization is not only meaningless, but dangerous.”

Now Ratan Tata and gang (myself included) have a similar message

The problem with industrial capitalism today is not the profit motive; the problem is how the profit motive is usually framed. There is a persistent myth in the contemporary business world that the ultimate purpose of a business is to maximize profit for the company’s investors. However, the maximization of profit is not a purpose; instead, it is an outcome. We argue that the best way to maximize profits over the long term is to not make them the primary goal.

So what is to be done?

What is your company doing to create purpose beyond profits? The future of our planet depends on your answer.

Read: Why Making Money is Not Enough

Inclusivity: Will America Find Its Soul Again?

I know what some of you are thinking – “Well, did America have a soul to begin with?” I happen to think it did. For me the soul of America is “We, the people…”

Furthermore, I’m quite sure that people, as defined by our founders, did not mean corporations. (See what Charles Handy has to say >>)

But to get back to the topic of inclusivity, I’d like to make a shameless plug for our new book, co-authored with University of Michigan’s Professor Michael Gordon, called Inclusivity: Will America Find Its Soul Again?

inclusivity bookbuy now

BUY now >>

So what’s all the fuss about? The book is about asking questions:

  • How can companies take better care of their employees–and thrive?
  • Why don’t they see the opportunities in creating social value?
  • Do Americans think we have a fair distribution of wealth?
  • What are new means of putting our collective talents to work?
  • How can communities take the lead in creating opportunity?
  • How can public education prepare all students for the future?
  • How can better health care be made available without doctors?
  • How can communities do something about global warming?
  • How can you make a difference?
  • Why should you care?

Inclusivity: Will America Find Its Soul Again is a book of questions, hints, and suggestions about creating more opportunity for more people–starting with the USA, but looking at and learning from the rest of the world.

The very idea of the “United” States is based on the principles of inclusivity–all men and women are created equal under the law. But we seem to have lost our conviction that inclusivity is possible or even to be desired. The current divisive political climate, along with economic uncertainty, has fostered an atmosphere of fear and narrow-mindedness across the country.

What can we do in the face of this reality? The choice is not easy, but it is clear. Either we will decide to be more inclusive, or we will turn against each other – finding reasons to divide ourselves, not just from each other as citizens, but also from a shared future.

The USA, unless we decide otherwise, will become simply the SA.

This book is dedicated to an inclusive future for all our children, including my daughters M and K, and the idea that the United States is still the last best hope for democracy and inclusivity. We won’t have one without the other.

The book includes the following sections:

  • What Is INCLUSIVITY?
  • Inclusive World
  • Inclusive Entrepreneur
  • Inclusive Economy
  • Inclusive Cities
  • Inclusive Education
  • Inclusive Health
  • Inclusive Leadership
  • Inclusive Future

Let us know what you think!

P.S. – We don’t want this, do we?

Design Your Life, Change the World

Michael Gordon‘s book, Design Your Life, Change the World: Your Path as a Social Entrepreneur [A GUIDE for CHANGEMAKERS] is for changemakers – the people and organizations that want to make a difference in the world. 

book

The book tries to answer two questions, says Professor Gordon:

1) How can organizations best address important societal problems such as poverty, inadequate health care, sub-par education, and an unhealthy planet?

2) What’s the best advice for students who want to address these issues and still live lives of relative comfort?

The reason I’m helping the professor is because now, more than ever, we need the brightest students to tackle the world’s biggest problems. And the oil-coal-nuclear lobby isn’t making things any easier…

Are you a changemaker?  Go find out >> 

P.S. – you can download the PDF version here >>

Richard Branson: Business As Unusual

I don’t watch TV much but I just caught a clip of Richard Branson promoting his book Screw Business As Usual. Looks like he’s on the same page as Stuart Hart – who has been essentially saying the same thing for twenty years.  They ought to compare notes!

What was funny was watching Branson sit there as the producers had him wait and wait for his three minute interview.  He was clearly in distress – the anguish of the entrepreneur who can’t bear to waste time – as he smiled and waved every time they turned the camera on him. 

The book is available later this month… have a Happy Green Christmas!

The Promise of Integrated Development

I first met Bob Freling at a board meeting of the Solar Electric Light Fund (SELF) in San Francisco several years ago.  At the time, I felt that here was an NGO doing innovative things but not getting enough visibility for their work. They were solar way before solar was cool.

What struck me is how informal and close the board members were.  One of the board members – Larry Hagman (good ol’ J.R. Ewing) – did a brilliant set of solar commercials which I think says a lot about his character and wanting to make the world a better place (quite the opposite of his TV character!). But I digress.

The story here is that SELF pioneered the use of solar power to fight “energy poverty” across a spectrum of applications with their “solar integrated development model” – from clean water, to drip irrigation to improve food security, to electricity for health clinics, schools, and micro-enterprise.

In his blog post about the $300 House Energy Challenge, Bob explains:

“It’s simple really. First, solar energy powers pumps and filters for clean water. This also enables drip irrigation for critical crops. Once people have those necessities, the solar energy is used to power health care facilities which can power equipment and refrigerate vaccines, for example. This increasingly healthy population can then open schools which are powered by solar to provide computer and Internet-based learning. Finally, these well-fed, well-cared for, well-educated villagers can begin community and entrepreneurial activities to grow their economy.”

Bob’s optimism is tempered with reality. The Millennium Development Goals won’t be achieved without energy access, he explains in another blog post.  In case you forgot what the MDGs are (as I often do) they’re listed as:

1) eradicating extreme poverty and hunger;
2) achieving universal primary education;
3) promoting gender equality and empowering women;
4) reducing child mortality;
5) improving maternal health;
6) combating HIV/AIDS, malaria, and other diseases;
7) ensuring environmental sustainability; and
8) building a global partnership for development.

Note that they are interrelated, ecosystemic problems – and that from Bob’s perspective, energy is the key factor which makes all of them feasible.

With the $300 House project, my eyes have been opened to the fact that the approaches for dealing with the poor are often not very constructive, and sometimes end up doing more damage than good.  That’s what  $300 House adviser Stuart L. Hart is talking about when he says we need to create smaller problems. It is also a concern of our critics on the $300 House. When I spoke to Matias Echanove recently, he was concerned that mass produced housing could in fact disrupt the local economy – the small businesses that are based in informal slums around the country. I hear him.

Our $300  House project is exploring ways to integrate services and jobs into the ecosystem as well, and we’re reaching out to talk to the leaders in the communities that are interested in this approach. In India, we’ve just completed a survey – with the help of THL – that covers 15 villages in three of the poorest states in India – Uttar Pradesh, Bihar, and Jharkhand.  I’ll go into more detail in a later post.

For me the question is quite simple – we see an explosion of interest in  developing integrated  townships for the middle class in India, but why is there nothing comparable for the poor? To borrow a phrase from the US, why can’t we build “master-planned communities” for the poor?

Is it too much to ask that governments, NGOs and development institutions, and businesses work together with the communities involved to build integrated solutions?

integrateddev.gif

Unfortunately, there are far too few examples of collaborative development. This is something we all need to look at urgently.  There is also a problem of ownership.  The development community, NGOs, and most governments think they “own” the problem.  Unfortunately, without a business mindset to make solutions scale, their is so little real progress.

The poor remain poor. 

And that’s why the work Paul Polak is doing is so important.  He’s looking at making small changes at the bottom of the pyramid; small changes that make a big difference in the earnings of the poor. This is also the approach advocated by Esther Duflo and Abhijit Bannerjee in Poor Economics.

At a much larger scale, we see an example in the Gates Foundation‘s approach – which is all about examining the ecosystems of poverty.  A common criticism of the Gates Foundation goes along these lines: “How can people like Gates, living in a different universe, help people at the bottom of the pyramid?”  This is a false and damaging argument, but answered quite well by Sam Dryden:

“Some people may ask how my team and I–working at the world’s largest foundation located in a prosperous corner of a rich nation–can relate to a subsistence farming family in Ethiopia or Bangladesh. This is a very reasonable question to ask. The farmer has a direct connection to the land and we are considerably removed, both by distance and culture. We begin by realizing these differences and humbly listening to farmers and their families, learning and respecting their cultures, ways of living, and knowledge of place and home. The solutions we seek are those appropriate and welcomed in this context, not those imposed by distant values or interests.”

And finally, perhaps there is an alternative to the giant top-down programs, and incremental bottom-up “Let the Poor Do It Themselves” approaches we’ve encountered.

With the $300 House, we’re thinking micro-developmentis it possible to build integrated micro-solutions at the village level?  And in cities, at the neighborhood level? 

Why not?

The Ecosystems of Poverty

When I first started working on classifying online ecosystems, I had no idea that my thinking there would influence my thoughts on the $300 House. But now it seems like the systems approach to understanding wicked problems is pretty much the only way to go.  None of this is new, of course, but I’m still impressed at the power of ecosystem thinking.

Here’s how Nobel prize laureate Gunnar Myrdal was thinking about the problems of race and poverty:

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The “vicious circle” has not yet made its way into our political thinking though, if we judge the policy makers of today’s Congress. Heck, they can’t even bring themselves to accept the effects of global warming – in no small part thanks to our lobbyist friends.

The idea of poverty as the outcome of a dysfunctional ecosystem is explained here as well:

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Note that this applies to poverty in the US as well, not just the emerging world.

So, part of tackling the issue of affordable housing for the poor is to try to understand the interconnected nature of these problems.  I tried to draw causal arrows between the various problems, but gave up. In essence, we have a problem of insecurity, in which all of these factors must be addressed simultaneously if we are to change the vicious cycle of poverty, disease, and suffering.  Here’s what I ended up with:

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The poor live in an insecure, unbalanced universe.

I’m calling it the “ecosystems of poverty.”

Next we’ll look at the idea of integrated development (another old idea) which fell out of favor, but must be re-evaluated in today’s light if we are serious about poverty alleviation.

UPDATE — SEE:  From “The Ecosystem of Poverty” to “The Ecosystem of Wicked Problems” 

The Middle Class: An Endangered Species?

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The story is captured in this snippet borrowed from a larger infographic from the New York Times. The middle class is under historic assault in the US, explains Robert Reich, and this bodes badly for democracy, not just here, but all over the world. 

Here’s the money quote:

Look back over the last hundred years and you’ll see the pattern. During
periods when the very rich took home a much smaller proportion of total
income — as in the Great Prosperity between 1947 and 1977 — the nation
as a whole grew faster and median wages surged. We created a virtuous
cycle in which an ever growing middle class had the ability to consume
more goods and services, which created more and better jobs, thereby
stoking demand. The rising tide did in fact lift all boats.


During periods when the very rich took home a larger proportion — as
between 1918 and 1933, and in the Great Regression from 1981 to the
present day — growth slowed, median wages stagnated and we suffered
giant downturns. It’s no mere coincidence that over the last century the
top earners’ share of the nation’s total income peaked in 1928 and 2007
— the two years just preceding the biggest downturns.

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We’re losing our competitiveness, as well as our ability to lead.

There’s a growing sense in the business community that we must find a way to work together again. To do this, we have to reject political terrorism – the political brinksmanship which prevents us from finding common ground or even beginning to look for honest solutions. Howard Schultz, the CEO of Starbucks, recently created a stir when he suggested that it was time to halt all political donations. Warren Buffett did the same with his no-nonsense plea to raise his taxes.

Welcome to the third world, America! Looks like we’re headed on the fast-track back to serfdom.  Brought to you in large part by the GOP and corporate Democrats.