Once again, I make a fool of myself… Can you be a 33% Sanyasi?
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?
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-development – is it possible to build integrated micro-solutions at the village level? And in cities, at the neighborhood level?
The $300 House at Activate2011
Sometimes not knowing what you’re doing can help you do it.
Here I make a fool of myself at the Guardian’s Activate2011 conference in London:
The Economist: $300 House on Schumpeter
Thanks, Adrian! Read the article here >>
And if you haven’t already, submit your ideas to the $300 House Open Design Challenge!
The $300 House: Go, Go, Go!
The final Harvard Business Review post in the series, and hopefully the start of some real change at the bottom of the pyramid.
Our goal is to go social for social business. Can social co-creation help the poor?
Keeping fingers crossed. Thanks to Ingersoll-Rand for the sponsorship and to all the judges and advisers at 300House.com! Thanks jovoto and COMMON. Thanks Shaun.
Thanks also to Scott Berinato at HBR and of course – VG, my partner in crime.
The $300 House: Seth Godin on the Marketing Challenge
Seth Godin posts a very insightful blog entry on the HBR site. He’s talking about the challenges of marketing at the bottom of the pyramid:
When someone in poverty buys a device that improves productivity, the
device pays for itself (if it didn’t, they wouldn’t buy it.) So a drip
irrigation system, for example, may pay off by creating two or three
harvests a year instead of one.
Read all about it >>
The $300 House: Bob Freling on the Energy Challenge
The Solar Electric Light Fund‘s Bob Freling has posted an entry in Harvard Business Review about his Solar Integrated Development (SID) Maturity Model and how it fits into our concept of the $300 House.
Here’s Bob waxing eloquent:
Together with potable water, nutritious food, accessible health care,
educational opportunity, and economic empowerment, the $300 House
completes this virtuous ecosystem in which individual households and
their communities can march hand in hand towards a bright and
Read the whole post The $300 House: The Energy Challenge >>
The $300 House: David Smith on the Financial Challenge
David Smith‘s HBR post on the financial challenge of the $300 House raises some very important issues:
Cracking the challenge of slums is the world’s biggest problem of the next quarter-century, because the ecology of slums and the ecology of cities are linked. We cannot have a healthy global economy without healthy cities, and we cannot have healthy cities without tackling slums.
Join us >>
A Creation Space for the $300 House
We’re building a “creationspace” (JSB’s word) for the $300 House-for-the-Poor at 300house.com >>
Please sign up, and tell your friends!