Is it Wrong for Business to Profit from the Poor?

Mohammad Yunus is a nice man. He's also very smart, innovative, a risk-taker -- and a winner of the Nobel Prize for Peace. However, he is sometimes wrong. And he's most certainly wrong when he insists, as he has done so frequently in recent years both in his books and in public appearances, that the solution to global poverty lies in forming "social businesses" that never distribute profits to investors. “Poverty should be eradicated," Yunus asserts, "not seen as a money-making opportunity.” He believes that investors in social businesses should only get their money back. In my view, that adds up to a sizable interest-free subsidy,…

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Affordable Design Comes to Denver – “Design for the Other 90%” – RedLine Gallery

by Kali Friedmann The Smithsonian Cooper-Hewitt “Design for the Other 90%” exhibit has arrived at RedLine Gallery in downtown Denver, showcasing products designed explicitly to fit the needs and circumstances of the world’s poorest customers - the “other 90%” who are bypassed by current design processes. The exhibit, organized in part by International Development Enterprises (iDE), showcases products from an array of designers, engineers, and organizations focused on development, including Design Revolution (D-REV), the non-profit technology incubator co-founded by Paul Polak. D-REV is an outgrowth of Dr. Polak’s vision of fomenting a revolution in how companies design, price, market, and distribute their products, to produce…

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The Birth and Death of Big Institutions

By Paul Polak The failure of development is closely tied to the ossification of big institutional structures. The World Bank was born as a vehicle for reconstructing Europe after World War II, a task it carried out with amazing success. But when it morphed into a massive institution to address global poverty, it didn’t do so well. Schumacher launched a revolution in design with his admirable book, Small is Beautiful, but the appropriate technology institutions that emerged from it became ossified, failed to address market forces and died. The Politics of Innovation I define institutions as radical ideas cast in concrete. The radical notion that…

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How to Triple the Income of Sprinkling Can Farmers in Asia and Africa

by Paul Polak There are at least 50 million poor farmers who use sprinkling cans to irrigate quarter acre vegetable plots and sell what they grow to customers in cities and towns in Asia and Africa. I  have interviewed hundreds of them, and have no doubt that they can double or triple their incomes with access to improved affordable irrigation, farming methods, and access to markets. Here is a case in point. In August, 2009, Bob Nanes, (IDE Ghana), Sue Haley (IDE Africa) and I visited 14 sprinkling can farmers who produce vegetables for the million or so people who live in Kumasi, Ghana. Here’s…

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