A Better World Faster - Social Impact Challenge

Normally I do not toot the horn for superginormous companies figuring they have enough muscle already. But I want to give a shout out to Google for this one - To mark India's Independence Day this year, they launched the social Impact challenge in India - A Better World, Faster.

Copied from thier website below:

The Google Impact Challenge has launched in India in an effort to support innovators who are exploring new ways to solve the world's most pressing problems. If you’re an Indian non-profit, tell us how you would use technology and innovative approaches to tackle problems in India and around the world. Four selected non-profits will each receive a Rs 3 crore Global Impact Award and assistance from Google to help make their project a reality.

• 5th September 2013 - Final day to apply to the Google Impact Challenge.
• 21st October 2013 - Google announces the finalists, and the public votes online for their favourites.
• 31st October 2013 - Each finalist team will pitch its idea to an esteemed panel of judges at an event in Delhi. Four finalists, including the non-profit chosen by the public vote, will be announced as Global Impact Award recipients.

If you missed it this year I have heard it may become annual - so watch for it next year.

Pashma: Textile Art Meets High Fashion

My 15 year history with digital printing had not prepared me for a career in high fashion. A trip to Delhi awakened me to the revolution digital printing has wrought in the Fashion world. Sure, at HP, we had promoted our inkjet printers as suitable for personal creative expression on various media including textiles at shows and tech gatherings. But the application seemed to me boutique, never imagining the potential for unleashing the creativity of fashion designers. While attending the Wills Lifestyle Fashion Show for Pashma, I got a chance to tour the exhibition and check out designer ware. The first thing I noticed was the profusion of color, right after that the complexity of designs and then the fact that no two designs were alike. Gone are the bolts and bolts of fashion wear made from the same polka dotted print, checks or paisley. Using inkjet technology in digital textile printing allows for single pieces, mid-run production and even long-run alternatives to screen printed fabric.

Every designer now has the option of not just designing the cut of the dress but also the print and vary the print to suit the fall line of the cloth. And India with its rich heritage of color, art and creativity has transformed this technology into fabulous fashion. Printing on textile even has its own name now - DTG or direct to garment printing, "DTG, digital garment printing is a process of printing on textiles and garments using specialized or modified inkjet technology. Inkjet printing on fabric is also possible with an inkjet printer by using fabric sheets with a removable paper backing. Today major inkjet technology manufacturers can offer specialized products designed for direct printing on textiles, not only for sampling but also for bulk production." says wikipedia.

Magsaysay Award for Harish Hande, SELCO

Wonderful and well deserved: Harish Hande, of Bangalore founder SELCO, has received the Magsaysay Award, often described as the Nobel Prize of Asia. Congratulations. Selco Solar Pvt. Ltd,, founded as a social enterprise, is a provider of solar power technology to the poor.

Additionally from Carl Pope, Chairman, The Sierra Club:

Now two of our key India partners are being similarly recognized, and it honors us to be associated with them. The Barefoot University, led by Bunker Roy, was the first winner of the Sierra Club's Green Livelihoods Award and has now received Japan's prestigious environmental award, the Blue Planet Prize.

http://www.skollfoundation.org/barefoot-college-wins-625000-environmental-award/. 

And one of our key on-the-ground partners, Harish Hande, of the Solar Electric Company of Bangalore (SELCO), has received the Magsaysay Award. http://bit.ly/pgwoIx

It's fantastic to see the wonderful work done by these two organizations recognized, and I want to thank our India pioneers and friends for helping the Club identify and support them.

thanks Carl.

India Calling? First Answer the Question WII-FM?

The "India Calling", themed SAMBAA event on May 9, where I was a panelist, drew an astonishingly accomplished, enthusiastic, energetic and diverse audience with a range of interests (renewable to retail, rural to lifestyle). However almost everyone I chatted with (before as well as after the panel) had one underlying question in common:  If I go to India, will it work out (be successful)?

Its easy and appropriate to answer this vaguely.. well it really depends on what you want .. depends on what your goals are ..etc. because that is the reality. But as I think about it I realise this question can be handled like a corporate re-organisation where the first question that pops into my head  is :What's In It For Me or WII-FM?

So, go ahead, if you are considering a move to India have some fun with the following questions:
Q1 - Is moving to India a major strategic career change for you?
Your answer is NO if there is no financial downside to you such as loss of a paycheck (e.g. if your company is opening office in India and will move you or its a paid internship etc etc) and my advice is move to India but don't burn any bridges in US and while in India keep up with your contacts.  A major career change often requires you to give up something or making an investment.
Q2 -  What is the benefit or why do you want to move to India?
Most common answers to this one are - I want my children to grow up in India or I want to be with aging parent. Both are good reasons and you may have others but if you cannot clearly articulate a benefit it means your answer is NO and you should shelve the idea till you figure this out. I phrase the question as a benefit to you because other common answers I get are : I want to give back or I want to do good and those are poor success predictors and indeed are good reasons for you to stay here and engage with India in other ways.
Q3 - With this pre work done you are ready to answer WII-FM? Create a statement, write it down - take the long term view (long depends on what industry you are in - average is 3 years) because while it is easy to move back and forth these days, still some preparation and field work can make your move more fun as well as a personal and career development activity. This question often has to do with what makes you happy - which is important in keeping your attitude positive when things look low. It helps you define boundary conditions.

With this under your belt - its time to talk specifics!

Other topic: Several people brought up spousal agreement. I do believe that if involved parties answer the above questions first individually and then move to a common ground things will go better. Also - if you haven't been to India in the last 2 years - make a trip - some things are just the same but others are radically new.

Most importantly - like other decisions this one too is a heart decision - follow your heart and your head will figure out what to do to make it work.

Mainstreaming Microfinance: Malegam Report and Artoo

Lately, the micro-finance industry reports have been squarely in two opposing camps: unconscionable profiteers or saviours for stimulating the economy for the poorest of poor. If nothing else, the Malegam report, as an official, publicly available document from India, shifts the conversation from sensationalist news items to promote informed debate. Additionally, having regulations (such as the 24% cap on interest rates, 25K rupee limit on loan size, max 2 lenders for 1 client etc) outlined in the report, mainstreams a  capital procurement instrument for the poor - a population not served by traditional capital markets.The debate is no longer whether micro-finance works or not- the debate is how to make it work better for the client as well as the lender. While many practitioners view the report favourably, some may argue otherwise; that the Malegam restrictions favor the bigger MFIs or that the industry will no longer be self-sustaining or that the restrictions are unenforceable. I think the report is a fantastic development irrespective of the specifics of the debate because it brings micro-finance into the mainstream.

In addition to all the analyses you can read for yourself (google or follow link above) I have another point to make- The report, with its concrete guidelines will spur technology innovation in bringing down the cost of transactions. IT hardware as well as software exits to bring transparency which reduces corruption and automation to reduce cost/transaction (of the large number of small loans MFI must deal with that raise their costs) but so far the MFI industry has been somewhat tech-averse - it increases risk to take a technology and market risk at the same time after all. With industry benchmarks to follow I believe entrepreneurs as well as established MFIs will be motivated to enlist technology to develop applications specif to the MFI industry.
For a specific example of "technology to the rescue" check out the initial results of start-up Artoo. Sameer Segal, founder of Artoo writes "we truly believe we can help MFIs bring their OER down to meet the new requirements".
Mainstreaming micro-finance will also allow the industry to open up new product offerings (e.g. savings accounts) that further benefit both client and lender.

Giving feels good: Message from Boond

Christmas and New Year are the most festive times of the year and the moments when we remember all our near and dear ones. It is a time to share the warmth and make others know that you care and remember.

This year we at Boond decided to make this sharing of warmth and happiness a little easier and inclusive through our `Boond with Christmas` webpage.
http://www.boond.net/boond_christmas.php

From this site you can send your friends and family anywhere in the world Christmas and New Year cards, 2011 calendars and nice ethnic gifts (made by rural artisans supported by our partners www.eyaas.com), and the best part is that all you have to do is choose and give us the recipients address since we will pack, ship and lick the envelopes for you. And better still is that all the proceeds from your order will go towards our Boond campaign for sending Boond Development Kits to Ladakh (rather than a big office building and a know all receptionist). So this means that you will not just share the happiness of the season with your friends and family who you send the gifts but also with those who are spending a dark and cold Christmas in a remote part of India.
Merry Christmas & A Happy New Year
Russ (Cofounder Boond- a social enterprise with a powerful business model)

The Microfinance Debate: What would you do?

Minimum information and maximum media coverage has created the monster microfinance debate: greedy bloodsucking bankers or saviours of the world?.
I am particularly troubled by the fervor and timing of this debate because Diwali/Christmas/New Year is when, motivated by a spirit of thankfulness and/or spirit of saving on taxes, we do our annual bit of charitable giving. How will you give this year? The Financial Times (thank you FT) article Microfinance: small loan, big snag is a nuanced view with data from many countries. Microfinance is still about lending to people with no collateral; where traditional banking did not lend. That has not changed. What has changed is the desire to scale- more capital to benefit more poor people; while the majority of microfinance institutions, still led by dedicated entrepreneurs, stay true to the mission, different elements (in India, e.g. it is corrupt politicians worried about losing votes if the poor benefit from entrepreneurship who have garnered much media attention) have taken advantage of the situation. This does not mean that sustainability (double bottom line- do good and do well) is inherently impossible. Another FT article Perhaps microfinance isn’t such a big deal after all presents the strategy on how to deal with the pangs of going mainstream. fly under the radar- Just lets tone it down- lets not call microfinance the way to solve every problem - its just banking after all.
How will you donate this year? Whether it is Kiva or Microplace some other form of lending - I urge you to do your own homework - it is complicated and I personally do not know a single greedy bloodsucking banker in the microfinance realm.

Gurgaon gone berserk

When it comes to new buildings Gurgaon, the pride of India Inc., has gone berserk. Berserk, in itself is not a bad thing, but berserk using proven to be unsound, financially, ecologically and carbon creating technologies, that even the developed world is eyeing askance is just plain "herd mentality". In my 8th floor high-rise flat, uninterrupted power is guaranteed. Actually its not uninterrupted- it comes back within a few seconds every time it goes off- ten times a day. How? At exorbitant cost from diesel fuelled generators. Gurgaon where basics like water, sewage, roads get scarcer every year, is sprouting malls and high-rises at a blistering pace. So when I walked into the spanking new T3 terminal at New Delhi airport, my heart did a tailspin. On the one hand it is nice to land in world class looking airport. On the other I wondered how they did it? Is it following my Gurgaon flat model?
The Director of Center for Science and Environment, Ms. Sunita Narain writing on the new T3 Terminal at New Delhi, in Times of India [19.11.2010] writes that the airport symbolises what we are doing wrong. I hope every architect, builder and bank in India reads this article. India must "think sustainable" for its own benefit. Eco-friendly is not just about using CFL lights or more efficient air-conditioners. First, it is about design to consume less to begin with. Second it is about using renewable energy. Technology exists for both and even if at this time the technology is expensive its pay-back for India, where energy costs are highest in the world, is attractive.
Besides the exorbitant cost of running the building (it has its own power station), the building is poorly designed for eco-promoting features like parking for public buses. "It is time we found new temples of modern India, which we can be proud of. Not another shopping mall which we want to pass off as an airport" she closes. I agree. Lets do the math. Lets think for ourselves.

Healthcare: Stuck between Scam India and Slum India

Believing in the right to life equals believing in the right to health: a basic human right. In India, right to health comes in the form right to clean water, nutrition, waste management, clean air even before it gets to curing sicknesses. So India is solidly "stuck between scam India and slum India" said Dinesh Trivedi of the Healthcare ministry during the session on Health and Happiness at the 2010 PAN-IIT conclave in Noida. He was making a case for public-private partnerships in bringing change to India. Of the total money spent in India on Healthcare, 80% is spent by the private sector and 20% by the government (public funds). This means that 80% of the spend goes to 20% of the population and 20% of the spend goes to 80% of the population. Unless we change something this trend will continue. Obesity related diseases go hand in hand with malnutrition related ones and the twain do not meet. The formation of institutions like the All India Medical Institute (AIMS) was visionary in combining the latest in medical research while also serving the poor; but the government has not had the funds to follow through with more such institutions and indeed even the AIMS suffers from lack of funding. How do we get out of the rut we are in?
Change comes with convergence of three factors :
Feasibility: domain of science and technology - this includes Indian sciences like Ayurveda
Viability: driven by economics and policy
Desirability: Our political and social will
Public-Private partnerships can facilitate movement along all three vectors simultaneously.

I found Mr. Trivedi quite eloquent and persuasive. So if you are in the private sector looking to make things happen - contact him. PAN-IIT has said that all sessions will at some point be on YouTube. You can search for this session (its not there as of this writing) for verification. This writeup is from my personal notes.

How Many IITs are there in India?

I had the opportunity to attend 2010 PANIIT conclave as a IIT-Kharagpur spouse this year - i.e. as an impartial observer. One of the first things I noticed was the large number of new IITs - Its hard to miss the new banner; in places I had not even heard of. On the other hand, how many had heard of Kharagpur which houses one of the oldest IITs? I was not the only one noticing this. Alumnae discussions on the topic expressed concern of maintaining quality in the face of such aggressive expansion and the notoriously slow pace of government decision-making. At the same time Alumnae from different IITs vied with each other on how bad conditions were in IIT when they went there - from yellow water in Kharagpur to deplorable food in Delhi.
I believe that the expansion is a great thing and long overdue. And the risks of quality can be well managed for the following reasons:
1- Students: The older IIT capacity is so far below the number of brilliant available minds applying that even with the expansion- only the best will be able to get in. At alumnae meets I always hear that it is having brilliant students as companions made the IIT experience what it was. So this will not change.
2- Teachers: I personally know 2 brilliant deans who now have an opportunity to head a new IIT. Without growth they would not have the opportunity. I do not believe these teachers will compromise. As a daughter of parents (mother and father) who chose the teaching profession - I believe there is a lot more than money that attracts teachers - they will give it their best. With opportunity comes fresh ideas and new hope - it will trickle down from deans to the rest of the staff.
3- Curriculum: Nehru's vision for a free India included science and technology. And the great emphasis in IIT on that has paid a huge dividend for India. But times have changed - we are now in the knowledge economy where innovation is the name of the game. Improving the social sciences, medicine and arts curricula may be easier in the new IIT's and will certainly be a boost for students inclined towards disciplines beyond technology.
All in all, Its a great step forward for India.

Fellowship Opportunity with AIF

Fellowships opportunity announcement from AIF:     http://www.aifclintonfellowship.org/
SERVE. LEARN. LEAD.

MISSION: The AIF Clinton Fellowship for Service provides a select group of young American professionals with the opportunity to serve marginalized and underprivileged communities in India by working with non-governmental organizations (NGOs) for a period of 10 months.

VISION: The AIF Clinton Fellowship Program is committed to developing the next generation of young Americans leaders. Equipped with a practical, field-based knowledge of international development, they will become life-long ambassadors for service to the marginalized & underserved in India.

Together, AIF Clinton Fellows and NGO leaders form dynamic partnerships to exchange technical skills and knowledge, as well as passion, commitment, and new ways of looking at the world, which ultimately transforms both the individual and organization.

Since 2001, 291 young Americans have worked with over 150 Indian NGOs through the AIF Clinton Fellowship for Service. Alumni have become transformative leaders and entrepreneurs in business, international development, academia, journalism and other fields, and together represent a collective force and organized network for sustaining a long-term agenda dedicated toward change in India.

APPLICATION DEADLINE: November 15th: Early; January 1st: FINAL

Please check out our blog which highlights stories from the field:
WWW.AIFCLINTONFELLOWSHIP.ORG/BLOG

Please contact: INFO@AIFCLINTONFELLOWSHIP.ORG,
POONAM.SINGH@AIF.ORG, OR CALL 408-816-1975

There is an information session: 11/3/2010, Pigott Hall, Stanford 4:30-6:30

VayuGrid Attracts Investor

VayuGrid (wind-energy) has wings! from Gerad Rego:
"I am glad to announce that VayuGrid, a company I co-founded based on a for-profit social business model that just received funding of $4.3m from a strategic investor. Also enclosing a press release of an interview with the President of Mahindra & Mahindra for your perusal. Look forward to collaborating together around the EIR program to replicate a model across industries and across the pyramid. Look forward to collaborating together with other Fellows to see how we can leverage any other work into our business."

Congratulations to Gerard Rego, fellow Digital Vision graduate, on a major milestone: For a report- Check CNBC coverage : M&M eyes majority stake in Vayugrid's Indian ops.

Engineers For Social Impact: 2010 Fellows Announced

Engineers for Social Impact (E4SI) Fellows 2010
Contact: Akash Raman, Engineers for Social Impact

+91-950-344-9871
akash@e4si.org

Bangalore, India [April 20, 2010] – The Engineers for Social Impact (E4SI) Fellowship Selection Committee is delighted to announce that after receiving and carefully reviewing close to 600 internship applications for its 2010 edition, it has made offers to 17 outstanding candidates for 9 roles at 7 partner social enterprises that focus on development by means of sustainable for-profit entrepreneurship.

E4SI 2010 Fellows come from a number of India’s prestigious engineering schools including IIT Kanpur, IIT Kharagpur, IIT Madras and BITS Pilani – all from diverse backgrounds with excellent accomplishments and potential. E4SI 2010 Fellows include the student union President of BITS Pilani, student President of the entrepreneurship club at IIT Madras and Green Globe Foundation award winner. More information about the Fellows is available on E4SI’s website – http://www.e4si.org/

E4SI fellowships promise to be highly entrepreneurial in a way that combines the best of consulting, technology, and social innovation. Fellows will gain unprecedented access to the development sector as they work with leading social entrepreneurs, attend leadership workshops and pitch their ideas to thought leaders as they join an outstanding cohort of exceptional young leaders.

Partner social enterprises for the 2010 edition of the E4SI fellowship program are leaders in microfinance, education, energy, and healthcare. Among them are: Samhita Social Ventures Pvt. Ltd., an enterprise providing social organizations with access to funds, people, knowledge, networks and customers; mDhil, a firm that provides basic healthcare information to the Indian consumer via text messaging, mobile web browsing, and an innovative web site; iDiscoveri, an experiential education organization focused on self-discovery and meaningful learning in economically emerging societies; Solar Electric Light Company (SELCO India), a company that provides reliable, affordable, and environmentally sustainable energy services to rural homes and businesses; Husk Power Systems (HPS), an innovative triple bottom-line company that provides power to over 50,000 rural Indians in a financially sustainable, environmentally friendly, and profitable manner; Sarvajal, a social enterprise focused on delivering clean drinking water at an affordable amount (25 paisa per liter) to rural villages throughout India; and IFMR, a wholly owned subsidiary of IFMR trust, a private trust with the mission to ensure that every individual and every enterprise has complete access to financial services.

About Engineers for Social Impact (E4SI)
The Engineers for Social Impact (E4SI) Fellowship is a unique program that connects top engineering talent to credible social enterprises driving market-based solutions to development in India. It serves a dual need: matching talented students with worthy social enterprises and increasing awareness of for-profit approaches to development.

Engineers for Social Impact has been described as “a group of doers and dreamers” which seeks to imbue a culture of social entrepreneurship in India’s youth. Not only does it provide hands-on training for new doers and dreamers but they also gives its fellows complete freedom to be creative in their immersion experiences.

E4SI’s advisers, among others, include Nitin Rao (Director, E4SI & MBA Candidate, MIT Sloan, Cambridge), Ayan Sarkar (Associate, McKinsey & Company), Anand Shah (CEO of Piramal Foundation), Dr. Parth J. Shah (President of the Centre for Civil Society), Neerja Raman (Author and Research Fellow at Stanford University), Priya Naik (Founder and CEO, Samhita Social Ventures) and Dharen Chadha (former Global Director of Strategic Planning at J. Walter Thompson.)

Mission Drift: The Bogeyman of Social Entrepreneurship

The initial public offer (IPO) by SKS Microfinance is a landmark event: likely to set the stage for other IPOs in this area. I find much to cheer about in this development as financial inclusion goes mainstream and scales so a dream turns to reality for many many more people who live under $4/day. Not unexpectedly, the recent hoop-la about the IPO has come from activists and NGOs who worry that this move spells a mission drift - a profit from poverty mentality versus helping the poor, that has always been the bogeyman of social entrepreneurship.

The issue is that pure philanthropy does not scale. Charity funding is critical in providing a start to change-makers driven by passion for helping the poor. However, once a business model becomes sustainable, its capital need is far greater than what can be met by traditional philanthropic sources.

But change is hard for many to swallow and hence appears the bogeyman of mission drift - all the things that are wrong with the business world. But the bottom line is that there are also many things right with the business world. Besides- just as many albeit different, things are wrong with the charity model. Of course things can always go wrong, with greed overtaking social mission as MFIs go mainstream, but that risk is far lower than the risk of stagnation and besides financial instruments exist to manage it.

With access to more capital, I actually think things will improve for the clients of MFI because there will be pressure to bring interest rates into alignment with traditional banks. In recognition of this Businessworld article says "Earlier this year, India's finance minister said non-banking financial corporations (NBFCs), including some like SKS, can be granted banking licences, signalling a greater role for MFIs. But India's central bank has pulled up MFIs for their high interest rates -- about 25-27 percent. That is about double the rate at which they borrow from banks, but still lower than moneylenders."

Actually this business of mission drift has become a particular peeve of mine because of my past 4 years of experience directly working with social entrepreneurs. The SKS IPO provides an example against which I can generalise. Budding social entrepreneurs face an uphill task as it is. They initially get ignored by traditional capital and foundation money is so scarce that the competition in the field of social entrepreneurship is unhealthy (results in inability to merge or collaborate later on). Two factors come into play: First, self doubt in the mind of the entrepreneur in entertaining a realistic revenue generation (Am I being social enough?) plan for sustainability. Second, many opt for an incorrect business model which later becomes difficult to change, especially given the negative feedback from their initial supporters. The way I see it, the issue of mission drift is an operational issue - to be managed like any other risk whereas having a built-in plan to get to sustainability and scale is a strategic choice which guides impact in the long run.

E4SI - Internship Apps Available Jan 29th

E4SI internship applications available - Jan 29th, 2010. In the last two editions, the top 5% of applicants from among India's top 15 engineering schools were accepted as Engineers for Social Impact Fellows. Our Fellows participated in challenging and highly entrepreneurial immersion experiences at leading for-profit enterprises such as iDiscoveri, D.Light, SELCO, Intellecap, Ujjivan and Vaatsalya. The assignments were diverse, across the sectors of energy, education, healthcare and financial services, and with multi-functional roles spanning research, policy, design and developing technology.

Not Money, Not Markets, Its a Mindset: Game Changing Technology

2010- start of a new decade and amidst all the hype about the decade that was (best, worst, etc.) a newsitem that caught my eye wasTata's launch of a water filter (Swach- means clean in Hindi) for rural poor (less than Rs. 1,000 or $21.50) which needs no electricity or running water. "It took over a decade of research but it is opening up a complete new market said Tata Chemicals' boss R. Mukundan".

What's a decade? Nothing - when you think about the global problem that is healthcare and the billions spent on treating poverty associated diseases that affect 5 billion people - a decade of research seems really worthwhile. Renewable Eenergy and healthcare are supposed to be the new growth areas for business, yet how many corporations are getting into the space with innovation in mind?

Tata is getting into the lower cost housing market (I hope with innovation) and has already reset expectations for fuel efficiency and renewable energy use with the Nano car. So, I expect their filter will also generate financial as well as social benefit and be good for the environment. It took about 44 scientists at Tata Research Development and Design Centre, a subsidiary of Tata Consultancy Service and has the potential to save billions in wasted spend while helping billions of people.

So why is it that technology for the next billion customer seems to be such a stretch for the world? We cite lack of capital (where's the ROI?) or markets (how can the poor pay?) and put off climate change concerns.

But maybe the new decade starting with 2010 will be a decade when profit, people and planet - all will matter in playing the game. The fact that large corporations are getting into it is significant - they have capital as well as the marketing to reach large numbers of consumers.

After reading about the filter I also read about the cheapest refrigerator ($69) - the portable, top-opening unit weighs only 7.8kg, uses high-end insulation to stay cool for hours without power and consumes half the energy used by regular refrigerators - from the Indian conglomerate Godrej & Boyce. And then there is Vihaan Networks Ltd (VNL), the Indian telecom company whose solar powered base station can be built for one-tenth the cost of a regular one, is profitable at just $2 of revenue per user per month and will go to market in India, Africa and Southeast Asia. VNL is one among 26 global firms selected by the World Economic Forum as "Technology Pioneers 2010" -- the most innovative start-ups from around the world that will have a critical impact on the future of business and society.

So, I start the decade full of hope. If we can imagine it we can do it- Innovation is a mindset that changes the game - markets will follow - even developed markets.

Microfinance 2.0: People + Technology investment

The fact that microfinance has been a successful business model for poverty alleviation is undisputed (operational quibbles notwithstanding). The reason is that Grameen bank turned conventional wisdom on its head and made the unbankable (people with no collateral) into safe banking bets. Once they proved that the model was financially sustainable - the world followed suit. Now we are even looking at IPO's for microfinance institutions like SKS and others. So what is next? If microfinance 1.0 was about betting on the innate entrepreneurship of people microfinance 2.0 will be about betting on technology (providing scale by lowering cost) for changing the world. A partnership with social entrepreneurs can pave the way because they typically look for sustainability and are technology savvy. Unfortunately, social capital is still hard to come by especially for social entrepreneurs involved in changing the rural economy through innovations in renewable energy (like solar for lighting) or education (e-content for education) or healthcare. Government institutions involved with rural development should especially take note as they can provide the scale and sustainability. The Jaipur foot is a good example of medical technology that got a boost from a government partnership. Right now when India is so visible in the climate change debate, by investing in companies bringing solar to rural - off grid areas - would strategic. Companies like SELCO, D.Light, Duron energy are good investments for microfinance or NABARD (Govt. banks). It has long been held that research is expensive and emerging economies need only be markets. This is no longer the case when technologies of the developed world do not scale to meet the needs of the emerging economies.

NRN VC Fund: Help those doing good work

A headline in my TOI (Times of India Friday Oct 23- I'm getting addicted to acronyms like all Indians) has made my day - yes its the one about Murthy (of Infosys fame) setting up a $36 million VC fund saying "entrepreneurship is the only cure for poverty and job creation". In India, family businesses still rule. If its not the M&M saga its headlines like "Prez's son leads the baba log charge" (about Pres. Patil's son winning assembly seat- politics is business) or how 5th generation Kapoor is set to be the next bollywood star (entertainment). So a move like this by one of the most respected people in India signals change. But it is the fine print that excites me. Murthy has said he will invest in the fields of basic health care, education and nutrition signalling that long term investment is also a priority. Additionally his reason for setting up the fund is: "there are people doing good work in India." He wants to support them and help them grow rather than start yet another effort himself and reinvent the wheel.
Good move Mr. Murthy - I am a fan of Good Capital.

ISB iDiya Challenge Launched

ISB iDiya Challenge is a National Social Ideas Competition being organised by the Indian School of Business, Hyderabad open to all working professionals. Closing date for submission is October 25, 2009 ( <http://www.isb.edu/idiya> )
From my perspective it is great to see a management school of high calibre like ISB get involved in social issues. Tomorrow's leaders will transform the bottom line to include social impact and institutional change is required to build this new leadership.
The Situation:
49% of the world’s underweight children; 46% of the world’s wasted children and 34% of the world’s stunted children live… in INDIA. <http://www.nytimes.com/2009/03/13/world/asia/13malnutrition.html?_r=2>
456 million people below the international poverty line ($1.25/ day)… live in INDIA. That is one and a half times the population of the USA and one-third of the world’s population below the poverty line. <http://www.worldbank.org.in/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/INDIAEXTN/0,,contentMDK:21880725~pagePK:141137~piPK:141127~theSitePK:295584,00.html>
70% of the population does not have access to basic banking and financial services… in Rural INDIA. <http://www.urbanindia.nic.in/moud/theministry/subordinateoff/tcpo/REPORTON_BANKINGSERVICES/CHAPTER-1.pdf>
41% of the population does not own any of the basic products/assets – bicycle; radio; telephone… in Rural INDIA. <http://www.urbanindia.nic.in/moud/theministry/subordinateoff/tcpo/REPORTON_BANKINGSERVICES/CHAPTER-1.pdf>

The Response:
Some individuals have taken the untrodden path and have chosen to create companies which do good and also do business.
DesiCrew - http://www.desicrew.in/. Rural BPO delivering 40% cost savings to its clients while changing lives of rural populations. 80% of its team are women.
Dial 1298 for Ambulance - http://www.1298.in/. Rolling out a nationwide network of life support ambulance service.
Inclusive Planet - http://www.inclusiveplanet.com// <http://www.inclusiveplanet.com/> . Building the world’s largest community of differently-abled persons.

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Microfinance and Education: A win-win partnership

There is a Chinese proverb that goes something like this: if you want to plan for a year, plant a rice field, if you want to plan for ten years, plant a tree and if you want to plan for the future, educate your child. Microfinance is addressing the 1-10 year scenario which is pretty great. But last year, at the Tech Awards (http://www.techawards.org/) I heard of a business model innovation - a partnership - that addresses the future. It is a combination microfinance plus education model. In this model, women who receive loans are encouraged to send their children to a partner education NGO for "free" or at a subsidised rate. The partner institutions decide how the finances are shared (the interest payments) for optimal sustainability of both organisations. This is a win-win model where the women are encouraged to make a go of the business, (education is a social benefit - unquantifiable through standard metrics), microfinace institutions have to do less policing about the use of their funds and education NGO gets students who's parents care.
Countries with severe poverty are also plagued with prejudice against women, poor health among children and a growing opportunity gap between the rich and the poor. UNESCO proclaimed September 8 as International Literacy Day in 1965 to highlight the role of education in addressing these issues but while its importance is universally acknowledged, the deployment of quality education in developing economies has proved unsuccessful. This is also true for India where, in spite of a great rise in economic stature of the nation in recent years, the literacy divide is as great as it was prior to the IT boom. The success stories of opportunity inclusion come from the microfinance sector. So wouldn't it be nice if we could leverage the success of the microfinance model to do more? Like maybe provide quality education to those left behind bythe current system?