Episode 7: For-Profit Approaches (Madagascar)- Beyond Good Intentions Series

BeyondGoodIntentions

11 May 200905:26

Summary

TLDRThis video script explores the effectiveness of traditional charity models in Madagascar, one of the world's poorest countries. It delves into for-profit approaches as an alternative, highlighting the 'bottom of the pyramid' marketing strategy. The script follows the journey of a company, Bush crew, which sells low-cost, sustainable solutions like wells, solar panels, and water filters to impoverished communities. By transforming aid recipients into customers, the company aims for a double bottom line, focusing on both financial profit and social impact.

Takeaways

🌍 Madagascar is one of the poorest countries in the world, despite its natural beauty and people.
🤔 The charity model of aid might be ineffective in Madagascar, prompting the exploration of for-profit approaches.
💧 Access to clean water is a significant issue in Madagascar, with communities relying on dirty rivers for multiple uses.
🚰 International aid organizations often donate wells, but this approach has sustainability and accountability issues.
🔄 The community's dependency on donors can lead to long waiting times for essential projects like water wells.
📉 Free donations can diminish a sense of value and ownership among recipients, leading to maintenance and sustainability problems.
💡 An alternative solution is proposed where people pay for wells, fostering a sense of connection and responsibility.
🌐 'Bottom of the Pyramid' marketing is a new trend where products are sold at low cost to impoverished communities, promoting economic participation.
🛠️ Bush proof, a company practicing this approach, has innovated cost-effective drilling techniques for wells, making them more accessible.
🔆 They also offer low-cost, eco-friendly products like solar panels for radios and water filters, improving quality of life and reducing environmental impact.
💹 Bush proof operates on a 'double bottom line', focusing on both financial profit and social impact, making their business model sustainable and beneficial.

Q & A

Why is Madagascar considered one of the poorest countries in the world?
-Madagascar continuously ranks as one of the poorest countries in the world due to various socio-economic challenges despite its beautiful scenery and people.
What is the main issue that people in Madagascar face regarding water access?
-Access to clean water is a major issue for most people in Madagascar, with many relying on dirty rivers for drinking water, washing clothes, and bathing.
What are the problems associated with international aid organizations donating wells in Madagascar?
-The problems include dependency on donor funding, lack of accountability, sustainability issues, and the absence of value and ownership among local communities when wells are merely donated.
What solution is being proposed to address the water issue in Madagascar?
-One proposed solution is marketing to the bottom of the pyramid, where products like wells are sold at low cost to the poor, ensuring value, accountability, and sustainability.
How does the bottom of the pyramid marketing approach work?
-The approach involves selling low-cost products to impoverished communities, creating an economic system that values the product, and ensuring sustainability through market mechanisms.
What innovations has Bush Proof introduced in Madagascar?
-Bush Proof has developed low-cost drilling techniques for wells, a small solar panel for powering radios, and an inexpensive yet effective water filter, among other products.
How has Bush Proof's model impacted the construction of wells in Madagascar?
-Bush Proof's innovative rapid well construction techniques and for-profit model have doubled the national output of wells constructed each year in Madagascar.
What is the significance of Bush Proof's double bottom line approach?
-Bush Proof measures success not only in financial profit but also in social impact, ensuring their products are durable, eco-friendly, and affordable for the developing world.
What are some of the products developed by Bush Proof to assist impoverished communities?
-Bush Proof has developed low-cost wells, small solar panels for radios, and effective water filters, among other products, to assist impoverished communities.
How has Bush Proof's approach transformed the communities in Madagascar?
-Bush Proof's approach has transformed people from aid recipients to legitimate customers, fostering a sense of value, ownership, and self-sufficiency within the communities.

Outlines

00:00

🌍 Investigating For-Profit Approaches in Madagascar

The script opens by highlighting Madagascar's stunning scenery and the paradox of it being one of the world's poorest countries. The narrator questions the effectiveness of traditional charity models and sets out on a journey to explore for-profit methods of aid. The focus is on how business and aid can combine to create sustainable solutions. A significant problem identified is the lack of access to clean water, often addressed by international aid organizations through well donations. However, these projects face challenges like dependency on donor whims, lack of accountability, and sustainability issues.

05:02

🚰 The Challenges of Donated Wells and Alternative Solutions

The narrative continues to discuss the problems with donated wells, such as the absence of accountability and sustainability. Donated wells often fail, and communities lack the resources to repair them. The narrator introduces an alternative approach where communities contribute financially, fostering a sense of value and ownership. The idea of 'bottom of the pyramid' marketing is introduced, where products are sold at low costs to impoverished communities instead of being given away. This model is championed by companies like Bush Proof, which has developed cost-effective drilling techniques and promotes community involvement and ownership of wells.

Mindmap

Keywords

💡Madagascar

Madagascar is a large island nation off the southeastern coast of Africa. It is known for its unique biodiversity and cultural heritage. In the video's context, Madagascar is highlighted as one of the poorest countries in the world, which serves as the backdrop for the discussion on aid and development strategies. The script mentions the country's beautiful scenery and people but also its continuous struggle with poverty.

💡Charity Model

The charity model refers to the traditional approach where non-governmental organizations (NGOs) or individuals provide aid or assistance to those in need without expecting anything in return. The video script raises questions about the effectiveness of this model in Madagascar, suggesting that it may not be sustainable or accountable in the long term.

💡For-Profit Approaches

For-profit approaches are business models that aim to generate income while also addressing social or environmental issues. The script explores how combining business principles with aid can lead to more sustainable and accountable solutions. It contrasts this with the charity model and suggests that it might be a more effective way to help people in poverty.

💡Water Access

Water access is a critical issue for many communities around the world, including Madagascar. The script discusses the challenges of obtaining clean water and how traditional aid methods, such as donating wells, may not be the best solution due to issues of accountability and sustainability.

💡Accountability

Accountability in the context of the video refers to the responsibility and obligation of individuals or organizations to report on the use of resources and the outcomes of their actions. The script points out that when wells are simply donated, there is often a lack of accountability, which can lead to issues with maintenance and long-term use.

💡Sustainability

Sustainability, as used in the script, refers to the ability of a project or system to continue over the long term without depleting resources or causing harm. The video questions the sustainability of traditional aid methods, such as donating wells, and suggests that for-profit approaches may offer a more sustainable solution.

💡Bottom of the Pyramid (BoP)

Bottom of the Pyramid (BoP) marketing is a concept where businesses target the world's poorest populations, offering products or services that are affordable and meet their needs. The script introduces this concept as a new trend in aid, where instead of giving things away, products are sold at low cost, promoting value and economic sustainability.

💡Bush Proof

Bush Proof is a company mentioned in the script that has innovated ways to market wells to impoverished communities in Madagascar. They use a developed drilling technique to drill wells at a fraction of the cost, making clean water more accessible and affordable. The company also offers other low-cost, eco-friendly products, embodying the for-profit approach to aid.

💡Double Bottom Line

A double bottom line refers to a business approach where success is measured not only in financial profit but also in social impact. Bush Proof, as mentioned in the script, maintains a double bottom line, meaning they aim to be profitable while also making a positive social impact through their products and services.

💡Appropriate Technology

Appropriate technology is technology that is suitable for the specific needs and conditions of a particular community or region. The script describes Bush Proof's products as examples of appropriate technology solutions for the developing world, being durable, eco-friendly, and affordable.

💡Community Ownership

Community ownership refers to the concept where a community collectively owns and is responsible for a resource or project. The script suggests that traditional charity models often result in a lack of community ownership, leading to issues with maintenance and sustainability. In contrast, for-profit approaches can encourage a sense of ownership and responsibility.

Highlights

Madagascar is one of the poorest countries despite its beautiful scenery and people.

Traditional charity models in Madagascar have proven to be ineffective.

Access to water is a major issue for most people in Madagascar.

International aid organizations often donate wells, but there are issues with accountability and sustainability.

Donated wells often break down, and communities struggle to maintain them without proper support.

There is a lack of ownership and value when resources are merely donated.

For-profit approaches to aid, like marketing to the bottom of the pyramid, offer a potential solution.

Bush Proof, a company in Madagascar, markets wells and other products to impoverished communities.

Bush Proof's innovative drilling techniques significantly reduce the cost of well construction.

Instead of community ownership, Bush Proof works with family groups to ensure maintenance and ownership.

Bush Proof's for-profit model has doubled the national output of wells constructed each year in Madagascar.

Bush Proof also innovates other low-cost products, like small solar panels and effective water filters.

Their products, like solar panels, save money and are environmentally friendly.

Bush Proof maintains a double bottom line, measuring success by both financial profit and social impact.

Bottom of the pyramid marketing transforms aid recipients into legitimate customers, fostering a sense of ownership.

The community members in Madagascar are happier providing for their families rather than relying on charity.

Bush Proof's approach demonstrates the potential of for-profit models to provide sustainable solutions in developing countries.