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Sustainable ManagementMetropolia, Business Ethics IP week
5 Poverty & Development
Hans Rosling
• For interesting data on poverty and development
• http://www.gapminder.org• Hans Rosling TED presentations
Assignment 4
• Visit Hans Rosling Gapminder site www.gapminder.org and load the gapminderworld software.
• Compare Finland, USA, China and Kenya on• CO2 emissions; which country emits most CO2 in total,
and per capita?• Tax Revenues (% of GDP)• Battle deaths per 100.000 people• Internet users per 100 people• Water withdrawal (cu meters per person)• Improved sanitation, overall access (%)
• Explain the differences you find.
Poverty & Development Initiatives
45 50 55 60 65 70 75 8040 85 90 95 00 05
1942Oxfam
Founded
1945International Bank for Reconstruction and
Development Founded
1960International Development
Organization created
1965United Nations Development
Program Founded
1985Live Aids concert
performed
1990UN Human
Development Index launched
1997UN Human
Poverty Index launched
2000UN Millenium
Development Goals launched
2002Bottom of the
Pyramid concept introduced
2008Make Poverty History and
Live 8
1987World Commission on Environment and
Development publishes Our Common Future (Gro Harlem Bruntlant Report)
Brundtland Report (1987)
• Major Proposals1. Reviving growth
2. Changing the quality of growth
3. Meeting essential needs for jobs, food, energy, water and sanitation
4. Ensuring a sustainable level of population
5. Conserving and enhancing the resource base
6. Reorienting technology and managing risks
7. Merging environment and economics in decision making
Agenda 21 (Rio 1992)
• Outcomes of Rio1. Convention on Biological Diversity
2. Framework Convention on Climate Change
3. Principles of Forest Management
4. Agenda 21
5. The Rio Declaration on Environment and Development
Millennium Goals (NY 2000)
• 1. Eradicate extreme poverty and hunger• 2. Achieve universal primary education• 3. Promote gender equality and empower woman• 4. Reduce child mortality• 5. Improve maternal health• 6. Combat HIV/AIDS, malaria and other diseases• 7. Ensure environmental sustainability• 8. Develop a global partnership for development
UN and Business
• Business at the heart of development• State failure: human rights, environment,
corruption, disease, poverty, etc., etc. • Globalization: companies confronting these issues• Enlightened self-interest to care:
societal expectations risk management business opportunities
• Sustainable societies and markets for all
Convergence
United Nations Business
Values
Prosperity
Peace
Development
Bottom of the Pyramid
Bottom of the Pyramid
• Concept of C.K. Prahalad• 4 billion people at bottom of economic
pyramid, with income less then $ 1.500 PPP• Can be seen as a latent market of goods and
services• Aggregated there is a huge potential
Bottom of the Pyramid
• Removal of poverty penalty (=high prices due to, local monopolies, inadequate access, poor distribution, strong traditional intermediaries)
• Find access to BOP market (urban easier than rural areas)
• Create capacity to consume (e.g. single serve packaging)
Bottom of the Pyramid
• Three A’s• AFFORDABILITY (single serve package)• ACCESS (high intensity of distribution)• AVAILABILITY (consumption when capacity is
there)
BOP market requirements
• Innovative• High price performance• Conserving resources• Focus on functionality• Deskilled work / operation• Education of customers• High performance / endurance
Critique on BoP
• By co-author Stuart Hart• Too many same products at lower prices, no
new approach• environmental unsustainable products and
services “dumped” on BoP market• Poor are not just consumers, should be
considered as partners in mutual learning
From Bottom to Base