Where do the interests of environmental protection and the base of the economic pyramid coincide–and where do they clash?
2008 has brought with it a significant change for NextBillion.net staff, and visitors will notice a difference in some of the ideas we explore in our posts. We will increasingly be exploring the “Green-BoP” nexus.
To start off the new discussion, here is a two-part post on how New Ventures and NextBillion.net are navigating this space, and how we address the intersection between environment and poverty.
A Nano-Sized Car Reveals Macro-Level Rifts
Here is how the interests of the BoP and the environment might collide. The launch of the Tata Nano, the ridiculously low-priced car that could open a floodgate of new drivers in India and elsewhere, is undoubtedly one of the milestone innovations marking the early years of the 21st century. This is not just because of the unprecedented feat of technological and design innovation it represents but because of the huge rift it exposes in the public debate over the linkages between two crucial concepts, poverty and environment.
Businesses Bridging the Divide
By contrast, here is how the interests of the BoP and the environment coincide well. Far away from the Nano controversy in the rural Yunnan province, the Yunnan Zhenghong Environmental Protection Company is making affordable, high-efficiency biomass ovens that improve human health and reduce stress on natural resources.
Derek Newberry, Research AnalystDerek is staff writer for NextBillion.net and a Research Assistant with the New Ventures team where he studies the impact of small- and medium- sized-enterprises (SMEs) on environmental and social conditions in emerging economies.
4 Comments
I agree whole-heartedly. But
I agree whole-heartedly. But while the ideas and the philosophy behind BOP and environmental sustainability are noble, often implementation is the key. A good test will be to study how carbon (credit) project developers implement these ideas in their projects and whether the market will reward (and differentiate) higher quality projects that are inclusive, community based and sustainable from those that are just trying to make a quick buck.
nice response, derek. BoP
nice response, derek. BoP is beyond selling to the poor. its empowerment, its inclusiveness, and economic justice. let's keep the conversation positive.
bop is a scam to sell
bop is a scam to sell corporate junk to the poor, start putting your resources towards protecting the environment and this will more directly lift people out of poverty.
Hi Anonymous, I’m not
Hi Anonymous,
I’m not sure what you mean by “start putting your resources towards protecting the environment and this will more directly lift people out of poverty.” I’m not clear on how this would work, but the point of the posts are that you can do both - we can put resources toward supporting business models and innovations that alleviate poverty and protect the Earth such as low-cost access to renewable energy or organic agriculture techniques.
As to the first part of your comment, true - not every time large multi-nationals sell to the poor is it a positive and constructive act. But the BoP approach isn’t just about supporting every incursion by large companies into low-income markets. It is above all about treating people at the base of the economic pyramid with dignity by including them in markets they may have little access to both as consumers AND producers. The BoP approach is about making sure that these people have the same access to productivity- and quality-of-life-boosting technology as you or I. It’s about ensuring that BoP entrepreneurs have access to the capital and international markets they need to grow and thrive. To learn more about why this work is so important, read through some of the ideas and innovations being discussed on NextBillion (http://www.nextbillion.net).
And thanks for commenting!
-Derek