I’ve been in India two weeks now, talking social enterprise with some remarkably rare changemakers (social enterprise is an explosive field being explored here on campus by emerging groups like the GW Social Enterprise Forum). Last Monday I sat in a cramped concrete office deep in Chennai’s industrial park, drinking tea with Mr. Mukundan – a wrinkled but wildly energetic old man – as he discussed his low-cost alternative energy stove that runs off 100% plant oil… something that will not only positively impact the pocketbooks of the world’s rural poor, but help tackle one of the largest, albeit strangest, causes of global greenhouse gas emissions: kerosene stoves.

Earlier, I paid a visit to Mr. Vivekanandan in rural Coimbatore: 67 years old, 10th grade level of education, and a passion for his work that is rare for most. He’s invented a mechanical food grinder for rural communities that traditionally grind their wheat and spices by hand (or with expensive, inefficient machines). With a brilliant business model under his belt – to sell the machines on credit to rural distributors, who in turn sell it for cash to a village entrepreneur who runs and maintains it for the entire community – he’s poised to transform a critical but strenuous facet of life for low-income households.

I hopped in a cab today and drove a couple hours into the rural outskirts of Chennai. At 2pm, it was the peak of India’s stifling and wet midday sun. I sat in a small, sterile room of a neonatal clinic, sweating and scribbling notes as Dr. Sathya Jeganathan – a soft-spoken, elderly woman draped in a maroon sari – explained her efforts to save thousands of newborns with her low-cost infant warmer. With the medical innovation up and running (one that can be manufactured and maintained by local carpenters and electricians rather than expensive and unattainable biomedical engineers), she’s on a brilliant start. I walked through the facility, watching nurses attend to frail, premature newborns alive only by the ingenuity of this woman.

Of course, changemaking means facing down the ancien régime. Dr. Jeganathan explained how the World Bank is pouring millions into the central government’s health coffers, permitting it to purchase expensive, un-maintainable medical equipment from well-connected domestic and international corporations. If the government can freely cash in by the millions from the World Bank, where’s the incentive to be cost-effective, prudent and accountable to Indian taxpayers? Where’s the incentive to search for the grassroots innovations within its own country? Where’s the incentive to pay attention to Dr. Jeganathan’s invention and purchase it instead for the hundreds of millions of Indians living in rural villages, and bring it to scale? Here, it’s the entrenched interests of the World Bank against a dilapidated but brilliant neonatal clinic.

My ride back to Chennai was definitely marked by a deep, burning enmity for certain development institutions. In spite of the Bank, though, and in spite of the still rivers of open sewage and roadside shantytowns, I’m still hit by a tremendous sense of what’s possible. Coincidently, I stared out the window while listening to a podcast lecture by Geoff Mulgan who had this to say: “If the great exploratory challenges of the past generation were ones like putting a man on the moon, perhaps those of this generation are ones like eliminating child malnutrition, or stopping human trafficking.” No disrespect to astronauts, but I’m absolutely convinced that these social innovators are the new frontier.

Grant is a senior majoring in International Affairs concentrating in International Development and International Economics and minoring in Political Science. He’s studied in both Argentina and Kenya and works passionately in the field of social entrepreneurship.

“Wealth is praiseworthy in the highest degree, if it is acquired by an individual’s own efforts and the grace of God, in commerce, agriculture, art and industry, and if it be expended for philanthropic purposes. Above all, if a judicious and resourceful individual should initiate measures which would universally enrich the masses of the people, there could be no undertaking greater than this, and it would rank in the sight of God as the supreme achievement, for such a benefactor would supply the needs and insure the comfort and well-being of a great multitude.”

~Abdu’l-Bahá, The Secret of Divine Civilization, The Baha’i Faith

In light of a variety of factors–the undeniable truth of the above quotation, a new book I’m reading called The Blue Sweater, a global financial crisis whose most dire implications seem to somehow trickle down to our impoverished brothers and sisters around the world, and my own musings and observations here in Beijing–I have decided on what I need to dedicate myself towards: rewiring the global economy for inclusion and true prosperity. The means? For-profit models of investment. The end? The complete eradication of poverty world wide. I’m sick and tired of NGO’s being run by a few underpaid visionaries to benefit only a few of the billions who yearn for real economic equity. And as for governments: human beings want dignity, not hand-outs in the form of “aid”. I think it’s time the world made a real effort to make this ‘end’ a reality. This realization I’ve had has been a long time coming but trust me folks, it’s here to stay.

I want to create the next bubble. We just saw several pop (real estate, finance, the MBA degree etc.) but I don’t think a bubble is necessarily a bad thing if created in the right sectors. One example that quickly comes to mind is clean tech./alternative energy. Would it be so bad if we inflated this underdeveloped but arguably critical area of industry? Would it be so wrong to provide financial incentives, hundreds of billions of dollars in investment, and tens of thousands of jobs for the sake of reconstructing the foundation of the global economy? Such a ‘bubble’ would inflate supply of capital/labor and demand for the application of green technology while pushing down costs of production and attracting intelligent competition to the market. A regulated bubble could quickly gains its own momentum. I say yes, and I think we can do the same for poverty eradication.

It should start with the simple premise that all human beings are intricately connected and that not only do we harm ourselves when large portions of the population are stuck in poverty but we will exponential increase our potential as a world to learn, provide, create, thrive, and endure when all are extended the gift of opportunity. In short, I know that we (humanity) are capable of so much more but we aren’t giving ourselves the chance.

How should this be done: retool for-profit models of investment (VC/PE) for large scale involvement in the developing world (i.e. invest in sustainable solutions to chronic problems–education, energy, housing, access to clean water, basic health care, universal Internet connectivity and access to technology). At this point in time there is only one power in the world seeking out this opportunity: the government of the People’s Republic of China. In the West we choose to antagonize them for this but I maintain that it only lays bare our own insecurity at their effectiveness and our lack thereof (this topic deserves its own post…). There are several existing groups like Acumen Fund and Relief Development Consulting that have just begun to scratch the surface but I know it will take more than isolated and uncoordinated efforts by a few brilliant individuals. It will take government. If there is one thing that I’ve learned while here in China it’s the immense potential of government–to build, to improve, to adapt, to protect. To transform the lives of 1.4 billion people.

This post doesn’t have a happy ending but I’m thinking that’s a good thing. In the words of John Legend: “This ain’t a movie, no. No fairytale conclusion y’all–it gets more confusing everyday…” More thinking on this topic to come.

Bobak is a junior in the Elliott School of International Affairs, majoring in International Affairs with concentrations in International Economics and East Asia. In addition to being passionate about world unity and the Baha’i Faith, Bobak’s Persian heritage, American upbringing, and obsession with the People’s Republic of China lend him a unique perspective on what is unfolding around us. Duck and dumplings are currently on the menu as Bobak is in the midst of spending a full year in Beijing, China studying Mandarin and working for a Chinese environmental NGO.

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“The endowments which distinguish the human race from all other forms of life are summed up in what is known as the human spirit; the mind is its essential quality. These endowments have enabled humanity to build civilizations and to prosper materially. But such accomplishments alone have never satisfied the human spirit, whose mysterious nature inclines it towards transcendence…”

–The Promise of World Peace, Universal House of Justice, The Baha’i Faith

Walking the streets of Beijing, China. Photo: Bobak Tavangar

I’ve been thinking a lot about human potential. Who? How much? How do we know? Where does it come from? How can it be unlocked?

Here in Beijing I see so much potential inherent not just in the individual but in Chinese society as a whole. History has shown us how capable the Chinese are with significant contributions to science, governance, commerce, and social theory and it is proving no different now. This country is rediscovering what it means to harness the world around them for the sake of progress.

But is this all that matters? Is it sustainable? Does it necessarily lead to a society of rational and socially conscious citizens or could it possible widen the abyss between wealthy and poor while leaving both no better prepared to make moral decisions for themselves, their children, their countrymen, and ultimately their fellow world citizens?

I ran into a good friend last night in the Sanlitun area of Beijing while deciding which crepe I wanted to order. We got to talking and to my great joy the conversation quickly turned substantive. We found a couple of chairs and vented. Both she and I have been taking careful note of what we see around us here in the hub of China: the alarming social trends, the blistering pace of development, the stark difference between newly wealthy Chinese millionaires and the mud-soaked migrant laborers who build their movie theaters, apartments, and mega malls. Our conversation spanned energy, religion, governance, and numerous other topics relevant to this beautiful country’s emergence. Ultimately we decided this: material development alone will not lead to a happy China. I’m guessing we’re not alone.

I like to reference the sad case of Japan to underscore the importance of our conclusion. Japan is, without a doubt, one of the remarkable economic miracles in human history. In just short of a century the country achieved near universal poverty eradication and material success but has been left a mere shell of its former glory–mired in incipient political, economic, and social turmoil. Left to its own devices–in this case blind greed and an ego-driven desire to develop–Japan was able to recreate its reality as a nation but without the comprehensive sense of prosperity that we have been taught should come with increased access to material goods. Today it is the high suicide rate that most often comes up in a conversation about Japan, not the brilliance of their engineers or greatness of their achievements. I fear the same fate awaits China if they don’t learn from their neighbor.

The quote above was taken from a document prepared by the highest elected body of the Baha’i Faith, The Universal House of Justice. It contains stunningly poignant analysis of the ills afflicting the globe and the remedy needed not just to allay the pain it is currently feeling but also to usher in a new era of well being. There is indeed something very mystical about the human soul (I would argue the core of our being) and its need for more than raw material consumption; an activity also pursued incessantly by members of the animal kingdom. I think that humanity is quickly waking up to the reality that our true nature as human souls is not just characterized by the need to consume, but more importantly by the need to give. To give of our knowledge, our time, our love, our inspiration, our very being–it’s something profoundly different from the way we have been wired to think about our reality on this earthly plane but is, in my opinion, a necessary change in mindset if we envision an advanced global community united behind genuine feelings of equality and brotherhood.

This brings me back to China. I am of the opinion that the “post-unipolar” world will not be another jostling between a few great powers that leaves most of the population disenfranchised. It will be a system of great powers who will be forced to choose between collaboration to correct the chronic mismanagement of the world or crumble where they stand. China will be one of those great powers and in order to ensure that it chooses the former and not the latter, the Chinese people themselves will need to be guided by the same global consciousness I mentioned above. I make this specific to China not just because I am based in Beijing, but because I see limitless potential in the Chinese people themselves to realize the importance of this shift in mentality. As a people they have never shied away from a seemingly insurmountable challenge and I have no reason to view this time as being any different.

Bobak is a junior in the Elliott School of International Affairs, majoring in International Affairs with concentrations in International Economics and East Asia. In addition to being passionate about world unity and the Baha’i Faith, Bobak’s Persian heritage, American upbringing, and obsession with the People’s Republic of China lend him a unique perspective on what is unfolding around us. Duck and dumplings are currently on the menu as Bobak is in the midst of spending a full year in Beijing, China studying Mandarin and working for a Chinese environmental NGO.

I’m a rising Elliott School senior who has spent the majority of his time (and money) on international affairs-y things like war, peace, war, and some anthropology. For those of us interested in development, we study things like aid policy and political economy, ready for World Bank recruitment come May. So naturally I was surprised a few months back when I found myself in cramped Nairobi offices gathering data on vitamin A, iron and iodine intake figures, and in Africa’s largest slum mapping maize distribution channels and pricing patterns.

I didn’t come to Kenya planning to research nutrition and business strategies in slums. But after a series of events and small epiphanies, I realized that to make the biggest impact on our world maybe the World Bank, UN and USAID aren’t the only post-graduation paths out there. So here’s my quick story of going from a World Bank-bound Elliott kid to an entrepreneurship-and-public-health-strategy enthusiast.

I came across figures last February that caught my attention. For example, Kenya is losing 2-3% of its GDP per year because most people don’t consume food like fortified flour – flour with micronutrients like iron and folic acid. That’s the equivalent of the financial crisis’s impact on Europe. When Kenyans lack nutrients, their IQs suffer, they drop out of school, they can’t work as productively, they’re more susceptible to other illnesses like HIV, and women take the brunt of it. This lesser-discussed health catastrophe called micronutrient deficiency is outdoing AIG.

I also found out a few other things that our neighborhood development ‘experts’ don’t talk about very often: in 1990, the UN pledged to eliminate most micronutrient deficiencies by 1995. It is 2009, and 1 of every 3 people still suffers from deficiencies. Basically, the plague of micronutrient deficiencies is as rampant as ever, with little thanks to the UN. Agencies like UNICEF and the World Food Programme often give out aid-financed nutritional supplements (handouts) to a few at-risk populations such as refugees and then call it a day.

I talked to a woman named Lucy at the Micronutrient Initiative in Nairobi, who summed it up like this: “UNICEF doesn’t produce flour, business does.” So if international aid agencies aren’t up to the task, and if the Kenyan government is failing miserably (which it is), then maybe the private sector could help solve this development disaster – and make some money at the same time. After some number crunching, I estimated aggregate food market expenditures in Kibera – Africa’s largest slum – to be around US $18.75 million per month just for the poorest half of its residents. That seemed like a pretty big number to garner business attention.

I later discovered Insta Products, a Kenyan company that produces fortified flour. With a recent investment by the Acumen Fund – a social venture capital group – they’re poised to tackle the issue in a whole new way: by selling micronutrient-rich flour sachets for USD 25 cents that feed a family of four through informal distribution networks. This entrepreneurial innovation will dramatically enhance Kenyan’s nutritional status while simultaneously turning a profit – a far cry from UNICEF handouts.

Most of us – probably including myself – won’t end up innovating business strategies to combat micronutrient deficiencies in severely low-income markets. We don’t learn about vitamin A at the Elliott School, and we certainly don’t concern ourselves with business. But I think there’s a good lesson learned for soon-to-be-graduates-and-job-hunters: in a complex world where the UN and World Bank don’t have the answers to everything (or much), we shouldn’t forget to take a look at what’s out there beyond the Foggy Bottom big-names. So to all other rising seniors, keep your eyes open, and maybe we’ll catch each other designing flour sachets in Africa.

Grant is a senior majoring in International Affairs concentrating in International Development and International Economics and minoring in Political Science. He’s studied in both Argentina and Kenya and works passionately in the field of social entrepreneurship.

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It rains almost everyday in the early afternoon in La Palma. While walking I notice buckets collecting the water to be used for later. My first day with my host family, they explained that water was a valuable resource and was to be used sparingly. Basically, I understood from my basic level of Spanish that I should simply live by the old saying, “if it’s yellow let it mellow, if it’s brown flush it down.” I have gotten more and more used to taking 60 second showers and brushing my teeth with as little amount of water as necessary.

For some reason, I assumed all of this effort to conserve water was the whole “Going Green!” fad. However, a few days ago while riding a chiva (a bus without a schedule), I noticed all of the people around me throwing their trash out the window as if the ground was their own personal trash can. I kept it cool until I reached my house and could ask my host family about littering. They explained to me that there was indeed a law against it, however it was not enforced whatsoever.

I learned that my family and others living in La Palma do not conserve to save the environment, but instead to save money. While it makes complete sense, I was a bit dissapointed.

Yesterday I introduced the three R’s to my classes: Reduce, Reuse, and Recycle. They looked confused even when I switched to Spanish. They simply could not fathom holding onto their trash for more than a minute. I admit, I may have gotten a bit carried away in class while talking about global warming. I preached that it was the job of every single person to take care of this world. They looked very lost so I switched to a song to get the message across. It was a bit more successful than my preaching. “Clean up, Clean up, everybody everywhere. Clean up, clean up, everybody do your share.”

The lyrics were translated and hopefully the message as well. Throughout the week we will continue the environment lesson plan, making posters for the school and a concert for the parents presenting a few environmental songs. While some might argue that I should be lecturing in my own country, I see it completely fit to teach this lesson plan in my community. My classes at GW teach that it is just as important – if not more important – to educate the international developing communities about global problems. It is, of course, a joint effort.

And so at the end of the week when I take my students to do a trash clean up around the city, I hope they understand that it is up to them to convey the message to their peers and I’m crossing my fingers that the next time they have trash, they think twice before tossing it out the window.

Emily is a sophomore in the Elliott School with a major in International Affairs and a concentration in International Development. She is currently abroad teaching English with Learning Enterprises in La Palma, Panama.

After studying Arabic for the last academic year and getting a taste of financial management through a course at the Business School, I decided in the spring that it would be good to get some experience in finance in an Arab country. With a background in political science, Japanese studies and anthropology, I figured it would be hard to start managing a Gulf-based investment fund right away. Instead, I decided to look for an opportunity in microfinance.

My interest in international development and base-of-pyramid business models made me curious about this much-praised approach to help ‘the poor’. Especially after setting up a team of Students in Free Enterprise at GW, I was curious to see how other organizations stimulate entrepreneurship. All the while, it would give me an opportunity to test my newly acquired finance and language skills in a new environment.

So I went online, looked for microfinance organizations anywhere in the Arab world (strategically omitting Afghanistan) and send them e-mails offering my services as an intern. Of the scores of messages sent, just a few resulted in a reply. But eventually, I only needed one, so when Al Majmoua in Lebanon asked me to do an Activity-Based cost analysis to look for ways to improve their profitability, my plans for the summer were sealed.

I had already met several people from Lebanon at GW, so I had heard all kinds of stories about it. But when I saw Beirut by night through the window of the airplane, I had no idea what it would be like to live there for 2.5 months. After having been here for about six weeks, I have had all kinds of pleasant and unpleasant surprises.

As I was told, Lebanon is indeed a beautiful country. However, most cities aren’t beautiful at all, and in general the view of the magnificent mountains and Mediterranean sea is spoiled by ugly apartment buildings and excessive billboards (attracting most attention are the large lingerie advertisements with a warning in the top-corner saying “Keep your eyes on the road”). Using Arabic in real life is much harder than I thought it would be, but I finally reached the point that taxi drivers approvingly concede “Ah, btehki ‘arabi” after I’ve explained them where I want to go in their own language.

And then there’s the development part. In a way, Lebanon is always in development. Frequent wars have ensured that buildings are always in need of repair or total reconstruction, and a vast diaspora of emigrated Lebanese spend their dollars, euros and pesos when they come back during summer, generating a large inflow of hard currency. This results in ten-dollar beers in the most popular bars, while many Lebanese can’t afford to spend that amount daily on food.

Working for an NGO that is offering financial services to the poor gives an interesting viewpoint of these different social strata. First of all, it is interesting to see how policy differs from practice when comparing the procedures designed at the head office and the daily routine of loan analysts in the field. When I’m thinking about this discrepancy between management and staff in one organization operating in a small country like Lebanon, I can only guess how hard and inefficient it must be to design a development policy for a country across the ocean from an office at the World Bank or IMF in Washington, D.C.

Another eye-opener was that I soon understood the reasoning behind the reckless mortgage providers that led to the financial crisis. Even if you run a considerable risk, the profit on large loans is so high that it is very tempting to disregard safe lending practices. Which brings me to another dilemma: should a development organization go for the profit, or for the impact? Of course, the organization has to be financially sustainable. Right now, Al Majmoua doesn’t need external funding to maintain daily operations, but it does if it wants to expand. In addition, it might be able to lower interest rates if it generated more profits.

Today I was having a discussion about this with my manager. She insisted that Al Majmoua should serve the lowest-income groups, meaning that it would issue mainly small loans (between $500 and $2000). However, I was proposing to increase both principal and maturity to generate more income and allow for lower interest rates. Eventually, it will be a balancing act to keep serving Al Majmoua’s target group while generating enough profits for expansion. I still have one more month in Beirut to find a way to do this.

Bram was born and raised in the picturesque Dutch town of Beerze before going to university in Leiden. Now a resident of Washington, D.C., Bram is an M.A. International Trade and Investment Policy student, focusing on International Business. He is also the chairman of Students in Free Enterprise GWU.

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