Part 7 (1/2)

Note: Percentage of Respondents Asked to Pay a Bribe to Obtain Service During Past 12 Months.

Toward a Poverty Strategy In short, viewing the poor as charity cases that require handouts hasn't worked, especially because many handouts have often lined dictators' pockets instead of feeding hungry mouths. Poverty alleviation strategies should attempt to minimize the possibility of corruption, which in many situations means avoiding direct lending or aid to corrupt governments. Although liberalizing trade should be the primary strategy (as it has been in China and India), one must recognize that many tactics are necessary. Governments alone cannot eradicate poverty. The solution is not just writing a check-direct antipoverty efforts such as microfinance lending and other NGO initiatives are becoming far more important. Echoing some of the themes and ideas mentioned earlier, to successfully combat poverty will require cultivating capitalism at a gra.s.sroots level, engaging both private and public sector players, and reforming some multilateral inst.i.tutions all of which, in combination, should work holistically toward promoting the capitalist peace.

Bottom of the Pyramid P.C. Prahalad's seminal Bottom of the Pyramid (BOP) concept argues that there is room for business development at the BOP-that is, among the poorest of the poor. This theory flies in the face of conventional wisdom, which is characterized by the ”dominant a.s.sumption that the poor have no purchasing power and therefore do not represent a viable market.”55 The private sector, specifically multinational corporations and lending inst.i.tutions, have an enormous opportunity to play a huge role in alleviating poverty while at the same time making a profit, expanding brand recognition, and opening new market opportunities. And best yet, BOP strategies cut out the government middleman, avoiding needless bureaucracy and room for potential corruption. The private sector, specifically multinational corporations and lending inst.i.tutions, have an enormous opportunity to play a huge role in alleviating poverty while at the same time making a profit, expanding brand recognition, and opening new market opportunities. And best yet, BOP strategies cut out the government middleman, avoiding needless bureaucracy and room for potential corruption.

Simply as a result of the enormous numbers of impoverished, the poor represent ”a significant latent purchasing power that must be unlocked.”56 If even half of the current poor were incorporated in the global market, they could buy enormous quant.i.ties of goods and services in aggregate even if individual purchases are small. Moreover, because poverty is relatively concentrated, it is not difficult to reach vast swaths of poor at once. Consider that by 2015 there will be more than 225 cities in Africa, 903 in Asia, and 225 in Latin America. More than 368 cities in the developing world will have more than one million people in each, and at least 23 of these will have more than 10 million residents. Collectively, these cities will account for about 1.5 to 2 billion people. About 35 to 40 percent of these urban concentrations will comprise BOP consumers. The density of these settlements-approximately 15,000 people per hectare-will allow for relatively easy market penetration. If even half of the current poor were incorporated in the global market, they could buy enormous quant.i.ties of goods and services in aggregate even if individual purchases are small. Moreover, because poverty is relatively concentrated, it is not difficult to reach vast swaths of poor at once. Consider that by 2015 there will be more than 225 cities in Africa, 903 in Asia, and 225 in Latin America. More than 368 cities in the developing world will have more than one million people in each, and at least 23 of these will have more than 10 million residents. Collectively, these cities will account for about 1.5 to 2 billion people. About 35 to 40 percent of these urban concentrations will comprise BOP consumers. The density of these settlements-approximately 15,000 people per hectare-will allow for relatively easy market penetration.57 BOP businesses have the potential to s.h.i.+ft att.i.tudes of many poor, showing them the ”capitalist light” at the end of the tunnel. Dejected and disenfranchised, the poor don't have a reason to believe in globalization and commerce until they can physically touch it and see it. When someone in the neighborhood has a car, cell phone, and maybe even a laptop, the results seem more tangible. But until then, despair is pervasive for people stuck in the poverty trap.

The BOP strategy that has perhaps received the most attention lately is microcredit. Microcredit is an umbrella term for all programs extending small loans (microfinance lending-often as little as $25) and other financial services such as savings accounts, to very poor people for self-employment projects that generate income and a source of support for their families.58 Virtually unheard of before the 1970s, microlending has become a global phenomenon as businesses and people realize its efficacy in fighting poverty and inequality. Microfinance develops a culture of trust and teaches basic concepts of having to pay back and understanding a.s.set and liability matches or mismatches. The Microcredit Summit's latest report notes that small loans to the poor rose to 133 million people-up from 13 million people in 1998. Virtually unheard of before the 1970s, microlending has become a global phenomenon as businesses and people realize its efficacy in fighting poverty and inequality. Microfinance develops a culture of trust and teaches basic concepts of having to pay back and understanding a.s.set and liability matches or mismatches. The Microcredit Summit's latest report notes that small loans to the poor rose to 133 million people-up from 13 million people in 1998.59 As of 2007, 3,316 microcredit inst.i.tutions reported reaching 133,030,913 clients, 92,922,574 of whom were among the poorest when they took their first loan. Of these poorest clients, 85.1 percent are women. As of 2007, 3,316 microcredit inst.i.tutions reported reaching 133,030,913 clients, 92,922,574 of whom were among the poorest when they took their first loan. Of these poorest clients, 85.1 percent are women.60 Increasingly, banks and philanthropies are realizing that microlending provides an excellent way to both alleviate poverty and instill a sense of economic power including savings and ambition for the future. Increasingly, banks and philanthropies are realizing that microlending provides an excellent way to both alleviate poverty and instill a sense of economic power including savings and ambition for the future.

In the past, banks in the developing world rarely lent to the poor, instead the poor had to go to moneylenders who often charged exorbitant interest rates. This trapped farmers and other low-income earners in a cycle of poverty and deprived developing country economies of small businesses. Grameen Bank of Bangladesh and its founder Muhammad Yunus, n.o.bel Peace Prize winners for their work using microcredit loans to lift millions of women out of poverty, have shown how poor borrowers can be as reliable as the rich, and that trust can motivate repayment as well as collateral. Yunus pioneered ”social collateral,” where he would give loans to a group of women who were then responsible for each other's repayment. This kind of peer pressure turned out to be remarkably effective. Think of this in contrast to securitization and credit ratings discussed in Chapter 2. Indeed, in Bangladesh today, Grameen's loan recovery rate is an astonis.h.i.+ng 98.5 percent, as compared to 40 to 50 percent at conventional banks that offer loans to affluent families in Bangladesh.61 Grameen's success lends support to a growing recognition that capitalism can be harnessed to curb poverty just as, if not more effectively than aid programs. (See Grameen's success lends support to a growing recognition that capitalism can be harnessed to curb poverty just as, if not more effectively than aid programs. (See Table 8.2 Table 8.2.) Other organizations besides Grameen Bank are increasingly recognizing the value of microfinance lending, both for their own economic well-being as well as that of their clients. Similar programs have popped up all over the globe, from Mexico to Indonesia. Making loans and expecting investment returns encourages a greater degree of accountability than simply making a grant. For the recipients, meanwhile, there are benefits apart from the capital received, including the opportunity to demonstrate their creditworthiness and fiscal responsibility. A loan from a foundation can serve as a credit history, key to obtaining more traditional forms of capital, such as bank loans, and attracting for-profit investors.The recipients of microfinance loans are generally perceived as more credit-worthy by these inst.i.tutions.62 One of the more innovative NGOs in this s.p.a.ce is Kiva ( One of the more innovative NGOs in this s.p.a.ce is Kiva (es an engrained multilateral Macro Quantum strategy. Currently, World Bank projects focus on the goals of its 1999 Comprehensive Development Framework, which encourages countries to own their development agendas and be active stakeholders.63 By working almost exclusively with governments, the World Bank is in danger of both making itself obsolete as well as abetting corrupt regimes. Microfinance lending, on the other hand, has the power to reach impoverished citizens, bypa.s.sing crooked governments, and cultivating commercial culture.The World Bank could give out leveraged loans to microlending inst.i.tutions in order for them to expand. In the spirit of microlending itself, by making loans to microlending organizations deemed ”too risky” by traditional commercial banks and investors, the World Bank could provide an important stimulus for local growth. By working almost exclusively with governments, the World Bank is in danger of both making itself obsolete as well as abetting corrupt regimes. Microfinance lending, on the other hand, has the power to reach impoverished citizens, bypa.s.sing crooked governments, and cultivating commercial culture.The World Bank could give out leveraged loans to microlending inst.i.tutions in order for them to expand. In the spirit of microlending itself, by making loans to microlending organizations deemed ”too risky” by traditional commercial banks and investors, the World Bank could provide an important stimulus for local growth.

But BOP development means more than just microlending and has greater impact by broadly engaging the lowest strata of developing countries. Oftentimes, poor people cannot afford to buy greater volumes of goods that they would like; a reasonably priced small packet would have great appeal. For example, figure 8.6 figure 8.6 shows the growing number of single-serve packages of shampoo that are sold in the Indian market. Measured in tons, the Indian shampoo market is as large as that of the United States. Large MNCs, such as Unilever and Procter & Gamble (P&G), as well as local firms have penetrated the BOP through scaled down products. Today, the penetration of shampoo in India is about 90 percent. shows the growing number of single-serve packages of shampoo that are sold in the Indian market. Measured in tons, the Indian shampoo market is as large as that of the United States. Large MNCs, such as Unilever and Procter & Gamble (P&G), as well as local firms have penetrated the BOP through scaled down products. Today, the penetration of shampoo in India is about 90 percent.64 There are numerous examples of BOP success. ”Emerging markets are our key growth areas,” says Francois Perraud of Nestle. ”Our best sellers in Africa are 3-for-1 products, where granulated coffee, cream, and sugar are all sold in one powder sachet.” As Gunender Kapur, of Unilever Nigeria, says, ”Our well-recognized brands are sold in small, low-priced packs. This ensures that consumers towards the bottom of the economic pyramid, earning daily wages, can buy our brands with a relatively modest cash outlay.65 Or consider that India's Tata Motors just developed what it calls the world's cheapest car, the Nano. Unveiled in January 2008 with a retail price of about $2,500, the cars have no radios, no airbags, no pa.s.senger-side mirror and there is only one winds.h.i.+eld wiper. Or consider that India's Tata Motors just developed what it calls the world's cheapest car, the Nano. Unveiled in January 2008 with a retail price of about $2,500, the cars have no radios, no airbags, no pa.s.senger-side mirror and there is only one winds.h.i.+eld wiper.66 However,Tata Motors is hoping that the introduction of the Nano not only empowers the poor but also opens up a previously unexplored market niche for the company. This should be a wake-up call to other automobile manufacturers, particularly in industrialized countries. As GM and Ford continue to struggle with huge financial losses in the face of growing compet.i.tion from more efficient overseas firms, perhaps they should look to expanding their market share in developing markets with no-frills, inexpensive automobiles. However,Tata Motors is hoping that the introduction of the Nano not only empowers the poor but also opens up a previously unexplored market niche for the company. This should be a wake-up call to other automobile manufacturers, particularly in industrialized countries. As GM and Ford continue to struggle with huge financial losses in the face of growing compet.i.tion from more efficient overseas firms, perhaps they should look to expanding their market share in developing markets with no-frills, inexpensive automobiles.

Figure 8.6 Single-Serve Sachet as a Percentage of Total Shampoo Market in India Single-Serve Sachet as a Percentage of Total Shampoo Market in India SOURCE: /articles/article.asp?p=389714&seqNum=4.

The U.S. government could do a lot to promote these BOP opportunities through increased funding for government agencies that support U.S. business abroad, such as the Export-Import Bank and the Overseas Private Investment Corporation (OPIC). Moreover, governments can subsidize or give tax breaks to corporations that invest in the developing world.With government support between NGOs, multilateral a.s.sistance, and corporate efforts, poverty can be eradicated while at the same time promoting the capitalist peace.

These BOP opportunities cannot be easily leveraged without the cooperation of all these players. At the core of all poverty arguments is essentially the promotion of wealth, stability, and more solid citizens.h.i.+p. G7 countries, particularly the United States, have failed to realize these can be achieved by accessing BOP populations-some two billion people worldwide. BOP should be a win-win: The more Fortune 500 companies that venture out to emerging markets, the more seeds of capitalism are spread while simultaneously opening up new markets and building brand recognition. As long as developing countries' poor are excluded from target markets, G7 countries will continue to miss out on incomparable business opportunities.

NGOs and Social Entrepreneurs All around the world, nongovernmental organizations (NGOs) have become the frontline warriors in the fight against global poverty, often working with multilaterals and MNCs to turbo boost the effort. There are thousands of such philanthropies around the world, with more than 3,000 of them having UN consultative status today.67 These nonstate ninjas have been essential in filling the gap between what the state and the international community are willing and able to provide and what the people need. In many cases, the largest NGOs provide more in direct funding than parts of the United Nations. These nonstate ninjas have been essential in filling the gap between what the state and the international community are willing and able to provide and what the people need. In many cases, the largest NGOs provide more in direct funding than parts of the United Nations.

For example, the Gates Foundation, the world's largest private charity founded by U.S. billionaire and Microsoft founder Bill Gates and his wife Melinda, runs a global development program that works with ”motivated partners to create opportunities for people to lift themselves out of poverty and hunger.”68 The operating budget for the Gates Foundation in 2006 ($33 billion) was actually 10 times greater than the operating budget for the World Health Organization in the same time period. Similarly, Oxfam International-one of the oldest and best known NGOs-is a confederation of 13 ent.i.ties working together with more than 3,000 partners in more than 100 countries to combat and eradicate poverty. The operating budget for the Gates Foundation in 2006 ($33 billion) was actually 10 times greater than the operating budget for the World Health Organization in the same time period. Similarly, Oxfam International-one of the oldest and best known NGOs-is a confederation of 13 ent.i.ties working together with more than 3,000 partners in more than 100 countries to combat and eradicate poverty.69 Oxfam has a presence in virtually every corner of the world, sponsoring development programs and responding to crises such as the Darfur tragedy. Oxfam also maintains campaigns for policy and practice change on fair trade, conflict and humanitarian response, climate change, and issues such as debt relief, the global arms trade, poverty reduction, and universal basic education. Oxfam has a presence in virtually every corner of the world, sponsoring development programs and responding to crises such as the Darfur tragedy. Oxfam also maintains campaigns for policy and practice change on fair trade, conflict and humanitarian response, climate change, and issues such as debt relief, the global arms trade, poverty reduction, and universal basic education.70 In the fiscal year 2005-2006, Oxfam disbursed $638.25 million through its global programs. In the fiscal year 2005-2006, Oxfam disbursed $638.25 million through its global programs.71 All told, the sophisticated and experienced staff and large budgets of these NGOs help them provide vital services to the world's poor. All told, the sophisticated and experienced staff and large budgets of these NGOs help them provide vital services to the world's poor.

One of the more exciting NGO trends is the emergence of ”social entrepreneurs,” the venture capitalists of the nonprofit sector.72 These small players recognize a social problem and use entrepreneurial principles to organize, create, and manage specific ventures to make social change. Whereas traditional venture capitalists measure performance in investment returns and profit, a social entrepreneur focuses on broader societal impact. These groups tend to be smaller than most NGOs (often just one or two people and often very young). They sometimes partner with NGOs, multilaterals, or other citizen groups (in both the public and private sectors). By using private sector savvy and taking advantage of market forces, social entrepreneurs are playing an important role in alleviating poverty throughout the world. The Schwab Foundation even sponsors the attendance of social entrepreneurs at the Davos World Economic Forum. These small players recognize a social problem and use entrepreneurial principles to organize, create, and manage specific ventures to make social change. Whereas traditional venture capitalists measure performance in investment returns and profit, a social entrepreneur focuses on broader societal impact. These groups tend to be smaller than most NGOs (often just one or two people and often very young). They sometimes partner with NGOs, multilaterals, or other citizen groups (in both the public and private sectors). By using private sector savvy and taking advantage of market forces, social entrepreneurs are playing an important role in alleviating poverty throughout the world. The Schwab Foundation even sponsors the attendance of social entrepreneurs at the Davos World Economic Forum.

One headline grabbing organization founded to support these activities is Ashoka, started in 1980 by former McKinsey consultant Bill Drayton, often called ”the G.o.dfather” of social entrepreneurs.h.i.+p.”73 Drayton likes to say that social entrepreneurs neither hand out fish nor teach people to fish-their aim is to revolutionize the fis.h.i.+ng industry. Responding to the demand, many universities are now offering cla.s.ses in social entrepreneurs.h.i.+p, and there are a growing number of role models. Drayton likes to say that social entrepreneurs neither hand out fish nor teach people to fish-their aim is to revolutionize the fis.h.i.+ng industry. Responding to the demand, many universities are now offering cla.s.ses in social entrepreneurs.h.i.+p, and there are a growing number of role models.74 The emergence of more social entrepreneurs and their improved access to growth capital as they get better connected to philanthropists, is creating enormous productivity opportunities for the citizen sector. The emergence of more social entrepreneurs and their improved access to growth capital as they get better connected to philanthropists, is creating enormous productivity opportunities for the citizen sector.75 The first Ashoka fellow was named in India in 1981. There are now about 1,800 fellows in 60 countries and Ashoka has a $30-million annual budget funded by donations. Fellows often come from Ashoka's private sector partners like consultants McKinsey & Co. and public relations firm Hill & Knowlton. The first Ashoka fellow was named in India in 1981. There are now about 1,800 fellows in 60 countries and Ashoka has a $30-million annual budget funded by donations. Fellows often come from Ashoka's private sector partners like consultants McKinsey & Co. and public relations firm Hill & Knowlton.76 Ending Agricultural Subsidies As we've pointed out several times now, failing to bring the Doha trade negotiations to a successful and equitable conclusion has wreaked havoc on the global economy. A well-greased trade system is an integral part of the international development agenda:All development partners should collaborate in devising a shared global strategy to address this global problem. G7 farm subsidies should be eliminated; the returns on this concession would be far greater than the sacrifice. In addition to making impoverished farmers' crops more compet.i.tive in the international market, ending subsidies would give G7 countries remarkable leverage with developing country governments in the manufacturing sectors. Over the long term, agricultural productivity must increase in the developing world in order to both avert food crises as well as to combat poverty. In order for this to happen, however, the Doha round must be settled in a way that allows developing countries' agricultural products to compete fairly in the global marketplace.

Even the World Bank Group President Robert Zoellick has suggested rich countries could help finance a ”green revolution” to increase farm productivity and raise crop yields in Africa. One measure the U.S. Congress failed to pa.s.s in 2008 aimed to create a pilot program to buy $25 million in food grown locally in poor countries. Currently, the United States buys food from U.S. suppliers and pays high s.h.i.+pping fees to send it to needy countries.77 By implementing this legislation, the United States could have saved money as well as encourage local production by buying directly from local farmers. By implementing this legislation, the United States could have saved money as well as encourage local production by buying directly from local farmers.

World Bank Reform Aside from the Doha round, the World Bank itself has become part of the poverty problem. It focuses on governments, ignoring gra.s.sroots groups. The IMF and the World Bank have sometimes extended funds to governments that either have no interest in reform or are unable to pull it off, thereby providing some additional financial breathing s.p.a.ce to malfeasant rulers. Despite good intentions, World Bank funds may actually be subverting the spread of pro-market policies.78 By seeking cooperation primarily with governments, the World Bank is, quite literally, banking on the local government infusing cash into the economy rather than hedging its bets by engaging the impoverished themselves. By seeking cooperation primarily with governments, the World Bank is, quite literally, banking on the local government infusing cash into the economy rather than hedging its bets by engaging the impoverished themselves.

Furthermore, while the World Bank has taken positive steps toward poverty eradication, the organization's resources could be used more efficiently to do more. As discussed in Chapter 2, creating a permanent fund based on gold reserves could help foster many areas that may fall outside traditional World Bank lending programs today. For example, funding venture capital for microlending, alternative energy projects, sustainable agriculture, and other BOP sectors could dramatically accelerate progress on the World Bank's mission to end poverty. Ending poverty cannot be achieved by the public sector alone, and initiatives like this are the best way to ensure long-term sustainability and growth.79 The broadening of the World Bank's shareholder base, as discussed earlier, would also help this effort by making more capital available. The broadening of the World Bank's shareholder base, as discussed earlier, would also help this effort by making more capital available.

Capitalist Peace Corps The United States could do much to promote capitalism, provide aid, and alleviate poverty in the long-term through the formation of a ”Capitalist Peace Corps,” a group modeled on the current Peace Corps, with an expanded budget and a renewed focus on commerce, finance, and trade. One of the Peace Corps' stated missions is to ”help promote a better understanding of Americans on the part of the peoples served.” What better way to do that than to use it to promote capitalism, a core American value. Initiatives like this provide a crucial basis for inspiring good will toward the United States and other developed countries as well as providing a useful platform from which to combat poverty.

The U.S. Peace Corps was officially established in March of 1961 and has had 190,000 volunteers and trainees to date in 139 different countries. According to the Peace Corps website, there are 8,079 current volunteers. Currently, however, only 15 percent of the Peace Corps budget is being put toward business development. The rest is dedicated to other important areas as education (36 percent), health and HIV/ AIDS (21 percent), environment (14 percent), youth development (6 percent) and agriculture (5 percent),80 with the aim of helping: (1) the people of interested countries in meeting their need for trained men and women; (2) to promote a better understanding of Americans on the part of the peoples served; and (3) to promote a better understanding of other peoples on the part of Americans. While these are admirable goals, ”dollars and sense” deserves its own focused organization. This more specialized Capitalist Peace Corps would aim to identify business/entrepreneurs.h.i.+p opportunities in developing countries, mobilize needed resources in social entrepreneurial fas.h.i.+on, and tie in American industry where feasible. In addition to creating greater potential for business, such a group would also indirectly promote the U.S. image abroad.The Peace Corps fiscal year 2008 budget was $330.8 million, which could easily be increased by at least $1 billion to accommodate the creation of the new Capitalist Peace Corps. with the aim of helping: (1) the people of interested countries in meeting their need for trained men and women; (2) to promote a better understanding of Americans on the part of the peoples served; and (3) to promote a better understanding of other peoples on the part of Americans. While these are admirable goals, ”dollars and sense” deserves its own focused organization. This more specialized Capitalist Peace Corps would aim to identify business/entrepreneurs.h.i.+p opportunities in developing countries, mobilize needed resources in social entrepreneurial fas.h.i.+on, and tie in American industry where feasible. In addition to creating greater potential for business, such a group would also indirectly promote the U.S. image abroad.The Peace Corps fiscal year 2008 budget was $330.8 million, which could easily be increased by at least $1 billion to accommodate the creation of the new Capitalist Peace Corps.

Alleviating Poverty as a Macro Quantum Strategy While poverty has been decreasing, there is still work to be done. As trade, foreign investment, and technology have spread, the gap between the economic haves and have-nots has widened, not only in wealthy countries like the United States but also in poorer nations like Mexico, Argentina, India, and China. There are pockets of ultra-wealthy people now living in these countries alongside some of the world's poorest. This widening not only exacerbates antiglobalization sentiment (which is not in the interest of either the G7 or impoverished people), but also makes the battle lines less clear in the fight against poverty. It is necessary for the G7 as well as rising powers to step up and address poverty before our collective economic interests are threatened.

Imagine the potential if these last two billion impoverished were brought into the Macro Quantum economy.The capitalist peace thrives on differentiated labor, on compet.i.tion, on economies of scale and on innovation-all things that poverty severely inhibits. There are still hundreds of millions of people barely eating enough calories each day to survive, let alone to dream about partic.i.p.ating in the global economy-these are the people we need to incorporate and raise out of the vicious cycle of poverty. Therefore it is in everyone's collective interest to cultivate new markets and labor sources throughout the world.

With momentum in the Millennium Development Goals stalled, and 2015 MDG targets not likely to be met, global poverty reduction requires a renewed focus not only from the G7 countries led by the United States but also from new rising powers. Moreover, the foreign-aid strategies of the past need broader support from NSAs geared toward engaging populations not simply governments. Beyond greater trade engagement, the better use of NGOs and social entrepreneurs, MNCs and microlenders, as well as more effective multilateral platforms, are necessary to alleviate poverty and ensure that we continue striving to achieve the capitalist peace.

Social EntrepreneursSocial entrepreneurs prove that a worldwide impact can be made by relatively few individuals. Some of these efforts are modest. For example, Soraya Salti, a 37-year-old Jordanian woman is trying to transform the Arab world by teaching entrepreneurs.h.i.+p in schools. Her organization, Injaz, is now training 100,000 Arab students each year to find a market niche, construct a business plan, and then launch and nurture a business. The program has spread to 12 Arab countries and is aiming to teach one million students a year. Girls, in particular, have flourished in the program, which has had excellent reviews and is getting support from the U.S. Agency for International Development.Or consider Cinepop, the brainchild of Ariel Zylbersztejn, a 27-year-old Mexican. Ninety percent of Mexicans can't afford to go to movies, so he started his own Cinepop, which shows movies on inflatable screens in public parks for free. He sells sponsors.h.i.+ps to companies to advertise to the thousands of viewers who come to watch the free entertainment. Cinepop is only three years old, but already 250,000 people a year watch movies on his screens-and his goal is to take the model to Brazil, India, China, and other countries.But perhaps the most far-reaching and global of the social entrepreneurial projects is Kiva.org. In 2005, more than 20 years after Grameen Bank pioneered the idea of microlending, Matt and Jessica Flannery brought a touch of Silicon Valley innovation to the practice. Kiva is ”the world's first person-to-person micro-lending web site, empowering individuals to lend directly to unique entrepreneurs in the developing world.” Its model is simple: Kiva partners with existing microlending organizations that choose qualified entrepreneurs.The organizations use kiva. org to post profiles of these entrepreneurs and their projects. The stories of the people found on Kiva are often very detailed. A random perusal of the site brings up Grace from Uganda, whose $500 loan allowed her to buy refrigeration equipment for her peanut b.u.t.ter business; and Angel, a Roma gypsy from Bulgaria, who used $850 to start his own bicycle repair shop.On the giving side, potential lenders are able to browse potential recipients, then lend using a credit card or Pay Pal account. Over time, the entrepreneur repays the loan (without interest). Repayment and other updates are posted on Kiva and e-mailed to lenders if they chose. When lenders get their money back, they can re-lend to someone else in need, donate their funds to Kiva for operational expenses, or withdraw their funds. In only a couple of short years, Kiva has become an extremely popular tool. The web site gives statistics on the loans made and repaid in the last week. A typical week looks like this: $680,600 was lent; 1,574 entrepreneurs funded; 9,103 lenders made a loan; and 644 loans were completely repaid. Not only has Kiva brought a new degree of transparency to microlending, it has fostered a personal rapport between lenders and recipients, reinforcing the sentiment that, through technology, it really has become a small world, after all.The increasing prominence of social entrepreneurs has the potential to generate huge benefits by spreading capitalist culture abroad and identifying unfulfilled societal needs. America Forward (munity-run programs to increase the number of social entrepreneurs in the futureao.

Chapter 9.

Driving with a New Dashboard in the Macro Quantum World There are three kinds of lies: lies, d.a.m.ned lies, and statistics.