The Problem With Philanthropy

I've always been struck by the portrayal and advertisement of poverty in the West. Counter-intuitively, the West is also in Africa, or at least in South Africa, where it is neatly contained in a thin film that permeates the surface level of urban life especially. In this "West", the understanding of poverty and how life unfolds for a poor person is quite limited.

Professor Bill Easterly captures the disconnect in a succinct quote offered by Acumen Fund Founder. To paraphrase,"The problem with philanthropy is that none of the rich people know poor people." This may help explain the desperate need for products and services that fully incorporate Base of the Pyramid (BoP) consumers as design partners with scientists, engineers and anyone else charged with meeting the needs of the poor.

The point is that the poor need solutions that are tailored specifically to their own needs. It's is laughable that most Indian cooksters are designed by European males who have probably never cooked. There is so much room for bottom-up destructive innovation that taps into the end consumer as a valuable resource and source of knowledge.

Microsoft Chief of Research and Strategy Craig Mundie thinks of the innovative process at the BoP level as "serve and return"--serve something up and the market returns it back with a yes (high demand)/no response. Disagree. I think for real innovation, to really include the poor--who by capitalists' design have been excluded from the efficiency of the invisible hand--we have to challenge ourselves not just to create goods with the BoP in mind, but to allow the BoP to drive the creative process and start shifting the needle on the power dynamic.

I get quite heated with excitement listening to people acknowledge the skewed power and privilege struggles embedded in how "we" serve the poor. What really gets me going though, is hearing people drive the conversation to why BoP products should not only meet a functional criterion, but they should also be beautiful, sexy, desirable--tipping a nod to the dignity of life at the BoP level, as anywhere else on the food chain.

I think the skill that's hardest to learn is what we call "moral imagination", the idea of truly being able to put yourself in the shoes of other people and build products from that perspective.

I'm reminded of Soweto in Johannesburg and how tough Sowetan consumers are to crack. You have to deliver quality. It has to be practical and sexy, it must be desirable and above all beautiful.

In an economy where income per capita is an average R8,000 per annum--roughly $1,073, people still choose products that, at least subconsciously, reinforce their human dignity. Sara Lee's Kiwi Shoe Polish has its biggest market in Africa. Even if it's the only pair of shoes someone has, you better believe those shoes will shine. And you have never seen so many lace curtains in your life. Walk into any Sowetan home--even in shacks--and I guarantee almost always windows graced with beautiful white lace curtains that befit a bride. The poor want exactly what you want--quality. Innovative social entrepreneurs deliver BoP quality that's equal parts cheap, quality and cheerful.