Thursday, April 25, 2013

A Guide to Scaling Social Innovation

SSIR Opinion & Analysis

By Hilde Schwab

For those who have been working in the field of social entrepreneurship for a decade or more, as we have at the Schwab Foundation for Social Entrepreneurship, 2013 is starting to feel like a watershed year. Don't get me wrong: We still have enormous hills to climb in changing mindsets, improving enabling environments and correcting market failures. But I think it's worth pausing for a moment and taking stock of the global trends.

Governments as diverse as the United States, Colombia, and India have created new agencies with robust mandates to promote social innovation, including direct reporting lines to the president (or the prime minister, in the case of India). Senegal, the United Kingdom, and Canada have created national task forces to assess the social innovation policy environment and make recommendations for reform. And with yesterday's announcement by the Peruvian Ministry of Development and Social Inclusion to launch a task force to promote social innovation, Peru now joins their ranks.

In addition to initiatives at the national level, I am very encouraged to see greater multilateral efforts to advance the social innovation agenda. In June, the G8 will host a social impact investment conference in London to examine, among other things, how impact investing can help developing countries meet the Millennium Development Goals (MDGs). And in early 2014, the European Union is organizing a 1,000-plus person summit to promote the EU Social Business Initiative's programmatic and legislative agenda, which was initially launched in 2011 with the aim of fostering and scaling social enterprises across the EU's 27 member states.

How are we to interpret the proliferation of policy-making in this area? Personally, I view these various policy experiments underway as data points on a very encouraging trend line. Growing government interest in social innovation represents an opportunity not to be missed. There is a greater openness for cross-sector dialogue and for experimentation with new approaches to serving low-income people than at any time in recent memory.

That is why I am so pleased to announce the launch of the Schwab Foundation's Policy Guide to Scaling Social Innovation. The product of nearly a year of research, the policy guide presents a framework for credible, realistic policy action that governments can take to turn social entrepreneurship into a major force for innovation, drawing on real-world case studies from 10 countries. The guide also profiles 20 proven social innovation models drawn from the Schwab Foundation network to demonstrate how social enterprises deliver products and services that lead to improved outcomes for poor people, and thus why it is in the overwhelming public interest to encourage the growth of these models through appropriate policy tools.

Policy makers, public sector leaders, academics, social entrepreneurs, and members of the media: I encourage you to read this report, discuss the findings and determine which elements are most relevant for your national conditions. But, most of all, I encourage you to build on the ideas and recommendations in this guide and elevate the social innovation agenda in your country.

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Tuesday, April 23, 2013

“Letter to a Young Social Entrepreneur: the poor are not the raw material for your salvation”

Chris Blattman

That's the title of a post by an award-winning social entrepreneur himself, Liam Black:

looking back I can see clearly that a core part of what drove me was the seeking of approval of an absent father (long story) and a huge enjoyment at the attention which came with being in the vanguard of the UK social enterprise movement. It feels very good to be talked and written about and even better if there are awards and baubles.

Heroes are like the human body – the closer you get to them the more flawed, messy and complicated they are… I hope you will win lots of awards, Jude. But just be clear about your motivations.

h/t Sara Minard.

My opinions on social entrepreneurship exceed my hard knowledge of facts, which means I have a lot of inflammatory things to say. Unfortunately I have a baby in one hand and am supposed to be prepping two classes with the other (I have 14 hours before they start) and so you will get no more than this for now.

Actually, you will get one excellent morsel: BBC's Peter Day moderates a social entrepreneurship conference. He is brilliant, provocative and informed, as are several of the panelists, which makes me wonder why (with perhaps the exception of Jon Stewart) North American news moderators need to be buffoons.

The post "Letter to a Young Social Entrepreneur: the poor are not the raw material for your salvation" appeared first on Chris Blattman.

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How Did the World's Rich Get That Way? Luck - Businessweek

http://www.businessweek.com/printer/articles/111164-how-did-the-worlds-rich-get-that-way-luck

Monday, April 22, 2013

Paul Krugman: The Jobless Trap

Economist's View
We've been worried about the wrong thing:
The Jobless Trap, by Paul Krugman, Commentary, NY Times: F.D.R. told us that the only thing we had to fear was fear itself. But when future historians look back at our monstrously failed response to economic depression, they probably won't blame fear, per se. Instead, they'll castigate our leaders for fearing the wrong things.
For the overriding fear driving economic policy has been debt hysteria... After all, haven't economists proved that economic growth collapses once public debt exceeds 90 percent of G.D.P.?
Well, the famous red line on debt, it turns out, was an artifact of dubious statistics, reinforced by bad arithmetic. ... But while debt fears were and are misguided, there's a real danger we've ignored: the corrosive effect, social and economic, of persistent high unemployment. ...
Five years after the crisis, unemployment remains elevated, with almost 12 million Americans out of work. But what's really striking is the huge number of long-term unemployed, with 4.6 million unemployed more than six months and more than three million who have been jobless for a year or more. Oh, and these numbers don't count those who have given up looking for work because there are no jobs to be found. ...
The key question is whether workers who have been unemployed for a long time eventually come to be seen as unemployable, tainted goods that nobody will buy. ... And there is, unfortunately, growing evidence that the tainting of the long-term unemployed is happening as we speak. ... So we are indeed creating a permanent class of jobless Americans.
And let's be clear: this is a policy decision. The main reason our economic recovery has been so weak is that, spooked by fear-mongering over debt, we've been doing exactly what basic macroeconomics says you shouldn't do — cutting government spending in the face of a depressed economy.
It's hard to overstate how self-destructive this policy is. Indeed, the shadow of long-term unemployment means that austerity policies are counterproductive even in purely fiscal terms. Workers, after all, are taxpayers too; if our debt obsession exiles millions of Americans from productive employment, it will cut into future revenues and raise future deficits.
Our exaggerated fear of debt is, in short, creating a slow-motion catastrophe. It's ruining many lives, and at the same time making us poorer and weaker in every way. And the longer we persist in this folly, the greater the damage will be.
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Sunday, April 21, 2013

Mobile & Card Payments across East Africa

Bankelele Mobile & Card Payments across East Africa

A new unsecured card solution was launched by afb last week that will allows customers to instantly spread the cost of their purchase at participating shops into affordable 6 month repayments. afb have signed up 52 merchants like Baus Optical, Cambridge Opticians, Fabguru Shoes, Kitengela Glass, and local supermarkets (Tumaini, Home Depot, Homemade) and are also signing up other merchant shops where consumers will be able to apply for cards and get them approved & issued in the stores ahead of making a purchase.  afb settles the transaction amounts directly into the retailers bank account, and the the customer makes repayments via M-Pesa. afb next hope to venture into loans and insurance in Kenya.

How large is the card market? A Central Bank of Kenyareports showed that there were 9 million debit cards and 140, 000 credit cards in use in Kenya in 2012.

In terms of mobile money, CBK data showed that 21 million Kenyans moved Kshs. 141 billion ($1.65 billion) via 53 million mobile money transactions during February 2013.

CBK has also come up with new mobile money rules that target money laundering. They require that operators link different accounts opened by a user with a single ID card, flag accounts that move more than Kshs. 100,000 (~$1,175) per day or 300,000 (~$3,530) per week, have audit trails, institute systems to handle customer complaints and retain transaction data for 7 years. 

KCB and Western Union who have an account-based money transfer service (ABMT) in Kenya will extend it across East Africa this week, enabling KCB customers to receive money from Western Union directly into their accounts.

Kenya Airways has a 1.5% fee on all credit card transactions (owing to high processing bank charges).

Following a spate of fraud incidents last December, the Kenya Bankers Association (KBA) has launched an ATM safety campaign dubbed "Be Alert" or "Kaa Chonjo" which include tips such as cover the PIN with hand, and sharing PIN number with anyone (including spouses) 

KBA also  announced the shift by Kenyan banks to the new Europay, MasterCard and Visa (EMV) technology to ensure better security of cards.

Diners can now pay restaurant bills via M-Pesa under a new partnership between Kopo Kopo, Eat Out and Safaricom. Restaurants accept payments at 1.5% per transaction.
 
MasterCard and Equity Bank introduced PayPass enabled debit cards in 5 African markets which will enable merchants to receive payments via low cost add-ons linked to applications on their mobile devices (such as a smart phone or tablet) 

MasterCard also released a study called the MasterCard African Cities Growth Index that showed that Accra, Lusaka and Luanda offer the highest growth potential in Sub-Saharan Africa. Other ranked cities included Dar es Salaam (4), Addis Ababa (5), Nairobi (6), Kampala (7), Johannesburg  (8), Cape Town (11), Mombasa (12), Lagos (13),  and Khartoum  (19).

Credit reference bureaus like CRB Africa and Metropol are expanding across East Africa.

Nation Hela launched last year has 8,000 active cards in use.

With PesaPal, Kenyans in the Diaspora can send school fees payment directly to 12,000 schools in Kenya using their credit cards (no need for money transfer service). 

Shell Kenyahave a visa card promotion to encourage motorists to swipe their cards and pay for fuel The platform is powered by Equity Bank POS at all Shell stations, and station owners are not charged commissions for card sales (Shell pays all commissions).

Tangaza321 is said to be the second largest mover of mobile money behind M-Pesa. The Tangaza system uses biometric data (fingerprints) as many customers don't possess national ID cards and allows them to send money across all networks, even to people who don't have mobile phones.

A team with the University of Nairobi's University Students Community Organization (Uniscoo)  has developed a prepaid card for university students. Uniscoo which has 25,000 students seeks to encourage good money management among students through the use of the prepaid card powered by MasterCard.



http://www.bankelele.co.ke/2013/04/mobile-card-payments-across-east-africa.html

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Met vriendelijke groet,
Best regards,
Henk J.Th. van Stokkom.