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Beyond Development

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Pontis Foundation

on 20 November 2013

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Transcript of Beyond Development

Beyond Development
Jakub Simek, Pontis Foundation
Do you know what this is and how much is it worth?
Jeff Koons, Balloon Dog statue

It represents the joy of celebrating birthdays and it was sold in Novemer 2013 by Christie's for
58 million dollars
. The most expensive work of a living artist sold at auction
This example shows the importance of added value and the brand
the so called "country branding" is a similar case
According to Simon Anholt the brand ”Switzerland” has more value than all the riches in that country. This perspective can be applied also on development cooperation.
What is the value of the brand “China” or “Africa”?

Do the sum of activities and policies called "development cooperation" increase or decrease these brands?
Who is the biggest private sector employer in the world?
1. Walmart - 2.3m employees
2. Hon Hai, better known as Foxconn - 1.2m employees
3. G4S
McDonald's would be second with 1.8m employees but it operates as a franchise
China has an image of the biggest global exporter but for example only
from the cost of producing iPhone ($179) is captured in China (Rassweiler 2009)
Foxconn is a Taiwanese company with factories in China that produces also iPhones and iPads
The hopeless continent vs Africa Rising
Stereotypes about Africa
Why are stereotypes good, and why are they wrong?
We have to "lump to live" - simplify things and information in order to survive
We are hurting others or missing opportunities e.g. for business
The Silicon Valley homeless problem
What is a developed country ?
Do you know M-Pesa?
Only 2% of Europeans recognize Africa for ICT innovations
"A developed country is not a place where the poor have cars. It's where the rich use public transportation. ” - Gustavo Petro, Mayor of Bogotá.
bell curve or long tail?
"The 2013 Credit Suisse Wealth Report finds that global wealth has more than doubled since 2000, reaching a new all-time high of
241 trillion US
dollars. Strong economic growth and rising population levels in emerging nations are important drivers of this trend. Average wealth per adult has also hit a new peak of
51,600 US dollars
, but inequality remains high."
Richer countries are more equal
Inequality in the world
"An adult requires just
4,000 US dollars in assets to be in the wealthiest half of world citizens
Credit Suisse Global Wealth Report:
"However, a person needs at least
75,000 US
dollars to be a member of the top
10 percent
of global wealth holders, and
753,000 US
dollars to belong to the top 1 percent."
"Taken together,
the bottom half of the global population own less than 1 percent
of total wealth. In sharp contrast, the
richest 10 percent hold 86 percent of the world’s wealth, and the top 1 percent alone account for 46 percent
of global assets."
Millennium Development Goals?
Who is right?
Ester Duflo researches how effective are various development projects
Slovakia beats Czech Rep. in Google Trends news search
Concepts in time through Google Ngram Viewer
Development cooperation is discussed in political capitals
News coverage of development cooperation is limited
What are the benefits of Development Cooperation?
reduction of financial risk for investors
supporting the most vulnerable and poor
development of new industries and policy innovations
promotion of good governance and civil society
The negative effects of development cooperation
" Poor people in rich countries supporting rich people in poor countries"
The most effective tool for fighting poverty is employment creation
DevCo innovations
social enterprise and Bottom of the Pyramid business strategies
Global CSR, corporate volunteering
conditional transfers
micro franchise is the new microfinance
cash payments for refugees
Impact sourcing
Public Private Partnerships
Impact bonds
Development cooperation becomes more business-oriented
But is it a right way?
Developing social safety nets and a more equal society shouldn't be abandoned
Remember the rich people in public transport paradigm
Full transcript