Dear Colleagues,

Thanks for all the input, both on this forum and privately.

I agree: financial sustainability of IT products in rural areas means
either 1) government or supragovernment subsidy or 2) profit-making.

If 'profit-making', this profit can be taken by an individual
entrepreneur or by a community (itself or an association within it or a
cooperative) or government institution (like a school) seeking profit.
Jhai has experience in all these forms in small applications in various
programs (coffee, high school ICT, Jhai PC, weaving). They all can work
(or fail) with people in remote rural villages, we find. Our database is
small, so I choose not to draw conclusions on which form is better. Our
experience is that the key thing is that the process must be 'owned' in
an empowered sense by the people of the village who use it.

'Profit' is what is left over after all outputs, including, I should
think fixed costs, replacement cost, MAINTENANCE, and running costs, are
covered. We have developed a tool (with farmers, local entrepreneurs and
Stanford MBA/engineering students) that can be modified infinitely for
particular situations. If you want it, write me and I will include you
in our distribution of our next Jhai Update. I'd give it to you, now,
but it includes a small application that I was given by a Stanford
student who is now in Singapore and I have to find out how you might
purchase that part.

Running cost includes electricity costs. In remote areas generation has
to be done by alternative means. In the (probably) short term
alternative electrical generation will be more relevant everywhere, but
especially where money is in short supply. This is due to the increased
demand for petroleum and the soon-to-be fall off of supply.

If one uses lead acid batteries, then questions of disposal of them
becomes an issue of sustainability. In fact, years ago I had the
opportunity to spend an afternoon with an inventor who holds most of the
patents for passive solar. He told me that one should look at all
components' elementary forms and ask oneself what would happen if
everyone in the world adopts this? What happens environmentally and what
happens in terms of costs. I think this is a good idea.

In all cases, if the community or enough individuals within a community
does not want the thing, then they won't use it. This means market
research. Market research cannot be overlooked. To get good market
information from a remote, poor village, in my experience, is not a
simple thing. It requires trust, otherwise the cultures of dependency
will lead to people saying 'yes' to almost anything that has any chance
of improving their standard of living...with a high probability that
whatever is given becomes junk.

I totally agree with Sam Lanfranco. A) You have to choose your shots. B)
small NGO's have certain advantages over large NGO's: it is much more
likely we won't be selling cookie-cutter solutions and much more likely
we actually know the people we are working with. These beliefs are
central to why Jhai Foundation will do a roll-out of the Jhai PC by a
method that over time reduces our inputs to ground-level programs
because it reduces the need for us by programs. We also won't go into
manufacturing or the publishing business. If you would like to see our
business plan, please write me and I will add you to our Update list and
include the business plan again in our next Update. Our plan is
organized around two things: 1) our willingness to work initially with
grounded programs in carefully distributed locations; and 2) our
committment to devolution, open source, and open design protocols as key
factors of our work.

I found Jim Forster's comments particularly useful in this way: you have
to know your customer and listen to her.

I also think his outline of how capitalism works is apt, although I
would quibble here and there because, as we know, the devil is in the
details. But so what? And, of course, I know he would agree that
monopolies are by nature quite inefficient.

I personally find the key piece of business knowledge is that
relationships are nearly everything. You have to keep good books, you
have to be transparent as possible, and you have to constantly seek
improvement...but relationships rule.

I'm not naturally good at relationships. I'm a combat Vietnam veteran
and I grew up very hard. So I focus on relationships and how to make
them better. I focus on my deficits as a way to be more aware of myself
and I build as much as I can on my gifts. Both are helpful processes in
encouraging and following good quality relationships, I find. And, as
much as possible, really daily, I cultivate my spiritual life.

And when I have to make a choice between getting to know a poor person
or getting to know a rich one, I try to give preference to the poor
person. I simply find that more fun. I also find that when I refuse to
always choose the soft, easy way (which would be to hang out with
relatively rich people, like me), my life becomes more full.

I hope this helps.

yours, in Peace,

Lee Thorn
chair, Jhai Foundation
921 France Ave.
San Francisco, CA 94112 USA
www.jhai.org
[EMAIL PROTECTED]
1 415 344 0360



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