Dear Colleagues,

Once again I have mixed views.

I think that Jim Forster's point about the public sector role in
investing in part of the infrastructure for ICT is very important and
indeed important from a country's e-readiness perspective as well, and
that there is a clear similarity here with other public sector
investments into water, railways etc. I also agree that the market's
ability to listen to customers is one of its key qualities (however,
this is assuming that all customer voices are heard).

Allen Hammond's research is excellent, needed and very encouraging for
businesses in doubt about investing in poorly served markets, and with
the current trend for corporate responsibility some "externalities" will
no doubt be taken care of. However, if we are talking about eliminating
poverty, the cut-off of $6000 per household per year is rather high. But
perhaps this is not the point? Perhaps it is merely that there is a
large untapped market amongst the poorer (not the absolute poor) and
that this group would benefit from the investment?

If the key question is can profit alone eliminate poverty and
businesses take over where NGO's and Governments fail -- then I think
the answer has to be no -- simply because their motivations and goals
are different.

But if the key question is can businesses provide ICT services better
than NGO's, and is there a business case for entering "bottom of the
pyramid" markets, I think the answer is without a doubt - yes!

When it comes to the very poor or otherwise disadvantaged groups, and
when it comes to market externalities such as the environment,
governments and NGOs must continue to play a role. Albeit, a more
efficient role than in the past! In this regard, I found Sam Lanfranco's
analysis of the driving forces of development projects excellent, and I
agree that often development projects do not have the required level of
management, administration and accountability. The latter is an area
that the not-for-profit organisations desperately need to address.

Although I don't think that NGOs' function will become superseded by
business (rather, they have different roles to play), Tom Abeles' point
here that the current trend poses new challenges to NGOs is very
relevant, and perhaps this debate will lead to greater transparency and
efficiency in the not-for-profit sector, which in itself, would not be
such a bad thing.


Best wishes,

Bettina Gronblom Hammerich



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