Assignment 3: Substantiating Claims
Tackling Poverty: Designing for Recipients or Customers
Through funding from the World Bank, the Malawi Urban Water Supply Project was implemented by the Ministry of Water Development. One of its main initiatives was to expand water source, transmission and storage throughout Balantyre and Lilongwe in Malawi. To combat issues of poor availability of clean water, the Ministry of Water Development planned to purchase top of the range water holding systems and introduce them in these towns (Kawalewale, 2000).
This practice is clearly based on the assumption that we can donate our way out of poverty as suggested in the book ‘Out of Poverty’ (Polak, 2008a). The World Bank is an organisation that provides financial support for projects in developing countries in a bid to reduce poverty worldwide (The World Bank Group, 2011a). In this case, the World Bank was to provide a grant to subsidise the cost of a high quality product for these poorer communities.
This initiative was in the end deemed an impractical solution to Malawis water transmission problems. The cost of implementing these large-scale systems for a farmer earning less than a dollar a day was simply unachievable. The high quality of the products was considered unnecessary for the problems that most poverty stricken famers were facing (Kawalewale, 2000).
Subsiding the price of these top of the range products would also mean that local small-scale entrepreneurs would lose financially. This kind of charitable handout is what results in societies dependent on external charitable organisations. If the World Bank funding were to go to local designers and entrepreneurs, the community would be taking a step towards becoming more self-sufficient.
In a contrasting case, International Development Enterprises is a social enterprise currently assisting rural farmers to increase their income by understanding and responding to local problems in a variety of countries. IDE treats these smallholder famers as customers rather than recipients, giving them the ability to decide what problems are most important to address and if IDE solutions have any value for them (iDE, 2012).
One of IDE’s large-scale projects PRiSM creates opportunities for small farmers to increase their income, whilst still profiting small business owners in the region. Rather than subsidising expensive farming equipment, PRiSM aims to create networks between farmers, local businesses and services in order to promote self-sustainable regions. This method has been extremely successful in regions such a Bangladesh, where farmers experience a variety of problems ranging from lack of agricultural inputs to poor water resource management (The World Bank Group, 2011b).
The difference between these two initiatives provides evidence supporting my hypothesis that it is more successful to treat consumers of the developing world as customers, rather than recipients. The first case study was deemed unsuccessful, as it did not take into account the specific needs of individual farmers in the region. It is not appropriate to create an opportunity to buy high quality, large-scale products at a reduced cost if the target market can still not afford them or do not require such sophisticated models. Disconnection with the target market resulted in an inappropriate solution for Malawi’s basic farming problems. The PRiSM case study summarises the importance of interaction between small communities and charitable organisations. By trying to develop self-sufficiency, they are able to supply only what farmers need and can afford whilst boosting sales of local product, improving local economy. The evaluations provide clear examples of how engaging with consumers as customers can be more effective than treating them as recipients.
iDE. (2012). iDE’s Mission. Retrieved from http://www.ideorg.org/OurStory/Mission.aspx
Kawalewale, H. (2000, June 30). Malawi-Urban Water Supply Project Report. Retrieved from http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2000/07/08/000094946_00051805410727/Rendered/PDF/multi0page.pdf
Polak, P. (2008a). Out of poverty. (p. 34). San Francisco, CA: Berrett-Kohler Publishers Inc
The World Bank Group. (2011a, April 02). About us. Retrieved from http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/0,,pagePK:50004410~piPK:36602~theSitePK:29708,00.html
The World Bank Group. (2011b). Bangladesh: Priorities for agriculture and rural development. Retrieved from http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/EXTSAREGTOPAGRI/0,,contentMDK:20273763~menuPK:548213~pagePK:34004173~piPK:34003707~theSitePK:452766,00.html