Development from the Bottom of the Pyramid:

An Analysis of the Development Innovation Ventures Program

Julian LelandAmerican Society of Mechanical EngineersSwarthmore CollegeAugust 4th, 2011

Outline

• Definition

• Technology-Based Development Today– Global Development Policy Directive– Development Innovation Ventures (DIV) Program

• Problems in Technology-Based Development– Current Funding Climate

• Policy Recommendations

Definition

• Technology-Based Development– Achievement of development outcomes through innovative

technological means– Not basic science research– Emphasis on producing immediate development outcomes– Targeting Individuals– Targeting the “bottom of the pyramid” (BOP)

Definition

• Why technology-based development?

– Leverage of existing technologies (cellphones)

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LifeStraw Water Filter Pen

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Kickstart Super Moneymaker Pump

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Nokero N100 Solar Bulb

Technology-Based Development Today

• The Global Development Policy Directive

– Emphasis on Science, Technology and Innovation in Development

“In FY 2012, in support of the President’s Global Development Policy, the State Department and the U.S. Agency for International Development

(USAID) will enhance the use of science, technology, and innovation to achieve global development goals.”

Technology-Based Development Today

• Programs at USAID– The DIV Program

http://www.usaid.gov/div/model.html

Evaluation

• Methodology– Interviews

• Technology-Based Development Practitioners

• Funding Organizations• Relevant Experts• Government Representatives

Evaluation

• Current Funding Climate: Public Funding– Excludes DIV

– Problems• Grants are limited in applicability• Grant-making process is resource-intensive,

inflexible and slow

100 1,000 10,000 100,000 1,000,000 10,000,000

USDA NSF USAID - DGP Grand Challenges

Single Grant Amount, USD

Evaluation

• Current Funding Climate: Private Funding

– Problems• Not enough money at the bottom

1,000 10,000 100,000 1,000,000 10,000,000 100,000,000 1,000,000,000

Social Entrepreneur Incubators Social Enterprise Investors

Crowdsourced Funding Coordinators Philanthropies

Contest Organizers

Single Grant Amount, USD

Evaluation

• Current Funding Climate: DIV

Evaluation

• Other Notes– Implementing programs takes time –

level of scaling is not feasible

– Visibility is important

Recommendations

• Short Term:– Keep funding focused on Tier 1

– Increase visibility of DIV program

– Modify definition of “innovative” programs• Support for non-internet & communications

technology (ICT)/business programs• Increase emphasis on sustainability of solutions

Recommendations

• Long Term– Create small-scale funding opportunities

– Pursue alternative grant systems for small grants• Facilitate crowdsourced funding for small grants• Low/zero-interest loans• Low overhead traditional grants

– Pursue intergovernmental partnerships to leverage other government assets

Conclusion

• Thanks to…– WISE: Melissa Carl, Sandy Yeigh, fellow WISE interns– Noha El-Ghobashy, Ian Hoffbeck, Jeff Brown, Hillary

Chen, John Buydos– Interviewees at organizations

Questions?