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Category: GIM Blog
GIM Reports Informing OECD/DAC Report on ‘The Role of the Private Sector in the Context of Aid Effectiveness’
Written by austine
Wednesday, 07 September 2011 09:55
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The Working Party on aid effectiveness hosted by the Organization for Economic Cooperation and Development (OECD) Development Assistance Committee (DAC) has initiated work on the private sector in the context of aid effectiveness with a view to better understand the role of aid as a catalyst to support effective private sector contribution to development. Building on nearly 50 qualitative interviews with different stakeholders – donors, for-profit private sector, private foundations, partner countries, civil society and independent experts – the report highlights the complexity and diversity of actors, tools, approaches and partnerships working with the private sector towards development objectives. The report provides recommendations for future actions to stimulate further dialogue on the topic towards the Fourth High-Level Forum on Aid Effectiveness in Busan (29 November-1 December 2011).

With regards to the roles the private sector (for-profit and foundations) plays in relation to aid processes, interviewees mentioned the following: mobilisers of resources, e.g. through innovative consumer or market-based mechanisms; contributors of financial and in-kind resources; providers of goods and services as implementers/contractors in aid projects; dialogue partners and advocacy, e.g. on how to enhance inclusive business and market approaches, or on how to address challenges in specific sectors, such as health and agriculture; partners in public-private partnerships; and drivers of innovation. Respondents in particular emphasized that for-profit private sector contributions to the development process are more sustainable if they are embedded in the core business strategy of a company, and that there is an increased commitment to cater for unmet societal needs through core business practices, as this also provides good business opportunities.

The GIM 2008 Report, “Creating Value for All: Strategies for Doing Business with the Poor”, serves as a reference for the definition of ‘inclusive business models’ and the five key market constraints that explain why more businesses haven’t taken advantage of opportunities at the base of the pyramid, namely: 1) limited market information; 2) ineffective regulatory environment; 3) inadequate physical infrastructure; 4) missing knowledge and skills; and 5) restricted access to financial products and services. The GIM 2010 Report, “The MDGs: Everyone’s Business”, is referred to as a source of cases of inclusive business models and their contribution to the Millennium Development Goals.

Please click here to access the OECD/DAC website on Private Sector and Aid Effectiveness and here to download the full report.

 
Establishing a Specialty Coffee Brand by Building Capacity of Farmers and Middlemen in Indonesia: New GIM Case Study Released
Written by austine
Thursday, 11 August 2011 15:10
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About the authors

Hidemi Yoshida is an associate professor of the Hosei Graduate School of Environmental Management and the Faculty of Humanity and Environment of Hosei University in Tokyo. Her research areas include microfinance, social entrepreneurship, and poverty alleviation through CSV (Creating Shared Value). She published the Japanese Version of the GIM Report “Creating Value for All: Strategies for Doing Business with the Poor”.

Agnes Rampisela is an associate professor of the Graduate School and the Faculty of Agriculture of Hasanuddin University in Makassar, Indonesia. She got her doctoral degree in Hydrology from Kyoto University, Japan, in 1992. She further enriched her experience at the Center for South East Asian Studies of Kyoto University as Visiting Research Fellow from 1996-1997. Her research areas include farming system, agriculture and community empowerment, and poverty alleviation. She contributes as an expert to several Japanese government projects in Indonesia and also conducts series of volunteer work especially under Lembaga Pelangi, an NGO which was established in 1996 under her initiative.

About the case study

P.T. Toarco Jaya, subsidiary of Key Coffee Ltd., a large Japanese company, established a brand of specialty coffee called “Toarco Toraja” by procuring Arabica coffee from Indonesian farmers, and by running its own coffee plantation in the country. Coffee trees that can produce high quality coffee are grown in the mountainous area, where people travel on foot or on horseback. In order to facilitate the collection of coffee beans, Toarco established purchasing stations close to farmers, and leveraged local collectors. After overcoming a number of barriers, such as the lack of farmers’ knowledge and skills, P.T. Toarco Jaya is now exporting 200-500 tons of coffee beans per year, while benefiting about 7,000 small-scale farmers as suppliers, and providing 53 full time and 900 temporary jobs at its Rainforest Alliance certified plantation. Today, Arabica coffee has become a reliable source of income for farmers, and Sulawesi is well-known for its coffee.

To download the Key Coffee case study from the GIM database, please click here.

 
Providing Business Education via Distance Learning in Afghanistan: New GIM Case Study Released
Written by austine
Monday, 08 August 2011 10:19
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About the authors

Kathrin Hamm worked as Managing Director of the Afghan German Management College where she was responsible to build up the operations across Afghanistan. Under her leadership the college was distinguished by the UNESCO and formed to a profitable social enterprise, serving more than 400 Afghan students with a strong focus on women empowerment and entrepreneurship. Currently, Kathrin is a Master of Public Administration (MPA) Candidate at Columbia University’s, School of International and Public Affairs (SIPA). Kathrin graduated summa cum laude from the University of Witten/Herdecke in Germany, receiving a Master’s degree in Business Economics. Kathrin is also a European Recovery Program Fellow of the German National Academic Foundation. In addition to her academic pursuits, Kathrin has gained work experience at the World Bank Group (IFC), the Boston Consulting Group, and in US Congress’ House of Representatives. Kathrin also spent time with IBM as an International Business Consultant in South America, North America, and Europe.

Tim Lehmann is a consultant in social program replication and nonprofit management. He currently works mostly with Bertelsmann Foundation (Germany). Tim has gathered international research experience in the field of strategic social entrepreneurship and sustainable development in 25 countries in collaboration with the private and social sectors. As a research assistant at IESE Business School, Spain, he conducted research in the intersection of management science and NPO practice, leading a research team in India and moderating strategic discussions among NGO executives. As a result of this work, Tim published a conference paper on organizational forms of nonprofit expansion. An entrepreneur himself, Tim initiated and led an 8-month global study program in Africa, Asia, and Latin America with 40 social entrepreneurs such as Muhammad Yunus. Keen to inspire youth and share his learnings, he disseminated this research including life video conferencing with more than 20 schools all over Germany, a website (www.expedition-welt.de), and the publication of a co-authored book. Tim is an alumnus of oikos International – students for sustainable economics and management. Today he is still active as an alumnus, coordinating a sustainability bachelor award in German-speaking countries and designing entrepreneurship trainings for oikos students. Tim holds a Master of Science degree from Witten/Herdecke University, Germany, where he excelled summa cum laude in international economics and entrepreneurship. His master thesis about the scaling up of Aravind Eye Hospitals was awarded the highest faculty award and was co-supervised by Johanna Mair, IESE Business School. Tim also has a banking background with Deutsche Bank.

About the case study

The Afghan higher education infrastructure is unable to sustain a growing number of high school graduates preparing to transition into higher education. Currently, an estimated 600,000 students will be vying for 100,000 available spaces in colleges and universities. The Afghan German Management College (AGMC) provides access to business and entrepreneurship education via an internet based learning platform. The curriculum content for the online platform is produced by lecturers located in Germany and delivered to students in numerous provinces and remote areas of Afghanistan. The low cost internet operations allow an inclusive pricing strategy for students from low-income households. The AGMC runs on a profitable basis, has reinvested all surpluses in the future growth of its student body and provided jobs for seven full time and part time employees in Afghanistan. The four-year study program grew from 12 students in 2006 to 350 students in 2011, 22% of whom are women. Such an education is crucial in motivating young Afghans to pursue the path of entrepreneurship and thereby stimulate the local economy.

To download the AGMC case study from the GIM database, please click here.