OUT OF POVERTY Paul Polak

Roughly 200 Roughly 200 million people in million people in

the US have the US have hemorrhoidshemorrhoids

Men talk 16% Men talk 16% more on more on

cellphones than cellphones than women dowomen do

Men talk 16% Men talk 16% more on more on

cellphones than cellphones than women dowomen do

We know just We know just about everything about everything there is to know there is to know about affluent about affluent

customers customers

But we know But we know just about just about

nothing about nothing about 90% of the 90% of the

customers in the customers in the worldworld

800 million of the world’s 800 million of the world’s

1.2 billion dollar-a-day people1.2 billion dollar-a-day people

earn their living from tiny earn their living from tiny farms!farms!

Small Farms Are Very Big!

Of the word’s 525 million farms, 85% are less than 5 acres

Average farm size in Africa is 4 acres

Small Farmer Prosperity Small Farmer Prosperity is the Key to Ending is the Key to Ending

Rural PovertyRural Poverty

With Business as Usual…With Business as Usual…

The Millennium Goals on The Millennium Goals on

hunger and poverty will hunger and poverty will

nevernever be reached! be reached!

Millennium Development Millennium Development Goal Progress in Sub Goal Progress in Sub

Saharan Africa Saharan Africa 44.60% 44.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

Percentage of people in Sub-SaharanAfrica living on $1 a day, 1990

Percentage of people in Sub-SaharanAfrica living on $1 a day, 2002

The Three Great The Three Great Poverty Poverty

Eradication MythsEradication Myths

1.1. We can donate people out of We can donate people out of povertypoverty

2. We can end poverty through 2. We can end poverty through national economic growth national economic growth

3. Multinationals as they are 3. Multinationals as they are now will end povertynow will end poverty

Treadle PumpsTreadle Pumps

Example:

Treadle Pump Private Treadle Pump Private Sector Supply Chain in Sector Supply Chain in

BangladeshBangladesh

75 private sector manufacturers75 private sector manufacturers

3,000 village dealers3,000 village dealers

3-4,000 village technicians3-4,000 village technicians

A Village Dealer in A Village Dealer in BangladeshBangladesh

Village Marketing in Village Marketing in BangladeshBangladesh

Treadle Pump ImpactsTreadle Pump Impacts

2.1 million2.1 million

poor families in Asia and Africa investedpoor families in Asia and Africa invested

$50 million+$50 million+ in treadle pumps, increasing their net in treadle pumps, increasing their net

income by income by

$210 million/yr $210 million/yr forever!forever!

IDEIDE

550 staff in nine developing 550 staff in nine developing countriescountries

17 million dollar a day people 17 million dollar a day people moved out of poverty over 25 yearsmoved out of poverty over 25 years

mission- 150 million more move out mission- 150 million more move out of poverty 2025of poverty 2025

IDE’s Impact Over IDE’s Impact Over 25 Years25 Years

$78

$139

$288

0

50

100

150

200

250

300

350

Total IDE Costs 3 yr Investment by Dollar-a-Day

farmersIncrease in Net Annual Income for

Dollar-a-Day Farmers

US

Do

llars

(m

illio

ns)

12 STEPS FOR 12 STEPS FOR PRACTICAL PROBLEM PRACTICAL PROBLEM

SOLVINGSOLVING1. Go to where the action is1. Go to where the action is2. Talk to the people who have the 2. Talk to the people who have the

problem- listen to what they problem- listen to what they have to sayhave to say

3. Learn everything there is to 3. Learn everything there is to know about the specific know about the specific contextcontext

12 Practical Steps 12 Practical Steps (Cont’d)(Cont’d)

4. Think and act big4. Think and act big

5. Think like a child5. Think like a child

6. See and do the obvious6. See and do the obvious

Practical Steps Practical Steps (Cont’d)(Cont’d)

7. If somebody already invented it you don’t have to

8. Design to critical price targets 9. Design for measurable improvement

in the lives of more than a million people

Practical Steps (Cont’d)Practical Steps (Cont’d)

10. Work to practical three year plans10. Work to practical three year plans

11. Keep learning from your 11. Keep learning from your customerscustomers

12. Stay positive: don’t be distracted 12. Stay positive: don’t be distracted by what other people thinkby what other people think

D-RevD-Rev

A non-profit fomenting A non-profit fomenting a design revolution a design revolution to reach the Other to reach the Other

90%90%

IDE | Myanmar

David Klaus, Intern

Windhorse Windhorse InternationalInternational

A for-profit company fomenting a A for-profit company fomenting a revolution in how big business revolution in how big business designs, prices and markets its designs, prices and markets its

productsproducts

By earning remarkable profits By earning remarkable profits by serving the world’s poorest by serving the world’s poorest

customerscustomers

All it TakesAll it Takes

is One Person With a is One Person With a DreamDream