Developmental Entrepreneurship MAS.965 Development Futures

1
Developmental Entrepreneurship MAS.965Developmen
t Futures
6 December 2002 Joost Bonsen jpbonsen_at_media.mit.e
du http//web.media.mit.edu/jpbonsen/DE-2002Fall
.htm
2
TodaysAgenda

1. Last Class
2. Accomplishments
3. Further Actions
4. Developmental Innovations _at_ MIT
5. Further References
6. Final Deliverables

3
Doing Our Part in a Global Development Movement

• Global challenge never been clearer or more
  broadly known
• Development disparities within and between
  nations and peoples
• Understanding about what works growing
• Politically ripe consider Mexicos Fox, Ghanas
  Kufuor, Russias Putin

4
Accomplishments

• Live Case-Studies
• Cross-campus connections
• Over half-dozen proposed ventures
• Advancing MIT Development Efforts

5
(No Transcript)
6
Low Cost Eyeglasses
http//www.lowcosteyeglasses.net/
7
Selco

• Solar Electric

http//www.selco-intl.com/
8
GrameenPhone

• Rural Telephony
• Reselling GSM
• Fastest Growing Cellco in SAsia

Borrows 350 Earns 2/day 7,600 VillagePhones
http//www.grameenphone.com http//www.telecommons
.com/
9
Further Actions

• Extracurricular
• Wilson Awards
• SEID
• Development Club
• many others

• Research
• Digital Nations/MLA
• Sloan G-Lab
• Globalization Project
• World Economy Lab
• Global Sustainability
• Curricular
• IAP 2003 Offerings
• Spring 2003 Classes

10
How Connect with the Other Side

• w/ Business Students Focused projects tasks,
  clear end goals, think of convey at right level
  of abstraction detail
• w/ Scientists Engineers Show youre useful,
  go actively participate, build trust, observe key
  classes, go to research group meetings

11
IAP 2003 Classes
http//web.mit.edu/iap/
12
Spring 2003 Classes

• MIT http//student.mit.edu/catalog/index.cgi
• Harvard
• http//www.harvard.edu/academics/

13
Example MIT Classes on Development(Current
Historical)

• MAS.963 Development Technologies
  http//edev.media.mit.edu/class963.html
• IAP Grassroots Development Seminar
  http//www.media.mit.edu/nitin/aid/iap/
• SP746 ATF Writing Seminar http//web.mit.edu/sp.7
  46/www/home.html
• SP753 Designs for Developing Countries
  http//web.mit.edu/sp753/www/home.html
• 21A.336 Globalization Mercantilism to Microchips
  C. Walley
• 15.040 Development Macroeconomics R Rigobon
  http//web.mit.edu/rigobon/www/Cursos/DM_Syllabus
  01.html
• 17.196 Globalization S. Berger

http//web.media.mit.edu/jpbonsen/MIT-Devel-Class
es.htm
14
http//www.medialabasia.org/
http//www.medialabasia.org/
15
http//www.thinkcycle.org/
16
Influencing Accelerating MIT Development
Initiatives

• Currently fragmented
• Sponsorship critical
• Student-influence?
• Faculty commitment
• Appealing to technologists at Institute

17
GrowingResearchTheme?

• Undergrads
• Multi-school faculty
• New categories of sponsors
• Orchestrating broader MIT Research Initiatives

http//courses.media.mit.edu/2002fall/de/UROP/
18
http//web.media.mit.edu/jpbonsen/MIT-Emerging-Te
chnology-Matrix.htm
19
MIT Development Club?

• Campus-wide
• Tapping Alumni base
• Fastest-action

20
Development Difficulties Opportunities

• Social
• Political
• Infrastructural
• Cultural
• through further references

21
Systemic Challenges The Face of Poverty

• No infrastructure
• Misplaced priorities
• Subjugation of women
• No belief in better
• Struggle to simply survive
• Child medical ailments mostly treatable

22
Dornbuschs Paradox of Globalization

1. Workers face worldwide competition
2. More financial accidents, more visible
3. Statist protections removed, lowered impression
   of security
4. Disturbance anywhere felt everywhere
5. Future shock change outstrips ability to cope

23
Government Incompetence amid Unrivaled Prosperity

• Difficulty of defending sound currency
• Temptation of protectionism
• Desire for Third Way challenging
• Unfinished revolutions
• Mixed role of international institutions

24
Disrespect of Indigenous Institutions

• Informal credit-rating by association
• Functional illiteracy
• Difficulty tapping community support or social
  capital nets
• Trust and friendship bonds
• Criminalized market activities

25
Inefficient Criminalized Informal Economy

• Substantial Inefficiencies
• Tax exemption
• Bureaucratic hurdles to formality
• Year in time
• Years wages in fees

http//www.ild.org.pe/ http//www.economictimes.co
m/280401/28edit04.htm
26
Tragedy of the Commons Illiquid Assets

• Title to otherwise Dead Capital
• Assets owned but not formally
• Cant sell
• Trillions of US globally
• Recent Russian news

27
Nation Building Difficult

• Wealth Inequalities
• Ethnic strife
• Ownership stakes
• Health care system confidence
• Personal Incentives crucial

28
Botched Privatizations

• Privatizing the historic commons to benefit of
  few
• Structural inefficiencies
• Lack of institutions
• Popular Ignorance
• PEMEX dilemma

http//www.gazprom.ru/
29
Microfinance v Macrofinance I

• Financial services for poorest of poor
• Very difficult
• Credit only or broader?
• Avoiding driving poor further into debt

30
Microfinance v Macrofinance II

• Poor countries quarter trillion in debt
• Servicing cost exceed social investments
• Structural trauma, hamfisted adjustments

31
Culture Counts

• Ability to adapt is a function of culture
• Virtues of peoples crucial
• Work, thrift, honesty, patience, tenacity
• Wealth gulf may persist

32
Geography Counts

• Positive feedback loop of
• farming ? domesticated animals ? population ?
  innovation capacity
• Environmental factors dominate

33
Grassroots Globalization

• Groundswell emerging from below
• Personal aspirations
• Whatever youve got, sell it, trade it, do
  something to improve your standard of living

34
Balancing Free Market Innovation with Fair
Equal Opportunity

• Engine of inequality is creative force
• Inequalities transient

35
Final Deliverables

• Individual Team Feedback
• Small write up, paragraph or two
• Reflect on process this time, what worked,
  didnt, what you liked
• Highlight any improvements for next time,
  including thinking outside of box.
• Send to jpbonsen_at_mit.edu