Development from the Bottom of the Pyramid:
An Analysis of the Development Innovation Ventures Program
Julian Leland
American Society of Mechanical Engineers
Swarthmore College
August 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?
LifeStraw Water Filter Pen
http://si.wsj.net/public/resources/images/PD-AA003_STRAW_20080616161258.jpg
Kickstart Super Moneymaker
Pump
http://www.skipumps.com/images/moneymaker-1.png
Nokero N100 Solar Bulb
http://listverse.files.wordpress.com/2010/06/nokeron100-light-bulb-small.jpg?w=196&h=350
– Leverage of existing technologies (cellphones)
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
100
1,000
10,000
100,000
1,000,000
10,000,000
Single Grant Amount, USD
USDA
NSF
USAID - DGP
Grand Challenges
– Problems
• Grants are limited in applicability
• Grant-making process is resource-intensive, inflexible
and slow
Evaluation
• Current Funding Climate: Private Funding
1,000
10,000
100,000
1,000,000
10,000,000
100,000,000
Single Grant Amount, USD
Social Entrepreneur Incubators
Social Enterprise Investors
Crowdsourced Funding Coordinators
Philanthropies
Contest Organizers
– Problems
• Not enough money at the bottom
1,000,000,000
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?