Out of Poverty

Promotional copy 9/19/2013. Not for resale or redistribution.
Morc Praisc for Out of Poverty

rawing on his own rsthand cxpcricnccs and inpcrson obscrvations,
Paul Polaks book gocs straight to thc hcart ol thc mattcr and ocrs
howto advicc on wiping out global povcrty, onc lamily and onc pcrson
at a timc. Hall thc pcoplc on arth livc on lcss than lour dollars a
daythc rcst ol us should rcad this book.
David M. Kcllcy, Foundcr and Chairman, IDEO, and Donald W. Whitticr
Profcssor in Mcchanical Enginccring, Stanford Univcrsity
Paul Polak listcns to pcoplc lcw ol us cvcr hcar lromthc worlds
poor oncacrc larmcrsand comcs up with simplc, practical solutions
lor hclping thcm bcttcr thcir livcs. His work is proloundly inspiring.
vcn il you dont normally rcad books about dcvclopmcnt and povcrty,
rcad this onc!
Iori Pottingcr, Dircctor of Africa Programs, Intcrnational Rivcrs
Vith pcrsonal anccdotcs and cld cxpcricnccs, Paul Polak sharcs thc
philosophics that havc madc ! onc ol thc most succcsslul organiza
tions in providing lilcchanging tcchnologics to pcoplc in thc dcvclop
ing world. Pauls joie de vivre, his commitmcnt to climinating povcrty,
and his pragmatic irrcvcrcncc arc all capturcd in his book.
Amy Smith, Scnior Iccturcr, Dcpartmcnt of Mcchanical
Enginccring, MIT
\icwing thc poor as passivc rccipicnts ol assistancc has wastcd billions
ol dollars. Topdown, bailout subsidy programs dont work. As Paul cx
plains, wc nccd to partncr with thc dcvcloping world and providc tools
and tcchnologics to givc thcm an opportunity to hclp thcmsclvcs.
Shrikrishna Upadhyay, Foundcr, SAPPROS, Ncpal
Paul Polak dclivcrs a rclrcshing dosc ol common scnsc to thc qucstion
ol how bcst to hclp thc worlds poorcst citizcns, thc common scnsc
bornc ol a lilctimc ol handson cxpcricncc. !t scrvcs as a howto manual
lor Stanlords coursc on csign lor xtrcmc Aordability.
Jamcs M. Patcll, Hcrbcrt Hoovcr Profcssor of Public and Privatc
Managcmcnt, Graduatc School of Busincss, Stanford Univcrsity
Paul Polak is passionatc about thc allcviation ol povcrty. This book
prcscnts numcrous casc studics dcmonstrating that ccctivc programs
to raisc thc incomcs ol poor pcoplc must start with an cort to undcr
stand and involvc poor pcoplc in thc cnvironmcnts in which thcy nd
thcmsclvcs.
Vcrnon W. Ruttan, Rcgcnts Profcssor Emcritus, Dcpartmcnts of
Economics and Applicd Economics, Univcrsity of Minncsota
Paul Polaks provocativc and compclling story ol how smart tcchno
logical tools can cmpowcr poor cntrcprcncurs to crcatc thcir own
wcalth will disgruntlc somc dcvotccs ol old dcvclopmcnt. Lct thcm
gct rcgruntlcd and noticc what works.
Amory B. Iovins, Chairman and Chicf Scicntist, Rocky Mountain
Institutc
Out of Poverty is an unputdownablc rccord ol Polaks succcss with
tinyscalc larmcrs, cmbcddcd with workablc rulcs lor dcsigning, scaling
up, and distributing aordablc innovations to thc poor. !t makcs a
clcar dcclaration: Povcrty can bc cndcd il busincss, govcrnmcnt, and
dcvclopmcnt agcncics lcarn thcsc lcssons.
Michacl Iipton, Rcscarch Profcssor, Povcrty Rcscarch Unit, Univcrsity
of Susscx
Pauls idcas havc hclpcd bring millions ol pcoplc out ol povcrty, and,
along thc way, hc has ignitcd a dcsign rcvolution that ocrs us all a
bright ncw way to look at thc world.
Michacl Cronan, Cronan Dcsign
Paul Polaks insights opcn ncw vistas in dcsign discovcry. Out of Poverty
is onc ol thc clcarcst dcscriptions ol how dcsign has a prolound impact
on thc cyclc ol povcrty and rcally changcs thc world.
Yvcs Bchar, Prcsidcnt and Crcativc Dircctor, fuscprojcct, and Chair of
Industrial Dcsign, California Collcgc of thc Arts
Paul Polaks mcthod works bccausc it harncsscs thc powcr ol dcsign
thinking, lowcost tcchnology, and human cntcrprisc to crcatc sustain
ablc communitics ol tradc. Pauls rcmarkablc work has climinatcd
povcrty and rcstorcd dignity to millions ol lamilics.
Ann Willoughby, Prcsidcnt and Crcativc Dircctor, Willoughby Dcsign
Group
%
ou1 or rovcr1v
This page intentionally left blank
Out o Povcrty
WHAT WORKS WHEN TRADITIONAL APPROACHES FAIL
Paul Polak
BK
BerrettKoehler Publishers, Inc
San Francisco
a BK Currents book
Copyright acc by Paul Polak
All rights reserved. No part of this publication may be reproduced, distributed, or transmit-
ted in any form or by any means, including photocopying, recording, or other electronic or
mechanical methods, without the prior written permission of the publisher, except in the
case of brief quotations embodied in critical reviews and certain other noncommercial uses
permitted by copyright law. For permission requests, write to the publisher, addressed
Attention: Permissions Coordinator, at the address below.
Berrett-Koehler Publishers, Inc.
a Montgomery Street, Suite 6c, San Francisco, CA .ca.6
Tel: (.) aca6c Fax: (.) 6aa.a www.bkconnection.com
ovuvvixc ixvov:~:iox
Quantity sales. Special discounts are available on quantity purchases by corporations, asso-
ciations, and others. For details, contact the Special Sales Department at the Berrett-
Koehler address above.
Individual sales. Berrett-Koehler publications are available through most bookstores. They
can also be ordered directly from Berrett-Koehler: Tel: (cc) aaa; Fax: (ca) 6,6a6;
www.bkconnection.com
Orders for college textbook/course adoption use. Please contact Berrett-Koehler:
Tel: (cc) aaa; Fax: (ca) 6,6a6.
Orders by U.S. trade bookstores and wholesalers. Please contact Ingram Publisher Services,
Tel: (cc) c,; Fax: (cc) ..; E-mail: customer.service@ingrampublisherservices
.com; or visit www.ingrampublisherservices.com/Ordering for details about electronic
ordering.
Berrett-Koehler and the BK logo are registered trademarks of Berrett-Koehler Publishers, Inc.
Printed in the United States of America
Berrett-Koehler books are printed on long-lasting acid-free paper. When it is available, we
choose paper that has been manufactured by environmentally responsible processes. These
may include using trees grown in sustainable forests, incorporating recycled paper, mini-
mizing chlorine in bleaching, or recycling the energy produced at the paper mill.
iinv~vv ov coxcvvss c~:~iocixcixvuniic~:iox u~:~
Polak, Paul.
Out of poverty : what works when traditional approaches fail / Paul Polak.
p. cm.
Includes bibliographical references.
isnx ,.,6, (hardcover: alk. paper)
1. Poverty. I. Title.
nc,.v6v66 acc
6a.'6dc22 acc,c.,
First Edition
.a .. .c c c .c , 6 a .
PDF E-book isnx ,.,6,
Photo on cover and page .,c: Keren Su/Corbis. All other photos Paul Polak, IDE
Book design and production management by Valerie Brewster, Scribe Typography.
Copyediting by Don Roberts. Proofreading by Don Roberts and Sarah Muirhead.
Indexing by Rachel Rice: Directions Unlimited. Cover design by PemaStudio.
%
For my wilc, Aggic, my daughtcrs Amy, Kathryn, and Laura
and lor smallacrcagc larmcrs likc Krishna 8ahadur Thapa who put
music into thc words
vii
coNf=Nfs
Preface ix
!ntroduction: Lcarning to o thc Simplc and bvious .
Twclvc Stcps to Practical Problcm Solving .
a Thc Thrcc Grcat Povcrty radication Myths a,
!t All Starts with Making Morc Moncy .
q csign lor thc thcr c Pcrccnt 6
From Subsistcncc to Ncw !ncomc
Aordablc SmallPlot !rrigation
) A Ncw Agriculturc lor ncAcrc Farms ..
8 Crcating \ibrant Ncw Markcts That Scrvc
Poor Customcrs .,
Slums Thc !ncubator lor Ncw !ncomc pportunitics .
o Povcrty and thc Planct .,.
Taking Action to nd Povcrty .
a 8ahadur and His Family Movc ut ol Povcrty ac.
Notes a.
Resources a.,
Acknowledgments a.
Index aa.
About the Author ac
About IDE a.
v=rtc=
My ltccnmonthold grandson, than, has lallcn in lovc with a
ncighbors drivcway. !t sits two houscs down lrom whcrc hc livcs in
Scbastopol, Calilornia, and it sccms to ovcrow with small, multi
colorcd stoncs. Hc stops thcrc whcn ! takc him lor a walk, and thcn hc
rcluscs to lcavc. Hc picks up a handlul ol stoncs and inspccts cach onc
carclully. Hc placcs thcm onc altcr anothcr in my hand, watching in
tcntly, and ! givc thcm back to him onc by onc until his hand is lull
again. ! dont know who has givcn him thc job ol turning cvcry littlc
stonc ovcr and ovcr in his hand until hc undcrstands its vcry csscncc,
but thats thc job hc has acccptcd, and hcs not lcaving until its donc.
Hc plops down on his butt and cus thc stoncs into a pilc, looks at mc,
and knocks it down and gigglcs. Hc can kccp this up lor hours, and il !
pick him up to takc him homc, hc crics. His playlul curiosity is inlcctious,
and ! think ! must havc inhcritcd a lot ol gcncs lrom than, bccausc
! opcratc just as hc docs. ! livc to play and to satisly my curiosity.
For thc past twcntyvc ycars, two qucstions havc kcpt my curiosity
arouscd: Vhat makcs poor pcoplc poor: And what can thcy do about
thcir povcrty:
8ccausc ol thcsc inlcrnal qucstions, !vc dozcd o during hundrcds
ol long jccp ridcs with good companions ovcr dusty, potholcd roads.
!vc had thousands ol convcrsations with oncacrc larmcrs with dirt on
thcir hands. Vcvc walkcd along thcir patchcs ol tcnloothigh black
pcppcr vincs in thc ccntral hills ol \ictnam bcsidc junglc pcrmancntly
scarrcd by Agcnt rangc. Vcvc strollcd togcthcr through thcir scat
tcrcd quartcracrc plots in thc drab brown wintcr plains ol thc Gangctic
dclta in Uttar Pradcsh, and thcy havc ocrcd mc morc cups ol stcaming
tca than my scvcntythrccycarold kidncys can takc. ! lovc discovcring
ncw things lrom pcoplc nobody clsc cvcr sccms to listcn to, and ! lovc
talking thcm into trying out somc ol thc crazy idcas that wc comc up
with togcthcr. ! havc lcarncd morc lrom talking with thcsc poor larm
crs than lrom any othcr thing ! havc donc in my lilc.
ix
This book will tcll thcir story and dcscribc somc ol thc things thcsc
pcoplc havc taught mc. !t will tcll thc story ol Krishna 8ahadur Thapa
and his lamily, and ol how thcy movcd lrom barcly surviving on lcss
than a dollar a day to carning lortycight hundrcd dollars a ycar lrom
thcir twoacrc larm in thc hills ol Ncpal. ! tcll many storics likc 8aha
durs in this book, and ! hopc that cach onc ol thcm satiscs anothcr
small bit ol your curiosity about how pcoplc who arc cxtrcmcly poor
livc thcir livcs and drcam thcir drcams. 8cst ol all, what ! lcarncd lrom
thcsc pcoplc has bccn put to work in straightlorward stratcgics that
millions ol othcr poor pcoplc havc uscd to cnd thcir povcrty lorcvcr.
ach ol thc practical solutions to povcrty ! dcscribc is obvious and
dircct. For cxamplc, sincc cc million ol thc pcoplc whosc lamilics
survivc on lcss than a dollar a day carn thcir living lrom small larms,
why not start by looking lor ways thcy can makc morc moncy lrom
larming: And sincc thcsc larmcrs work lor lcss than a dollar a day,
why not look lor ways thcy can takc advantagc ol thcir rcmarkably low
labor ratcs by growing highvaluc, laborintcnsivc cash crops and scll
ing thcm at thc timc ol ycar whcn thcsc crops will lctch thc highcst
priccs: !l it is truc that common scnsc is not rcally common, and that
sccing and doing thc obvious arc cvcn lcss so, thcn somc ol thc conclu
sions ! draw lrom my convcrsations with poor pcoplc will surprisc you:
thcy ccrtainly y in thc lacc ol convcntional thcory and practicc in thc
dcvclopmcnt cld.
! hatc books about povcrty that makc you lccl guilty, as wcll as dry,
acadcmic oncs that put you to slccp. Vorking to allcviatc povcrty is a
livcly, cxciting cld capablc ol gcncrating ncw hopc and inspiration,
not lcclings ol gloom and doom. Lcarning thc truth about povcrty
gcncratcs disruptivc innovations capablc ol cnriching thc livcs ol rich
pcoplc cvcn morc than thosc ol poor pcoplc.
Thc rst scction ol thc book cxplains how ! bccamc curious about
povcrty, dcscribcs thc proccss ! lcarncd lor nding crcativc solutions to
just about any major social problcm, and challcngcs thc thrcc grcat
povcrty cradication myths that havc inhibitcd doing thc obvious to
cnd povcrty.
Thc ncxt scction, Chaptcrs to , dcscribcs what many smallacrcagc
larmcrs havc taught mc, a practical approach capablc ol cnding thc
povcrty ol somc cc million ol thc worlds dollaraday pcoplc. For
OuL o PovcrLy
x
poor pcoplc thcmsclvcs, thcrc is littlc doubt that thc singlc most
important stcp thcy can takc to movc out ol povcrty is to lcarn how to
makc morc moncy. Thc way to do it is through grassroots cntcrpriscs
just about all ol thc poor arc alrcady tough, stubborn, survival cntrc
prcncurs and thcy havc to nd ways to makc thcir cntcrpriscs morc
protablc. For smalllarm cntcrpriscs, thc path to ncw wcalth lics in
growing markctccntcrcd, highvaluc, laborintcnsivc cash crops. To
accomplish this, poor larmcrs nccd acccss to aordablc irrigation, a
ncw gcncration ol larming mcthods and inputs customizcd to t tiny
larms, thc crcation ol vibrant ncw markcts that bring thcm thc sccds
and lcrtilizcrs thcy nccd, and opcn acccss to markcts whcrc small
acrcagc larmcrs can scll thcir products at a prot. This rangc ol ncw
products and scrviccs lor poor customcrs can only bc crcatcd by a
rcvolution in currcnt dcsign practicc, bascd on thc ruthlcss pursuit ol
aordability. Chaptcr dcscribcs how thc principlcs discusscd in thc
carlicr chaptcrs can bc applicd to hclping poor pcoplc living in urban
slums and on thc sidcwalks ol citics in dcvcloping countrics.
!n thc wrapup scction, Chaptcr .c dcscribcs thc ccntral rolc
povcrty plays in most ol thc problcms lacing planct arth, Chaptcr ..
dcscribcs what donors, govcrnmcnts, univcrsitics, rcscarch institutions,
and thc rcst ol us can do to cnd povcrty, and Chaptcr .a tclls how
8ahadur and his lamily nally movcd out ol povcrty.
My hopc is that you will comc away lrom rcading this book cncrgizcd
and inspircd. Thcrc is much to bc donc.
Prcacc
xi
Paul Polak talks with Deu Bahadur Thapa and Bhimsen
Gurung in Ekle Phant village, Nepal.
i w~s :wvivv vv~vs oiu wnvx i iv~vxvu i couiu :~xv vivv
ccnts a quart picking strawbcrrics. So whcn strawbcrrypicking scason
rollcd around in midJunc ., my lricnds and ! got prctty good at it.
8clorc thc scason was ovcr, ! pickcd two hundrcd quarts in onc day
and camc homc with tcn dollars in my pockct. This got mc to thinking.
!l ! can makc tcn bucks a day picking strawbcrrics, ! said, just
imaginc what thc owncr ol thc cld is making. ! dccidcd thcn and
thcrc to go into thc strawbcrry busincss.
So at thc agc ol ltccn, ! convinccd two local larmcrs to bc my
partncrs. Morlcy Lcathcrdalc had a job in town and raiscd trotting
horscs in his sparc timc. Hc had a nicc, rolling, loamy thrcc acrcs
bchind his housc that hc was willing to contributc to thc strawbcrry
busincss. d Cummins had inhcritcd onchundrcdandsixty acrcs ol
nc larmland lrom his lathcr, along with a largc \ictorian rcd brick
housc that lookcd likc a castlc to mc. Hc contributcd a bcautilul lour
acrc piccc ol sandy, lcrtilc soil at thc back ol his larm.
Icarning to
Lo thc Simplc
and Obvious
iN1robuc1ioN
:
OuL o PovcrLy
Thc rst stcp was putting a thick laycr ol manurc on both clds.
d had a barn with twcnty milk cows, his cup ol manurc was running
ovcr. nc spring morning, d and ! hitchcd his tcam ol horscs to thc
manurc sprcadcr and startcd throwing manurc into it with pitchlorks.
d spit on his hands and pitchcd lorklul altcr lorklul at a slow but
stcady pacc. Hc was closc to sixty and ! was in vcry good shapc, so !
kncw this would bc a good opportunity to show him up.
This will bc a brcczc, ! thought, as ! pitchcd manurc at a torrid
pacc. ! outstrippcd d casily lor hall an hour, but in thc sccond hall
hour hc sccmcd to bc catching up. 8y thc cnd ol two hours, thc
sprcadcr lull, d had mc bcat by a milc. Vorsc still, hc had hardly bro
kcn a swcat whilc ! was swcating likc a pig, rcady to lic down and dic.
Vhcn thc loadcr was lull, wc ran it out to thc cld. d pullcd on a
long, rusty, rcd gcar handlc that activatcd thc chainandratchct mcch
anism conncctcd to thc rcar axlc, gradually lccding thc manurc into a
rapidly rotating horizontal column ol spikcs at thc back. Stcam rosc
lrom thc horscs backs in thc carly morning sun, and clods ol cow ma
nurc cw wildly ovcr thc cld. Vc covcrcd thc whcatstubblc surlacc
ol that cld with morc loads than ! can rcmcmbcr. 8y thc cnd ol thc
day, ! was cxhaustcd. Thc ncxt morning wc did it all ovcr again. d
thcn plowcd thc whcat stubblc and manurc undcr, and lcvclcd thc cld
with a harrow so it was rcady lor thc plantcr.
Somcbody loancd us a doublcrow horscdrawn plantcr ! dont
think you can nd onc anywhcrc now cxccpt in a muscum. !t had a
tiny plow in lront which opcncd up a sixinchdccp lurrow, and two
springbascd round mctal scats at thc back whcrc Morlcy and !
pcrchcd our bums prccariously closc to thc carth as thc contraption
draggcd along. Vith my right hand, ! pickcd up a sccdling lrom thc
at in lront ol mc and backhandcd it down into thc lurrow. As il my
mirror imagc, Morlcy did thc samc lrom thc right scat. Vc altcrnatcd
all day likc two playcrs in a ncvcrcnding, slow tcnnis match. As soon
as wc placcd a plant in thc lurrow, thc plantcr gavc it a squirt ol watcr
lrom an ovcrhcad tank, thcn two rollcrs trailing along bchind closcd
thc lurrow. !t took us a day and a hall to plant scvcnandahall acrcs.
My biggcst challcngc altcr planting was to gct rid ol all thc ragwccd,
pigwccd, and clumps ol grass that appcarcd out ol nowhcrc to com
pctc with my strawbcrry plants. My main accomplicc in this gcnocidal
InLroducLion
attack on all wccds was an old horsc namcd ick, who had a bad gas
problcm and who pullcd a sixtincd cultivator. ! grcw to lovc thc pun
gcnt smcll ol horsc swcat mixcd with thc hcatcd lcathcr ol icks har
ncss. Thc trick lor mc was to wcavc thc cultivator in and out bctwccn
thc plants without uprooting thcm. This cut down on thc hocing timc.
Cultivating turncd out to bc a much casicr job than hocing. ! could
covcr a lot ol ground with a last slicing motion that just misscd thc
strawbcrry plants. 8ut hocing a louracrc strawbcrry cld took scvcral
days, and by thc timc ! rcachcd thc cnd ol thc last row, it was timc to
start again. ! lcarncd thcn what lcgions ol larmcrs havc always known:
thc cvcryday work ol larming is cxcruciatingly boring.
At thc cnd ol that rst ycar, thc strawbcrry clds lookcd good. 8ut
unlikc prcvious ycars whcn ! had cash in my pockct lrom picking, !
was scriously in thc holc. Maybc bcing an owncr didnt bring as much
ol a bonanza as ! thought it would.
Vhcn harvcsttimc camc in Junc ol thc lollowing ycar, ! borrowcd
my lathcrs twoton truck and showcd up at undurn Castlc in
Hamilton at quartcr to six cach morning to pick up a motlcy crcw ol
stout Ukrainian womcn rcady to pick strawbcrrics. ! paid thcm vc
ccnts a quart. ! was in busincss.
8ut rst ! had to nd a placc to scll my crop.
Thc biggcst groccry storc chain in Hamilton thcn was Loblaws,
which is still Canadas biggcst supcrmarkct chain and lood distributor.
! wcnt to thc back cntrancc ol thc biggcst Loblaws storc in town, and
askcd to talk to thc producc managcr. ! told him ! had scvcnanda
hall acrcs ol lrcsh strawbcrrics to scll.
How much: hc askcd. Vc struck a dcal on thc spot lor twcnty
vc ccnts a quart. From that day on ! was thc main strawbcrry supplicr
lor Loblaws, and providcd strawbcrrics lor about hall thc onc hundrcd
ninctyvc thousand pcoplc who livcd in Hamilton.
8y thc sccond wcck ol July, it was timc to gurc out il ! had madc a
prot on my strawbcrry vcnturc. Altcr all thc cxpcnscs and thc loans
to my lathcr wcrc paid, thcrc was lourtccn hundrcd dollars lclt on thc
tablc to split with my partncrs. ! had carncd scvcn hundrcd dollars lor
two summcrs work, cquivalcnt to about scvcn thousand in todays
dollars. This was not a lortunc, but at thc timc, it sccmcd a lot to mc.
!s this a Horatio Algcr story: Vas it thc rst stcp in cstablishing a
OuL o PovcrLy
prospcrous strawbcrry cmpirc: Vas ! dcstincd to bccomc thc straw
bcrry king ol ntario and livc happily cvcr altcr: !m alraid not. Altcr
all, ! was only sixtccn, and ! bcgan to bc morc intcrcstcd in girls, ball
room dancing, and playing third basc on thc Millgrovc soltball tcam.
So ! took thc moncy and ran.
8ut now, ltyscvcn ycars latcr, ! rcalizc that my two ycars in thc
strawbcrry busincss gavc mc a dccp apprcciation ol what it takcs to
run a small larm and makc moncy doing it. This is at thc vcry hcart
ol my qucst to nd practical solutions to rural povcrty ovcr thc past
twcntyvc ycars. Thc challcngcs, opportunitics, and hard work !
cxpcricnccd in thc strawbcrry busincss mirror thc challcngcs oncacrc
larmcrs lacc cvcry day as thcy try to makc a living lrom thcir scattcrcd
quartcracrc plots.
And, ol coursc, ! rcalizc now that ! was practicing organic larming
bclorc it had a namc.
! did just about all thc work myscll on thosc scvcnandahall acrcs
ol strawbcrrics, but ! had acccss to horscdrawn plows, cultivators, and
manurc sprcadcrs a big advantagc ovcr most ol thc poor smallplot
larmcrs in Alrica now who, with no acccss to animal powcr, must plow,
cultivatc, and hoc by hand. Most ol thc worlds poor smallacrcagc
larmcrs rcmain lar bchind thc animaldrawn lcvcl ol mcchanization
! uscd on a small larm in Canada almost sixty ycars ago.
! lcarncd a lcw othcr important things.
Although it was prctty hard lor mc to admit thcn, ! lcarncd that !
couldnt go lar in lilc without asking lor hclp and gctting it.
! lcarncd that you can makc a lot ol moncy lrom a vcry small larm
il you lcarn how to grow valuablc crops, il you can nd a markct whcrc
you can scll thcm at a prot, il you havc a good sourcc lor aordablc
plants and lcrtilizcr, and il your crops dont gct wipcd out by discascs
and pcsts.
! lcarncd that lcarning ncw things cvcry day brought mc morc
plcasurc and happincss than anything clsc ! could do with my lilc.
! lcarncd that thc sun, wind, rain, and black root rot wcrc prctty
much bcyond my control. ! bcgan to lcarn that giving up illusions ol
control might allow mc to makc a dicrcncc in thc world lar grcatcr
than that ol which any King ol Strawbcrrics can drcam.
InLroducLion
!t took thirty ycars lor mc to gct involvcd in larming again. !n thc
mcantimc ! wcnt to mcdical school, got marricd, bccamc a psychiatrist,
and ran busincsscs in rcal cstatc and in oil and gas. !t was in .. that !
bccamc intrigucd again with larming. This timc, howcvcr, it was radi
cally miniaturizcd handtool vcrsions ol larming, comparcd with thc
scvcnacrc strawbcrry larm ! had rcigncd ovcr. Now ! bcgan to lcarn
cvcrything ! could about thc oncacrc larms whcrc cc million vcry
poor pcoplc in thc world had lcarncd to survivc on lcss than a dollar a
day. That was thc start ol my qucst to nd ways thcy could carn much
morc lrom thcir tiny larms.
Many pcoplc ask mc to cxplain why ! stoppcd bcing a psychiatrist
and changcd ovcr to working on povcrty. 8ut ! dont rcally scc it as a
changc. 8ccausc povcrty plays such a critical rolc in thc incidcncc and
prcvalcncc ol all lorms ol illncss, ! havc always bclicvcd that lcarning
about povcrty and what can bc donc to cnd it should bc a basic scicncc
in cvcry mcdical school and psychiatrictraining curriculum. Thirty
ycars ago, ! bccamc convinccd that thc most signicant positivc impact
! could havc on world hcalth was to work on nding ways to cnd povcrty.
! wish ! could say that my work on povcrty ovcr thc past twcnty
vc ycars has lollowcd a carclully thoughtout plan, but it was much
morc a proccss ol jumping on opportunitics that appcarcd uncxpcct
cdly and thcn lcarning lrom cach cxpcricncc. l coursc, pcoplc makc
thcir own opportunitics, and thcrc was a strong clcmcnt ol that too. !n
my work as a psychiatrist, ! discovcrcd carly on that ! could lcarn morc
about thc scriously mcntally ill paticnts ! was trying to hclp il ! talkcd
to thcm in thcir homcs or thcir placcs ol work, and il ! listcncd to
what thcy had to say.
nc ol thc pcoplc ! lcarncd most lrom was Joc, who was both
mcntally ill and poor. Vhcn ! bccamc intrigucd with thc problcm ol
homclcssncss, Maryannc Glcason, a lricnd who ran thc Stout Strcct
Clinic, which providcd mcdical trcatmcnt lor homclcss pcoplc in cn
vcr, introduccd mc to Joc, who had livcd on thc strcct lor morc than
tcn ycars, and hc and ! spcnt a day togcthcr. 8y thc cnd ol thc day, !
was stunncd by how much ! had lcarncd. 8ut it wouldnt havc hap
pcncd cxccpt that ! approachcd lcarning about homclcssncss through
thrcc contrarian stcps.
6
OuL o PovcrLy
First, instcad ol intcrvicwing Joc in my occ, ! talkcd to him in thc
thrccloothigh spacc whcrc hc livcd undcr a loading dock by thc
railroad tracks.
Sccond, ! locuscd on lcarning about homclcssncss through Jocs
cycs, instcad ol assuming ! kncw a lot about thc subjcct alrcady bc
causc ! was a psychiatrist.
Third, ! askcd Joc to takc mc to thc placcs whcrc hc livcd his lilc,
and ! askcd him cvcry dctail ! could think ol about cach ol thcm. Vc
wcnt togcthcr to thc liquor storc whcrc hc bought his bccr and rotgut
brandy, thc railroad station whcrc hc storcd his stu in a lockcr, thc
outdoor rool undcr which hc and his lricnds cookcd thcir mcals in a
discardcd charcoal grill, and to his homc undcr a loading dock whcrc
hc rcad books whilc tuckcd into his donatcd lortybclowzcro slccping
bag bclorc hc turncd o his lantcrn and wcnt to slccp.
Maryannc sct mc up to mcct Joc at a soup kitchcn, whcrc ! was
surpriscd to lcarn that hc was onc ol thcir most rcliablc voluntccrs. !
was drcsscd in ski clothcs bccausc it was a snowy day in cccmbcr,
and as soon as hc saw mc, Joc pilcd a whitc brcad baloncy sandwich
and a bowl ol soup on a dcprcssing, industrial brown plastic tray and
handcd it to mc. ! was cmbarrasscd. ! said ! had alrcady had lunch, cx
plaincd who ! was, and askcd il ! could spcnd thc altcrnoon with him.
Surc, doc, hc said, il you dont mind waiting till !m donc with
my shilt.
So ! rcad a book lor hall an hour till hc was rcady to go.
! scc you got a vidco camcra, doc, hc said. Fccl lrcc to usc it.
ur rst stop was thc railroad station.
Thc rst thing you nccd whcn yourc homclcss is a salc placc to
storc your stu, said Joc. Thc train station lockcrs cost , ccnts lor
twcntylour hours, and thats a hcll ol a lot bcttcr than thc bus station
ripo. Thcrc, thcy say it costs , ccnts, but il you comc back an hour
latcr, thc mctcr says sa.c, and you can arguc till yourc bluc in thc lacc,
and you still havc to pay sa.c to gct your stu back.
Hc droppcd thrcc quartcrs in thc slot and pullcd a bcdroll and
thrcc bulging supcrmarkct plastic bags out ol his lockcr. ! shot somc
lootagc ol him pulling a can ol pipc tobacco, sparc socks, clcan undcr
wcar, and a pint bottlc ol pcppcrmint schnapps lrom onc ol his bags
,
InLroducLion
to show mc. His bcdroll was a hcavy wool blankct tightly cinchcd with
two lcathcr bclts around a goodquality, lortybclowzcro slccping bag.
!t was snowing slightly as wc trudgcd along thc railroad tracks
north ol Union Station. Joc walkcd a littlc hunchcd ovcr, with his lcct
slapping down into thc snow onc altcr thc othcr. At thc agc ol lorty
vc, with a lull, trimmcd black bcard lramcd by a tightly tting bluc
wool cap and wcaring a paddcd rcd ski jackct drooping ovcr a pair ol
clcan but ladcd bluc jcans tuckcd into lcathcr hiking boots, hc lookcd
morc likc a ruggcd urban pionccr than a strcct bum. Thc third plastic
shopping bag hc was carrying containcd a thcrmos ol hot soup lor his
lricnd Chris, who had lrostbittcn tocs and livcd in a loading dock a
quartcr milc lrom Jocs. So wc dclivcrcd Chriss soup and thcn wc wcrc
o to Jocs homc.
Thc cntry to Jocs homc undcr thc loading dock was complctcly
scalcd o by thrcc shccts ol hcavy black plastic, wcightcd down at thc
top by two big blocks ol wood and at thc bottom by thrcc hcavy rocks.
Joc livcd in an cightbytcnloot spacc a littlc ovcr thrcc lcct high!
lound that insidc ! could movc likc a crab il ! staycd on my lcct. 8ut it
was much casicr moving around on my hands and knccs. Thc oor
was covcrcd by a discardcd carpct givcn to Joc by his rail yard workcr
lricnds, and a robust battcrypowcrcd lantcrn was suspcndcd lrom a
stccl scrcw in thc rcd brick wall at thc back ol thc loading dock. Joc
said hc hung around with his lricnds in thc altcrnoons, and altcr sup
pcr hc climbcd into his slccping bag and rcad a book until hc lclt likc
going to slccp.
Vc wcnt to thc Vhitc Spot Cal to talk. Vc drank a couplc ol
cups ol cocc whilc ! ran thc vidco camcra. Joc lclt homc whcn hc was
lourtccn and startcd living on thc strccts. Hc joincd thc marincs whcn
hc was scvcntccn, but wcnt o thc dccp cnd and did thc rounds ol
psych wards in \A hospitals lor scvcn months, rcccivcd a mcdical dis
chargc, and hit thc strccts again. Fivc ycars ago hc had riddcn thc rails
to cnvcr, and thats whcrc hc had livcd till now. From timc to timc,
hc bccamc dcprcsscd, and whcn that happcncd, hc wcnt on mcdication
providcd by Stout Strcct Clinic.
! dont likc homclcss shcltcrs, hc told mc. !vc bccn to JcsusSavcs
only thrcc timcs in thc last vc ycars, and that was during my rst month
8
OuL o PovcrLy
in cnvcr. !ts not right. You havc to listcn to two hours ol carbanging
by a prcachcr just to gct onc lousy lrcc mcal. !d rathcr slccp out.
Joc livcd on an incomc ol about vc hundrcd dollars a month.
Somctimcs hc collcctcd aluminum bccr cans that hc cashcd in at thc
rccycling ccntcr. Hc and a lot ol his lricnds sold plasma at thc blood
bank. You wcrc only supposcd to do it oncc a month, but Joc oltcn did
it two or thrcc timcs a wcck. Hc collcctcd an occasional \A disability
chcck, but morc oltcn than not, hc didnt gct it bccausc hc didnt havc
a lcgitimatc addrcss whcrc it could bc scnt.
Hc could gct a room in a cabag hotcl lor two hundrcd dollars a
month, but prclcrrcd to havc somc moncy lor drinks and lun and slccp
out. !n his shocs, ! think ! would havc donc thc samc.
8y thc timc Joc and ! partcd company, my hcad was spinning with
idcas. Thrcc thousand homclcss pcoplc in cnvcr cach spcnding scc
a month rcprcscntcd buying powcr ol s.. million a month, a pcrlcct
opportunity to start grassroots busincsscs to scrvc thc nccds ol thc
homclcss. For cxamplc, why wouldnt homclcss pcoplc bc cnthusiastic
customcrs lor a sccurc storagclockcr cntcrprisc owncd and managcd
by othcr homclcss pcoplc: Sincc many ol thc homclcss smokcd, why
couldnt onc or two ol thcm gct somc tobacco, cigarcttc papcrs, and a
cigarcttcrolling machinc, and start sclling cigarcttcs: !l so many ol
thc homclcss got mcdications paid lor by thc statc at Stout Strcct
Clinic, why wouldnt it bc possiblc to sct up a paticntowncd phar
macy: (ick Varncr and ! organizcd onc in 8ouldcr a ycar latcr, and
its now making a prot ol s.cc,ccc a ycar.)
Vhat my altcrnoon with Joc conrmcd lor mc is that coming up
with practical solutions lor homclcssncss rcquircs going to thc placcs
whcrc homclcss pcoplc livc, lcarning lrom thcm what thcir livcs arc likc,
why thcy do what thcy do, and what opportunitics thcy takc advantagc
ol now and hopc to takc advantagc ol in thc luturc. ! was ablc to put
what ! had lcarncd lrom my day with Joc to good usc in lcarning
about povcrty by intcrvicwing pcoplc all ovcr thc world who survivc
on lcss than a dollar a day, by walking with thcm through thcir onc
acrc larms and cnjoying a cup ol tca with thcir lamilics, sitting on a
stool in lront ol thcir thatchcdrool mudandwattlc homcs.
Thcsc pcoplc told mc thcy wcrc poor bccausc thcy couldnt carn
cnough lrom thcir oncacrc larms. Thcy said thcy nccdcd acccss to
InLroducLion
aordablc irrigation bclorc thcy could grow thc highvaluc crops that
would incrcasc thcir incomc, and somctimcs thcy nccdcd hclp to gct
thcsc crops to markcts whcrc thcy could scll thcm at a prot. So in
.. ! startcd an organization callcd !ntcrnational cvclopmcnt n
tcrpriscs (!) that hclpcd thcm mcct thcsc nccds. Vc dcsigncd a
rangc ol aordablc irrigation tools such as trcadlc pumps, and mass
markctcd thcm to smallacrcagc larmcrs through thc local privatc
scctor. Vc hclpcd larmcrs pick lour or vc highvaluc lruits and vcg
ctablcs thcy could grow wcll in thcir arca, sct up privatcscctor supply
chains that sold thcm thc sccds and lcrtilizcr thcy nccdcd to grow thcsc
crops, and hclpcd thcm scll what thcy grcw at a prot in thc markct
placc. This ccctivcly cndcd thc povcrty ol ., million dollaraday
rural pcoplc.
!t has takcn mc twcntyvc ycars to comc to thcsc ridiculously
simplc and obvious conclusions.
!vc nally comc to rcalizc that sccing and doing thc obvious is
probably onc ol thc most dicult things to do. ! think that onc ol thc
inucnccs that hclpcd mc to scc and do thc obvious cvcn il it took
mc twcntyvc ycars to do it is that my lathcr was a survivor and onc
thing it takcs to bc a survivor is thc capacity to scc thc world around
you with opcn cycs.
8y thc timc Ncvillc Chambcrlain gavc thc Sudctcnland to Hitlcr as
a gilt, my lathcrs plans to cscapc to Canada wcrc almost complctc. Hc
told mc latcr that thc nccd to lcavc cvcrything bchind and cscapc was
obvious. Hc said that sincc rclugccs, many with brokcn hcads, had
bccn strcaming across thc bordcr with Gcrmany lor ycars, thc disastcr
about to lall on us was prcdictablc. Hc plcadcd with his lricnds and
rclativcs to cscapc bclorc it was too latc.
8ut what would wc do with thc lurniturc: thcy rcplicd.
Most ol thcm staycd in Czcchoslovakia and dicd.
All too many timcs in my lilc ! havc cncountcrcd pcoplc who makc
disastrous mistakcs bccausc thcy kccp thcir cycs closcd to what is hap
pcning around thcm. ach timc, ! rcmcmbcr what my lathcrs lricnds
and rclativcs said whcn hc plcadcd with thcm to cscapc.
8ut what would wc do with thc lurniturc:
! think thc lurniturc ol our prolcssional trainingol thc middlc
class contcxts in which most pcoplc lrom uropc, North Amcrica, and
o
OuL o PovcrLy
prospcrous Asia arc raiscdcontributcs to our inability to scc and do
thc obvious about povcrty.
!t may sccm ridiculous to you lor mc to rcpcat cach ol thc kcy
things that ! lcarncd lrom talking to poor rural pcoplc cach ol thcsc
points is so simplc and obvious. 8ut thcyrc important cnough that !m
going to do it anyway.
.. Thc biggcst rcason most poor pcoplc arc poor is bccausc thcy
dont havc cnough moncy.
a. Most ol thc cxtrcmcly poor pcoplc in thc world carn thcir living
now lrom oncacrc larms.
. Thcy can carn much morc moncy by nding ways to grow and
scll highvaluc laborintcnsivc crops such as oscason lruits
and vcgctablcs.
. To do that, thcy nccd acccss to vcry chcap smalllarm irrigation,
good sccds and lcrtilizcr, and markcts whcrc thcy can scll thcir
crops at a prot.
Any onc ol you can lcarn all ol thc abovc by spcnding onc day in a
poor villagc in any dcvcloping country and asking tcn or twcnty larm
crs why thcy arc poor and what thcy can do about it. Thc rcmarkablc
thing is that povcrty cradication programs continuc to spcnd billions
ol dollars in poor countrics, without much to show lor it and without
taking most ol thcsc points into account.
This book will dcscribc in dctail cach ol thc stcps nccdcd to addrcss
thcsc points, as wcll as thc rcvolution in thinking and practicc that is
nccdcd to cnd povcrty, by tclling thc storics ol thc poor pcoplc ! havc
mct ovcr thc past twcntyvc ycars.
Small-acreage farmers with their crop in Zambia
Twclvc Stcps
to Practical
Problcm Solving
cntr1cr oNc
oxv ov :nv :nixcs :n~: ~iw~vs viguvu :v cuviosi:v ~nou:
povcrty is that most pcoplc scc it as morc pcrmancnt than thc Rock ol
Gibraltar. 8ut ! know that pcoplc arc capablc ol moving out ol povcrty
in a lcw months, bccausc thcrc arc simplc and obvious solutions to it.
Thc ccntral thcmc ol this book is that you can comc up with obvious
practical solutions to just about any complicatcd social problcm by lol
lowing a lcw simplc basic stcps. Hcrc arc thc twclvc stcps ! uscd to ar
rivc at thc solutions to cxtrcmc povcrty ! dcscribc in this book. Although
cach ol thcm is simplc and obvious, many pcoplc nd thcm dicult to
apply. For cxamplc, most povcrty cxpcrts spcnd littlc or no timc talking
with and listcning to cxtrcmcly poor pcoplc in thc placcs whcrc thcy
livc and work, although that is cxactly whcrc ! havc bccn guidcd to
most ol thc practical solutions to povcrty that ! dcscribc in this book.
.. Go to whcrc thc action is.
a. Talk to thc pcoplc who havc thc problcm and listcn to what
thcy say.
. Lcarn cvcrything you can about thc problcms spccic contcxt.
. Think big and act big.
. Think likc a child.
6. Scc and do thc obvious.
,. !l somcbody has alrcady invcntcd it, you dont nccd to do so again.
. Makc surc your approach has positivc mcasurablc impacts that
can bc brought to scalc. Makc surc it can rcach at lcast a million
pcoplc and makc thcir livcs mcasurably bcttcr.
. csign to spccic cost and pricc targcts.
.c. Follow practical thrccycar plans.
... Continuc to lcarn lrom your customcrs.
.a. Stay positivc: dont bc distractcd by what othcr pcoplc think.
. co 1o wncrc 1nc tc1ioN is
You cant sit in your occ at thc Vorld 8ank or in your rcscarch lab at
Stanlord and gurc out what to do about povcrty in Myanmar.
Hurricanc Katrina struck Ncw rlcans at 6:.c a.m. on August a,
acc. Hcrcs what Michacl 8rown, dircctor ol thc Fcdcral mcrgcncy
Managcmcnt Agcncy (FMA) said whcn Paula Zahn, a CNN intcr
vicwcr, askcd him lour days latcr about thc dcspcratc conditions whcrc
crowds ol pcoplc had sought rclugc at thc rncst N. Morial Convcn
tion Ccntcr.
Michacl 8rown: Vc just lcarncd about that today.
Paula Zahn: Sir, yourc not tclling mc that you just lcarncd that
thc lolks at thc convcntion ccntcr didnt havc lood and watcr until
today, arc you:
8rown: Paula, thc lcdcral govcrnmcnt did not cvcn know about
thc convcntion ccntcr pcoplc until today.'
Vhat kcpt Michacl 8rown lrom going to thc convcntion ccntcr to
scc lor himscll: Thc practical solutions lor thc rapidly dctcriorating
conditions cxpcricnccd by so many Katrina survivors who had takcn
shcltcr thcrc would havc bccn immcdiatcly obvious.
OuL o PovcrLy
Michacl 8rown rcsigncd undcr prcssurc a lcw wccks latcr.
!n .., whcn ! was working on a projcct to build and scll vc hun
drcd donkcy carts to rclugccs in Somalia, ! mct a plcasant middlcagcd
man who managcd vc hcalth clinics in rclugcc camps lor a major
intcr national rclicl organization.
How oltcn do you gct out to thc rclugcc camps to visit your clinics:
! askcd.
! havcnt bccn thcrc yct and ! dont plan to go soon, hc said with
considcrablc pridc. !l you go to thc cld, its mass conlusion. Man
agcrs havc to bc ablc to think clcarly, without distractions, to makc
good dccisions, and you simply cant do it in thc middlc ol thc noisc
and chaos ol cld conditions.
! was so astonishcd that lor oncc in my lilc ! was spccchlcss.
Two months ago, ! had lunch with a man who managcd a largc
USbascd dcmonstration larm lor an organization that makcs livc
stock availablc to poor rural lamilics in dcvcloping countrics. Hc was
rcsponsiblc lor public cducation and lundraising with thc thousands
ol pcoplc who visitcd thc larm cach ycar. uring thc scvcn ycars hc
had managcd this important dcmonstration larm, hc had ncvcr visitcd
any ol his organizations programs in dcvcloping countrics.
! simply cant imaginc how anybody can makc rcalistic plans to
cradicatc povcrty or to addrcss any important problcm without visiting
thc placcs whcrc thc problcm is occurring and talking with thc pcoplc
who havc thc problcm.
:. 1tix 1o 1nc rcoric wno ntvc 1nc rrosicr,
tNb iis1cN 1o wnt1 1ncv ntvc 1o stv
!n thc .cs, agriculturc cxpcrts in 8angladcsh wcrc dismaycd that
smallacrcagc larmcrs wcrc applying only a tiny lraction ol thc lcrtil
izcr that thcir monsoonscason ricc crops nccdcd, cvcn though thcy
could triplc thcir invcstmcnt in lcrtilizcr lrom thc incrcascd ricc yiclds
thc rccommcndcd amount would stimulatc. Thc cxpcrts complaincd
about thc irrational and supcrstitious bchavior ol smallacrcagc larm
crs, and sct up cxtcnsion programs and larmcrtraining programs, but
nothing workcd. Thc larmcrs continucd to apply a tiny lraction ol thc
Twclvc SLcps Lo PracLical Problcm Solving

lcrtilizcr that thcir ricc nccdcd to thrivc. Finally, somcbody askcd somc
larmcrs why thcy wcrc using so littlc lcrtilizcr.
h, thats casy, thcy said. vcry tcn ycars or so around hcrc, thcrc
is a major ood during thc monsoon scason that carrics away all thc
lcrtilizcr wc apply. So wc only apply thc amount ol lcrtilizcr wc can
aord to losc in a tcnycar ood.
Suddcnly it bccamc clcar that thc larmcrs wcrc cxccllcnt, rational
dccision makcrs and that it was thc agriculturc cxpcrts who had a lot
to lcarn. !n ordcr to survivc, subsistcncc larmcrs havc to bc at thc cut
ting cdgc ol avoiding risk. Vith vcry good rcason, thcy carc much
morc about avoiding losing thcir larm than thcy do about tripling
thcir incomc. Vhcn thcy havc thc opportunity (and thc moncy) to in
vcst in lcrtilizcr during thc dry scason whcn thc risk ol oods is closc
to zcro, thcy arc glad to do so.
Thcrc is anothcr problcm with this action stcp. Far too many pcoplc
can talk to thc pcoplc who havc thc problcm and not lcarn anything,
bccausc thosc who would hclp dont always know how to listcn. As a
young psychiatrist in .6a, ! got intcrcstcd in nding out il thc paticnts
admittcd to thc psychiatric wards ol Colorado Mcntal Hcalth !nstitutc
at Fort Logan and thc psychiatrists, social workcrs, and nurscs trcating
thcm wcrc working on thc samc trcatmcnt goals. To my amazcmcnt,
thc mcntal hcalth prolcssionals not only had dicrcnt trcatmcnt goals
lrom thcir paticnts, but thcy also wcrc unablc to prcdict which goals
thc paticnts saw as most important. Vhcn ! askcd morc qucstions, !
lcarncd that mcntal hcalth prolcssionals wcrc traincd to dcnc thc
problcm bringing a paticnt to a psychiatric hospital as a mcntal illncss
insidc thc hcad ol thc paticnt, whilc paticnts saw thc problcm as rcsid
ing in thc group ol pcoplc with whom thcy livcd and workcd outsidc
thc hospital. ltcn thc paticnts symptoms ol mcntal illncss would gct
bcttcr whcn hc or shc was givcn mcdication and rcmovcd lrom thc
uphcavals going on in his or hcr rcallilc sctting, only to bc rcadmittcd
to hospital altcr bcing rclcascd again into thc unchangcd social sctting
that had prccipitatcd thc symptoms in thc rst placc. Vhcn mcntal
hcalth prolcssionals lcarncd to listcn lor and intcrvcnc in thc problcms
in thc rcallilc sctting at thc samc timc thcy diagnoscd thc symptoms
ol mcntal illncss, trcatmcnt outcomc improvcd dramatically. Thc samc
6
OuL o PovcrLy
kind ol thing happcns with pcoplc trying to addrcss thc problcms ol
povcrty. !l thcsc prolcssionals arc traincd to assumc that modcrn larm
ing dcpcnds on Vcstcrn mcchanization, in thc cnd thcy arc likcly to
lcavc bchind rusting hulks ol big tractors and harvcstcrs as monumcnts
to thc inability to listcn and lcarn.
. ictrN cvcrv1niNc vou ctN tsou1 1nc rrosicrs
srcciric coN1cx1
Vc achicvcd a grcat dcal ol succcss with trcadlc pumps in 8angladcsh.
Now ! quickly run out ol ngcrs and tocs whcn ! try to count how
many pcoplc havc askcd mc il thcy could usc trcadlc pumps to hclp
larmcrs in villagcs in othcr countrics.
How dccp is thc watcr tablc in your villagc: ! ask, bccausc a trcadlc
pump is a suction pump that simply wont lilt watcr morc than about
twcntyscvcn lcct.
! dont know is thc most common answcr.
Tic a rock on thc cnd ol a piccc ol string, go to thc ncarcst wcll,
and mcasurc how dccp thc watcr tablc is, ! say. r go to thc govcrn
mcnt ministry ol watcr rcsourccs thcy likcly havc maps with that
kind ol inlormation.
K, wcll do it thc ncxt timc wc visit, thcy say.
Thc lact is, you cant makc practical plans unlcss you gathcr a lot ol
dctails about cach spccic villagc contcxt. Vhat kind ol highvaluc
crops you can grow in cach dcpcnds on thc typc ol soil and thc climatc.
Thc pricc ol lruits and vcgctablcs is usually highcst at thc timc ol ycar
whcn its most dicult to grow thcm, so its important to know why
thcsc crops arc dicult to grow at that timc ol ycar and what can bc
donc to ovcrcomc thc diculty. !l thcrc is a lactory ncarby with jobs
that pay wcll, thc labor rcquircd lor intcnsivc horticulturc may bc hard
to comc by.
vcrything ! havc to say in this book dcpcnds almost totally on
having intcrvicwcd thrcc thousand poor larm lamilics, listcncd carc
lully to what thcy had to say, and lcarncd cvcrything ! could about thc
spccic contcxt in which thcy livcd and workcd.
,
. 1niNx sic tNb tc1 sic
!l you lcarn about a problcm in its rcallilc contcxt lrom thc pcoplc
who havc thc problcm, ask basic qucstions, and opcn your cycs to scc
thc obvious, you arc likcly to comc up with big idcas with world
changing potcntial. This is not only cxhilarating, it can bc lrightcning
and somc pcoplc rcact to this cxcitcmcnt by making puny action
plans. thcr pcoplc lail to think and act big bccausc thcy havc ncvcr
donc so and arcnt uscd to it, or bccausc thcy dont want to bc sccn as
arrogant, or bccausc thcy arc alraid ol lailing il thcy think too big. !
havc lcarncd to look at thc total global markct potcntial ol any idca
lrom thc bcginning, cvcn il doing so makcs mc uncomlortablc. !vc
gottcn uscd to thc grandiosity labcls that comc with thinking big.
!n thc chaptcr on crcating ncw markcts, ! will considcr thc lact that
thcrc arc a billion pcoplc in thc world who nccd cycglasscs but dont
havc thcm, and ! will discuss thc potcntial solution ol providing acccss
to display stands lrom which pcoplc could pick twodollar spcctaclcs
that corrcct thcir vision problcms. Vhcn most pcoplc think ol implc
mcnting a solution likc this, thcy think small. Thcrc arc scvcral organi
zations that havc startcd to providc aordablc rcading glasscs to poor
pcoplc, but all ol thcm togcthcr havc dclivcrcd lcss than a hall million
cycglasscs, which scrvcs lcss than onctcnth ol . pcrccnt ol thc cus
tomcrs who nccd thcm. ! start by thinking about how to rcach hall ol
thc total potcntial markct ol . billion or so within ltccn ycars. A busi
ncss plan to accomplish this would probably nccd to rcach global salcs
ol c million a ycar within vc ycars, purchasing ltyccnt cycglasscs
lrom mainland China a million or morc at a timc and sclling thcm at a
rctail pricc ol about two dollars. ! would spcnd most ol my timc dc
signing an ccctivc global markctinganddistribution plan lor both
rural and urban arcas, and wrap it up with a clcar statcmcnt ol thc
startup capital rcquircd to implcmcnt a thrccycar plan, how it would
bc spcnt, and what it would accomplish. This kind ol planning is
routinc lor largc busincsscs or lor any cntrcprcncur sccking startup
vcnturc capital, but it is rarc lor dcvclopmcnt organizations.
Thinking big in this way always carrics thc risk that you will lail in
a big way. 8ut il you cant stand to takc thc risk ol lailing and looking
bad whilc doing so, you probably should bc in a dicrcnt linc ol work.
8
OuL o PovcrLy
!l you want to makc thc world a bcttcr placc, coming up with a brcak
through conccpt or tcchnology is just thc rst stcp. Thc most chal
lcnging problcm is coming up with a practical way that you can put
thc innovation into thc hands ol thc hundrcds ol millions ol pcoplc in
thc world who nccd it.
. 1niNx iixc t cniib
Coming lrom a rclugcc lamily who barcly cscapcd bcing murdcrcd by
Hitlcr in Czcchoslovakia in . whcn ! was vcandahall, ! dont
want to romanticizc childhood. 8ut thcrc is a simplc and dircct curios
ity in childhood and a lovc ol play that wc tcnd to miss badly in our
approach to problcmsolving as adults. !l you think likc a child, you
can quickly strip a problcm down to its basic clcmcnts.
!n .6 ! was in Cachocira, thc Amazon rain lorcst homc villagc ol
Chico Mcndcs, who loundcd thc rubbcr tappcrs union and was mar
tyrcd by thc cattlc intcrcsts. ! was trying to gurc out how rubbcr tap
pcrs could shcll and dry 8razil nuts at thc villagc gathcring point so
thcy could incrcasc thcir incomc. Vc had to dcsign a villagc dricr to
rcplacc thc largc industrial dricrs ol bigcity plants. Vhcn wc walkcd
through rain lorcst villagcs, ! saw that cvcry sccond housc had a forno
de farinha, a twoloothigh bakcdclay lurnacc with an cightbytcn
loot stovc top uscd to dry manioc our. Vhcn ! saw all thcsc ovcns
uscd to dry manioc, ! rcalizcd that cach ol thcm could also bccomc a
8razil nut dricr. !l you think about how to dry somcthing as il yourc a
child instcad ol an cnginccr, you think about how you can warm it and
blow air ovcr it, likc whcn you hang a wct towcl on a clothcslinc in thc
brcczc and thc sunlight.
So wc built a rcmovablc woodcn housc with a chimncy that sat on
top ol thc maniocdrying ovcn, and uscd thc hcat coming lrom thc
stovc top to draw air ovcr thc surlacc ol 8razil nuts that wcrc drying
on wircmcsh drawcrs insidc thc woodcn housc. Vc built thc rst onc
lrom scratch in two hours.
6. scc tNb bo 1nc osvious
!l wc cant scc our blind spots, how can wc bcgin to scc and do thc
obvious:

Hcrc is an obvious lact that hasnt bccn incorporatcd into thc plans
ol most povcrty allcviation cxpcrts. !t took mc scvcral ycars and scvcral
hundrcd intcrvicws with poor lamilics to bcgin to scc it. Thrccquartcrs
ol thc dollaraday povcrty in thc world has its roots in tiny larms.
Ninctycight pcrccnt ol all thc larms in China, 6 pcrccnt ol thc larms
in 8angladcsh, , pcrccnt ol thc larms in thiopia, and c pcrccnt ol
thc larms in !ndia arc smallcr than vc acrcs. ight hundrcd million ol
thc pcoplc who carn lcss than a dollar a day scratch most ol what thcy
carn out ol oncacrc larms that arc dividcd into lour or vc scattcrcd
quartcracrc plots. !ntcrnational cvclopmcnt ntcrpriscs (!), thc
small organization ! startcd, has bccn ablc to hclp ., million pcoplc
out ol povcrty bccausc wc rcalizcd that crcating ncw wcalth on onc
acrc larms dcpcnds on opcning acccss to ncw lorms ol irrigation, agri
culturc, markcts, and dcsign.
,. ir sorcsobv nts tirctbv iNvcN1cb i1, vou boN1
Nccb 1o bo so tctiN
Pcoplc arc oltcn hcsitant to usc idcas lrom clscwhcrc. ! havc run into
countlcss instanccs ol thc notinvcntcdhcrc syndromc. oing a quick
world scarch to scc il somcbody has alrcady comc up with a solution to
thc problcm yourc working on is always lastcr and casicr than coming
up with somcthing ncw.
Pcrhaps thc most cmbarrassing cxamplc ol lcarning that it had
alrcady bccn invcntcd camc whcn ! was convinccd that ! had lound a
ncw way ol dclivcring watcr chcaply, drop by drop, to plants by punch
ing holcs in plastic pipcs and lctting watcr slowly dribblc out. an
Sparc, thc rst cnginccr ! talkcd to about this grcat ol idca ol minc,
politcly inlormcd mc that thc !sraclis had invcntcd it thirtyvc ycars
carlicr and that it was callcd drip irrigation. ! had ncvcr hcard ol it.
So ! scanncd thc world litcraturc on drip irrigation and lcarncd
that whilc thc mcthod had sprcad rapidly, it rcprcscntcd only . pcrccnt
ol irrigatcd acrcagc, bccausc thc sctup was too big and too cxpcnsivc
lor thc majority ol thc worlds larmcrs. So wc wcnt to work to dcsign
dripirrigation systcms that cut cxisting costs by lourlths, rcducing
thcir sizc to t small plots.
:o
OuL o PovcrLy
8. rtxc surc vour trrrotcn nts rosi1ivc rctsurtsic
irrtc1s 1nt1 ctN sc sroucn1 1o sctic
Vhilc wc wcrc working on thc donkcy cart projcct in Somalia, wc ran
across a tcam lrom !ntcrnational Labor rganization (!L) that had
organizcd a projcct to hclp rclugcc womcn makc and scll soap. 8ut
whcn wc askcd how much it would cost to buy somc ol this soap, it
was hard to gct a clcar answcr. Vc cvcntually lcarncd that !L could
havc bought thc ncst, most pcrlumcd soaps availablc in Paris, air
lrcightcd thcm to Somalia, and sold thcm at a chcapcr pricc than what
it cost to producc thc crudc soap thc rclugccs wcrc making with !Ls
hclp. Vhcn ! askcd how shc could justily this, thc programs managcr
hintcd that ! had no undcrstanding ol thc trcmcndous importancc ol
thc scllcstccm thcsc womcn gaincd lrom thc positivc group intcrac
tion during thc proccss ol making thc soap.
n thc contrary, ! bclicvcd that thc only rcal scllcstccm raiscd by
this projcct was that ol thc ladics in thc projcct tcam that dcsigncd
and implcmcntcd it. !l thcy wcrc rcally intcrcstcd in improving thc
scllcstccm ol thc rclugcc womcn with whom thcy workcd, thcy
would hclp thcsc womcn producc somcthing thcy could continuc scll
ing at a prot long altcr !L lclt Somalia. Producing soap at a cost
grcatcr than thc cxisting markct pricc lor thc ncst soaps also mcant
that thc projcct would bc unlikcly cvcr to bc takcn up by othcr groups
ol womcn, so it could ncvcr bc cxpandcd bcyond its original scopc.
How many pcoplc can bcnct lrom a dcvclopmcnt projcct il it
provcs to bc succcsslul: This is onc ol thc rst qucstions to bc askcd
about any idca lor a practical solution, sincc it takcs a lot ol timc and
moncy to implcmcnt a projcct. 8ut oltcn this qucstion is ncvcr askcd.
For cxamplc, a lcw rclugccs in Somalia who livcd in camps bcsidc
rivcrs and caught catsh to scll could broadcn thcir markcts by prc
scrving thc sh through salting and smoking, sincc rclrigcration was
unavailablc. 8ut all rclugccs nccdcd aordablc transport scrviccs, so
picking bctwccn sh smokcrs and donkcy carts was a nobraincr.
Thc only projccts worth doing havc mcasurablc costs, impacts that
arc an improvcmcnt ovcr thcir antcccdcnts, and thc potcntial to bc
brought to scalc.
:
. bcsicN 1o srcciric cos1 tNb rricc 1trcc1s
Thc kcy issuc that prcvcntcd thc !L sta lrom implcmcnting a cost
ccctivc projcct is that thcy had littlc intcrcst in guring out thc cost
and pricc targcts rclugcc womcn had to rcach to bc compctitivc in thc
local markctplacc. Likc so many othcr dcvclopmcnt organizations,
thcy scorncd matcrialistic mcasurcmcnts such as costs and prots, and
had no mcasurcmcnts ol impact othcr than thcir own bclicl that thc
group activity was good lor rclugcc moralc.
o. roiiow rrtc1icti 1nrcc-vctr ritNs
You may havc a worldchanging plan with a stunning vision lor thc
luturc, but il you cant comc up with a spccic plan lor thc ncxt thrcc
ycar pcriod, youll ncvcr gct anywhcrc. !l your thrccycar targcts arc
too ambitious, you will likcly lail long bclorc you havc any chancc ol
rcaching your longrangc vision. !l your thrccycar targcts arc too
puny, you wont lay a solid basc lor scaling up. As in Goldilocks and
thc Thrcc 8cars, your thrccycar objcctivcs havc to bc not too big, not
too small, but just right.
Vhcn ! wrotc a thrccpagc conccpt notc lor thc 8ill and Mclinda
Gatcs Foundation, ! said that my longtcrm vision was to incrcasc thc
nct ycarly incomc ol c million lamilics by vc hundrcd dollars a ycar,
and thc loundation was satiscd. 8ut whcn wc startcd ncgotiating a
spccic initiativc thcy could support, thcy said Forgct thc c million
wc want to scc clcar cvidcncc ovcr thc ncxt lour ycars that you can
rcach .cc,ccc. Provc to us that you can achicvc thc spccic impacts
that you say you can, and thcn wc can considcr going on to phasc two
and maybc cvcn phasc thrcc.
. coN1iNuc 1o ictrN rror vour cus1orcrs
About tcn ycars ago, thc lowcost dripirrigation tcchnology wc dc
signcd and cldtcstcd in Ncpal was rcady lor markcting. 8y this timc
wc had a good salcs lorcc, and scvcral hundrcd hill larmcrs within
thirty kilomctcrs ol Pokhara purchascd lowcost drip systcms. 8ut
salcs didnt go up at all in thc sccond ycar. !n lact, our cld sta wcrc
::
OuL o PovcrLy
dismaycd to lcarn that many larmcrs who bought lowcost drip systcms
uscd only a quartcr ol thc systcm thcy purchascd. Vhcn thcy intcrvicwcd
thc larmcrs who had bought drip systcms, our cld sta lcarncd thcsc
wcrc maizc and millct larmcrs who had no cxpcricncc with thc intcn
sivc horticulturc rcquircd to grow oscason vcgctablcs. !n lact, thcrc
was a widcly hcld bclicl that it was impossiblc to grow vcgctablcs in
wintcr in thc Pokhara rcgion, which bccamc a sclllullling prophccy.
ur Pokhara cld sta convinccd thc Kathmandu occ sta, who
convinccd mc, that wc would ncvcr bc ablc to scll lowcost drip systcms
until wc traincd larmcrs how to usc thcsc systcms to grow oscason
vcgctablcs. Vc introduccd cldbascd training programs in intcnsivc
horticulturc, and salcs took o quickly. !t ncvcr would havc happcncd
il our cld sta hadnt kcpt talking to our customcrs.
ach ol thc last twcntyvc ycars, ! havc intcrvicwcd at lcast a hun
drcd ol !s smallacrcagc customcrs. All my idcas lor projccts that
workcd, and cvcn somc that didnt work, camc lrom what ! lcarncd
lrom thcsc smallacrcagc larmcrs, and now all thc pcoplc who work
lor ! talk to and lcarn lrom thcsc larmcrs cvcry day.
:. s1tv rosi1ivc: boN1 sc bis1rtc1cb sv wnt1 o1ncr
rcoric 1niNx
Twclvc ycars ago ! was championing two aordablc irrigation tcch
nologics. Thc rst was an animalpowcrcd trcadlc pump, which pro
duccd as much watcr as a small dicscl pump. A lot ol pcoplc told mc
that il an animaldrivcn trcadlc pump putting out vc litcrs ol watcr a
sccond wcrc nccdcd, it would havc bccn dcvclopcd long ago. ! ignorcd
thcm. A vchorscpowcr dicscl pump cost scc thcn, and ! kncw wc
could producc a bullock pump lor s.a, a pump that burncd loddcr
instcad ol dicscl. So ! kcpt prcssing till wc had a markctablc rcliablc
bullock pump rcady to go.
At thc samc timc, ! was convinccd that a smallplot dripirrigation
systcm that could bc bought at about a lth ol thc pricc ol convcntional
drip would command hugc global dcmand. Pcoplc told mc il thcrc rc
ally wcrc a nccd lor such a systcm, thc markct would havc introduccd
it long ago. 8ut ! was convinccd that millions ol smallacrcagc larmcrs
:
:
OuL o PovcrLy
could carn big moncy lrom dripirrigatcd vcgctablcs. !t took scvcn
ycars to bring thc rst lowcost drip systcms to markct.
8y thc timc thc bullock pump was rcady to scll, Chincsc dicscl
pumps wcrc availablc lor onc hundrcd lty dollars instcad ol thc vc
hundrcddollar pricc larmcrs paid two ycars carlicr, and thc bullock
pump was no longcr costcompctitivc. ! had no rcgrcts. Vc had good
rcasons to dcvclop thc bullock pump, and wc had good rcasons at that
point to put thc product on a back burncr. Thc global markct lor low
cost drip irrigation, howcvcr, looks to bc hugc. ! think at lcast .c million
poor lamilics will buy a systcm.
Most brcakthrough solutions to important problcms, such as Hcnry
Fords vchundrcddollar automobilc and Jobs and Vozniaks two
thousanddollar computcr, camc about bccausc onc or two stubborn
cntrcprcncurs saw ncw solutions to old problcms and pcrsistcd until
thcir drcam bccamc a rcality. Vhy should solving thc problcm ol
povcrty bc any dicrcnt:
! havc sct a targct lor ! ol cnding thc povcrty ol c million
dollaraday lamilics by thc ycar acac by using thcsc twclvc principlcs,
and !m surc wcll makc it.
Unclogging a plugged emitter in a low-cost drip irrigation
system in Nepal
Low-cost drip irrigation in Zimbabwe
:,
cntr1cr 1wo
Thc Thrcc
Crcat Povcrty
Fradication Myths
i iv~vxvu guicxiv :n~: :nv nvs: w~v :o s~:isvv :v cuvios
ity about povcrty is to havc long convcrsations with poor pcoplc in thc
placcs whcrc thcy livc and work and drcam, and to listcn to what thcy
havc to say. This mcans talking to oncacrc larmcrs who livc on lcss
than a dollar a day, and walking with thcm through thcir clds. ! lclt
Kathmandu in lall ol acc. on a jccp trip that lcd to my rst mccting
with Krishna 8ahadur Thapa, his two wivcs, and thcir thrcc childrcn
in thc tiny hill villagc ol klc Phant in Ncpal.
Vhilc two luzzychcckcd youths in drab grccn army unilorms,
Kalashnikovs slung ovcr thcir shouldcrs, ricd through our drivcrs
documcnts, 8ob Nancs, ccpak Adhikari, and ! continucd to arguc
about somcthing so trivial that wc lorgot what it was bclorc thc argu
mcnt cndcd. Vc had bccn stoppcd just outsidc Kathmandu at onc ol
thc numcrous army chcckpoints that had sprung up in rcsponsc to
Maoist rcbcl activitics.
8ob Nancs is a classic contrarian: il you say black, hc says whitc.
No surprisc that wc wcrc arguing about nothing. !n any casc, his
:8
OuL o PovcrLy
contrary naturc was onc ol thc things that lcd mc to appoint him as
thc dircctor ol !ntcrnational cvclopmcnt ntcrpriscs programs in
Ncpal. ! startcd ! to hclp poor pcoplc incrcasc thcir incomc. That
has bccn its goal throughout its cxistcncc.
ccpak Adhikari spcaks Russian ucntly bccausc hc spcnt vc
ycars in Moscow on a scholarship gctting his cnginccring dcgrcc.
ccpak will givc you a onchour crcativc lccturc on horscics or any
thing clsc you carc to mcntion, il you dont stop him. Hc is in chargc
ol coming up with brcakthrough aordablc irrigation tools, a hot topic
lor most Ncpali larmcrs.
Vc wcrc on our way to talk to thirty or lorty oncacrclarm lami
lics in thc hills ol Ncpal who bought and installcd ! lowcost drip
systcms cightccn months carlicr to irrigatc oscason cauliowcr and
cucumbcrs. ! was cagcr to lcarn how much moncy thcy had madc and
what problcms thcy had cncountcrcd.
Altcr twoandahall boncjarring hours dodging potholcs big
cnough to sink our jccp, wc turncd wcst at Mugling and crosscd thc
bridgc ovcr thc boiling Trisuli Rivcr. A lcw minutcs latcr wc stoppcd
in a small clcaring in thc villagc ol klc Phant, whcrc cight or ninc
larm lamilics stood shyly in thc shadc ol a trcc, waiting to grcct us.
Thcy had bccn lorcwarncd and kncw that ! was likcly to ask a lot ol
impcrtincnt qucstions, so thcy ocrcd up Krishna 8ahadur Thapa as a
sacricial lamb to my curiosity. Hc was a sturdy ltysixycarold man
with a wcathcrbcatcn bronzcd lacc who lookcd as il hc could takc on
thc wholc Ncpali army with onc hand ticd bchind his back, and do it
with a smilc.
8ahadur and two ol his ncighbors took us on a lcisurcly stroll ovcr
rolling clds to his homc, a plcasant thrccroom typical stoncand
plastcr hill cottagc. Thcrc, his oldcst wilc, Padam Maya Magar, lorty
six, grcctcd us with a stcaming coppcr pot ol tca. Vhat ! didnt lcarn
till latcr is that 8ahadur had a sccond wilc, cvi Maya Magar, his rst
wilcs sistcr. (!t is acccptablc in somc Ncpal hill villagc culturcs lor a
man to takc a sccond wilc il hc has no childrcn with thc rst.) 8aha
dur and his sccond wilc had two sons, cu, twcntyvc, and Puspa,
twcntyonc.
! blcw on my tca and sippcd it. Many visitors to rural villagcs rclusc
to cat anything bccausc thcy dont want to gct sick, but ! lcarncd carly
:
Tc Trcc CrcaL PovcrLy FradicaLion MyLhs
on that anything stcaming is likcly to bc salc to consumc. A morc
practical qucstion is how to gct rid ol vc or tcn cups ol tca. !t is pcr
lcctly acccptablc thcrc lor a man to stcp asidc and rclicvc himscll by a
corncld whilc thc group kccps talking, but womcn arc cxpcctcd to bc
privatc, so most cxpcricnccd lcmalc visitors simply kccp a rm limit on
thc amount ol tca thcy drink during thcsc visits.
8ahadur had inhcritcd two acrcs ol scattcrcd clds. Hc had onc
acrc ol rainlcd monsoon ricc, by thc rivcr hall a milc lrom his housc,
which was producing twclvc hundrcd lty kilos ol traditional ricc,
cnough to lccd his lamily most ycars and makc lty to a hundrcd dol
lars lrom sclling thcir surplus. n thc acrc ol scattcrcd upland plots
closc to thcir housc, thcy rotatcd black gram, a lowvaluc bcanlikc
pulsc, maizc, and somc monsoon vcgctablcs lor thc tablc. !n ycars
whcn thc ricc crop wasnt good, 8ahadurs lamily ran out ol lood lor a
lcw months bclorc thc monsoon harvcst camc in. To makc cnds mcct,
hc and his two sons lookcd lor scasonal work in Mugling, and somc
timcs in Kathmandu, which could carn anothcr onc hundrcd dollars,
cnough to buy thc lood thcy nccdcd.
For mc, thc bcst part ol talking with smalllarm lamilics comcs
whcn thcy gct comlortablc cnough to spcak about thcir drcams. 8aha
dur and his lamilys londcst drcam was to nd somc way thcy could
carn much morc incomc lrom thcir small larm. Vith morc incomc,
thcy could buy thc lood thcy nccdcd. Thcy could givc thcir childrcn a
bcttcr cducation. Thcy could buy mcdicincs, buy morc land, and pcr
haps invcst in a cow and a bualo and start sclling milk.
Thc catch was, thcy had no idca how thcy could squcczc morc
incomc out ol thcir larm. Thcy didnt know how thcy could producc
morc ricc or black gram to scll, and cvcn il thcy wcrc to doublc thcir
production, thcy couldnt scc a way to carn morc than two hundrcd
dollars a ycar lrom sclling surplus ricc, corn, or bcans, and that would
still lcavc thcm on thc cdgc ol survival.
Thc main qucstion 8ahadur askcd us was lclt unanswcrcd, and its
thc samc qucstion that had hauntcd mc lor ycars. Vhat could 8ahadur
and his lamily do to movc out ol povcrty: Thcy had two acrcs morc
than many ol thc lamilics ol klc Phant thcy wcrc hard workcrs, and
thcy wcrc willing to do just about anything.
Vas thcrc anything wc could do to hclp thcm:
o
OuL o PovcrLy
This is thc ccntral qucstion ol this book.
Thcrc arc somc cc million pcoplc in thc world who, likc 8ahadur
and his lamily, livc in rural arcas in dcvcloping countrics and makc
thcir living lrom small larms. Thc scattcrcd quartcracrc plots whcrc
thcy scratch out a living usually havc poor soil and no acccss to irriga
tion. Thcir main crops arc ricc, whcat, and corn, but thcy usually cant
producc cnough to kccp lrom going hungry. !l thcy grow ricc, whcat,
or corn to scll in thc markct, thc pricc is too low to clcar morc than
two hundrcd dollars an acrc, not ncarly cnough to movc thcsc lamilics
out ol povcrty.
Thcrc arc somc simplc solutions to this problcm. Sadly, thc pcoplc
in chargc ol thc worlds povcrty programs rarcly locus on simplc solu
tions, and thc monumcntal invcstmcnts madc in povcrty cradication
initiativcs havc at bcst produccd mcagcr rcsults.
Vc havc invcstcd a staggcring s6 billion in dcvclopmcnt aid in
Alrica ovcr thc past lortytwo ycars, and havc vcry littlc to show lor
it, says Villiam astcrly, lormcrly a scnior cconomist at thc Vorld
8ank. vcr thosc samc lortytwo ycars, thc pcr capita growth ratc ol
thc mcdian Alrican nation has staycd closc to zcro.
Vhilc not quitc as blcak as in subSaharan Alrica, thc track rccord
ol aid to dcvcloping countrics in othcr parts ol thc world has bccn lar
lrom stcllar. 8ctwccn .c and .,c, major invcstmcnts in dcvcloping
countrics wcrc in dams, schools, roads, and othcr inlrastructurc im
provcmcnts. Vhilc this crcatcd somc positivc impacts on povcrty, thc
numbcr ol gigantic projccts with poor rcturns on invcstmcnt lcd to thc
dcbt criscs and loan lorgivcncss ol thc .cs. An cnsuing round ol
dcvclopmcnt invcstmcnt attcmptcd to rcplicatc thc cconomic succcss
ol Korca and thc ast Asian tigcrs. 8ut addrcssing pricc distortions,
opcning tradc, and corrccting budgct dccits in structural adjustmcnt
loans crcatcd anothcr load ol dcbt that could not bc rcpaid, cnding in
.cc pcrccnt canccllation ol loans in thc Multilatcral cbt Rclicl !ni
tiativc in acc6.
Thc currcnt answcr to povcrty is thc UNsponsorcd Millcnnium
cvclopmcnt Goals initiativc, lcd by Jcrcy Sachs and backcd by .
govcrnmcnts. This highly publicizcd initiativc plans to makc dramatic
improvcmcnts by thc ycar ac. in cradication ol povcrty and hungcr,
acccss to watcr and sanitation, dccrcasc in child and matcrnal mortality,

gcndcr cquity, prcvcntion ol thc sprcad ol malaria, tubcrculosis, and
H!\/A!S, ccssation ol cnvironmcntal dcgradation, dcbt rclicl, acccss
to inlormation tcchnology, and thc status ol landlockcd and island
statcs. All ol this will bc accomplishcd by doing much morc ol csscn
tially thc samc things wc havc bccn doing until now.
!n acc, about thc midpoint in thc .cac. timc pcriod lor ac
complishing all this, thc Vorld conomic Forum in avos concludcd
that corts toward achicving thc UNs Millcnnium cvclopmcnt
Goals wcrc laltcring badly. Altcr a ycar ol study, thc lorums Global
Govcrnancc !nitiativc ratcd progrcss on cach goal lrom onc to tcn.
Thcy gavc progrcss on cradication ol povcrty a rating ol lour, attrib
utcd mainly to domcstic policics and privatc corts. Thcy ratcd lcss
cning ol hungcr at thrcc, improvcmcnt ol cducation at thrcc, and
improvcmcnts in cnvironmcnt at thrcc, hcalth at lour, and human
rights at thrcc.
!n light ol thc importancc ol thc Millcnnium cvclopmcnt Goals
to halvc hungcr and povcrty, at thc hallway point thc progrcss on
rcaching thcsc goals is cvcn morc discouraging. Thc acc6 rcport ol
this initiativc on progrcss in halving thc pcrccntagc ol pcoplc in sub
Saharan Alrica who livc on lcss than a dollar a day providcs convinc
ing cvidcncc to support astcrlys contcntion that wc havc littlc to
show lor our massivc invcstmcnts in dcvclopmcnt aid in Alrica.
From .c to acca, thc pcrccntagc ol dollaraday pcoplc in sub
Saharan Alrica, whcrc most ol thc pcoplc in Alrica livc, staycd at
around pcrccnt (scc Tablc .), and thc absolutc numbcr ol vcry poor
pcoplc incrcascd by .c million. !n subSaharan Alrica, wc arc moving
backward in our attcmpts to cradicatc povcrty.
Things look a littlc bcttcr lor dollaraday povcrty in othcr dcvcloping
countrics. 8ctwccn .c and acca, thc pcrccntagc ol pcoplc in dcvclop
ing rcgions who survivc on lcss than a dollar a day droppcd lrom a,.
pcrccnt to .. pcrccnt.' A largc proportion ol this rcportcd dccrcasc
camc lrom China and its billionplus population, whcrc thc pcrccntagc
ol dollaraday pcoplc droppcd lrom pcrccnt in .c to ., pcrccnt
in acc.,'' halving thc pcrccntagc ol cxtrcmcly poor pcoplc. 8ut thc
drop in povcrty in China did not comc about bccausc ol givcaway
programs implcmcntcd by thc Millcnnium cvclopmcnt initiativc, but
bccausc thc govcrnmcnt ol China rcvcrscd thc disastrous agricultural
policics implcmcntcd undcr Mao which causcd thc dcaths ol c mil
lion pcoplc by starvation. Altcr such a disastcr, just about any changc
will bc bcttcr, but thc dccollcctivization movcmcnt lcd by cng Xiao
Pcng and many othcrs allowcd smallacrcagc larmcrs to start produc
ing lor thc markct, and this stimulatcd cconomic growth in rural arcas
whcrc poor smallacrcagc larmcrs carncd thcir livclihoods, bringing
many pcoplc out ol povcrty. !t also crcatcd thc basis lor thc cxport
bascd coastal dcvclopmcnt zoncs that wcrc largcly rcsponsiblc lor
Chinas continuing national cconomic growth. 8ut this national cco
nomic growth ccntcrcd in China is strikingly uncvcn gcographically.
China is rcally at lcast two scparatc countrics. Thc rst country
ccntcrcd in thc coastal bclt with ncarly idcal climatc, soil, watcr, and
transport conditions uscd a prospcrous agricultural basc to launch an
cxportoricntcd cconomic miraclc taking advantagc ol lowcost labor.
Thc sccond country, ccntcrcd in thc rcmotc Ycllow Rivcr vallcy
rcgions ol northwcst China, has optimal conditions lor continuing
povcrtyovcrpopulation, poor soils, high crosion, low rainlall, poor
transport, tradc, and communications, and vcry low agricultural pro
ductivity. Thcsc arcas arc populatcd by millions and millions ol lamilics
cking out a living on hall an acrc ol land lcascd lrom thc govcrnmcnt.
0
5
10
15
20
25
30
35
40
45
50
P
e
r
c
e
n
t
1990
44.0% 44.6%
Percentage of people in sub-Saharan Africa living on $1 a day
2002
Table 1: Impact of Development Aid in Sub-Saharan Africa
:
OuL o PovcrLy
At thc toughcst timcs ol thc ycar, somc ol thc lamilics in rcmotc parts
ol Gansu and Janxi provinccs havc to survivc on lood and watcr brought
in at signicant cost by thc govcrnmcnt. Thc prospcrity ol thc rst
country has had vcry littlc impact on thc povcrty ol thc sccond.
l coursc, Chinas cconomic miraclc has had somc positivc impact
on thc poor in rcmotc arcas in Chinas northwcst. ! visitcd a prospcrous
vcgctablcproccssing and lrcczing plant two hours wcst ol Shanghai.
nc thousand womcn lrom poor arcas in northwcst China wcrc buscd
in cvcry thrcc months, houscd on sitc, and paid to cut cauliowcr and
othcr vcgctablcs into tiny picccs that wcrc lrozcn and shippcd to makc
pizza toppings in Japan and thc Unitcd Statcs. Thcy carncd lorty dol
lars a month on top ol thcir transport and pcr dicm cxpcnscs, which
provcd usclul to thcir lamilics in poor villagcs in provinccs likc Gansu
and Janxi. 8ut this lcvcl ol incomc contributcd only a littlc to cnding
thcir povcrty. Furthcr povcrty rcduction in China will dcpcnd on crc
ating cconomic growth in northwcst China and its othcr rcmotc, poor
rural rcgions.
Thc incrcasc in thc pcrccntagc ol poor pcoplc in subSaharan Alrica
ovcr thc ncxt twclvc ycars is likcly to bc cqual to or grcatcr than lurthcr
rcductions that arc apt to occur in astcrn Asia and othcr dcvcloping
rcgions. This makcs it cxtrcmcly unlikcly that thc goal ol halving dollar
aday povcrty will bc achicvcd.
!t is cvcn morc unlikcly that thc rclatcd Millcnnium goal on hungcr
will bc achicvcd. 8ctwccn .c and acca, thc pcrccntagc ol pcoplc
who arc always hungry dccrcascd only lrom ac pcrccnt to ., pcrccnt,
and thc absolutc numbcr ol hungry pcoplc incrcascd by million pcr
ycar bctwccn . and accc,' rcaching a million by acca.'` Sincc
thc root causc ol hungcr is povcrty and onc ol thc rst things poor
pcoplc do with ncw incomc is buy thc lood thcy nccd to cnd thcir
hungcr, how is it that hungcr has rcmaincd csscntially unchangcd il
thcrc has bccn somc drop in cxtrcmc povcrty:
Thc acc6 progrcss rcport ol thc Millcnnium initiativc concludcs
that thc goal to doublc thc pcrccntagc ol pcoplc with acccss to sanita
tion likcly will not bc rcachcd.'
! bclicvc that with busincss as usual, wc havc littlc hopc ol achicving
most ol thc Millcnnium cvclopmcnt Goals.
Pcrhaps our biggcst problcm is that our thinking about povcrty and

OuL o PovcrLy
what can bc donc to cnd it is scvcrcly hobblcd by thrcc grcat povcrty
cradication myths.
Thc Thrcc CrcaL PovcrLy FradicaLion MyLhs
wc ctN boNt1c rcoric ou1 or rovcr1v
Thc most important povcrty cradication myth is that wc can donatc
pcoplc out ol povcrty. !ncrcdibly, Jc Sachs, thc hcad ol thc UN Mil
lcnnium cvclopmcnt Goals initiativc, bclicvcs that pcoplc who livc
on a dollar a day arc too poor to invcst thcir own moncy to movc out
ol povcrty. So hc and thc dcvclopmcnt cxpcrts hc lcads arc asking lor
s.6c billion a ycar lor tcn ycars, primarily as gilts lrom rich countrics
to poor countrics, to build thc missing inlrastructurc that will allow
cconomic growth to takc o in poor rural arcas, which in turn will cnd
dollaraday povcrty. This is simply anothcr vcrsion ol thc massivc in
vcstmcnts in inlrastructurc madc bctwccn .c and .,c that rcquircd
thc loan lorgivcncss ol thc .cs. Although thc Millcnnium cvclop
mcnt Goals arc admirablc and imprcssivc, thc stratcgics to achicvc
thcm arc latally awcdbig inlrastructurc invcstmcnts, big agriculturc
projccts, big irrigation, and big budgcts controllcd by thc govcrnmcnts
ol dcvcloping countrics all corts that bypass poor rural pcoplc ck
ing out a living on oncacrc larms. Thcsc arc cxactly thc samc things
that havc lailcd rcpcatcdly in thc past.
Hcrc is what will rcally happcn. Vcstcrn cxpcrts with littlc or no
cxposurc to thc villagc will dccidc how to spcnd thc moncy. As soon as
word gcts out that a multimilliondollar givcaway is coming, dcvclop
ingcountry politicians with Swiss bank accounts and gctrichquick
busincssmcn will gathcr likc moths around a amc. Thcy will partici
patc in congratulatory ribboncutting ccrcmonics. For thc rst ycar or
two, gcncrously lundcd big projccts will producc cxccllcnt rcsults
cxcmplary yiclds ol grain, lor cxamplc, crcatcd by big invcstmcnts in
inputs and modcrn machincry supcrviscd by wcllpaid Vcstcrn con
sultants and will rcccivc dramatic mcdia covcragc. 8ut whcn thc
projcct moncy runs out, yiclds will drop back to normal. Any positivc
impacts ol invcstmcnts at thc villagc lcvcl will bc outwcighcd by markct
distortions lrom projcctinduccd corruption and subsidics, sabotaging

thc cmcrgcncc ol truc markcts. Poor pcoplc will apprcciatc having had
a lrcc ridc lor a timc, knowing all along that it would ncvcr last. Altcr
thc grand gilting pcriod is ovcr, mcdia silcncc will dcsccnd on thc
villagc, and most poor villagcrs will bc worsc o than bclorc. This lail
urc will providc morc ammunition lor thosc who bclicvc thcrc is no
practical solution to povcrty. !t will bccomc hardcr to raisc moncy lor
projccts that actually work.
This is not a ncw sccnario. !t has bccn cnactcd thousands ol timcs
in poor villagcs, although not on quitc as grand a scalc as that rccom
mcndcd by Jc Sachs and his collcagucs. Many organizations havc
donatcd villagc hand pumps to providc clcan drinking watcr to villagc
lamilics, only to rcturn two ycars latcr to nd that c pcrccnt ol thcm
wcrc not workingbccausc nobody had assumcd owncrship, so whcn
thc pumps brokc, nobody xcd thcm.
!n thc .,cs, thc Vorld 8ank invcstcd somc s million US in proj
ccts to install dccp and shallow dicsclpump irrigation tubc wclls in
8angladcsh. At that timc, just altcr thc war ol indcpcndcncc, 8angla
dcsh nccdcd to incrcasc national lood production, which dictatcd a
major incrcasc in irrigatcd acrcagc. Thc 8ank gavc loans at such low
ratcs ol intcrcst to thc govcrnmcnt ol 8angladcsh that thcy amountcd
to an pcrccnt subsidy. Thc 8angladcsh govcrnmcnt in turn passcd
on this gcncrosity to richcr larmcrs who could aord to pay bribcs.
Thc shallow tubc wclls lundcd by this projcct wcrc capablc ol irri
gating ltccn acrcs, and larmcrs wcrc givcn loans to buy thcm lrom
local banks. Thc larmcrs who got thcm paid bribcs to thc govcrnmcnt
ocials rcsponsiblc lor distributing thcm. Thcn thc larmcrs dutilully
dclaultcd on thc loans guarantccd by thc govcrnmcnt ol 8angladcsh,
which, ol coursc, ncvcr paid back thc loans to thc Vorld 8ank, and
cvcryonc involvcd kncw that this would happcn lrom thc bcginning.
Thc dccp tubc wclls could irrigatc onc hundrcd acrcs, and wcrc
givcn to larmcrs at zcro cost, which mcant that thcy had to pay biggcr
bribcs to gct thcm. nc ol thc problcms that thc Vorld 8ank and
govcrnmcnt cxpcrts ncvcr anticipatcd is that bccausc larms in 8angla
dcsh arc so lragmcntcd, thcrc wcrc lty or morc larmcrs in thc twclvc
toltccnacrc command arca ol a shallow tubc wcll, and hundrcds in
thc hundrcdacrc command arca ol thc dccp tubc wcll. This signi
cantly incrcascd thc complcxity ol watcr distribution.
6
OuL o PovcrLy
Not surprisingly, a typical shallow tubc wcll cndcd up irrigating
lour or vc acrcs instcad ol its ltccnacrc capacity, and dccp tubc
wclls rarcly irrigatcd lorty acrcs ol thcir onchundrcdacrc capacity.
A morc sinistcr problcm was that thc richcr larmcrs who could gct
mcchanizcd pumps bccamc watcr lords, sold watcr at cxorbitant priccs
to poor larmcrs, lorccloscd thcir loans, and scizcd thcir land. Thc rich
got richcr, and thc poor got poorcr. 8ccausc thcy wcrcnt nancially
sustainablc, most ol thc dccp tubc wclls wcrc abandoncd whcn thc
subsidy ran out. 8ccausc thcy wcrc smallcr and chcapcr, thc shallow
tubc wclls provcd protablc lrom thc bcginning, and thcy continucd
making rich larmcrs richcr. l coursc, thc goal ol cxpanding national
irrigatcd acrcagc was achicvcdbut much lcss acrcagc camc undcr
irrigation than thc cxpcrts prcdictcd.
At about thc samc timc, poor larmcrs bcgan buying much smallcr
and chcapcr manually powcrcd trcadlc pumps introduccd by thc
Rang pur inajpur Rural Scrvicc (RRS), a Luthcransponsorcd rural
dcvclopmcnt organization, and massmarkctcd by !. Most dcvcl
opmcnt and irrigation lcadcrs in 8angladcsh agrccd that thcsc small,
lowcost pumps produccd a much morc positivc impact on povcrty al
lcviation and social justicc, but bccausc cach onc irrigatcd only hall an
acrc, irrigation cxpcrts wcrc convinccd that only thc biggcr pumps could
put cnough land undcr irrigation to grow thc ricc thc nation nccdcd.
Twclvc ycars latcr, .. million poor larmcrs had purchascd trcadlc
pumps at an unsubsidizcd markct pricc ol sa and placcd scvcn hundrcd
lty thousand ncw acrcs undcr irrigation in 8angladcsh at a lraction ol
thc s million (US) public cost ol thc Vorld 8ank projcct that providcd
largcracrcagc larmcrs with shallow and dccp tubc wclls at no cost othcr
than thc bribcs thcy had to pay to govcrnmcnt ocials to rcccivc thcm.
!n thc latc .cs, whcn trcadlc pumps wcrc bccoming incrcasingly
popular, 8angladcshs prcsidcnt, Hossain Mohammad rshad, an
nounccd a lcw months bclorc clcction timc that hc would donatc
twcnty thousand ol thcm to his homc provincc. Farmcrs thcrc immc
diatcly stoppcd buying and waitcd lor lrcc trcadlc pumps to appcar.
Many smallvolumc manulacturcrs, dcalcrs, and wclldrillcrs in thc
rcgion wcnt out ol busincss. Thc govcrnmcnt gavc thc trcadlc pump
contract to a largcvolumc manulacturcr with political conncctions
,
who ncvcr had madc trcadlc pumps, and hc produccd two thousand or
so ol vcry poor quality. Thc promiscd twcnty thousand trcadlc pumps
ncvcr camc, and thousands ol larmcrs who could havc clcarcd onc
hundrcd dollars a ycar on an invcstmcnt ol twcntyvc dollars to buy a
trcadlc pump lost big.
8ut givcaways and subsidics arc not limitcd to ambitious global
povcrty programs. Thcy arc oltcn cnthusiastically supportcd by largc
corporations.
A lcw ycars ago ! spcnt a wcck in !sracl trying to lorm a partncr
ship with Nctam, thc biggcst dripirrigation company in thc world,
with thc hopc that ! and Nctam could collaboratc to dcvclop and
massmarkct a linc ol cxtrcmcly aordablc dripirrigation cquipmcnt
to tcns ol millions ol smallacrcagc larmcrs.
No dicc.
Nctams dircctors bclicvc thcy makc thc bcst dripirrigation cquip
mcnt in thc world. Thcy wantcd to stay with highcrmargin products
cvcn il a largcrvolumc markct was availablc at a lowcr pricc. Thcy
wcrc worricd that thcy might ruin thcir rcputation lor cxccllcncc il
thcy startcd making lowcrcost cquipmcnt.
Poor larmcrs dcscrvc thc bcst cquipmcnt, thcy said. Lcts lorm a
partncrship to win big Vorld 8ank contracts in Alrica. Thc Vorld
8ank can casily subsidizc thc cost ol our dripirrigation cquipmcnt to
a pricc poor larmcrs can aord. This will allow thcm to usc thc bcst
drip cquipmcnt in thc world, just likc rich larmcrs. Nctams salcs will
incrcasc, and ! will gain acccss to Vorld 8ank lunding to cxpand
its povcrty allcviation initiativcs.
ocsnt this sound attractivc: Nctam gcts a nicc bump in salcs.
! gcts acccss to Vorld 8ank lunding. Farmcrs with conncctions gct
acccss to highquality drip irrigation at a bargain pricc. Thc only prob
lcm is that its a lousy dcal lor poor smallacrcagc larmcrs. Thc global
dcmand lor lowcost drip irrigation is lar too big to providc thcsc nicc
subsidics lor cvcrybody, so thc pcoplc who gct thcm arc thc oncs with
conncctions and bribcs lor govcrnmcnt ocials. !n thc mcantimc, thc
pcoplc who gct cut out ol this comlortablc gamc arc thc smallacrcagc
larmcrs who carn lcss than a dollar a day. Vhats morc, subsidics on
pricc pull thc rug out lrom undcr smallscalc cntrcprcncurs trying to
8
OuL o PovcrLy
makc a living labricating and sclling aordablc irrigation to larmcrs.
8ut in thc cnd, it all gcts sold to thc public as anothcr succcsslul
povcrty program.
As you can probably gucss, ! lclt !sracl without making a dcal with
Nctam.
8ut this typc ol subsidy solution is cndcmic in thc dcvclopmcnt
world. !ts uscd by govcrnmcnts, thc Vorld 8ank, UN!CF, thc
Unitcd Nations, politicians, and many dcvclopmcnt lcadcrs who look
lor photo opportunitics with thc poor but havc littlc conccrn about
producing mcasurablc rcsults. Pricc subsidics lor goods and scrviccs lor
poor pcoplc just about always cnd up making things worsc.
vcn lood givcn to pcoplc who arc starving can causc problcms. !n
.. ! hclpcd blacksmiths in rclugcc camps in Somalia build vc
hundrcd donkcy carts and scll thcm lor thc local cquivalcnt ol lour
hundrcd lty dollars on crcdit to othcr rclugccs, who promptly bcgan
to carn two hundrcd dollars a month altcr cxpcnscs by transporting
watcr, rcwood, and lood. Vhcncvcr donatcd lood was handcd out, it
was thc highlight ol thc day in thc camps. nc ol thc itcms in thc dis
tributcd lood baskct was powdcrcd milk. ! watchcd many rclugccs slit
opcn bags ol powdcrcd milk and lccd it to thc goats. Thcy had no usc
lor it, but thcy lovcd camcls milk. Apparcntly nobody in thc rclicl
community had bothcrcd to ask rclugccs il thcy would add watcr to
powdcrcd milk and drink it. n thc othcr hand, cooking oil sold at a
prcmium in thc rclugcc markctplacc, and so did thc plastic jug it camc
in, bccausc it was pcrlcct as a watcr carricr.
Sincc an avcragc donkcy cart carncd a nct incomc ol two hundrcd
dollars a month, it could pay lor itscll in twoandahall months,
including intcrcst. So wc proposcd to UNHCR (Unitcd Nations High
Commissioncr lor Rclugccs) that wc providc thc carts to rclugccs with
c pcrccnt down and thc rcst on crcdit. Vc wcrc mct with outragc. UN
rclugcc programs wcrc cquippcd only to givc things away. nc UN ol
cial askcd mc indignantly what would happcn il thc moncy paid back
by rclugccs wcrc to bc stolcn by corrupt moncy managcrs. ! rcplicd that
il it circulatcd two or thrcc timcs and thcn was stolcn, it would do two
or thrcc timcs as much good as circulating just oncc. ! nally prcvailcd,
but barcly. Altcr wc rcposscsscd two carts lor nonpaymcnt, wc didnt
havc a singlc loan lailurc, and donkcy cart owncrs bccamc instant

millionaircs in thc contcxt ol Somalia, bccausc thcir nct incomc ol two
hundrcd dollars a month was about ltccn timcs thc incomc ol thc
avcragc pcrson thcrc.
8clorc ! gct totally carricd away by my avcrsion to subsidics, ! want
to makc it clcar that thcrc arc arcas such as cducation, roads, and
hcalth scrviccs that rcquirc public invcstmcnt, and so docs thc crcation
ol ncw markcts in poor rural arcas. That said, ! bclicvc thc rst stcp in
nding a solution to just about any problcm is to nd ways to unlcash
markct lorccs to solvc it. !l thcrc is onc thing ! bclicvc has crcatcd
morc obstaclcs to cnding povcrty than subsidics, its thc commonly
hcld notion that you can donatc pcoplc out ol povcrty.
To movc out ol povcrty, poor pcoplc havc to invcst thcir own timc
and moncy. Thc path out ol povcrty lics in rclcasing thc cncrgy ol
Third Vorld cntrcprcncurs. Thc good ncws is that thc smallacrcagc
larmcrs who makc up thc majority ol dollaraday pcoplc arc alrcady
cntrcprcncurs, and thcy arc surroundcd by thousands ol othcr small
scalc cntrcprcncurs opcrating workshops, storcs, and rcpair shops. All
thcsc cntrcprcncurs arc willing and ablc to invcst in crcating thcir own
wcalth il thcy can gain acccss to opportunitics that arc aordablc and
protablc cnough to attract thcm.
!n thc rst twcnty ycars ol my work with !, dcvclopmcnt lcadcrs
wcrc outragcd by my notion that you can and should scll things to
poor pcoplc at a lair markct pricc instcad ol giving things to thcm lor
nothing. 8usincss was a dirty word to dcvclopmcnt organizations.
!ts cxactly thc multinational corporations that usc thc busincss
approach you advocatc who havc causcd thc problcm ol povcrty in thc
rst placc, thcy would say. Poor pcoplc simply cant aord to buy thc
things thcy nccd, and thcy nccd thcsc things vcry badly. Thc only way
to makc a rcal dicrcncc is to donatc thcsc things to thcm.
And thc dcvclopmcnt organizations continucd to donatc moun
tains ol lood, lrcc villagc hand pumps that brokc down within a ycar
and wcrc ncvcr xcd, and thousands ol lrcc tractors that continuc to
rust undcr thc Alrican sun.
!m happy to say that all this is now changing. Vith thc abjcct lail
urc ol ccntral planning in socialist countrics, thcrc is a ncw awarcncss
in dcvclopmcnt circlcs that unlcashing thc cncrgy ol thc markctplacc
is thc bcst hclp wc can givc to poor pcoplc in thcir corts to cscapc
povcrty pcrmancntly. Now pcoplc in thc dcvclopmcnt cld rcgard !s
succcss in sclling trcadlc pumps to .. million poor larmcrs in 8angla
dcsh as a pionccring piccc ol work. Suddcnly lcadcrs in irrigation,
agriculturc, cconomics, and dcsign arc kccnly intcrcstcd in what ! havc
to say and ! havc morc invitations to givc kcynotc talks than ! can handlc.
Most importantly, morc and morc pcoplc arc bcginning to rcalizc
that making it possiblc lor vcry poor pcoplc to invcst thcir own timc
and moncy in attractivc, aordablc opportunitics to incrcasc thcir
incomc is thc only rcalistic path out ol povcrty lor most ol thcm.
Nt1ioNti ccoNoric crow1n wiii cNb rovcr1v
Thc sccond myth is that povcrty will bc carricd away on thc coattails
ol national pcr capita cconomic growth. Two hundrcd and lty ycars
ago, c pcrccnt ol thc pcoplc in thc world wcrc just as poor as thc ...
billion pcoplc today who survivc on lcss than a dollar a day. Thcn thc
stcam cnginc camc along, and coal powcr, and thc markct lorccs that
crcatcd thc industrial rcvolution. This triggcrcd two hundrcd and lty
ycars ol succcssivc wavcs ol cconomic growth that cradicatcd thc
povcrty ol thc grcat majority ol thc pcoplc in thc world. Accordingly,
wc may lall prcy to a sccond myth: all wc nccd to do is maintain a
consistcntly high pcr capita gross domcstic product (GP) in dcvcl
oping countrics, and dollaraday povcrty will cnd.
8ut in thc Unitcd Statcs, onc ol thc richcst countrics in thc world
with pcrsistcnt national cconomic growth ovcr many gcncrations, thc
US Ccnsus 8urcau rcportcd in acc that , million pcoplc, .a.6 pcrccnt
ol its total population, rcmaincd poor. !ndia has sustaincd cconomic
growth ol 6 pcrccnt a ycar lor many ycars, but in . 6 pcrccnt ol its
population, somc 6c million pcoplc, still survivcd on lcss than a dollar
a day. China has had an cvcn morc imprcssivc sustaincd pcr capita
GP growth ratc ol pcrccnt, and .6.6 pcrccnt ol its .. billion popu
lation, a total ol a.6 million pcoplc, wcrc surviving on lcss than a dollar
a day in acc..' !l sustaincd cconomic growth docs cnd povcrty, how
is it that !ndia and China, two dcvcloping countrics with admirablc
sustaincd growth ratcs, still havc somc , million pcoplc who livc in
cxtrcmc povcrty, most ol whom also cxpcricncc hungcr:
!t is bccausc most ol thc poor pcoplc in thc world livc in rcmotc
o
OuL o PovcrLy
rural arcas that will likcly continuc to bc bypasscd by succcssivc wavcs
ol urbanccntcrcd industrial growth. !ndustrial growth in urban arcas
lcads national pcr capita GP growth, and it gcncrally bypasscs thc
thrccquartcrs ol thc dollaraday pcoplc who livc in isolatcd rural ar
cas and carn thcir living lrom tiny larms. l coursc, many pcoplc who
cant makc it in rural arcas migratc to citics to look lor work, and somc
ol thcm nd it. Many cnd up in slums, and most quickly movc back to
thcir villagc il attractivc jobs bccomc availablc thcrc.
!ts truc that wc nccd growth to cnd povcrty. 8ut it is cconomic
growth in rcmotc rural arcas on oncacrc larms whcrc poor pcoplc livc
that wc nccd, not gcncric pcr capita GP growth that takcs placc pri
marily through industrialization in urban arcas. nding urban povcrty
rcquircs cconomic growth in slum arcas, stimulatcd by crcating ncw
markcts lor inlormal slumbascd cntcrpriscs that providc thc jobs that
poor pcoplc comc to slums to gct. This book will dcscribc many ncw
ways lor poor larmcrs to incrcasc thc incomc thcy can carn lrom onc
acrc larms, and ncw ways lor slum cntcrpriscs that cmploy poor pcoplc
to incrcasc thcir protability.
Unlcss wc can crcatc cconomic growth and prospcrity in thc spccic
contcxt ol small, rcmotc rural larms and ol urban slums, thc industrial
growth that crcatcs national GP pcr capita growth will continuc to
bypass most poor pcoplc.
sic susiNcss wiii cNb rovcr1v
Somc pcoplc scc a sicklc as a wcapon to start a rcvolution, othcrs as a
tool to bring in thc harvcst. 8ut it is inhcrcntly ncithcr ol thcsc. !t is a
curvcd piccc ol mctal with a sharp cdgc and a woodcn handlc.
Vhcn ! startcd ! twcntyvc ycars ago, povcrty workcrs saw
multinational corporations as cvil opprcssors ol thc poor, and busincss
as thc cncmy. Now many scc thcm as whitc knights rcady to slay thc
povcrty dragon. 8ut a multinational corporation is inhcrcntly ncithcr
ol thcsc. !t is an organizational structurc lor doing busincss. !l most
multinationals continuc to opcratc thc way thcy do now, thc bclicl that
big busincss will cnd povcrty will rcmain nothing morc than a tanta
lizing myth.
!t is tantalizing bccausc thcrc arc good rcasons to think ol big

:
OuL o PovcrLy
busincsscs as instrumcnts to cnd povcrty. !l its a lact that poor pcoplc
nccd to incrcasc thcir incomc, who knows morc about how to makc
moncy than multinationals: 8ut vcry lcw multinationals know how to
makc a prot scrving customcrs who survivc on lcss than a dollar a
day, who may bc illitcratc, and who havc no acccss to mass mcdia. An
incrcasing numbcr ol busincsscs arc lcarning how to scrvc customcrs
who carn lour or vc dollars a day, but in thc contcxt ol most dcvclop
ing countrics, thcsc pcoplc bclong to thc middlc class. To makc an im
pact on povcrty, big busincss has to lcarn how to providc aordablc
goods and scrviccs capablc ol incrcasing thc incomc ol vcry poor pcoplc,
do it in volumc, and makc a prot doing it.
Vith his book The Fortune at the Bottom of the Pyramid, C.K.
Prahalad has bccomc a champion ol thc incrcasingly popular trcnd
that sccs cxisting multinationals taking action to cnd povcrty.
Vc start with a simplc proposition, hc says. !l wc stop thinking
ol thc poor as victims or as a burdcn and start thinking ol thcm as
rcsilicnt and crcativc cntrcprcncurs and valucconscious consumcrs, a
wholc ncw world ol opportunity will opcn up.'
! couldnt agrcc morc.
8ut thc practical mcthods Prahalad proposcs in ordcr to takc ad
vantagc ol this ncw world ol opportunity lall lar short ol thc cxciting
vision hc bcgins with. Likc Jc Sachs, hc makcs littlc attcmpt to sct
prioritics lor povcrty allcviation initiativcs, and trcats with cqual admi
ration all ninc ol thc busincsscs hc prcscnts as cxcmplary modcls lor
povcrty cradication. Most ol thcm do, indccd, implcmcnt admirablc
programs. 8ut thcy vary widcly in thcir protability and thcir impacts
on poor pcoplc, and Prahalad, a prolcssor in thc Univcrsity ol Michigan
8usincss School, providcs no comparativc analysis ol thc bottomlinc
protability ol thc busincss pcrlormancc ol thcsc companics or ol thc
dircct mcasurablc impact ol thcir activitics on thc livcs ol poor pcoplc.
l thc ninc cxcmplary organizations hc dcscribcs, onc is not a
busincss at all, but an admirablc charity, thrcc scrvc middlcclass or
richcr customcrs, onc providcs usclul cpidcmiological inlormation but
no data arc availablc on its pcrlormancc as a busincss, and lour arc
cngagcd in activitics that havc dicring nancial pcrlormancc and
impacts on poor pcoplc.

8hagwan Mahavccr \iklang Sahayata Samiti (8M\SS) is an ad
mirablc !ndian nonprot organization that providcs thc rcmarkablc
thirtydollar Jaipur prosthctic loot to poor pcoplc in dcvcloping coun
trics at no cost. 8ut 8M\SS is a charitablc organization, not a busincss.
Ccmcx has an cxccllcnt busincss modcl lor markcting and providing
crcdit lor building supplics, and Casas 8ahia providcs similar cxccl
lcncc to customcrs lor houschold applianccs such as T\ scts and
rclrigcrators. 8oth ol thcsc companics scrvc middlcclass customcrs
who carn at lcast vc or six dollars a day, not dollaraday pcoplc. Thc
samc is likcly truc lor Annapurna !odizcd Salt, whosc product hclps
prcvcnt iodincdccicncy illncsscs, but it sclls at a highcr pricc than
most vcry poor pcoplc can aord to pay. \oxiva providcs an cxccllcnt
modcl lor obtaining mass inlormation on population hcalth that is
particularly rclcvant lor rapid rcsponsc to cpidcmics. !t is incorporatcd
as a busincss but appcars to opcratc morc likc an NG cxccuting
grants, and sincc ncithcr Prahalad nor \oxivas Vcb sitc providcs any
inlormation on \oxivas nancial pcrlormancc, it is impossiblc to cval
uatc its pcrlormancc as a busincss.
Four ol thc casc studics Prahalad dcscribcs contain potcntially
usclul cxamplcs lor busincss opportunitics that scrvc thc poor. !C!C!
8ank, onc ol !ndias largcst banks, providcs a costccctivc modcl lor
lorming morc than cight thousand scllhclp groups (SHGs) ol womcn
who participatc in thc banks savings and loan programs. Sincc thcsc
groups arc organizcd by promotcrs who arc SHG mcmbcrs paid on
thc basis ol pcrlormancc, this modcl appcars to bc a costccctivc way
ol scaling up thc basic Gramccn 8ank approach. Unlortunatcly, it is
not likcly to bc cconomically viablc, although no prot/loss data arc
givcn. 8y providing timcly markct pricc inlormation through !ntcrnct
inlormation ccntcrs, thc cChoupal systcm opcrating as a division ol
!TC, a largc !ndian company, incrcascs thc incomc ol poor larmcrs by
allowing thcm to scll at highcr priccs and rcccivc inlormation on im
proving thcir larming practiccs. No data on bottomlinc protability
ol this modcl arc providcd. Hindustan Lcvcr, thc !ndian subsidiary ol
Unilcvcr, launchcd a largcscalc markcting initiativc lor its popular
Lilcbuoy brand ol soap, which incorporatcd ccctivc communication
about thc hcalth bcncts ol hand washing, incrcasing its salcs ol
OuL o PovcrLy
Lilcbuoy by c pcrccnt and likcly rcducing thc incidcncc ol diarrhca
and othcr illncsscs among thc rural poor. Thc Aravind yc Carc Systcm
uscs prots carncd lrom cataract opcrations pcrlormcd lor paticnts
lrom thc Unitcd Kingdom and thosc who can aord to pay in !ndia,
to providc thc samc scrvicc to paticnts who arc too poor to pay.
Aravind providcs cataract opcrations and thc inscrtion ol intraocu
lar lcnscs lor bctwccn s and s., onctcnth ol thc cost lor thc samc
proccdurc in thc Unitcd Statcs. 8ctwccn ., and acca, Aravind car
ricd out morc than a million surgcrics, a majority lor poor pcoplc whosc
carc was paid lor with prots lrom paticnts with thc ability to pay.'
ata providcd on both thc nancial pcrlormancc ol Aravind and its
impact on thc poor suggcst that this is a good busincss modcl with
positivc impact on thc poor, although probably lcss than onc hall ol
. pcrccnt ol dollaraday pcoplc can bcnct lrom aordablc cyc surgcry.
To opcratc as a busincss rathcr than a charity, thc Jaipur loot organi
zation would nccd to crcatc a stratcgy such as sclling a twothousand
dollar vcrsion ol its loot to Vcstcrn customcrs too poor to aord thc
cightthousanddollar modcl and using thc prots to pay lor and scalc
up thc subsidizcd scrviccs it providcs to poor customcrs.
Unlortunatcly, Prahalad placcs thc billion pcoplc in thc world
who carn onc, two, thrcc, and lour dollars a day all in thc samc boat at
thc bottom ol thc pyramid. Thcn hc citcs cxcmplary busincsscs such
as Casas 8ahia in 8razil and Ccmcx in Mcxico, which scrvc middlc
class customcrs as modcls lor thc rolc big busincss can play in cnding
povcrty. This is a bit likc lumping togcthcr homclcss pcoplc, pcoplc on
wcllarc, social workcrs, schooltcachcrs, and nurscs in thc Unitcd Statcs
into onc group at thc bottom ol thc pyramid and citing a succcsslul
chain ol Hyundai car dcalcrs as an cxcmplary modcl lor scrving pcoplc
at thc bottom ol thc pyramid.
8ig busincss ccrtainly has thc potcntial to makc a hugc positivc
impact on cnding povcrty and to carn good prots by doing it. To takc
advantagc ol this rcmarkablc opportunity, multinationals must lcarn to
think and opcratc in totally dicrcnt ways. Thcy will nccd to makc
radical changcs in how thcy dcsign, pricc, and dclivcr products and
scrviccs to poor pcoplc. Thcsc radically dicrcnt cconomically sustain
ablc busincss modcls lor making positivc impacts on thc livcs ol vcry
poor pcoplc will nccd to incorporatc thc basic principlcs bclow.
.. First priority gocs to modcls that ccctivcly scrvc customcrs
who livc on lcss than a dollar a day.
a. Products and scrviccs arc dcsigncd to rcach pricc points aord
ablc to pcoplc who carn lcss than a dollar a day, whcn sold at an
unsubsidizcd lair markct pricc.
. First priority gocs to thc dcsign and markctplacc dclivcry ol
incomcgcncrating tools and stratcgics capablc ol at lcast paying
lor thcmsclvcs in thc rst ycar.
. Thc busincss modcl cxprcsscd in a viablc busincss plan will bc
capablc ol rcaching bottomlinc protability within a timc
lramc acccptablc to invcstors who lund thc busincss.
. Mcasurablc positivc impacts on povcrty arc an csscntial compo
ncnt ol a viablc busincss plan.
6. Capacity lor scaling up thc busincss to rcach millions ol poor
customcrs is an csscntial componcnt ol a viablc busincss plan.
Just as in thc proccss by which thc iPod cvolvcd lrom thc vcdollar
transistor radio, dcsigning and dclivcring products and scrviccs that arc
aordablc cnough to bc attractivc to dollaraday customcrs almost
always lcads to major markct brcakthroughs lor wcalthicr customcrs.
Thc cxpcricncc ol ! and othcr organizations, such as KickStart, in
dicatcs that thcrc arc many products capablc ol carning a nct rcturn ol
cc pcrccnt pcr ycar or morc on thc invcstmcnt madc to buy thcm by
cxtrcmcly poor customcrs. As thcir incomcs incrcasc lrom a dollar a
day to thrcc dollars a day and morc, poor pcoplc bccomc customcrs lor
a rangc ol consumcr goods, providing signicant busincss opportuni
tics lor companics that havc alrcady attractcd thcm as customcrs.
Pcoplc who survivc on lcss than a dollar a day havc thc lowcst labor
ratcs in thc worldabout onc sixticth ol thc minimum wagc ratc in
thc Unitcd Statcs. !n a global cconomy whcrc thc typing ol mcdical
rccords in Amcrican and uropcan hospitals is outsourccd to !ndia
and dcsigncr jcans sold in uropc arc produccd in China, thc challcngc

6
OuL o PovcrLy
lor big busincss is to nd ways to harncss thc vcccntanhour labor
ratcs ol dollaraday pcoplc and makc a prot doing it. Thcrc alrcady
arc succcsslul modcls lor doing this.
Thc Gujarat Coopcrativc Milk Markcting Fcdcration (GCMMF)
has grown rapidly to bccomc !ndias largcst loodproducts markcting
organization. !n accacc6, its salcs turnovcr was sc million handling
.. million litcrs ol milk a day lrom a. million smalllarm milk pro
duccrs, most ol whom startcd out carning lcss than a dollar a day. Also
known as Amul, this crcativc organization lound a way to collcct milk
lrom larmcrs with onc to thrcc bualocs, cool it, and proccss it into
products such as lrcsh milk, buttcr, chccsc, and icc crcam, sold to pcoplc
who can aord to buy thcm. Thcrc arc cc million dollaraday rural
pcoplc, just likc thc smallacrcagc larmcrs who arc mcmbcr produccrs
ol Amul, who can harncss thcir radically low labor costs to producc
laborintcnsivc highcost oscason lruits and vcgctablcs, hcrbs, and
thc kcy csscntial oil ingrcdicnts lor luxury cosmctics and Chancl No.
pcrlumc, il big busincss can nd ways ol collccting thcm and markct
ing thcm to highcnd markcts as Amul docs.
!, thc organization that ! loundcd, has alrcady sold morc than
a million trcadlc pumps to dollaraday larm lamilics, incrcasing thcir
nct annual incomc by morc than acc million dollars a ycar and crcat
ing a multiplicr impact on poor villagcs ol at lcast scc million a ycar.
arly markct dcmand suggcsts that thc global dcmand lor lowcost
drip systcms will rcach at lcast .c million lamilics, incrcasing thcir nct
annual incomc by sa billion a ycar.
Vhilc thc approachcs ol currcnt dcvclopmcnt cxpcrts arc dominatcd
by myths such as thc bclicl that wc can donatc pcoplc out ol povcrty,
dollaraday lamilics thcmsclvcs havc clcar vicws about thc main rca
son lor thcir continucd povcrtyinsucicnt incomc. Thcy also havc
clcar idcas about what can bc donc to incrcasc thcir incomc. 8y adopt
ing thcir vicws, ! has cncouragcd smallacrcagc larmcrs to invcst in
divcrsicd, highvaluc, laborintcnsivc cash crops such as a varicty ol
lruits, vcgctablcs, and hcrbs. Stimulating thc cmcrgcncc ol privatc
scctor supply chains has providcd acccss to aordablc irrigation, sccds,
and lcrtilizcrs. !, TcchnoScrvc, and many othcr organizations havc
stimulatcd acccss to markcts whcrc oncacrc larmcrs can scll thcir
crops through privatcscctor valuc chains. 8y applying thcsc principlcs,
! has bccn ablc to hclp bctwccn a. million and million dollara
day lamilics to incrcasc thcir nct annual incomc signicantly. ach ol
thcsc lamilics madc considcrablc invcstmcnts ol thcir own timc and
moncy to movc out ol povcrty.
Total invcstmcnts by ! and its donors in initiativcs to cnd rural
povcrty ovcr thc past twcntyvc ycars wcrc s, million. uring thc
samc timc pcriod, dollaraday larmcrs invcstcd a total ol s. million
in incomcgcncrating tools promotcd by !. Thcir invcstmcnts gcn
cratcd sa million pcr ycar in pcrmancnt ncw nct incomc. Takcn ovcr
scvcn ycars, thc nct rcturn to dollaraday smallacrcagc larmcrs is
morc than sa billion (US) on a total invcstmcnt by both ! and its
smalllarm customcrs ol sa., million. Thcrc is a clcar pattcrn lor most
larmcrs to incrcasc stcadily both thcir invcstmcnts in highvaluc larm
ing and thc nct incomc thcy carn lrom it ovcr timc.
This is only a drop in thc buckct in thc contcxt ol ... billion dollar
aday pcoplc in thc world. Thc good ncws is that potcntially this
approach can bc scalcd up to movc cc million or morc rural dollar
aday pcoplc out ol povcrty.
0
50
100
150
200
250
300
$78
$139
$288
Total IDE costs Investment by
dollar-a-day farmers
Increase in net annual
income for dollar-a-day
farmers
U
S

D
o
l
l
a
r
s

(
m
i
l
l
i
o
n
s
)
Table 2: IDEs Impact over Twenty-five Years
,
8
OuL o PovcrLy
!t is clcar that without a rcvolution in thinking and practicc on thc
part ol thc dcvclopmcnt community, thc busincss community, and
poor pcoplc thcmsclvcs, wc will ncvcr bc ablc to cnd povcrty. 8ut il wc
lcarn to listcn to poor pcoplc, undcrstand thc spccic contcxts in which
thcy livc and opcratc, and nd ways to harncss thcir cntrcprcncurial
cncrgy to incrcasc thcir incomc, ! havc no doubt that at lcast cc mil
lion lamilics now surviving on lcss than a dollar a day will nd practical
ways to cnd thcir povcrty within onc gcncration.
Paul Polak, Bob Hyde, and a small-acreage farmer in India
with his treadle pump
Small-acreage farmer proudly shows his drip-irrigated
cucumbers.
It All Starts
with Making
Morc Moncy
cntr1cr 1nrcc
~v:vv xvisnx~ n~n~uuv :n~v~ ~xu i n~u co:v :o xxow
and trust cach othcr a bit as wc talkcd nonstop and walkcd togcthcr
through thc scattcrcd quartcracrc plots ol his twoacrc larm in klc
Phant villagc, ! askcd him a qucstion.
8ahadur, why arc you poor, and what could you do to stop bcing
poor:
Hc smilcd shyly and his cycs crinklcd, as il hc wcrc too politc to call
mc an idiot to my lacc or to ask mc il by any chancc ! might bc blind.
!m poor bccausc ! havcnt lound a way to carn morc moncy, hc
said.
l coursc, my lamily and ! arc vcry lucky comparcd with somc ol
our ncighbors. Vc havc two acrcs ol prctty good land, and wc can pro
ducc cnough ricc to kccp us lrom going hungry two ycars out ol thrcc.
Vc carn anothcr twcntyvc hundrcd rupccs (s US) lrom sclling
rainyscason vcgctablcs and somc black gram, and somctimcs somc
surplus ricc, and my son cu 8ahadur and ! can carn anothcr vc
:
OuL o PovcrLy
thousand rupccs or so lrom jobs in Mugling. Somctimcs wc takc thc bus
to look lor work in Kathmandu. 8ut that isnt rcally cnough to livc on.
Vc arc poor bccausc wc cant carn a dcccnt living lrom our larm,
and its hard to nd work. Vhcn wc do nd work, it docsnt last long
and docsnt pay cnough to livc on. Vithout our land, ! dont know how
wc could survivc.
!l wc could only gurc out a way to carn morc moncy lrom my
larm, wc would stop bcing poor vcry quickly.
uring thc last twcntyvc ycars, !vc talkcd with morc than thrcc
thousand poor lamilics all ovcr thc worldlamilics likc 8ahadurs
and thcy all tcll mc thc samc thing: thc singlc most important thing
thcy nccd to gct out ol povcrty is to nd a way to carn morc moncy.
This is so obvious that pcoplc tcll mc that it is a pcrlcct cxamplc ol
circular logic. 8ut thc sad lact is that it isnt at all obvious to thc grcat
majority ol thc worlds povcrty cxpcrts.
Poor pcoplc arc poor bccausc thcy havc no powcr, says onc inu
cntial group. Thcy arc victims ol a corrupt political systcm that main
tains its own powcr by kccping poor pcoplc powcrlcss. Find ways to
cmpowcr thc poor, givc thcm a voicc, givc thcm cntry to powcr in thc
political systcm that controls thcir livcs, and thcir povcrty will disappcar.
Poor pcoplc arc lockcd into povcrty bccausc thcy arc uncducatcd,
says a sccond group. How can you bc cxpcctcd to gain powcr ovcr
your lilc, or to know how to makc anything happcn, il you cant cvcn
rcad or writc, much lcss qualily lor a dcccnt job: A good cducation is a
human right, thcy say.
Providc thc childrcn ol vcry poor lamilics with a dcccnt cducation,
and within thc rst gcncration, thcy will stop bcing poor. At thc vcry
lcast, thcy will qualily lor dcccnt jobs.
Nonc ol thcsc things will hclp il you comc down with a bad casc
ol malaria oncc a month that kccps you lrom working, a third group
says. !l you livc in Zambia or Zimbabwc today, you stand a prctty
good chancc ol bcing an orphan by thc timc you arc twclvc bccausc
both ol your parcnts will bc dcad lrom H!\/A!S.
Thc most ccctivc way to cnd povcrty is to cradicatc major ill
ncsscs likc polio, malaria, tubcrculosis, and H!\/A!S which cripplc
poor pcoplc and cnsurc that thcy stay poor. Vc must put in placc pro
grams to kccp pcoplc hcalthy.
IL All SLarLs wiLh Making Morc Moncy

You arc all wrong! says still anothcr group ol povcrty cxpcrts.
Thc lact is that all thcsc things arc critically important. !l you only x
cducation and ignorc hcalth, yourc not that much bcttcr o. Vhat
good docs it do il a poor pcrson has a good cducation and thcn is crip
plcd by malaria bclorc hc is twcnty: Addrcssing onc kcy lactor likc
transport or agriculturc, or irrigation or drinking watcr or hcalth
docs no good unlcss you x thc problcms in all thc othcr kcy arcas at
thc samc timc. !t will cost a lot ol moncy. 8ut its thc only way to cnd
povcrty oncc and lor all.
Poor hcalth, poor cducation, and lack ol acccss to watcr and sani
tation, and thc othcr root causcs ol povcrty all havc to bc addrcsscd
ccctivcly at thc samc timc to havc any hopc ol cnding povcrty.
So now who arc wc to bclicvcpoor pcoplc thcmsclvcs, likc
8ahadur and his lamily, or most ol thc worlds povcrty cxpcrts:
n thc lacc ol it, thc notion that poor pcoplc arc poor bccausc thcy
dont havc cnough moncy sccms hard to challcngc. !ts obvious il you
talk to poor pcoplc and listcn to what thcy havc to say.
8ut it isnt so obvious il you start thinking too hard about it.
Listcn, lor instancc, to what prolcssors Paul Hunt, Manlrcd Nowak,
and Siddiq smani havc to say in a UN publication on povcrty and
human rights.
Thcrc is an cmcrging vicw that povcrty constitutcs a dcnial or
nonlulllmcnt ol human rights. 8ut docs this mcan that povcrty is
thc samc thing as nonlulllmcnt ol human rights in gcncral i.c.,
docs thc nonlulllmcnt ol any kind ol human rights constitutc
povcrty: r should only ccrtain kinds ol human rights mattcr in thc
contcxt ol povcrty: !l so, how arc wc to dccidc which oncs, and can thc
discoursc on povcrty bc indicrcnt to thc rcst: Thcsc arc thc kinds ol
qucstions that nccd to bc addrcsscd.'
And thcsc arc thc kinds ol discussions that go on in thc povcrty cld.
How on carth did things gct so complicatcd:
A littlc bit ol history might hclp cxplain it. Thc idca that rich
countrics could hclp poor countrics movc out ol povcrty has its roots
in thc dramatic succcss ol thc Marshall Plan in rcstoring thc
cconomics ol uropc altcr Vorld Var !!. !n lact, thc Vorld 8ank was
thcn known as thc 8ank lor Rcconstruction and cvclopmcnt. 8ut
whcn thc 8ank tricd to apply Marshall Plantypc stratcgics to thc
OuL o PovcrLy
cconomics ol vcry poor countrics, thcy lailcd miscrably. nc ol thc
rcasons put lorward lor thc lailurc was that povcrty was too complcx
to bc solvcd with cconomic stratcgics alonc, and corts to incrcasc thc
incomc ol poor pcoplc bcgan to bc rcgardcd as hopclcssly simplistic.
Thc !ntcgratcd Rural cvclopmcnt movcmcnt in thc .cs, lor cx
amplc, asscrtcd that any cort to addrcss only a singlc contributor to
povcrty is dcstincd to lail. Sincc povcrty is multidimcnsional, initia
tivcs to cnd povcrty had to addrcss all ol thc kcy root causcs ol povcrty
simultancously to bc ccctivc. ! thought this was quitc silly, and wrotc
a papcr callcd Scgrcgatcd Rural cvclopmcnt to which no onc paid
any attcntion. Not surprisingly, it provcd to bc just about impossiblc
lor any singlc organization to implcmcnt ccctivc initiativcs in hcalth,
cducation, transport, drinking watcr, housing, agriculturc, womcns
rights, and lood sccurity all at thc samc timc, so thc !ntcgratcd Rural
cvclopmcnt movcmcnt lailcd.
l coursc, most major problcms arc complcx, and il you want to
undcrstand a complcx problcm, you havc to rcach a thorough undcr
standing ol cach ol its root causcs and how thcy intcract. 8ut nding a
practical solution rcquircs a dicrcnt stratcgy. !t is morc a mattcr ol
nding thc simplcst singlc lcvcr capablc ol producing thc biggcst
positivc rcsult.
Malaria is a pcrlcct cxamplc ol a complcx problcm. !t has a complcx
lilc cyclc in its human and anophclcs mosquito hosts, and a complcx
proccss govcrning thc cvolution ol strains rcsistant to antimalaria
mcdication, all lactors that arc proloundly inucnccd by changcs in thc
cnvironmcnts ol both thc mosquito and thc human parasitc hosts. Yct
a singlc, rclativcly simplc, lowcost intcrvcntion can lowcr thc incidcncc
and prcvalcncc ol malariathc widcsprcad introduction ol aordablc
insccticidcimprcgnatcd mosquito bcd ncts.
!n spitc ol thc complcxity ol thc discasc, thc introduction ol a simplc
barricr that prcvcnts inlcctcd anophclcs mosquitocs lrom injccting
malaria parasitcs into thc bloodstrcams ol pcoplc can stop thc sprcad
ol malaria inlcction in its tracks. And il thcrc arc lcwcr pcoplc around
carrying malaria parasitcs, lcwcr mosquitocs gct inlcctcd by biting
thcm. So malaria ratcs cvcntually go down, cvcn lor pcoplc without
mosquito ncts.

Such simplc but critical highlcvcragc intcrvcntions can gcncratc
signicant positivc impacts on multiplc lronts. ! hcar vcry lcw pcoplc
complaining that thc distribution ol mosquito bcd ncts is a ridicu
lously simplistic approach to thc complcx problcm ol malaria, or that
thc usc ol pcnicillin is a ridiculously simplistic approach to thc com
plcx problcm ol pncumococcal pncumonia. Yct many lcadcrs in dcvcl
opmcnt continuc to scorn thc scarch lor rclativcly simplc, lowcost,
highlcvcragc solutions to thc complcx problcm ol povcrty.
! havc no doubt that thc most important lowcost, highlcvcragc
solution to thc complcx issuc ol povcrty is hclping poor pcoplc in
crcasc thcir incomc. ocs this mcan that incrcasing thc incomc ol
poor pcoplc solvcs all thc complcx root causcs ol povcrty by itscll:
Ccrtainly not. And what impact would it havc, il any, on cducation,
hcalth, agriculturc, and thc othcr root causcs ol povcrty: Thc bcst way
to answcr this qucstion is to lct poor pcoplc who havc incrcascd thcir
incomc spcak lor thcmsclvcs.
! mct John Mbingwc in an isolatcd rural villagc in Zambia in acc..
A lanky man in ovcralls, hc walkcd us at a lcisurcly pacc lrom thc pot
holcd dirt road past ycllowlcavcd stands ol rainlcd maizc to thc onc
acrc plot ol vcgctablcs hc grcw lor thc Livingston markct twcntyvc
kilomctcrs away. For ycars, hc had bccn growing vcgctablcs by carrying
watcr in buckcts lrom thc crudc vclootdccp wcll hc and his wilc
had dug with a spadc in thc marshy part ol his land callcd a dambo.
8ut carrying watcr by buckct is vcry hard work, and hc and his wilc
workcd long hours to irrigatc an cighth ol an acrc ol vcgctablcs. Thcn
thcy borrowcd cnough moncy to install a trcadlc pump that thcy bought
lrom a local dcalcr. Vith lcss labor than it took to watcr an cighth ol
an acrc by buckct, hc and his lamily suddcnly lound thcy could pro
ducc a lull acrc ol vcgctablcs. Vithin a ycar thcy had paid o thc loan
lor thc pump, incrcascd thcir nct annual incomc lrom thrcc hundrcd
to six hundrcd dollars, and thcy wcrc on thcir way to carning morc.
Vhat do you spcnd it on: ! askcd.
First ol all, my wilc and ! arc making surc our two sons havc a
good cducation, hc said. Thc govcrnmcnt schools arc lrcc till gradc
six, but bcyond that, wc havc to pay lor school unilorms and books and
somc tuition, and that was just impossiblc lor us bclorc wc incrcascd
our incomc. 8clorc, wc could barcly aord buying clothcs oncc a ycar
lor thc boys, and buying school unilorms was out ol thc qucstion,
cspccially sincc wc somctimcs didnt cvcn havc cnough to cat.
Now wc buy dcccnt clothcs, wc put thrcc mcals on thc tablc all
ycar, and both boys will graduatc lrom high school. My wilc and ! will
havc to do morc ol thc work, but thcy can hclp us with thc vcgctablcs
bclorc thcy go to school and altcr school till it gcts dark.
Vc arc thinking ol invcsting in a uscd dicscl pump so wc can irri
gatc morc land. And wc arc going to try growing paprika and maybc
somc marigolds ncxt ycar. nc problcm is that wc alrcady havc troublc
doing thc wccding and all thc othcr work wc havc to do lor a wholc
acrc ol vcgctablcs.
ocs ! havc any laborsaving tools wc can usc:
Johns story is typical. Most poor pcoplc put a high priority on cdu
cating thcir kids. !n countrics likc !ndia and 8angladcsh, whcrc dowrics
arc a lact ol lilc, thcy cducatc thcir sons but not always thcir daughtcrs.
Thc most important invcstmcnt lor thcir daughtcrs is to savc lor a
dowry. !t costs an avcragc ol a ycars wagcs to providc a big cnough
dowry to attract a husband capablc ol providing lor a daughtcr lor thc
rcst ol hcr lilc.
Tablc shows how onc group ol larmcrs in Ncpal invcstcd thc ncw
incomc thcy carncd lrom growing oscason vcgctablcs using !
lowcost dripirrigation systcms.
Vhat impact docs incrcasing thc incomc ol poor pcoplc havc on
thc powcrlcssncss that so many povcrty cxpcrts bclicvc is thc primary
causc ol povcrty: xtrcmcly poor lamilics gct thcir rights tramplcd on
rcgularly. 8ut what is thc most dircct path to powcr lor powcrlcss poor
pcoplc: !ncrcascd incomc! Poor pcoplc dont usually talk much about
powcr whcn ! ask thcm how thcy invcst thcir ncw incomc, but you can
casily scc thc unobtrusivc signs ol thcir incrcascd pridc, asscrtivcncss,
and political inucncc.
!n many rural arcas, watcr is powcr. !n poor villagcs whcrc !
workcd in castcrn !ndia and 8angladcsh, richcr larmcrs with morc
land owncd big, cxpcnsivc wclls that providcd thc only sourcc ol irri
gation watcr. Thc local pcoplc callcd thcm watcr lords, bccausc with
control ol watcr, thcy could control thc smallacrcagc poor larmcrs
6
OuL o PovcrLy
whom thcy paid vcry low wagcs. 8ut irrigation watcr was availablc
twclvc lcct bclow thc surlacc, and whcn wc madc cightdollar trcadlc
pumps availablc, smallacrcagc larmcrs gaincd acccss to thcir own
sourcc ol irrigation watcr. Thc monopolistic powcr thc watcr lords had
ovcr thcm was brokcn. Thc watcr lords still had paying jobs that small
acrcagc larmcrs nccdcd, but now thc poorcr larmcrs could ncgotiatc
lair markct wagcs.
Vhat about housing:
Vhcn Abdul Rahman, a 8angladcshi larmcr, startcd carning onc
hundrcd dollars a ycar in ncw incomc lrom growing and sclling irri
gatcd vcgctablcs, onc ol thc rst things hc and his lamily did was
install a corrugatcdtin rool. nc Scptcmbcr ! was having tca with
thcm in thcir small courtyard outsidc thcir tworoom thrcchundrcd
squarcloot mudandwattlc housc. A littlc hut bcsidc it scrvcd as a
kitchcn. Suddcnly it bcgan to rain hard, so wc wcnt insidc. Thc rain on
0
5
10
15
20
25
30
35
40
F
o
o
d
A
g
r
i
c
u
l
t
u
r
e
P
r
o
d
u
c
t
i
o
n
E
d
u
c
a
t
i
o
n
C
l
o
t
h
i
n
g
F
e
s
t
i
v
a
l
s
H
o
m
e

I
m
p
r
o
v
e
m
e
n
t
s
a
n
d

O
t
h
e
r
M
e
d
i
c
i
n
e
S
a
v
i
n
g
s
P
e
r

C
e
n
t
Table 3: How Small-Acreage Farmers in a Hill Village in Nepal
Invested the New Income They Earned from Growing Vegetables
,
8
OuL o PovcrLy
thc corrugatcd tin rool soundcd likc sixtccn machinc gun battcrics r
ing simultancously, and all convcrsation stoppcd. 8ut thc thatchcd rool
it rcplaccd had lcakcd likc a sicvc, and undcr corrugatcd tin, thc shiny
clay/dung oor was dry. Not only that, but corrugatcd tin brought status
and admiration lrom thc ncighbors.
ocs incrcascd incomc do anything lor a poor lamilys hcalth:
A thirtyycarold larmcr in a rcmotc rural arca in 8ihar had tcars
in his cycs whcn hc told mc about thc scrious illncss his wilc had comc
down with thrcc ycars carlicr.
Shc coughcd a lot ! think shc had somc kind ol chcst inlcction,
hc said. ! didnt havc thc moncy to buy mcdicincs lor hcr. Shc had a
tcrriblc lcvcr, but altcr two days shc sccmcd much bcttcr. Thcn shc
dicd in thc middlc ol thc night. ! dont know what ! would do il !
didnt havc my sistcr to hclp with my childrcn.
!l hc had had a bcttcr incomc, this larmcr could havc takcn his wilc
to a clinic or a local hcalcr. Thc clinic might havc bccn out ol mcdi
cincs and thc local hcalcr might or might not havc bccn ablc to hclp,
but il thc clinic or thc local lolk hcalcr had posscsscd thc knowlcdgc to
asscss his wilcs illncss and thc right mcdicincs to trcat it, shc might
still bc alivc.
Vhcn pcoplc arc too poor to pay lor hcalth scrviccs, thcy can only
acccpt what thc govcrnmcnt or donors providc. Vhcn pcoplc havc thc
capacity to pay, thcy arc likcly to choosc and shapc thc hcalth scrviccs
that arc important to thcm. Thc samc lrccdom ol choicc gocs lor thc
schools whcrc thcy scnd thcir childrcn. !ncrcascd incomc providcs
morc powcr and morc choiccs.
8ut incrcascd incomc improvcs lamily hcalth in othcr ways as wcll.
Most poor pcoplc who survivc on lcss than a dollar a day cat a vcry
limitcd dict a staplc lood such as ricc, whcat, or corn, and dicrcnt
varictics ol bcans providing a balancc ol all thc csscntial amino acids.
A morscl ol sh or mcat might bc addcd as a trcat oncc a month, and
lruits or vcgctablcs arc oltcn prctty scarcc. !l thcy start to grow vcgcta
blcs lor thc markct, thcy always cat at lcast thc oncs that arc ovcrripc
or havc wormholcs, and many lamilics cat as much as hall thc vcgcta
blcs thcy grow, cvcn though thcy could makc morc moncy by sclling
thcm all instcad. Fruits and vcgctablcs, cvcn thc oncs with wormholcs,

add vital mincrals and vitamins to thc dict ol thc poor. Somc childrcn
in vcry poor rural lamilics go blind lrom vitamin A dccicncy, a con
dition that is prcvcntablc by cating ycllow vcgctablcs. Most dollara
day lamilics go hungry lor two or thrcc months a ycar, which makcs
thcm much morc vulncrablc to discasc. nc ol thc rst things thcy
spcnd thcir ncw incomc on is buying thc lood thcy nccd to assuagc
thcir hungcr.
Most vcry poor lamilics havc no acccss to clcan watcr, so thcy drink
watcr loadcd with pathogcns. Thcy usually know that this givcs thcir
childrcn diarrhca, which puts young childrcn at risk ol dying, but thcy
havc no choicc. Vith a littlc cxtra incomc, thcy invcst in a scvcndollar
watcr ltcr or a lowcost hand pump. Vhcn ! was ablc to halvc thc
cost ol installcd hand pumps in \ictnam, national salcs doublcd. !n
most rural culturcs, whcn a lamily installs a lowcost hand pump, thc
ncighbors arc wclcomc to usc it too. A surprising numbcr ol poor rural
lamilics in \ictnam havc now dcmonstratcd that whcn thc markct
placc makcs lowcost latrincs availablc, thcsc lamilics arc also willing
and ablc to invcst in oncs that t thcir prclcrcnccs.
Vhcn a lamily incrcascs its incomc, its mcmbcrs arc likcly to bc
hcalthicr, gct sick lcss oltcn, and stay sick lor shortcr pcriods ol timc.
l coursc, this docs not climinatc thc nccd lor publicly lundcd clinics
and lor initiativcs to contain such scrious illncsscs as malaria, tubcrcu
losis, and H!\/A!S.
ocs incrcasing thc incomc ol poor pcoplc makc any dicrcncc lor
agriculturc: For thc rural poor, rcinvcstmcnt in agriculturc is a major
opportunity to continuc to incrcasc incomc, so it is not surprising that
a signicant pcrccntagc ol ncw incomc is rcinvcstcd in livcstock or
improvcd larming and, il thcrc is a rcal windlall, in purchasing a littlc
morc land. Many invcst in cxpandcd irrigation or improvcd sccds and
morc lcrtilizcr, so thcy can carn morc lrom thcir ncxt crop without
having to wait lor thc govcrnmcnt or donors to assist thcm.
\cry poor pcoplc who livc in urban slums rarcly grow much, al
though somctimcs thcy havc acccss to small patchcs ol land whcrc
thcy can grow cash crops. !l thcy arc lucky cnough to land a job that
pays wcll, thcy arc morc likcly to invcst somc ol thcir incomc in trad
ing or in smallbusincss opportunitics than in growing things.
o poor lamilics invcst much ol thcir ncw incomc in improvc
mcnts in cncrgy: Thc most common cncrgy sourcc lor poor pcoplc is
thcir own backs. Thcrc arc million or morc smallacrcagc larmcrs in
Alrica who usc buckcts to carry watcr to thcir crops lrom strcams or
ponds. Thcy arc quick to invcst in morc ccicnt ways to harncss thcir
own cncrgy, dcviccs such as trcadlc pumps or lowcost dripirrigation
systcms that savc cncrgy by dccrcasing thc amount ol watcr that has to
bc liltcd manually lrom a wcll.
Most dollaraday larmcrs cultivatc with hocs. A tractor is a distant
drcam, and so is spcnding a hundrcd and lty dollars lor a dralt ani
mal. A lcw arc ablc to pay lor a ncighbor to bring his bullock and
plow to prcparc thcir ricc clds lor planting.
Most vcry poor rural lamilics havc no acccss to clcctricity, and ol
tcn pay two to vc dollars a month lor candlcs, kcroscnc lor a lamp,
and ashlight battcrics. So thcy go to slccp whcn it gcts dark, and thcy
gct up at dawn. Many urban slum dwcllcrs gct illcgal acccss to clcctric
ity by throwing a wirc ovcr a powcr linc, but that sourcc is unavailablc
to thc rural poor. Vith ncw sourccs ol incomc, poor lamilics in both
urban and rural arcas rcadily invcst in aordablc improvcd cncrgy
sourccs lor thcir houscholds, such as thrccdollar rcchargcablc ash
lights or twclvcdollar solar lantcrns.
Thc varicty ol goods transportcd on pcoplcs backs in poor villagcs
is astonishing. Most vcry poor pcoplc can only drcam ol owning a bi
cyclc. Vhcn thcsc pcoplc carn morc moncy, many buy a uscd bicyclc,
which thcy usc lor hauling things morc than lor pcrsonal transport.
8ut thcir most popular transport tcchnology is that ol using thcir own
two lcct. Poor pcoplc ccrtainly usc buscs and rickshaws somctimcs, bc
causc thcy arc chcap. onkcys, bullocks, and camcls all arc uscd to pull
carts, but lor most vcry poor pcoplc, all thcsc animals arc too cxpcnsivc
to buy. For somc city slum dwcllcrs, opcrating a rickshaw providcs a
sourcc ol incomc. 8ut that rickshaw pullcr most likcly lcascs thc rick
shaw lrom an owncr ol a rickshaw cct.
!t all boils down to this: Vhilc it ccrtainly is truc that powcrlcss
ncss, poor hcalth, poor cducation, and abscnt transport inlrastructurc
arc important root causcs ol povcrty, thcrc can bc no qucstion that thc
most dircct and costccctivc rst stcp out ol povcrty is to nd ways
6o
OuL o PovcrLy
6
to hclp poor pcoplc to incrcasc thcir incomc. This allows thcm to
makc thcir own choiccs about which root causcs ol povcrty to addrcss.
Thc most ccctivc way to hclp poor pcoplc incrcasc thcir incomc is to
bring ncw lilc and protability to thc grassroots cntcrpriscs, such as
small larms in rural arcas and countlcss small busincsscs in urban
slums, whcrc poor pcoplc carn thcir livings.
Thatched-roof, dung-and-wattle house (India) with no
market value and no collateral value
6
cntr1cr rour
Lcsign or
thc Othcr
c Pcrccnt
wnvx n~n~uuvs v~:iiv, wi:n :nv nviv ov nvivv:~s,
gaincd acccss to a hallinch pipc lull ol watcr coming to thcir housc,
thcy saw right away that thcy could usc it to watcr a lcw vcgctablcs.
Thcy just hcld thc pipc and lct thc watcr lall onto thc plants. 8ut thcy
couldnt gurc out how to usc it to irrigatc a wholc cld ol vcgctablcs.
l coursc, thcy had ncvcr hcard ol drip irrigation, and cvcn il thcy
had, thc smallcst availablc drip systcm would havc cost two thousand
dollars, lar morc than 8ahadurs lamily could aord.
A worldclass irrigation cxpcrt likc Jack Kcllcr probably could havc
givcn thcm thrcc practical solutions to thcir problcm in tcn minutcs,
but thcrc wcrc no Jack Kcllcrs availablc. 8ahadur and his lamily had
no knowlcdgc ol modcrn plastics, or thcy might havc bccn ablc to dc
sign a usablc lowcost drip systcm thcmsclvcs. ! lcarncd about larmcrs
in Thailand who dcsigncd thcir own lowcost drip systcm by lctting
watcr dribblc out ol discardcd intravcnous tubcs thcy got lrom a
hospital and inscrtcd into plastic watcr lincs. 8ut without thc hclp or
inlormation thcy nccdcd, 8ahadurs lamily was stuck. Smallacrcagc
larmcrs likc 8ahadur havc hundrcds ol critical problcms likc this that
modcrn dcsigncrs with acccss to worldwidc inlormation could solvc
rapidly.
Thc problcm is that c pcrccnt ol thc worlds dcsigncrs spcnd all
thcir timc working on solutions to thc problcms ol thc richcst .c pcr
ccnt ol thc worlds customcrs. A rcvolution in dcsign is nccdcd to
rcvcrsc this silly ratio and rcach thc othcr c pcrccnt.
Transport cnginccrs work to crcatc clcgant shapcs lor modcrn cars
whilc most ol thc pcoplc in thc world drcam ol bcing ablc to buy a
uscd bicyclc. As dcsigncrs makc products morc stylish, ccicnt, and
durablc, priccs go up, but pcoplc with moncy arc ablc and willing to
pay. !n contrast, thc poor in dcvcloping countrics who outnumbcr
thcir rich, urban countcrparts by twcnty to onchavc only pcnnics to
spcnd on hundrcds ol critical ncccssitics. Thcy arc rcady to makc any
rcasonablc compromisc in quality lor thc sakc ol aordability, but
nothing is availablc in thc markctplacc to mcct thcir nccds.
Thc lact that thc work ol modcrn dcsigncrs has almost no impact
on most ol thc pcoplc in thc world is not lost on thosc cntcring thc
dcsign cld. 8crnard Amadci, an cnginccring prolcssor at Univcrsity
ol Colorado in 8ouldcr, tclls mc that cnginccring studcnts all ovcr thc
Unitcd Statcs and Canada arc ocking to takc advantagc ol opportu
nitics madc availablc by organizations such as nginccrs Vithout
8ordcrs to work on problcms such as dcsigning and building aord
ablc rural watcrsupply systcms in poor countrics.
!l studcnts can makc mcaninglul contributions to dcsign lor poor
customcrs, why docs this arca continuc to bc ignorcd: !s it bccausc it is
much morc dicult than dcsigning lor thc rich: ! dont think so.
How ComplicaLcd Is IL Lo Dcsign or Lhc Poor`
You dont nccd a dcgrcc in cnginccring or architccturc to lcarn how to
talk with and listcn to poor pcoplc as customcrs. !vc bccn doing it lor
twcntyvc ycars. Thc things thcy nccd arc so simplc and so obvious
that it is rclativcly casy to comc up with ncw, incomcgcncrating prod
ucts lor which thcy arc happy to pay. 8ut thcsc products havc to bc
chcap cnough to bc aordablc to thc poor.
6
OuL o PovcrLy
Twcntythrcc ycars ago in Somalia, !ntcrnational cvclopmcnt
ntcrpriscs undcrtook its rst projcct by hclping rclugcc blacksmiths
build and scll vc hundrcd donkcy carts to lcllow rclugccs. 8ut thcrc
arc a lot ol thorns on thc dirt roads in Somalia thcy travclcd, and
nowhcrc lor a donkcy cart owncr to buy tools to x at tircs. So ! wcnt
to Nairobi and bought tubcpatch kits, a largc numbcr ol goodquality,
twclvcdollar, 8ritishmadc lug wrcnchcs that carricd a virtual lilctimc
guarantcc, and a lcw sixdollar Chincscmadc modcls that would bc
lucky to last six months. ! ocrcd both typcs ol lug wrcnchcs lor salc
to donkcy cart owncrs at my cost.
To my amazcmcnt, thc Chincsc lug wrcnchcs sold likc hotcakcs,
whilc ! lailcd to scll a singlc 8ritish modcl. How could this bc: Altcr
talking to a lot ol donkcy cart owncrs, ! rcalizcd a donkcy cart opcrator
could gcncratc cnough incomc in onc month to buy tcn 8ritishmadc
lug wrcnchcs, but il hc didnt havc thc moncy to buy a lug wrcnch to x
todays at tirc, hc would carn nothing and might cnd up losing his don
kcy cart. So hc bought thc wrcnch hc could aord in ordcr to stay in
busincss today and carn morc moncy lor tomorrow. Hundrcds ol poor
pcoplc ! talkcd to told mc thc samc kind ol story. For thc a., billion pco
plc in thc world who carn lcss than two dollars a day, aordability rulcs.
Thc RuLhlcss PursuiL o AordabiliLy
\incc Lombardi, lamous coach ol thc Grccn 8ay Packcrs, oltcn said
to his lootball playcrs, Vinning isnt cvcrything, its thc only thing.
Vith onc word changc, thc samc scntimcnt applics to thc proccss
ol dcsigning products to scrvc poor customcrs: Aordability isnt
cvcrything. !ts thc only thing.
! havc to conlcss that ! am a born chcapskatc, so thc notion ol put
ting aordability rst comcs naturally. Vhcn ! nccd an umbrclla, in
stcad ol buying a thirtycightdollar dcsigncr modcl in thc dcpartmcnt
storc, ! opt lor a lunctional black onc bought lor onc dollar at thc local
ollarama, whcrc cvcrything costs a dollar or lcss. ! know thc thirty
cightdollar modcl will last a lot longcr, but ! also know that ! will
probably lorgct it somcwhcrc within a month. !l that oncdollar um
brclla kccps my hcad dry lor just onc rain showcr or, bcttcr still, lor a
6
Dcsign or Lhc OLhcr o PcrccnL
66
OuL o PovcrLy
couplc ol months bclorc ! losc it, !vc savcd myscll thirtyscvcn dollars.
Thc rural poor think in much thc samc way, with onc critical dil
lcrcnccthcy will kccp that oncdollar umbrclla in good working
ordcr lor scvcn ycars, at thc cnd ol which it will havc morc patchcs on
it than Jacobs coat and thrcc or lour improviscd splints on thc handlc
yct will still bc usablc lar into thc luturc.
Thcrc is anothcr big dicrcncc. To carn a singlc dollar, an unskillcd
laborcr in thc Unitcd Statcs nccds only to work about tcn minutcs,
whilc his countcrpart in 8angladcsh or Zimbabwc must work lor two
lull days. Thc cquivalcnt ol a ollarama in thc dcvcloping world would
bc a Pcnnyrama. To lcarn how to comc up with aordablc products lor
poor customcrs in dcvcloping countrics, Vcstcrn dcsigncrs would do
wcll to start with a brainstorming cxcrcisc to dcvclop a scrviccablc
tcnccnt umbrclla. 8ut dcsigncrs in thc industrializcd world continuc
to dcsign thc cquivalcnt ol thirtycightdollar umbrcllas lor thc
worlds rural poor.
How Many AnLs Docs IL Takc Lo Makc a Horsc`
Put yourscll in thc shocs ol Pctcr Mukula, a poor larmcr who livcs
along a dusty road twcntyvc kilomctcrs lrom Livingstonc in south
crn Zambia. !l hc could aord to buy a packhorsc, hc could makc an
cxtra six hundrcd dollars a ycar hauling vcgctablcs to thc Livingstonc
markct. 8ut thcrcs no way hc can bcg, borrow, or stcal thc vc hun
drcd dollars it would takc to buy a horsc today. Try this braintcascr
scc il you can think ol a practical solution to Pctcrs dilcmma.
Lct mc throw out somc crazy idcas. Vhat il Pctcr could buy a
quartcrhorsc: Not a purcbrcd quartcr horsc, but a horsc thats a quar
tcr thc sizc ol a rcgular packhorsc. Lcts assumc that hc could buy such
a miniaturc horsc lor onc hundrcd and lty dollars and that it could
pack sixty kilograms. Pctcr would carn lcss moncy cach trip, but hc
could gradually usc his prots to buy morc miniaturc horscs. ncc hc
owncd lour ol thcm, thcy would bc hauling thc samc two hundrcd and
lorty kilos as a lullsizc packhorsc.
8ut cvcn il a small packhorsc wcrc availablc, onc hundrcd lty dol
lars is still lar morc than what Pctcr could aord to pay. Pcrhaps hc
6,
could nd a pygmy horsc onctwcllth thc sizc ol a standard horsc that
would cost lty dollars and carry twcnty kilos. Altcr vc ycars, Pctcr
might bc ablc to cxpand to a string ol twclvc pygmy horscs and carn
thc six hundrcd dollars a ycar, thc samc as hc would with a lullsizc
packhorsc. !ntcrcstingly cnough, purcbrcd miniaturc horscs thirtyvc
inchcs high and wcighing onc hundrcd lty to thrcc hundrcd pounds
arc availablc. Unlortunatcly, thcy cost ltccn hundrcd to thrcc thou
sand dollars!
Hcrcs an cvcn crazicr idca. Supposc wc could invcnt a way to har
ncss thc rcmarkablc strcngthtowcight ratio ol thc common lorcst
ant: An cnginccring class in Gcrmany dcsigncd tiny wcights that
could bc attachcd to an ants back and dctcrmincd that lorcst ants can
carry as much as thirty timcs thcir own wcight. (A human can only
carry about doublc.) How many ants would it takc to carry thc samc
load as a packhorsc:
! did thc numbcrs. !t would takc ..a million ants to carry Pctcrs
two hundrcd lorty kilos. Now ..a million ants would comc prctty
chcap. 8ut dcsigning thc harncss would bc a challcngc.
! havc takcn you through this imaginary dcsign sccnario to illus
tratc thc ccntral task ol dcsigning lor poor customcrs coming up
with brcakthroughs in both miniaturization and aordability, lollowing
cxactly thc samc proccss as Hcnry Ford or Jobs and Vozniak. Thc
ncxt stcp in thc holy trinity ol aordablc dcsign is to makc thc ncw
product innitely expandable. !l a larmcr nccds to dripirrigatc hall an
acrc (two thousand squarc mctcrs) but docsnt havc cnough cash to buy
a hallacrc drip systcm, hc can buy a oncsixtccnthacrc drip systcm and
usc thc two hundrcd lty dollars in nct incomc it gcncratcs to cxpand
to a hallacrc systcm in thc sccond ycar.
From ForcsL AnLs Lo Lhc Aswan Dam
Now, il you think thc proccss ol brcaking a horsc into twclvc aord
ablc picccs is complicatcd, try wrapping your mind around thc prob
lcm ol brcaking down thc Aswan ams watcr storagc capacity into
millions ol antsizc picccs rcprcscnting thc small larms that could bc
nourishcd by thc watcr storcd in vchundrcdkilomctcrlong Lakc
Nasscr. 8ig dams such as Aswan arc built to providc answcrs to thc
twin global problcms ol ooding and watcr scarcity. 8ut whcn it comcs
to dclivcring irrigation watcr to poor, oncacrc larms, giant dam watcr
storagc systcms arc usually ol littlc hclp.
Thc Nawsa Mad SysLcm
Spcll Aswan am backward and you gct Nawsa Mad. This luturistic
systcm would smooth out somc ol thc pcaks and vallcys bctwccn
pcrcnnial ooding and drought with thc samc stratcgy uscd by thc
Aswan am, but shrunk down to onc lourmillionth ol its sizc so that
it ts a twoacrc larm and a smallacrcagc larmcrs pockctbook. !t is
thc ant to thc Aswan ams horsc.
!n May acc, ! was intcrvicwing larmcrs in Maharastra, !ndia, who
wcrc using lowcost dripirrigation systcms to makc thc watcr in thcir
opcn wclls strctch a lot lurthcr than thc ood irrigation thcy had bccn
using. 8ut thc sixtylootdccp, twcntyvclootdiamctcr wclls that
wcrc thc only sourcc ol irrigation watcr during thc dry scason cost onc
hundrcd thousand rupccs to build (about two thousand dollars US).
8ccausc thc wclls wcrc so cxpcnsivc, only a to c pcrccnt ol thc larm
crs in Maharastra owncd onc. Thc rcst carncd a paltry incomc lrom
rainlcd larming and could survivc only by nding work outsidc thcir
larms.
8ut rainwatcr ran o thcir clds in shccts during thc monsoon sca
son in Junc, July, and August. Vhat il wc could nd a chcap, simplc
way to trap somc ol this monsoon rainwatcr and storc it until thc dry
scason lrom March to May, whcn vcgctablc and lruit priccs wcrc at
thcir pcak, and dclivcr thc watcr to crops through a lowcost drip
irrigation systcm:
To crcatc a miniaturizcd, onlarm vcrsion ol thc Aswan am, wc
had to nd ways to:
.. Collcct monsoon rainwatcr on individual larms.
a. Scttlc out thc silt and mud in it bclorc storing it.
. Storc it lor six months with no cvaporation.
68
OuL o PovcrLy
. clivcr it lrom storagc to crops without wasting a drop.
. Most importantly, dcvclop thc wholc systcm chcaply cnough to
bc aordable to a poor larm lamily living on thrcc hundrcd dol
lars a ycar, protable cnough to pay lor itscll in thc rst ycar, and
innitely expandable using thc prots it gcncratcs.
Solutions lor ., a, and wcrc casy. Thcrc wcrc alrcady all kinds ol
rainwatcrharvcsting systcms in placc that collcctcd, scttlcd, and storcd
rainwatcr, and thc lowcost dripirrigation systcm dcsigncd by !
providcd thc mcans to dclivcr it ccicntly to crops. Thc critical miss
ing link was a zcrocvaporation, cncloscd watcrstoragc systcm lor
individual larms that was chcap cnough to pay lor itscll in thc rst
growing scason.
Vc cstimatcd that a larmcr could rcasonably bc cxpcctcd to clcar
lty dollars lrom dripirrigatcd, highvaluc crops grown on a onc hun
drcdsquarcmctcr plot in thc dry scason using tcn thousand litcrs ol
storcd watcr. So wc sct a rctail pricc targct ol lorty dollars lor thc tcn
thousandlitcr cncloscd storagc tank. This was a daunting targct, sincc
thc cost ol a tcnthousandlitcr lcrroccmcnt tank in !ndia starts at
two hundrcd lty dollars. So wc camc up with thc idca ol a tcnmctcr
long, doublcwallcd plastic sausagc in an carth trcnch. 8y using thc carth
around it lor structural support, wc could rcach our pricc objcctivc ol
lorty dollars lor a tcnthousandlitcr storagc tank. This would allow
larmcrs to harvcst monsoon rainwatcr, storc it lor six months or so with
out cvaporation losscs, and thcn apply it through a lowcost drip systcm
to dryscason crops that scll at two or thrcc timcs thcir normal priccs.
Thc Nawsa Mad conccpt makcs usc ol thrcc ncw, aordablc, small
plotirrigation tcchnologics that smallacrcagc larmcrs havc dcspcratcly
nccdcd lor ccnturics a vcry lowcost cncloscd watcrstoragc systcm
into which thcy can dircct monsoon rainwatcr, a lowcost ccicnt way
ol pumping watcr lrom storagc to thc cld, and a lowcost drip systcm
to dclivcr it ccicntly to highvaluc dryscason crops. You can takc thc
samc clcmcnts and usc thcm to crcatc a twohundrcdthousandlitcr
pond, with a plastic lincr and a oating lid, that costs lour hundrcd dol
lars and storcs cnough watcr to dripirrigatc a quartcr acrc ol dryscason
lruits and vcgctablcs that will carn vc hundrcd dollars altcr cxpcnscs.
6
Hcrc arc somc ol thc othcr critical, aordablc smalllarm irrigation
tools that ! and a lcw othcr organizations arc dcsigning, cldtcsting,
and markcting.
Improvcd trcadlc pumps that arc chcapcr and pump dccpcr
Scvcral multidisciplinary tcams at thc Stanlord dcsign school
havc crcatcd morc aordablc vcrsions ol trcadlc pumps lor
Myanmar, and KickStart has rcccntly introduccd a morc aord
ablc vcrsion lor Kcnya callcd thc hip pump.
Motorizcd ropc-and-washcr pumps for irrigation
Ropcandwashcr pumps providc aordablc watcrlilting at
dcpths bcyond thc rangc ol thc trcadlc pump. 8ccausc it is di
cult to usc human powcr alonc to lilt thc volumcs ol watcr rc
quircd lor irrigation, ropcandwashcr pumps combincd with
microdicscl cngincs havc potcntial to irrigatc highvaluc crops
lrom dccpcr watcr sourccs.
Iowcr-cost wind and solar pumping systcms
Photovoltaics and wind cncrgy havc bccn too cxpcnsivc lor small
larms, but ways ol conccntrating solar cncrgy and making morc
aordablc windmills hold promisc lor smallacrcagc larmcrs.
Improvcd low-cost wcll-drilling tools
Practica, a utch organization, and scvcral othcr dcvclopmcnt
organizations arc working to makc a varicty ol aordablc drilling
tcchniqucs availablc to small larms.
A rangc of aordablc cncloscd watcr-storagc systcms, with onc-
thousand- to thrcc-hundrcd-thousand-litcr capacity
Thcsc arc thc systcms ! havc dcscribcd in Chaptcr 6 on aordablc
irrigation lor small larms, which also dcscribcs thc dcvclopmcnt
ol thc microdicscl cnginc.
A onc-hundrcd-dollar quartcr-hp microdicscl pump sct
Iargcr low-cost drip systcms with prc-installcd cmittcrs
Thc dramatic drop in pricc lor drip irrigation has madc it protablc
lor smallacrcagc larmcrs to usc drip systcms on lowcrvaluc
,o
OuL o PovcrLy
crops such as cotton and sugar canc, and somc ol thcm arc cvcn
irrigating allalla lor thcir milk bualocs. ! bclicvc that lowcost
drip systcms likc thosc dcvclopcd by ! will, ovcr thc ncxt
tcn ycars, takc ovcr thc majority ol thc world markct lor drip
irrigation.
Iow-cost low-prcssurc sprinklcr systcms
Lowcost drip irrigation works wcll lor crops plantcd in rows. For
crops not plantcd in rows likc whcat, mustard, and clovcr thc
lowprcssurc aordablc sprinklcr systcm dcvclopcd by Jack Kcllcr
and ! in !ndia providcs morcccicnt watcr distribution than
docs thc ooding mcthod.
A low-cost small-plot pipcd-watcr surfacc-irrigation systcm
8y using a systcm ol thinwallcd tubcs to dclivcr watcr to hand
lormcd microrcscrvoirs, Jack Kcllcr and ! !ndia arc working
to dcvclop an ccicnt, lowcost surlaccwatcr dclivcry systcm
suitablc lor small plots.
Thcsc arc somc ol thc dcsign challcngcs lor aordablc smallplot
irrigation systcms. A similar array ol dcsign challcngcs cxist lor small
larm planting, harvcsting, and postharvcstproccssing tools. 8clow arc
somc cxamplcs.
A ftccn-dollar scythc for harvcsting ricc, corn, and whcat
This may surprisc you, but most ol thc smallacrcagc larmcrs in
thc world still usc a sicklc to harvcst thcir plots ol ricc and whcat.
This usually takcs scvcral days, and in somc placcs dclays planting
thc ncxt crop cnough that it is impossiblc to grow a third crop. l
coursc, in uropc, pcasants progrcsscd lrom sicklcs to scythcs, and
thcn to woodcnngcrcd scythcs callcd cradlcs, which bunchcd
thc grain at thc samc timc it was bcing cut. Thcsc tools wcrc rc
placcd by horscdrawn rcapcrs and, cvcntually, by modcrn com
bincs. !l wc wcnt back in history to nd thc most ccicnt dcvicc
to harvcst whcat or ricc lrom thc typical quartcracrc plots ol
dollaraday larmcrs, it would probably bc thc cradlc. Vc havc a
rangc ol modcrn incxpcnsivc, strongcr, lightcr matcrials such as
bcrglass that could bc uscd to improvc both thc woodcn handlc
,
and thc bladc ol thc scythcs and cradlcs uscd morc than a hundrcd
ycars ago. A ltccndollar cradlc would dramatically improvc thc
harvcsting ccicncy on millions ol small larms.
Postharvcst proccssing
Smallacrcagc larmcrs nccd a rangc ol ncw postharvcst proccss
ing tools capablc ol adding valuc at thc larm or thc villagc lcvcl,
parallcl to thc dcsign and disscmination ol aordablc smallplot
irrigation and harvcsting tools. Thcsc includc:
A ftccn-hundrcd-dollar and a vc-thousand-dollar stcam distil-
lation unit for csscntial oils
Thcsc units arc dcscribcd in Chaptcr .
A fty-dollar gasicr for gcncrating hcat
Many valucaddcd proccssing proccdurcs lor crops produccd on
small larms rcquirc unilorm hcat. Silk rccling, lor cxamplc,
hcats harvcstcd cocoons in watcr to causc thcm to givc up silk
thrcads. A gasicr hcats with a lucl sourcc such as wood chips
in thc abscncc ol air to producc burnablc gascs, acting somc
what likc propanc, that can bc dircctcd to a burncr, providing
unilorm hcat. A twothousanddollar gasicr dcvclopcd in !ndia
by thc Tata ncrgy Rcscarch !nstitutc, backcd by thc Swiss
govcrnmcnt, cut wood usc in silk rccling opcrations by c pcr
ccnt and produccd a grcatcr pcrccntagc ol rstgradc silk. c
signing a commcrcial gasicr at thc targct pricc ol lty dollars
would allow a varicty ol drying and othcr valucaddcd proccss
ing proccdurcs to bc carricd out at thc villagc or larm lcvcl.
Iow-cost solar drycrs to dry tomatocs and banana chips for high-
cnd markcts
Thcsc arc typical cxamplcs thc nccd lor aordablc larmbascd
valucaddcd proccssing tools is longcr than thc onc lor aordablc
smallplot irrigation.
Thcrc is an cvcn longcr list lor a rangc ol consumcr goods that dol
laraday pcoplc arc cagcr to buy whcn thcy incrcasc thcir incomc, and
pcoplc who carn two to six dollars a day arc rcady to buy now. This in
cludcs thc billion or so pcoplc who would bc customcrs lor twodollar
,:
OuL o PovcrLy
cycglasscs il somcbody would dcsign an ccctivc global distribution
and markcting systcm lor thcm (scc Chaptcr ). Thcrc arc morc than a
billion pcoplc in thc world who will ncvcr conncct to thc clcctricpowcr
grid who would bc intcrcstcd in buying a tcndollar solar lantcrn, madc
possiblc by advanccs in lightcmitting diodcs (Ls). Morc than a
billion pcoplc would bc willing customcrs lor a lour dollar houschold
lcvcl ltcr that would makc watcr salc to drink.
An attractivc hundrcddollar housc would makc a hugc positivc
impact on thc livcs ol poor rural pcoplc.
A Hundrcd-Dollar Housc
!n light ol thc lact that most young pcoplc in North Amcrica and u
ropc now cant aord to buy a housc, it is rcmarkablc that most ol thc
cc million rural pcoplc in thc world who carn lcss than a dollar a day
own thc homc thcy livc in. 8ut il thcy tricd to scll it, thcy would gct
no moncy lor it, and il thcy tricd to ocr it as collatcral lor a loan lrom
a local bankcr, thcy would gct turncd down. This is bccausc thcir homc,
madc ol sticks and wattlc, with a thatchcd rool and dung oor, has no
valuc in thc local markct and thcy havc no opportunity to build somc
thing with valuc at a pricc thcy can aord.
8ut in cvcry villagc, thcrc arc a lcw lamilics who havc a housc built
out ol brick or ccmcnt block, with a tilc rool, and thcsc houscs havc
both salcs valuc and collatcral valuc. Thcy accomplish this by building
it twcntyvc bricks at a timc, whcncvcr thcy havc a bit ol cash lclt
ovcr, and taking tcn or twcnty ycars to do it. Thcy takc so long bccausc
construction loans arcnt availablc in most ol thcsc placcs. ! havc sccn
lar too many dcsigns lrom Vcstcrn architccts lor rclugcc camp shcl
tcrs that look clcgant to thc Vcstcrn cyc and start at ninc hundrcd
dollars, or dwcllings lor poor rural lamilics lor ltccn hundrcd dollars
and up, priccs that arc lar too high to bc aordablc lor dollaraday
pcoplc.
Thc novaluc stickandthatch homc lacks a stablc loundation and
structural skclcton that will last. All wc nccd to start a salablc, bank
ablc, twcntysquarcmctcr homc is cight strong bcams and a solid rool
that docsnt lcak. !nitially, this durablc structural skclcton can bc llcd
,
in with local matcrials lor cxamplc, sticks chinkcd with mud lor thc
walls. Thcn, as moncy bccomcs availablc, stick walls can bc rcplaccd
with ccmcnt block or brick, twcntyvc bricks at a timc.
!l, lrom thc bcginning, thc onchundrcddollar housc is dcsigncd
to acccpt addcd modulcs, in thc manncr ol a LG sct, thc lamily
who livcs in it can cvcntually own a housc as big as thcy can aord.
Vhcn thc bankablc housc is complctcd, thc lamily has a sourcc ol
collatcral so thcy can borrow thc moncy thcy nccd lor inputs, implc
mcnts, and livcstock to incrcasc thc incomc thcy carn lrom larming.
A RcvoluLion in Dcsign
csigning products that arc attractivc to poor customcrs rcquircs a
rcvolution in thc dcsign proccss. This rcvolution is alrcady happcning.
!n thc summcr ol acc,, CoopcrHcwitt csign Muscum in Ncw York,
onc ol thc Smithsonian muscums, opcncd an cxhibit callcd csign
lor thc thcr c Pcrccnt,' in which thirtysix cxamplcs ol dcsigns
lor thc poor lrom all ovcr thc world arc displaycd. !ncludcd arc scvcral
trcadlc pumps, a lowcost drip systcm, lowcost watcr purication sys
tcms, and a tcchnology that allows villagc cntrcprcncurs to turn sugar
canc lcavcs into markctablc charcoal briqucttcs. Thc dcsign commu
nity is lascinatcd with this cxhibit, which has rcccivcd cvcrincrcasing
prcss covcragc. Morc rcccntly, wc havc incorporatcd an organization
callcd Rcv: csign lor thc thcr Nincty Pcrccnt,' whosc mission
is to crcatc thc dcsign rcvolution. My drcam is to implcmcnt lour ini
tiativcs at thc samc timc:
.. Translorm thc way dcsign is taught in dcvclopcd countrics, to
cmbracc dcsign lor thc othcr c pcrccnt ol thc worlds population.
a. Translorm thc way dcsign is taught in dcvcloping countrics, to
cmbracc dcsign lor thc othcr c pcrccnt ol thc worlds pcoplc.
. stablish a platlorm lor tcn thousand or morc ol thc worlds
bcst dcsigncrs to dcvclop practical solutions to thc rcallilc
problcms ol poor pcoplc.
,
OuL o PovcrLy
. Givc birth to intcrnational lorprot companics that protably
massmarkct to poor customcrs critical tcchnologics such as
twodollar cycglasscs.
To bc succcsslul, thc proccss ol dcsign lor thc othcr c pcrccnt nccds
to lollow a sct ol principlcs and practical stcps that dcpart radically
lrom convcntional dcsign.
Thc Principlcs o Dcsign or Lhc OLhcr o PcrccnL
Miniaturization, thc ruthlcss pursuit ol aordability, and innitc cx
pandability arc thc thrcc building blocks ncccssary to dcsign chcap.
Now hcrc is somc music to go with thc lyrics.
1nc roor cus1orcr ruics 1nc bcsicN rroccss
Thinking ol poor pcoplc as customcrs instcad ol as rccipicnts ol char
ity radically changcs thc dcsign proccss. Poor pcrsons wont invcst in a
product or scrvicc unlcss thc dcsigncr knows cnough about thc prclcr
cnccs ol poor pcoplc to crcatc somcthing thcy valuc. Thc proccss ol
aordablc dcsign starts by lcarning cvcrything thcrc is to lcarn about
poor pcoplc as customcrs, along with what thcy arc ablc and willing to
pay lor somcthing that mccts thcir nccds. Vhcn in doubt, ! rcsort to
thc ont bothcr trilogy.
tbor1 1nc boN1 so1ncr 1riiocv
.. !l you havcnt had good convcrsations, with your cycs opcn, with
at lcast twcntyvc poor pcoplc bclorc you start dcsigning, dont
bothcr.
a. !l what you dcsign wont at lcast pay lor itscll in thc rst ycar,
dont bothcr.
. !l you dont think you can scll at lcast a million units at an un
subsidizcd pricc to poor customcrs altcr thc dcsign proccss is
complctcd, dont bothcr.
,
srtii is s1iii sctu1irui
.F. Schumachcr was right on targct by writing bcautilully about
smallncss, cvcn though hc didnt locus cnough on aordability and
markctability. A modcrn combinc docsnt cvcn havc room to turn
around on a typical quartcracrc plot ol a smallacrcagc larmcr, much
lcss harvcst thc plot. Scvcntyvc pcrccnt ol all larms in 8angladcsh
and !ndia arc lcss than vc acrcs, and in China lcss than hall an acrc.
Sincc most ol thcsc small larms arc lurthcr dividcd into scvcral quar
tcracrc plots, this is thc gaugc against which any ncw tcchnology lor
smallplot larmcrs must bc cvaluatcd.
For thosc trying to survivc on a oncacrc larm, a pinch ol sccd is
bcttcr than a baglul. For a long timc cconomists havc talkcd about thc
divisibility ol tcchnology. You cant takc a tractor and cut it up into
littlc picccs, so cconomists givc it thc rathcr curious but dcscriptivc
labcl ol lumpy input. 8ut a twcntykilo bag ol carrot sccds can bc
casily dividcd into packcts just thc right sizc to plant two rows in a
kitchcn gardcn.
oing thc samc thing with mcchanical tcchnologics such as irriga
tion, tilling, and harvcsting dcviccs as can bc donc with a bag ol sccds
is probably thc most important challcngc in dcsigning chcap. A ccn
tcrpivot sprinklcr systcm is vcry ccicnt, costs a ton ol moncy, and is
dcsigncd to t a onchundrcdandsixtyacrc cld. How do wc dcsign
a lowprcssurc sprinklcr systcm that distributcs watcr just about as
ccicntly as a ccntcrpivot systcm, costs lcss than twcntyvc dollars,
and works on a quartcracrc cld: An !sracli dripirrigation systcm is
vcry ccicnt, costs a ton ol moncy, and is dcsigncd to t clds largcr
than vc acrcs. How do wc dcsign a dripirrigation systcm that is just
about as ccicnt as thc !sracli systcm, costs lcss than twcntyvc dol
lars, and ts pcrlcctly into a quartcracrc plot: ! has madc grcat
stridcs in solving both thcsc dcsign problcms, but thcrc arc thousands
morc likc thcm that havc yct to bc addrcsscd.
cnctr is sctu1irui 1oo
Shrinking a dripirrigation systcm lrom tcn acrcs to a quartcr acrc not
only makcs it appropriatc lor a poor larmcrs small cld, but also makcs
it considcrably chcapcr. !n !ndia, a twocigarcttc packagc probably
,6
OuL o PovcrLy
costs morc pcr cigarcttc than thc normal twcntycigarcttc packagc, but
it brings thc purchasc pricc down to an aordablc lcvcl lor a customcr
without much moncy. Aordability is thc most important considcration
in providing smallacrcagc larmcrs with acccss to incomcgcncrating
tcchnologics. 8clow arc somc guidclincs !vc lound lor dcsigning chcap.
.. Put tools on a radical wcight-loss dict. You can cut thc cost il you
can nd a way to cut thc wcight. A good cxamplc ol this is a
small dripirrigation systcm whcrc most ol thc wcight is in thc
plastic pipcs. Vc cut thc wcight and thc pricc ol pipc by cutting
systcm prcssurc by c pcrccnt. oing this allowcd us also to cut
thc wall thickncss and wcight ol thc plastic by c pcrccnt with a
corrcsponding drop in pricc.
a. Makc rcdundancy rcdundant. !l a wcstcrn cnginccr is askcd to
dcsign a bridgc capablc ol holding a tcnton load, hc is likcly to
build it to hold a thirtyton load to lowcr thc risk ol a lawsuit il
thc bridgc collapscs. 8ccausc thc lcgal risks arc so much lowcr
in poor countrics, and aordability is so much morc important,
an cnginccr dcsigning a watcr pipc lor tcnpoundspcrsquarc
inch prcssurc has no nccd to makc thc walls thick cnough to
withstand thirtypoundspcrsquarcinch prcssurc. lcvcn or
twclvcpoundspcrsquarcinch standard is sucicnt.
. Movc forward by dcsigning backward. ltcn, thc most ccctivc
way to optimizc aordability is to go back through thc history
that lcd to thc modcrn lorm ol thc tcchnology.
. Jazz up thc old packagc with cutting-cdgc matcrials. Updatc out
modcd dcsigns with any ncw matcrials that may havc bccomc
availablc. As long as aordability is not compromiscd, alls lair.
. Makc it as innitcly cxpandablc as a IEGO sct. Altcr miniatur
ization and aordability, innitc cxpandability is thc third pillar
ol dcsigning chcap. !nitially, il a larmcr can aord a drip systcm
that irrigatcs only a sixtccnth ol an acrc, dcsign it so hc can usc
thc incomc it gcncratcs to doublc or triplc its sizc thc ncxt ycar.
,,
PracLical SLcps or Dcsign or Lhc OLhcr o PcrccnL
Hcrc arc somc basic stcps that !vc lound can cut thc pricc ol almost
any cxpcnsivc tcchnology or tool by at lcast c pcrccnt.
sc1 t srcciric rricc 1trcc1
To bc succcsslul, thc product or scrvicc you dcsign has to mcct a spc
cic pricc point that poor customcrs arc willing and ablc to pay. ! usu
ally start by sctting a rctail targct pricc point that is about onclth ol
thc pricc a product is sclling lor now. Sincc thc pricc ol lcrroccmcnt
watcr tanks in !ndia starts at onc rupcc/litcr, wc sct a targct pricc lor
thc dcsign ol an aordablc watcrstoragc unit at onclth rupcc/litcr.
tNtivzc wnt1 1nc 1ccnNoiocv bocs
Makc a list ol thc important lunctions that thc tcchnology will pcrlorm
lor thc poor customcrs who will buy it.
ibcN1irv 1nc xcv coN1risu1ors 1o cos1
!dcntilying thc kcy contributors to thc cost ol thc currcnt tcchnology,
lrom most to lcast important, providcs a road map to nding aord
ablc altcrnativcs acccptablc to poor customcrs. A kcy contributor to
thc cost ol sprinklcr systcms is thc thickncss ol thc wall ol thc plastic
lincs carrying watcr to thc sprinklcrs. Lowcring thc prcssurc in thc
systcm madc it possiblc to usc thinncrwallcd tubing.
bcsicN trouNb ctcn or 1nc xcv coN1risu1ors 1o
cos1 sv riNbiNc tcccr1tsic 1rtbc-orrs
Sclccting acccptablc tradcos rcquircs an intimatc knowlcdgc ol thc
customcrs situation and nccds. Convcntional dripirrigation systcms
rcquirc a signicant invcstmcnt in a highquality ltcr to prcvcnt
clogging ol drip cmittcrs. An altcrnativc that smallacrcagc larmcrs
nd casily acccptablc is to rcplacc thc cxpcnsivc ltcr with a lowcost
wircmcsh ltcr covcrcd with a piccc ol cloth. Thc larmcrs childrcn
can wash thc cloth rcgularly and unplug cloggcd holcs with a salcty pin.
,8
OuL o PovcrLy
Thc kcy aordability tradcos arc:
.. Capital for labor. Sincc most poor pcoplc in rural arcas arc long
on labor and short on cash, thcy will jump at almost any oppor
tunity to tradc capital cost lor labor. 8ccausc ol its lowcr cost,
somc larmcrs prclcr to buy a smallcr dripirrigation systcm and
shilt it lrom row to row. Truckcrs in Ncpal rarcly invcst in prc
vcntivc maintcnanccits usually chcapcr to wait till a part
brcaks, and thcn spcnd a lcw hours on thc sidc ol thc road
xing it.
. Quality vs. aordability. !n thc Vcst, customcrs cxpcct a tool to
last at lcast scvcn ycars. 8ccausc ol thc lowcr cost, smalllarm
customcrs lor trcadlc pumps or drip systcms usually prclcr a
twoycar product to a scvcnycar onc. Always short ol cash, thcy
can usc thc cc pcrccnt nct annual rcturn ol a trcadlc pump to
buy a scvcnycar pump il thcy want to altcr thc rst two ycars
arc up.
rtxc t rui1i1ubc or rro1o1vrcs
Thc rapid prototyping proccss that is standard practicc lor dcsign
rms likc ! ts pcrlcctly lor dcsign lor thc poor. Using local rural
workshops to producc prototypcs is an advantagc bccausc thcy incor
poratc solutions to thc constraints in matcrials and labrication lor thc
cvcntual local manulacturc ol thc tcchnology.
rtxc cntNccs stscb oN ricib 1cs1s
!mmcdiatcly altcr thc proololconccpt prototypc stagc, try out thc
ncw tcchnology on at lcast twcnty small larms with dicrcnt condi
tions. Ncxt, thoroughly qucstion thc larmcrs about what workcd and
what didnt, and thcn modily thc tcchnology bascd on thcir cxpcricnccs.
tbtr1 t 1ccnNoiocv ir vou rovc i1 1o t Ncw ritcc
8ad ncws: Likc nc wincs, many tcchnologics dont travcl wcll. Thc
good ncws is that thc adaptation problcms arc usually casy to x. That
,
8o
OuL o PovcrLy
is why it ncvcr ccascs to amazc mc that anyonc would considcr cxport
ing tractors lrom thc Unitcd Statcs to Alrica, or lowcost dripirrigation
systcms lrom !ndia to China, without rst going through thc rclativcly
incxpcnsivc proccss ol cldtcsting and adaptation bascd on cxpcricncc.
Many pcoplc tcll mc that dcsigncrs dont work on solving thc prob
lcms ol c pcrccnt ol thc worlds customcrs bccausc thcrc is no moncy
to bc madc doing it. ! scc this as only a tcmporary abcrration.
ThaLs Whcrc Lhc Moncy Will Bc
! kccp asking why c pcrccnt ol thc worlds dcsigncrs work cxclusivcly
on products lor thc richcst .c pcrccnt ol thc worlds customcrs. Villic
Sutton, thc inlamous bank robbcr, was oncc askcd why hc robbcd banks.
8ccausc thats whcrc thc moncy is, hc said.
! suspcct my qucstion about thc worlds dcsigncrs has cxactly thc
samc answcr.
! havc no problcm with pcoplc who makc moncy by dcsigning
products lor thc rich. My lricnd Mikc Kciscr, with no morc prolcs
sional training than his lovc ol goll and naturc, dcsigncd a goll coursc
and rcsort 8andon uncs, on a spcctacular scction ol rcgon coast
lincthat quickly bccamc thc numbcrtwo goll dcstination in Amcrica.
Such cntrcprcncurial brilliancc dcscrvcs to bc rcwardcd.
Vhat astonishcs mc is that thc hugc, uncxploitcd markct that in
cludcs billions ol poor customcrs continucs to bc ignorcd by dcsigncrs
and thc companics lor which thcy work. !n this, howcvcr, thcy arc lol
lowing a wcllcstablishcd tradition.
!l you had askcd a car manulacturcr bclorc Hcnry Ford camc along
why hc dcsigncd only big, cxpcnsivc, custom cars lor playboys, ! sus
pcct his answcr would bc thc samc as Villic Suttons: 8ccausc thats
whcrc thc moncy is.
8ut its not whcrc thc moncy is now.
8clorc Stcvc Jobs and Stcvc Vozniak camc along with thc pcrsonal
computcr, il you had askcd thc C ol !8M why his company built
only computcrs that cost sa million and llcd cntirc rooms, hc would
undoubtcdly havc said, 8ccausc thats whcrc thc moncy is.
8ut, again, its not whcrc thc moncy is now.
8
8clorc thc advcnt ol transistor radios and Valkmans, had you
askcd thc cxccutivcs ol RCA why thcy madc only hi systcms that
cost thousands ol dollars, thcy would also havc givcn Villic Suttons
answcr: 8ccausc thats whcrc thc moncy is.
8ut its not whcrc thc moncy is now.
Today, you could ask thc cxccutivcs ol Nctam, thc worlds biggcst
dripirrigation company, why morc than pcrccnt ol thcir products
go to thc richcst pcrccnt ol thc worlds larmcrs, and thcy would say,
8ccausc thats whcrc thc moncy is.
8ut think about this. !l .cc million smallacrcagc larmcrs around
thc world cach bought a quartcracrc drip systcm lor c dollars a total
invcstmcnt on thcir part ol ovcr billion dollars it would amount to
morc than tcn timcs thc currcnt annual global salcs ol dripirrigation
cquipmcnt. Thcsc .cc million smallplot larmcrs could put .c million
additional hcctarcs undcr drip irrigation and incrcasc currcnt global
acrcagc undcr drip irrigation by a lactor ol vc.
!ts laudablc that a small but growing numbcr ol dcsigncrs arc bc
ginning to dcvclop aordablc products bccausc thcy want to improvc
thc livcs ol thc worlds poor. 8ut ! think that thc bcst and most sus
tainablc cnginc lor driving thc proccss ol dcsigning chcap is this:
8ccausc thats whcrc thc moncy will be.
A treadle pump irrigates a seedling nursery.
8
cntr1cr rivc
From
Subsistcncc to
Ncw Incomc
nvvovv vou s:~v:vu cvowixc ovvsv~sox cucu:nvvs ~xu
cauliowcr, what did you grow: ! askcd 8ahadur.
Ricc, hc said. Ricc, ricc, and thcn morc ricc. Ricc is how wc survivc.
Vc havc a oncacrc rainlcd ricc plot down by thc rivcr. 8clorc wc startcd
growing oscason vcgctablcs, wc usually got a good ricc crop thcrc bc
twccn Junc and Scptcmbcr, whcn it rains a lot, and wc still do. !l wc gct
a good crop, wc storc it so wc havc cnough to cat cvcry day lor a ycar.
Vhat clsc do you grow: ! askcd.
Vc grow black gram during thc rainy scason on our onc acrc ol
clds by thc housc, hc said.
! alrcady kncw that black gram is a pulsc crop that hclps providc
protcin balancc lor thc pcoplc who cat it and adds nitrogcn to thc soil.
Vhat clsc: ! askcd.
!ts a tradition hcrc to grow vcgctablcs in thc rainy scason, hc said.
Vc grow spongc gourd, bittcr gourd, and bcans. Thc pricc is so low in
thc rainy scason, its usually not worth sclling vcgctablcs thcn, but
thcyrc vcry good to cat. Somctimcs wc can gct a good pricc in thc
8
OuL o PovcrLy
markct lor spongc gourd and bittcr gourd, cspccially il thcy havc a bad
crop in !ndia and not much comcs in lrom thcrc to Ncpal.
!n thc lall, whcn thcrc is somc rain, wc also grow somc chilics and
onions and othcr vcgctablcs likc that, and wc cat most ol thosc too.
How much moncy did you makc in an avcragc ycar: ! askcd.
This is a qucstion ! ncvcr ask till wc gct a chancc to talk lor a whilc,
bccausc it can bc a scnsitivc onc. 8ut usually ! managc to gct an honcst
discussion going about incomc, bccausc !m thcrc with mcmbcrs ol
!s sta who livc in thc arca and whom thc larmcrs trust.
8ctwccn scvcn thousand and ltccn thousand rupccs |onc hun
drcd to two hundrcd dollars US|, hc said, dcpcnding on how much
ricc wc can scll and how much work wc can nd.
Thc bottom linc is that thc hardcr 8ahadur and his lamily workcd,
thc morc things staycd thc samc. vcrything thcy kncw about larming
sccmcd only to kccp thcm running in placc. Thcy grcw thc lood thcy
nccdcd to survivc, and thc traditional ways ol growing it wcrc not only
ingraincd in thc culturc ol thcir villagc but wcrc rccommcndcd by thc
govcrnmcnt agriculturc cxtcnsion agcnts thcy occasionally saw. !n lact,
most ol thc pcoplc who traincd thc govcrnmcnt cxtcnsion agcnts got
thcir dcgrccs lrom Vcstcrn univcrsitics whcrc thcy wcrc taught that
thc bcst thing smallacrcagc larmcrs can do is to grow ricc, whcat, and
corn lor thc tablc so thcy havc cnough to cat. Such advicc has bccn
standard in thc global agricultural community.
!l wc can tcach smallacrcagc larmcrs how to incrcasc thcir yiclds
ol lood crops by adopting grccn rcvolution stratcgics, planncrs in thc
global agricultural community say, thcir livcs will improvc dramati
cally. !l thcy adopt grccn rcvolution highyiclding varictics ol ricc,
whcat, and corn, incrcasc thcir lcrtilizcr usc, and apply watcr, thcy will
grow cnough to lccd thcir lamilics and havc somc lclt ovcr to scll in
thc markct.
Not only docs this incrcasc thc local supply ol lood in graindccit
arcas, but it also allows poor larmcrs to incrcasc thcir incomc by sclling
thcir cxccss production, thcsc cxpcrts say.
8ut this advicc ignorcs a basic piccc ol inlormation. vcn in thc
Vcst, whcrc thc grccn rcvolution is in lull sway, thcrc arc lcw largc
acrcagc larmcrs who can carn morc than two hundrcd dollars an acrc
by growing ricc or whcat or corn. Two hundrcd dollars an acrc looks
8
From SubsisLcncc Lo Ncw Incomc
prctty good il you plant two thousand acrcs ol corn, but how much
docs it do lor a larmlamily cntcrprisc that has only an acrc ol land: !n
lact, limiting thc larm output to grains kccps thcm in pcrpctual povcrty.
Thc grccn rcvolution has translormcd world agriculturc. Filty ycars
ago, millions ol pcoplc in !ndia and China starvcd to dcath on a rcgu
lar basis. Thc grccn rcvolution put a stop to this by dramatically in
crcasing lood supply, and China and !ndia arc now nct grain cxportcrs.
8ut thc grccn rcvolution lailcd to put an cnd to povcrty and hungcr,
much to thc dismay ol optimistic grccn rcvolution planncrs. Thrcc
hundrcd million pcoplc in !ndia and acc million pcoplc in China rc
main vcry poor, and most ol thcm still go hungry. !ncrcasing thc worlds
lood supply simply climinatcs onc important lactor contributing to
hungcr. 8ut povcrty and hungcr will cnd only whcn thc poor pcoplc
who livc and work on smalllarm grassroots cntcrpriscs nd ways to
carn cnough moncy to buy thc lood thcy nccd. Thcn thc markct will
nd ways to bring it to thcm. Vhcn instcad, poor, hungry pcoplc arc
placcd in a position ol longtcrm rcliancc on disastcr rclicl, donatcd
lood, and govcrnmcnt looddistribution systcms, thcir hungcr pcrsists.
To achicvc rcsults quickly, it was natural lor thc grccn rcvolution to
locus rst on big larms with good soils and acccss to irrigation in
looddccit countrics likc !ndia. 8ut lor highyiclding sccds to work
thcir magic, irrigation is csscntial, and cxisting irrigation tcchnology is
too big to t on oncacrc larms and too cxpcnsivc to bc aordablc. So
most ol thc small larms whcrc povcrty is ccntcrcd wcrc lclt with no ir
rigation, constraining smallacrcagc larmcrs adoption ol highyiclding
sccds, and many ol thc grccn rcvolutions positivc impacts on lood sup
ply and rural jobs and wagcs wcrc cclipscd by rapid population growth.
!n acc Norman 8orlaug, who rcccivcd a Nobcl Prizc lor his rc
markablc contribution to crcating thc grccn rcvolution, was askcd
what wcalthy countrics should bc doing to rcducc hungcr in thc world.
Hc said thcy should scnd lood lor cmcrgcncics, but that thc long
rangc solution is rcvolutionizing lood production, cspccially among
smallacrcagc subsistcncc larmcrs in dcvcloping countrics. This would
not only incrcasc lood supply, but would also crcatc jobs and ncw in
comc lrom sclling cxccss grain.
r. 8orlaugs grccn rcvolution lcd us salcly across thc Malthusian
abyss. !ts hard to quarrcl with succcss, and whcn a stratcgy hclps, it is
oltcn irrcsistiblc to apply morc ol thc samc. 8ut morc ol thc samc will
surcly lail to cradicatc rural povcrty just as it has lailcd to do so in thc
past. Thc subsistcncc larmcrs r. 8orlaug spcaks ol must now com
pctc ccctivcly in thc global markctplacc. To do so, thcy havc to play
to thcir strcngth. Thcir strcngth docs not lic in trying to compctc with
twothousandacrc, mcchanizcd and subsidizcd prairic whcat larmcrs
in Canada by trying to producc surplus whcat on thcir oncacrc larms.
Thc uniquc compctitivc advantagc ol smallacrcagc larmcrs in thc
markctplacc is that at vc to tcn ccnts an hour, thcy havc thc lowcst
labor ratcs in thc world. Thc most dircct way to cnd thc povcrty ol thc
cc million pcoplc who livc on lcss than a dollar a day is to incrcasc
thc incomc thcy carn lrom thcir oncacrc larms. Smallacrcagc larmcrs
can accomplish this most ccctivcly by growing divcrsicd, labor
intcnsivc, highvaluc cash crops.
Vhich brings us back lull circlc to Krishna 8ahadur Thapa and thc
dcad cnd hc laccd trying to gurc out how to incrcasc thc incomc hc
and his lamily could carn lrom thcir twoacrc larm.
Hcrc is how hc lound a solution.
From SubsisLcncc Lo Ncw Cash Incomc
!l you could stop bcing poor by carning morc lrom your larm, ! said
to 8ahadur, how would you go about doing it:
! rcally dont know, hc said.
K, how do you carn moncy lrom your larm now: ! askcd.
! scll ricc, hc said.
Altcr thc monsoon crop comcs in, ! usually havc twclvc hundrcd
to thirtccn hundrcd kilos ol ricc. ! nccd ninc hundrcd kilos to lccd my
lamily, so ! scll thrcc hundrcd kilos to covcr thc costs ol sccds and lcr
tilizcr to plant black gram and maizc lor thc ncxt crop and havc somc
cash lclt ovcr.
How much docs that bring in: ! askcd.
Thirtyvc hundrcd rupccs |about sc US|, hc said. !n a rcally
good ycar, ! scll morc ricc, and maybc a littlc corn too, and that brings
in scvcn thousand rupccs.
86
OuL o PovcrLy
Vc grow tomatocs and cucumbcrs and cggplant in thc rainy sca
son, but cvcrybody clsc docs too, which brings thc pricc down to thc
point that sclling almost isnt worth it. So wc cat most ol thc vcgctablcs
wc grow in thc rainy scason, and scll a lcw.
\cgctablcs scll lor thrcc timcs as much bctwccn Scptcmbcr and
May, bccausc its too dry lor most pcoplc to grow thcm and thcrc
arcnt any coming into Ncpal lrom !ndia thcn cithcr. Vc could makc a
lot ol moncy hcrc growing vcgctablcs in wintcr, but wc cant do it bc
causc wc dont havc any watcr lor irrigation.
Vhat othcr ways do you havc to carn moncy lrom your larm: !
askcd.
Vcll, its not rcally lrom thc larm. My son and ! go into Mugling
and try to nd a job in onc ol thc gucst houscs during wintcr, whcn
thcrcs not much to do on thc larm.
!l wc cant nd dcccnt work in Mugling, wc takc thc bus to Kath
mandu or Pokhara and look lor work. !l wc can nd jobs thcrc, thc pay
is a littlc bcttcr, but wc havc to pay morc lor lood. ! havc an unclc in
Kathmandu who lcts us stay. Thc problcm is, somctimcs wc takc
thc bus to Kathmandu but cant nd work, so wc comc back and try
Pokhara, but by thc timc wc nd jobs in Pokhara, wcvc spcnt a lot on
bus larc and cating in Kathmandu. !n thc cnd, wc usually can clcar
anothcr thirtyvc hundrcd or six thousand rupccs lrom jobs.
Thc morc ! talkcd to 8ahadur, thc morc ! rcalizcd that hc carncd
his living lrom opcrating a small grassroots cntcrpriscand a vcry
complicatcd onc at that. This cntcrprisc opcratcs ycar in and ycar out
on thc cdgc ol survival, but somchow 8ahadur and his lamily sccm al
ways to makc it, cvcn il thcy may not havc cnough to cat onc ycar out
ol thrcc. Vith ncgativc cash balanccs and zcro rcscrvcs, thcy havc to
navigatc salcly through unprcdictablc oods and droughts and lamily
illncsscs, with a hundrcd critical nccds crying out to bc paid with thc
lcw pcnnics that arc availablc. Any notion ol cnding thc ycar with a
hcalthy prot is an impossiblc drcam.
Lcts takc a closcr look at thc numbcrs lor Krishna 8ahadur Thapas
grassroots lamily cntcrprisc. Gross annual incomc is lourtccn thousand
rupccs (two hundrcd dollars US) lrom salcs ol surplus larm products
and lrom wagcs carncd by 8ahadur and his son. xpcnscs lor sccds,
8,
lcrtilizcr, and pcsticidcs, and lor travcl, room, and board incurrcd to
carn wagc incomc total thirtyvchundrcd rupccs, lcaving nct incomc
lor thc busincss ol tcn thousand vc hundrcd rupccs (onc hundrcd
lty dollars US). 8ut lamily survival cxpcnscs lor lood, clothing, and
shcltcr arc also cxtractcd lrom thc lamily cntcrpriscs incomc strcam.
Thc cconomic challcngcs dont sprcad thcmsclvcs cvcnly ovcr thc ycar
both incomc and cxpcnscs usually comc in big lumps. Thcrc is a big
lump in cxpcnscs at riccplanting timc to pay lor land prcparation,
sccds, and lcrtilizcr, and thcrc is a potcntial big lump in incomc at
riccharvcst timc. So 8ahadur and his lamily lacc critical dccisions at
thcsc major incomc and cxpcnsc points lor thcir busincss.
At riccplanting timc, thcy havc to dccidc whcthcr to go lor thc
traditional local varicty ol ricc, which tastcs bcttcr but has a lowcr
yicld, or pick onc ol thc highyiclding varictics that rcquirc a much
biggcr initial invcstmcnt in sccd and lcrtilizcr, will likcly producc a c
pcrccnt incrcasc in yicld, but which carry with thcm thc risk ol incur
ring a disastrous loss il 8ahadurs lamily is unlucky cnough to run into
an uncxpcctcd ood or pcst inlcstation. !l thcy borrow lrom a moncy
lcndcr to pay lor thc inputs rcquircd to grow highyiclding varictics ol
ricc, thcy may havc to pay c pcrccnt intcrcst at thc cnd ol vc months,
and il thc crop lails, how will thcy pay thc moncy back: !l 8ahadur is
unlucky cnough to comc down with pncumonia at riccplanting timc,
how much should thcy invcst in mcdicincs and how much lor planting
ricc: To havc any chancc at surviving, 8ahadur and his lamily havc to
apply outstanding skills in managing a busincss in a pcrpctual liquidity
crisis. To survivc, thcy havc lcarncd that thc bcst choicc is usually to
spcnd as littlc moncy as possiblc and to dcspcratcly avoid risks.
8ahadur and his lamily just about always comc down on thc sidc ol
playing it salc, although thcy lully undcrstand thc bcncts ol choiccs
likc planting highvaluc ricc. 8ut thcir dccisions arc drivcn by thcir
chronic shortagc ol capital and by thc lact that thcy simply cant aord
to losc. !l ! buy a pcnny stock in cnvcr, Colorado, and it bccomcs
worthlcss, ! complain a lot. 8ut il 8ahadur invcsts morc moncy than
hc can aord to losc in somcthing likc switching to highyicld varictics
ol ricc, and thcn a rarc ood wipcs out his crop, hc may havc scntcnccd
his lamily to dcath. !l thcy cant pay back thc villagc moncylcndcr and
thcy losc thcir larm, thcy will likcly cnd up bcgging on thc sidcwalk in
88
OuL o PovcrLy
Kathmandu, and thcir chanccs ol surviving bccomc lar worsc than on
thcir small hill larm. For good rcasons, whcn smalllarm cntcrpriscs
likc thc onc 8ahadur and his lamily opcratc makc dccisions, thcy arc
cxtrcmcly riskavcrsc.
ight hundrcd million dollaraday pcoplc now carn thcir primary
incomc lrom tiny grassroots larm cntcrpriscs, just likc 8ahadur and his
lamily. Most ol thcm own thcir own small patchcs ol land, and somc
carn most ol thcir livclihood as agricultural laborcrs. Thcir most dircct
routc to movc out ol povcrty is to incrcasc thc nct incomc thcy carn
lrom smalllarm grassroots cntcrpriscs whcrc thcy livc and work.
Anothcr cc million dollaraday pcoplc livc in urban slums or on
urban sidcwalks. Most ol thcm camc to thc city to look lor work, and
thcy carn thcir living lrom a staggcring array ol grassroots cntcrpriscs,
ranging lrom pottcry making to garmcnt swcatshops to lcathcr tan
ning to swccts making. Thcrc arc as many opportunitics to harncss thc
lowcost labor ratcs ol slum dwcllcrs to producc laborintcnsivc, high
valuc, markctablc products lrom thc grassroots cntcrpriscs in urban
slums as thcrc arc to incrcasc thc incomc ol smallacrcagc larmcrs by
growing and sclling laborintcnsivc, highvaluc cash crops. 8ut thc
urban poor havc a big advantagc. Sincc thcy livc so closc togcthcr, thc
problcms ol distribution and aggrcgation, both ol inputs and mar
kctablc goods, arc lcss than lor thc scattcrcd and isolatcd small larms
ol thcir rural countcrparts.
Thc kinds ol survival grassroots cntcrpriscs that ocr thc bcst
opportunitics lor dollaraday pcoplc who livc and work in poor rural
arcas and in slums arc not ncw. Thcy havc providcd thc path to sur
vival lor marginalizcd populations throughout history.
A ShorL HisLory o CrassrooLs FnLcrpriscs
Grassroots markcts arc cvcrywhcrc, and cntrcprcncurs ol all shapcs and
sizcs arc thcir movcrs and shakcrs. !n Auschwitz, a Jcwish physician
who was a prisoncr tradcd cigarcttcs lor a small still that had bccn stolcn
lrom warchouscd pilcs ol posscssions takcn lrom trainloads ol pcoplc
put to dcath in thc gas chambcrs. Thc physician put his lilc on thc linc
by talking somc SS guards into lctting him usc a bag ol potatocs. Vith
8
o
OuL o PovcrLy
his small still, hc produccd a crudc lorm ol schnapps that thc guards
uscd lor thcir drunkcn orgics. !n rcturn, thcy gavc him thc lcltovcr po
tato mash, which hc lricd into dclicious lilcgiving pattics. Hc sharcd
somc with his closc circlc ol lricnds, and tradcd thc rcst lor cigarcttcs
that scrvcd as moncy in camp markcts.
Vithin days altcr a ncw rclugcc camp camc to lilc in Somalia in
.., womcn bcgan bartcring lood and trinkcts, displaying thcm on a
patch ol dirt bordcrcd by small, whitcwashcd stoncs outsidc thcir
iglooshapcd mudandwattlc huts. utolwork scicntists sold watchcs
and houschold goods in thc strcct markcts that sprang up whcn thc
Sovict Unions cconomy collapscd. Thriving cash and bartcr markcts
cxist in cvcry prison in Amcrica, with inmatcs and somctimcs guards
participating in a brisk markct lor drugs.
As a psychiatrist, ! was surpriscd to lcarn that Villic, a chronic
schizophrcnic who had livcd on thc back wards ol inglcton hospital
on thc Scottish bordcr lor twcnty ycars, collcctcd goll balls by station
ing himscll at thc bottom ol a hill whcrc hc was hiddcn lrom thc vicw
ol loursomcs tccing o on thc rst holc. Thcy cxpcricnccd a mystcri
ously high incidcncc ol lost balls, which didnt sccm to troublc thcm
on thc rcst ol thc coursc. Villic tradcd goll balls lor brokcn toastcrs
and clcctric cocc pots, which hc had a rcmarkablc knack lor xing
and sclling in thc villagc ol Mclrosc.
!l Villic, a backward schizophrcnic, activcly participatcs in mar
kcts, and so do conccntration camp inmatcs, prisoncrs in jails, and
rclugccs in camps, why should it surprisc anyonc that smallacrcagc
larmcrs in thiopia or Myanmar or pcoplc who livc in urban slums
also makc thcir living in markcts: !n scttings that dictatc a daily strugglc
to survivc, pcoplc who dont quickly lcarn how to opcratc as survival
cntrcprcncurs usually dont makc it. !l thcy arc smallacrcagc larmcrs,
thcy losc thcir land to thc villagc moncylcndcr and migratc to city
slums whcrc things arc ncarly always worsc. !l thcy cant snag a job in
thc city, cvcn clcaning toilcts, thcy start bcgging on thc sidcwalk, but it
takcs rcal skill to bc a succcsslul bcggar, and thosc who dont havc it
quickly grow sick and dic.
Yct thcrc is an optimistic sidc to this dcprcssing downward spiral.
Slum dwcllcrs and oncacrc larmcrs havc thc lowcst labor ratcs in thc

world, and thcrc arc vast untappcd markct opportunitics lor thcir
grassroots cntcrpriscs to grow and prospcr.
Mohamcd Yunus and thc microcrcdit rcvolution hc has cncrgizcd
havc shown that acccss to crcdit can bc a powcrlul positivc tool. 8ut in
any busincss, acccss to crcdit is just onc ol many critical lactors.
To bc succcsslul, grassroots cntcrpriscs havc to bc ablc to implcmcnt
thc samc succcsslul busincss practiccs as !8M or Toyota or a ncigh
borhood movic housc. Thcy havc to idcntily a product or scrvicc that
customcrs arc willing to pay lor that thcy arc uniqucly qualicd to pro
vidc and that thcy can dclivcr at a pricc that customcrs nd attractivc.
Thcy havc to raisc thc capital thcy nccd to succccd and, most impor
tantly, thcy havc to dcsign and implcmcnt a highly ccctivc markcting
and distribution stratcgy. At thc cnd ol it all, thcy havc to show an
attractivc prot.
Thcrc is no mystcry to thcsc principlcs. Somc vcrsion ol thcm ap
plics to all succcsslul busincsscs. 8ut applying thcm to an cntcrprisc
with a gross incomc ol sacc instcad ol onc with an incomc ol scc
million or morc rcquircs a radical changc in thinking and practicc
comparablc to thc dicrcncc bctwccn driving a nail in a board with a
hammcr and lilting a onchundrcdton prclabricatcd wall into placc
on a skyscrapcr with a cranc. !ncrcasing incomc lrom grassroots cntcr
priscs rcquircs a dctailcd undcrstanding ol thc strcngths and wcak
ncsscs ol thc pcoplc who opcratc thcm, and ol thc markcts in which
thcy opcratc. Vhcn onc considcrs all thc cntcrpriscs by which cx
trcmcly poor pcoplc makc a living, thc most common arc tiny larms in
poor countrics, likc thc onc opcratcd by 8ahadur Thapa and his lamily.
vcry mcmbcr ol 8ahadurs lamily is willing and ablc to work hard
just to survivc. Thcir lamily cntcrprisc is chronically short ol cash.
Thcir ccctivc wagc ratc is bctwccn vc and tcn ccnts an hour. Thcy
havc two acrcs ol scattcrcd plots ol land. Thcy havc no watcr control
lor thcir crops, but thcy havc a monsoon scason whcn morc rain lalls
than thcy nccd. Thc only problcm is that during thc monsoon scason,
whcn thcy can grow things to scll, cvcrybody clsc docs too, and thc
priccs in thc markct arc so low that thcy cant makc any moncy sclling
anything. 8ut thcy cat wcll thcn.
Thc answcr lor 8ahadur and his lamily was simplc. Vith thc hclp
:
OuL o PovcrLy
ol ! and Hclvctas, a Swiss dcvclopmcnt organization, 8ahadurs
lamily gaincd acccss to a small amount ol dcpcndablc irrigation watcr
in wintcr. Thcy had to changc thcir approach to larming by lcarning
mcthods ol intcnsivc horticulturc to producc oscason wintcr cauli
owcr and cucumbcrs. Thcy lound wholcsalcrs who would buy thcir
crop at an attractivc pricc in thc ncarby town ol Mugling, and tradcrs
willing to scll it in thc Kathmandu vallcy. Vithin two ycars, 8ahadurs
lamily incrcascd thcir nct annual incomc by thirtyvc thousand ru
pccs (vc hundrcd dollars US) and ccctivcly movcd out ol povcrty
and into thc middlc class. How 8ahadur and his lamily accomplishcd
this is probably thc most intcrcsting part ol thc story.
A small-plot farmer in Cambodia
Cambodian woman treadling
cntr1cr six
Aordablc
SmallPlot
Irrigation
wnvx xvisnx~ n~n~uuv :n~v~ iv~vxvu :n~: nis uxciv wno
livcd ncar Pokhara had triplcd his incomc by installing an ! low
cost dripirrigation systcm, 8ahadur wcnt to scc thc systcm. Thc drip
irrigation tubcs conncctcd to a villagc watcr tap that brought watcr
lrom a spring two kilomctcrs away. Thc communitys watcruscrs
committcc had givcn 8ahadurs unclc pcrmission to usc somc ol thc
systcms rcscrvc watcr capacity.
8ahadur rcalizcd immcdiatcly that hc could do thc samc thing at
homc. Thc drinking watcr uscd by twclvc lamilics in klc Phant had
bccn pipcd in by Hclvctas, a Swiss dcvclopmcnt organization. !n .,
using a hallinch pipc, Hclvctas had providcd a constant sourcc ol
watcr to cach lamily twcntylour hours a day. This supplicd much
morc than thc lamilics nccdcd to mcct thcir houschold nccds but not
cnough to irrigatc crops by ooding thcir clds. Yct it was morc than
cnough to grow quitc a lcw vcgctablcs il thcy uscd a drip systcm. 8aha
dur saw that hc could marry a dripirrigation systcm to thc watcr supply
hc alrcady posscsscd.
6
OuL o PovcrLy
As wc talkcd, 8ahadur and ! walkcd ovcr to takc a closcr look at his
drip systcm. Vatcr owcd lrom his hallinch pipc dircctly into a lty
litcr bluc plastic tub that sat on a woodcn platlorm at shouldcr hcight,
thus acting as a gravity tank lor thc systcm. Thc watcr thcn was dircctcd
through a stsizc black plastic ltcr into a bright grccn thrcccighths
inchdiamctcr solt plastic tubc that split into thrcc ltyloot latcral
lincs, cach placcd on thc ground ncxt to a row ol plants. vcry twclvc
inchcs, watcr drippcd out ol a tiny bacd holc dircctly to thc cucumbcr
vinc bcsidc it, sccping quickly undcrground to thc roots ol thc plant.
As wc talkcd, 8ahadur intcrruptcd his convcrsation lrom timc to
timc to point up thc hill to thc big tank lrom which his hallinch wa
tcr pipc camc, so ol coursc wild horscs couldnt kccp mc lrom trudging
up to scc it. Altcr a ltccnminutc walk along a rocky lootpath that
wound uphill through dcnsc loliagc, wc camc to a lourtccnthousand
litcr cncloscd ccmcnt watcr tank about twclvc hundrcd lcct lrom thc
villagcrs homcs and sixtyvc lcct in vcrtical hcight abovc thcm. Vatcr
was divcrtcd lrom a strcam thrcc lcct widc and six inchcs dccp into a
small dammcd rcscrvoir, and lrom thcrc it owcd through a simplc
ltcr and a twoandahallinch plastic pipc into thc ccmcnt tank.
Hclvctas had supplicd thc ccmcnt, pipc, and matcrials lor thc systcm,
and thc villagcrs had contributcd thcir labor to install it. Thcy all agrccd
to kccp it running undcr thc supcrvision ol a watcruscrs committcc
cochaircd by 8ahadur.
! walkcd around thc tank and lmcd it. ! was surpriscd to nd that
cach lamily had a scparatc hallinch, black, highdcnsity polycthylcnc
(HP) pipc running lrom thc tank to thcir individual homcs, in
stcad ol thc chcapcr stratcgy ol running onc biggcr pipc down to thc
villagc and thcn dividing it. 8ahadur cxplaincd that cach lamily was
morc comlortablc making surc that thcir own scparatc linc kcpt owing.
A backolthccnvclopc calculation cstimatcd that this systcm cost
about twcntyvc hundrcd dollars, which could havc bccn nanccd
casily by a loan instcad ol a donation lrom Hclvctas, with morc than
cnough incomc lrom oscason vcgctablcs to pay back thc loan with
intcrcst in thrcc ycars. 8ut at thc timc whcn it was built, thc systcm
was planncd only as a drinkingwatcr systcm, and without a ncw
sourcc ol incomc, thc villagcrs who uscd it could aord only to covcr
its opcrating costs.
,
Aordablc Small-PloL IrrigaLion
Vhcn wc wcnt back down thc hill lor anothcr cup ol tca, 8ahadur
told us that hc and his lamily wcrc thc rst to install a lowcost drip
systcm in klc Phant. !n thc rst ycar, thcy plantcd oncsixtccnth acrc
ol dripirrigatcd oscason wintcr cucumbcr and cauliowcr and
carncd onc hundrcd lty dollars lrom it altcr cxpcnscs. That was
cnough impctus to kccp going. Thcy ncvcr lookcd back.
Although thc littlc dripirrigation systcm wc saw on 8ahadurs
larm was dcccptivcly simplc, it had takcn us six ycars ol trial and crror
to dcvclop it.` Thc biggcst challcngc was to cut thc pricc ol convcn
tional drip systcms by lourlths with sucicnt quality to plcasc
smalllarm customcrs.
! rst got thc idca lor this altcr Mr. Upadhiya, thc cncrgctic, crc
ativc managing dircctor ol thc Agricultural cvclopmcnt 8ank ol
Ncpal (A8N), had rcgalcd mc lor two ycars with storics about thc
rcmarkablc succcss ol gravitylcd small sprinklcr systcms promotcd by
thc bank in thc hills ol Ncpal. So in .c whcn wc passcd through
Tanzcn, whcrc scvcral ol thcsc systcms wcrc installcd, wc stoppcd at
thc A8N branch occ unannounccd and talkcd a sta mcmbcr into
taking a hallhour drivc and a lourhour walk up stccp trails to thrcc
villagcs using thcsc small sprinklcr systcms.
Vhcn wc got to thc rst villagc, larmcrs told us thcsc sprinklcr sys
tcms cost a thousand dollars, scrvcd thrcc larmcrs, and irrigatcd a total
ol onc acrc ol lruits and vcgctablcs. ! kncw right away that this pricc
was too high, making thc systcm unaordablc lor most dollaraday
smallacrcagc larmcrs, cvcn whcn thc bank providcd a c pcrccnt sub
sidy. (8y way ol comparison, thc sprinklcr systcms dcsigncd by !
!ndia ltccn ycars latcr cost two hundrcd dollars an acrc.) So ! was
curious to lcarn about thc kcy contributors to thc cost ol thc A8Ns
sprinklcr systcms.
Thc rst sprinklcr systcm wc visitcd collcctcd watcr ovcrnight lrom
a small strcam to ll a thrcchundrcdltydollar stoncandccmcnt
tank holding tcn thousand litcrs. This was cnough to irrigatc thrcc
larms in thc carly morning. Vatcr lrom thc tank ran through a ltcr to
a whitc oncandahallinch sixhundrcdltylootlong hard P\C
pipc lor thc thrcc clds and was thcn dclivcrcd to thc crops through
Rainbirdtypc oscillating sprinklcr hcads on shiltablc mctal stands.
Ninc sprinklcr hcads and stands cost onc hundrcd lty dollars. Thc
lact that thc tank had to bc sixty lcct in vcrtical hcight abovc thc cld
to gcncratc cnough prcssurc to run thc sprinklcrs dictatcd a long pipc
convcyancc systcm, which was a kcy contributor to cost.
Thc immcdiatc challcngc was to dcsign a systcm that would do thc
samc thing at a quartcr ol thc cost. My rst idca was to takc a piccc ol
chcap black HP pipc, punch holcs in it with a hammcr and a nail,
and lct thc watcr dribblc out through thc holcs. A small gravity tank
sitting two or thrcc lcct abovc thc cld would providc cnough prcssurc
to opcratc such a drip systcm. ! still havc thc rst plan ! drcw on my
lat Mac computcr a ltyvcgallon drum sitting in thc strcam, a
littlc wircmcsh ltcr, and a black HP pipc running lty lcct to thc
cld, whcrc it split into thrcc pipcs with holcs in thcm to lct thc watcr
dribblc out to thc plants. At this point, ol coursc, ! kncw littlc or noth
ing about drip irrigation, but thc idca sccmcd rcasonablc cnough.
!t took us six ycars and hundrcds ol cld tcsts to comc up with thc
simplc, small, chcap systcm that Krishna 8ahadur Thapa uscd. !t was
thc last in a scrics ol vc gcncrations ol lowcost drip systcms and
hundrcds ol cld tcsts.
!n light ol thc watcrscarcity crisis in many parts ol thc world and
thc lact that ,c pcrccnt ol watcr divcrtcd lor human usc gocs to irriga
tion, it is rcmarkablc that drip irrigation rcprcscnts only . pcrccnt ol
irrigatcd acrcagc globally, sincc it is probably thc most ccicnt way ol
dclivcring watcr to plants. Convcntional drip irrigation is dcsigncd lor
big larms and costs vc timcs as much pcr acrc as thc amount 8ahadur
paid. Thc currcnt larms that usc drip irrigation arc thousandacrc al
mond trcc orchards in Calilornia or vchundrcdacrc vincyards in
Francc that incorporatc data lrom wcathcr satcllitcs and soil moisturc
scnsors into computcr modulcs that control how much watcr to apply.
Thcsc largc larms arc quitc dicrcnt lrom thc million larms in thc
world that cultivatc lcss than vc acrcs.
!ncrcdibly, not onc ol thc major dripirrigation rms in thc world
has dcsigncd drip systcms chcap cnough and small cnough lor thc ma
jority ol thc worlds larmcrs, although thc potcntial markct dwarls thc
dcmand lor convcntional systcms. !n thc .cs no markct lor drip irri
gation cxistcd in Ncpal bccausc so lcw larms wcrc big cnough and rich
cnough to aord it. 8ut thcrc alrcady wcrc lty privatcscctor compa
nics labricating and markcting drip irrigation in !ndia, whcrc thcrc arc
8
OuL o PovcrLy
many big larms that grow highvaluc crops such as grapcs, orangcs, and
vcgctablcs. ! spcnt a lcw days with Jain !rrigation, in Maharastra, thc
biggcst dripirrigation company in !ndia. ! askcd its biggcstvolumc
dcalcr thc sizc ol thc smallcst systcm hc had installcd in thc past ycar.
Two acrcs, hc said.
Kccp in mind that thc avcragc larm sizc in !ndia at that timc was
thrccandahall acrcs, typically dividcd into scparatc plots rarcly
largcr than a hall acrc, and it bccomcs clcar that lcw ol !ndias mil
lion larms smallcr than vc acrcs wcrc gctting salcs calls lrom Jain
!rrigation dcalcrs. Thc rcally poor oncacrc larmcrs wcrcnt cvcn on
thcsc dcalcrs radar.
Sincc thcrc was no markct lor drip irrigation in Ncpal and thc
markct in !ndia continucd to ignorc smallacrcagc larmcrs, wc dccidcd
to crcatc a ncw markct lor lowcost, smallplot drip irrigation our
sclvcs. 8y thc timc 8ahadur was rcady to buy a lowcost drip systcm,
! had convinccd scvcral Ncpali cntrcprcncurs with plastics cxtrudcrs
to start labricating thc kcy componcnts ol thc systcm, with asscmblcrs
at kcy villagc locations putting it togcthcr and sclling it. Vc traincd lo
cal larmcrs to work parttimc as installcrs. 8ahadur bought his systcm
lrom a local dcalcr, and rcccivcd somc training on vcgctablc production
lrom a local ! agronomist.
Vhcn lowcost drip systcms bccamc popular among smallplot hill
larmcrs in Ncpal, ! introduccd its systcm to mulbcrry growcrs in
thc silk industry in south !ndia and modicd it to t spccic conditions
thcrc. Sincc acca, salcs ol lowcost drip systcms to both smallplot and
largcracrcagc larmcrs havc bccn so brisk that cxisting companics arc
cntcring thc lowcost markct to compctc with thc systcms introduccd
by !. ! bclicvc thcrc is a potcntial markct lor at lcast million low
cost dripirrigation systcms in !ndia alonc.
Thcrc arc hundrcds ol millions ol larmcrs in thc world likc 8ahadur,
larmcrs who arc barcly surviving on small, barrcn patchcs ol land. Thc
grcat majority ol thcm could dramatically incrcasc thcir incomc by
growing and sclling laborintcnsivc, highvaluc cash crops just as
8ahadur did. Vhats stopping thcm:
Thc rst and most important thing that stands in thc way ol thcsc
larmcrs is that most ol thcm, not having a way to apply watcr to thcir
crops, dcpcnd on rainlall. This usually mcans thcy can grow lood lor

oo
OuL o PovcrLy
thc tablc during thc rainy scason. Thcy can grow cash crops likc vcg
ctablcs during thc rainy scason, but cvcrybody clsc grows thcm thcn
too, and thc markct pricc is so low thcyrc usually not worth sclling.
Thc way to makc moncy is to grow cash crops during thc oscason,
whcn priccs arc much highcr, but it cant bc donc without irrigation,
and thc irrigation tools that arc availablc in thc world arc too big and
too cxpcnsivc to t thcir small plots. To incrcasc thcir incomc as
8ahadur did, smallacrcagc larmcrs nccd acccss to aordablc small
plot irrigation.
So why is it that aordablc smallplot irrigation isnt availablc:
An cxpcricncc ! had in Mozambiquc gocs a long way toward an
swcring this qucstion. ! was visiting thc vcgctablc markcts in thc capi
tal town ol Maputo, and thcy wcrc absolutcly hugc. ! makc a habit ol
mcasuring thc shcll spacc apportioncd to dicrcnt lruits and vcgctablcs
in markcts, and thcrc wcrc cndlcss rows ol tomatocs, potatocs, lcttucc,
kalc, chili pcppcrs, onions just about anything onc could want. 8ut
whcn ! askcd thc vcndors whcrc cach vcgctablc camc lrom, ! got a
dcprcssingly unilorm answcr: South Alrica. Thcsc products wcrc truckcd
in, a trip taking about vc hours on dcccnt highways lrom South
Alrica, oloadcd to trucks lrom Mozambiquc at thc bordcr, and sold
to supply thc burgconing dcmand lor vcgctablcs in thc capital city.
! was puzzlcd bccausc it sccmcd to mc that thcrc was plcnty ol
good land, and cvcn irrigation, within two hours ol bumpy roads lrom
Maputo. So ! talkcd to thc cxpcrts in agriculturc and irrigation in
Maputo. nc cxpatriatc with a Ph in irrigation, author ol numcrous
publications, told mc in no unccrtain tcrms that thcrc just was no irri
gation availablc within striking distancc ol Maputo. ! lclt his occ,
hailcd a taxi, and askcd thc drivcr il thcrc was any irrigation going on
around Maputo.
Ccrtainly, sir would you likc mc to takc you thcrc: hc rcplicd.
How lar is it: ! askcd.
About ltccn minutcs, hc said. !ts right ncxt to thc bccr lactory.
!n twclvc minutcs, wc pullcd up to a vchundrcdacrc grccn arca
cxploding with vcgctablcs, and ! got out and lmcd it. Thcrc must
havc bccn cight hundrcd individual plots, and most wcrc a bcchivc ol
activity. A small rivcr ran closc to this vcgctablcproducing arca, and
o
onc ol thc prcvious socialist govcrnmcnts had sct up a station that
pumpcd watcr to small ccmcnt abovcground opcn cistcrns that wcrc
twoandahall lcct dccp and six lcct on cach sidc. Most ol thcsc small
plot larms had such a cistcrn, and thc pumping systcm kcpt thcm lull.
Thc larmcrs took two sprinkling cans, llcd thcm by dunking thcm
in thc tanks, and luggcd thc cans, onc in cach hand, to thcir vcgctablc
plots to sprinklc thcir vcgctablcs. Thcn thcy camc back lor morc. Somc
ol thcm uscd woodcn shouldcr bars, which madc thc carrying casicr.
Somc lamilics who didnt havc a cistcrn haulcd dircctly lrom thc rivcr,
cvcn though it mcant thcy had a longcr carry. Thcy wcrc growing
onions, tomatocs, and cvcry othcr kind ol vcgctablc, but apparcntly
thcy sold thcir producc in smallcr ncighborhood markcts instcad ol
thc big markcts ! had visitcd. !mprcsscd, ! tricd to calculatc thc cost to
build a thousand systcms likc this and what thc rclativc cost would bc
to ll thcm by a gravity lccd.
Latcr that day, ! wcnt back to thc irrigation cxpcrts occ. !
thought you said thcrc was no irrigation within striking distancc ol
Maputo, ! said, with a tracc ol indignation in my voicc.
Thats right, hc said.
Vcll, ! just visitcd vc hundrcd irrigatcd acrcs ltccn minutcs
lrom hcrc, ! dcclarcd.
Vhcrc was that: hc askcd.
Right ncxt to thc brcwcry, ! said.
h ycs, ! know about thosc vcgctablc clds, hc said. 8ut ol
coursc, thats not irrigation.
Vhy not: ! askcd.
8ccausc thcy usc buckcts, hc said, and hc madc it clcar that our
convcrsation was ovcr.
! thought irrigation was bringing watcr to plants! ! said. And thcn
thc convcrsation rcally was ovcr.
Vhats cvcn worsc than thc lact that this convcrsation actually took
placc is thc lact that his attitudc is cndcmic among ocially dcclarcd
irrigation cxpcrts and thc lcadcrs ol dcvclopmcnt institutions.
!n . Gcz Cornishlrom thc rcspcctcd UK watcrconsulting
rm HR Vallinglordand his tcam carricd out a thrccycar study ol
inlormal buckct irrigation supplying vcgctablcs to thc city ol Kumasi
o:
OuL o PovcrLy
(population scvcn hundrcd thousand) in Ghana. Thc study concludcd
that at lcast twclvc thousand scvcn hundrcd houscholds grcw vcgctablcs
lor Kumasi, and that thcsc vcgctablcs providcd thc biggcst part ol thcir
ycarly incomc. Thc study concludcd that at lcast ..,cc hcctarcs
(a,,c acrcs) wcrc irrigatcd by inlormal mcthods around Kumasi.
Howcvcr, whcn thc Food and Agriculturc rganization (FA, a
global Romcbascd UN agriculturc institution) dclivcrcd its lormal
rcport on irrigation in Ghana, a rcport thcn acccptcd as gospcl by thc
govcrnmcnt ol Ghana, it listcd a total ol only sixty-four hundred irri
gatcd hcctarcs in all ol Ghana! This is about hall ol thc acrcagc undcr
buckct irrigation in a singlc city in Ghana. ocs this sound lamiliar:
For cxpcrts in Ghana, no lcss than lor thc irrigation cxpcrt ! talkcd to
in Mozambiquc, buckct irrigation simply docsnt cxist. How unlortu
natc that this rcprcscnts mainstrcam thinking in irrigation.
l coursc, govcrnmcnt ocials display thc samc attitudc toward
rickshaws in 8angladcshthcy scc thcm as primitivc, backward, and
cmbarrassing modcs ol transport at a timc whcn 8angladcsh is trying
to prcscnt itscll to thc outsidc world as a modcrn country, cvcn though
thcsc humblc rickshaws movc morc pcoplc and cargo in onc day than
docs thc London undcrground.
Vhy docs thc world continuc to closc its cycs to thc rcality ol both
oncacrc larms and smallplot irrigation: !ts bccausc subsistcncc
larms and thc buckct irrigation that thcy oltcn usc arc sccn as back
ward and primitivc, ripc lor rcplaccmcnt by modcrn agriculturc and
modcrn irrigation.
Nobody sccms to know how many pcoplc irrigatc by buckct in
Alrica, or in China, or in \ictnam, although ! havc sccn thousands ol
thcm with my own cycs. n this topic, no ocial statistics arc avail
ablc. So hcrcs an unocial cstimatc. ! askcd tcn pcoplc who havc
donc a lot ol travcling in rural arcas how many buckct larmcrs thcy
think thcrc arc in Alrica. Thc lowcst cstimatc ! got was million.
Thc smallplot larmcrs all ovcr thc world havc consistcntly told mc
that thc singlc most important thing thcy nccd in ordcr to movc out ol
povcrty is watcr lor thcir crops. ! madc thc dcsign and mass markcting
ol aordablc smallplot irrigation tools thc rst locus ol ! whcn !
startcd it in ...
o
Acccss Lo WaLcr
Vhcn ! tcll pcoplc that thc most important thing smallacrcagc larmcrs
nccd in ordcr to movc out ol povcrty is acccss to aordablc smallplot
irrigation, listcncrs usually say to mc that ! am ghting a losing battlc.
Most poor larmcrs simply havc no acccss to watcr.
Thats not truc, ! say. vcrybody in thc world has acccss to watcr.
Pcoplc with no acccss to watcr dic within vc days. vcryonc in thc
world who brcathcs in and out has acccss to watcr. !t may bc pollutcd
watcr, or loadcd with bactcria. 8ut without a sourcc ol watcr to drink,
pcoplc dic.
To gct irrigation startcd, all it takcs is an cxtra two buckcts ol
watcr a day lrom thc samc sourcc whcrc you gct your drinking watcr.
That is cnough to grow a small vcgctablc gardcn with a thrccdollar
drip kit and carn ninc dollars by sclling surplus vcgctablcs.
l coursc, in somc placcs, thc watcr is so scarcc that all ol it has to bc
uscd lor drinking. 8ut il thcrc arc two buckcts a day to sparc pcr lamily
lor incomcgcncrating plants, thcrc is an opportunity to start irrigating.
Thcrc arc many othcr big untappcd opportunitics lor smallacrcagc
larmcrs to gain acccss to a sourcc ol watcr lor irrigation.
Thcrc arc, in lact, practical ways to addrcss thc problcm ol small
larm acccss to watcr. From thc largcst to thc smallcst, thc irrigation
tools can bc classicd as watcrlilting, watcrstoragc, and watcr
distribution tcchnologics.
WaLcr IiLing
Somc irrigation systcms storc monsoon rainwatcr bchind big dams and
rclcasc it to ow by gravity through canals to larmcrs clds, bypassing
thc nccd to lilt it. Groundwatcr has bccn an incrcasingly important
sourcc ol watcr lor irrigation, and in big irrigation systcms, big dicscl
or clcctric cngincs drivc pumps that bring watcr lrom bclow thc
ground to thc surlacc, whcrc it is dclivcrcd to plants in a varicty ol ways.
8ut in thc million larms in thc world that arc smallcr than vc
acrcs, most ol thc groundwatcr that is brought to thc surlacc is raiscd
by thc larmcrs manual labor. Somc usc a buckct on a ropc. thcrs usc
a buckct suspcndcd lrom a horizontal polc with a wcight on thc othcr
cnd as a countcrbalancc to cqualizc thc work ol raising and lowcring thc
buckct. Still othcrs usc a bullock pulling a twcntyvcgallon bladdcr
attachcd to a ropc passing ovcr a windlass to thc watcr in an opcn wcll.
8uckcts, countcrbalanccd buckcts, sprinkling cans, and swing baskcts
arc chcap but rcquirc a lot ol musclc powcr. l coursc, this is a rcncw
ablc lorm ol cncrgy.
Until thc dcsign and mass markcting ol trcadlc pumps, thcrc wcrc
lcw tools lor smallacrcagc larmcrs to usc to lilt watcr, bctwccn thc cx
trcmcs ol, at onc cnd, a buckct, which is vcry chcap and too small, and
at thc othcr cnd, a vchorscpowcr dicscl pump, which is vcry cxpcn
sivc and too big. !t takcs a hcalthy man a day to lilt cnough watcr with
a ropc and buckct to irrigatc an cighth ol an acrc ol vcgctablcs, and
anothcr two days to carry it to his crops in sprinkling cans. !l hc has
cnough moncy to pay vc hundrcd dollars lor a vchp dicscl pump
and can aord two hundrcd dollars a ycar in dicscl lucl and rcpairs to
kccp it running, hc can kccp vc acrcs ol vcgctablcs watcrcd without
much troublc. 8ut this is hard to do on a total incomc ol thrcc hun
drcd dollars a ycar.
1rctbic rurrs
!n thc .cs Gunnar 8arncs, a Norwcgian cnginccr working lor Rang
pur inajpur Rural Scrvicc (RRS), a rural dcvclopmcnt organization
in northcrn 8angladcsh sponsorcd by Luthcran Vorld Scrvicc, dc
signcd thc trcadlc pump, a humanpowcrcd watcrlilting dcvicc that a
smallplot larmcr could buy with a sack ol ricc. Thc opcrator trcads on
two bamboo trcadlcs, cach ol which activatcs a twoandahallinch
cylindcr that sucks up watcr lrom a tubc wcll with a dcpth ol six to
twcntyvc lcct. Sincc groundwatcr ovcr most ol 8angladcsh lics shal
low, trcadlc pumps can bc uscd to lilt watcr in thc dry wintcr scason.
Thc pump itscll rctails lor cight dollars, and thc total cost ol a pump
installcd on a tubc wcll by a villagc wclldrillcr is twcntyvc dollars.
Vith this invcstmcnt and two to six hours ol labor a day, a lamily
could irrigatc a hallacrc ol vcgctablcs during thc dry scason, carning
an avcragc ol at lcast onc hundrcd dollars a ycar altcr cxpcnscs. 8cst
ol all, thc onclth or so ol smallacrcagc larmcrs who wcrc morc
o
OuL o PovcrLy
markctsavvy rcgularly carncd ncw nct incomc ol morc than vc hun
drcd dollars a ycar.
! workcd with Gunnar 8arncs and RRS to takc ovcr thc na
tional markcting and promotion ol trcadlc pumps through thc privatc
scctor, and altcr twclvc ycars, this produccd rcmarkably positivc impacts.
Donor investment in TP initiative $12 million
Smallholder investment in TP $37.5 million
Annual net smallholder return on investment $150 million
Table 4: Impact of Treadle Pumps (TP) in Bangladesh
Thcsc impacts did not stop in 8angladcsh. ! introduccd trcadlc
pumps at an unsubsidizcd pricc through privatcscctor cntcrpriscs in
!ndia, Ncpal, Cambodia, Myanmar, and Zambia, and many othcr organ
izations took up thc challcngc as wcll. KickStart, hcadquartcrcd in Kcnya,
brought trcadlc pumps lrom 8angladcsh to Kcnya, rcdcsigncd thcm
lor local usc, and sold somc scvcnty thousand in Kcnya and Tanzania.
ntcrprisc Vorks Vorldwidc, anothcr dcvclopmcnt organization, madc
and markctcd trcadlc pumps in Vcst Alrican countrics such as Nigcr.
Thcsc a.a million trcadlc pumps arc gcncrating morc than sacc
million ncw nct annual incomc lor dollaraday smallacrcagc larmcrs.
Thcn thcrc is a multiplicr impact on villagc cconomics in thc rangc ol
s6cc million pcr ycar. !n parts ol 8angladcsh and !ndia, thc inux ol
ncw incomc, couplcd with a drop in thc pricc ol dicscl pumps importcd
lrom China to bclow sacc, has crcatcd a rapid uptakc ol lowcost
dicscl pumps and thc crcation ol ccicnt watcr markcts as dicsclpump
owncrs scll surplus irrigation watcr in thc markctplacc. Happily, thcsc
watcr markcts arc now providing ccctivc compctition with trcadlc
pumps to bring aordablc irrigation watcr to smallacrcagc larmcrs in
8angladcsh and !ndia.
rorc-tNb-wtsncr rurrs
Adding a componcnt to trcadlc pumps that pushcs watcr to thc suc
tion unit crcatcs a prcssurc trcadlc pump that can pump up to sixty
lcct, but it costs twicc as much as thc suction pump and pumps lcss
o
watcr bccausc it takcs morc work to pump lrom dcpth. 8ut thc ropc
andwashcr pump, dcvclopcd in Nicaragua, can lilt watcr as much as a
hundrcd lcct. This is a pump bascd on pulling a ropc upward through
a pipc in thc wcll, with washcrs attachcd to thc ropc. As an opcrator
on thc surlacc turns a crank, thc ropc is drawn up through thc pipc,
carrying watcr to thc top. Somc sixty thousand ol thcsc ropcand
washcr pumps havc bccn sold in Nicaragua, primarily lor houschold
watcr. Ropcandwashcr pumps arc now bcing tcstcd in conjunction
with lowcost drip systcms to makc thc comparativcly small amount ol
watcr that can bc liltcd lrom dcpth with human powcr irrigatc cnough
plants to bc cconomically attractivc.
ricrobicsci rurrs
Vhcn it comcs to nonclcctric motorizcd pumps, dicscl pumps havc
advantagcs ovcr gasolinc cngincpowcrcd pumps bccausc thcy last
Treadle Pump Current
Organization Country Sales to Date Annual Sales Total Sales
IDE Bangladesh 1,567,987 40,000 2,071,763
India 353,542 15,000
Nepal 100,000 10,000
Cambodia 38,578 1,200
Myanmar 7,000 7,000
Zambia 4,656 800
KickStart Kenya & Tanzania 59,000 NA 59,250
Mali 250 NA
EnterpriseWorks Senegal 600 NA 17,181
Tanzania 131 NA
Niger 1,200 NA
Burkina Faso 15,250 NA
Government Malawi 75,000 NA 75,000
of Malawi
Total 2,223,194
Table 5: Global Treadle Pump Sales
o6
OuL o PovcrLy
o,
longcr and usc lcss lucl. Thc idcal sizc ol a dicscl pump that would t
a oncacrc larm is about thrccquartcrs ol a horscpowcr, but until now,
thc smallcst dicscl pump was a twohorscpowcr, commcrcially avail
ablc lrom China. Right altcr Vorld Var !!, a thrccquartcrhorsc
powcr aircoolcd microdicscl opcrating through a lriction whccl on
thc lront tirc ol bicyclcs was uscd to boost bicyclc powcr in uropc.
! and Practica, a utch dcvclopmcnt organization, arc now work
ing on prototypcs ol thc thrccquartcrhorscpowcr bicyclcpowcring
microdicscls modicd to drivc a watcr pump. !l this provcs ccctivc,
thcrc is a probablc global markct dcmand lor scvcral million micro
dicscls lrom oncacrc larmcrs who havc carncd cnough incomc to
invcst in mcchanizcd watcrlilting tools.
WaLcr SLoragc
!n most placcs in thc world, cvcn thc dry oncs, most ol thc ycars rain
lalls during thc two to lour months ol thc monsoon scason. !n thc hot,
dry climatc ol thc statc ol Maharastra in !ndia, lor cxamplc, small
acrcagc larmcrs clds bccomc quagmircs in latc summcr. Altcr that, it
bccomcs hottcr and dricr until bclorc thc monsoon, whcn tcmpcra
turcs risc to onc hundrcd twclvc dcgrccs Fahrcnhcit in thc shadc. This
is whcn markct priccs lor lruits and vcgctablcs rcach thcir highcst
lcvcls, but thcrc is no hopc ol producing a crop without irrigation.
! is now dcsigning a lourhundrcddollar plasticlincd pond
with plastic covcr, thirtyvc lcct in lcngth and width and scvcn lcct
dccp. This lowcost smalllarm watcrstoragc systcm will hold two
hundrcd thousand litcrs ol monsoon rainwatcr, cnough to dripirrigatc
a quartcr acrc ol highvaluc vcgctablcs during thc dricst timc ol thc
ycar lor onc hundrcd days and gcncratc vc hundrcd dollars in ncw
nct incomc.
At thc othcr cnd ol thc scalc is Lakc Nasscr, thc lakc bchind Aswan
am, thrcc hundrcd thirty milcs long and twcntyonc milcs widc,
with a surlacc arca ol morc than million acrcs. About , pcrccnt ol
thc watcr divcrtcd lor human usc is lost lrom cvaporation lrom rcscr
voirs bchind big dams. !n thc world ol dams, a big dam is anything
ovcr ltccn mctcrs high (about lty lcct). ams lcss than ltccn
mctcrs high arc classicd as small dams. ollaraday larmcrs rarcly
scc a dam highcr than two mctcrs, il thcy scc onc at all.
l coursc, smallacrcagc larmcrs likc 8ahadur dont nccd a dam.
Hc is lucky cnough to havc a strcam running all ycar that brings him a
hallinch pipc lull ol watcr twcntylour/scvcn. Most oncacrc larmcrs
in 8angladcsh havc groundwatcr tcn or ltccn lcct down during thc
dry scason, and all thcy havc to do is to suck it out with a dcvicc such
as a trcadlc pump.
8ut larmcrs who lack acccss to cithcr a strcam or shallow ground
watcr may nccd to trap monsoon rainwatcr and storc it lor six months
until thc dricst timc ol ycar whcn crop priccs arc at thcir pcak. For
thcm, thc critical qucstion is How much watcr do ! nccd to storc to
bc ablc to carn vc hundrcd dollars:
Thc answcr is prctty straightlorward. You can just about always
clcar vc hundrcd dollars lrom a quartcr acrc (onc thousand squarc
mctcrs) ol lruits and vcgctablcs during thc hottcst and dricst timc ol
ycar, and in most placcs, smallplot larmcrs would nccd to storc two
Lowcost watcr storagc: This tcnmctcrbyoncmctcrdiamctcr doublcwallcd plastic
cylindcr, supportcd by an carthcn trcnch, holds twcntyvc hundrcd gallons ol watcr.
o8
OuL o PovcrLy
hundrcd thousand litcrs or so in an cncloscd tank to dripirrigatc a
quartcr acrc ol vcgctablcs lor a hundrcd days during thc dry scason.
Thc irony is that cvcn bclorc biblical timcs, pcoplc wcrc trapping,
gathcring, and storing rainwatcr lor latcr usc. !n thc Ycllow Rivcr
8asin ol China, handdug undcrground cistcrns lincd with clay havc
bccn uscd lor morc than a thousand ycars to storc monsoon rainlall
collcctcd by contourcd runo channcls. Millions ol thcsc dry wclls
arc still in usc, taking advantagc in modcrn timcs ol runo lrom
roadbcds, and using somc ol thc storcd watcr lor irrigation. 8ut asidc
lrom Chincsc dry wclls, which cost about onc hundrcd lty dollars lor
a tcnthousandlitcr storagc systcm, thcrc just arcnt any availablc prac
tical modcls that can storc two hundrcd thousand litcrs ol irrigation
watcr in an cncloscd tank and bc chcap cnough lor smallacrcagc
larmcrs to aord.
! bclicvc a lourhundrcddollar plasticlincd cncloscd storagc systcm
will bc purchascd by millions ol smallplot larmcrs around thc world.
Hcrc arc somc othcr options lor oncacrc larmcrs who dont havc
acccss to dryscason strcams, springs, lakcs, or ncarthcsurlacc
groundwatcr.
s1orc wt1cr uNbcrcrouNb
Thc bcst storagc rcscrvoir may bc in undcrground sand laycrs callcd
aquilcrs. !n thc .cs, a Hindu rcligious movcmcnt, Swadhyaya Pari
var, lcd thousands ol larmcrs in Gujarat to build watcrways that dircct
monsoon runo into largc opcn wclls. This collcctivc action rcstorcd
groundwatcr aquilcrs and madc thc storcd watcr availablc lor pumping
to thc surlacc during thc dry scason whcn crop priccs arc at thcir pcak.
Thcrc is a hugc untappcd potcntial lor dirccting monsoon rainwatcr
into undcrground aquilcrs, whcrc it can bc storcd without any loss to
cvaporation and pumpcd out again during thc timc ol ycar whcn
priccs lor lruits and vcgctablcs arc at thcir pcak.
s1orc wt1cr tsovccrouNb
.. Build a pond. Any scllrcspccting smallacrcagc larmcr knows
how to build a hundrcdsquarcmctcr pond that is two mctcrs
o
dccp. Thc kcy to making it ccctivc and aordablc is to linc it
with plastic that prcvcnts lcaking and lasts at lcast two or thrcc
ycars. !l thc watcr is storcd lor scvcral months, larmcrs nccd to
nd ways to climinatc or dccrcasc cvaporation. Shadc providcd
by trccs or by bamboo polcs covcrcd with banana or othcr broad
lcavcs hclps, and ! is now dcsigning a lowcost plastic covcr
to climinatc surlacc cvaporation.
a. Crcatc a low-cost watcr tank. Thc giant condom solution: To
prcvcnt cvaporation, thc idcal lorm ol storagc is an cncloscd
tank. 8ut thc chcapcst lcrro ccmcnt tank costs a rupcc a litcr
(slightly morc than two ccnts US) in !ndia. To lowcr this cost,
! in !ndia has dcsigncd and cldtcstcd a tcnmctcrlong,
oncmctcrdiamctcr, doublcwallcd plastic tubc in an carthcn
trcnch (scc pagc .c). Thc tubc costs lorty dollars and storcs tcn
thousand litcrs ol watcr. This is cnough to providc drinking wa
tcr lor a lamily ol vc lor a ycar and havc somc lclt ovcr lor a
small dripirrigatcd kitchcn gardcn. !nitial markct tcsts lor thc
cncloscd plastic tubc arc taking placc in !ndia in acc,.
Thc wading pool solution: A crcativc studcnt dcsign tcam at
Stanlord camc up with an cvcn simplcr solution lor a lowcost
abovcground, cncloscd watcrstoragc systcm. Thcy took thc dc
sign ol a simplc plastic wading pool as a starting point. This is a
plastic containcr shapcd a bit likc an upsidcdown bowlcr hat.
As thc storagc containcr is llcd, thc watcr prcssurc pushcs
against thc sidc walls and givcs shapc to it. Sincc thc mcchani
cal lorccs acting on thc sidc walls arc a lunction ol thc dcpth,
thcrc should bc no limitation in sizc. Thc sidcwall lorccs lor a
twolootdccp wading pool rcmain thc samc il it incrcascs in
sizc lrom thrcc lcct by lour lcct to ninc lcct by twclvc lcct.
A larmcr running a gravity pipc lrom a strcam can roll up
thc plastic wading pool likc a bcdroll and carry it to thc part ol
thc cld hc or shc wants to irrigatc. !l hc has a thousandlitcr
wading pool, all hc has to do is ll it with a pipc lrom thc
strcam and run anothcr pipc lrom thc pool to thc lowcost drip
irrigation systcm.
o
OuL o PovcrLy

Now, ! say all this without knowing il it will actually work. Thc
studcnt tcam and ! Myanmar arc still tcsting it in thc cld.
WaLcr DisLribuLion
Sincc ,c pcrccnt ol watcr divcrtcd lor human usc in thc world gocs to
irrigation, thc astonishing lact is that somc c pcrccnt ol irrigation
watcr is applicd to clds and crops using inccicnt surlacc mcthods
that havc bccn uscd unchangcd lor thc past cight hundrcd ycars. !n
most canal systcms, thcrc arc hugc watcr losscs through sccpagc bc
twccn thc sourcc and thc cld. An unintcndcd conscqucncc is that thc
lcakagc rcstorcs shallow aquilcrs, allowing many small larms to install
shallow wclls and pumps dclivcring irrigation watcr on dcmand. 8ut
whcn it comcs to dclivcring this watcr to thcir crops, larmcrs usually
apply thc inccicnt surlacc mcthods cvcryonc clsc uscs.
Altcr a smallacrcagc larmcr has painstakingly collcctcd and storcd
watcr in a twohundrcdcubicmctcr pond, hc nccds an ccicnt watcr
distribution systcm to gct thc watcr to his crops without using it all up
in thc rst days irrigation. Hc nccds lowcost dripirrigation systcms
that cnsurc that c or c pcrccnt ol thc prccious storcd watcr gocs
right to thc roots ol thc plants, or somcthing cqually ccicnt. For
othcr crops, lowcost, lowprcssurc sprinklcr systcms, whilc not quitc
as ccicnt as drip systcms, arc much morc ccicnt than convcntional
surlacc irrigation. 8ut convcntional drip and sprinklcr systcms simply
arc not availablc at a pricc a dollaraday larmcr can aord and at a
sizc that ts that larmcrs typical quartcracrc plots.
iow-cos1 brir irrict1ioN
!vc alrcady dcscribcd aordablc smallplot dripirrigation systcms and
thcir potcntial lor rcaching at lcast .c million oncacrc larmcrs ovcr
thc ncxt tcn or ltccn ycars (scc Figurc .).
iow-cos1 srriNxicr svs1crs
Smallacrcagc larmcrs usc lowcost, lowprcssurc sprinklcrs instcad ol
lowcost drip systcms lor plants that arcnt in rows or closcly spaccd,
lor hilly clds, and whcn watcr is loadcd with mincrals that clog drip
irrigation systcms. Vhcn Jack Kcllcr startcd working on thc dcsign ol
smallplot, lowcost sprinklcr systcms, his rst stcp was nding sprin
klcr hcads capablc ol distributing watcr unilormly at vc mctcrs ol
prcssurc gcncratcd by watcr owing lrom a tank vc mctcrs abovc thc
ground. At that timc, thc standard prcssurc hcad nccdcd lor convcn
tional sprinklcr systcms was twcnty mctcrs. Thcsc ! lowcost
sprinklcr systcms arc just cmcrging lrom cldtcsting in !ndia, and
will cost about cighty dollars lor a hallacrc systcm.
t rtNcc or Ncw trrorbtsic srtii-rio1
irrict1ioN 1oois
! havc dcscribcd a lcw ol thc aordablc smallplot irrigation tools that
arc bcing dcvclopcd. Thcy rcprcscnt only thc tip ol thc iccbcrg. thcr
tools such as aordablc wclldrilling and construction tcchnology,
Figurc .. Schcmatic ol a .csvintagc ! lowcost microtubc dripirrigation systcm
:
OuL o PovcrLy

lowcost, ccicnt smallplot surlacc irrigation, and thc dcvclopmcnt
ol total rainwatcr harvcsting, storagc, and application systcms lor onc
acrc larms arc waiting to bc dcvclopcd.
WhaL Is NcxL`
Vithout acccss to a sourcc ol watcr lrom thc ycarround strcam and a
lowcost drip systcm to bring it to his cucumbcrs, 8ahadur could ncvcr
havc cscapcd lrom povcrty. Acccss to aordablc smallplot irrigation
was a ncccssary, but not a sucicnt, condition. To carn cnough to lilt
thcmsclvcs out ol povcrty, 8ahadur and his lamily nccdcd to lcarn
about a ncw cld ol intcnsivc cashcrop agriculturc and how to scll
thcir crops in thc markctplacc at a prot.
In Nepal, a gravity tank irrigates o-season cucumbers.
The woman is lling the tank with a pipe delivering water
from a stream above the eld.
cntr1cr scvcN
A Ncw
Agriculturc or
OncAcrc Farms
nic v~: cvvvx cucu:nvvs: s~iu xvisnx~ n~n~uuv :n~v~
cmphatically as hc cmbraccd a grccn armlul lovingly.
! had askcd him what thc kcy was to his rst big bump in incomc.
Thcn, ol coursc, wc had no choicc but to lollow him rcspcctlully into
his cld, watch as hc snippcd lar morc cucumbcrs than wc would cvcr
bc ablc to cat, and admirc cach onc ol thcm. Thcn wc had to chow
down on slicc altcr sliccbut not bclorc hc garnishcd cach onc with a
dclicatc sprinkling ol salt.
Thcsc lightly saltcd cucumbcr sliccs tastcd juicy and slightly bittcr
to mc, but nothing spccial. Thcy wcrc just lrcsh cucumbcrs. 8ut to
Ncpalis in thc middlc ol thc hot, dry wintcr, thcrc was somcthing
magical about thcm. Thcir juicincss sccmcd to bclic thc parchcd land
scapc, and most Ncpalis attributcd hcaling and illncssprcvcnting
powcrs to thcm. !n thc markct at Mugling, cucumbcrs sold lor thirty
to lorty rupccs a kilo (about lortyvc ccnts US) bctwccn January and
May, thrcc timcs thc normal pricc ol tcn rupccs pcr kilo, bccausc !ndian
larmcrs couldnt grow cucumbcrs in wintcr and lcw Ncpali larmcrs
had acccss to irrigation watcr in thc dry scason. Vc saw cight and
tcnycarolds drcsscd in tattcrs hawking cucumbcr sliccs at bus stops,
and along thc road to Kathmandu at a spring with cool watcr whcrc
cvcrybody stoppcd lor a drink, a littlc shop with bamboo walls and a
bananalcal rool sold thcm at thrcc timcs thc normal pricc.
So whcn it camc to dcciding what to plant in January, right altcr hc
had borrowcd hall ol thc thirtysix dollars hc nccdcd to buy and install
his rst sixtccnthacrc drip systcm, lor 8ahadur it was a nobraincr.
Cucumbcrs!
Thc rst stcp was to borrow an ax lrom a ncighbor, hikc up into
thc lorcst abovc 8ahadurs housc, and carry down shouldcrload altcr
shouldcrload ol gnarlcd trccs and branchcs, cach about tcn lcct high.
Thcn hc dug thcm dccp into thc ground in rows lour lcct apart, with
thrcc lcct bctwccn cach ol thc dcad trccs. This skclctal lorcst was a
pcrmancnt installation. !t providcd thc structural support lor thc cu
cumbcr vincs plantcd in January, but hc did not takc down thc branchcs
at thc cnd ol cucumbcr scason in May. This dcad lorcst providcd thc
climbing spacc lor thc spongc gourds, bittcr gourds, and bcans 8aha
dur and his lamily would grow during thc monsoon scason lrom Junc
to Scptcmbcr, carning anothcr dcccnt prot.
Vhcn ! talkcd to 8ahadur and his lamily two ycars altcr thcy har
vcstcd thcir rst crop ol dripirrigatcd cucumbcrs, thcy had cxpandcd
thcir oscason dripirrigatcd vcgctablc cntcrprisc to onc thousand
squarc mctcrs (a quartcr acrc) and wcrc clcaring a stcady vc hundrcd
to six hundrcd dollars a ycar lrom thcir oncacrc larm, instcad ol thc
unprcdictablc lty to onc hundrcd lty dollars ol prior ycars. Thcy
still grcw ricc on thcir oncacrc rainlcd cld by thc rivcr in thc Junc
Scptcmbcr monsoon scason, and thcy lollowcd it with black gram and
somc maizc. Thcy rotatcd black gram, maizc, and a lcw othcr crops on
somc ol thcir upland clds as wcll. Thcy lclt comlortablc now dcvot
ing morc ol thcir clds to growing highvaluc cash crops in placc ol
locusing only on ricc, black gram, and maizc, thc crops that lcd thc
lamily but carncd littlc or no incomc.
Thc crop rotation on thcir ncwly dripirrigatcd quartcr acrc lookcd
somcthing likc this:
From January through May, thcy grcw cucumbcrs, lrom which thcy
carncd a nct prot ol scvcntccn thousand rupccs (about two hundrcd
6
OuL o PovcrLy
dollars). Vhcn thc monsoon scason camc, thcy plantcd bittcr gourds,
spongc gourds, and bcans in thc samc cld, which uscd thc samc dcad
branchcs to climb. ! was surpriscd to hcar that thcy cvcn uscd thc drip
irrigation systcm occasionally during thc monsoon scason during gaps
in thc rain. Thcy carncd anothcr scvcntccn thousand rupccs lrom scll
ing bcans, bittcr gourds, and spongc gourds.
!n thc scason lrom Scptcmbcr through cccmbcr, whcn it raincd
intcrmittcntly, thcy carncd anothcr lour thousand rupccs (sixty dollars or
so) by growing oscason cauliowcr and sclling it to tradcrs who camc
to thc larm. Thcy madc anothcr lty dollars lrom chilics, onions, and
assortcd vcgctablcs, but atc at lcast hall ol thcsc vcgctablcs thcmsclvcs.
8y switching thc cmphasis ol thcir smalllarm grassroots cntcrprisc
lrom subsistcncc crops to highvaluc cash crops, thcy lound thcmsclvcs
propcllcd almost ovcrnight lrom barc survival to bccoming part ol a
lastgrowing middlc class in Ncpal. And thcy wcrc dctcrmincd to kccp
lcarning.
cu 8ahadur Thapa stands with his trclliscd monsoonscason crop, just as his lathcr
did a lcw ycars bclorc.
,
A Ncw AgriculLurc or Onc-Acrc Farms
Lcarning to grow oscason cucumbcrs and cauliowcr took thrcc
months ol training by an ! agronomist who camc to thc villagc
cvcry two wccks on his bicyclc. Hc dcmonstratcd how to raisc cucumbcr
sccdlings in a lowcost, twoloothigh, plastictunncl grccnhousc altcr
stcrilizing thc soil bcd, and cxplaincd thc mixturcs ol nutricnts and
micronutricnts to apply at dicrcnt stagcs ol thc plant growth cyclc.
Small Farms Arc Vcry Big
Surprisingly, small larms likc 8ahadurs play a much biggcr rolc in
global agriculturc than most pcoplc rcalizc. For twcnty ol thc twcnty
vc ycars ! workcd with smallacrcagc larmcrs, ! undcrcstimatcd thc
importancc ol small larms in world agriculturc. ! kncw how important
thcy wcrc lor povcrty, but ! assumcd thcy rcprcscntcd only .c or . pcr
ccnt ol larmland. ! was astonishcd to lcarn how important thcy arc.
! was not alonc. Thc lcadcrs in univcrsitics whcrc courscs in agri
culturc arc taught, and organizations that lund, plan, and implcmcnt
agriculturc initiativcs havc undcrcstimatcd thc hugc rolc that larms
smallcr than two acrcs play in povcrty and thc rolc that larms smallcr
than vc acrcs play in thc agricultural productivity ol thc planct.
Cucumbcrs growing
on trclliscd vincs in
Ncpal
8
OuL o PovcrLy
Vhat ksana Nagaycts, a rcscarch analyst at thc !ntcrnational
Food Policy Rcscarch !nstitutc (!FPR!), lound whcn shc prcparcd a
background papcr on small larms in acc is rcmarkablc.
l thc a million larms in thc world, million, some percent,
are smaller than ve acres. Farms undcr vc acrcs (two hcctarcs) rcprc
scnt pcrccnt ol thc larms and 6 pcrccnt ol thc total cultivatcd arca
in 8angladcsh, and thcy rcprcscnt , pcrccnt ol larms and 6c pcrccnt
ol total cultivatcd arca in thiopia. !n China, pcrccnt ol all larms
arc smallcr than vc acrcs (scc Tablc 6).
Thc avcragc larm sizc in both Asia and Alrica is now ..6 hcctarcs
(., acrcs) (scc Tablc ,). Thc larms cultivatcd by dollaraday lamilics
arc much smallcr than thc acrc avcragc. Farm sizc in thc Unitcd Statcs
and uropc, whcrc much ol thc lcadcrship ol global agricultural rcscarch
institutions originatcs, is dramatically highcr and continucs to risc,
whilc larm sizc in dcvcloping countrics continucs to lall (Tablc ).`
!n spitc ol thc prcdictions ol cconomists, avcragc larm sizc in dc
vcloping countrics stcadily dccrcascd (Tablc ),`' probably bccausc ol
rapid population growth. Avcragc larm sizc in thc Unitcd Statcs and
in just about cvcry country in uropc, howcvcr, is stcadily incrcasing,
just as cconomists prcdict.
!t is clcar that small larms comprisc a surprisingly high portion ol
total cultivatcd acrcagc in dcvcloping countrics (scc Tablc ).`
Farms lcss than vc acrcs contributcd c pcrccnt ol loodgrain pro
duction and dominatcd thc dairy scctor in !ndia in .c., thcy madc
up pcrccnt ol total agricultural production in Kcnya in .. As ol
acc, smallplot larmcrs contributcd pcrccnt ol total agricultural
production in Malawi and , pcrccnt ol milk production in thiopia.
!n Russia in acc., larms lcss than vc acrcs produccd . pcrccnt ol thc
milk, , pcrccnt ol thc mcat, c pcrccnt ol thc vcgctablcs, pcrccnt ol
thc potatocs, and a pcrccnt ol thc cggs.``
Thc Sizc o Dollar-a-Day Farms
!l thcrc arc million small larms and a lamily ol vc livcs on cach ol
thcm, thcn a.a billion ol thc 6.a billion pcoplc in thc world livc and work
on small larms. 8ut thc larms on which cc million pcoplc carn a living

Number of farms Share of farms under
Country Census year under 2 hectares 2 hectares, percent
Asia
China 1997 189,394,000 98
India 199596 92,822,000 80
Indonesia 1993 17,268,123 88
Bangladesh 1996 16,991,032 96
Vietnam 2001 9,690,506 95
Africa
Ethiopia 200102 9,374,455 87
Nigeria 2000 6,252,235 74
DR Congo 1990 4,351,000 97
Tanzania 199495 2,904,241 75
Egypt 1990 2,616,991 90
Americas
Mexico 1991 2,174,931 49
Peru 1994 1,004,668 58
Brazil 1996 983,330 21
Ecuador 19992000 366,058 43
Venezuela 199697 133,421 23
Europe
Russia* 2002 16,000,000 98
Ukraine 2003 6,214,800 99
Romania 1998 2,279,297 58
Bulgaria 1998 1,691,696 95
Poland 2002 1,494,100 51
Sourccs: Calculatcd by Nagaycts bascd on FA (acc., acc) and data lrom national
statistical agcncics. Rcproduccd with pcrmission ol !FPR! (scc Notcs, pagc a.).
ata arc bascd on larm sizc ol lcss than . hcctarc.
Table 6: Top Five Countries with the Largest Number of Small Farms, by Region
:o
OuL o PovcrLy
ol a dollar a day or lcss arc much smallcr than vc acrcs typically onc
acrc dividcd into lour or vc scattcrcd plots. Thc scvcral thousand dollar
aday larms ! havc visitcd rangc lrom a hundrcdth ol an acrc in pcri
urban arcas ol dcnscly populatcd countrics to tcn acrcs in dry rcgions,
but thcir usual sizc is onc acrc.
Small Farms and Modcrn AgriculLurc
!l pcrccnt ol all thc larms in thc world arc smallcr than vc acrcs
and il thcy producc morc than hall thc crops, mcat, and dairy products
in most dcvcloping countrics, thcn surcly most ol thc cuttingcdgc
rcscarch in agriculturc in thc world is ccntcrcd on improving productivity
and incomc ol small larms, right:
Vrong!
Vhy should lcadcrs in agriculturc consistcntly ovcrlook thc impor
tancc ol small larms:
Thc answcr isnt mystcrious.
Thc ccntcrs ol cxpcrtisc in agriculturc, whcrc luturc lcadcrs in dc
vcloping countrics comc lor thcir training, arc in thc Unitcd Statcs, a
country whcrc thc avcragc larm sizc in acca was lour hundrcd lorty
six acrcs, and in uropc, whcrc thc avcragc larm sizc in acc was sixty
cight acrcs. !t is pcrlcctly natural lor prolcssors in Vcstcrn univcrsitics,
who do most ol thcir Ph rcscarch on Vcstcrn larms, to scc cvcry
thing in thc contcxt that is lamiliar to thcm and ol whcrc thcy do thcir
World region Average farm size, hectares
Africa 1.6
Asia 1.6
Latin America and Caribbean 67.0
Europe* 27.0
North America 121.0
Sourcc: von 8raun acc. Rcproduccd with pcrmission ol !FPR! (scc Notcs, pagc a.).
ata includc Vcstcrn uropc only.
Table 7: Approximate Farm Size by World Region
:
Average Total area Number of
farm size, of holdings, farms under
Country Census year hectares hectares 2 hectares
Selected developed countries
United States 1969 157.6 430,321,000 108,370
2002 178.4 379,712,151 NA
United Kingdom 1970 55.1 17,992,312 NA
1993 70.2 17,144,777 NA
Austria 1969 20.7 7,490,463 75,840
1990 26.7 7,217,498 38,694
Germany 1971 14.2 15,236,139 195,198
1995 30.3 17,156,900 90,600
Selected developing countries
DR Congo 1970 1.5 3,821,916 2,026,740
1990 0.5 2,387,700 4,351,000
Ethiopia 1977 1.4 6,862,200 3,675,500
200102 1.0 11,047,249 9,374,455
China 1980 0.6 NA NA
1999 0.4 NA NA
India 1971 2.3 162,124,000 49,114,000
1991 1.6 165,507,000 84,480,000
199596 1.4 163,357,000 92,822,000
Indonesia 1973 1.1 16,394,000 12,712,791
1993 0.9 17,145,036 17,268,123
Nepal 1992 1.0 2,598,971 2,407,169
2002 0.8 2,654,037 3,083,241
Pakistan 197173 5.3 19,913,000 1,059,038
2000 3.1 20,437,554 3,814,798
Sourcc: Calculatcd by Nagaycts bascd on FA (acc., acc). ata lor China arc
lrom Fan and ChanKang (acc). Rcproduccd with pcrmission ol !FPR! (scc Notcs,
pagc a.).
Notc: NA indicatcs that data wcrc not availablc.
Table 8: Trends in Average Farm Size and Number of Small Farms
::
OuL o PovcrLy
rcscarch. !t is also natural lor thcm to bc inucnccd by thc prolcssors
around thcm who rcgard small larms and thc simplc tools uscd on thcm
as cmbarrassing Stonc Agc abcrrations that will soon bc rcplaccd by
biggcr larms as markct lorccs progrcss.
!t is unlikcly that thcir studcnts will lcarn anything at all about how
to raisc thrcc goats in a hill villagc in Ncpal or how to grow a quartcr
acrc ol oscason vcgctablcs in a tribal villagc in !ndia and makc moncy
doing it. Vhilc largclarmccntcrcd agriculturc applics pcrlcctly wcll
Number of small farms as a Share of total area cultivated
share of total farms (percent) by smallholders (percent)
Egypt 1990
a
75 49
Ethiopia 1999/2000 87 60
DR Congo 1990 97 86
Uganda 1991 73 27
Bangladesh 1996 95 69
India 1995/1996 80 36
Indonesia 1993 88 55
Nepal 2002 92 69
Pakistan 2000 58 15
Brazil 1996 20 0.3
Ecuador 1990/2000 43 2
Panama 2001
b
53 0.6
Georgia 1998 96 33
Poland 2002 51 7
Romania 1998 58 14
Russia 2002
b
98 3
Ukraine 2003 99 8
Sourcc: FA acc., acc, Tanic acc., Goskomstat acca, Vorld 8ank/C acc.
Rcproduccd with pcrmission ol !FPR! (scc Notcs, pagc a.).
a. Lcss than a.. hcctarcs.
b. Lcss than . hcctarc.
Table 9: Small Farms as a Share of Total Number of Farms and Total Cultivable Area
:
to thc Vcstcrn larm contcxt, such proccsscs arc tragically wrong whcn
thcy arc applicd willynilly to dcvcloping countrics. Thcrc, larms arc
tiny and stcadily gctting tinicr, and thc smallcr and morc rcmotc thcy
arc, thc morc likcly thcy arc to bc occupicd by pcoplc who survivc on
lcss than a dollar a day. !l ! wcrc thc dictator ol world agriculturc lor a
day, ! would insist that cvcry candidatc lor a mastcrs or a Ph dcgrcc
in agriculturc bc rcquircd to implcmcnt a sixmonth rcscarch study
addrcssing agricultural problcms on oncacrc larms. Vc would scc a
rcvolution in thinking and practicc lor povcrtyrclatcd agriculturc.
!n thc mid .cs, ! gavc a talk at Corncll on !s work, and two
agricultural cnginccring prolcssors bcratcd mc lor promoting trcadlc
pumps, which thcy said lorccd pcoplc to pcrlorm coolic labor whcn
modcrn machincs wcrc availablc to libcratc thcm lrom thcir drudgcry.
Vhcn ! was hclping rclugccs build and scll vc hundrcd donkcy
carts in Somalia, a govcrnmcnt ocial thcrc who had a Ph lrom
8oston criticizcd mc publicly lor trying to implcmcnt a donkcy cart
projcct.
r. Polak, hc askcd, do you takc a donkcy cart to your occ in
cnvcr cvcry morning: How darc you rccommcnd donkcy carts to us:
Vc havc bccn using donkcy carts sincc bclorc you wcrc born, and now
wc arc trying to modcrnizc our country.
l coursc, two ycars latcr whcn thc donkcy cart projcct was thc
most succcsslul incomcgcncrating program in Somalia, hc saw things
dicrcntly.
Small Farms and AgriculLural InnovaLion
Thc grccn rcvolution hcld grcat promisc lor small larms. 8ut to grow
thc ncw highyiclding varictics ol ricc, whcat, and maizc, small
acrcagc larmcrs had to gain acccss to irrigation, lcrtilizcr, and thc culti
vation mcthods rcquircd lor thcsc ncw miraclc crops to ourish. Sccds
arc casy to dividc into small packagcs. 8ut growing onc kilo ol grain
rcquircs a thousand kilos ol watcr. Largc canal systcms supply su
cicnt watcr to grow ricc, whcat, and corn, but it is much morc dicult
to split irrigation cquipmcnt into small picccs than it is to dividc a kilo
ol ricc sccds into sixouncc packagcs. Constraincd acccss to aordablc
:
OuL o PovcrLy
smallplot irrigation has bccn a major barricr to adoption ol grccn
rcvolution sccds and stratcgics by larmcrs with scant larmland, so most
ol thcm, likc 8ahadur, grow thcir grain crops in thc monsoon scason,
whcn thcrc is a highcr risk ol catastrophic oods.
8ut thcrc is anothcr important constraint. Sincc dollaraday larm
crs arc chronically cashpoor, thcy havc troublc coming up with lty
dollars or so to covcr thc costs ol grccn rcvolution sccds, lcrtilizcr, and
pcsticidcs. vcn il thcy nd thc moncy, smallplot larmcrs arc rcluc
tant to invcst morc in inputs than thcy can aord to losc in an cvcry
tcnycars ood. This risk gocs away il thcy can grow ricc in thc dry
scason, but it takcs irrigation to do so.
Thc upshot ol all this is that although thc grccn rcvolution has in
crcascd ricc yiclds to vc to six tons pcr hcctarc in placcs likc Japan and
Taiwan, most dollaraday smallplot larmcrs plant opcnpollinatcd tra
ditional varictics ol ricc which rcquirc lcss lcrtilizcr, prcscnt lcss risk, and
will producc a rcasonablc rainlcd crop with yiclds in thc onctothrcc
tonspcrhcctarc rangc. Thc ncw biogcnctic sccds arc cvcn morc cxpcn
sivc than thc highyiclding varictics ol sccds ol thc grccn rcvolution.
rganic larming, on thc othcr hand, has grcat potcntial lor larmcrs
likc 8ahadur and his lamily. Many smallplot larmcrs alrcady practicc
organic larming by ncccssity il not by choicc, bccausc thcy cannot al
lord thc pcsticidcs and hcrbicidcs proscribcd by organic larming stan
dards. Thc problcm is thc diculty in implcmcnting systcms to ccrtily
millions ol scattcrcd oncacrc organic larms as organic, and to collcct
and markct thcir producc.
8ccausc ol thc rcmarkablc succcss ol thc grccn rcvolution, many
povcrty cradication lcadcrs arc cncouraging smallacrcagc larmcrs to
adopt grccn rcvolution sccds and stratcgics. 8ut lor many smallplot
larmcrs, thcrc arc lcss costly and lcss risky options that would incrcasc
thc amount ol lood thcy grow lor thc tablc.
A Ncw AgriculLurc or Dollar-a-Day
Onc-Acrc Farmcrs
Thc ncw agriculturc dcsigncd to cnd povcrty on small larms nccds to
bc rootcd in a thorough undcrstanding ol oncacrc larms in dcvcloping
:
countrics and ol thc daily cxpcricnccs, hopcs, and drcams ol thc lami
lics who carn thcir livings on thcm.
Thc thousands ol dollaraday oncacrc larmcrs ! havc intcrvicwcd
drcam ol two things:
.. Growing cnough to kccp thcir lamilics lcd through thc ycar.
a. arning cnough incomc cvcry ycar to cnd thcir povcrty.
crowiNc 1o xccr 1nc rtriiv rcb
Prun Chhon and his lamily livc in Tamol villagc in Cambodia, two
hours south ol Pnom Pcnh. Hc and his lamily grow ricc, ricc, and
morc ricc on thcir onchcctarc (a. acrcs) ol land. Thcy grow two ricc
crops cach ycar during thc long monsoon scason. Chhon cstimatcs
that it takcs about two tons ol ricc to lccd thc twclvc pcoplc in his
lamily lor a ycar, and thcy arc producing about a ton now lrom cach
ol thcir two ricc crops. l coursc, larmcrs in Taiwan, Japan, and othcr
countrics arc producing morc than vc tons ol ricc pcr hcctarc by us
ing grccn rcvolution sccds, much morc lcrtilizcr than Chhon applics,
and bcttcr irrigation. 8ut this rcquircs a much biggcr invcstmcnt in
sccds, lcrtilizcr, and chcmicals than Chhon and his lamily can aord,
and cvcn il thcy could borrow thc moncy, thcy couldnt aord to takc
thc risk ol losing such a big invcstmcnt in a major ood.
Prun Chhon applics urca to his ricc clds twicc lor cach crop,
broadcasting it by hand. Hc says his total invcstmcnt in sccd, lcrtilizcr,
and chcmicals is about ltyvc dollars. Much ol thc urca washcs away
in a hcavy rain, and somc ol it gascs o. 8ut now hc hopcs that a ncw
lorm ol sustaincdrclcasc urca granulcs introduccd by !, granulcs
that hc and his wilc pokc into thc ground with a stick bctwccn cvcry
lour ricc plants, will all go to his plants and doublc his yicld, cvcn
though it incrcascs his input costs lrom ltyvc dollars to scvcntylour
dollars. !l thcy can doublc thcir yicld, thcy could cnd up producing
lour tons and sclling two, bringing in thrcc hundrcd to lour hundrcd
dollars in incomc and at thc samc timc lccding thc lamily. 8ut bccausc
ol thc cxtra cost, Prun Chhon and his wilc will try it on only onc ol
thcir ricc crops this ycar il it works, thcy will apply it to both crops
ncxt ycar.
:6
OuL o PovcrLy
Ncxt to his housc, Prun Chhon and his lamily grow and thcn cat
an cighth ol an acrc ol vcgctablcs. Thcy irrigatc this plot by buckct
lrom a strcam six hundrcd lcct lrom thc housc. Pcrhaps with !s
hclp, thcy can gurc out how to movc thc watcr to thc cld with a
trcadlc pump, dclivcr it to vcgctablcs with a lowcost drip systcm, and
scll thcir vcgctablcs at a high pricc during thc dry scason. 8ut lor now,
all thcy can considcr is ricc.
!t takcs about a ton (ninc hundrcd kilograms) ol ricc to lccd thc avcr
agc rural lamily lor a ycar. 8ut most dollaraday larmcrs producc about
scvcn hundrcd kilos, only cnough to kccp thc lamily lcd lor ninc months,
and il thcy cant carn cnough through nding work, thcy go hungry.
Most oncacrc larmcrs put rst priority on using thcir land to kccp
thcir lamilics lcd through thc ycar. Thcy havc at lcast thrcc choiccs:
.. !ncrcasc thc yiclds ol thcir grain crops by using grccn rcvolution
sccds and thc watcr and lcrtilizcr thcy rcquirc.
a. Adopt lowcrrisk stratcgics such as implantcd sustaincdrclcasc
urca granulcs and thc Systcm lor Ricc !ntcnsication (SR!),
which incrcasc grain yiclds with traditional sccds and lowcash
invcstmcnts.
. Add vc hundrcd dollars a ycar in nct incomc by growing high
valuc, laborintcnsivc cash crops on a quartcr acrc, and usc it to
buy thc lood thcy nccd.
crowiNc rorc roob wi1n crccN rcvoiu1ioN iNru1s
Thc grccn rcvolution hasnt arrivcd in Alrica yct, and most dollara
day smalllarm lamilics dont usc grccn rcvolution sccds and stratcgics,
so thcy continuc to gct grain yiclds ol onc to thrcc tons pcr hcctarc.
Thcrc arc at lcast thrcc critical barricrs to smallholdcr acccss to thc
grccn rcvolution. Thc rst is abscnt acccss to aordablc irrigation. Thc
sccond is thc comparativcly high cost ol grccn rcvolution inputs to
cashstrappcd dollaraday larmcrs. Thc third is thc unacccptablc risk
ol loss in a tcnycar ood or drought.
Vithout acccss to dryscason irrigation, smallacrcagc larmcrs havc
to dcpcnd on monsoon rains to providc watcr lor thcir subsistcncc
crops. !n Ncpal, its not unusual to havc thrcc wccks without rain
:,
during thc monsoon scason, so a dollaraday larmcr who borrows
lty dollars lrom a moncylcndcr to adopt highyiclding varictics ol
ricc risks losing his land in lour months whcn it comcs timc to pay thc
moncylcndcr onc hundrcd dollars. Anothcr larmcr, who invcsts lty
dollars in highyiclding ricc in thc monsoon scason in 8angladcsh, risks
losing it all in a tcnycar ood.
iow-cos1 iow-risx s1rt1ccics ror crowiNc rorc roob
Stratcgics such as implantcd sustaincdrclcasc urca capsulcs, which
! has cldtcstcd and markctcd succcsslully with smallplot larmcrs
in thc ccntral hills ol \ictnam and in Ncpal and 8angladcsh, usually
cost littlc morc than traditional urca broadcasting, and lowcr thc risk
ol loss lrom runo in hcavy rains, whilc thcy incrcasc yiclds by ac pcr
ccnt or morc. !l a lamilys workcrs producc scvcn hundrcd kilos ol thc
ninc hundrcd kilos thcy nccd to kccp lood on thc tablc, and can
incrcasc thc yicld to cight hundrcd lty kilos, thcy only havc to nd
thc moncy to buy lty kilos instcad ol two hundrcd.
Thc Systcm lor Ricc !ntcnsication (SR!),` ` a lowcost, morc
laborintcnsivc way to incrcasc ricc yiclds, is sprcading rapidly among
smallplot larmcrs, although it has gcncratcd considcrablc controvcrsy.
Most ricc is grown undcrwatcr in ricc paddics. This kccps ricc plants
continuously supplicd with watcr and supprcsscs wccds. Sincc lcw
dollaraday larmcrs havc acccss to lormal irrigation, thcy dcpcnd on
monsoon rainlall to providc watcr to thcir ricc crop. Travclcrs going
south lrom Kathmandu to thc Tarai plains ol Ncpal bchold milcs and
milcs ol tcrraccs on slopcs so stccp thcy would challcngc a mountain
goat. Many ol thcsc tcrraccs wcrc built scvcral gcncrations ago with
hand tools assistcd by animal powcr. ach tcrracc collccts monsoon
rainwatcr, oods a small arca plantcd with ricc, and passcs it on to thc
tcrracc bclow, all thc way down to thc loot ol thc mountain.
!n contrast to thc usual practicc ol growing ricc, thc SR! approach
plants ricc sccdlings larthcr apart similar to thc way most pcoplc
grow tomatocs kccping thcir roots wct with pcriodic irrigation.
Many tcsts ol this approach rcport that ricc plants grown with this
mcthod arc sturdicr and havc a hcalthicr root systcm, partly bccausc
thc soil is acratcd. Yiclds as much as doublc thosc achicvcd with thc
:8
OuL o PovcrLy
convcntional ood mcthod. This givcs smallplot larmcrs thc attractivc
option ol incrcasing thcir ricc yiclds without changing lrom thcir
traditional varictics and without risking a big invcstmcnt in inputs.
!s initial trials ol SR! in \ictnam, Cambodia, and !ndia havc pro
duccd cncouraging rcsults. SR! opcns up thc possibility ol irrigating
small ricc clds with lowcost sprinklcr and drip systcms using much
morc modcst watcr sourccs. Thc rst cld tcsts in !ndia combining
SR! with a lowcost dripirrigation systcm havc produccd promising
incrcascs in yicld and quality ol thc ricc crop.
crowiNc ror ctsn 1o suv roob
Thc third approach to kccping thc smalllarm lamily lcd holds thc
most promisc in thc long run, but oltcn at rst appcars too risky to
smallacrcagc larmcrs. Thcy can carn an additional nct incomc ol vc
hundrcd dollars a ycar by growing a quartcr acrc ol irrigatcd highvaluc
cash crops during thc dry scason, and usc thc cash lrom lruits and
vcgctablcs to buy thc ricc, whcat, or corn nccdcd to covcr whatcvcr
shortlall rcmains altcr thcy havc adoptcd lowcost, lowrisk approachcs
to incrcasing thcir yiclds ol staplc crops. Millions ol larmcrs havc al
rcady takcn advantagc ol this cntrcprcncurial approach.
Thc PaLh Lo Ncw WcalLh or Dollar-a-Day
Onc-Acrc Farmcrs
Small larms in dcvcloping countrics havc thc lowcst labor ratcs in thc
worldbctwccn vc and tcn ccnts an hour. n a lcvcl playing cld,
small larms using lamily labor consistcntly outpcrlorm big larms using
hircd labor. Thc rst stcp that will lcad to prospcrity lor small larms is
to idcntily lour or vc highvaluc oscason lruits or vcgctablcs lor
cach agroclimatic zonc that arc likcly to havc sustainablc markct dc
mand and can bc grown succcsslully on quartcracrc intcnsivcly culti
vatcd, irrigatcd plots. Thcn, lor cach agroclimatic zonc, practical stcps
arc takcn to stimulatc privatcscctor nctworks that opcn smallholdcr
acccss to thc aordablc irrigation, inputs, and skills rcquircd to grow
thcsc crops, and to thc transportation and trading nctworks rcquircd to
:
o
OuL o PovcrLy
scll thcm at a prot. ! has alrcady hclpcd morc than a. million small
larm lamilics dramatically incrcasc thcir incomc using this approach.
8ut to makc it availablc to cc million dollaraday rural pcoplc
rcquircs a bold ncw agricultural initiativc ccntcrcd on oncacrc larms,
an initiativc comparablc in sizc to thc grccn rcvolution itscll.
Vc nccd to dcvclop spccics ol lruits, vcgctablcs, and othcr high
valuc cash crops customizcd lor small plots.
Vc nccd to dcsign and disscminatc through thc privatc scctor a
rangc ol aordablc smallplot irrigation tcchnologics.
And wc nccd to dcvclop ncw tcchniqucs ol crop rotation, pcst
managcmcnt, and intcnsivc divcrsicd horticulturc lor oncacrc larms
and quartcracrc plots.
nly a tiny proportion ol thc agricultural rcscarch in thc world to
day is ccntcrcd on optimizing nct cash incomc lrom thc quartcracrc
plots and oncacrc larms whcrc most ol thc worlds poorcst pcoplc
makc thcir livings. Modcrn agriculturc rcmains prcoccupicd with
grccn rcvolution stratcgics and thc contribution that biogcnctics can
makc to improvcd crop productivity, tcchniqucs that arc ccntcrcd on
largc larms.
Thcrc arc cxccptions thc Asian \cgctablc Rcscarch and cvclop
mcnt Ccntcr (A\RC) locuscs on vcgctablc production that has grcat
rclcvancc lor small larms, and somc ol thc institutions in thc Consul
tativc Group on !ntcrnational Agricultural Rcscarch (CG!AR) arc
paying morc attcntion to incomcgcncrating stratcgics on small larms.`
8ut cvcn whcn scicntists turn thcir attcntion to small larms, thcir major
locuscs continuc to bc macrocconomic policics and grccn rcvolution
practiccs, instcad ol starting at thc lcvcl ol thc smallplot larmcr and
working lrom thcrc. A conlcrcncc in ngland on Thc Futurc ol
Small Farms in acc` discusscd macrocconomic trcnds, prospccts lor
thc adoption ol grccn rcvolution and biogcnctic tcchnologics on small
larms, and thc impact ol thc growing supcrmarkct scctor on smalllarm
production, but had littlc to say that smallacrcagc larmcrs thcmsclvcs
would nd usclul.
nding thc povcrty ol most ol thc pcoplc in thc world who now
survivc on lcss than a dollar a day rcquircs thc crcation ol a translormcd
agriculturc that dcvclops laborintcnsivc cash crops and cultivation
mcthods capablc ol optimizing incomc on oncacrc larms.
Monsoon TomaLocs: A Paradigm or Lhc
Small-Farm Incomc RcvoluLion`
!n most dcvcloping countrics, tomato priccs rcach thcir pcak in thc
monsoon scason, whcn moisturc and humidity providc idcal conditions
lor molds and discascs to thrivc. Thc Asian \cgctablc Rcscarch and
cvclopmcnt Ccntcr (A\RC)` dcvclopcd a protablc approach
that allows small larmcrs to grow tomatocs in thc monsoon scason,
whcn priccs arc at thcir pcak.
First, A\RC graltcd tomato cuttings on discascrcsistant cgg
plant rootstock in thc controllcd cnvironmcnt ol small grccnhouscs.
Thcsc sccdlings wcrc plantcd on raiscd bcds undcr plastic rain shcltcrs
that dircctcd thc rain to runo channcls bctwccn thc raiscd bcds. A
hormonc spray, applicd during blossom timc, stimulatcd thc blossoms
to sct. Thc tcchniquc lor growing monsoon tomatocs was adaptcd to
conditions in 8angladcsh by rcscarchcrs at thc 8angladcsh Agriculturc
Rcscarch Ccntcr (8ARC). Although glitchcs dcvclopcd in thc com
mcrcialization and mass disscmination ol this approach in 8angladcsh,
it holds grcat promisc as a mcthod to incrcasc thc incomc smallacrcagc
larmcrs can carn lrom tiny plots by sclling thcir tomatocs at thrcc timcs
thc normal pricc. ! hclpcd sixtytwo smallplot larmcrs in thc hills
ol Ncpal ncar Pokhara install bamboolramc plastic rain shcltcrs to
grow monsoon tomatocs that wcrc thcn irrigatcd by lowcost drip sys
tcms. Total installation cost lor a ltysquarcmctcr simplc grccnhousc
plus thc drip systcm was onc hundrcd twcntyvc dollars, and larmcrs
carncd two hundrcd dollars a ycar in nct incomc. !l thcsc rcsults arc
sustainablc, an othcrwisc landlcss laborcr with acccss to onc hundrcd
squarc mctcrs ol land and with crcdit can carn ncw incomc ol lour
hundrcd dollars a ycar by growing intcnsivcly cultivatcd monsoon
tomatocs, rotatcd with othcr highvaluc crops.
High-Valuc Crops rom Lhc Iand o Lhc Iandlcss
! askcd thc lcadcrs ol scvcral villagcs in rural arcas in thc hills ol Ncpal
and in wcstcrn !ndia to introducc mc to thc two poorcst landlcss lami
lics in cach villagc. ! was astonishcd to lcarn that lunctional landlcssncss

in rural villagcs in dcvcloping countrics is an illusion. \irtually all
landlcss lamilics in rural arcas in dcvcloping countrics havc lunc
tional acccss to at lcast onc hundrcd squarc mctcrs ol arablc land pro
vidcd by thc landlord or thc villagc commons, il thcy dont own it
thcmsclvcs. Vith a thrccdollar drip kit, a lcw sccds, and somctimcs
somc instruction in intcnsivc horticulturc and markcting, thcy can
carn somc scrious moncy. Vhcn ! survcycd landlcss lamilics who did
just that, ! was amazcd at thcir crcativity.
Many uscd thc rools ol thcir cottagcs as landcxtcndcrs. A woman
! intcrvicwcd in a tribal villagc two hours lrom thc town ol !ndorc,
!ndia, had thrcc papaya trccs in hcr yard, and two squash vincs sprcad
ing on thc thatchcd rool ol hcr housc. 8ut shc grcw thcm only lor hcr
lamilys consumption. !t had ncvcr occurrcd to hcr that shc had room
lor tcn papaya trccs instcad ol thrcc and lor lour squash vincs instcad
ol two, and that shc could carn ncw incomc by sclling part ol what shc
produccd. Thc wholc lamily washcd in a dcsignatcd spot in thc court
yard, and it would bc casy lor thcm to incrcasc thcir crop yiclds by
throwing thcir wash watcr into thc gravity bag ol a thrccdollar drip
systcm. Shc could start growing bittcr gourd vincs on thc small lcncc
cnclosurc lor hcr animals. !l shc lcarncd handpollination tcchniqucs
lor thc squash blossoms whcn thcy appcarcd on hcr vincs, shc could
probably doublc thcir yicld. And shc could usc manurc tca or dilutcd
human urinc to lcrtilizc hcr crop.
Vhy not invcst scrious agricultural rcscarch into optimizing thc
dict improvcmcnt and incomc that landlcss lamilics in dcvcloping
countrics can gcncratc lrom thc small patchcs ol land ncxt to thcir
homcs and on thcir rooltops: A logical rst stcp would bc a survcy ol
thc crops and practiccs ol cxcmplary landlcss larmcrs who arc alrcady
doing it. This could bc lollowcd by thc dcvclopmcnt ol rcscarch and
onlarm tcst plots, and a contcst lor thc lamily or agriculturc rcscarch
tcam that can producc thc largcst nct annual incomc lrom a rooltop
and a hundrcdsquarcmctcr plot.
FcrLilizcrs or Small PloLs
Most oncacrc larmcrs in dcvcloping countrics havc acccss to a littlc
cow or bualo manurc, which thcy apply as top drcssing bclorc thcy
:
OuL o PovcrLy
plant thcir crops. Many latcr apply a littlc urca to thcir grain crops, lar
short ol thc rccommcndcd dosc. Vhcn thcy grow vcgctablcs, many
dont apply any lcrtilizcr bcyond thc initial manurc topdrcssing. Ap
plying aordablc lcrtilizcr through thc crop cyclc would dramatically
improvc yiclds and quality.
Smallplot larmcrs rarcly usc somc attractivc options that thcy havc
lor applying at lcast a small amount ol lowcost lcrtilizcr to thcir lruits
and vcgctablc plants oncc a wcck through thc growth cyclc. Using
thcsc options could doublc thcir incomc.
!l thcy havc onc or two animals or acccss to a bit ol manurc lrom a
ncighbor, thcy can makc manurc tca. A burlap bag lull ol manurc is
immcrscd in a drum ol watcr and lclt thcrc lor two days. Vhcn thc
bag is pullcd out, thc drum ol watcr contains a conccntratcd solution
ol plant nutricnts, which nccds to bc dilutcd onc to tcn with watcr
bclorc it can bc applicd to plants by hand or, bcttcr still, through thc
gravity tank ol a thrccdollar drip systcm that dclivcrs it dircctly to thc
roots ol plants.
For thosc with no acccss to animal manurc, a simplcr and chcapcr
mcthod is availablc. All it takcs is lor lamily mcmbcrs to urinatc
through a lunncl into a stoppcrcd containcr, add vc to tcn parts watcr,
and apply thc mix to plants. Human urinc is stcrilc, cxccpt lor rarc in
stanccs ol urinary tract inlcction. An avcragc adult produccs morc than
vc hundrcd kilos (twclvc hundrcd pounds) ol urinc pcr ycar, with a
solublc nitrogcn contcnt ol .a pcrccnt and to pcrccnt ol solublc
potassium and phosphorus. This is thc cquivalcnt ol twclvc hundrcd
pounds ol totally solublc .a lcrtilizcr a ycar. Four lamily mcmbcrs
capturing hall thcir urinc will collcct morc than cnough to providc thc
basc nutricnts lor a quartcracrc vcgctablc plot.
Smallplot larmcrs lcarn optimal lcrtilizcr practicc rapidly. An !
sta mcmbcr with a bicyclc bccamc thc cquivalcnt ol a barcloot agron
omist in thc hills ol Ncpal. !n a rcmotc villagc, hc providcd handson
instruction to a group ol cight womcn with no prior cxpcricncc growing
vcgctablcs. Thcy mastcrcd advanccd lcrtilizcr and micronutricnt stratc
gics and bccamc cuttingcdgc horticulturists in onc growing scason.

OuL o PovcrLy
Crop RoLaLion and InLcgraLcd PcsL ManagcmcnL
on Tiny PaLchcs o Iand
Customizing thc principlcs ol intcgratcd pcst managcmcnt (!PM) and
crop rotation lor quartcracrc plots rcquircs a translormation in larm
ing practicc, supportcd by ncw agricultural rcscarch. 8ut although
thcrc arc challcngcs in adapting currcnt larming stratcgics to tiny
patchcs ol land, small larms havc rcady acccss to usclul local inlorma
tion. Smallplot vcgctablc growcrs in a hill villagc in Ncpal in acca
wcrc losing most ol thcir lcttucc sccdlings to an inscct thcy dcscribcd
as a stcmcutting crickct. Nonc ol thc pcsticidcs rccommcndcd by
thc local agrivct dcalcr workcd. 8ut onc ol thc villagcrs lound a solu
tion that had provcd succcsslul a ycar or two carlicr in a ncighboring
villagc. Thc solution was as simplc as it was obvious. Thc growcrs cut
armluls ol longstcmmcd grasscs and sprcad thcm through thc lcttucc
plot. Thc crickcts couldnt distinguish bctwccn lcttucc stcms and grass
stcms, and crop losscs slowcd to a managcablc tricklc.
Vhat is nccdcd is no mystcrya ncw cld ol rcscarch applying
ccctivc crop rotation and intcgratcd pcst managcmcnt stratcgics to
highvaluc, laborintcnsivc cash crops grown on thc microplots ol onc
acrc larmcrs in dcvcloping countrics.
Thcsc ncw incomcgcncrating spccics ol cash crops and thc culti
vation mcthods to grow thcm ccctivcly will makc it possiblc lor
dollaraday larmcrs to carn cnough incomc to movc into thc middlc
class. Vill larmcrs lcavc thcir land as thcir incomc incrcascs: l coursc
thcy might. !l a larmcrs son bccomcs a doctor in thc city, whats wrong
with that: !l a larmcr carns cnough moncy to lcavc thc larm and start
a small shop in town, morc powcr to him! !l anothcr larmcr stays on
thc larm bccausc hc likcs it and its thc most ccctivc way to carn a
living, grcat! Prospcrity cnds hungcr and givcs larm lamilics thc lrcc
dom to choosc.
Treadling in comfort
Outdoor vegetable market in India
,
cntr1cr cicn1
Crcating Vibrant
Ncw Markcts
That Scrvc Poor
Customcrs
n~n~uuv ~xu nis v~:iiv xvvuvu ~ccvss :o ~ viii~cv uv~ivv
to gct good cucumbcr sccds and lcrtilizcr and a lowcost drip systcm
bclorc thcy could start producing armluls ol lat grccn cucumbcrs.
Vhcn thc cucumbcrs wcrc rcady to pick, thc lamily had to dctcrminc
how and whcrc thcy could makc a good prot lrom thcir crop.
Thcy could gct thc bcst pricc by sclling dircctly to customcrs lrom
a stand in thc Mugling markct, luckily only twclvc kilomctcrs away,
but this took a day ol timc lor Padam Maya Magar Thapa, 8ahadurs
rst wilc. r thcy could scll to hawkcrs. Vhcn wc wcrc stoppcd at an
army chcckpoint in Mugling, a twclvcycarold girl with patchcs on
hcr drcss gavc us a pcrsuasivc pitch to buy cucumbcr sliccs wrappcd in
wct papcr towcls. (Vc didnt buy.) Vc lcarncd latcr that shc was onc ol
8ahadurs salcspcrsons.
thcr hawkcrs with woodcn pushcarts scll sliccs ol cucumbcr through
thc windows ol buscs at bus stops. Vhilc thcy makc a nicc margin,
hawkcrs havc to cat thcir loss (litcrally) in thc lorm ol cucumbcrs lclt
ovcr at thc cnd ol thc day. Thc downsidc ol sclling to hawkcrs is that it
takcs a lot ol haggling, and somctimcs in thc cnd no dcal is struck.
A third option was to scll to wholcsalcrs at thc Mugling markct at
a sct pricc with no haggling. Thcsc wholcsalcrs in turn sold lrom thcir
pickup trucks to stalls along thc road or to rctailcrs in Kathmandu. 8ut
thc wholcsalc pricc uctuatcd daily and cvcn hourly, so bclorc thcy
brought thcir cucumbcrs to Mugling wholcsalcrs, 8ahadurs lamily
had to lcarn what thc pricc was.
!n doing all this, 8ahadur and his lamily had bccomc ccctivc
markct placc participants.
Small-Acrcagc Farmcrs and Lhc MarkcLs Whcrc
Thcy Buy and Scll
vcrybody in thc world participatcs in markcts. Likc 8ahadur and his
lamily, yak hcrdcrs in thc snowy mountains ol Ncpal arc cntrcprcncurs
who participatc in markcts. Thcy makc an annual trck to thc towns
and villagcs ol thc Tarai plains to tradc yak chccsc, dricd lruits, and
handicralts lor thc salt thcy nccd to survivc. Thcy arc oltcn bilkcd in
thcsc transactions bccausc thcy havcnt honcd thcir cntrcprcncurial
skills. !t would takc practicc, pcrhaps trading ycar round, to bccomc
morc skillcd ncgotiators.
Thc smallplot subsistcncc larmcrs in Cambodia who buy a bit ol
ammonium nitratc lcrtilizcr and scll surplus ricc whcn thcy havc a
good crop also participatc in markcts. Thc twoacrc ricc larmcrs in thc
Gandaki vallcy in Ncpal who livc two days lrom thc ncarcst road and
producc a rclativcly lowquality smokcd gingcr lor thc !ndia markct
participatc in markcts, but not vcry skilllully. Thcy could makc morc
moncy il thcy had a bcttcr undcrstanding ol thc quality standards ol
thc tradcrs to whom thcy scll thcir gingcr, and changcd thcir larming
and proccssing practiccs to bcttcr mcct thcsc standards.
Thc tribal villagcrs in thc ccntral hills ol \ictnam who havc no
writtcn languagc and grow upland rainlcd ricc, providing only hall ol
what thcir lamilics nccd lor thc ycar, arc also markct participants. Thcy
8
OuL o PovcrLy
work lrom daylight to dusk collccting grccn rattan vincs in thc lorcst,
and scll thcm lar too chcaply to clcvcr highway tradcrs in ordcr to buy
thc ricc thcy nccd. !l thc villagcrs kncw morc about thc going pricc lor
rattan in town, thcy might gct paid morc. !l thcy could lcarn how to
makc simplc rattan lurniturc, thcy might carn much morc.
Thc .c million larmcrs in subSaharan Alrica who carry watcr in
buckcts lrom strcams and ponds to thcir tiny plots ol tomatocs and
chili pcppcrs and onions that thcy thcn carry to thc highway to scll to
truckcrs, who in turn carry thc vcgctablcs to citics, participatc in mar
kcts. !l thcsc larmcrs could nd a morc ccicnt way to carry watcr to
thcir crops, thcy could producc and carn cight timcs as much as thcy
do now. Thc twclvc hundrcd pottcrs who livc in thc slum ol haravi
in Mumbai and makc owcrpots and watcr pots participatc in markcts.
!l thcy could makc highcnd ccramics and nd ways to scll thcm to
prospcrous customcrs, thcy could carn much morc lrom thcir cralt.
Unlortunatcly, thc markcts whcrc dollaraday pcoplc arc buycrs
and scllcrs havc morc holcs than a barrcl ol Swiss chccsc. Most mar
kcts in dcvcloping countrics whcrc dollaraday pcoplc arc buycrs and
scllcrs arc vcstigial, or so lar away thcy cant bc rcachcd, or dont cxist at
all. How can dollaraday pcoplc incrcasc thcir incomc il thcy dont
havc acccss to markcts whcrc thcy can buy thc tools thcy nccd to pro
ducc somcthing ol valuc, as wcll as markcts whcrc thcy can scll what
thcy producc at a prot:
MarkcLs and FnLrcprcncurs:
Thc MoLhcr o SymbioLic RclaLionships
ntrcprcncurs crcatc wcalth by cxploiting inccicncics in markcts,
and markcts stay ccicnt by taking advantagc ol thc activitics ol cntrc
prcncurs. !t is thc livcly, cvcrchanging dancc bctwccn markcts and
cntrcprcncurs that brcathcs lilc into both activitics. Thc annihilation
ol cntrcprcncurs in Pol Pots Cambodia and in Stalins Sovict Union
stunningly dcmonstratcd what happcns to markcts and nations whcn
cntrcprcncurs disappcar. 8ut thcrc is a prolound dicrcncc bctwccn thc
CrcaLing VibranL Ncw MarkcLs TaL Scrvc Poor CusLomcrs

intcractions ol cntrcprcncurs and markcts in aucnt countrics and thosc
in dcvcloping countrics. ! havc succccdcd and lailcd as an cntrcprcncur
in both.
Nichc OpporLuniLics in MaLurc MarkcLs
!n thc .cs two lricnds ol minc and ! bought a lortylourunit apart
mcnt complcx in Rivcrton, Vyoming. 8ccausc ol thc collapsc ol thc
oil and gas busincss, thc arcas biggcst cmploycr, vacancy ratcs wcrc
c pcrccnt, and wc bought thc apartmcnts lor hall ol what thcy cost to
build. Most ol Rivcrtons apartmcnts wcrc unlurnishcd, bccausc land
lords thought this attractcd morcrcliablc tcnants with lcwcr turnovcrs.
8ut thc only jobs bringing ncw tcnants to town wcrc sixmonth con
struction projccts, and thcsc tcmporary construction workcrs wantcd
lurnishcd units. Thc garagc salcs ol pcoplc who wcrc lcaving providcd
grcat opportunitics to buy good lurniturc at a dcccnt pricc, and our
ncwly lurnishcd units quickly brought our vacancy ratc to bclow
.c pcrccnt. Vc sold our apartmcnts two ycars latcr at a good prot.
!dcntilying nichcs and lling thcm is thc brcad and buttcr ol thc
rcgular intcrplay bctwccn markcts and cntrcprcncurs. 8ut rarc is thc
stubborn visionary who, likc Hcnry Ford, crcatcs rcvolutionary ncw
markcts.
A MoLor Car or Lhc Workingman
Vhcn Ford burst on thc sccnc, thirty or lorty car companics wcrc
producing and sclling automobilcs lor twcntytwo hundrcd dollars or
morc to rich playboys. Fords drcam was to build a vchundrcddollar
car lor thc workingman. To rcach this goal, hc invcntcd thc asscmbly
linc, brokc thc monopoly ol big car manulacturcrs, and organizcd a
national nctwork ol dcalcrs backcd by shrcwd markcting and promotion.
To gct thc pricc down, hc cut thc wcight ol cars by a third. nc ol his
quotcs on cost cutting bccamc lamous: You can havc any color you
want in a Modcl T as long as its black.
Ford gamblcd that hc and his company could makc big prots by
going lor thc highvolumc, lowmargin markct. Hc turncd out to bc
o
OuL o PovcrLy
spcctacularly right. !n .., standing on thc shouldcrs ol Hcnry Fords
brcakthroughs, global automobilc salcs passcd million.`
Making IL Smallcr and Chcapcr
Akio Norita, thc dynamic C ol Sony, said, ! do not scrvc markcts.
! crcatc thcm! Hc provcd his point by paying RCA twcntyvc thou
sand dollars lor thc rights to transistor radios at a timc customcrs lor
hi systcms wcrc truc bclicvcrs in thc notion that sizc counts and
wcrc willing to pay onc or two thousand dollars lor a hi sct. !n Akio
Noritas hands, thc initially tinny sound quality ol transistor radios
quickly improvcd, and thcy crcatcd a continuing rcvolution in thc
radio and cntcrtainmcnt industrics.
At a timc whcn mainlramc computcrs llcd rooms in univcrsitics
and cost morc than a million dollars, Jobs and Vozniak built a com
putcr that t on a studcnts dcsktop and cost lcss than vc thousand
dollars, triggcring an inlormation rcvolution that is still going on.
Rcvolutionary changc in markcts is usually bascd on brcakthroughs
in aordability and miniaturization, marricd to innovations in markct
ing and distribution.
!l thcrc arc thousands ol cntrcprcncurs cxploiting nichcs, and onc
or two rarc cntrcprcncurs crcating rcvolutions in maturc markcts, how
docs all this play out in thc markcts in dcvcloping countrics that scrvc
poor customcrs:
Typically, whcn nichcs opcn up in dcvclopingcountry markcts, not
a singlc cntrcprcncur stcps up to ll thcm. Markcts that scrvc poor cus
tomcrs in dcvcloping countrics ocr hundrcds ol Hcnry Fordsizc op
portunitics that go bcgging. Twcntyvc ycars ago, many pcoplc told mc
that il thcrc had bccn such a big dcmand lor an aordablc smallplot
irrigation tool, thc markctplacc would havc llcd it long ago. 8ut this
rarcly happcns in dcvclopingcountry markcts. Today thcrc is un llcd
dcmand lor hundrcds ol millions ol aordablc smallplot irrigation
tools such as trcadlc pumps and lowcost drip systcms, but thc markct
just sits thcrc, virtually undisturbcd by a singlc disruptivc innovation.
Vhy arc thc markcts in dcvcloping countrics so inccicnt: Vhy
arc thcy allowcd to slccp so tranquilly, undisturbcd by thc cntrcprcncurs

who disrupt aucnt markcts as a mattcr ol coursc: Vhy dont armics
ol cntrcprcncurs cxploit thc thousand opportunitics that arc availablc
as thcy do in Vcstcrn markcts:
8clow arc listcd somc ol thc morc obvious lactors that contributc
to thc inccicncy ol markcts in dcvcloping countrics.
Why Dcvcloping-CounLry MarkcLs OpcraLc
So Poorly
itcx or norc
Many pcoplc havc bccomc so uscd to bcing poor that thcy havc lost
hopc about anything changing. A poor villagc ! visitcd in a rcmotc arca
in Maharastra grows only subsistcncc crops with ncgligiblc markct valuc.
8ut twclvc kilomctcrs down thc road an cntcrprising larmcr pipcs watcr
lrom a wcll ncxt to a govcrnmcnt rcscrvoir to irrigatc onc hundrcd
acrcs ol tomatocs, and calls at lcast lour dicrcnt markcts cvcry morning
on his ccll phonc to nd thc bcst pricc. ! wcnt to mcct him with scvcn
larmcrs lrom thc poor villagc. Hc agrccd to tcach thcm what hc kncw,
but thcy wcrc rcluctant to takc advantagc ol thc opportunity. Thcy listcd
a litany ol obstaclcs that wcrc rcal cnough, but thc larmcrs sccmcd to
lack cnough cntrcprcncurial spirit to ovcrcomc thosc obstaclcs.
cioubcb visioN
Paradoxically, pcoplc in poor villagcs oltcn dont havc thc cycs to scc
opportunitics undcr thcir noscs, usually bccausc doing so would rcquirc
a brcak with normativc cultural cxpcctations.
A woman in a tribal villagc in !ndia carricd watcr by buckct lrom
thc community pump to thrcc papaya trccs closc to thc thorn lcncc
that bordcrcd hcr yard and to two pumpkin vincs growing on thc rool
ol hcr housc. Shc grcw only lor hcr tablc. Shc had room lor tcn or
twclvc papaya trccs around thc bordcr ol hcr yard and lour pumpkin
vincs on hcr rool, and with vcry littlc cort, shc could carn twcntyvc
hundrcd rupccs (lty dollars US) lrom sclling hcr surplus. Vhcn !
askcd hcr why shc didnt do this, shc said shc had ncvcr thought ol it
and wouldnt know how to go about sclling hcr crops.
:
OuL o PovcrLy
No iN1ciicc1uti-rrorcr1v rro1cc1ioN
Vc lcarncd carly on in 8angladcsh that il wc dcsigncd a ncw tool lor
smallacrcagc larmcrs, onc ol thc bcst ways to nd out il it was any
good was to put it on thc markct. Copics ol good products appcarcd
within two wccks. Sincc good products gct copicd so quickly, why
should innovators invcst timc and moncy to dcvclop thcm:
sussibics
Subsidics, or thc promisc ol subsidics that ncvcr matcrializc, oltcn
inhibit thc cmcrgcncc ol promising ncw markcts. Fivc ycars altcr wc
startcd massmarkcting trcadlc pumps in 8angladcsh, Prcsidcnt rshad
announccd around clcction timc that hc would providc tcn thousand
lrcc trcadlc pumps to larmcrs in his homc district. All privatcscctor
salcs in thc rcgion stoppcd immcdiatcly and staycd closc to zcro lor a
ycar, until larmcrs nally rcalizcd that only onc or two thousand pumps
ol vcry poor quality would bc dclivcrcd. Subsidics ol c pcrccnt lor
smalllarm cquipmcnt invariably do morc to undcrcut adoption ol
ncw products and mcthods than to promotc it.
corrur1ioN
Many privatcscctor manulacturcrs ol UN!CF hand pumps havc
lcarncd that thcir most ccicnt invcstmcnt in markcting and distribu
tion is to bribc onc or two govcrnmcnt buycrs. !l you arc a busincssman
in any onc ol scvcral Asian countrics, a tcnthousanddollar invcstmcnt
in buying your son a govcrnmcnt job with lilclong undcrthctablc
paymcnts attachcd is usually a morc rcliablc way to assurc his luturc
than invcsting in a busincss hc could run that lls an unmct markct nccd.
isoit1ioN
Thc vc thousand pcoplc who livc in thc town ol Jumla in thc hills ol
Ncpal arc a twclvcday walk lrom thc ncarcst road. Although small
plot larmcrs around Jumla grow outstanding applcs, thc costs to trans
port thcm to markct in Kathmandu arc prohibitivc, and so arc thc
rclativc costs lor basic houschold supplics, which cithcr comc in at
high cost on small plancs or arc carricd in on thc backs ol portcrs. Thc

isolation ol many villagc dollaraday lamilics constrains thcir ability
to intcract productivcly with thc urban and pcriurban markcts whcrc
many ol thcir natural supplicrs and customcrs livc and conduct thcir
busincss.
itcx or iNrorrt1ioN
Many ol thc smallacrcagc larmcrs in thc hill arcas ol Ncpal havc
pcrlcct wcathcr and soil conditions to grow oscason vcgctablcs, but
thcy havcnt bclicvcd it possiblc to grow vcgctablcs, wcrcnt lamiliar
with intcnsivc horticulturc, and didnt know about or havc acccss to
lowcost drip irrigation, which was thc only way thcy could ccctivcly
harncss thc limitcd amounts ol watcr lrom small strcams that thcy had
availablc in wintcr or to harncss thc surplus availablc in villagc pipcd
drinkingwatcr systcms. Thcy lackcd inlormation about priccs and
dcmand in thc markcts in Pokhara and thc Kathmandu vallcy, whcrc
thcy could scll thcir crops.
roor tcccss 1o crcbi1
Most dollaraday oncacrc larmcrs lack acccss to thc crcdit thcy nccd
in ordcr to buy aordablc irrigation tools and agricultural inputs. Micro
crcdit organizations arc likcly to opcn an occ in morc dcnscly popu
latcd arcas such as pcriurban ncighborhoods, whcrc it is casicr to
achicvc thc loan dcnsity and highcr loan valucs consistcnt with organi
zational cconomic sustainability. Thcy arc much lcss likcly to locatc in
a rcmotc rural arca whcrc thc customcrs lor thcir scrviccs arc widcly
dispcrscd and morc likcly to nccd a loan lor twcntyvc dollars than
lor onc hundrcd twcntyvc dollars. Small cntcrpriscs in thc rural
privatcscctor supply chain, such as workshops making irrigation cquip
mcnt or postharvcst proccssing cntcrpriscs, oltcn also havc a dicult
timc gaining acccss to crcdit.
Thcsc arc somc ol thc morc obvious rcasons that markcts in dcvcl
oping countrics arc inccicnt. 8ut thcrc is a grcat dcal morc to lcarn
about thcsc markcts and what kccps thcm lrom bcing ccctivc. !t will
takc a scrics ol cldbascd rcscarch studics ol thc urban and rural arcas
whcrc poor pcoplc arc buycrs and scllcrs to lcarn why thcsc markcts
opcratc so poorly.
OuL o PovcrLy
CrcaLing Ncw MarkcLs ThaL Scrvc Poor CusLomcrs
Thc solution is to crcatc ncw markcts that scrvc poor customcrs. Hun
drcds ol markcts, comparablc in sizc and impact to thc mass markct
lor motorcars and computcrs, arc waiting to bc discovcrcd. This will
rcquirc an army ol cntrcprcncurs, ranging lrom thc owncrs ol tiny
lamilybascd grassroots cntcrpriscs to visionary Cs ol multinational
organizations who arc willing to makc radical changcs in thc dcsign
and dclivcry ol thcir products and scrviccs in ordcr to takc advantagc
ol massivc virgin opportunitics lor scrving thcsc ncglcctcd populations
that makc up c pcrccnt ol thc worlds customcrs.
Pcoplc who livc in slums carn thcir living by nding lowpaying
jobs in a staggcring array ol slum cntcrpriscs, lrom garmcnt swcat
shops to pottcry shops, to lcathcr tanncrics, to lactorics making suturcs
lor cxport, to kitchcns producing swccts lor vcstar hotcls. Thc onc
thing sharcd by all thcsc cntcrpriscs is that thc wagcs slum dwcllcrs
carn by working in thcm arc cxtrcmcly low. !l smallplot larmcrs can
takc advantagc ol thcir lowcost labor to grow laborintcnsivc, high
valuc cash crops lor thc upscalc markct, why cant slum dwcllcrs bc
comc thc bcncciarics ol outsourcing opportunitics: Vhy cant thcy
takc advantagc ol thcir low labor ratcs to producc highvaluc, high
margin, handmadc goods that scll lor a much highcr pricc than what
thcsc workcrs now makc:
!nstcad ol producing chcap Tshirts and saris lor thc low cnd ol
thc markct, why cant cxisting slum garmcntmaking cntcrpriscs takc
advantagc ol thc !ntcrnct and good managcmcnt practiccs to producc
highquality madctomcasurc suits, sports jackcts, drcsscs, and blouscs
lor aucnt customcrs: Vhy cant thc pottcrs ol haravi producc and
scll highvaluc ccramics instcad ol chcap watcr pots and owcrpots
that lacc an onslaught ol compctition lrom lactorymadc plastics:
Vhy cant pharmaccutical multinationals start to manulacturc and
massmarkct lowcrpriccd vcrsions ol thcir most succcsslul brands in
countrics likc !ndia, and makc a hcalthy prot doing so:
Somc ol this is alrcady bcginning to happcn. Shops that uscd to makc
lowvaluc woodcn lurniturc in haravi arc now carving clcgant woodcn
doors lor Mumbais wcalthy homcs. Most ol thc smclly rststagc
tanning tanks lor raw hidcs in haravi havc rclocatcd, but now

lcathcr workshops thcrc arc producing lashion purscs lor thc shops
ol Paris.
Thcrc is a parallcl proccss happcning lor many dollaraday pcoplc
in rural arcas.
CrcaLing Ncw MarkcLs or Dollar-a-Day
Small-Acrcagc Farmcrs
As with thcir brothcrs in urban slums, thc path to ncw wcalth lor
smallacrcagc larmcrs in dcvcloping countrics lics in growing and scll
ing highvaluc, laborintcnsivc products, such as oscason lruits and
vcgctablcs, to customcrs who can aord to buy thcm. 8ut doing this
rcquircs thc crcation ol ncw markcts capablc ol bringing thcm thc in
puts thcy nccd to grow thcir crops, as wcll as ncw valuc chains capablc
ol bringing thcir goods to markct at rcasonablc priccs.
CrcaLing PrivaLc-SccLor Supply Chains ThaL Scrvc
Small-Acrcagc Farmcrs
Vhcn wc rst startcd promoting trcadlc pumps in 8angladcsh twcnty
thrcc ycars ago, dcvclopmcnt cxpcrts told us that trcadlc pumps could
ncvcr makc a signicant impact, bccausc thcy could cach irrigatc only
hall an acrc ol land. ncandahall million trcadlc pumps latcr, thcsc
hallacrc pumps wcrc irrigating scvcn hundrcd and lty thousand
acrcs at a lraction ol thc cost ol a convcntional damandcanal systcm
to accomplish thc samc thing. Thcrc is vast untappcd potcntial in
markcting to millions ol oncacrc larmcrs. Thc cnginc to makc this
happcn is thc activation ol privatcscctor supply chains.
!n thc casc ol trcadlc pumps, wc crcatcd a privatcscctor supply chain
by cncrgizing scvcntyvc smallscalc manulacturcrs, two thousand or
morc villagc dcalcrs, and thrcc thousand wclldrillcrs, all carning a liv
ing by making, sclling, and installing trcadlc pumps at an unsubsidizcd
lair markct pricc ol twcntyvc dollars. 8clow arc thc cight practical
stcps wc took to makc this happcn, stcps that wcrc dcrivcd lrom an
6
OuL o PovcrLy
activc lcarning proccss about how cxisting rural markcts workcd in
8angladcsh.
rcrovc sussibics
vcr a pcriod ol two ycars, wc pcrsuadcd dcvclopmcnt organizations
promoting manual irrigation pumps in 8angladcsh to rcmovc most ol
thc subsidics thcy wcrc providing to hclp smallplot larmcrs buy and
install trcadlc pumps.
iowcr 1nc cos1
8y providing P\C pipc in placc ol galvanizcd iron pipc lor tubc wclls,
and giving smallplot larmcrs thc choicc ol buying trcadlc pumps at
thrcc dicrcnt quality standards, starting with a lowcost pump with a
twoycar lilc span that cndcd up taking ovcr pcrccnt ol thc markct,
wc gavc smallplot larmcrs tradco choiccs in aordability.
rccrui1 srtii-sctic rtNurtc1urcrs
8y ocring assistancc in markcting and mccting quality standards, wc
rccruitcd lour smallvolumc workshop cntrcprcncurs who cach invcstcd
vc hundrcd to two thousand dollars (US) to gct into thc trcadlcpump
A manulacturcr ol trcadlc pumps
,
production busincss. As markctplacc dcmand lor trcadlc pumps in
crcascd, scvcntyvc smallscalc manulacturcrs cntcrcd thc markct,
most ol thcm with no dircct links to !.
rccrui1 viiitcc bcticrs
Vc rccruitcd villagc dcalcrs who wcrc alrcady sclling itcms such as
plastic pipc or tools to villagcrs and who wcrc willing and ablc to invcst
in an invcntory ol tcn trcadlc pumps. Vhcn thcsc dcalcrs wcrc ablc to
scll twcntyvc trcadlc pumps a ycar with a margin ol .a pcrccnt, thcy
madc cnough moncy to sustain thcmsclvcs. As dcmand incrcascd,
morc than two thousand villagc dcalcrs cntcrcd thc trcadlcpump
markctplacc.
1rtiN wcii-briiicrs
Vc ran a thrccday coursc, ocring a diploma, that traincd thrcc thou
sand villagc wclldrillcrs to drill wclls and install trcadlc pumps with
out lcaks and bccomc promotcrs lor trcadlc pumps in thcir villagcs.
orcN tcccss 1o ricrocrcbi1
Vc lormcd a partncrship with Gramccn 8ank, 8rac, Proshika, and
othcr 8angladcshi organizations that madc crcdit availablc lor group
A villagc dcalcr in
8angladcsh
8
OuL o PovcrLy
mcmbcrs intcrcstcd in buying trcadlc pumps. Gramccn 8ank alonc
providcd crcdit that cnablcd twcntyvc thousand ol its mcmbcrs to
purchasc trcadlc pumps lrom Gramccn dcalcrs. Still, most ol thc cus
tomcrs lor trcadlc pumps lackcd acccss to microcrcdit.
irricrcN1 rtrxc1iNc tNb rroro1ioN iNi1it1ivcs
To bring manulacturcrs, dcalcrs, and wclldrillcrs to thc volumc
thrcsholds nccdcd lor thc product to bccomc protablc, wc institutcd
markcting and promotion campaigns that includcd:
.. Calcndars, lcacts, and postcrs.
a. Troubadours. Vc hircd travcling lourmcmbcr bands that com
poscd a song about thc trcadlc pump and pcrlormcd at larmcrs
markcts and lairs, with lcacts dirccting potcntial customcrs
to dcalcrs.
. rama. Vc hircd a troupc ol travcling actors who gavc pcr
lormanccs in opcnair scttings ol a play spccically writtcn to
promotc trcadlc pumps.
At a villagc markct in 8angladcsh, troubadours sing a song about trcadlc pumps.

. A lulllcngth lcaturc movic. Vc produccd a ninctyminutc lca
turc movic, using top 8angladcshi malc and lcmalc lcads and a
popular dircctor. Thc trcadlc pump playcd a ccntral rolc in thc
plot. Using a gcncrator and a scrccn, thc movic playcd to a rural
audicncc ol a million pcoplc a ycar.
cs1tsiisn s1rt1ccictiiv ritccb bcroNs1rt1ioN rio1s
Vc cstablishcd dcmonstration plots in visiblc locations whcrc, using
trcadlc pumps, rcal larmcrs madc moncy lrom crops, plots whcrc dcal
crs could bring potcntial customcrs to intcrvicw succcsslul larmcrs.
All thcsc stcps wcrc takcn by a tcam ol 8angladcshi sta whosc
markctcrcation activitics cost an additional cight dollars lor cach
twcntyvcdollar trcadlc pump sold. 8ccausc ol thc abscncc ol intcl
lcctualpropcrty protcction, this markcting cost could not bc addcd to
thc markct pricc but was covcrcd instcad by grants lrom thc Canadian
and Swiss govcrnmcnts. Thcsc grants providcd a markctcrcation sub
sidy instcad ol subsidizing thc cost ol thc individual trcadlc pump to
larmcrpurchascrs.
Thc samc approach works cqually wcll to crcatc privatcscctor
supply chains dclivcring sccds, lcrtilizcr, pcstmanagcmcnt tools, and
othcr inputs to small larms.
Thc plot ol this lull
lcngth lcaturc movic
shown in 8angladcsh
includcs a trcadlc
pump systcm.
o
OuL o PovcrLy
CrcaLing Ncw MarkcLs or Lhc Crops ThaL
Onc-Acrc Farmcrs Crow
Altcr succcsslully growing cnough whcat, ricc, or corn to lccd thcm
sclvcs lor a ycar, most savvy dollaraday larm lamilics arc opcn to
turning thcir attcntion to producing highvaluc, oscason cash crops
lor thc markct. 8ut which ol thcsc crops should thcy grow:
Dcciding WhaL Crops Lo Crow
Sincc it is impossiblc to prcdict thc luturc markct valuc ol any crop,
thc bcst way to cut risk and makc moncy consistcntly is to grow lour
or vc dicrcnt highvaluc crops likcly to command consistcntly good
priccs in thc markct. Thc bcst option is to apply thc vcnturc capital
approachil you plant vc cash crops, you might lccd onc to thc pigs,
brcak cvcn or bcttcr on thrcc, and makc a big prot on thc lth.
Vc usc thrcc practical stcps to idcntily thc lour or vc highvaluc
crops wc rccommcnd in cach agroclimatic zonc, a gcographic arca with
similar climatc and markct conditions with populations lrom a lcw
hundrcd thousand to c million.
Intcrvicw fty cxcmplary farmcrs. Ask thcm what thcy madc thc
most moncy on last ycar. This quickly idcntics ltccn or morc
potcntial crops in cach arca.
Do a quick analysis of likcly futurc markct dcmand. !ntcrvicw cx
pcricnccd markct tradcrs making a living lrom cach ol thc crops.
This wccds out thc crops with shallow or widcly uctuating mar
kct dcmand, and narrows down thc list to thc lour or vc likcly to
havc sustainablc luturc markct dcmand.
Intcrvicw rcgional and govcrnmcnt agriculturc cxpcrts and data
banks. !dcntily onc or two ncw highvaluc cash crops that can bc
addcd to thc list.
!n Maharastra, !ndia, lor cxamplc, pomcgranatc is onc ol thc crops
! rccommcnds, bccausc it grows wcll thcrc and has largc unmct mar
kct dcmand in clhi markcts, as wcll as signicant cxport dcmand in

:
OuL o PovcrLy
thc Middlc ast. 8aby bananas, cggplant, swcct limcs, and oscason
vcgctablcs arc also rccommcndcd crops in Maharastra. l coursc,
smallplot larmcrs thcmsclvcs makc thc nal dccision about what to
grow. Sincc thc optimal crop pattcrn changcs cach ycar, thc important
thing lor larmcrs is to lcarn how to sclcct thc bcst highvaluc crop pat
tcrn thcmsclvcs, which rcquircs that thcy bccomc committcd studcnts
ol trcnds in markct dcmand as wcll as growing conditions.
DismanLling Lhc TransporL Barricr
Zambia providcs a Kcystonc Kops cxamplc ol how to undcrcut short
haul privatcscctor transport cntcrpriscs. Scvcral ycars ago, thc govcrn
mcnt implcmcntcd a lrcc transport systcm that promptly put small
rural transport cntcrpriscs out ol busincss. This initiativc collapscd
bccausc thc lunding ran out, and an cpidcmic ol ridgc discasc ol cattlc
put thousands ol larmcrowncd bullock carts out ol action. Vhcn !
visitcd in acc, oncacrc larmcrs ! intcrvicwcd wcrc paying a third ol
what thcy got lor thcir vcgctablcs just to transport thcm a lcw kilomc
tcrs to thc ncarcst road, whcrc thcy could contract with a truckcr to
carry thcm to a city markct.
Thc answcr lor many largc dcvclopmcnt donors is to build morc
roads. 8ut you can wait a vcry long timc in many placcs bclorc a road
is built to rcach your rcmotc villagc. l coursc, thcrc arc much lcss
cxpcnsivc options that can bc implcmcntcd whilc a villagc waits lor a
road to bc built. Chincsc rototillcrs pulling trailcrs with thousandkilo
loads up and down hills in Kathmandu can opcratc on vcry rough
tcrrain. onkcy cart cntrcprcncurs makc good moncy hauling all kinds
ol loads in Somalia and Tanzania. Thousands ol rickshaw vans, cach
pulling a platlorm trailcr instcad ol a passcngcr scat, ply thcir tradc all
ovcr 8angladcsh. !t would bc rclativcly incxpcnsivc to implcmcnt a
projcct in rural Zambia sctting up vc cntrcprcncurs with motorcyclc
trailcrs, vc with Chincsc rototillcr trailcrs, vc with donkcy carts, and
vc with rickshaw vans, scc which oncs bccomc protablc, and thcn
hclp thcm sprcad. Yct ! havc ncvcr bccn ablc to nd a dcvclopmcnt
donor willing to support this.

Making MounLains OuL o Molchills
For a supcrmarkct supplicr in Alrica, it is much casicr to makc onc
stop at a thousandacrc larm to pick up vcgctablcs and to hold onc
larmcr accountablc lor mccting quality standards than it is to makc a
thousand stops at oncacrc larms. Unlcss oncacrc larmcrs comc up
with an ccctivc group collcction and qualitycontrol stratcgy, thcy
losc out to largclarm compctitors.
Thc owncr ol a thousandacrc privatc cocc plantation in Zambia,
whosc coccproccssing machincry was undcrutilizcd, contractcd with
lortyvc twoacrc larmcrs to proccss and markct thcir cocc, improv
ing both his incomc and thcirs. !l thcy havc busincsssavvy managcrs,
larmcr coops oltcn can carry out thc samc lunctions.
Adding Valuc Closc Lo Lhc Farm
Sincc thc bcginning ol timc, larmcrs havc complaincd thcy dont gct
paid cnough. Look, thcy say. !t took mc lour months to grow this
plastic bag lull ol tomatocs, and ! sold it ycstcrday lor lty ccnts. To
day ! scc that samc bag ol tomatocs lor salc in thc supcrmarkct lor two
dollars. How comc ! gct lty ccnts lor lour months work, and thc supcr
markct gcts a dollar lty in onc day:
That larmcr can capturc somc ol that dollar lty il hc can do a littlc
valucaddcd proccssing, or il hc can lcaplrog ovcr onc or two middlcmcn.
Somctimcs small dcccntralizcd larmlcvcl proccssing can bc morc
ccicnt than thc largc citybascd proccssing plants, in spitc ol thc dogma
ol thc cconomy ol scalc put lorth by many cconomists. Ccntral planncrs
in thc Sovict Union rcalizcd that thc construction costs lor grain silos
pcr kilo ol storcd grain drop as silos gct biggcr, so thcy built hugc silos.
Thcy lorgot that during thc timc ol thc whcat harvcst, it raincd so much
that most roads wcrc impassablc, and lcwcr largc silos mcant longcr
transport hauls. Thc outcomc ol building hugc silos was that hugc pilcs
ol grain wcrc lclt lying in thc clds to rot in thc rain. !n thc samc way,
small addcdvaluc villagcbascd proccssing plants arc oltcn morc cost
ccctivc than largc citybascd plants, lcavc morc moncy in thc hands
ol thc poor larmcrs who grow thc crops to bc proccsscd, providc ncw
jobs lor poor pcoplc in thc villagc, and crcatc positivc multiplicr cccts
lrom moncy that circulatcs through thc villagc cconomy.
Hall ol thc 8razil nuts gathcrcd lrom standing rain lorcsts by rubbcr
tappcrs in 8razil spoil during thc moist twowcck bargc ridc down to
largc proccssing plants in 8clcm at thc mouth ol thc Amazon Rivcr. !n
partncrship with thc rubbcr tappcrs coop, ! dcsigncd a way to dry,
shcll, and packagc 8razil nuts at thc rain lorcst gathcring point. 8y
rcmoving thc shclls, thc dccrcascd spoilagc and , pcrccnt dccrcasc in
transport wcight morc than madc up lor thc cconomics ol scalc ol thc
largcr city plants. Partncring with Cultural Survival, a 8oston organi
zation ol anthropologists who brokcrcd thc salc ol thc nuts proccsscd
in thc villagc to 8cn and Jcrrys in 8oston, providcd thc rubbcr tappcrs
with a bcttcr pricc. Proccssing at thc villagc providcd ncw cmploymcnt
opportunitics lor thc lamilics ol rubbcr tappcrs, incrcascd thc incomc
rubbcr tappcrs rcccivcd lrom gathcring nuts, and hclpcd prcscrvc thc
rain lorcst bccausc it cmpowcrcd thc rubbcr tappcrs who wcrc thc
most ccctivc protagonists lor kccping thc rain lorcst standing.
Thcrc arc hundrcds ol opportunitics lor adding valuc at thc villagc
lcvcl. Farmcrs in Zambia grow rcd paprika, dry it, and scll it to middlc
mcn who truck it and scll it to largc plants in South Alrica, whcrc
csscntial oils containing rcd vcgctablc dycs arc cxtractcd and sold lor
prcmium priccs in uropc. From thc lrankinccnsc and myrrh ol bibli
cal timcs to lavcndcr and lcmongrass, largc citybascd plants cxtract
csscntial oils lrom crops that can bc grown on small larms and sold at
hugc markups as ingrcdicnts lor pcrlumcs and cosmctics, or in hall
ouncc vials going lor six dollars and up to aromathcrapy practitioncrs.
Thc ccnturicsold way to cxtract csscntial oils is stcam distillation, thc
samc proccss bootlcggcrs havc always uscd to makc moonshinc. !t is
cntircly lcasiblc to dcsign small, ccicnt, villagcbascd stcam distillation
units that scll lor ltccn hundrcd dollars, or vc thousand dollars lor
biggcr oncs. This would addrcss both thc aggrcgation and quality
control problcms oltcn laccd by smalllarm produccrs, crcatc a nctwork
ol ncw villagcbascd cntcrpriscs, and put morc moncy in thc pockcts
ol smalllarm grassroots cntcrpriscs. !l a nctwork ol small, villagcbascd
stcam distillation units lor paprika sprang up in Zambia, it would changc
all thc cconomics ol thc currcnt paprika industry in that country.
!t is possiblc and practical lor cvcry poor villagc in a dcvcloping
country to makc a list ol thc crops produccd in thc arca that havc thc
OuL o PovcrLy
grcatcst cconomic valuc, and thc proccssing applicd to thcm that adds
most valuc. For cach ol thcsc crops, a rapid initial busincss plan will
idcntily promising nichc opportunitics whcrc valucaddcd proccssing
in thc villagc can bc compctitivc in thc markctplacc, much as was thc
villagc proccssing ol 8razil nuts. 8ut this rcquircs what most pcoplc
cxpcricncc as a countcrintuitivc dcsign proccss that puts aordability,
small sizc, and adding valuc at thc villagc lcvcl rst, and that looks lor
markctplacc opportunitics to bc compctitivc with largc, ccntralizcd
city plants.
An incrcasing numbcr ol dcvclopmcnt organizations arc dcmon
strating that crcating ncw markcts to incrcasc thc incomc ol thc rural
poor is both practical and lcasiblc.
TcchnoScrvc CrcaLcs Ncw MarkcLs or Pincapplc
Crowcrs in Chana
TcchnoScrvc, a Connccticutbascd intcrnational dcvclopmcnt organi
zation that crcatcs ncw markcts to allcviatc povcrty, implcmcntcd a
program to improvc pincapplc larmcrs quality and production volumc
in Ghana,' whcrc smallacrcagc larmcrs togcthcr producc 6a,acc tons
ol pincapplc a ycar. This initiativc conncctcd thc many smallplot larmcrs
ol organic pincapplcs to local, rcgional, and intcrnational markcts to
incrcasc thc incomcs ol thc larmcrs and ol cntirc communitics.
Rcsponding to a rcqucst in acca by Athcna Foods a company in
Ghana that proccsscs pincapplcs, citrus juiccs, and conccntratcs lor
local and cxport markcts TcchnoScrvc quickly linkcd Athcna to ..
smallscalc organic pincapplc and citrus growcrs, and traincd thcm to
mcct intcrnational quality standards and to producc thc documcntation
nccdcd to gct organic ccrtication. 8y thc cnd ol thc rst ycar, Athcna
had purchascd thrcc hundrcd scvcnty mctric tons ol orangcs and
pincapplcs lrom thcsc larmcrs, and sold s,ccc worth ol organic
juicc, carning scc lor cach ol thc larmcrs. !n acc TcchnoScrvc
hclpcd Athcna obtain a scc,ccc loan to producc and scll organic
juicc in uropc and thc Unitcd Statcs worth s.,c,.,c. This incrcascd
thc incomc ol aa smallscalc larmcrs by an avcragc ol s.,.6a in a
country whcrc avcragc pcr capita incomc is sac.

6
OuL o PovcrLy
Crcating ncw markcts that scrvc poor customcrs incrcascs thc in
comcs ol poor pcoplc by producing and markcting thcir highvaluc,
laborintcnsivc products and scrviccs. And thc ncw markcts havc lurthcr
bcnccial rcsults. Thcy havc translormativc potcntial in such divcrsc
arcas as hcalth, cducation, transport, and housing.
Civc Mc a MarkcL So I Can Scc
According to thc Vorld Hcalth rganization, thcrc arc . billion pcoplc
in thc world who nccd glasscs but dont havc thcm now. ycglasscs lor
ncarsightcdncss or larsightcdncss would corrcct thc vision problcms ol
,c to c pcrccnt ol thcsc pcoplc. For a tailor in a hill villagc in Ncpal
who no longcr can scc to scw, a pair ol aordablc cycglasscs makcs thc
dicrcncc bctwccn carning a living and bccoming a bcggar.
Usually bcginning in thcir lortics, many pcoplc bccomc unablc to
locus thcir vision on ncar objccts, a condition callcd presbyopia. Today
you can go into a drugstorc in cnvcr or Amstcrdam and sclcct an
cightdollar pair ol rcading glasscs that will corrcct your vision problcm.
Vhy not makc a robust vcrsion ol this display stand availablc to thc
. billion or so poor pcoplc in thc world who nccd cycglasscs:
Adaptivc yc Carc, a UKbascd company, uscs thc invcntion ol an
xlord physics prolcssor, Joshua Silvcr, to bring sclladjusting cyc
glasscs to pcoplc who nccd thcm.` Thc constraint hcrc is thc cost
ltccn dollars now, pcrhaps tcn dollars or lcss with volumc, but still
not aordablc to pcoplc who carn lcss than a dollar a day.
Ncw ycs lor thc Nccdy, a USbascd organization, shippcd thrcc
hundrcd ltyvc thousand donatcd uscd cycglasscs in good condition
during accacc6 to mcdical missions and charitablc organizations in
dcvcloping countrics. Thc problcm hcrc is that giving glasscs away is
not a schcmc that can bc scalcd up to rcach morc than a tiny lraction
ol thc . billion pcoplc who nccd thcm.
!n thc last vc ycars, Ncw Yorkbascd Scojo Foundation and its
partncrs havc sold lty thousand rcading glasscs, at priccs lrom thrcc
to vc dollars, in !ndia, 8angladcsh, and l Salvador, and havc rclcrrcd
scvcnty thousand pcoplc to cyccarc prolcssionals through a nctwork
ol six hundrcd vision cntrcprcncurs, twcntysix lranchisc partncrs, and
,
a numbcr ol urban wholcsalcrs distributing to pharmacics and othcr
rctail outlcts. Thcy hopc to scll a million morc in thc ncxt vc ycars.
Graham Macmillan, thc cxccutivc dircctor ol Scojo, tclls mc that a
surprising numbcr ol smallacrcagc larmcrs arc cnthusiastic customcrs
lor aordablc cycglasscs, bccausc without thcsc glasscs thcy cant rcad
thc labcls on sccd packagcs. Somc ol thcm dont know what crop thcy
arc planting until it bcgins to comc up.
Thc combincd corts ol Scojo, Ncw ycs lor thc Nccdy, and
Adaptivc yccarc havc rcachcd lcss than . pcrccnt ol thc . billion poor
pcoplc who nccd cycglasscs. Thc rcst livc with scrious visual problcms,
paying a signicant pricc in lost incomc bccausc thcy cant scc straight.
This is outragcous, bccausc thcrc is such a simplc solution in taking
advantagc ol uncomplicatcd cycglass display stands that alrcady scll
aordablc cycglasscs to millions ol wcalthicr customcrs.
!t would takc vc to tcn million dollars in vcnturc capital to start
an intcrnational company that would buy a million cycglasscs in main
land China at around lty ccnts apiccc, dcsign robust, visually appcal
ing mobilc display stands pushcd by pcoplc or pullcd by bicyclcs or
motor scootcrs in poor arcas, pcrhaps lorming partncrships with major
corporations such as Tata in !ndia, dcvcloping an ccctivc global dis
tribution and markcting stratcgy. Thc companys goal would bc to
rcach salcs ol lty million twodollar cycglasscs within vc ycars, and
makc a hcalthy prot doing it.
ncacrc dollaraday larmcrs and thcir urban brothcrs and sistcrs
arc alrcady hardnoscd, stubborn survivalist cntrcprcncurs rcady to
takc advantagc ol markctplacc opportunitics il thc pricc is right, thc
rcturn is high, and thc risk is low. 8ut thcy nccd privatcscctor supply
chains to lurnish thcm with thc tools, matcrials, and inlormation rc
quircd to crcatc highvaluc products, and privatcscctor valuc chains
that scll what thcy producc at an attractivc prot. As thcir incomcs in
crcasc, thcy bccomc customcrs lor products likc aordablc cycglasscs,
houscs, solar lighting, hcalth carc, and cducation. Ncw markcts that
scrvc poor customcrs will providc opportunitics lor hundrcds ol mil
lions ol dollaraday pcoplc to movc out ol povcrty. 8ut a rcvolution in
dcsign is nccdcd to crcatc thc rangc ol ncw incomcgcncrating tools
that will makc this movc possiblc.
A slum is a beehive of grassroots enterprises.
cntr1cr NiNc
Slums:
Thc Incubator
or Ncw Incomc
Opportunitics
wnvx nv w~s vicn:vvx, uvoucn: v~v~cvu nis viii~cv, so
Samsuddin travclcd lrom Tirukoyoor in Tamil Nadu to his unclcs
homc in 8ombay. Hc cxpcctcd to arrivc at a housc in thc big city,
but lound himscll instcad in thc middlc ol a swamp in a slum callcd
haravi. Likc so many othcrs who migratc lrom thc villagc, hc was
looking lor a job so hc could survivc. Hc lound onc in his unclcs ricc
smuggling busincss. Thcrc was a tax on grain brought into 8ombay
lrom outsidc thc city limits, so cvcry morning, Samsuddin, his unclc
Hassain, and his thrcc cousins travclcd out ol thc city, bought as much
ricc as thcy could carry, at a cost ol onc rupcc and lourtccn annas pcr
pound, and haulcd it through thc swamp to scll at Kalyanwadi lor tcn
rupccs pcr pound.
Thcsc arc hcalthy margins. !l cach ol thc smugglcrs carricd twcnty
vc pounds a day, this littlc cntcrprisc was bringing in thc cquivalcnt
ol twcntyvc dollars a day at thc rupcc cxchangc ratc ol thc .cs, a
signicant amount. His unclc probably didnt pay him much, but lood
and a placc to slccp mcant cvcrything to Samsuddin.
6o
OuL o PovcrLy
Vhcn Hassain movcd back to thcir villagc and his thrcc sons immi
gratcd to Pakistan in ., Samsuddin lound a job at a coal company
that paid him a rupccandahall pcr day. Altcr two ycars hc got a bct
tcr job at a printing prcss that paid him ltysix rupccs a month, doublc
his prcvious salary. Hc marricd and movcd with his wilc into an illcgal
hut with no clcctricity or watcr that thcy sharcd with anothcr lamily.
Thcn hc bought a lcgal room mcasuring tcn lcct by cightccn lcct
lor lour hundrcd scvcntyvc rupccs. nc day hc mct Hamid, a man
who kncw how to makc a popular swcct dcsscrt callcd chiki, hclpcd
him nd spacc to producc it, and agrccd to takc it to shops and scll it.
Hc soon lound hc could carn twcntyvc rupccs a day sclling chiki,
and quit his rcgular job. vcntually Samsuddin and his wilc lcarncd
how to makc chiki thcmsclvcs, and whcn Hamid movcd to Calcutta,
thcy took ovcr thc busincss. Thcy madc chiki all day, wrappcd it in old
ncwspapcrs, and Samsuddin sold it in cincma halls until clcvcn at night.
Thc couplc namcd thcir product A. Chiki, crcativcly borrowing
thc namc lrom a popular brand ol chcwing gum, and thc busincss took
o. Now in two gloomy rooms, twcnty workcrs producc A. Chiki
managcd by onc ol Samsuddins prcvious workcrs, who pays Samsud
din an ongoing royalty. At thc agc ol scvcnty, Samsuddin livcs in Nagri
Apartmcnts, a highrisc in haravi. Hc has a plush living room, two
phoncs, a T\ sct, and curios in a glass cabinct. His two sons arc cdu
catcd and run thcir own busincsscs.
haravi is thc biggcst slum in Asia, covcring about lour hundrcd
lty acrcs. Nobody knows cxactly how many pcoplc livc in haravi
cstimatcs rangc lrom . to million. Thcrc arc many amazing succcss
storics likc Samsuddins in haravi, but most ol thc poor pcoplc who
comc thcrc lrom rural villagcs havc to scramblc to nd jobs and barcly
carn cnough to survivc. Samsuddins story illustratcs thc spirit ol
cntcrprisc that crcatcs thc jobs in slums all ovcr thc world that pcoplc
strcaming in lrom rural villagcs arc sccking.
Krishna 8ahadur Thapa and Samsuddin might havc bccn twins. !l
8ahadurs lathcr had lost his larm whcn 8ahadur was a tccnagcr, 8aha
dur would probably havc had to go to Kathmandu looking lor a way to
survivc on thc strccts. And il Samsuddin hadnt bccn lortunatc cnough
to havc an unclc who could providc both shcltcr and a job, hc would
havc bccn likcly to cnd up living on thc sidcwalk in 8ombay instcad ol
6
Slums: Tc IncubaLor or Ncw Incomc OpporLuniLics
in a hut in thc slum, and likc many pavcmcnt dwcllcrs, hc would havc
staycd thcrc lor a long timc.
Ccnsus takcrs in dcvcloping countrics dont count pavcmcnt dwcllcrs.
SPARC, an NG organizcd by slum dwcllcrs, carricd out thc rst
ccnsus ol pavcmcnt dwcllcrs in Mumbai in .. !n thc 8yculla arca
alonc, this ccnsus cnumcratcd six thousand houscholds, accounting lor
ncarly twcntyscvcn thousand pavcmcnt dwcllcrs.
Zcnia Tata, a collcaguc ol minc at !, grcw up in 8ombay, now
known as Mumbai, whcrc hcr parcnts havc livcd in a thirdstory at
lor thirty ycars. Shc told mc thc story ol a pavcmcntdwclling lamily
shc and hcr parcnts havc known lor twcntyvc ycars, bccausc thcy
livc on thc sidcwalk bclow hcr parcnts balcony. Thc mothcr and lathcr
in this sidcwalk lamily arc both lamc, cripplcd by polio, and thcy livc
with thcir hcalthy vcycarold son on a spot originally scttlcd by thc
husbands parcnts. Thc husband makcs a living darting in and out ol
thc hcavy trac ol thc strcct ncxt to thc sidcwalk whcrc thcy livc,
washing car windshiclds lor twcntyvc paisa (about hall a US pcnny).
Hc also occasionally washcs taxis at a taxi stand down thc strcct. His
wilc, who gcts around on two crutchcs, carns moncy stringing and
sclling marigold garlands.
Thc couplc and thcir child livc with no shcltcr. Vhcn it rains hard
in thc monsoon scason, thcy movc to a ncarby park whcrc thcy attach
a tarpaulin to a lcncc and wcight thc sidcs down with rocks. ach
morning, thcy and othcr sidcwalk dwcllcrs lilt a hcavy stccl manholc
covcr abovc a major city watcrdclivcry channcl, and mcmbcrs ol thc
cntirc community ol pavcmcnt dwcllcrs lilt watcr by ropc and buckct
lor an hour or two. Thc parcnts in this lamily go to thc toilct in a
public lavatory in thc park, but thcir vcycarold son squats down in
thc guttcr ncxt to thcir sidcwalk homc and dclccatcs thcrc, with thc
cncouragcmcnt ol his mothcr. At his agc, it may bc too dicult to
train him to usc thc toilct in thc park.
Until now, ! and ! havc locuscd on rural povcrty. 8ut it sccms
to mc that slum dwcllcrs can incrcasc thcir acccss to jobs and incomc
by making and markcting laborintcnsivc, highvaluc products, just
likc thcir smallacrcagclarm brothcrs.
For ccnturics, thc rural poor havc bccn ocking to citics to nd jobs
whcn thcir crops lail in timcs ol ood and drought or, worsc still, whcn
thcy losc thcir larms. Many movc back to thcir homc villagc il jobs
bccomc availablc thcrc. !l millions ol dollaraday larmcrs nd ways to
incrcasc thcir incomc as 8ahadur and his lamily did, currcnt projcctions
that a billion morc pcoplc will livc in thc worlds citics by thc ycar acc
will havc to bc radically altcrcd.
Slums and poor rural arcas havc onc morc important thing in com
mon. Slums havc cvcn morc grassroots cntcrpriscs ol all shapcs and
sizcs whcrc poor pcoplc can nd work and incomc than do most poor
rural arcas. This array ol largc and small cntcrpriscs providcs thc jobs
that attract poor pcoplc who can no longcr survivc in thcir villagcs.
Many ol thcm opcratc on thc cdgc ol lcgality or bcyond thc cdgc.
uring !ndias prohibition pcriod, haravi was homc to largc,
powcrlul, lucrativc bootlcgging opcrations, complctc with ccts ol dc
livcry vchiclcs opcrating undcr thc hclplul supcrvision ol policc part
ncrs. !dcntily a popular brand ol luxury soap in !ndia, and you will
nd a copycat vcrsion lor salc in haravi at onclth thc pricc. Multi
national organizations work through jobbcrs to havc thcir cmpty plastic
barrcls prcviously llcd with anything lrom cooking oil to corrosivc
chcmicals inspcctcd, clcancd, and rcturncd lor rcusc. Thc lact that
somc ol thcm containcd chcmicals that could causc scrious hcalth
problcms lor slumdwcllcrs clcaning thcm sccms unimportant, il
workcrs objcct, thcy arc casily rcplaccd. Likc illcgal immigrant markct
placcs lor migrant workcrs in thc Unitcd Statcs, undcrthctablc cn
tcrpriscs in haravi play a vital rolc in thc !ndian cconomy.
vcry squarc inch ol haravi is uscd lor somc productivc activity.
A rough calculation madc by rcsidcnts cstimatcs thc moncy turncd
ovcr in haravi cvcry day to bc about c million rupccs (about a mil
lion dollars). A .6 survcy carricd out by thc National Slum wcllcrs
Fcdcration idcnticd .,c manulacturing opcrations, and many
smallcr opcrations in homcs and lolts wcrcnt countcd.
Thc survcy rcportcd a smallscalc manulacturcrs, cmploying vc
to tcn pcoplc, and big industrics, including an intcrnational com
pany making suturcs lor Vcstcrn markcts and a largc lactory making
copics ol a popular brand ol toothpastc. Also idcnticd wcrc .a busi
ncsscs making lood products, somc ol which wcrc scrvcd in Mumbais
vcstar rcstaurants, ... rcstaurants, ,aa scrapandrccycling units,
cntcrpriscs making products lor cxport, and a bakcrics. Thc largc
6:
OuL o PovcrLy
tanncrics with thcir loulsmclling proccsscs havc lor thc most part
movcd out ol haravi, but pcoplc who makc cxport lcathcr goods
rcmain and opium dcns still opcratc. Grassroots cntcrpriscs opcratc in
slums without having to pay much attcntion to childlabor laws or
jobsalcty rcgulations.
Thc grassroots cntcrpriscs in slums around thc world whcrc slum
dwcllcrs carn thcir livings dubbcd inlormal scctor cntcrpriscs by
UN and govcrnmcnt ocials opcratc without liccnscs, pay no taxcs,
and appcar and disappcar likc pus ol smokc, yct thcy ll important
nccds not mct by thc lormal scctor. !n cvcry city in dcvcloping coun
trics, unliccnscd itincrant hawkcrs who livc in squattcrs shacks in thc
slums scll a panoply ol goods and scrviccs: swccts, stcaming mcals, ba
nanas, Tshirts, owcrs, houschold goods, haircuts, trinkcts, and laun
dry scrviccs. Likc migrant laborcrs lrom Mcxico in thc Unitcd Statcs
and bootlcggcrs in timcs ol prohibition, thcsc unliccnscd grassroots
cntcrpriscs oltcn survivc because thcy opcratc bclow thc rcgulatory linc,
not in spitc ol doing so.
Slums not only providc jobs lrom thc inlormal cntcrpriscs that op
cratc within thcm. Thcy also providc lowcost housing closc to mcnial
jobs that may bc availablc in thc city. 8ccausc pcoplc livc so much
closcr togcthcr in slums, it is casicr to collcct products likc homc
stitchcd garmcnts lrom slum rcsidcnts than it is to collcct vcgctablcs
lrom scattcrcd larms.
Thc growth ol slums likc haravi in thc last ltccn ycars has bccn
unprcccdcntcd. !n .c thcrc wcrc ncarly ,. million slum dwcllcrs in
thc world. 8y accc thc slum population had incrcascd to .a million
and it is approximatcly million today. Pcoplc who livc in slums
rcprcscnt pcrccnt ol thc urban population in dcvcloping rcgions.
UNHA8!TAT cstimatcs that il currcnt trcnds continuc, thc slum
population will rcach .. billion by acac. Not all slum dwcllcrs and
pavcmcnt dwcllcrs carn lcss than a dollar a day, but probably closc to
bctwccn cc and cc million pcoplc living in slums and on pavcmcnts
do survivc on lcss than a dollar a day.
l Nairobis a. million rcsidcnts, .. million livc in morc than onc
hundrcd slum and squattcr communitics scattcrcd through thc city
and on its lringcs, occupying pcrccnt ol thc citys rcsidcntial land.
SubSaharan Alrica hosts thc largcst proportion ol thc urban population
6
6
OuL o PovcrLy
living in slums (,.. pcrccnt), .66 million out ol a total urban popula
tion ol a. million arc classicd as slum dwcllcrs.'
Thc inlormal scctor plays an important rolc not only in citics but
also in thc national cconomics ol dcvcloping countrics. !n Alrica thc
inlormal scctor accounts lor about ac pcrccnt ol GP and cmploys
about 6c pcrccnt ol thc urban labor lorcc. !n thc Philippincs, it ac
counts lor 6 pcrccnt ol cmploymcnt in urban arcas, and in haka,
8angladcsh, 6 pcrccnt. Thc inlormal scctor providcs bctwccn 6c and
6, pcrccnt ol all cmploymcnt in Guatcmala, l Salvador, Honduras,
Costa Rica, and Nicaragua.
OpporLuniLics or Slum Dwcllcrs and PavcmcnL
Dwcllcrs Lo Movc OuL o PovcrLy
Thc UNs Millcnnium Projcct Task Forcc on !mproving thc Livcs ol
Slum wcllcrs put rst priority on providing improvcd housing, hcalth
carc, cducation, transport, and acccss to drinking watcr and toilcts. Thc
task lorcc cstimatcs that thcsc improvcmcnts in hcalth, cducation,
housing, and inlrastructurc lor .cc million slum dwcllcrs will cost
closc to ,c billion dollars ovcr ltccn ycars.` Vhilc thc task lorcc
rcport rccognizcs thc importancc ol jobs and thc inlormal cntcrpriscs
and homcbascd busincsscs that providc thcm, it has littlc to ocr in
thc lorm ol ncw action plans to incrcasc and improvc thc pay lcvcl ol
thc jobs thcy providc.
All thcsc things arc important, but il thcrc isnt cnough moncy to
addrcss all ol thcm at thc samc timc, what is a rcasonablc approach to
sctting prioritics: !l thc slum dwcllcrs wcrc in chargc ol improving
slum conditions, what prioritics would thcy sct:
Thc lact that poor pcoplc ock to slums and continuc living in
thcm makcs thc clcarcst statcmcnt ol what thcir prioritics arc. Vhy do
slum dwcllcrs tolcratc sharing onc lthy toilct with cight hundrcd
pcoplc, walking lor hall an hour to gct a containcr lull ol drinking
watcr, and living in ovcrcrowdcd primitivc huts: All things considcrcd,
il thcy wcrc totally dcstitutc with no sourcc ol incomc, thcy would
probably havc a bcttcr chancc ol surviving in thcir homc villagcs than
in thc slums.
6
Thc answcr is simplc. Thcy livc in slums and on sidcwalks without
a rool il thcy must bccausc thcy nccd jobs and incomc to survivc, and
thcy havc madc a rational dccision that thcy arc morc likcly to nd
thcm in thc city than in thcir villagcs. Thcrc arc thousands ol inlormal
grassroots cntcrpriscs that thrivc in slums and nccd workcrs. vcn il
thc pay is miscrablc, its bcttcr than carning nothing, allowing you to
survivc and kccping opcn thc chancc that your lilc will changc just as
Samsuddins did.
This lact that jobs and incomc arc thc main induccmcnt lor pcoplc
to livc in slums sccms to havc madc littlc impact on thc actions ol
most ol thc organizations dcvotcd to improving thc livcs ol slum
dwcllcrs. Thcy scc thc ovcrwhclming nccds in watcr, sanitation, housing,
cducation, and hcalth, and locus thcir corts on providing thc missing
scrviccs. Thc UN Task Forcc on !mproving thc Livcs ol Slum wcllcrs
locuscs on initiativcs to allcviatc thc tcrriblc conditions ol housing, in
sccurity ol tcnurc, watcr, and sanitation in slums, and to providc criti
cal scrviccs such as hcalth and cducation, but says littlc or nothing
about how to improvc thc busincss modcls, markcting mcthods, and
bottomlinc protability that arc critical to thc survival and wcllbcing
ol slum dwcllcrs. 8ut il morc jobs and highcr wagcs arc so important
to thc slum dwcllcrs thcmsclvcs, docsnt it makc scnsc to put priority
on incrcasing thc jobs availablc to thcm and incrcasing thc incomc
thcy can carn by improving thc protability ol thcir small busincsscs:
Thc dircction in which all this lcads is not startling. Thc most im
portant priority lor slum dwcllcrs is to incrcasc thc incomc thcy carn
lrom opcrating or working in slumbascd grassroots cntcrpriscs. Thc
most dircct path to morc jobs and incrcascd incomc lor slum and
pavcmcnt dwcllcrs is to hclp thc grassroots cntcrpriscs whcrc thcy carn
thcir livings to cxpand thc markcts lor thcir products and scrviccs and
thus incrcasc thcir protability.
Thc rst stcp is to idcntily how slum cntcrpriscs can compctc ccc
tivcly in thc global markctplacc. This, too, is no surprisc. Likc thcir small
larmcntcrprisc brothcrs, bccausc thcsc slumdwclling cntrcprcncurs
can takc advantagc ol having acccss to thc lowcst labor ratcs in thc world,
thcy can lcgitimatcly lay claim to thc titlc ol thc mothcr ol outsourcing.
Slum pottcry cntcrpriscs in haravi providc a good cxamplc.
Fortyvcycarold Janjibhai M. Kamalia is an activc mcmbcr ol
66
OuL o PovcrLy
Kumbharwada, a community ol pottcrs in haravi. Hc has livcd thcrc
lor lorty ycars and plans to stay. Hc livcs with his wilc and thrcc chil
drcn in a lolt ovcrlooking his workshop, whilc his brothcr stays with
his lamily on thc ground oor, which also has a storagc spacc lor thc
lamilys pots. Thcir living and work spaccs total lour hundrcd squarc
lcct. Janjibhai gcts up at dawn and makcs pots, and has workcrs who
hclp him rc up thc brick kilns whcrc hc bakcs his pots latcr in thc
day. !n thc latc altcrnoon, hc carrics his pots to customcrs in Mumbai.
Hc makcs and sclls owcrpots and watcr jugs. !smaclbhai and his son
opcratc anothcr small pottcry busincss in haravi. Altcr about lour
hours ol work cvcry morning, thcy rc onc hundrcd largc gardcn pots
and scll thcm at a vcry low pricc to a tradcr.
Twclvc hundrcd lamilics lrom Gujarat livc in Kumbharwada, and
morc than cight hundrcd ol thcm carn thcir living by using traditional
pottcrs whccls to producc ordinary clay watcr jugs and owcrpots and
ring thcir pots in brick kilns that burn cvcrything lrom wood to tircs,
crcating a tcrric stink. Most ol thcsc pottcrs carn lcss than a dollar a
day, although somc ol thc morc talcntcd pottcry cntrcprcncurs carn
lour or vc dollars a day and havc childrcn with collcgc dcgrccs and
good jobs. Could crcating ncw markcts cnd thc povcrty ol Janjibhai
Kamalia and thc pottcrs who arc his ncighbors:
!n thc summcr ol acc6 my wilc and ! cnjoycd looking at thc attrac
tivc displays ol Roman and truscan pots at thc Lcgion ol Honor
Muscum in San Francisco. ! was surpriscd to scc rcplicas ol thcm lor
salc in thc muscum gilt shop at priccs ranging lrom twcntyvc to two
hundrcd dollars.
Vhy couldnt thc pottcrs ol haravi bc traincd to crcatc handmadc
rcplicas ol Roman and truscan pots, and gct thc hclp lrom cxpcricnccd
cntrcprcncurs to cstablish a markcting and distribution nctwork through
muscum gilt shops: Vould it bc possiblc to scll somc ol thcsc hand
somc handmadc rcplicas on thc !ntcrnct, cach with a hand lcttcrcd
story about thc craltsman in a slum who madc it: Vouldnt this cvcn
tually providc a much bcttcr rcturn on thc lowcost labor ol slum
pottcrs than sclling watcr jugs and owcrpots at thc low cnd ol thc
markct, whcrc thcy cncountcr compctition lrom massmanulacturcd
plastic pots:
Could a savvy cntrcprcncur with conncctions to muscums start a
6,
busincss contracting with pottcrs in haravi and othcr slums all ovcr
thc world to makc handcraltcd rcplicas ol muscum picccs: ! talkcd
with Ron Rivcrcc, lrom an organization callcd Pottcrs lor Pcacc, and
hc said hc alrcady knows how thc rcplicas can bc labricatcd and how
to train slum pottcrs to do it.
Thc samc proccss would apply to dcsigning, producing, and mar
kcting a varicty ol othcr highvaluc handcraltcd ccramic products altcr
a carclul analysis ol markct dcmand, using approachcs such as subscc
tor analysis.
That such an approach to pottcry is morc than a pipc drcam has al
rcady bccn dcmonstratcd by Lccia 8orda, who visitcd a slum in Jaipur,
!ndia, in .,, and startcd a proccss training slum pottcrs to makc ncw
dcsigns ol bluc pottcry, a cralt with TurkoPcrsian origins that now
has bccomc a distinctivc Jaipur product linc distributcd by Nccrja !n
tcrnational, thc company Lccia 8orda and hcr partncrs startcd. Vork
ing with Paul Comar, a Frcnch buycr, Lccia has dcvclopcd hundrcds ol
ncw products that scrvc as utility itcms but rctain thc idcntity ol thc
bluc pottcry cralt. Nccrja !ntcrnational cmploys morc than onc hun
drcd lty pottcrs.
l coursc, !m just using thc cxamplc ol thc pottcr communitics
prcscnt in most slums to makc my point, but thcrc arc thousands ol
othcr cxamplcs. !nstcad ol making shirts and saris to scll to thc low
cnd ol thc markct, why couldnt garmcntmaking cntcrpriscs in slums
conncct to an intcrnational cntcrprisc that sclls highquality madcto
mcasurc suits, drcsscs, and shirts to prospcrous customcrs in uropc
and thc Unitcd Statcs and Japan, complctc with thrccdimcnsional
rcalistic imagcs ol how thc garmcnt looks on thc customcr, crcatcd
lrom a photograph rclaycd on thc !ntcrnct: Vhy couldnt this bc donc
lor slummadc products such as lashion lcathcr purscs, bclts and bclt
bucklcs, and custommadc shocs:
This, ol coursc, would rcquirc implcmcnting thc samc basic stcps
rcquircd to makc any cntcrprisc succcsslul, thc samc basic stcps that
millions ol dollaraday larmcrs arc now using to movc out ol povcrty.
.. Crcating privatcscctor supply chains to providc rcasonably
priccd matcrials, tools, dcsigns, and training lor slum cntcrpriscs
producing handmadc rcplicas ol muscum pottcry, or nc silk
scarvcs or purscs lor Paris, or handcarvcd doors, or thc myriad
ol othcr highvaluc, laborintcnsivc products that could bc lab
ricatcd by slum rcsidcnts.
a. Crcating privatcscctor valuc chains that markct thc products
madc by slum rcsidcnts and that cnsurc that quality standards
arc mct.
. Acccss to crcdit.
. Acccss to prospcrous customcrs ablc and willing to purchasc thc
highvaluc products and scrviccs produccd by slum workcrs.
!l haravis pottcrs could triplc thcir incomc ovcr a thrccycar pc
riod with such a stratcgy, thcy would improvc both thcir housing and
thcir acccss to watcr and sanitation. This would not climinatc thc nccd
to improvc thc basic inlrastructurc and thc housing sccurity ol slum
dwcllcrs. 8ut it would makc an important start onc lcd by thc rap
idly incrcasing cconomic powcr ol thc slum dwcllcrs thcmsclvcs.
This is not a pipc drcam, it is alrcady bcginning to happcn. ha
ravis woodcarvcrs, lor instancc, arc now cmploycd making highcnd
carvcd woodcn doors lor thc rich. Rcsidcnts ol Paraisopolis, thc scc
ondlargcst shanty town in Sao Paulo, 8razil, arc changing thcir livcs
by rccycling jcans and patchcs ol cloth lor Rccicla Jcans, a vcnturc that
cmploys thirty womcn. Nadia Rubio 8achi, who startcd Rccicla Jcans,
participatcd in a lashion show in Madrid, and now thc company is cx
porting its lashion products to Lcbanon, Portugal, Spain, and !taly.
ocs this sound lamiliar: cvclopmcnt institutions havc bccn cn
couraging thc cc million pcoplc who carn thcir living lrom grassroots
cntcrpriscs ccntcrcd on oncacrc larms to improvc thcir yiclds ol ricc,
whcat, corn, and othcr subsistcncc crops. Vhilc thcy put high priority
on growing cnough to cat, thcsc oncacrc larm lamilics will ncvcr crc
atc cnough wcalth to movc thcmsclvcs out ol povcrty by sclling thcir
surplus ricc, whcat, and corn, which has rclativcly low valuc in thc
markctplacc. 8ut thcy can carn ncw incomc ol at lcast vc hundrcd
dollars a ycar by growing nonmcchanizcd, highvaluc, oscason crops
such as lruits, vcgctablcs, and hcrbs.
xactly thc samc kind ol proccss is applicablc to improvc thc incomcs
that slum dwcllcrs can carn lrom working in slumbascd cntcrpriscs.
68
OuL o PovcrLy
6
Somc activitics lollowing this proccss arc alrcady going on. To cx
pand rapidly and scalc thcm into a ood ol wcalthcrcating busincss
opportunitics, a ncw movcmcnt is nccdcd to harncss thc cncrgy ol
succcsslul busincss lcadcrs motivatcd to makc a dicrcncc in thc world,
and ol corporations lamiliar with thc dcmands ol highcnd markcts
and thc ways to gain acccss to thcm. Vc nccd nothing lcss than a ncw
gcncration ol succcsslul cntcrpriscs linking thc lowcost labor ol thc
rcsidcnts ol slums to thc highcnd markcts ol thc world whcrc thcy
can scll thcir products and scrviccs at a rcasonablc prot.
This will not curc thc tcrriblc conditions in housing, sanitation, and
watcr with which slum rcsidcnts must dcal cvcry day. 8ut it will givc
thcsc pcoplc ncw cconomic powcr to takc action to translorm thc slum
conditions and to join hands with constructivc movcmcnts initiatcd by
intcrnational busincsscs, donors, govcrnmcnts, and grassroots NGs,
all taking action to improvc thc livcs ol slum dwcllcrs.
Change one person and you can change the world.
,
cntr1cr 1cN
Povcrty and
thc Planct
wnvx xvisnx~ n~n~uuv :n~v~ ~xu nis v~:iiv wvvv ~niv
to carn vc hundrcd dollars a ycar in ncw incomc, and thcn a thousand
dollars a ycar, thcy invcstcd in improvcmcnts in thcir nutrition, hcalth,
housing, cducation, and agriculturcthc vcry things thc lack ol which
many dcvclopmcnt cxpcrts rcgard as thc root causcs ol povcrty. For
cxamplc, although Padam Magar and Sumitra Magar, 8ahadurs two
wivcs, arc still illitcratc, both thcir sons nishcd high school, and thc
lour grandchildrcn in thc lamily will continuc going to school as long
as thcy want to. His lamily has built an cxccllcnt ncw twostory housc,
which cost twcntyonc hundrcd dollars US and includcs a ccmcnt ricc
storagc bin. Thcy havc bought a littlc ovcr hall an acrc ol land, whcrc
thcy arc growing orangcs, havc cxpandcd thcir irrigatcd wintcr vcgctablc
production to onc acrc, and havc invcstcd in cattlc, bualo, goats, and
tilapia ngcrlings.
This is thc typical pattcrn lor most smallacrcagc larmcrs whcn thcy
arc ablc to incrcasc thcir incomc. Thcy invcst in many ol thc things
dcvclopmcnt cxpcrts bclicvc arc important, but thcy do it lollowing
thcir own lamilys prioritics. 8ccausc thcy arc now in a bcttcr position
to pay lor things such as school unilorms and mcdicincs, thcy arc ablc
to makc bcttcr usc ol publicly lundcd scrviccs such as hcalth clinics
and schools. Vith thc incrcascd inucncc that comcs with morc moncy,
thcy arc bcttcr ablc to insist to thc powcrs that bc that thc villagc
school nccds a tcachcr who can rcad and writc, and that a ncarby clinic
nccds to bc stockcd with cnough mcdicincs to kccp it lrom running
out altcr a month or two.
PovcrLy and Lhc PlancL
nding povcrty is probably thc most important rst stcp to rcstorc
naturcs balancc on thc planct. ach pcrson on carth probably has a
dicrcnt list ol thc major challcngcs our planct will lacc ovcr thc ncxt
lty ycars.
If climatc changc triggcrcd by carbon cmissions is at thc top of
your list, considcr thc impact ol population growth on carbon
cmissions and thc impact ol cxtrcmc povcrty on population
growth. ach ol thc billion ncw pcoplc on carth by thc ycar
acc will nccd lood to cat, and cncrgy to run thc tractors and thc
irrigation pumps to producc thc lood and to powcr thc transport
systcm that carrics it to markct. \irtually all ol thcsc billion ncw
pcoplc will bc locatcd in poor, dcvcloping countrics whcrc popu
lation growth ratcs arc highcst, with subSaharan Alrica at thc
top ol thc list.
nc ol thc main rcasons that population growth ratcs arc high
in thc rural arcas ol dcvcloping countrics is that big lamilics havc
survival valuc lor smallacrcagc larmcrs. A oncacrclarm lamily
in 8angladcsh nccds thrcc sons to gct ahcadonc to hclp with
thc larm, onc to gct a good cnough cducation to land a govcrn
mcnt job capablc ol supporting thc lamily lrom small bribcs, and
onc to gct a local job that pays cnough to kccp his brothcr, thc
onc aiming lor a govcrnmcnt job, in school. 8ut to cnd up with
thrcc sons mcans having cight babics, two ol which arc likcly to
dic bclorc thc agc ol vc, lcaving thrcc boys and thrcc girls.
,:
OuL o PovcrLy
!l wc could bring 6cc million dollaraday pcoplc out ol
povcrty by thc ycar acac, global population would probably stabi
lizc at around , billion instcad ol thc billion wc arc projccting
now, and carbon cmissions would drop prccipitously.
If loss of biodivcrsity is at thc top of your list, considcr thc lact
that most ol thc plancts biodivcrsity is conccntratcd in thc
twcntyonc kcy rcgions ol thc world whcrc cnvironmcntalists arc
locusing thcir corts to crcatc naturc prcscrvcs. 8ut thc spccics
cnvironmcntalists arc trying to protcct arc bcing huntcd and
catcn by poor pcoplc who livc around and in thc ncwly crcatcd
naturc prcscrvcs. Providing attractivc incomcgcncrating,
povcrtycnding altcrnativcs to thc nccd ol thcsc pcoplc to hunt
is onc ol thc most ccctivc practical stratcgics lor maintaining
biodivcrsity on thc planct.
If you bclicvc thc global pandcmic of HIV/AIDS, malaria, TB, and
othcr major illncsscs is onc of thc biggcst challcngcs to a viablc
futurc for thc planct, considcr thc cvidcncc that povcrty is thc
singlc grcatcst contributor to bad hcalth. Numcrous studics havc
rcportcd a high corrclation bctwccn povcrty and thc incidcncc
and prcvalcncc ol a rangc ol mcntal and physical illncsscs. x
posurc to lrcqucnt major lilc criscs such as thc dcath ol a lovcd
onc or thc loss ol an important job makcs illncss ratcs climb,
and poor pcoplc cxpcricncc many morc scvcrc lilc criscs than do
pcoplc with morc incomc. Millions ol cxtrcmcly poor pcoplc in
Alrica havc malaria, tubcrculosis, or H!\/A!S and dont havc thc
moncy to gct propcrly diagnoscd or to pay lor appropriatc trcat
mcnt. Thc anguish ! hcard in thc voicc ol an !ndian villagc widowcr
with thrcc young childrcn altcr his wilc dicd lrom pncumonia
whcn hc couldnt aord to buy mcdicinc is, unlortunatcly, not at
all rarc. ! rccognizcd twcntyvc ycars ago that thc most important
contribution ! could makc to improvcd hcalth is to nd practical
ways to cnd povcrty. This was an important lactor lcading mc to
lound !.
If you think thc major challcngc wc facc is to providc cquitablc acccss
to cducation, considcr thc lact that poor pcoplc havc consistcntly
,
much lowcr lcvcls ol cducation than pcoplc who arc wcll o. x
trcmcly poor pcoplc in rural arcas in dcvcloping countrics nccd
thcir childrcn at homc to hclp with thc larm, and lack moncy to
pay lor books, school unilorms, and modcst tuition lccs.
Povcrty is proloundly linkcd to thc major challcngcs laccd by
planct arth ovcr thc ncxt lty ycars, and to thc lorccs dcstabilizing
naturcs balancc.
!t is clcar that public lunds arc nccdcd to addrcss many ol thcsc
problcms. 8ut il wc arc succcsslul in cradicating povcrty, what contri
bution arc poor pcoplc likcly to makc to thc solution ol thc major
challcngcs that lacc thc planct:
Small-Farm ProspcriLy MccLs Clobal Warming,
PopulaLion CrowLh, BiodivcrsiLy, HcalLh, and
FducaLion
Thc ncwlound wcalth ol Krishna 8ahadur Thapas lamily lcavcs a
gcntlc carbon lootprint on thc planct. Thc watcr thcy usc to irrigatc
thcir crops ows by gravity through pipcs to thcir crops. Thcy grow
virtually all thc lood thcy cat, climinating thc cncrgy consumption
rcquircd to transport lood to thcm. Somc ol this cncrgy saving is ncu
tralizcd by thcir incrcascd usc ol chcmical lcrtilizcr, which rcquircs
cncrgy to producc and to transport to thc larm. Thc drip and sprinklcr
irrigation systcms thcy usc to dclivcr watcr to thcir crops makc thc
most ccicnt usc ol thcir limitcd watcr rcsourcc. Thcy carry thcir crops
on thcir backs thc short distancc to thc villagc collcction ccntcr, whcrc
buycrs transport it with rcasonablc ccicncy in small truckloads. Thcy
havc installcd a morc ccicnt cook stovc, and thcy now havc clcctric
lights and a small T\ sct, incrcasing thcir cncrgy consumption slightly.
Thc distancc lrom thc cld to thc tablc, and lrom thcir bualos to thc
markct lor thcir milk, is admirably short.
Vhcn most ol thc lamilics in a vcry poor villagc bccomc morc
prospcrous, thcir collcctivc action and inucncc bcgin to bc lclt in
positivc ways. Vhcn thirty lamilics in a villagc kccp thcir childrcn in
school longcr, pay modcst tuition lccs, and bcgin to pay somc taxcs,
,
OuL o PovcrLy
thcy arc inclincd to push to hirc a bcttcrprcparcd tcachcr, and thc
quality ol cducation lor thcir childrcn will likcly improvc.
Smallholdcr ProspcriLy and Food SccuriLy
Poor lamilics with ncw incomc routincly invcst somc ol it to incrcasc
thcir loodproduction capacity, and thcy buy lood to climinatc thc
onc or twomonth pcriod ol hungcr most ol thcm cxpcricnccd cach
ycar bclorc thcy incrcascd thcir incomc. Thcy also improvc thcir ycar
round dicts. !nstcad ol a lcw morscls ol mcat or sh oncc a month il
thcy arc lucky, thcy rcgularly producc or buy mcat and sh lor thcir
own consumption, augmcntcd by milk lrom a goat or a bualo and
cggs lrom a lcw chickcns. Most such lamilics incrcasc thcir incomc by
growing lruits and vcgctablcs, and thcy always cat thc oncs thcy cant
scll, adding mincrals and vitamins to thcir dict. 8lindncss in thc chil
drcn ol poor lamilics duc to vitamin A dccicncy disappcars whcn thc
lamily starts consuming ycllow or orangc vcgctablcs. !mprovcd nutri
tion strcngthcns immunc systcms and lowcrs illncss ratcs.
WaLcr and SaniLaLion
!n .6 ! livcd in a villagc in Ncpal lor a wcck. Not onc ol thc lamilics
in thc villagc had a latrinc. Thcy did, howcvcr, havc dogs, and whcn you
did your busincss somcwhcrc bchind a bush, onc ol thc dogs camc along
and atc it. Thrcc ol us had a cup ol tca in a tcahousc along a walking
trail in thc Ncpal hills, and thc undiapcrcd twoycarold daughtcr ol
thc woman who owncd it poopcd right ncxt to our tablc. Undauntcd,
hcr mothcr immcdiatcly callcd ovcr thc dog, which dutilully consumcd
it. This sort ol thing is morc thc norm than thc cxccption in poor rural
villagcs. Thc dcvclopmcnt community providcs lrcc latrincs, which
usually quickly rcach a dcplorablc statc bccausc nobody clcans thcm.
Vhcn ! activatcd privatcscctor workshops in \ictnam to ocr
attractivc, aordablc latrincs to rural customcrs and pcoplc startcd
buying thcm at an unsubsidizcd pricc, thc watcr and sanitation cxpcrts
wcrc amazcd. That poor pcoplc might bc willing to pay lor thcir own
latrincs was a radical conccpt in thc dcvclopmcnt cld. A largc numbcr
,
ol dollaraday lamilics arc both willing and ablc, cspccially altcr thcy
incrcasc thcir incomc, to purchasc hand pumps and latrincs at a lair
markct pricc without subsidy.
Most poor pcoplc arc now wcll inlormcd about thc advantagcs ol
having a sourcc ol clcan houschold watcr, and arc prcparcd to invcst in
it il it is availablc at an aordablc pricc. 8ut thc worlds watcr and san
itation cxpcrts havc ncvcr put a high priority on making availablc hand
pumps and clcanwatcr systcms that arc chcap cnough lor poor lamilics
to aord, cvcn whcn thcy incrcasc thcir incomc. !n \ictnam, whcn !
was ablc to cut thc markct pricc ol a scrviccablc UN!CF shallow
watcr hand pump in hall and activatcd thc privatc scctor to dclivcr it,
cighty thousand lamilics installcd aordablc hand pumps, and sincc
many wcrc uscd by thc ncighbors, this opcncd acccss to clcan drinking
watcr to a million rural pcoplc.
rui1iric-usc briNxiNc wt1cr svs1crs
8ahadurs lamily uscd onc watcr sourcc lor both irrigation and housc
hold drinking watcr, a common bchavior. Many lamilics in Ncpals at
Tarai rcgion usc trcadlc pumps both to irrigatc thcir vcgctablcs and to
providc clcan drinking watcr lor thcir homcs. Sixty communitics in
hill arcas ol Ncpal havc now installcd lowcost pipcdwatcr systcms
that carry watcr by gravity through pipcs lrom clcan springs and
strcams to providc both houschold watcr and watcr lor dripirrigatcd
crops. Thc dripirrigatcd cash crops gcncratc cnough incomc to pay
lor thc systcm, and thc modcst lccs paid by cach houschold taking ad
vantagc ol acccss to drinking watcr covcr thc opcration and maintc
nancc costs ol thc systcm, managcd by a watcruscrs committcc. This
opcns up thc possibility that many ncw rural houschold watcr systcms
can bccomc cconomically sustainablc by taking advantagc ol thc
incomc gcncratcd by dripirrigatcd cash crops or othcr productivc
ways thc systcms watcr is put to work.
HcalLh
As soon as thcy rcalizc that drinking bad watcr makcs lamily mcmbcrs
sick with diarrhca, with its potcntially lcthal cccts on inlants and thc
,6
OuL o PovcrLy
loss ol work and incomc, poor lamilics usc thcir ncw incomc to invcst
in a clcan watcr sourcc lor thc houschold. Thcy may alrcady havc in
vcstcd in an aordablc irrigation pump, and il it is locatcd closc cnough
to thc housc, thcy usc it as a sourcc ol clcan houschold watcr in addi
tion to irrigation. !l it docsnt cost too much, thc lamily installs a wcll
and a hand pump, and makcs thc watcr produccd availablc to thcir
ncighbors. !l an aordablc watcr ltcr is availablc and a wcll isnt, thc
lamily buys a ltcr and uscs it. !l thcy havc acccss to aordablc latrincs
that t thcir nccds, thcy invcst in a latrinc. Vhcn a lamily mcmbcr bc
comcs ill, thcy can aord to go to a clinic and buy mcdicincs, and thcy
do so at a much carlicr stagc in thc progrcssion ol thc illncss.
FducaLion
Vhcn 8ahadurs lamily incrcascd thcir incomc, thcir cducation lcvcl
soarcd. 8ahadurs two wivcs rcmain illitcratc, yct both his sons havc
nishcd high school and thcir wivcs havc nishcd high school, and
thcir childrcn will stay in school as long as thcy likc. Most ol thc rural
childrcn in countrics likc Ncpal and Zambia stop going to school altcr
gradc vc bccausc thcir lamilics cant aord thc small amount ol moncy
rcquircd to buy books and school unilorms, and bccausc thcy arc nccdcd
at homc to hclp with thc larmwork. 8ut il hall thc lamilics in a villagc
start to kccp thcir childrcn in school past gradc vc likc 8ahadurs
grandchildrcn, tuition paymcnts at thc villagc school will incrcasc, and
pcrhaps thcy can attract a morc qualicd tcachcr thc tcachcrs in
many schools in poor villagcs arc barcly litcratc.
TransporL
Many poor rural villagcs arc scrvcd with roads that arc barcly passablc,
or no roads at all, constraining acccss to markcts whcrc smallacrcagc
larmcrs can scll what thcy grow. \illagcrs can grow old waiting lor thc
govcrnmcnt to build a road. 8ut thcrc arc othcr aordablc transport
options. Thc onc poor pcoplc usc most is thcir own two lcct. vcry
smallplot larmcr ! havc mct is quitc capablc ol balancing a wickcr
baskct with twcnty kilos ol cggplant on his hcad and carrying it to a
,,
villagc markct. ! havc intcrvicwcd portcrs in Ncpal who, wcaring noth
ing morc than ipops on thcir lcct, carry onc hundrcd kilos on thcir
back lor six days ovcr trails so stccp thcy would qualily as mountain
climbing in Vcstcrn countrics.
!n Somalia, wc hclpcd rclugcc blacksmiths build vc hundrcd don
kcy carts that opcratcd wcll hauling hall a ton ol wood or watcr on
rough dirt tracks. Thcsc carts, outttcd on uscd automotivc bcarings,
wcrc bought by rclugccs on crcdit lor a pricc ol lour hundrcd lty dol
lars US, and promptly startcd gcncrating nct incomc ol two hundrcd
dollars a month by hauling watcr, wood, and rcpackagcd lood. !n
Kathmandu, ,.hp Chincsc dicscl rototillcrs, importcd without duty
as agricultural cquipmcnt, pull trailcrs with oncton loads ol anything
lrom pcoplc to coal up and down thc hilly strccts. !n \ictnam ! lmcd
bamboo lramcs hanging likc paintcrs scaolding lrom both sidcs ol
thc lramcs ol rcinlorccd bicyclcs carrying up to lour hundrcd kilos ol
bricks, with thc owncrs walking alongsidc pushing thc load lorward by
lcaning into a stout bamboo polc attachcd to thc scat post. Thcsc
bamboo bicyclc carricrs hclpcd win thc \ictnam Var by carrying sup
plics along thc Ho Chi Minh trail, and havc trcmcndous potcntial in
rural arcas bccausc thcy can opcratc on singlclc lootpaths. 8ut lor
somc rcason, ! havc ncvcr sccn bamboo bicyclc carricrs uscd outsidc ol
\ictnam. !n 8angladcsh, ! havc sccn trailcrs with woodcn platlorms
pushcd by two or thrcc portcrs transporting largc whitc bulls to bc
sacriccd lor id. Apparcntly, thc two or thrcc kilos thc bull might
losc as a rcsult ol walking arc morc valuablc than what it costs to pay
thrcc portcrs to push him along scatcd rcgally on a trailcr. And thcn
thcrc arc thc motorcyclcs and thc motorcyclc trailcrs that carry vcgcta
blcs and pigs and all kinds ol cargo all ovcr Cambodia. vcn vcry poor
pcoplc can aord thc lcw pcnnics to hirc a rickshaw in 8angladcsh,
and thcy usc rickshaws to haul rclrigcrators and all kinds ol lumpy
goods that arc too awkward or too big to carry on thcir backs.
Pcoplc who survivc on lcss than a dollar a day walk cvcrywhcrc, oc
casionally hirc a rickshaw lor a lumpy load, and takc thc bus to covcr
longcr distanccs whcn, lor cxamplc, thcy travcl to thc city to look lor
work. Vhcn smallacrcagc larmcrs incrcasc thcir incomc, many buy a
uscd bicyclc, and as incomc continucs to risc, thcy invcst in a bullock
and a cart, and contract out on hauling jobs. A bullock cart or a bicyclc
,8
OuL o PovcrLy
,
trailcr bccomcs a major sourcc ol incomc whcn uscd to transport high
valuc crops to markcts or to haul inputs to thc larm. Contract hauling
in itscll thcn can bccomc an important sourcc ol incomc.
Housing
Govcrnmcnts and dcvclopmcnt organizations havc launchcd many
housing initiativcs, but thc subsidizcd housing is almost always lar too
cxpcnsivc lor dollaraday lamilics, and il houscs arc givcn away, as
thcy somctimcs arc, thcrc is not cnough moncy to build morc than a
tiny lraction ol thc homcs that arc nccdcd. Howcvcr, whcn poor pcoplc
carn morc incomc, thcy oltcn invcst in homc improvcmcnts such as
rcplacing a thatch rool with corrugatcd tin that docsnt lcak. thcrs
rcdo thcir dung and clay oors. Still othcrs add a scparatc small kitchcn
to thcir courtyard, so thcir cooking rcs dont ovcrhcat thc main living
spacc in summcrtimc. Somc build a morc pcrmancnt housc than thc
morc common mudandwattlc dwclling with a thatchcd rool. This
housc is likcly to havc rcal markct and collatcral valuc, but it may takc
tcn or twclvc ycars to build, twcntyvc bricks at a timc. As incomc
lrom agriculturc continucs to incrcasc, thc housc construction can
spccd up, and whcn thc rst modulc is complctcd, its collatcral valuc
can contributc to building a sccond and third modulc morc quickly.
Fncrgy
Vhcn 8ahadurs lamily incrcascd thcir incomc, thcy quickly bought
two bualocs, which now producc good incomc lrom milk. nc ol
thcm is uscd to plow thcir onc acrc ol ricc down by thc rivcr, but thcy
borrow scvcn morc bualo lrom ncighbors, and thc tcam ol cight can
plow an cntirc cld in onc day. Thcn thc ncighbors can usc thc Thapa
lamily bualo to hclp prcparc thcir ricc clds lor planting. 8ahadurs
ncw housc is now conncctcd to clcctricity, but most ol his ncighbors
cant aord it. Thc irrigation and drinking watcr thcy usc ows gravity
lcd through pipcs lrom strcams, and thc closcncss ol a pavcd road with
buscs simplics thcir transport nccds. !n all thcsc rcspccts, thcy arc
luckicr than most smallacrcagc poor larmcrs.
8o
OuL o PovcrLy
Altcr Vorld Var !!, thc US govcrnmcntsponsorcd Rural lcctri
cation Administration (RA) program madc clcctricity widcly avail
ablc in thc rural South, spurring cconomic dcvclopmcnt thcrc. 8ut
morc than . billion pcoplc in poor rural arcas in dcvcloping countrics
will ncvcr bc conncctcd to thc clcctric grid. Most ol thcm arc small
acrcagc larmcrs likc Krishna 8ahadur Thapa, who nccd cncrgy cvcry
day to lilt watcr, cultivatc thcir clds, cook thcir mcals, transport crops
and inputs, carry out somc valucaddcd proccssing, and light thcir
homcs altcr dark. Human powcr is thc main cncrgy sourcc, along with
candlcs and kcroscnc and ashlight battcrics to providc light, and
wood lor cooking. Thcy spcnd thrcc to vc dollars a month on
kcroscnc lor thcir lamps, and on battcrics and candlcs.
A rangc ol ncw aordablc tcchnologics now availablc can cnhancc
smallacrcagc larmcrs usc ol cncrgy and makc it morc ccicnt. For
houschold lighting, solar lantcrns with thrcc timcs thc light intcnsity
ol kcroscnc lamps arc now availablc lor a rctail pricc ol twclvc dollars,
with a payback pcriod ol lcss than six months lrom savings in kcroscnc,
candlcs, and battcrics, and as smalllarm incomc incrcascs, it soon will
bc possiblc to invcst in a ltydollar solar homc systcm that lights lour
rooms and powcrs a radio and a blackandwhitc tclcvision sct.
Trcadlc pumps arc a much morc ccicnt way ol using human powcr
lor irrigation than arc buckcts with a ropc attachcd, and aordablc
dripirrigation systcms savc cncrgy uscd in watcrlilting by rcducing
thc amount ol watcr nccdcd to producc thc samc crop. Cook stovcs
that usc lcss than hall thc rcwood consumcd by thc thrccstonc
mcthod arc now availablc lor vc dollars, and thc poor havc purchascd
hundrcds ol thousands ol thcm. Lowcost houscholdlcvcl gasicrs,
which arc cvcn morc ccicnt and lcavc bchind somc salablc charcoal
altcr cooking a lamily mcal, will soon bc availablc.
Most smallplot larmcrs lcavc a much gcntlcr lootprint on thc
planct in thcir usc ol cncrgy than do thcir largclarm ncighbors. Hu
man and animal powcr lor watcrlilting and cultivation burn rcncw
ablc cncrgy in thc lorm ol grain and loddcr, comparcd with thc dicscl
lucl consumcd by thc mcchanizcd pumps and tractors uscd by thcir
largclarm ncighbors, and a larmcr using his own lcgs to lilt watcr is
likcly to bc much morc judicious in its usc than is a ncighbor turning
8
on an clcctric pump by icking a switch. A bullock cart runs on loddcr,
a lorm ol rcncwablc cncrgy. A pickup truck burns gasolinc.
!ncrcasing smalllarm incomc through growing cash crops makcs
its grcatcst contribution to thc rcduction ol carbon cmissions by short
cning thc transport chain lrom cld to tablc. Thc rural poor routincly
livc with a lood dccit that lrcqucntly turns into laminc in timcs ol
drought or ood, rcquiring largc amounts ol lood aid to bc transportcd
ovcr grcat distanccs. As small larms incrcasc thcir incomc by growing
cash crops, thcy can aord to incrcasc thc yiclds ol thc subsistcncc
crops thcy grow, and covcr any dccits that rcmain by buying thc lood
thcy nccd lrom thcir graingrowing largclarm ncighbors. This morc
than makcs up lor thc slight incrcasc in transport cncrgy uscd to bring
thcir lruits and vcgctablcs to markct.
nding povcrty will not by itscll addrcss all thc dccits poor pcoplc
currcntly lacc in acccss to rcasonablc hcalth, cducation, transport,
watcr and sanitation, housing, and cncrgy scrviccs. 8ut it will makc a
rcmarkably signicant contribution to solving cach ol thcsc problcms.
8y addrcssing thc root causc ol rapid population growth and hclping
nd solutions to othcr root causcs ol povcrty, hclping millions ol cx
trcmcly poor pcoplc out ol povcrty will makc a prolound contribution
to nding practical solutions to many ol thc kcy challcngcs lacing thc
planct ovcr thc ncxt lty ycars. Nothing illustratcs this bcttcr than thc
cxpcricncc ol Krishna 8ahadur Thapa and his lamily.
Moving out of poverty in Zambia
8
cntr1cr cicvcN
Taking
Action to
Fnd Povcrty
uvvviov:vx: uoxovs, :ui:ix~:iox~i covvov~:ioxs,
univcrsitics, agriculturc and irrigation rcscarch institutions, ordinary
pcoplc all ovcr thc world, and, most importantly, poor pcoplc thcm
sclvcs will nccd to adopt ncw ways ol thinking about povcrty and ncw
ways ol acting in ordcr to cnd it.
WhaL You Can Do
! wrotc this book to crcatc a rcvolution in how wc think about povcrty
and what wc do about it. That rcvolution bcgins with you.
! havc bccn askcd many timcs il thc practical solutions to povcrty
in this book can also bc applicd to povcrty in thc Unitcd Statcs. l
coursc thcy can! !n onc rcgion ol thc Navajo Nation whcrc thc bordcrs
ol Colorado, Arizona, and Ncw Mcxico mcct, thc 8urcau ol !ndian
Aairs (8!A) spcnds scvcral million dollars cvcry lcw ycars rchabilitat
ing a canal that providcs irrigation watcr to cight hundrcd poor rural
Navajo lamilics. Many ol thcsc lamilics livc on wcllarc and usc this
prccious watcr to grow grass lor thcir riding ponics.
Yct ! mct a Navajo cntrcprcncur who works lor thc 8!A and grows,
proccsscs, and packagcs stcamcd corn, and a varicty ol culturally val
ucd corn products. Hc sclls thcm to Navajo customcrs all ovcr thc
Unitcd Statcs. ! mct lour or vc othcr cntrcprcncurial Navajo larmcrs
likc him. Vhy couldnt thcsc succcsslul Navajo cntrcprcncurs scrvc as
rolc modcls lor hundrcds ol Navajos using lowcost drip irrigation and
intcnsivc horticulturc to crcatc and markct a varicty ol brandcd cultur
ally important highvaluc agricultural products: And why couldnt
thosc ol you intcrcstcd in Nativc Amcrican culturc hclp somcthing
likc this comc into bcing:
Vhcn ! visitcd thc San Luis \allcy, thc poorcst rural arca in Col
orado, ! lcarncd that potatocs, onc ol thc most cconomically important
crops grown thcrc, wcrc truckcd out ol thc San Luis \allcy to Tcxas,
whcrc thcy wcrc rcpackagcd in vcpound bags, truckcd back to San
Luis \allcy groccry storcs, and sold at a dcccnt markup. 8ut thc potato
products with thc grcatcst markups wcrc lrozcn packagcd lrcnch lrics
and curly lrics, truckcd back lrom Tcxas to San Luis \allcy calcs and
rcstaurants. Vhy not lorm local rural cntcrpriscs that proccss local
potatocs into lrozcn lrcnch lrics and curly lrics and scll thcm to local
rcstaurants: Thc savings in transport costs should morc than makc up
lor thc cconomics ol scalc ol biggcr proccssing plants in Tcxas. Sincc
a lot ol canola is also grown in San Luis \allcy, why not usc lowcost
oil cxpcllcrs to producc a locally brandcd lorm ol canola oil lor local
hcalth lood storcs:
!n thc !ntroduction, ! told thc story ol thc things ! lcarncd lrom
spcnding an altcrnoon with Joc, a homclcss pcrson who livcd undcr a
loading dock by thc railroad yards in cnvcr. Most ol you mcct homc
lcss pcoplc cvcry day, and its natural to turn your hcad away. 8ut many
homclcss pcoplc havc intcrcsting storics to tcll, and its simplc to ask
thc sta ol thc ncarcst homclcss shcltcr to introducc you to onc or two
ol thcm who arc too quict or shy to bc panhandlcrs. \irtually all homc
lcss pcoplc havc a problcm nding a salc placc to storc thcir stu.
Vhat would it takc to nd an unuscd building in an arca lrcqucntcd
by homclcss pcoplc whcrc somc homclcss pcoplc who arc natural
8
OuL o PovcrLy
cntrcprcncurs could opcratc a salc storagclockcr busincss scrving
othcr homclcss pcoplc:
Thcsc arc cxamplcs ol thc practical things you can do, il you livc in
thc Unitcd Statcs or Canada or uropc, to hclp solvc thc problcm ol
povcrty at homc. 8ut as youvc probably gucsscd by now, thc problcm
solving proccss ! dcscribc in this book applics to many othcr important
problcms in thc world bcyond povcrty. Thc practical solutions to many
ol thc worlds most dicult social problcms lic in going to whcrc thc
action is, listcning to thc pcoplc who havc thc problcm, and lcarning
cvcrything thcrc is to know about thc problcms local contcxt.
PracLical Things You Can Do
.. !l you likc what youvc rcad in this book, gct tcn othcr pcoplc to
rcad it and cncouragc thcm to act on what thcy lcarn lrom it.
a. Stop pitying poor pcoplc.
. Lcarn as much as you can about poor pcoplc in your ncighbor
hood, thcir spccic problcms, and thc spccic contcxt in which
thcy livc and work.
. 8ccomc inlormcd about thc rcalitics ol global povcrty and what
can bc donc about it.
. !nvcst in viablc busincsscs scrving poor customcrs.
6. Contributc timc and moncy to organizations that dcmonstratc
spccic scalablc impacts, and makc thcm accountablc lor what
cvcr timc or moncy you providc.
WhaL Poor Pcoplc Can Do Lo Fnd Thcir Own PovcrLy
.. Havc hopc.
a. 8c willing to takc somc carclully calculatcd risks.
. ont dcpcnd too much on what thc cxpcrts advisc.
8
Taking AcLion Lo Fnd PovcrLy
. 8c curious about ncw idcas and opportunitics.
. 8c cvcn morc cntrcprcncurial than you arc alrcady.
6. 8c gcncrous in tcaching dcvclopmcnt pcoplc what thcy nccd to
know to bccomc morc ccctivc.
WhaL Donors Can Do Lo Fnd PovcrLy
Thcrc arc two major aws in thc way currcnt donors dclivcr thc lunds
thcy invcst in povcrtycradication initiativcs.
.. Somc c pcrccnt ol thcsc lunds ow dircctly through thc gov
crnmcnts ol dcvcloping countrics, and this simply hasnt workcd.
a. cvclopmcnt donors dont insist that cvcry invcstmcnt produccs
mcasurablc positivc impacts and that thcsc impacts can bc
scalcd up to rcach millions ol pcoplc.
siit1crti tNb rui1iit1crti iNvcs1rcN1s
Total ocial dcvclopmcnt assistancc toppcd .cc billion dollars in
acc,' with c pcrccnt ol it going dircctly to thc govcrnmcnts ol dc
vcloping countrics as bilatcral or multilatcral aid. According to thc
Vorld 8ank, .a pcrccnt ol dcvclopmcnt lunding was dclivcrcd through
nongovcrnmcntal organizations (NGs) instcad ol govcrnmcnts.
irccting lunding through thc govcrnmcnts ol dcvcloping countrics
is so much a part ol thc aid landscapc that nobody sccms to noticc it
anymorc, much lcss qucstion it. Thc thinking bchind such a policy
sccms cmincntly rcasonablc. !ts just as important lor thc govcrnmcnt
ol a poor country to strcngthcn its own capacity to plan and to implc
mcnt plans as it is to gct critical roads and schools and hospitals built.
Unlortunatcly, this approach simply has not workcd, and somc ol thc
lunding dclivcrcd through NGs has also lailcd to producc positivc
mcasurablc impacts.
Thc lact that major donors such as thc Unitcd Nations cvclopmcnt
Program (UNP) can providc lunding only through thc govcrnmcnts
ol rccipicnt countrics somctimcs crcatcs unconscionablc limitations.
For cxamplc, thc UN Millcnnium cvclopmcnt Goals initiativc is
86
OuL o PovcrLy
blockcd lrom lunding projccts in Myanmar bccausc thc govcrnmcnt
ol Myanmar docs not mcct UN standards lor good govcrnancc. This
mcans that thc rapidly growing numbcrs ol cxtrcmcly poor pcoplc in
Myanmars rcmotc villagcs, who havc littlc or no inucncc on who gov
crns thcir country, arc ocially rcmovcd lrom Unitcd Nations assistancc.
Thc solution to this dilcmma is as dicult to implcmcnt as it is
casy to visualizc. Rcvcrsc thc currcnt ratio! !nsist that c pcrccnt ol
currcnt donor invcstmcnts in dcvclopmcnt ows dircctly to thc villagcs
and urban slums whcrc poor pcoplc carn thcir livclihoods and drcam
ol a bcttcr luturc, and that ac pcrccnt ows through thc govcrnmcnts
ol dcvcloping countrics.
wnv siit1crti tNb rui1iit1crti ruNbs trc rissrcN1
8y thc timc Joscph Mobutu lclt Zairc altcr thirty ycars ol dcspotic
rulc, his nct worth was cquivalcnt to Zaircs national dcbt. 8ut in spitc
ol all thc attcntion that corruption gcts, it isnt thc most important rca
son why so many projccts that ow through thc govcrnmcnts ol poor
countrics lail to show rcsults. Thc biggcst rcason is that thc govcrnmcnt
lcadcrs and thcir lricnds usc thcir inucncc to dircct thc moncy to
projccts that may bc ol grcat intcrcst to thcm but havc no disccrniblc
impact on thc major problcms thcir countrics lacc. xtrcmcly poor
pcoplc havc littlc political inucncc, so it shouldnt bc a big surprisc
that big dcvclopmcnt projccts dont hclp thcm much.
Joscph Mobutus govcrnmcnt was ablc to obtain lunding lrom
multiplc donors lor a billiondollar powcr linc in Zairc, dcscribcd by
Time magazinc as lollows:
Among Mobutus dcvclopmcnt projccts was a hugc undcrtaking to
dam thc Zairc Rivcr and to build a .,.ccmilclong powcr linc to thc
Shaba coppcrproducing rcgion at a total cstimatcd cost ol about s.
billion. ight months altcr thc powcr was nally turncd on in .., thc
currcnt was switchcd o. Shaba provincc happcns to bc scllsucicnt
in clcctricity. Says onc Vcstcrn diplomat: !l cvcr thcrc was a whitc
clcphant, this is it. Zairc nccds thc schcmc as much as it nccds a
nuclcarpowcrcd submarinc.
Mobutu and his lricnds undoubtcdly rcapcd rich rcwards by divcrt
ing lunds lrom this projcct into thcir pockcts, and could lcavc thc
8,
rcsponsibility lor rcpaymcnt ol thc loans involvcd to his succcssors,
who will undoubtcdly apply lor onc ol thc intcrnational rounds ol
dcbt lorgivcncss whcn thc loans comc duc.
Vhilc Mobutus powcr linc may bc an cxtrcmc cxamplc ol thc
lutility ol dirccting lunds through thc govcrnmcnts ol poor countrics,
thc ultimatc impact ol many multilatcral and bilatcral projccts is littlc
bcttcr. !n Ncpal, lor cxamplc, both thc Chapakot Tar projcct, a lavoritc
ol thc govcrnmcnts irrigation dcpartmcnt, and thc massivc Arun !!!
hydropowcr projcct wcrc abortcd altcr millions ol dollars had alrcady
bccn spcnt, bccausc thc govcrnmcnt lcadcrs and thcir inucntial
lricnds who supportcd thcsc projccts lor scllscrving rcasons ncvcr rc
alistically cxamincd cithcr thc cxccssivc cost ol thcsc projccts or thc
morc costccctivc and cnvironmcntally ccctivc dcccntralizcd altcr
nativcs. !n thc samc way in Alrica, hundrcds ol millions ol dollars ol
bilatcral and multilatcral lunds havc bccn spcnt on largc and cxpcnsivc
irrigation systcms backcd by govcrnmcnts and thcir inucntial lricnds,
without scrious attcmpts to lcarn about much morc aordablc and
costccctivc small irrigation systcms that havc grcat rclcvancc both to
cnding thc povcrty ol dollaraday rural lamilics and to stimulating
rural growth in most Alrican countrics.
For all ol thcsc rcasons, its timc to rcvcrsc thc ratio ol whcrc dcvcl
opmcnt lunds arc invcstcdwc should invcst c pcrccnt or morc ol
dcvclopmcnt lunds dircctly at thc grassroots lcvcl, in initiativcs with
mcasurablc impacts ccntcrcd on incrcasing thc incomc ol vcry poor
pcoplc, and invcst thc rcmaining ac pcrccnt through thc govcrnmcnts
ol dcvcloping countrics in ordcr to improvc inlrastructurc. Thc lunds
that continuc owing to govcrnmcnts could bc ticd to spccic dclivcr
ablc outcomcs, including public support ol scrviccs in hcalth, cducation,
transport, cncrgy, and thc othcr kcy inlrastructurcs that arc so critical
in sustaining poor lamilics.
Sincc many ol thc . govcrnmcnts that havc signcd on to thc Mil
lcnnium cvclopmcnt Goals arc thosc ol dcvcloping countrics, and
thcsc govcrnmcnts havc powcrlul links to lcadcrs in lcnding institu
tions and kcy dcvclopmcnt donors, such a ratio rcvcrsal is likcly to bc
cxtrcmcly dicult to accomplish. Such a sca changc may rcquirc a ncw
gcncration ol lcnding and dcvclopmcnt institutions that arc lcss ticd to
thc govcrnmcnts ol dcvcloping countrics and thcir cxisting powcrlul
88
OuL o PovcrLy
sponsors. 8ut to havc any hopc ol implcmcnting practical solutions to
cxisting scvcrc povcrty, such a sca changc is cxactly what has to bc
accomplishcd.
1ic ruNbiNc 1o rctsurtsic irrtc1s tNb sctitsiii1v
Thc 8ill and Mclinda Gatcs Foundation has two rulcs lor lunding a
projcct, cach ol which is a vcry hclplul condition.
.. No mattcr how promising any projcct sounds, il it cant dcnc
mcasurablc impacts and attain thcm, thc loundation wont invcst
in it.
a. !l a projcct dcncs attainablc impact, thc Gatcs Foundation still
wont invcst in it unlcss it can bc scalcd up to rcach largc numbcrs
ol pcoplc.
!l all dcvclopmcnt donors insistcd on mcasurablc impact and scala
bility lor cvcry pcnny ol thc s.cc billion thcy invcst cvcry ycar in
dcvclopmcnt initiativcs, thc rcsults achicvcd by thcir povcrty cradica
tion initiativcs would improvc dramatically.
WhaL MulLinaLionals Can Do Lo Fnd PovcrLy
Multinational corporations can makc dramatic contributions to thc
cnd ol povcrty and, at thc samc timc, to thcir own bottomlinc prots,
but that too will takc a rcvolution in how thcy dcnc, pricc, and dclivcr
thcir products. !n spitc ol thc lact that Johnson and Johnson, a com
pany in thc intcrnational pharmaccuticals busincss, has prcscncc and
manulacturing capability in !ndia, thc company has not introduccd
Tylcnol, a major protmakcr in dcvclopcd markcts, to !ndia. Vhy
not: 8ccausc it docsnt think it can makc an attractivc prot doing so.
8ut implcmcnting a pricc structurc and a markctinganddistribution
stratcgy that compctc in thc !ndian markctplacc would bc likcly to
producc attractivc prots lrom highcr volumc cvcn with lowcrmargin
salcs. !t would also allow J and J to manulacturc Tylcnol at a lowcr
pricc in !ndia and cxport it to othcr countrics.
Most pharmaccutical multinationals havc a barcly pcrccptiblc prcs
cncc lor both prcscription and ovcrthccountcr drugs in cmcrging
8
markcts. nc US pharmaccutical lcadcr said, Latin Amcrica is not a
placc whcrc you can cvcr makc moncy.`
Contrast this with thc statcmcnt madc by Robcrt Vood Gcncral
Johnson in ., as hc sct out to rclorm thc pharmaccutical industry
with thc company that borc his namc.
!ndustry only has thc right to succccd whcrc it pcrlorms a rcal
cconomic scrvicc and is a truc social assct.
!l thc pharmaccutical industry adoptcd Gcncral Johnsons .
crcdo, thc livcs ol hundrcds ol millions ol pcoplc in cmcrging markcts,
with illncsscs ranging lrom H!\/A!S to pncumonia, would improvc.
So would thc bottom lincs ol intcrnational pharmaccutical companics.
This kind ol institutionalizcd blindncss is not limitcd to pharma
ccutical companics. !t prcvcnts multinationals lrom providing a widc
spcctrum ol products and scrviccs that billion ignorcd customcrs
dcspcratcly nccd and arc cagcr to buy.
At a timc ol incrcasing watcr scarcity, drip irrigation, onc ol thc most
ccicnt ways ol dclivcring watcr to plants, rcprcscnts only . pcrccnt ol
global irrigatcd acrcagc. This is primarily bccausc thc dripirrigation
systcms sold by cxisting companics arc too big and too cxpcnsivc lor
thc smalllarm mass markct. At thc samc timc, lully hall ol all thc
salcs ol thc currcnt global irrigation industry arc madc to goll courscs.
!l only onc in tcn ol thc million larms in thc world lcss than vc
acrcs bought and installcd hallacrc lowcost drip systcms dcsigncd to
t thcir small plots and wallcts, global acrcagc undcr drip irrigation
would triplc. Yct both Nctam, thc biggcst dripirrigation company in
thc world, and Jain !rrigation, thc biggcst dripirrigation company in
!ndia, havc politcly but rmly rcjcctcd my rcpcatcd attcmpts to pcr
suadc thcir top lcadcrship to cntcr thc rclativcly untouchcd mass mar
kct lor small, aordablc drip systcms.
!n contrast, a small but incrcasingly inucntial group ol multina
tionals is launching protablc initiativcs that scrvc lcss aucnt cus
tomcrs. Ncstl, thc Swissbascd lood giant, is rccruiting smallplot
cocc larmcrs to supply shadcgrown spccialty coccs to thc millions
ol uropcans and North Amcricans who havc bought its homc
csprcsso Ncssprcsso machincs. Most ol thc a million smallplot col
lcc growcrs in thc world dont havc acccss to thc cocc sccdlings, thc
cuttingcdgc horticultural tcchniqucs, and thc aordablc irrigation
o
OuL o PovcrLy
rcquircd to grow thcsc spccialty coccs. So in Nicaragua, CM
thc largcst intcrnational cocc cxport company in thc world, which
providcs much ol thc spccialty cocc lor Ncstls Ncssprcsso ma
chincs and Atlantic, an intcrnational cocc company that supplics
Ncstl, arc providing both ncw varictics ol cocc sccdlings and train
ing programs lor smallplot cocc growcrs. !s provision ol acccss
to aordablc drip irrigation in sidcbysidc tcst plots has produccd rc
markablc additional gains in yicld and quality. !l thc scalingup ol this
initial pilot program provcs succcsslul, CM/Ncstl and ! plan a
partncrship applying this approach to smallplot cocc growcrs on a
much largcr scalc in scvcral dcvcloping countrics, and to apply thc
samc approach to smalllarm tca and dairy production.
Thousands ol opportunitics likc this cxist lor multinationals to
makc a dircct positivc impact on povcrty cradication, and to improvc
thcir prots doing so.
WhaL UnivcrsiLics Can Do
!t should bc no surprisc that univcrsitics and rcscarch institutions havc
thc samc kinds ol blind spots as multinational corporations. How can
wc cxpcct prolcssors ol animal husbandry or agriculturc or cnginccring
at Colorado Statc Univcrsity to tcach graduatc studcnts lrom Ncpal
and thiopia and Malawi how to raisc thrcc goats protably or how to
cultivatc a quartcr acrc ol divcrsicd oscason lruits and vcgctablcs or
to dcsign a lowprcssurc hallacrc sprinklcr systcm that lasts thrcc
ycars: Yct tcaching cuttingcdgc thcory and practicc in cach ol thcsc
topics will do morc lor povcrty cradication in cmcrging markcts than
all thc inlormation currcntly bcing taught about animal husbandry
lactorics or plantation monoculturc, or thc dcsign ol airconditioncd
combincs with morc bclls and whistlcs.
nding povcrty rcquircs rcvolutionary changcs in how wc think
and what wc do about watcr, agriculturc, markcts, and dcsign. Thcrc is
no bcttcr placc to start thc rcvolution than univcrsitics likc Vagcningcn,
Stanlord, Rcdding, CalTcch, and M!T whcrc so many ol thc prolcs
sional and political lcadcrs in dcvcloping countrics go to gct dcgrccs.
Sincc most ol thc worlds dollaraday pcoplc carn thcir living lrom

oncacrc larms, cntircly ncw courscs and curricula nccd to bc dcvcl
opcd that locus on thc larming, irrigation, markct, and dcsign nccds ol
oncacrc larms. nding urban povcrty rcquircs radical ncw curricula
tcaching how to crcatc ncw cntcrpriscs cmploying slum and pavcmcnt
dwcllcrs and ncw markcts lor highvaluc, laborintcnsivc products and
scrviccs that takc advantagc ol thcir low labor costs.
8ut thc agcndas ol univcrsitics, and ol thc prolcssors who tcach in
thcm, arc shapcd by thc political and commcrcial contcxts in which
thcy opcratc. Thc land grant univcrsitics in thc Unitcd Statcs havc a
clcar agriculturc agcnda, but it is an agcnda that locuscs on continuing
to improvc thc ccicncy ol thc largc, mcchanizcd larms and largc livc
stock opcrations that makc up agriculturc in dcvclopcd countrics.
Many ol thc prolcssors who tcach agriculturc, busincss, irrigation, and
dcsign carncd thcir Phs working on topics dcaling with biglarm
and bigmachincry problcms, and thcsc arc thc samc arcas in which
thc grants that arc a univcrsitys lilcblood arc conccntratcd. So prolcs
sors tcach what thcy know, and bright young studcnts lrom dcvcloping
countrics gct usclul training in Vcstcrn agriculturc and dcsign that
has littlc or no rclcvancc in thcir own countrics.
Thc good ncws is that thc studcnts thcmsclvcs arc asking thcir pro
lcssors to hclp thcm lcarn how to changc all this. Jim Patcll, a prolcssor
at Stanlord School ol 8usincss who is a principal architcct ol Stanlord
csign Schools coursc csign lor xtrcmc Aordability, tclls mc
that tcn ycars ago, thc typical studcnt who camc to Stanlord to gct an
M8A said, Tcach mc to bc 8ill Gatcs.
Now hc or shc is morc likcly to say, Tcach mc to makc a dicrcncc.
l coursc, now 8ill Gatcs has handcd ovcr thc lcadcrship ol Micro
solt and is dcvoting most ol his lilc to making a dicrcncc too.
A major conccrn, ol coursc, is that il univcrsitics arc succcsslul in
hclping studcnts lcarn to makc a dicrcncc in thc world, how will
thcsc graduatcs makc a living at it: A lcw bravc souls arc alrcady start
ing thcir own companics and dcvclopmcnt organizations, and a lcw
morc go to work lor organizations such as Mcrcy Corps or Hclvctas or
Vinrock or SKAT or !. 8ut thc rcal job opportunitics will comc
lrom thc commcrcial scctor as multinationals and a rangc ol largc and
small cntcrpriscs incrcasingly crcatc ncw vcnturcs that scrvc thc othcr
c pcrccnt ol customcrs who arcnt now bcing scrvcd.
:
OuL o PovcrLy
WhaL Rcscarch InsLiLuLions Can Do
Many ol thc pcoplc who tcach in univcrsitics also consult or work lor
rcscarch institutions working on dcvclopmcnt problcms. Thc Consul
tativc Group on !ntcrnational Agricultural Rcscarch (CG!AR), which
carrics out rcscarch to support thc grccn rcvolution, has bccn rcmark
ably ccctivc in incrcasing thc worlds lood supply. Lowcring thc rcal
pricc ol lood hclps poor pcoplc. 8ut cnding povcrty rcquircs thc crc
ation ol rcscarch institutions gcncrating ncw thinking and ncw practicc
lor incrcasing thc incomcs ol poor pcoplc in rural and urban arcas.
Thc Small-Farm ProspcriLy NcLwork
! proposc wc lorm a nctwork ol ccntcrs, comparablc in sizc and scopc
to thc CG!AR nctwork, callcd thc SmallFarm Prospcrity Nctwork,
with an annual budgct in thc rangc ol sc million, locuscd on rcscarch
and innovativc practicc to crcatc ncw incomc on thc oncacrc larms
whcrc somc cc million dollaraday pcoplc now carn thcir livings.
Thc ccntcrs in this nctwork would includc:
1nc trrorbtsic srtii-rtrr irrict1ioN ccN1cr
A rcvolution in irrigation is nccdcd to dcsign and disscminatc a rangc
ol ncw lowcost irrigation tcchnologics that t thc nccds ol oncacrc
larms. Thc !ntcrnational Vatcr Managcmcnt !nstitutc (!VM!), a part
ol thc currcnt CG!AR systcm, has in thc past lcw ycars bcgun to do
important work in this cld, but its main cmphasis rcmains rcscarch
on largc irrigation systcms and ways to managc thcm morc ccctivcly.
! rcccntly rcccivcd support lrom thc Gatcs Foundation to bring
thirtccn dicrcnt smallplot irrigation tcchnologics to thc markct
rcady point, including a varicty ol aordablc smalllarm watcrlilting,
watcrstoragc, and watcrdistribution tcchnologics. 8ut ! is a com
parativcly small organization, and whilc othcr organizations such as
KickStart and ntcrpriscVorks/\ita havc madc important contribu
tions, cspccially in thc dcsign and privatcscctor distribution ol trcadlc
pumps, thc wholc cld would bcnct lrom thc crcation ol a rcscarch
and disscmination ccntcr locusing on thc dcvclopmcnt and mass
disscmination ol aordablc smalllarm irrigation tools.

1nc ccN1cr ror iNNovt1ioN iN rui1iric-usc svs1crs
! havc prcviously pointcd out thc opportunitics that cxist lor intcgrating
thc crcation ol villagc drinkingwatcr systcms with thc incomc oppor
tunitics that can bc dcrivcd lrom concurrcntly using thc watcr madc
availablc by ncw drinkingwatcr systcms to irrigatc intcnsivcly culti
vatcd smallhorticulturc crops. !, !VM!, and scvcral othcr organi
zations havc alrcady dcmonstratcd that thc incomc lrom productivc
usc ol somc ol thc watcr originating lrom multiplcusc systcms is
sucicnt to pay o a loan lor thc construction ol thc systcm. A ccntcr
chargcd with lacilitating thc rapid disscmination ol multiplcusc sys
tcms and carrying out rcscarch in thc cld would opcn cconomically
sustainablc acccss to ncw sourccs ol houschold watcr lor millions ol
pcoplc who dont havc it now, and would providc ncw sourccs ol irri
gation watcr capablc ol incrcasing thc incomcs ol millions ol small
plot larmcrs.
1nc srtii-rtrr rrosrcri1v tcricui1urc ccN1cr
nding povcrty rcquircs a rcvolution in agriculturc locusing on incomc
gcncrating crops lor small larms. Thc SmallFarm Prospcrity Agricul
turc Ccntcr will dcvclop ncw varictics ol laborintcnsivc, markctablc
cash crops lor oncacrc larms, thc cultivation mcthods rcquircd to
grow thcm, and thc busincss practiccs rcquircd to scll thcm at an
attractivc prot.
1nc ccN1cr ror crct1iNc Ncw rrosrcri1v ror
1nc itNbicss
\irtually all landlcss pcoplc in thc rural arcas ol dcvcloping countrics
arc not lunctionally landlcss. Most ol thcm havc acccss to onc hundrcd
to vc hundrcd squarc mctcrs ol land providcd by thcir landlords or by
villagc commons arcas. !n ! Ncpal, smallplot larmcrs arc carning
nct incomcs ol as much as two hundrcd dollars by growing monsoon
scason tomatocs, and most landlcss lamilics alrcady cxpand thcir crop
arca by growing squash vincs on thcir rooltops and planting onc or
two papaya trccs lor thcir lamilys usc. Thc Ccntcr lor Crcating Ncw
OuL o PovcrLy
Prospcrity lor thc Landlcss will conduct compctitions lor gcncrating
thc grcatcst incomc on onc hundrcd squarc mctcrs, dcvclop intcnsivc
horticultural tcchniqucs lor optimizing incomc lrom small plots ol
land, and rcscarch ways lor landlcss pcoplc to incrcasc thcir incomcs.
1nc ccN1cr ror crct1iNc Ncw rtrxc1s 1nt1 scrvc
roor cus1orcrs
A rcvolution in markcts is to undcrstand and nd ways to addrcss thc
glaring inccicncics ol thc cxisting markcts whcrc dollaraday urban
and rural pcoplc arc buycrs and scllcrs. Thc Ccntcr lor Crcating Ncw
Markcts That Scrvc Poor Customcrs will idcntily Hcnry Fordsizc
opportunitics in thc rural and urban markcts, and takc practical action
to cxploit thcm. !n rural arcas, thc ccntcr will lacilitatc thc cmcrgcncc
ol privatcscctor supply chains providing smallacrcagc larmcrs with
thc irrigation, sccds, lcrtilizcr, pcst managcmcnt, and crcdit thcy nccd
to grow highvaluc, laborintcnsivc crops, and thc valuc chains that hclp
thcm gain acccss to markcts whcrc thcy can scll thcir crops at a prot.
!n urban arcas, thc ccntcr will lacilitatc thc cmcrgcncc ol ncw job
crcating cntcrpriscs and ncw markcts lor highvaluc, laborintcnsivc
products that can harncss thc lowcost labor ol slum and pavcmcnt
dwcllcrs.
WhaL DcvclopmcnL OrganizaLions Can Do
From grassroots villagc organizations in !ndia, with budgcts ol a lcw
hundrcd dollars, to giant intcrnational organizations such as Vorld
\ision, with an annual budgct ol s... billion, thcrc arc thousands ol
dcvclopmcnt organizations in thc world working on povcrty issucs.
Thcir main shortcoming is that lcw ol thcm know anything much
about how to makc moncy, and thcy havc littlc or no motivation to
lcarn how to do so. Thc problcm with this is that hclping poor pcoplc
to makc morc moncy is thc singlc most important thing anyonc can
do to cnd povcrty.
Vhcn ! startcd ! in .., busincss was a dirty word to thc dcvcl
opmcnt community, which rcgardcd thc protccring ol multinationals

and othcr commcrcial rms as a root causc ol povcrty. vcr thc last
ltccn ycars, thcrc has bccn a growing rcalization by dcvclopmcnt
workcrs that not all busincsscs arc cvil and that ccctivc busincss
stratcgics providc important tools lor povcrty allcviation. !n spitc ol
this, most dcvclopmcnt organizations givc things away, opcratc in ways
that undcrcut sustainablc markct lorccs, and build thcir missions and
thcir lundraising stratcgics around thc good lccling you gct whcn you
donatc somcthing ol valuc to a poor pcrson who nccds it.
Thc povcrty ol millions ol dollaraday pcoplc would cnd il dcvcl
opmcnt organizations adoptcd a lcw basic principlcs:
.. Talk to as many poor pcoplc as you can bclorc you start any
programs, and lcarn as much as you can about thc spccic con
tcxts whcrc thcy livc and work.
a. !l you havc a product or a scrvicc that you think is valuablc lor
poor pcoplc, dcsign it to scll at a pricc that is aordablc at thcir
prcscnt incomc lcvcl. !l thcy dont clcct to buy it, changc it or
drop it.
. Trcat poor pcoplc as customcrs lor goods and scrviccs instcad ol
as rccipicnts ol charity.
. Stop giving things away, and opposc govcrnmcnt and donor
subsidics.
. csign and distributc incomcgcncrating products and scrviccs
lor dollaraday pcoplc that providc a nct rcturn ol cc pcrccnt
a ycar or morc on thcir invcstmcnts.
6. Promotc thc cmcrgcncc ol protablc privatcscctor supply
chains to scll poor pcoplc thc things thcy nccd at a lair markct
pricc, and protablc privatcscctor valuc chains that allow thcm
to scll what thcy producc at an attractivc prot.
,. pcn acccss to crcdit.
! lully rcalizc that a public invcstmcnt is nccdcd in arcas such as
hcalth, cducation, and transport, thc samc as thcrc is in countrics with
maturc markcts. 8ut in many dcvcloping countrics, thc moncy simply
6
OuL o PovcrLy
isnt thcrc lor thc govcrnmcnt to providc thc roads and hcalth carc and
cducation that poor pcoplc nccd. 8ut whcn thcy gain acccss to ncw
sourccs ol incomc, poor pcoplc continuc to astonish mc with what
thcy arc ablc to do lor thcmsclvcs.
WhaL Dcsigncrs Can Do: Dcsign or Lhc OLhcr
o PcrccnL
!l all thc crcativc problcmsolvcrs in thc cld ol dcsign addrcss only
thc problcms ol thc richcst .c pcrccnt ol thc worlds customcrs, a rcvo
lution in dcsign is nccdcd to incorporatc thc nccds ol thc othcr c
pcrccnt. This rcquircs radical changcs in thc way dcsign is taught both
in rich and in dcvcloping countrics, and building a platlorm so that at
lcast tcn thousand ol thc worlds bcst dcsigncrs locus thcir attcntion
on products and scrviccs that mcct thc nccds ol thc othcr c pcrccnt
ol thc worlds population.
nc hundrcd graduatc cnginccring, busincss, and humanitics stu
dcnts apply cach ycar to gct into thc coursc csign lor xtrcmc Al
lordability run by Jim Patcll and avid Kclly at thc Stanlord csign
School, and lorty gct in. This coursc incorporatcs thc principlcs ol dc
sign bascd on thc ruthlcss pursuit ol aordability that ! havc outlincd,
and thc studcnts work in multidisciplinary dcsign tcams on practical
villagc problcms thcy havc sclcctcd altcr !lacilitatcd trips to vil
lagcs in countrics such as Myanmar. Thc output on which cach tcam is
gradcd includcs not only thc quality and aordability ol thc dcsign ol
a cuttingcdgc incomcgcncrating tcchnology thcy havc prototypcd
and cldtcstcd, but also on an clcvator pitch, a short vidco, and a rcal
istic busincss plan. !n acc, onc tcam dcsigncd an improvcd and morc
aordablc trcadlc pump lor Myanmar, took it to Myanmar in thc
summcr altcr thc coursc cndcd, introduccd it to thc markctplacc, and
rcccivcd ordcrs lrom poor larmcrs lor two thousand within two wccks
altcr its introduction to thc markct.
For many ycars, Amy Smith has bccn taking undcrgraduatc studcnts
at M!T working on villagc dcsigns to countrics such as Haiti, Zambia,
!ndia, and Ghana, and studcnts at Cal Tcch rccruitcd Kcn Pickar, a
,
8
OuL o PovcrLy
giltcd spacc cnginccr, to tcach a coursc addrcssing dcsign problcms lor
Guatcmala. To improvc communication with villagc cnvironmcnts,
this coursc linkcd up with a univcrsity in Guatcmala, and dcsign tcams
now includc a studcnt lrom Guatcmala working on cach problcm.
Thc dcsign rcvolution will harncss thc cncrgy ol tcn thousand ol
thc worlds bcst dcsigncrs. ! had a lunch mccting with somc ol thcm
on thc occasion ol thc launch ol thc Smithsonian CoopcrHcwitt
National csign Muscum cxhibit csign lor thc thcr c Pcrccnt,
inspircd by my idcas. 8art \oorsangcr, ol \oorsangcr Architccts PC in
Ncw York which dcsigns largc privatc dwcllings and public buildings,
was lascinatcd by thc challcngc ol dcsigning a hundrcddollar housc,
and ! will mcct with his rm during acc, to discuss how it might
participatc.
A lcw ycars ago, ! bclicvcd that prolcssors tcaching irrigation in
univcrsitics simply showcd a callous disrcgard lor addrcssing villagc
irrigation problcms. Thcn Jack Kcllcr, a rctircd prolcssor ol civil cngi
nccring at Utah Statc who is a world cxpcrt on irrigation, invitcd mc
to participatc in a brainstorming discussion with irrigation acadcmics
at thcir annual mccting. Thcy wcrc lascinatcd by thc possibility ol
applying what thcy kncw about onchundrcdsixtyacrc ccntcrpivot
sprinklcr systcms to dcsigning a lowprcssurc, lowcost, hallacrc
sprinklcr systcm lor a small larm, and thcy wcrc rcady to hclp.
ntcr thc ncw organization ! startcd in acc,, callcd Rcv: csign
lor thc thcr Nincty Pcrccnt. (Rcv, ol coursc, stands lor csign
Rcvolution.) Thc mission ol this ncw organization is to makc thc
dcsign rcvolution a rcality.
nc ol its rst projccts is to work with thc Gatcs Foundation to
dcsign a .hp dicscl cnginc that will do lor smallacrcagc larmcrs what
thc Toyota Prius did lor cars. !t will bc dcsigncd to run with optimal
ccicncy and low cmissions on biolucls grown and proccsscd locally.
n thc drawing board is an intcrnational company to distributc cc
million twodollar rcading glasscs, thc hundrcddollar housc, and a so
larpowcrcd watcrpurilying tcchnology capablc ol dclivcring onc
thousand gallons ol markctablc drinking watcr a day at an invcstmcnt
cost lor an cntrcprcncur ol lcss than onc hundrcd dollars.

! havc no illusions that Rcv will crcatc thc dcsign rcvolution all
by itscll. My drcam rcmains thc samc as whcn ! startcd !: to crcatc
an ccctivc working modcl that will cncrgizc thc dcsign rcvolution
and sprcad it quickly around thc world.
Twelve members of the Thapa family,
:o
cntr1cr 1wcivc
Bahadur and
His Family Movc
Out o Povcrty
xvisnx~ n~n~uuv :n~v~s v~:iivs ~ssv:s cox:ixuvu :o
grow. ncc hc and his lamily had cnough moncy to buy lcrtilizcr and
bcttcr sccds, thcy switchcd to morc productivc grccn rcvolution ricc
sccds, and thc yicld lrom thcir acrc ol ricc by thc rivcr wcnt up lrom
twclvc hundrcd lty kilos cach ycar to twcntytwo hundrcd lty kilos.
8ut now his sons, cu 8ahadur Thapa and Puspa, wcrc marricd and
had childrcn, so thcrc wcrc tcn mouths to lccd instcad ol six, and thc
lamily camc out at thc cnd ol thc ycar at about thc samc placc thcy
wcrc bclorc. Thcy grcw cnough ricc to lccd thcmsclvcs, and carncd
lty to onc hundrcd dollars in a good ycar lrom ricc salcs.
n thc ncxt pagc arc thc cld notcs about thc Thapa lamilys ricc
production, cxactly as ! rcccivcd thcm lrom thc Ncpali agronomist
who works lor ! and livcs hall an hour lrom klc Phant.
8ahadurs lamily invcstcd somc ol thcir ncw incomc in livcstock,
and carncd considcrablc incomc lrom sclling milk and goats lor mcat.
!t sccmcd that Krishna 8ahadur Thapa and his lamily wcrc lcaving
bchind thc povcrty that thcy had always known. Thcn tragcdy struck.
:o:
OuL o PovcrLy
Thc DcaLh o Krishna Bahadur Thapa
n Fcbruary .6, acc, Krishna 8ahadur Thapa was having a normal
day. Although his doctor had diagnoscd high blood prcssurc and
8aha dur was taking mcdicinc lor it, hc continucd to lccl nc. n that
cvcning, thc lamily cnjoycd a good suppcr ol goat mcat, ricc, dahl, and
vcgctablcs. 8ahadur particularly cnjoycd a pudding madc lrom thc
blood ol thc goat thcy had slaughtcrcd. Altcr suppcr, 8ahadur had a
drink or two ol raksi, a traditional alcohol distillcd lrom millct that thc
lamily madc with a still in thcir courtyard. Hc wcnt to bcd carly. Hc
was lound dcad at lour thc ncxt morning. Thc doctor diagnoscd a
hcart attack as thc causc ol dcath.
n January a, acc,, ! wcnt to scc 8ahadurs son and his lamily to
lcarn as much as ! could about how and why 8ahadur had dicd, and to
nd out how thc lamily was doing. Thc hcad ol thc lamily was now
ricib No1cs oN xrisnNt stntbur 1ntrt
Paddy Production
a. Now
\aricty: Mansuli
Production: a,ac Kg ( Muri), . Muri - c Kg
Fcrtilizcr: Urca Kg, AP Kg, Potassium a Kg, lor
surlacc drcssing additional . Kg urca is uscd.
rganic manurc cc oko (.c,cc Kg),
. oko - Kg
Altcr husking thcy havc approximatcly .,c Kg
ol ricc.
b. Past
\aricty: Local
Production: .,ac Kg (a Muri) (Production is sucicnt lor
lamily. Somctimcs thcy sold rcmaining ricc
bccausc thcy had lcwcr mcmbcrs in lamily.)
Fcrtilizcr: rganic manurc
8ahadurs oldcr son, cu 8ahadur Thapa, agc thirty. Hc wclcomcd mc
warmly to his homc whcn ! arrivcd just bclorc noon. ! lound out only
at thc cnd ol thc day that hc had misscd an important mccting ol thc
orangc growcrs coop to spcnd thc day with mc.
! worricd that 8ahadur Thapas ncw prospcrity may havc con
tributcd to his dcath. Had his dict, now richcr in mcat, incrcascd his
blood lcvcls ol bad cholcstcrol or incrcascd his consumption ol raksi:
8ut his son cu told mc that lcw pcoplc livc to thcir sixtics in Ncpal,
and 8ahadur had dicd a happy man at thc agc ol sixtythrcc. Hc said
that although 8ahadur drank somc raksi lrom timc to timc, hc had not
bccomc a hcavy drinkcr. Knowing how hard hc and his lamily had
strugglcd bccausc thcy wcrc poor, ! havc no doubt that 8ahadur cxpc
ricnccd somc ol thc happicst ycars ol his lilc whcn hc kncw that hc
and his lamily had lclt povcrty bchind lorcvcr.
cu 8ahadur Thapa now gavc mc somc cxciting ncws. 8y thc timc
! visitcd in January acc,, two ycars altcr 8ahadurs dcath, his lamily was
carning an astounding s,.6 US pcr ycar lrom a varicty ol cntcrpriscs.
Altcr cxpcnscs, thcy wcrc lclt with s,cc a ycar in nct incomc, about
Krishna 8ahadur Thapas ncw housc
:o
Bahadur and His Family Movc OuL o PovcrLy
twcnty timcs as much as vc ycars carlicr, and much morc than thc
incomc carncd by most ! Ncpal sta mcmbcrs.
Thc Thapa lamily now irrigatcs a lull acrc (lour thousand squarc
mctcrs) ol vcgctablcs, and last ycar vcgctablc salcs brought in a total ol
sa,.. \cgctablcs arc thc lamilys biggcst singlc sourcc ol incomc. ut
ol thc thirtccn vcgctablc varictics thcy grow, oscason cucumbcr and
cauliowcr gcncratc thc most incomcsa lrom cucumbcrs and s.,
lrom cauliowcr with anothcr saaa carncd lrom tomatocs.
CurrcnL IrrigaLion PracLicc
l thc total ol onc acrc (lour thousand squarc mctcrs) ol irrigatcd vcg
ctablcs, onc thousand squarc mctcrs arc irrigatcd by drip, twcntyvc
hundrcd squarc mctcrs by sprinklcr, and vc hundrcd squarc mctcrs ol
vcry hilly land is irrigatcd by hand with a hosc. Sincc a ncw villagc
drinkingwatcr systcm was installcd by thc Youth Foundation, thc
original Hclvctas systcm is uscd only lor irrigation, and sixtccn lami
lics arc now using it instcad ol thc cight lamilics using it vc ycars ago.
Krishna 8ahadur Thapas lamily has lour oxcn, onc cow, lour goats, and lour bualocs,
and sclls tcn litcrs ol milk a day.
:o
OuL o PovcrLy
cu 8ahadur now has a sccond hallinch irrigation pipc lrom anothcr
strcam that also providcs watcr twcntylour hours a day, scvcn days a
wcck. Hc told mc that out ol thc total ol scvcntytwo lamilics in klc
Phant, sixtysix arc now growing irrigatcd oscason vcgctablcs, thrcc
timcs thc numbcr whcn ! visitcd vc ycars carlicr. As ! walkcd with
cu up to somc ol thc ncw watcr sourccs, ! saw that thc wholc land
scapc was lcstooncd with black hallinch hoscs winding thcir way ovcr
trcc branchcs to irrigatcd vcgctablc plots.
Bringing Lhc Familys VcgcLablcs Lo MarkcL
!nstcad ol having to dccidc cvcry day whcthcr to scll thcir vcgctablcs
lrom a stall in thc markct, to hawkcrs, or to wholcsalcrs, thc lamily
now sclls all its vcgctablcs at much bcttcr priccs through thc villagc
Land covered Land covered
(ropani) (hectares) Production Sales Sales
Vegetable (500 sq. m.) (10,000 sq. m.) (Kg) (Rupees) ($)
Cauliflower 5 0.25 1,500 30,000 416.67
Cabbage 1 0.05 500 5,000 69.44
Cucumber 5 0.25 2,600 39,000 541.67
Potato 3 0.15 800 9,600 133.33
Chili 1 0.05 50 1,000 13.89
Tomato 2 0.10 800 16,000 222.22
Betel Gourd (Karela) 1 0.05 500 10,000 138.89
Gourd (Ghiraula) 5 0.25 1,200 11,250 156.25
Beans 6 0.30 900 18,000 250.00
Eggplant 1 0.05 500 5,000 69.44
Pumpkin 1 0.05 200 2,000 27.78
Radish 1 0.05 300 1,500 20.83
Green Vegetables Lump Sum 5,000 69.44
Others Lump Sum 4,000 55.55
Total 157,350 2,185.40
Table 10: Vegetable Production and Income for Deu Bahadur and His Family, 2006
:o
markcting ccntcr. !n thc past thrcc ycars, ! and its partncr Vinrock
!ntcrnational havc workcd with many grassroots organizations to or
ganizc morc than sixty villagc collcction ccntcrs, cach ol which rcnts a
small warchousc callcd a godown and hircs a commissioncd salcs agcnt
with a ccll phonc. nc lamily might producc cight kilos a day ol
Income/Annum Income
Details (Rupees) ($)
Service (from Qatar) 95,000 1,319.44
Fishery 3,500 48.61
Orange sell 25,000 347.22
Goat sell 15,000 208.33
Milk sell 50,000 694.44
Others (from millet, etc.) 1,000 13.88
Total 189,500 2,631.94
Table 11: Other Income
8cans lrom thc Thapa larm on thc way to thc klc Phant collcction ccntcr
:o6
OuL o PovcrLy
cggplant, but scvcnty lamilics producc cnough to attract tradcrs, and
thc salcs agcnts providc rapid lccdback about markct dcmand and
quality prclcrcnccs that larmcrs can incorporatc into thcir growing
and grading practiccs. A larmcrs markcting committcc runs thc klc
Phant collcction ccntcr namcd Pragati Taja Flalhul Thatha Tarakari
Samuhan, mcaning Pragati Frcsh Fruits and \cgctablcs Group. Thc
commission agcnt who works lor thc committcc sclls to a varicty ol
buycrs at amauli, Mugling, and humrc.
A Cornucopia o CrassrooLs FnLcrpriscs
!n addition to thcir vcgctablc busincss, thc Thapa lamily has divcrsi
cd. Tablcs .. and .a summarizc thc incomc lrom thc lamilys othcr
cntcrpriscs, and thcir ycarly cxpcnscs, cxactly as thcy wcrc rcportcd
to mc.
Thc Thapa lamily had blossomcd to tcn mcmbcrs. Puspa 8ahadur
Thapa, Krishna 8ahadur Thapas youngcr son, now agc twcntysix,
had bccn marricd in acc. Vhcrc bclorc, thc lamily had strugglcd to
carn a hundrcd dollars a ycar, now thcy had spcnt vc hundrcd lty
vc dollars on thc wcdding cclcbrations. Puspa had a twomonthold
daughtcr. Hcr grandmothcr rockcd hcr gcntly in a swing madc out ol a
long piccc ol bluc cloth whilc ! talkcd to cu 8ahadur Thapa.
! lcarncd that thc lamily had madc a major invcstmcnt in livcstock.
Thcy now own lour oxcn, onc cow, lour bualocs (including two
calvcs), and lour goats. Thcy bought onc adult milking bualo lor
Amount Amount
Details (Rupees) ($)
Food & Clothing 40,000 555.55
Education 10,000 138.89
Medical 12,000 166.67
Festival 15,000 208.33
Total 77,000 1,069.44
Table 12: Expenditure
:o,
twcnty thousand rupccs, and raiscd thc othcr thrcc lrom calvcs. Thcy
scll an avcragc ol tcn litcrs a day ol milk lrom two bualocs.
Thcy also kccp thrcc traditional bcchivcs, short picccs ol hollowcd
out logs hung by wircs lrom support bcams outsidc thcir housc. Thcy
dont scll honcythcy consumc all thcy producc.
Two ycars ago, thc lamily paid a,ccc rupccs lor vc ropanis ol
land (about twothirds ol an acrc) with orangc trccs a twohour walk
lrom thcir homc in thc hills abovc it, and immcdiatcly bcgan to plant
morc orangcs. !n acc6 thcy carncd s, lrom thc orangc grovc. Thcy
carncd an additional sac by sclling goats lor mcat, and s6 by sclling
bualo milk. From a lricnd in thc govcrnmcnts shcrics dcpartmcnt,
Krishna 8ahadur Thapa lcarncd that thcrc was a shortagc ol ngcr
lings lor shponds, so hc dug a small pond and startcd raising tilapia
ngcrlings lrom spawn hc got lrom thc shcrics dcpartmcnt. Thc
lamily carncd only s lrom raising ngcrlings last ycar, but hopcs to
cxpand thcir minnow vcnturc ncxt ycar.
Finally, two ycars ago, Krishna 8ahadur Thapas youngcr son, Puspa
8ahadur Thapa, immigratcd to Qatar on an cightccnmonth contract
Thc lamily raiscs sh ngcrlings to scll to sh larmcrs lor thcir ponds.
:o8
OuL o PovcrLy
:o
with an oil company. ! lcarncd that gctting a good labor contract likc
this was not casy. Thc lamily had to pay ,c,ccc rupccs in cash up
lront to a labor contractor to gct thc job, and labor contractors oltcn
chcat thcir clicnts. Thc lamily paid part ol thc amount in cash and got
a loan lor thc rcst, and Puspa was ablc to pay cvcrything back within
ninc months. Altcr covcring his cxpcnscs, hc scnt homc s.,. in acc6.
uring thc Maoist uprising, many lamilics in Ncpal scnt thcir sons
ovcrscas to gct thcm out ol harms way. Many rural lamilics in Ncpal
rcccivc rcmittanccs lrom lamily mcmbcrs ovcrscas in carlicr days,
thcsc wcrc lrom Gurkha soldicrs scrving in thc 8ritish army, and
nowadays thcy arc lrom contract jobs in thc Middlc ast.
How Lhc Thapa Family InvcsLs ILs Ncw Incomc
As soon as Krishna 8ahadur Thapa and his lamily startcd to carn ncw
incomc, thcy invcstcd part ol it in cducation. Vhilc both ol 8ahadurs
wivcs arc illitcratc, both his sons complctcd high school, Puspas wilc
complctcd gradc scvcn, and cu 8ahadurs wilc complctcd gradc cight.
All ol Krishnas grandchildrcn will continuc to go to school as long as
thcy can and want to. !n acc6 thc lamily invcstcd s. in cducation.
Tablc . shows thc lamilys currcnt cducational status.
l coursc, thc lamilys dict has improvcd cnormously. !n acc6 thcy
spcnt s6 on lood and clothing. Thcy cat vcgctablcs with cvcry mcal,
which providcs vitamins, mincrals, and divcrsity, and lrom rclying al
most solcly on ricc and lcntils as thcir protcin sourcc, thcy now add
portions ol sh and mcat.
Two ycars ago, thc lamily built a brandncw, twostory housc ol
ccmcnt and stonc, at a cost ol sa,c. !n my astonishmcnt, ! bumpcd
my hcad whcn ! wcnt upstairs to scc and lm thc ncw ccmcnt ricc
storagc bin. Unlortunatcly, bccausc thc bin had no scalcd lid, rats wcrc
consuming .c pcrccnt ol thc ricc storcd thcrc.
Thc lamily can now aord to gct hcalth carc quickly il somcbody
lalls sick. Pcrhaps, altcr all, Krishna 8ahadur Thapas lilc had bccn
prolongcd by thc blood prcssurc mcdication hc was taking. Thcy spcnt
s.6, on mcdical scrviccs in acc6.
! know all this sounds a littlc bit too good to bc truc, and onc
might suspcct that ! chosc to tcll thc story ol an cxccptionally succcss
lul lamily altcr thc lact. 8ut ! didnt do that. ! pickcd Krishna 8ahadur
Thapa and his lamily to writc about whcn ! visitcd him vc ycars ago,
at a timc whcn hc was growing just a quartcr acrc ol vcgctablcs and
carning vc hundrcd dollars a ycar in ncw incomc. ! dccidcd to tcll his
story thcn, bccausc hc struck mc as an cntrcprcncur and an innovator,
and ! had a good lccling about him and his lamily. ! was shockcd by
thc ncws ol his dcath, and didnt know about how prospcrous his lam
ily had bccomc until ! visitcd thcm in carly acc,.
l coursc, most dollaraday larmcrs dont do as wcll as havc 8aha
dur and his lamily. 8ut most ol thcm can incrcasc thcir nct annual
incomc by at lcast vc hundrcd dollars by growing a quartcr acrc ol in
tcnscly cultivatcd oscason lruits and vcgctablcs. And virtually all ol
thc larmcrs ! havc intcrvicwcd invcst part ol thcir ncwly carncd wcalth
in improvcd cducation lor thcir childrcn, improvcd dict, improvcd
housing, and most ol all, in continuing to improvc thc incomc thcy
carn lrom larming.
Thcrc arc cc million dollaraday rural lamilics likc Krishna
8aha dur Thapas. Two hundrcd million or so ol thcsc lamilics arc
ocially classicd as landlcss but havc lunctional acccss to cnough land
Name Age Education Relation
Mrs. Padam Maya Magar 56 Illiterate 1st wife of K. B. Thapa
Mrs. Sumitra Maya Magar 48 Illiterate 2nd wife of K. B. Thapa
Mr. Deu Bahadur Thapa 30 SLC pass Elder son
Mrs. Devi Maya Magar 31 8th class pass Wife of Mr. Deu Bahadur
Mr. Puspa Bahadur Thapa 26 SLC pass Younger son
Mrs. Kali Thapa Magar 24 7th class pass Wife of Mr. Puspa
Master Lok Bahadur Thapa 8 3 class running Son of Mr. Deu Bahadur
Miss Saraswati Maya Magar 12 4 class running Daughter of
Mr. Deu Bahadur
Miss Ohm Maya Magar 10 4 class running Daughter of
Mr. Deu Bahadur
Miss Tara Maya Magar 2 months Infant Daughter of Mr. Puspa
Table 13: Thapa Family Information, September 2006
:o
OuL o PovcrLy
:
to carn lty to onc hundrcd dollars a ycar in ncw nct incomc by grow
ing highvaluc cash crops. Six hundrcd million ol thcm havc acccss to
at lcast a quartcr acrc ol land, cnough to incrcasc thcir nct annual in
comc by vc hundrcd dollars or morc, just as Krishna 8ahadurs lamily
did. Anothcr cc million or morc dollaraday pcoplc livc in urban
slums or on sidcwalks. Likc thcir rural brothcrs, thcy havc grcat op
portunitics to incrcasc thcir incomc by taking advantagc ol thcir low
cost labor to producc highvaluc, laborintcnsivc products and dclivcr
thcm through ncw markct mcchanisms to morc prospcrous customcrs.
l coursc, many pcoplc tcll mc that il so many poor larmcrs grow
oscason lruits and vcgctablcs, thcy will quickly ood thc markct. !
hcard this prcdiction lor twcnty ycars in 8angladcsh, and cvcn altcr wc
sold .. million trcadlc pumps and put scvcn hundrcd lty thousand
acrcs undcr irrigation, thc markct wasnt oodcd, othcr than thc nor
mal uctuations cxpcricnccd in cvcry markct. cmand lor crops and
vcgctablcs cxpands rapidly in most dcvcloping countrics as incomcs
incrcasc, and thc lact is that smallacrcagc larmcrs dont havc to corncr
thc markct to thrivcthcy just havc to bc ablc to havc a comparativc
advantagc with largcracrcagc larmcrs that cnablcs smallplot larmcrs
to scll cvcn whcn largc larms compctc with thcm.
! havc known scvcral dollaraday lamilics that arc just as succcsslul
as Krishna 8ahadur Thapa. nc lamily ! mct in Himachal Pradcsh,
twoandahall hours by road and anothcr thrccandahall hours by
train lrom clhi, startcd growing a varicty ol owcrs lor thc clhi
markct. Fascinatcd by what thcy wcrc doing, ! lclt my card. ! got an
cmail thrcc ycars latcr, scnt lrom thc lamilys computcr, asking how !
was doing. Thc busincss had grown rapidly. Flowcrs wcrc dclivcrcd to
thc railroad by truck in thc middlc ol thc night whcn rclrigcration
wasnt rcquircd, and sold in thc clhi owcr markct at vc a.m.
8ut cvcn il Krishna 8ahadur and his lamily arc thc only lamily that
movcd in thc spacc ol scvcral ycars lrom barcly having cnough to cat
to carning lour thousand dollars a ycar and rapidly bccoming cvcn
morc prospcrous, why isnt thc cxamplc ol onc lamily cnough to bring
hopc to thc othcrs: !l Krishna 8ahadurs lamily can movc out ol
povcrty, cducatc thcir childrcn, and improvc thcir dict, hcalth, and
housing along thc way, thcn, givcn thc opportunity, many ol thc
..a billion dollaraday pcoplc in thc world can do thc samc thing.
:
Nof=s
cntr1cr
.. http://thinkprogrcss.org/acc/c/c./lcmadircctorwcdidnotknowncw
orlcansconvcntionccntcrwasahurricancshcltcr.
cntr1cr :
a. Villiam astcrly, Vas cvclopmcnt Assistancc a Mistakc: The American Eco-
nomic Review \ol. ,, No. a (May acc,).
. Villiam astcrly, The White Mans Burden: Why the Wests Eorts to Aid the Rest
Have Done So Much Ill and So Little Good (Ncw York: Pcnguin Prcss, acc6).
. astcrly, Vas cvclopmcnt Assistancc a Mistakc:
. astcrly, Vas cvclopmcnt Assistancc a Mistakc:
6. http://ncws.bbc.co.uk/a/hi/scicncc/naturc/,.stm.
,. Unitcd Nations cpartmcnt ol conomic and Social Aairs (UNSA),
Millcnnium cvclopmcnt Goals Rcport acc6. http://mdgs.un.org/unsd/mdg/
Rcsourccs/Static/Products/Progrcssacc6/MGRcportacc6.pdl.
. UNSA, Millcnnium cvclopmcnt Goals Rcport acc6.
. Thc gurcs in this tablc havc bccn corrcctcd lor ination.
.c. UNSA, Millcnnium cvclopmcnt Goals Rcport acc6.
... UNSA, Millcnnium cvclopmcnt Goals Rcport acc6.
.a. Food and Agriculturc rganization ol thc Unitcd Nations, Thc Statc ol Food !n
sccurity in thc Vorld acc, p. . www.lao.org/docrcp/cc,/y6cc/y6cccc.htm.
.. UNSA, Millcnnium cvclopmcnt Goals Rcport acc6.
.6. C.K. Prahalad, The Fortune at the Bottom of the Pyramid (Uppcr Saddlc Rivcr, N. J.:
Vharton School Publishing, acc).
.,. Prahalad, The Fortune at the Bottom of the Pyramid.
cntr1cr
.. Paul Hunt, Manlrcd Nowak, and Siddiq smani, Human Rights and Poverty
Reduction: A Conceptual Framework (Ncw York and Gcncva: UN, acc), p. .6.
cntr1cr
.. CoopcrHcwitt xhibit Catalog, Design for the Other (Ncw York: Coopcr
Hcwitt National csign Muscum, acc,).
:
OuL o PovcrLy
ac. Mcdia covcragc has includcd The New York Times, Wall Street Journal, International
Herald Tribune, and Visconsin National Public Radio stations.
a.. !ncorporatcd in Colorado in acc,, Rcv is in thc proccss ol launching thrcc in
tcrnational busincsscs scrving poor customcrs whilc it supports thc dcsign rcvolu
tion dcscribcd in this book.
cntr1cr
aa. Hungcr Rcport acc, A Convcrsation with r. Norman 8orlaug on thc Past,
Prcscnt, and Futurc ol Hungcr in thc cvcloping Vorld, Filtccnth Annual
Rcport on thc Statc ol Vorld Hungcr, p. a,. http://www.brcad.org/lcarn/
hungcr rcports/hungcrrcportpdls/hungcrrcportacc/Chaptcr..pdl.
cntr1cr 6
a. Paul Polak, Thc csign Proccss lor thc ! LowCost rip!rrigation Systcm,
in Povcrty Allcviation as a 8usincss. Thc Markct Crcation Approach to cvclop
mcnt, by Urs Hcicrli and Paul Polak, Swiss Agcncy lor cvclopmcnt and Coop
cration (May accc), pp. .cc.
a. Sandra Postcl, Paul Polak, Fcrnando Gonzalcs, and Jack Kcllcr, rip !rrigation
lor Small Farmcrs: A Ncw !nitiativc to Allcviatc Hungcr and Povcrty, Water
International \ol. a6, No. . (March acc.), pp. ..
a. G.A. Cornish and P. Lawrcncc, Informal Irrigation in Periurban Areas: A Summary
of Findings and Recommendations (Unitcd Kingdom: H.R. Vallinglord, acc.).
a6. Rob Gallaghcr, The Rickshaws of Bangladesh (haka Univcrsity Prcss, .a).
cntr1cr ,
a,. ksana Nagaycts, Small Farms: Currcnt Status and Kcy Trcnds, Futurc ol Small
Farms Rcscarch Vorkshop (hcld by !ntcrnational Food Policy Rcscarch !nstitutc/
acac \ision !nitiativc, thc vcrscas cvclopmcnt !nstitutc, and !mpcrial Collcgc,
London), Vyc Collcgc, Unitcd Kingdom, Junc a6a, acc. Vashington, .C.:
!ntcrnational Food Policy Rcscarch !nstitutc (!FPR!). Tablcs . in Thc Futurc ol
Small Farms rcproduccd with pcrmission lrom thc !ntcrnational Food Policy
Rcscarch !nstitutc, www.ilpri.org. Thc workshop procccdings lrom which thcsc
tablcs comc can bc lound onlinc at www.ilpri.org/cvcnts/scminars/acc/
smalllarms/slproc/slproc.pdl.
a. Nagaycts, Tablc ., Small Farms: Currcnt Status and Kcy Trcnds. Rcproduccd
with pcrmission ol !FPR!.
a. Nagaycts, Tablc a, Small Farms: Currcnt Status and Kcy Trcnds. Rcproduccd
c. Nagaycts, Tablc , Small Farms: Currcnt Status and Kcy Trcnds. Rcproduccd
.. Nagaycts, Tablc , Small Farms: Currcnt Status and Kcy Trcnds. Rcproduccd
:
NoLcs
a. Nagaycts, Tablc , Small Farms: Currcnt Status and Kcy Trcnds. Rcproduccd
. Nagaycts, Small Farms: Currcnt Status and Kcy Trcnds. Rcproduccd with pcr
mission ol !FPR!.
. Rcgassa, . Namara, Parakrama Vcligamagc, and Randolph 8arkcr, Prospects for
Adopting System of Rice Intensication in Sri Lanka: A Socioeconomic Assessment
(Colombo, Sri Lanka: !ntcrnational Vatcr Managcmcnt !nstitutc, acca).
http://www.iwmi.cgiar.org/pubs/pubc,/Rcport,.pdl.
. Norman Upho, Thc Systcm ol Ricc !ntcnsication: Using Altcrnativc Cultural
Practiccs to !ncrcasc Ricc Production and Protability lrom xisting Yicld Potcn
tials, !ntcrnational Ricc Commission Ncwslcttcr, No. , Food and Agriculturc
rganization (Romc: acc,).
6. http://www.iwmi.cgiar.org/livclihoods/indcx.htm.
,. Thc Futurc ol Small Farms: Procccdings ol a Rcscarch Vorkshop, Vyc Collcgc,
Unitcd Kingdom, Junc a6a, acc. Vashington, .C.: !FPR!.
. J.R. 8urlcigh, L.L. 8lack, Lun G. Matco, ct al., Pcrlormancc ol Graltcd Tomato
in Ccntral Luzon, Philippincs: A Casc Study ol thc !ntroduction ol a Ncw Tcch
nology Among Rcsourcclimitcd Farmcrs, Plant Managcmcnt Nctwork, July .,
acc. http://www.plantmanagcmcntnctwork.org/pub/cm/managcmcnt/acc/
tomato.
cntr1cr 8
. Thc ncrgy Foundation, 8cllagio Mcmorandum on Motor \chiclc Policy (8cllagio,
!taly: acc.).
c. Paul Polak, How ! !nstallcd .. Million Trcadlc Pumps in 8angladcsh by
Activating thc Privatc Scctor, in Povcrty Allcviation as a 8usincss. Thc Markct
Crcation Approach to cvclopmcnt, by Urs Hcicrli and Paul Polak, Swiss
Agcncy lor cvclopmcnt and Coopcration (May accc), pp. .c..c.
.. www.tcchnoscrvc.org/alrica/ghanapincapplc.html.
a. www.tcchnoscrvc.org/alrica/ghanapincapplc.html.
. www.adaptivccyccarc.com/tcchnology.html.
. www.ncwcycslorthcnccdy.org/vision/laqs.html.
. Graham Macmillan, pcrsonal communication, January acc,.
cntr1cr
6. Kalpana Sharma, Rediscovering Dharavi: Stories from Asias Largest Slum (!ndia:
Pcnguin 8ooks !ndia, accc), pp. ,,.
,. http://www.communityplanning.nct/makingplanningwork/
mpwcascstudics/mpwCSc.htm.
. Pictro Garau, lliot Sclar, and Gabriclla Carolini, A Home in the City: Improving
the Lives of Slum Dwellers (London: arthscan, acc), p. ...
. Sharma, Rediscovering Dharavi: Stories from Asias Largest Slum, pp. ,,.
:6
OuL o PovcrLy
c. UNHA8!TAT Publication. http://www.un.org/Pubs/chroniclc/acc6/issuca/
cac6pa.htm.
.. UNHA8!TAT Publication. http://www.un.org/Pubs/chroniclc/acc/issuc/
ccp..asp.
a. Unitcd Nations Scttlcmcnt Program, The Challenge of Slums. Global Report on
Human Settlements (Ncw York: UN Publications, acc), pp. .c.c.
http://www.unhabitat.org/pmss/gctPagc.asp:pagc-book\icw&book-..6.
. Garau, Sclar, and Carolini, A Home in the City.
. http://ncws.bbc.co.uk/./sharcd/spl/hi/world/c6/dharavi_slum/html/
dharavi_slum_.stm.
. Stcvc Haggbladc, J. 8oomgard, S. avics, and . Mcad, Subscctor Analysis: !ts
Naturc, Conduct, and Potcntial istribution to Small ntcrprisc cvclopmcnt,
cpartmcnt ol conomics, Michigan Statc Univcrsity. http://idcas.rcpcc.org/p/
msu/idpwrk/ca6.html.
6. Marina Samul, Favcla lashion brings pridc and jobs to 8razilian slum, Brazzil
Magazine (August a, acc6). http://www.brazzil.com/
indcx.php:option-com_contcnt&task-vidco&id-66&!tcmid-,.
cntr1cr o
,. L. Srolc, T.S. Langncr, ct al., Mental Health in the Metropolis, The Midtown Man-
hattan Study (Ncw York Univcrsity Prcss, July .,).
. T.H. Holmcs, and R.H. Rahc, Thc Social Rcadjustmcnt Rating Scalc, Journal of
Psychosomatic Research, \ol. .. (.6,), pp. a.a..
. Swiss cvclopmcnt Coopcration (SC) rcport on ! handpump initiativc in
\ictnam, 8crnc, acca.
6c. Paul Polak, ccpak Adhikari, 8ob Nancs, an Saltcr, and Sudarshan Suryawan
shi, Translorming Rural Vatcr Acccss !nto Protablc 8usincss pportunitics, in
8cyond omcstic: Casc Studics on Povcrty and Productivc Uscs ol Vatcr at thc
Houschold Lcvcl, by Patrick Moriarty ct al., !RC !ntcrnational Vatcr and Sani
tation Ccntrc (cllt, thc Ncthcrlands: acc), pp. ..,a.
cntr1cr
6.. http://www.occd.org/documcnt/c/c,ac,cn_a6_,_6._._._._.,cc
.html.
6a. http://www.timc.com/timc/magazinc/articlc/c,.,.,aa,,cc.html.
6. Surcsh Kumar, Forcword to Roadmap for the Emerging Markets (Unitcd Kingdom:
Nicholas Hall & Company: Novcmbcr ., acc), pp. ivii.
6. Surcsh Kumar, Benchmarking for OTC (Unitcd Kingdom: Nicholas Hall & Com
pany: July acc), pp. .6.,c.
:,
=so0c=s
CoopcrHcwitt xhibit Catalog. Design for the Other . Ncw York: CoopcrHcwitt
National csign Muscum, acc,.
astcrly, Villiam. Vas cvclopmcnt Assistancc a Mistakc: The American Economic
Review (May acc,): \ol. ,, No. a.
www.nyu.cdu/las/institutc/dri/astcrly/Filc/
Vas_cvclopmcnt_Assistancc_a_Mistakc.pdl.
astcrly, Villiam. The White Mans Burden: Why the Wests Eorts to Aid the Rest Have
Done So Much Ill and So Little Good. Ncw York: Pcnguin Prcss, acc6.
Hcicrli, Urs, and Paul Polak. Povcrty Allcviation as a 8usincss. Thc Markct Crcation
Approach to cvclopmcnt. Swiss Agcncy lor cvclopmcnt and Coopcration
(May accc).
Nagaycts, ksana. Small Farms: Currcnt Status and Kcy Trcnds. Futurc ol Small
Farms Rcscarch Vorkshop (!ntcrnational Food Policy Rcscarch !nstitutc), Vyc
Collcgc, Unitcd Kingdom, Junc a6a, acc.
www.ilpri.org/cvcnts/scminars/acc/smalllarms/slproc/Appcndix_!nlormation8ricl
.pdl.
Polak, Paul. Thc 8ig Potcntial ol Small Farms. Scientic American spccial issuc
(Scptcmbcr acc): Crossroads lor Planct arth.
Postcl, Sandra. Pillar of Sand: Can the Irrigation Miracle Last? Ncw York: V.V. Norton
and Co., ..
Postcl, Sandra, Paul Polak, Fcrnando Gonzalcs, and Jack Kcllcr. rip !rrigation lor
Small Farmcrs: A Ncw !nitiativc to Allcviatc Hungcr and Povcrty. Water Interna-
tional (March acc.): \ol. a6, No. ..
Schumachcr, .F. Small Is Beautiful: Economics as if People Mattered. Ncw York: Harpcr
& Row, .,.
Unitcd Nations cpartmcnt ol conomic and Social Aairs. Millcnnium cvclop
mcnt Goals Rcport acc6. UN Statistics ivision ( Junc acc6).
http://mdgs.un.org/unsd/mdg.
tcxNov:=ucr=Nfs
!vc spcnt so much timc on thc road lor thc past twcntyvc ycars, its a wondcr that
my wilc, Aggic, didnt lcavc mc ycars ago. !nstcad, shc supports my work and wc lovc
cach othcr. My daughtcrs, Amy, Kathryn, and Laura, havc thcir own livcs now, but
whcn thcy wcrc tccnagcrs, thcy playcd thc thcmc song lrom Man of La Mancha whcn
cvcr ! rcturncd lrom a trip tircd and discouragcd. Thcy sharc my drcam lor cnding
povcrty, and givc mc somc ol my kccpongoing cncrgy.
Vriting a book is hard work. ! was going to say very hard work, but ! hcard a voicc
in my hcad admonishing mc to cross out thc word very. !t wcakcns what you arc try
ing to say, thc voicc said. !t was my lricnd Frcd Platt, a cnvcr physician and author,
who thoroughly cditcd cvcry dralt ol this book, and whosc cditorial voicc has bccomc
indclibly cmbcddcd in my brain.
Stcvc Picrsanti is a uniqucly talcntcd cditor, and his suggcstions gavc shapc and
locus to thc manuscript. Thc spiritcd discussions ! had with my lilclong lricnd Arnold
Ludwig during long walks along thc Rhodc !sland scashorc hclpcd mc rclormulatc
and clarily my conccpts. 8himscn Gurung, who workcd lor twcnty ycars in Ncpals
agriculturc cxtcnsion systcm and plays a major lcadcrship rolc in ! Ncpal. Hc
joincd mc in intcrvicws with Krishna 8ahadur Thapa and his lamily, and Mr. Gurungs
lovc ol rural pcoplc and his good humor brought cncrgy to our convcrsations. Thanks
also go to Mr. Ashok 8aral, assistant cnginccr, ! Ncpal, onc ol !s many rc
markablc cld sta mcmbcrs, who collcctcd dctailcd inlormation about 8ahadurs larm.
Many ol thc things ! havc lcarncd about povcrty comc dircctly lrom thc commit
mcnt and continucd lcarning ol !s scvcral hundrcd sta mcmbcrs opcrating in
rural villagcs. Gcrry yck was !s rst cld sta mcmbcr. Hc was twcntysix and
lrcsh out ol collcgc whcn ! mct him lor thc rst timc in Torontos Malton airport on
thc way to Somalia. Gcrry had donc vcry wcll with a summcr busincss that introduccd
thc usc ol hydraulic lilts to paint grain silos, and now hc wantcd to do somcthing to
makc a dicrcncc in thc world. Hc had hcard lrom Art cFchr, a busincssman who
was a rolc modcl lor many young pcoplc, that ! was going to Somalia to do somcthing
usclul in rclugcc camps, so Gcrry got on thc planc on his own nickcl. ! spcnt lour months
with him in Somalia gctting thc donkcy cart projcct startcd, and thcn hc took ovcr
and did a grcat job. Now hc runs a succcsslul carpct import busincss in Canada and
thc Unitcd Statcs.
Most ol thc pcoplc who comc to work lor ! havc a story much likc Gcrry ycks.
Thcy scc in ! a vchiclc lor thcm to accomplish thcir drcams. ! havc dcscribcd what
! lcarncd lrom Gcrrys work in thc donkcy cart projcct in scvcral placcs in this book.
Much ol what ! havc writtcn about is dcrivcd lrom programs implcmcntcd by hun
drcds ol rcmarkablc ! sta mcmbcrs ovcr thc past twcntyvc ycars. ! will mcntion
just a lcw and lct thcm spcak lor thc rcst. ccpak Adhikari is a Ncpali cnginccr who
invcstcd his crcativity in thc dcsign ol thc Ncpal lowcost drip systcm, as wcll as in a
varicty ol watcrstoragc dcviccs. Abdus Sobhan got his cnginccring dcgrcc in haka
and workcd lor ! lor ltccn ycars. Hc knows morc about trcadlc pumps, and how
:8
:
AcknowlcdgmcnLs
to dcsign and build and x thcm, than anybody ! havc mct. As ! country dircctor
in 8angladcsh, 8ob Nancs was a major architcct ol bringing national trcadlc pump
salcs lrom thirty thousand to onc hundrcd twcntyvc thousand a ycar, crcating ncw
modcls lor rural markcting. Thcn 8ob managcd thc Ncpal program lor twclvc ycars as
it introduccd innovations such as thc villagc collcction ccntcrs ! dcscribc in Out of
Poverty, whcrc scvcnty or so larm lamilics bring thcir vcgctablcs to bc sold by a com
missioncd salcs agcnt.
Jim and cbbic Taylor and thcir dcdicatcd sta havc accomplishcd miraclcs by
markcting trcadlc pumps and aordablc irrigation in Myanmar. Amitabha Sadangi
has brought hundrcds ol thousands ol smallplot larmcrs out ol povcrty with aord
ablc irrigation and acccss to markcts, as wcll as initiating thc ! program in !ndia,
now an autonomous organization. Nguycn \an Quang and his tcam havc crcatcd
modcls lor thc unsubsidizcd markcting ol latrincs to poor customcrs in \ictnam, and
Mikc Robcrts and his tcam havc donc thc samc thing lor scvcndollar ccramic watcr
ltcrs in Cambodia. Xaopcng Luo, an cconomist who was onc ol thc lcadcrs ol dccol
lcctivization in China and whosc lamily livcd through thc Mao cra, taught mc morc
about Chincsc history and culturc during our long ovcrnight trips by rail to provinccs
in thc Ycllow Rivcr 8asin than ! could havc cvcr lcarncd lrom a book. Fritz Kramcr at
thc ! hcad occ is thc kcy lcadcr lor thc cvolution ol thc PR!SM modcl that plays
a catalytic rolc in thc proccss ol connccting larmcrs with markcts. 8ob Yodcr and
Zcnia Tata havc hclpcd lormulatc many ol thc conccpts in this book. 8oard mcmbcrs
such as 8ill Fast, Al ocrkscn, and Art and Frank cFchr in Canada, Paul Mycrs,
Michacl dcscss, and Mohan Uttarwar in thc Unitcd Statcs, and Michacl Lipton and
Linda Maclcod 8rown in thc Unitcd Kingdom havc donc much to crcatc and main
tain thc ! modcl dcscribcd in this book.
Jack Kcllcr is a world authority on irrigation and an ! board mcmbcr. Jack
brought thc ! lowcost dripirrigation systcm to thc world markctrcady point,
working closcly with ! !ndia and J.N. Rai. Altcr dcning thc world standards lor
convcntional drip irrigation, hc rccantcd and crcatcd a ncw sct ol standards lor small
larms. Jack has madc aordablc smalllarm irrigation visiblc and crcdiblc to thc world
irrigation community. 8ob Havcncr, also an ! board mcmbcr and now dcccascd,
brought smalllarm agriculturc to thc agriculturc lcadcrs in thc world. Michacl Lipton
has providcd critical input on rural povcrty. Sandra Postcl is a longtimc lricnd who cd
ucatcd mc about watcr and thc cnvironmcnt, and \crn Ruttan has always providcd in
valuablc guidancc in agriculturc cconomics, along with my 8ouldcr lricnd Vyn wcn.
!n acc, ! mct lour pcoplc who changcd lorcvcr my thinking about dcsign. ! mct
Michacl and Karin Cronan ol Cronan csign, Ann Villoughby lrom Villoughby
csign Group, and Chcryl Hcllcr ol Hcllcr Communications at thc Aspcn csign
Summit. Vc wcnt lrom thcrc to a twoday brainstorming scssion in Nova Scotia, and
thc brainstorming has ncvcr stoppcd. !t hclpcd crcatc, along with 8arbara 8locmink,
thc Coopcr Hcwitt cxhibit csign lor thc thcr c, and hclpcd mc drill down to
thc csscncc ol what ! and ! havc lcarncd ovcr thc past a ycars, much ol which is
distillcd in thc pagcs ol this book
! havc collaboratcd lor many ycars with Urs Hcicrli, who providcd innovativc
lcadcrship lor !s work with smallacrcagc larmcrs as thc coordinator lor Swiss
cvclopmcnt Coopcration in 8angladcsh and latcr in !ndia, and wc havc collaboratcd
on many povcrty initiativcs and conccpts lor thc past twcnty ycars. SC providcd
::o
OuL o PovcrLy
activc donor lcadcrship on thc intcraction bctwccn smallholdcr irrigation and thc cn
vironmcnt. Karin Rolcols, lrom thc utch lorcign ministry, has bccn an important
lricnd and advisor, and thc lorcign ministry has providcd important support lor !s
work, as has thc Lcmclson Foundation and my lricnds Philip and onna 8crbcr lrom
Glimmcr ol Hopc Foundation. ! havc grcat admiration lor thc 8ill and Mclinda Gatcs
Foundation, which also supports !s work. ! likc vcry much its willingncss to con
sidcr ncw solutions to old problcms and its insistcncc on mcasurablc impacts and scal
ability lor cvcry viablc projcct.
Most ol all, ! hopc Out of Poverty givcs voicc to thousands ol stubborn dollaraday
larmcrs likc Krishna 8ahadur Thapa, his son cu, and thc othcr mcmbcrs ol his lam
ily. Thcir story inspircs mc, and ! hopc to pass on somc ol that inspiration to you.
actions lor cnding povcrty. See also luturc
conccrns
by dcsigncrs, .,.
by dcvclopmcnt organizations,
..,
by donors, .6.
by multinationals, ...
obvious actions, , .ac
by poor pcoplc, ..6
practical, .
by rcscarch institutions, .
SmallFarm Prospcrity Nctwork,
..
by univcrsitics, ...a
Adhikari, ccpak, a,, a
aordability
aordablc dripirrigation systcms,
csign lor xtrcmc Aordability,

.a, .,.
dripirrigation systcms, ,6,,
locus on, ,6
horsc aordability analogy, 666,
incomc lcvcls, 6
ol irrigation mcthods, ..a..
miniaturization and, 666,
quality vcrsus, ,
tradcos, ,,
Agricultural cvclopmcnt 8ank ol
Ncpal (A8N), ,
agriculturc
cccts ol incomc lcvcl on, 6c
Food and Agriculturc rganization
(FA), .ca
grccn rcvolutions ccct on,
innovation in, .a.a
nccdcd translormations, .c
small larms and modcrn, .a..a
agroclimatic zoncs, .a, ..
A! Chiki, .6c
Amadci, 8crnard, 6
aquilcrs, .c, ...
Asian \cgctablc Rcscarch and
cvclopmcnt Ccntcr (A\RC),
.a, ..
Aswan am, 6,6. See also Nawsa Mad
systcm
8achi, Nadia Rubio, .6
8angladcsh
lcrtilizcr usc by small larmcrs, ..6
intcllcctual propcrty protcction, .
rickshaws, .ca
tomato crop tcchniqucs, ..
trcadlc pump usc, .c
tubc wclls,
8angladcsh Agriculturc Rcscarch Ccntcr
(8ARC), ..
8arncs, Gunnar, .c, .c
8hagwan Mahavccr \iklang Sahayata
Samiti (8M\SS),
bicyclcs, 6c, .,.,
8ill and Mclinda Gatcs Foundation, aa,
., .
biodivcrsity, .,, .,.,
8orda, Lccia, .6,
8orlaug, Norman, 6
8razil, , .6
8razil nut industry, ., .
8rown, Michacl, ..
8urcau ol !ndian Aairs (8!A), ..
busincss principlcs, , .
Cambodia, .a6.a,, .
carbon cmissions, .,a.,, .,.,
carbon lootprint, .,, .c..
Casas 8ahia, ,
causcs ol/rcasons lor povcrty, .c, ac, .,.
Ccmcx, ,
Ccntcr lor Crcating Ncw Markcts that
Scrvc Poor Customcrs, .
Ccntcr lor Crcating Ncw Prospcrity lor
thc Landlcss, ..
Ccntcr lor !nnovation in MultiplcUsc
Systcms, .
::
:Nu=x
Chambcrlain, Ncvillc,
Chapakot Tar projcct, .
Chhon, Prun, .a6.a,
climatc changc, .,a.,
cocc industry, .c..
Comar, Paul, .6,
Consultativc Group on !ntcrnational
Agricultural Rcscarch (CG!AR),
.c, .
Cornish, Gcz, .c..ca
cost/pricc targcts, aa, ,, .,, .a
crcating markcts. See markct crcation
crcdit acccss, ,,, ., ., .6
crops
asscssing valuc ol local, ..
cash, .a, .
choosing, .c, , ...a
crop rotation, ..6..,, .c, .
cucumbcrs, ....6
dcmand lor, a..
idcntilying highvaluc, .a.c
incrcasing yicld,
intcgratcd pcst managcmcnt (!PM),
.
ricc,
subsistcncc vcrsus highvaluc, ..,
customcrs, ,, .,., ..6, .6
dairy industry, 6, ..
dams, .c,.c
dcsign issucs
aordablc dripirrigation systcms,
building blocks lor dcsigning chcap,

,,,
complications ol, 66
csign lor xtrcmc Aordability,
.a, .,.
dcsigning chcap, ,,
dcsigning to cost/pricc targcts, aa
ont bothcr trilogy, ,
ccctivc dcsign modcls, .
cxpandability, 6,
nding thc moncy, c.
miniaturization and aordability,
666,
Nawsa Mad systcm, 6,
nccd lor rcvolutions in, 6
onchundrcddollar houscs, ,,
pricccutting mcthods, ,c
rcvolutions in, ,,, .,
dcvcloping countrics, povcrty lcvcls in,
.a
dcvclopmcnt organizations, .6, ..,
cvclopmcnt Program (UN), .6.,
haravi slum, .6c, .6a
dicscl pumps, ,c, .c, .c6.c,
dict, , aca.c
distillation units, ,a, .
distribution ol watcr, ...... See also
pump systcms (watcr), watcr
managcmcnt
dollaraday larmcrs, .6, .6,.6, .6
dollaraday povcrty, ac, a, ., , 6,
...a., .
donating pcoplc out ol povcrty myth,
c
donkcy cart projcct, ., a., , 6, .,
ont bothcr trilogy, ,
Rcv: csign lor thc thcr Nincty
Pcrccnt, ..
drinking watcr, , , .,.,6, .
drip irrigation
aordablc systcms, ,6,,
control ol watcr sourccs, 6
cutting pricc ol, ,.ca
dcscription, 6
low cost, .....a
markct dcmand lor, 6
Nctam, ,
priccs ol, ,c,.
salcs ol, aaa, aa, .c
Thailand, 6
usc ol, ac
astcrly, Villiam, c
cChoupal,
CM/Ncstl, ..
cducation/training
acccss to, .,.,
agronomy, ..
lcrtilizcr practicc, .
cldbascd, a
luturc conccrns, .,.,, .,,
OuL o PovcrLy
:::
importancc ol, a, 6
markcting skills, ..
lor slum pottcrs, .6,
tcchniqucs lor landlcss larmcrs, .a
wcll drilling, .
clcctricity acccss, 6c, ,, .c, .,.
cnding povcrty. See actions lor cnding
povcrty
cncrgy issucs, 6c, ,c, .,, .,..
cntrcprcncurs, ., ..c, ..6,
..
cradication ol povcrty myths. See actions
lor cnding povcrty, povcrty
cradication myths
rshad, Hossain Mohammad, , 6
csscntial oils production, 6, ,a, .
cyc carc. See under hcalth issucs
lamily consumption, .c6, .a6.a,, .a, ac
Fcdcral mcrgcncy Managcmcnt
Agcncy (FMA), ..
lcrtilizcrs, .a6, .a, .a.
cld tcsting, ,, , ..c...
Food and Agriculturc rganization
(FA), .ca
Ford, Hcnry, a, 6,, c, .c..
Fortune at the Bottom of the Pyramid, The,
a
lunding lor dcvclopmcnt, .6, .,.
luturc conccrns. See also actions lor
cnding povcrty
challcngcs to thc planct, .,a.,
cncrgy, .,..
luturc markct dcmand analysis, ..
Futurc ol Small Farms conlcrcncc,
.c
hcalth issucs, .,6.,,
housing, .,
smalllarm prospcrity, .,.,
transport, .,,.,
watcr and sanitation, .,.,6
what you can do, ..
gasicrs, ,a, .c
Gatcs, 8ill, .a. See also 8ill and Mclinda
Gatcs Foundation
Ghana, .ca, ..6
givcaway programs, ,
Glcason, Maryannc,
Global Govcrnancc !nitiativc, .
global warming, .,.,
Gramccn 8ank, , ., .
grassroots cntcrpriscs, ,, a, .6a,
.6, ac,ac
grccnhouscs, .., ..
grccn rcvolution, , .a, .a,.a, .
gross domcstic product (GP), c, .
ground watcr, .c.c,, .c, ...
group collcction initiativcs, .
Guatcmala, .,.
Gujarat Coopcrativc Milk Markcting
Fcdcration (GCMMF), 6
hcalth issucs
cyc carc, , ,, .6.,
cycglasscs, ., ,, .6.,
luturc conccrns, .,.,, .,6.,,
improvcd acccss to hcalth carc, ac
inability to work duc to, a
lack ol hcalth carc,
malaria, a, ,
pandcmics, .,
pharmaccutical multinationals
actions, ...
Scojo Foundation, .6.,
Hclvctas, a, 6
highvaluc crops, ..,, .a.c, ...a
Hindustan Lcvcr,
H!\/A!S, a
homclcssncss, , ..
houschold consumption, .c6, .a6.a,, .a,
ac
houscs/housing
luturc conccrns, .,
hundrcddollar houscs, ,,, .
improvcd, ac
incomc lcvcls, .,
initiativcs, .,
lowcost, .6
rcpairs to houscs, ,
human rights and povcrty,
human urinc as lcrtilizcr, .
hundrcddollar houscs, ,,, .
hungcr, , .a,, ., ..
Hunt, Paul,
Indcx
::
!C!C! 8ank,
idcas, using othcrs, ac
impacts ol povcrty,
incomc lcvcls
aordability, 6
attitudcs toward raising, .6.6
China,
carning morc moncy, .a
cChoupal systcm lor clcvating,
housing and, .,
incomcgcncrating stratcgics, .c, .
incrcasing, , 6., .a, a.c
invcstmcnts according to, 6c
subsistcncc to ncw cash incomc, 6
Thapa lamilys, ac6
U.S. comparcd to world rural, 66
wagc ratcs, .
!ndia
haravi slum, .6c, .6a
grain cxportation,
growth ratcs and povcrty in, c
Gujarat Coopcrativc Milk Markcting
Fcdcration (GCMMF), 6
landlcssncss, ...a
outsourcing to,
pomcgranatc crop, ...a
smalllarm contributions, ..
watcr storagc systcms, 6,
inccicncy, ..., ., .
inlormal scctor cntcrpriscs, .6.6
initiativcs
lor dcsign rcvolution, ,,
Global Govcrnancc !nitiativc, .
group collcction, .
housing, .,
markcting, ..c
Millcnnium cvclopmcnt Goals,
c,
Multilatcral cbt Rclicl !nitiativc, c
promotion/markct, ..c
innovation, .a.a, .., .
!ntcgratcd Rural cvclopmcnt
Movcmcnt,
!ntcrnational cvclopmcnt ntcrpriscs
(!). See also trcadlc pumps
contributions ol, .
donkcy cart projcct, ., a., , 6,
.a, .,
impact ol, ac, ,
irrigation assistancc program, a,
monsoon tomato growth, ..
partncrships/supply chain crcation,
.6.c
projcctcd targct, a
pump irrigation acccss, ..
sprinklcr systcms, ,, ..a
start ol,
Systcm lor Ricc !ntcnsication (SR!),
.a,, .a.a
trcadlc pump program (See trcadlc
pumps)
urca granulcs, .a6
!ntcrnational Food Policy Rcscarch
!nstitutc (!FPR!), ..
!ntcrnational Labor rganization
(!L), a.
!ntcrnational Vatcr Managcmcnt
!nstitutc (!VM!), ..
invcsting in thc poor, , .6.,
invcstmcnt by thc poor
in agriculturc, 6c
by lamily prioritics, .,..,a
goals lor incrcasing,
by !, ,
livcstock, ac,ac
Thapa lamily, aca..
irrigation mcthods
attitudcs ol ocials toward, .c..ca
buckct carrying, , 6c, .c..ca, .a,
drip irrigation (See drip irrigation)
global irrigation industry, .c
Ncpal, 6
lor providing drinking watcr, .,6
rangc ol aordablc, ..a..
ricc plants, .a.a
smalllarm irrigation ccntcr, ..
smallplot, 6,
sprinklcr systcms, ,., ,6, ,, .....a
studics on, .c..ca
Thapa lamilys currcnt, acac
tools lor, ,c,.
trcadlc pumps, 6
OuL o PovcrLy
::
tubc wclls, , 6
watcr lilting, .c.c,
!sracl, ,, ,6, ., .
!TC,
Jain !rrigation, , .c
Jaipur loot organization,
Jobs, Stcvc, a, 6,, c, ..
Johnson, Robcrt Vood, .c
Johnson and Johnson, .
Kamalia, Janjibhai M., .6.66
Kathmandu, a,a
Katrina, Hurricanc, ..
Kciscr, Mikc, c
Kcllcr, Jack, 6, ,., ..a, .
Kclly, avid, .,
KickStart, , .c, .
labor ratcs, c., .a, .
Lakc Nasscr, .c,.c
landlcssncss, ...a, .., a.ca..
land usc prioritics, .a,
largcacrcagc larmcrs, ,
latrincs, , .,.,6
listcning to pcoplc with problcms, ..,,
, ..
livcstock, 6c, .c.., ac,ac
loans/crcdit acccss, ,,, ., ., .6
Macmillan, Graham, .,
markct crcation
adding valuc closc to thc larm, ..
Ccntcr lor Crcating Ncw Markcts
that Scrvc Poor Customcrs, .
crop choiccs, ...a
dircct sclling to customcrs, .,.
lor dollaraday smallacrcagc
larmcrs, .6
cntrcprcncurs and, ..c
cycglasscs, .6.,
ooding thc markct, a..
group collcction/quality control
stratcgics, .
nichc opportunitics, .c, ..
oscason vcgctablcs, acac,
oncacrc larm crops, ..
pincapplc crop, ..6
lor poor customcrs, ..6
smallcr/chcapcr product, ...a
transport barricr, .a
whcrc small larmcrs buy and scll,
..
workingman conccpt, .c..
markct inccicncy, .
markcting
ol drip irrigation in !ndia,
lood products, 6
oscason crops, .cc
pricc cyclcs, .c,
promotion initiativcs, ..c
thinking in tcrms ol, ,6
trcadlc pumps, .c
wholcsalc, a, .,.
markct opcration in dcvcloping
countrics, .a.
Marshall Plan,
Mbingwc, John,
Mcndcs, Chico, .
microdicscl pump scts, ,c, .c6.c,
Millcnnium cvclopmcnt Goals, c,
, .6.,, ..
Millcnnium Projcct Task Forcc on
!mproving thc Livcs ol Slum
wcllcrs (UN), .6.6
miniaturization, 666,, 66, ,6
misspcnding ol lunds, .,.
Mobutu, Joscph, .,.
monsoon scason, .a, .., .
Mozambiquc, .cc.c.
Mukula, Pctcr, 666,
Multilatcral cbt Rclicl !nitiativc, c
multinational corporations, .,
...
Myanmar, ..., .,, .,
myths. See povcrty cradication myths
Nagaycts, ksana, ..
Nairobi slum communitics, .6
Nancs, 8ob, a,a
Nasscr, Lakc, .c,.c
national cconomic growth, c.
National Slum wcllcrs Fcdcration, .6a
Navajo, ..
Indcx
::
Ncpal
Chapakot Tar projcct, .
cucumbcr crops, ....6
drinking watcr, .,6
!s programs in, a
irrigation systcms, aaa, 6
lack ol larming cducation, .
landlcssncss, ...a
lilc cxpcctancy in, ac
markct lor drip irrigation,
markcting in, .
monsoon tomato industry, .., .
pcsticidc usc, .
Ncstl, .c..
Nctam, ,, ., .
Nicaragua, .c6, ..
nongovcrnmcntal organizations
(NGs), .6
Norita, Akio, ..
Nowak, Manlrcd,
nutrition, , aca.c
oncacrc larms. See smallacrcagc larms
onchundrcddollar houscs, ,,, .
opportunitics, missing, .a
smani, Siddiq,
paprika industry, .
Patcll, Jim, .a, .,
paths out ol povcrty, , a
pavcmcnt dwcllcrs, .6.
pcrlumcs, a., .
pcst managcmcnt, .c, .
pharmaccutical multinationals, ..c
photovoltaic cncrgy, ,c
Pickar, Kcn, .,.
pincapplc crop, ..6
pipcdwatcr surlacc irrigation, ,.
planct and povcrty. See luturc conccrns
plans/planning, .., aa
Pokhara, aaa
Polak, Paul, ., ,
pomcgranatc crop, ...a
pond systcms, .c,..., .c..c
population growth ratc, .,a.,, .,.,
positivc approach, aa
potato industry, .
pottcry industry, .6.6,, .
povcrty cradication myths. See also
actions lor cnding povcrty
big busincsss rolc in cnding povcrty,
.
donating pcoplc out ol povcrty, c
inlormationsccking lor/ovcrvicw ol,
a,
national cconomic growth lor cnding
povcrty, c.
Prahalad, C.K., a,
pricccutting dcsign mcthods, ,c
pricc targcts, aa, , ,, .c
privatcscctor supply chains, .6.c, .,,
.6
problcm solving
applying solutions, .
avoiding rcinvcntion, ac
dcning problcms/goals, .6.,
dcsigning to cost/pricc targcts, aa
xing all problcms,
impacts ol approachcs, a.
lcarning lrom customcrs, aaa
lcarning problcms contcnt, .,
malaria,
miniaturization and aordability,
666,
sccing/doing thc obvious, .ac
staying positivc/avoiding distractions,
aa
talking/listcning to pcoplc with
problcms, ..,
thinking proccsscs lor, ..
thrccycar plans, aa
transport issucs, .a
visiting thc problcm placcs, ..
proccssing plants, ..
products, high vcrsus low quality, .
progrcss against povcrty, ratings ol, .
Proshika, .
prospcrity
cccts ol, ., .,.,
lor landlcss pcoplc, ..
ol smallholdcrs, .,
stcps to, .a
prototypcs, ,
pump systcms (watcr). See also irrigation
mcthods, trcadlc pumps
OuL o PovcrLy
::6
bullock pumps, aa
dicscl pumps, ,c, .c, .c6.c,
hand pumps,
ropcandwashcr pumps, ,c, .c.c6
storagc to cld systcms, 6,
watcrlilting mcthods, .c.c,
wind and solargcncratcd, ,c
quality control mcasurcs, .
rain watcr
collcction systcms, .a
dcpcndcncc on, .a,.a
harvcsting systcms, 6,
rainlall capturc, .cc, .c
Rangpur inajpur Rural Scrvicc
(RRS), 6, .c
Rccicla Jcans, .6
rcdundancy, ,,
rclugcc programs, .., , c
rcscarch
Asian \cgctablc Rcscarch and
cvclopmcnt Ccntcr (A\RC),
.c, ..
background ol small larms, ..
8angladcsh Agriculturc Rcscarch
Ccntcr (8ARC), ..
buckctcarrying irrigation, .c..ca
Consultativc Group on !ntcrnational
Agricultural Rcscarch (CG!AR),
.c, .
corrclation bctwccn povcrty and
illncss, .,
crop rotation and pcst managcmcnt,
.
locus ol, .a.
optimizing nct cash incomc, .c
on small larms, .a..a
rcvolutionary changc
in dcsign, .
in cducation, ...a
in irrigation mcthods, ..
in markcts, ...a, .,, .
ricc crops, , .a, .a6.a,, .a.a, ac.aca
risk lactors
dcsign standards, ,,
invcstmcnt risk, .a
lowrisk stratcgics, .a.a
ol thinking big, ..
usc ol grccn rcvolution sccds and
stratcgics, .a
Rivcrcc, Ron, .6,
ropcandwashcr pumps, ,c, .c.c6
rural markcts. See markct crcation
rural poor in Unitcd Statcs, ..
Sachs, Jcrcy, c, , a
salctybascd dccision making,
salcs valuc ol houscs, ,,
sanitation, , .,.,6
scalability, .
Scojo Foundation, .6.,
Scgrcgatcd Rural cvclopmcnt,
scllcstccm, a.
scllhclp groups (SHGs),
sicklcs, ,.,a
silk larming/silk rccling, ,a,
Silvcr, Joshua, .6.,
sizc ol larms, ...a.. See also small
acrcagc larms
slums/slum dwcllcrs
cmpowcring, .6
grassroots cntcrpriscs, .6a
incomc lcvcls, .6
living conditions, .6c
migration to, ., .6..6a, .6.6
National Slum wcllcrs Fcdcration,
.6a
numbcrs ol pcoplc living in, .6
pavcmcnt dwcllcrs, .6.
prioritics ol, .6
Samsuddins story, ..6c
urban, , 6c, , c, .
smallacrcagc larms
agricultural innovation on, .a.a
annual incomc, ,
cocc growcrs, .c
compctitivc advantagc ol, 6
crop rotation, .
cucumbcr crops, ....6
dcals lor dripirrigation systcms,
,
dcvclopmcnt ol ncw cash crops lor,
..
divcrsication ol crops, 6
Indcx
::,
cccts ol prospcrity ol, .,.,
as cntrcprcncurs,
lcrtilizcrs, .a.
highvaluc crops and landlcssncss,
...a
markct crcation lor, .6
markct crcation lor crops ol, ..
mcchanization lcvcls,
nccds ol, .c
ncw agriculturc dcsign lor, .a.a
ncw wcalth lor, .a.c
numbcrs ol, c, .ac, .aa, .a
organic larming, .a
pcst managcmcnt, .
rolc ol, ....
sizc ol, ...a., .aa
statistics on, ..
supplychain crcation lor, .6.c
tomato crops, ..
smalllarm irrigation ccntcr, ..
SmallFarm Prospcrity Agricultural
Ccntcr, .
SmallFarm Prospcrity Nctwork, ..
smallplot irrigation. See irrigation
mcthods
Smith, Amy, .,.
soap production industry, a.
socialist countrics, ccntral planning
lailurcs ol,
solar powcr, ,c, ,a, .c
Somalia, ., a., 6, c
SPARC, .6.
Sparc, an, ac
spcctaclcs. See cyc carc
sprinklcr systcms, ,., ,6, ,, .....a
Stanlord csign School, .a, .,
starvation, a,
stcam distillation units, ,a
storagc ol watcr. See watcr managcmcnt
stratcgics to cradicatc povcrty, lailurc ol,
studics. See rcscarch

subSaharan Alrica, ., .6.6, .,a
subsidy programs, ,, , ., .,
subsistcncc living, 6, .ca, ..,
succcsslul projccts, bcncting lrom, a.
supply chains, privatcscctor, .6.c,
.,, .6
surlacc irrigation systcms, ,.
sustainability, .
Sutton, Villic, c.
Swadhyaya Parivar, .c
Systcm lor Ricc !ntcnsication (SR!),
.a,, .a.a
Taiwan, ricc yiclds, .a
talking to pcoplc with problcms, ..,,
ac, ..
tanks lor watcr storagc, ..c...
Tata, Zcnia, .6.
Tata ncrgy Rcscarch !nstitutc, ,a, .,
tcchnology
adapting, ,c
brcakthrough, .
divisibility ol, ,6
cncrgy usc, .c
introducing, ac
mcchanical, ,6
pricc cutting dcsign mcthods, ,c
TcchnoScrvc, ..6
Thailand, dripirrigation systcms, 6
Thapa, Krishna 8ahadur, aa, .,
6,, .a, ,, .c, ....,
.,., .6c, .,., acaac
Thapa lamilys story, ac.a..
thinking proccsscs, ..
thrccycar plans, aa
tomato crops, ..
tools
cultivation, 6c
irrigation, ,c,.
laborsaving, 6
planting/harvcsting/proccssing, ,.,a
rcducing wcight ol, ,,
tircxing, 6
watcrlilting, .c
tradcos, ,,
training. See cducation/training
transport barricr, .a, .,,.,, .
trcadlc pumps
8angladcsh govcrnmcnt program,
6,, .c.c
lor cncrgy savings, .c
OuL o PovcrLy
::8
smallacrcagc larms (continued)
global salcs ol, .c6
improvcmcnts to, ,c
irrigation mcthods, 6
markcting, .c, .6
movic lcaturing, .c
pricc targcts, .c
salcs, 6, .6.c
supplychain crcation cxamplc, .6.c
Zambia program,
tubc wclls, , 6, .c.c. See also
trcadlc pumps
UN!CF, , ., .,6
Unilcvcr,
Unitcd Nations (UN)
cvclopmcnt Program (UNP),
.6.,
Millcnnium cvclopmcnt Goals,
c, .6.,, ..
Millcnnium Projcct Task Forcc on
!mproving thc Livcs ol Slum
wcllcrs, .6.6
publication on povcrty and human
rights,
Unitcd Nations High Commissioncr
lor Rclugccs (UNHCR),
Unitcd Statcs, ..
urban slums. See slums/slum dwcllcrs
urca, .a6, .a
US Ccnsus 8urcau statistics, numbcrs ol
poor, c
valuc. See highvaluc crops
valucaddcd proccssing, ..
vcnturc capital approach to crops, .., .,
\ictnam, , ..
visiting thc problcm placcs, ..
\oxiva,
wading pool systcms, ..c...
watcr as powcr/watcr lords, 6, 6,
watcr distribution. See irrigation mcthods
watcr managcmcnt. See also drip
irrigation, irrigation mcthods, pump
systcms (watcr)
acccss to watcr, .c
distribution ol watcr, .....
drinking watcr,
cvaporation, ..c
nccdcd amounts ol watcr, .a.a
storagc ol watcr, 6,, 6, .c., .c,
.c,...
watcr scarcity, , .c
wcalth crcation, .
wclls, , 6, 6, ,c, .. See also pump
systcms (watcr)
windgcncratcd watcr pumps, ,c
womcn, scllhclp groups (SHGs),
work scarcity, ,
Vorld 8ank
dclivcry ol dcvclopmcnt lunding
statistics, .6
history ol,
irrigation tubc wcll invcstmcnts,
subsidics lor irrigation systcms, ,
tubc wcll projcct, 6
Vorld conomic Forum, .
Vozniak, Stcvc, a, 6,, c, ..
Ycllow Rivcr 8asin (China), .c
Youth Foundation, acac
Zahn, Paula, ..
Zairc, .,.
Zambia, .
Indcx
::
:o
tso0f fH= t0fHo
! thought Amcrican watcr wizard Paul Polak was hallmad whcn !
was chasing him around thc Zambian countrysidc as hc tricd to bring
chcap irrigation systcms to small larmcrs, said National Geographic
writcr Fcn Montaignc altcr spcnding a wcck with Polak in Zambia.
8ut Polak is an admirablc charactcr, and it was good lun trailing
bchind this dynamo. n thc Kcluc Rivcr hc brought his road show to
an impovcrishcd villagc. Hundrcds ol pcoplc gathcrcd as Polak
dcmonstratcd how a trcadlc pumpa chcap, lootopcratcd watcr
pumpcould irrigatc thcir clds. As ! and youngcr mcmbcrs ol his
sta wiltcd and hcadcd lor shadc, Polakdrcnchcd in swcat contin
ucd to chargc around, pcrsuading villagcrs that small things likc a
pump could changc thcir livcs.
Montaignc somctimcs bccamc prctty borcd on this trip as Polak
talkcd to larmcr altcr larmcr, lcarning in mcticulous dctail how thcy
livcd thcir livcs, drcamcd thcir drcams, carncd thcir incomcs, and what
thcy thought could bring thcm out ol povcrty. This book is bascd on
Polaks cxtcndcd convcrsations with morc than thrcc thousand small
acrcagc larmcrs in dcvcloping countrics. Vhat hc lcarncd lrom thcsc
rcmarkablc, stubborn survival cntrcprcncurs bccamc thc simplc opcrat
ing principlcs ol thc organization hc loundcd, !ntcrnational cvclop
mcnt ntcrpriscs (!), which has hclpcd morc than ., million pco
plc who survivc on lcss than a dollar a day to movc out ol povcrty.
Polak has writtcn morc than a hundrcd papcrs and articlcs on watcr,
agriculturc, dcsign, and dcvclopmcnt, as wcll as in thc cld ol mcntal
hcalth. Hc has bccn thc subjcct ol articlcs in print mcdia such as Na-
tional Geographic, Scientic American, Forbes, Harpers, The New York
Times, and thc Wall Street Journal. Awards includc bcing namcd acc
ntrcprcncur ol thc Ycar lor thc Vcstcrn Statcs by rnst and Young,
thc acc Tcch Muscum Prizc lor dcsign ol !s lowcost drip
irrigation systcm, and, also in acc, thc Scientic American Top Filty
lor his contribution to agricultural policy.
tso0f :u=
! (!ntcrnational cvclopmcnt ntcrpriscs) startcd twcntyvc
ycars ago whcn thrcc conccrncd individuals agrccd to put up tcn thou
sand dollars cach to gct it going. Art cFchr was running Palliscr Fur
niturc, a busincss his dad startcd which quickly grcw into thc biggcst
lurniturc company in Canada. on Hcdrick ran a supcrmarkct and
shopping ccntcr in Lancastcr, Pcnnsylvania, and Paul Polak workcd as
a psychiatrist and in his sparc timc as an cntrcprcncur. From its rst
projcct, which built and sold vc hundrcd donkcy carts to rclugcc
cntrcprcncurs in Somalia, to its prcscnt locus on intcnsivc protablc
agriculturc on small larms, !s mission has bccn to usc practical
busincss stratcgics to incrcasc thc incomcs ol dollaraday poor pcoplc.
!n thc bcginning, ! workcd out ol a bcdroom in my housc as thc
only sta mcmbcr, and ! workcd lor thc rst scvcn ycars as a voluntccr,
living lrom thc moncy ! madc as an cntrcprcncur in othcr cntcrpriscs.
ur rst grant lunds camc lrom thc govcrnmcnt ol Canada and thc
UN lor thc donkcy cart projcct, and thcn wc got anothcr grant lrom
thc Canadian govcrnmcnt to scll trcadlc pumps in 8angladcsh and
othcr countrics, a projcct that turncd into a big winncr. vcn at this
carly point twcntytwo ycars ago, wc sold thc trcadlc pump at a lair
markct pricc, and as in thc donkcy cart projcct, thc poor pcoplc who
invcstcd got thrcc timcs thcir moncy back in thc rst ycar.
! has . pcoplc in its hcad occ in cnvcr and c lulltimc
sta who comc lrom thc ninc countrics whcrc wc dircctly implcmcnt
our projccts8angladcsh, !ndia, Ncpal, Cambodia, \ictnam, Myanmar,
Zambia, Zimbabwc, and thiopia. ! has had an impact on thc livcs
ol . million dollaraday smalllarm lamilics (.,. million individuals)
sincc its inccption, and is working togcthcr with its partncrs to rcach
c million lamilics by acac.
! achicvcs rcsults in challcnging cnvironmcnts ol cxtrcmc povcrty,
poor inlrastructurc, discasc, and war. Vith c pcrccnt ol its cmployccs
locally cmploycd in thcsc countrics, ! uscs thc cntrcprcncurial ap
proach dcscribcd in this book to succccd whcrc traditional dcvclopmcnt
:
OuL o PovcrLy
::
modcls havc lailcd. ! listcns to what its customcrs, thc rural poor,
say about thcir nccds and thcn dcvclops appropriatc, aordablc solu
tions that incrcasc thcir incomcs. Thcsc solutions includc dcvcloping
and markcting tcchnologics lor watcr acccss and control, providing cx
pcrtisc and training, and incrcasing acccss to markcts.
Morc inlormation is availablc at www.idcintcrnational.org.
AbouL BcrrcLL-Kochlcr Publishcrs
8crrcttKochlcr is an indcpcndcnt publishcr dcdicatcd to an ambitious
mission: Crcating a Vorld That Vorks lor All.
Vc bclicvc that to truly crcatc a bcttcr world, action is nccdcd at all
lcvcls individual, organizational, and socictal. At thc individual lcvcl,
our publications hclp pcoplc align thcir livcs with thcir valucs and with
thcir aspirations lor a bcttcr world. At thc organizational lcvcl, our
publications promotc progrcssivc lcadcrship and managcmcnt practiccs,
socially rcsponsiblc approachcs to busincss, and humanc and ccctivc
organizations. At thc socictal lcvcl, our publications advancc social and
cconomic justicc, sharcd prospcrity, sustainability, and ncw solutions to
national and global issucs.
A major thcmc ol our publications is pcning Up Ncw Spacc.
Thcy challcngc convcntional thinking, introducc ncw idcas, and lostcr
positivc changc. Thcir common qucst is changing thc undcrlying bc
licls, mindscts, and structurcs that kccp gcncrating thc samc cyclcs ol
problcms, no mattcr who our lcadcrs arc or what improvcmcnt pro
grams wc adopt.
Vc strivc to practicc what wc prcach to opcratc our publishing
company in linc with thc idcas in our books. At thc corc ol our ap
proach is stewardship, which wc dcnc as a dccp scnsc ol rcsponsibility
to administcr thc company lor thc bcnct ol all ol our stakcholdcr
groups: authors, customcrs, cmployccs, invcstors, scrvicc providcrs, and
thc communitics and cnvironmcnt around us.
Vc arc gratclul to thc thousands ol rcadcrs, authors, and othcr
lricnds ol thc company who considcr thcmsclvcs to bc part ol thc 8K
Community. Vc hopc that you, too, will join us in our mission.
t sx currcN1s soox
This book is part ol our 8K Currcnts scrics. 8K Currcnts books ad
vancc social and cconomic justicc by cxploring thc critical intcrscctions
bctwccn busincss and socicty. cring a uniquc combination ol
thoughtlul analysis and progrcssivc altcrnativcs, 8K Currcnts books
promotc positivc changc at thc national and global lcvcls. To nd out
morc, visit www.bkcurrcnts.com.
Bc ConnccLcd
visi1 our wcssi1c
Go to www.bkconncction.com to rcad cxclusivc prcvicws and cxccrpts
ol ncw books, nd dctailcd inlormation on all 8crrcttKochlcr titlcs
and authors, browsc subjcctarca librarics ol books, and gct spccial
discounts.
susscrisc 1o our rrcc c-Ncwsic11cr
8c thc rst to hcar about ncw publications, spccial discount ocrs, cx
clusivc articlcs, ncws about bcstscllcrs, and morc! Gct on thc list lor
our lrcc cncwslcttcr by going to www.bkconncction.com.
cc1 qutN1i1v biscouN1s
8crrcttKochlcr books arc availablc at quantity discounts lor ordcrs ol
tcn or morc copics. Plcasc call us tolllrcc at (cc) aaa or cmail
us at bkp.ordcrsGaidcvt.com.
nos1 t rctbiNc crour
For tips on how to lorm and carry on a book rcading group in your
workplacc or community, scc our wcbsitc at www.bkconncction.com.
+oiN 1nc sx corruNi1v
Thousands ol rcadcrs ol our books havc bccomc part ol thc 8K
Community by participating in cvcnts lcaturing our authors, rcvicw
ing dralt manuscripts ol lorthcoming books, sprcading thc word about
thcir lavoritc books, and supporting our publishing program in othcr
ways. !l you would likc to join thc 8K Community, plcasc contact us at
bkcommunityGbkpub.com.

Out of Poverty

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Out of Poverty

Uploaded by

Copyright:

Available Formats

Promotional copy 9/19/2013. Not for resale or redistribution.

Morc Praisc for Out of Poverty

Twclvc SLcps Lo PracLical Problcm Solving

Twclvc SLcps Lo PracLical Problcm Solving

Tc Trcc CrcaL PovcrLy FradicaLion MyLhs

Tc Trcc CrcaL PovcrLy FradicaLion MyLhs

Tc Trcc CrcaL PovcrLy FradicaLion MyLhs

Tc Trcc CrcaL PovcrLy FradicaLion MyLhs

Tc Trcc CrcaL PovcrLy FradicaLion MyLhs

Tc Trcc CrcaL PovcrLy FradicaLion MyLhs

Tc Trcc CrcaL PovcrLy FradicaLion MyLhs

IL All SLarLs wiLh Making Morc Moncy

IL All SLarLs wiLh Making Morc Moncy

IL All SLarLs wiLh Making Morc Moncy

From SubsisLcncc Lo Ncw Incomc

Aordablc Small-PloL IrrigaLion

Aordablc Small-PloL IrrigaLion

Aordablc Small-PloL IrrigaLion

A Ncw AgriculLurc or Onc-Acrc Farms

A Ncw AgriculLurc or Onc-Acrc Farms

A Ncw AgriculLurc or Onc-Acrc Farms

CrcaLing VibranL Ncw MarkcLs TaL Scrvc Poor CusLomcrs

CrcaLing VibranL Ncw MarkcLs TaL Scrvc Poor CusLomcrs

CrcaLing VibranL Ncw MarkcLs TaL Scrvc Poor CusLomcrs

CrcaLing VibranL Ncw MarkcLs TaL Scrvc Poor CusLomcrs

CrcaLing VibranL Ncw MarkcLs TaL Scrvc Poor CusLomcrs

CrcaLing VibranL Ncw MarkcLs TaL Scrvc Poor CusLomcrs

CrcaLing VibranL Ncw MarkcLs TaL Scrvc Poor CusLomcrs

CrcaLing VibranL Ncw MarkcLs TaL Scrvc Poor CusLomcrs

Taking AcLion Lo Fnd PovcrLy

Taking AcLion Lo Fnd PovcrLy

Taking AcLion Lo Fnd PovcrLy

Taking AcLion Lo Fnd PovcrLy

csign lor xtrcmc Aordability,

building blocks lor dcsigning chcap,

studics. See rcscarch

You might also like