Navigating new economies

I believe that it is worth asking the question: What would happen if elected officials in the US started believing in science and enacted the serious measures needed to curb global warming? Would US, or even comprehensive western action, be enough? 

In developing countries, more than one billion people lack reliable power and clean water, and a staggering 2.5 billion lack access to proper sanitation. It will matter little how effectively the US curbs its emissions, if developing countries employ fossil fuels to meet their overwhelming needs.

Prashant Bhushan, a judge at the Indian Supreme Court, recently addressed the annual banquet of Indians for Collective Action (ICA). Mr Bushan stated that the solution to poverty was to end the corruption that currently diverts an estimated 85 percent of development spending away from those who need it most. Bhushan was a leader in Anna Hazare’s team, which organised the Indian equivalent of “Occupy Wall Street” that drew tens of thousands to Delhi to protest against the corruption. The movement’s success may be one contributing factor to someday ending poverty in India.

Paul Polak who founded IDE and D-Rev also spoke at the ICA meeting, and believes that the private sector can tackle the challenges. The opportunities are as immense as the problem. One billion people without power is a potential market of 200 million households, and is currently a market with very little competition.

My organisation, Natural Innovation, incubates innovators with clean technology innovations in, or for, developing countries. Two projects Natural Innovation is currently assisting have business plans suggesting that they could attain venture level returns while reaching only 0.2 percent of their target markets. It has been a long time since I have seen a plan for a business addressing a “western” market that had that much room for growth.