Emerging Markets, Emerging Models MARKET-BASED SOLUTIONS TO THE CHALLENGES OF GLOBAL POVERTY Ashish Karamchandani Michael Kubzansky Paul Frandano March 2009
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FOR MORE INFORMATION PLEASE CONTACT:
Michael Kubzansky
[email protected] +1.617.252.2486 Ashish Karamchandani
[email protected] +91.22.6658.2000 www.mim.monitor.com www.monitor.com
Emerging Markets, Emerging Models MARKET-BASED SOLUTIONS TO THE CHALLENGES OF GLOBAL POVERTY
Ashish Karamchandani Michael Kubzansky Paul Frandano with the assistance of Victoria Barbary, Anamitra Deb, Davis Dyer, Nishant Lalwani, Varad Pande, and Suchitra Shenoy
Executive Summary ............................................................. 2 Introduction .......................................................................... 8 New Approaches to Low-Income Markets.......................... 16 Business Models That Work .............................................. 34 PAY-PER-USE .................................................................................................. 40 NO FRILLS SERVICE ..........................................................................................47 PARASKILLING ................................................................................................. 55 SHARED CHANNELS .........................................................................................64 CONTRACT PRODUCTION.................................................................................. 77 DEEP PROCUREMENT...................................................................................... 86 DEMAND-LED TRAINING ...................................................................................95
What the Models Teach .................................................... 102 Recommendations and Concluding Thoughts ................... 120 APPENDIX: OVERVIEW OF THE INDIA STUDY .............................................. 131 ACKNOWLEDGEMENTS ............................................................................ 135 NOTES .................................................................................................... 136
Executive Summary Appendix
EMERGING MARKETS, EMERGING MODELS
Executive Summary
THIS REPORT INVESTIGATES “MARKET-BASED SOLUTIONS”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
© MONITOR COMPANY GROUP, L.P. 2009
EMERGING MARKETS, EMERGING MODELS
Executive Summary
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A SELF-HELP GROUP IN ANDHRA PRADESH Village women meet regularly to manage credit and savings for purchases of dairy cows and other income-generating assets.
© MONITOR COMPANY GROUP, L.P. 2009
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EMERGING MARKETS, EMERGING MODELS Introduction
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GRINDING FLOUR Among low-income families, food preparation is often laborious and time-consuming. Today, market-based solutions offer better ways to simplify traditional chores like cooking or securing clean water.
© MONITOR COMPANY GROUP, L.P. 2009
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EMERGING MARKETS, EMERGING MODELS New Approaches to Low-Income Markets
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© MONITOR COMPANY GROUP, L.P. 2009
EMERGING MARKETS, EMERGING MODELS
New Approaches to Low-Income Markets
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