Macro Approach to a Micro Problem

I first learned about a targeted poverty alleviation initiative more than five years ago when my sister announced to our family that she was going to work for Kiva in India.  My family and I listened as she passionately explained the concept of microfinance and how Kiva works to empower entrepreneurs in the developing world by connecting them to such micro-loans.  Ever since she left for India, I always kept an in interest such efforts that focused on not only helping the poor, but empowering them.  Perhaps it is because of my early introduction to microfinance that Grameen Uniqlo article really caught my attention.  I was excited to learn that Grameen Group’s Grameen Healthcare Trust and Japan’s Fast Retailing Co., which operates clothing chain Uniqlo, opened two new Grameen Uniqlo stores in Dhaka, Bangladesh this past July.

I’m familiar with the Grameen model.  I have read Muhammad Yunus’ “Banker to the Poor”; however, this venture (at first) was mostly confusing.  I kept attaching what I knew about microfinance to the concept; but the moment I took a few steps back, I clearly saw just how comprehensive the social business framework is.  What makes it so powerful is that it not only aims to empower and work towards alleviating issues related to poverty, but it also gives the Bangladeshi population a sense of control.  Control over the production, the product design, the procurement of materials, the purchasing, and the reinvesting of the profits.  

The model is entrusting all of these components among the local population.  And, by doing so, they are creating a model that could be not only sustainable, but also scalable to other parts of Bangladesh and even into other developing markets. I only recently learned about Uniqlo when I visited New York this past summer.  My sister pointed it out to me as it being one of her favorite stores.  I learned that it competes at the levels of other fast-fashion retailers (i.e. H&M, Joe Fresh, and Zara), but is known for it’s higher quality and on site tailoring services.  What’s interesting is that while this store is pursuing an active expansion effort—it only recently opened its third flagship store on New York’s 5^th Avenue—it is also pursuing a socially-conscious initiative outside of their existing business line.   Within three years, the goal of this initiative is to create 1,500 jobs and have a total of 1 million units of production and sales.

This joint-venture demonstrates how public and private entities can successfully come together to create a social enterprise.  I look forward to following the Grameen Uniqlo model and learning about its future successes.  Like another other effort, social enterprise is also something that will need to be practiced, and the exercise of creating a strong social business framework is the best way to know how to create strong, self-sustaining business model.  The toughest part is to visualize and put the concept into motion. 

http://www.nytimes.com/2013/09/17/opinion/let-the-poor-have-fun.html?smid=fb-share&_r=0

For example, I recently read a NYTimes Op-Ed titled “Let the Poor Have Fun”.  This pieces discusses how the Indian government has several valiant plans to bring Internet access to the villages, but they largely center on connecting government offices for ID databases and for software simulation to teach citizens skills like plumbing.

 After reading the Grameen Uniqlo news, I can’t help but also wonder: wouldn't it be better if the poor were offered direct connectivity over their phones, free or cheap, and were left to decide what they wanted to do with it?