Saturday, July 25, 2009

Investing in Individuals

Here's an interesting thought- http://500hats.typepad.com/500blogs/2009/07/taking-me-inc-p.html

It gave me an idea. Global development to reduce poverty hasn't been taken up by the private sector as much as by the non-profit/government sector. It's just not profitable without there being any barriers to entry (like a patent) after development has taken place. For example if a company built wells for clean water and roads in an undeveloped area, any other company could come and profit from that area, decreasing the ROI for the company that developed the area in the first place. However, if the development company could invest in the individuals in the area, like the article suggests, then it could make development a viable business.

For those who have never really thought about global poverty, if you look up some statistics on clean water availability, diarrhea death rates, and proportion of people living in slums, you will see that it's a huge problem and potentially a huge opportunity.

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