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Developmental Entrepreneurship MAS.965 Development Futures

Developmental Entrepreneurship MAS.965 Development Futures. 6 December 2002 Joost Bonsen jpbonsen@media.mit.edu http://web.media.mit.edu/~jpbonsen/DE-2002Fall.htm. Today’s Agenda. Last Class Accomplishments Further Actions Developmental Innovations @ MIT Further References

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Developmental Entrepreneurship MAS.965 Development Futures

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  1. Developmental Entrepreneurship MAS.965Development Futures 6 December 2002 Joost Bonsen jpbonsen@media.mit.edu http://web.media.mit.edu/~jpbonsen/DE-2002Fall.htm

  2. Today’sAgenda • Last Class • Accomplishments • Further Actions • Developmental Innovations @ MIT • Further References • Final “Deliverables”

  3. Doing Our Part in a Global Development Movement • Global challenge never been clearer or more broadly known • Development disparities within and between nations and peoples • Understanding about what works growing • Politically ripe – consider Mexico’s Fox, Ghana’s Kufuor, Russia’s Putin

  4. Accomplishments • Live Case-Studies • Cross-campus connections • Over half-dozen proposed ventures • Advancing MIT Development Efforts

  5. Low Cost Eyeglasses http://www.lowcosteyeglasses.net/

  6. Selco • Solar Electric http://www.selco-intl.com/

  7. GrameenPhone • Rural Telephony • Reselling GSM • Fastest Growing Cellco in SAsia Borrows $350 Earns $2/day 7,600 VillagePhones http://www.grameenphone.com http://www.telecommons.com/

  8. Further Actions • Research • Digital Nations/MLA • Sloan G-Lab • Globalization Project • World Economy Lab • Global Sustainability • Curricular • IAP 2003 Offerings • Spring 2003 Classes • Extracurricular • Wilson Awards • SEID • Development Club • …many others

  9. How Connect with the “Other Side” • w/ Business Students – Focused projects & tasks, clear end goals, think of & convey at right level of abstraction & detail • w/ Scientists & Engineers – Show you’re useful, go actively participate, build trust, observe key classes, go to research group meetings

  10. IAP 2003 Classes http://web.mit.edu/iap/

  11. Spring 2003 Classes • MIT http://student.mit.edu/catalog/index.cgi • Harvard http://www.harvard.edu/academics/

  12. Example MIT Classes on Development(Current & Historical) • MAS.963 Development Technologieshttp://edev.media.mit.edu/class963.html • IAP Grassroots Development Seminarhttp://www.media.mit.edu/~nitin/aid/iap/ • SP746 ATF Writing Seminarhttp://web.mit.edu/sp.746/www/home.html • SP753 Designs for Developing Countrieshttp://web.mit.edu/sp753/www/home.html • 21A.336 Globalization: Mercantilism to Microchips C. Walley • 15.040 Development Macroeconomics R Rigobon http://web.mit.edu/rigobon/www/Cursos/DM_Syllabus01.html • 17.196 Globalization S. Berger http://web.media.mit.edu/~jpbonsen/MIT-Devel-Classes.htm

  13. http://www.medialabasia.org/ http://www.medialabasia.org/

  14. http://www.thinkcycle.org/

  15. Influencing & Accelerating MIT Development Initiatives • Currently fragmented • Sponsorship critical • Student-influence? • Faculty commitment • Appealing to technologists at Institute

  16. GrowingResearchTheme? • Undergrads • Multi-school faculty • New categories of sponsors • Orchestrating broader MIT Research Initiatives… http://courses.media.mit.edu/2002fall/de/UROP/

  17. http://web.media.mit.edu/~jpbonsen/MIT-Emerging-Technology-Matrix.htmhttp://web.media.mit.edu/~jpbonsen/MIT-Emerging-Technology-Matrix.htm

  18. MIT Development Club? • Campus-wide • Tapping Alumni base • Fastest-action

  19. Development DifficultiesOpportunities • Social • Political • Infrastructural • Cultural …through further references…

  20. Systemic Challenges & The Face of Poverty • No infrastructure • Misplaced priorities • Subjugation of women • No belief in better • Struggle to simply survive • Child medical ailments mostly treatable

  21. Dornbusch’s Paradox of Globalization • Workers face worldwide competition • More financial accidents, more visible • Statist protections removed, lowered impression of security • Disturbance anywhere felt everywhere • Future shock = change outstrips ability to cope

  22. Government Incompetence amid Unrivaled Prosperity • Difficulty of defending sound currency • Temptation of protectionism • Desire for “Third Way” challenging • Unfinished revolutions • Mixed role of international institutions

  23. Disrespect of Indigenous Institutions • Informal credit-rating by association • Functional illiteracy • Difficulty tapping community support or social capital nets • Trust and friendship bonds • Criminalized market activities

  24. Inefficient & Criminalized Informal Economy • Substantial Inefficiencies • Tax “exemption” • Bureaucratic hurdles to formality • Year in time • Years wages in “fees” http://www.ild.org.pe/ http://www.economictimes.com/280401/28edit04.htm

  25. Tragedy of the Commons & Illiquid Assets • Title to otherwise “Dead Capital” • Assets owned but not formally • Can’t sell • Trillions of US $ globally • Recent Russian news…

  26. Nation Building Difficult • Wealth Inequalities • Ethnic strife • Ownership stakes • Health care system confidence • Personal Incentives crucial

  27. Botched Privatizations • Privatizing the historic commons to benefit of few • Structural inefficiencies • Lack of institutions • Popular Ignorance • PEMEX dilemma http://www.gazprom.ru/

  28. Microfinance v Macrofinance I • Financial services for poorest of poor • Very difficult • Credit only or broader? • Avoiding “driving poor further into debt”

  29. Microfinance v Macrofinance II • Poor countries quarter trillion in debt • Servicing cost exceed social investments • Structural trauma, hamfisted “adjustments”

  30. Culture Counts • Ability to adapt is a function of culture • Virtues of peoples crucial • Work, thrift, honesty, patience, tenacity • Wealth gulf may persist

  31. Geography Counts • Positive feedback loop of: farming  domesticated animals  population  innovation capacity • Environmental factors dominate

  32. Grassroots Globalization • Groundswell emerging from below • Personal aspirations • “Whatever you’ve got, sell it, trade it, do something to improve your standard of living”

  33. Balancing Free Market Innovation with Fair & Equal Opportunity • Engine of inequality is creative force • Inequalities transient

  34. Final “Deliverables” • Individual & Team Feedback • Small write up, paragraph or two • Reflect on process this time, what worked, didn’t, what you liked; • Highlight any improvements for next time, including thinking outside of box. • Send to jpbonsen@mit.edu

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