yunus/macrae 33 year index of entrepreneurial untruths

ned is particularly good for resource threads- help us construct following companions to this conversation thread:: 1 http://www.ned.com/group/communi ty-general/news/153/ individuals at ned - and networks - for whom collaborating around Yunus is the best chance we have of connecting up a win-win-win global

2 http://www.ned.com/group/communi ty-general/news/151/ video clusters that peers of yunus 1000 bookclub use to give Future Capitalism an outing

3 http://www.ned.com/group/communi ty-general/news/155/ what goodwill marketing is not

4 http://www.ned.com/group/network weavers/news/7/ Governing Exponentials: Irradicating Inconvenient Truth

Making Future News for Humanity http://www.futurecapitalism.tv/id32.html March 1 Congratulations Dr Y for Wall Street Journal Weekend Commentary http://online.wsj.com/article/SB 120432950873204335.html?mod=goog lenews_wsj

Latin credere (to believe or trust). To have "credit" in a community, for example, meant that you could be trusted to pay back your debts. "I use to say this in my speeches, in the early days," he responds. "I said: look at the world, how funny it is. They took the word credit which means trust, and built a whole edifice of credit institutions, refined, very sophisticated, entirely based on distrust." At Grameen, he says, "we went back to the original meaning of credit."...Mr. Yunus would argue that in making credit more easily accessible, he is helping guarantee a fundamental human right. "There are certain items that are listed as human rights: right to food, right to shelter, right to work, right to health . . . but who are going to implement those human rights?"...Out of all the rights that he listed, Mr. Yunus says he would put credit as No. 1. "If you agree that each case of receiving microcredit is a creation of self-employment, then my argument is self-employment creates income," he explains. "Income is the thing which brings food. Income is the thing which creates the possibility of shelter, home. And income is the best medicine."

It may surprise you to know that for most of its first 200 years of study- entrepreneurial leadership involved maps of how to make your work more productive, as well as that of those you communally interacted with. In other words entrepreneur was the branch of economics that was wholly about transparency mapping of how value sustained Social/Community systems as well as being good business to spend your lifetime's experience and trust-flows

In 1976 my father did a survey of Entrepreneurial Revolution in The Economist. The survey started with 10 green bottles - top 10 conventional ignorances about enetrpreneurial system truth in 1976

For at least 15 years, he convened regular luncheon roundtable debates updating top 10 entrepreneurial conventional fallibilities - going through changing sectors -and so economic contexts - like the service economy and the future of the internet economy. He debated fearlessly from the outset with quite well known people -eg a young Romano Prodi was the Italian translator of ER76 including those assembled by Herman Khan at his Hudson Institute, J Gifford Pinchot at his Intrapreneurial school at tarry Town, various swedish Foresight groups that also published a swedish version of my father's netfuture maps http://www.normanmacrae.com/netf uture.html that propelled nordica region ahead under the social business slogan The New Vikings.

This month in celebration of Muhammad Yunus at the world's most trusted entrepreneurial revolutionary my 85 year old dad convened another ER roundtable with Yunus as our guest of honour during his london book tour. My friends and I will be debating how to simplify 2008's ten green bottles that world entrepreneurs need to breakthrough. For the moment I have this pic which looks more like a wheel of misfortine. Give me some time and I will try and link up its vocabulary. Meanwhile though we filmed the Pall Mall luncheon its video is not ready yet, so instead at the top of this thread you have a 10 minute deep chat world exclusive with Yunus on the New York day his book jumped into the bestsellers. You can see this extraordinary entrepreneur has many collaboration dreams - however unlike other people my 3 hours of interviews with him clarify that he seldom mentions a dream before its already being socially actioned or social business modelled or partnered with the likes of Bill Gates to co-create Future Capitalism. Welcome to 2008 The Year of Social ABC - may it start the turnround from all the tipping points of sustainability we have been crashing trough by not being grounded enough in community up economics.

Last comment added: Fri, 07 Mar 2008 23:41:01 PST

Comment 1 on yunus/macrae 33 year index of entrepreneurial untruths

ENTREPRENEURIAL SYSTEM FUTURE SHOCK In summary 33 years of top 10 entrepreneurial mistakes are:

1 Denying that 90% of the greatest innovations for humanity start small and deeply contextualised

2 Failing to scale up around win-win-wins -corollary this causes many life-critical inventions to be unprofitable as far as global accountants are concerned and so buried in some corporate lawyers patent desk.

3 Short-term analysis ruling alone is the enemy of entrepreneurship as well as intergenerational investment (eg pensions). Since 2000 the Unseen Wealth school of economics estimates that stockmarketed corporations are only compounding about 10% of wealth and health that all stakeholders including long term investors could be enjoying.

4 Oddly a different business model is needed if you are to leverage the service plus economy - one that invests in core people. This is still banned by tangible accounting rules where people must be booked in as costs. There is a priceless Charlie Rose interview of internet maven Ester Dyson where she says the USA is falling down the world league table in service plus sectors- the rising stars of hi-value service economy are India and bangladesh.

5 Yet more oddly, networks of systems require hi-trust partnerships if value multiplication is to be sustained. Recent interviews of big management consultancies suggest their partnering advice to clients is promise the potential partner a lot, tie up your legal small print, then deliver the least. Whether you feel that's a slight exaggeration, it is part of Dr Yunus' genius to have developed a new partnership model so that when his grassroots organisation partners a big global one it is impossible for the grassroots partner to get burned. That's how the social business molecule works to unite Future Capitalism partners.

6 Instead of short-term boxed-in backwards measures, the number 1 flow metric of true sustainability investment to govern is what future exponential up or down are we compounding. because much of the quality of a win-win-win or lose-lose-lose model is already a "relationship investment", bayesian maths can be used to map out the exponential curve any corporate system is spinning. Not to make leadership decisions conditional on the exponential track is strategically inept.

7 Unfortunately networks map out to be systems to the power N. This means that whole strings of interconnected organisations can collapse due to the weakest -eg how chains of dotcoms fell due to cross-selling to each other. We are living in an age where some sustainability crises may happen at the speed of 100-lose and yet those in charge of governance of large organisations are in most cases failing to track risk metrics proactively.

8 So while becoming a Yunus SBA (knowing how to over-rule wrong MBA maths) can be very good for ending poverty, its actually the best insurance that well off communities of youth can social action and business learn all about too.

Comment 2 on yunus/macrae 33 year index of entrepreneurial untruths

Very interesting. Is there a way i could get a copy of the graphic included here (particularly the text) via email? If so please send to perry.l.gruber@intel.com. Thanks!

Comment 3 on yunus/macrae 33 year index of entrepreneurial untruths

Perry, of course you and anyone here is most welcome to their own copies to play with. Just as all the frameworks http://yunussocialactiongroup.org (expect this web and log of yunus communal experiences with his triple Social ABC (Action model*Business Model* Capitalism's Future (1 2 3) alternative models) frameworks to go through massive regular upgrades - one due in about a fortnight) Dr Yunus offers are open source for people to commune around, so are any derivations of his work or my father's for that matter

One of the reasons why we'd love to encourage people to edit their own versions is language. These days almost every item in management vocabulary that could be systemic in a natural or humanly lively way means different things to different people. Dr Yunus takes this further in many of his speeches at university. There's a great danger of students becoming mini-professoors - ie trapped as a captive audience to one single professor's laws unable to flow across disciplines or even to recognise that when it comes to leadership frameworks there are sometimes hundreds that are 90% common but with their own copyrighted terms. Another problem is professors often love to stadardise whereas any map is constructed from the context up. Its value connects deeeper and deeepr deatls if it is to practically connect people without dead ends or taking them into danger (such as places where you are now seen as the enemy or where sme of the beliefs you hold about doing no harm are not operating)

Having said that you need to be your peers own translator and guide around entrepreneurial controversies, there is a shortlist of words that are most important to me in studying Dr Yunus' and dad's work - in that though they may sound very common words indeed they actually connect both deeply mathematical (valuable) and practical actions.

I will need to come back here to extend the list but essential keywords for me are: map exponentials value multiply

entrepreneur -unlike the other 3 words I am quite happy to exchnage with your synonym but I am hunting for the word you use that is systemic, looks at flows and no conflicts in the differnet human relationship rles of productivive and demanding systems, particuloarly focuses on including the productivity side of inputs and outputs since almost all other branches of economics measure the output- if you step back its very strange to attempt to govern performance just by decision-making on te last cycles outputs. To those who command businesses only by looking at how much money did we take out the last quarter, I would say yes sustaining strong cash-flow is vital just as a body needs enough blood but that doesnt mean the only purpose of life is to make blood

Comment 4 on yunus/macrae 33 year index of entrepreneurial untruths

If you do see any future capitalism news that is worth crediting humanity with, please do tell us so we can (b)log it up Making Future News for Humanity http://www.futurecapitalism.tv/i d32.html

Comment 5 on yunus/macrae 33 year index of entrepreneurial untruths

Chris,

Picking up on the video, re Yunus's comments about social IT business, I've been rebuilding our commercial website to make the connection between business and social purpose more obvious.

It's incomplete, under development, but hopefully will promote the existence of a social software business in the UK.

http://www.people-centered.net/

This links back to our current project, which in Yunus's terms would comprise various levels of cost recovery from less-than to more-than in a nil overall cost development proposal to render the profit from affordable broadband delivery to the further social purpose of delivering family type homes to orphans.

http://www.p-ced.com/Projects/Uk raine/AMarshallPlanforUkraine/ta bid/69/Default.aspx

My instrument of choice nowadays is the DotNetNuke platform and should you desire a fully featured CMS to discuss Yunus type social business projects in general, with a forum, RSS and other feature included, just say the word. It will be a social business's contribution to the promotion of social business.

There are a vast array of skins which could be adopted and although I could host it as a portal within my own domain, I think it would be better to make it discrete. Then we could converge on one space for discussion, if you see this as an advantage.

Either way, I'm ready and have been quite a while, to talk about the IT related issues referred to by Yunus, so let's do it.

Jeff

Comment 6 on yunus/macrae 33 year index of entrepreneurial untruths

Bill Clinton on Yunus, Microfinance, and ShoreBank (2:33)

Comment 7 on yunus/macrae 33 year index of entrepreneurial untruths

yes the clinton video is fascinating as he suggests that bangladesh's 6% growth a year is due not to government but its outstanding grassroots organisations led by yunus (Grameen) and Fazle Abed Brac)

I salute Dr Yunus the happiest banker in the world cos basically every loan he's ever made has tried to make people more productive and communities more sustainable; this is the exact opposite of credit aiming to maximise a person's consumption and often debt.

(To reitearte satrt of this thread: I wonder historically where did different nation's banks crossover from Latin credere (to believe or trust). To have "credit" in a community, for example, meant that you could be trusted to pay back your debts. "I use to say this in my speeches, in the early days," he responds. "I said: look at the world, how funny it is. They took the word credit which means trust, and built a whole edifice of credit institutions, refined, very sophisticated, entirely based on distrust." At Grameen, he says, "we went back to the original meaning of credit."...)

It is interesting that the French origin of entrepreneurial studies involve productivity not demand-side economics. While I can see the merit of both up to a degree, its pretty clear that Dr Yunus has a point in saying that many bankers have mismanaged their businesses and are getting millions of people into crashing problems because of this.

The way this point is made in this New York Q&A with a 9 year old on the day that Dr Yunus' book hit the bestsellers list is priceless!

Furthermore sustainability crises at the community level are part of the same exponential system destruction

Comment 8 on yunus/macrae 33 year index of entrepreneurial untruths

Jeff, I was looking at your deep Ukraine plan http://www.p-ced.com/Projects/Uk raine/AMarshallPlanforUkraine/ta bid/69/Default.aspx

I would love anyone reading this thread who has actually been to one of the countreis in the old ussr to just add their name in a post below (if they have time for that) so we could at some stage invite a east europe section of ned to form. The one time I visited ukraine to share some knowhow with 300 young people, it pretty well broke my heart. I think tyhe poverty of old USSR has some pretty unique context to it that merits its own discussion space.

Another talking point that I wish we could develop in a parallel thread is when is a social enterprise nothing to do with yunus defintion of social business. In one of his London talks he made it clear that most UK social enterprises (eg rebadged by .gov) are just not on the same system map as Yunus social business

Where I think there is a connection between several of the last posts is that various people have been affirming the view that like clinton makes that once microcredit gets mature in a region then lots of other grassroots up organisations typically start to multiply. Its almost as if the existence of a truly run microcredit newtork has to come first before the other elements are likely to take root

Comment 9 on yunus/macrae 33 year index of entrepreneurial untruths

Chris, I have much the same feeling about the UK social enterprise scene. Just yesterday, responding to a Guardian article, which said in so any words, don't expect too much from social enterprise, I wrote to offer my views as one whose experience was one of exclusion.

Asides from the personalities and egos, my perception is of a network of self-promotion which has little comprehension of anything that isn't grant sponsored.

On microcredit, I'll endorse something else Clinton says. That it works with the Grameen model, which is reputation or moral collateral based. This is banking for ppor people creating business where it didn't exist. It's very different from small loan operations which extend only to existing business.

The former USSR group that you mention might be a good idea, the poverty/corruption relationship may perhaps be more sophisticated and organised there when compared with the developing world.

Comment 10 on yunus/macrae 33 year index of entrepreneurial untruths

>>responding to a Guardian article, which said in so any words, don't expect too much from social enterprise<<

Just spent a few minutes poking around http://www.guardian.co.uk/ and could not find the article, is it online Jeff? Thnx.

Comment 11 on yunus/macrae 33 year index of entrepreneurial untruths

Here you go Mark.

http://www.guardian.co.uk/societ y/2008/feb/27/socialenterprises

The gist of my response was that although I didn't know any social enterpreneurs that could fly, there were some doing exceptional things which the grant sponsored world of UK social enterprise would know nothing about.

Comment 12 on yunus/macrae 33 year index of entrepreneurial untruths

Just noticed from something that Chris put up on Facebook on the new 'Yunus Youtube' grow that John Mackey is now collaborating with Yunus.

Here's me at comment #172, attempting to steer John in the collaborative direction.

http://wholefoodsmarket.com/soci almedia/jmackey/2006/11/09/consc ious-capitalism-creating-a-new-p aradigm-for-business/

Comment 13 on yunus/macrae 33 year index of entrepreneurial untruths

Jeff, your links to Mackey also pointed my searches to a book hi si co-authoring. This appears to be its content stream: The first Section in this series of four Sections is Progress & Possibility. The intention of this Section is to open your mind to the positive progress humanity has made over millennia and, specifically, during the past few centuries, and to the very real possibilities and opportunities for continuing progress towards broadly distributed peace, prosperity, and well-being. Since the predominant messages projected through the mass media are dark, negative, and pessimistic, we understand that it is imperative to shift the context from, what our colleague Marilyn King calls “stinkin’ thinkin’” to a more balanced and accurate understanding of how well we are doing as a species and a society. Indeed, there is significant evidence that optimism itself is a factor in success. “Learned Optimism” refers to the idea that you can learn to be more optimistic and thereby become more successful. And in the context of Liberating the Entrepreneurial Spirit for Good, “more successful” means becoming more successful at making the world a better place, as well as more professionally successful on an individual basis. The second Section, The Entrepreneurial Spirit, focuses on the profound contribution to humanity made by the individual human spirit expressing its unique vision of possibilities and pursuing that vision with focus, determination, and skill. And we explore the conditions that support individual initiative towards the enhancement of life for all. Section three, Entrepreneurs in Service, focuses on the role of entrepreneurship in service to society. Section four, Liberating the Entrepreneurial Spirit for Good, focuses on the qualities and skills required to activate and sustain the entrepreneurial spirit within yourself, to effectively manifest your own powerful vision of service to society.

A draft of the book can de downloaded at: http://www.flowidealism.org/Down loads/LESFG-2.21.08.pdf

Comment 14 on yunus/macrae 33 year index of entrepreneurial untruths

Jeff Mowatt said:

Here you go Mark.

Thnx Jeff.

Comment 15 on yunus/macrae 33 year index of entrepreneurial untruths

Chris, If you've not heard of Mackey before, here's something that maybe went a little too far with the Entrepreneurial Spirit..

http://www.guardian.co.uk/busine ss/2007/jul/13/usnews.retail

Comment 16 on yunus/macrae 33 year index of entrepreneurial untruths

Thanks Jeff - which to some degree illustrates the point top right of the busy graphic which attempts to map the continous growth of a sustainable entrepreneurial organsiation as a system not just one charasmatic leader :

In starting up an ER business the first system triangle of relationships to map no conflicts between is: *the extreme inventor, *the most connected person between societies in need and the information employees will need next to be truly purposeful, *the open resource mapper who ensures hi-trust-flow & sustainability of cash-flow without conflicting

unique purpose’s value multiplying win-win-wins

Sustainability over time of a to-be-large entrepreneurial system usually depends on harmony of a combination of characters not one personality

Does Grameen fit this? I am not sure. Certainly the first female co-worker in Grameen was vital as she had to breakthrough the taboo going inside the home to talk to women while "Dr Yunu had to stand outside" to quote her from my jan 4 meeting with her. Many service franchises take quite a few years to perfect before they take off in a replication phase across a lot of branches. I am not too sure about this stage of Grameen's history. I'll see if there's some detail in one of the two main corporate bios: Yunus' and Bornsteins.

There is also at least some evidence that the whole pressure that comes from shareholder analysis - in my view wrongly focused on short-term numbers making in the west - puts truly passionate entrepreneurs under strain. Some may recall that Branson quickly bought back his company from being public. Anita Roddick believed her geratest mistake was going public. Its interesting to look at founders stories of many big organisations, and you will often see that the founders purpose -and first prolonged period of organisational growth in a company with a breakthrough offer - was very unlike what managers/mbas are taught to administrate.

Comment 17 on yunus/macrae 33 year index of entrepreneurial untruths

Chris, Let me post something here which arises in conversation outside Ned, on the subject of social business and its origins. When I write and there's no reaction, it leaves me unsure whether either I've exceeded my station by daring to address the inner chamber or that what I've written stuns them into silence.

So for the record:

In 1996, my now colleague Terry Hallman, working as an honorary researcher delivered a 'social business' model to the campaign to re-elect the US President. It advocate abandoning the nonprofit model completely in favour of a business a approach to eliminate poverty and according to him it was the first formal paradigm for the profit for social purpose approach and he called it People-Centered Economic Development (P-CED).

The paper was distributed widely without copyright and placed this model into the public domain where it spread rapidly on and off campus at the University of North Carolina in Chapel Hill

A copy of the paper is filed in the Clinton Presidential Library where archivist Jimmy Purvis informs me that it's under the control of the President as part of campaign records.

My research indicates that in approximately the same timeframe, several others were moving toward similar conclusion. Jed Emerson described his Blended Value model, John Mackey wrote of Conscious Capitalism and Yunus was working on his social business model. In 2004, CK Prahalad released his book on the Fortune at the Bottom of the Pyramid and became another public advocate for the for-profit approach.

I've been managing Hallman's website since 2004 when P-CED formed in the UK and have found records in web archives which describe the model in 2002.

http://web.archive.org/web/20030 712043307/p-ced.com/page2.html

What's interesting about this is that there are several points made in this synopsis which are echoed in Yunus's 2006 Nobel Prize acceptance speech relating to terrorism, the role of ICT and deploying a more inclusive form of capitalism which coexists in the free market economy.

In 1999 Hallman took the model to Russia using his own funds to leverage development aid for a development project in Tomsk based on the P-CED model centered around a microcredit bank whose lending model was inspired by the Grameen moral colatteral approach.

The project completed in 2005 with 98% repayment, a ratio of women borrowers exceeding men by more than 4:1 and full cost recovery providing proof of concept for the social business paradigm.

Due to the lack of funding support for social business models in the UK, and the limitations of the initial guarantee company formation, P-CED was re-formed as a conventional share company in 2006 when at the same time it inherited an ongoing software development business of 20 years standing.

Since 2006 it has operated as a social business rendering approximately 50% of gross revenue to social purpose. The social purpose is activism and advocacy in Ukraine where over the last 4 years Hallman has lived, raising awareness of corruption in institutional childcare and developing a national scale development plan offered to Ukraine for consideration in their future MCC Compact assistance from US government.

Comment 18 on yunus/macrae 33 year index of entrepreneurial untruths

Jeff-

1 very interesting

2 there is nothing new in what Yunus advocates- purposeful business compounds the ,most communal health and wealth for all- in the 1980s Porter wrote a series of disastrous strategy books and global accountants rushed to preserve their monopoly over boardroom metrics by desecrating valuation of goodwill - something which was outside their additive mathematics to model let alone their assumptions that people are costs and knowledge should be boxed-in-owned (not network flowed); strategy books led by hamel and prahalad , and collins and porras corrected this as early as 1993; in a small way I earlier corrected this by inspiring the end of The Economist's 1988 survey of the year of the brand- we will be n for all sorts of compound global trouble if we value brands only on image/executing promise and not on reality-making /earn trust

3 however what is new is that Yunus has made the simplest maths argument that is is possible to systemise/measure and defined its molecule as social business; he's then invites the world's bigest global market corporations (and anyone Bill gates can influence) and the world's deepest grassroots service organsiations to each join in a collaborative venture that intersects in social business - this is incredibly smart maths since it leaves the rest of both organisational systems to flow their own futures (unlike eg if a big bank was to takeover ge will therefore see the Grameen); we will now see how goodwill's expoentials go up and up in co-creating communal wealth and health whle badwill's continue their global slump towards ending human sustainability; equally we will see those CEOs in socila business multinationals that yunus tells most stories about including Danone havimng to make their social bsuiess trust flow ever more around their organsaition - exactly the opposite of radio 4 and The Economist's cucumber arguments

the goodwill side - david frost click to minute 5

the dumbing down or badwill side BBC radio 4

Comment 19 on yunus/macrae 33 year index of entrepreneurial untruths

Hmmm, John's interruptive style may well suit some of our evasive politicians, but not the unassuming manner of Yunus.

I suspect that John is more of a fan than he lets on.

He does have a point about Danone, I think. If one wants to be considered a social business it should be a wholesale commitment, otherwise it doesn't appear to be much more than a self-promtion exercise. Better perhaps, if Danone seed funded it and delivered proof of concept without their established name.

This is one of my criticisms of what is being promoted as social business, which it may well be, but it does seem to be hugely dependent on celebrity endorsement and large scale financial backing.

To reach the tipping point that social business needs, I believe, will mean that it will have to stand or fall on its own merit as do all current forms of business in the free market.

Comment 20 on yunus/macrae 33 year index of entrepreneurial untruths

There's an australian trainer of young entrepreneurial revolutinaries who I admire a lot who says that they would otherwise profile as juvenile delinquents. She has dared to suggest that in another life the same might of befallen Richard Branson.

I agree its a paradox that NW systems have made being entrepreneurially true so challenging that perhaps a rebel character has the best chance of breaking through

Its because you can see from the video at the top of this thread that Dr Yunus is the exception of being as cheerfully at peace with the world as a Gandhi and as an irresistible energy as any titan of industry that I am convinced we will never see his likes again, and darn well out to network round him now if sustainability is to be our futures.

There is also another a paradox. I have met some social entrepreneurs who strike me a bit like saints but equally who after a while I find a bit tiring, just like I do if I have to listen to sermon too long at church. Every single second of Dr Yunus presence is fun; you never quite know what surprising common sense he's going to bowl at you next. I hope my inadequancy with words doesn't cast a wrong impression. I have literally seen Yunus shake hands with 500 people with as much enthusiasm greeting the 500th as the first. I do know quite where such an energy or love comes from but its certainly vaut le voyage.

Comment 21 on yunus/macrae 33 year index of entrepreneurial untruths

One of the fallibility's of our age is not the absence of freedom of speech for communicating social business concepts but the huge cost they have to bear to break through the noise. If public broadcasters like the BBC were even halfway fair about community and sustainability - the cost of connecting people around social business would be much less making sustainability suddenly easy for many desperately needed service purposes.

(Incidentally in USA it is coming up to that time of year when as I used to at onet I ask all american idol http://africanidol.tv fans to demand that the 2 simons and seacrests and bono do not repeat ast year's travesty where they raised 100 million dollars of funds primarily using childrens stories from Kibera slums and then apparently returned not 1 cent to grassroots charities giving it all to global-down NGOs)

BusinessWeek

When the Bottom Line Is Ending Poverty
BusinessWeek - Feb 29, 2008
While Gandhi's goal was the end of colonialism, Yunus' is just as grand: He means to reform capitalism to make it a tool for ending poverty. ... Wall Street Journal Weekend Feature : Nobel Prize Winner brings microcredit to New York City

Of course as we confront this media crisis, just as Gandhi had to, this is where Yunus is asking if you are 100% committed to a social purpose organisation, how can my brand, my moments of fame collaboratively help your start up? The Green Children is a most exciting story of 2 people whose social action linked round yunus in just under a year has achieved sufficient funds to extend the first aravind eyecare franchise outside of India and into Bangladesh- see the videos of both now starring at http://futurecapitalism.tv

Comment 22 on yunus/macrae 33 year index of entrepreneurial untruths

Likewise Chris, I'm tackling the Guardian about its limited POV chronicles on social enterprise and their motives in the Ugandan development project in Katine.

http://www.guardian.co.uk/katine

Comment 23 on yunus/macrae 33 year index of entrepreneurial untruths

Yunus book launches in France in about a week. The googlable French seem to be prepared to be much more innovative with Yunus -at least that's an impression which I hope turns out to get ever more purspoeful

The Social Purpose Companies Providing many examples, Muhammad Yunus shows that this new economic model can be applied throughout the world. In continuing the work begun by the spread of microcredit, the author hopes to put the talents lying dormant in every individual at the service of a goal: the eradication of poverty

Micro credit: the Quiet Revolution

Professor Muhammad Yunus is the pioneer of micro-credit and the Nobel Peace Prize 2006. He has just announced a joint venture with Credit Agricole. "That smile, combined with a look that is yours, is an invitation to act." This is how Rene Carron, the Chairman of Credit Agricole, praised Muhammad Yunus, the Bangladeshi otherwise known as the banker to the poor. Together, they are creating a foundation to support microfinance. This is the first time a major western bank agrees with the Grameen Bank, founded by Yunus.

Microcredit is a concept born 30 years ago. Today it extends $ 30 billion loans to 150 million customers. The potential for development is ten times higher. It is flowing from Asia to. Latin America, and Africa. More than that, Grameen Bank is begining to lend to poor Americans. And in France, there are organizations like Adie, the Association for the Right to Economic Initiative. Microcredit is Phase 1. Phase 2, there are micro-finance ie also: micro savings, micro insurance, mutual micro health… And finally, Muhammad Yunus believes in phase 3: a new capitalism, which would coincide with the 'poverty eradication.

Elements of Reflections of Capitalism Integral

. According to the UN, 20% of the richest of the world's population held in 1960, over 70% of the wealth of the planet, in the early 2000 this figure had risen to over 85%. The extreme inequality in the distribution of wealth strengthens the view that the poor, who represent more than three-quarters of the world's population cannot participate in the market economy. According to data from the World Bank persons earning less than $ 2 per day currently represent more than 4 billion people. If the current trend continues, they will be more 6 billion in the next 40 years, and the gap between rich and poor would lead to much more acute and a boomerang effect on the system incalculable: discontent, extremism, social decay, political chaos , terrorism, environmental destruction.

Despite this catastrophic result, the capitalist system has demonstrated an excellent ability in the efficient production of goods and services, contrary to various socialist experiments which have failed to fill the expectations in terms of productivity and wealth creation. We must lay the foundation for a new form of capitalism in order to reduce abject poverty in which live ¾ of the world's population, eliminate barriers and social privileges, set up structures for equal access to opportunities through the education and health, and to promote the inclusion of the poor in the new market dynamics. In this context, it is time to analyze the challenges of this new capitalism and the new strategies of globalization through a new vision of full capitalism.

Why Full Capitalism?

. Within this article we mean by full capitalism, a system that balances environmental and profit, profit and social development, equality and benefit, unlike the dominant logic in our country and elsewhere, which usually involves profit and wealth in the exploitation , theft and looting. In this sense, we are talking about a new form of capitalist organisation which is not concerned only growth markets of industrialized and emerging countries, but that facilitates the integration of billions of poor people in underdeveloped countries to the economy market and especially considers that the creation of wealth is at the base of the pyramid through fair trade, business investment, sustainable and responsible. The base of the pyramid is a concept developed by the Indian economist CK Prahalad to refer to 4 billion poor people living on less than $ 2 a day.

The investment of private enterprises in the base of the pyramid is conducive to free billions of persons in poverty, avoid political chaos, terrorism and environmental destruction. The base of the pyramid is a challenge strategic management for private companies selling to the poor by helping them to improve their living standards, by producing and distributing products and services sensitive to their culture, sustainable environmentally and economically profitable.

To assess the potential of this market, it is important to get rid of a set of assumptions and orthodoxies: The poor do not constitute a profitable market The poor will not be able to pay for goods The poor may not appreciate the new technology It is impossible to reconcile economic and social issues.

Investing in the market of the poor involves taking into account a set of basic conditions, namely: Creation of Purchasing power The creation of purchasing power depends on a process of capital of the poor from a credit policy appropriate. Historically the poor do not have access to commercial credit and banking. As demonstrated in the brilliant Peruvian economist, Hernando de Soto in his book, The Mystery of Capital: Why Capitalism Triumphs in the West and fails in the rest of the world, trade credit is the driving force for building a market economy. The access of the poor to credit is an essential tool for converting poor entrepreneurs flexible and active, and also to combat social exclusion. In this sense it means to bypass traditional barriers of conventional financial institutions and identify innovative strategies to facilitate access to credit to the people that are at the base of the pyramid. This is evidenced, for example, the experience of Grameen Bank Limited. Of Bangladesh, a pioneer in the use of micro lending to the poor, whose founder, Professor Muhammad Yunus, known as the banker to the poor, was awarded the Nobel Peace Prize in 2006. Grameen Bank Ltd has used an innovative strategy in its credit operations: borrowers must submit their proposals vetted and endorsed by 5 persons in the community. 5 These people should not talk about family relationships with the borrower. After the loan, commercial agents provide continuous tracking loans in order to promote the profitability of the project for which the loan was granted. Operations are carried out under a single management, in contrast to cumbersome bureaucratic procedures Traditional bank classic. The bank currently has more than 4 million customers and 1170 branches serving more than 40000 locations across Bangladesh. The repayment rate of Grameen Bank is comparatively higher than that of any other traditional financial institution.

Anticipating the needs

Move away at the base of the pyramid involves a great ability to anticipate the needs of this market and adapt policies accordingly. This factor requires the design of products culturally acceptable, and environmentally sustainable, through activities of studies and market development geared solely to the conditions and market realities. The electricity, water, refrigeration, the new information technology and communication is a source of opportunities for the marketing of a range of products services. For example, an NGO from the United States, Solar Electric Light (SELF), has developed an alternative system for the production of electric power in rural areas. The basis for this system is to generate energy through small units and renewable resources available at the community level. To sell this service to poor, rural communities in India, Sri Lanka, Vietnam and elsewhere, SELF used a credit policy which is to provide the financial means to the people so that they become owners and operators of the electrical system. This activity has been so successful that the company began to expand into other parts of the world.

Selling at a discounted price The conditions of sale on the market involve changing traditional patterns of cost to sell at a discounted price. Not sell at a price lower than its cost of production to make philanthropy, because the principle of free absolute never existed in any economic system, but sell at a price that takes into account the purchasing power of poor and that can generate acceptable profits in the context of the profits accruing from the benefits of economies of scale.

Reshaping Social

For more than 50 years, the donor nations, the World Bank, various aid agencies and national governments recently, civil society organizations have done their best, but they have been unable to eradicate poverty through policies they relate to social assistance to the poorest. To overcome poverty, it is important to break with this logic assistancialiste social policies. The new direction of social policy is to treat the poor not as an economic burden or as victims in need to attend all the time, but as flexible and creative entrepreneurs and as consumers integrated in the different phases of the market. It is to convert the poor as economic players in the production and wealth creation. As part of this redefinition, NGOs have a crucial role to play in articulating the social and the economic. Their mission is to use the principles of affirmative action to accompany the new market dynamics and narrow the gap between rich history and the poor through sustainable productive activities: Development activities aimed at capitalising on the poor; The transformation of productive resources into opportunities Training for the poor to become aware of their creative abilities; Networking communities to promote exchange under a fair trade; Market research, given the limited capacity of mobility of the poor; Community support in all phases of the contract to convert the poor as actors in the global economy.

Conclusion:

Capitalism integral part on the assumption that, despite the donations and funding from donors, the World Bank, donor countries, NGOs in the fight against poverty, they have proved unable to eliminate it, on the contrary it tends to grow stronger in the regions and programs are most visible and operable. Economic liberalism has created the optimal conditions for productivity, but was unable to manage the economic division of property with equity socialist planning could make conditions more or less fair for the sharing of wealth through social policy, but could not meet the expectations in terms of productivity and wealth creation. The fight against poverty will be effective in so far as the poor are considered not as a burden or as victims to be present at the government, NGOs and civil society, but as genuine economic actors integrated in the different phases of the activities of market through: A process of capitalization through a credit policy adapted; Product design tailored to the needs and conditions of the poor; Planning a flexible pricing system that takes into account the low purchasing power and which promotes the benefits of economy of scale; The redefinition of a new vision of social policy which tends to break with the logic assistancia

Comment 24 on yunus/macrae 33 year index of entrepreneurial untruths

Synchronicity - today, in the Washington Post:

"The United States is a rich and strong country, but even rich and strong countries squander trillions of dollars at their peril. Think what a difference $3 trillion could make for so many of the United States' -- or the world's -- problems. We could have had a Marshall Plan to help desperately poor countries, winning the hearts and maybe the minds of Muslim nations now gripped by anti-Americanism. In a world with millions of illiterate children, we could have achieved literacy for all -- for less than the price of a month's combat in Iraq. We worry about China's growing influence in Africa, but the upfront cost of a month of fighting in Iraq would pay for more than doubling our annual current aid spending on Africa."

"Closer to home, we could have funded countless schools to give children locked in the underclass a shot at decent lives. Or we could have tackled the massive problem of Social Security, which Bush began his second term hoping to address; for far, far less than the cost of the war, we could have ensured the solvency of Social Security for the next half a century or more."

http://www.washingtonpost.com/wp -dyn/content/article/2008/03/07/ AR2008030702846.html

Which takes us back 12 years with the pitch to Clinton:

http://www.p-ced.com/History/tab id/57/Default.aspx