Community Development
White Papers
Value Chain Upgrading
This paper introduces several methods for increasing the farmer's relative power in an agricultural supply chain. Only by doing so can more of the final product value accrue to his community.
The paper further describes the elements of a 'social business' which is the best means of commercializing the methods described.
This paper introduces several methods for increasing the farmer's relative power in an agricultural supply chain. Only by doing so can more of the final product value accrue to his community.
The paper further describes the elements of a 'social business' which is the best means of commercializing the methods described.
Revolving Aid Fund
Most developing economy aid has a temporary impact on the recipient community, as is well documented in recent literature on the subject. This paper proposes a hybrid approach merging the best of micro-credit with venture capital by creating a revolving aid fund.
Aid funds that would normally be spent on distribution of seeds or water systems instead are directed into a social business. The profits from the business are then used to do the same community projects, but now they are sustainably financed.
Most developing economy aid has a temporary impact on the recipient community, as is well documented in recent literature on the subject. This paper proposes a hybrid approach merging the best of micro-credit with venture capital by creating a revolving aid fund.
Aid funds that would normally be spent on distribution of seeds or water systems instead are directed into a social business. The profits from the business are then used to do the same community projects, but now they are sustainably financed.
If you give a man a fish, you feed him for a day.
But if you give him a fishing rod, you feed him for a lifetime.
PBV has proposed a new model for rural agricultural community development in less developed countries that facilitates economic sustainability and reduces need for recurring donor aid. These proposals are documented in our white papers.
Capitalism based on competition remains the best model for allocating capital in an economy, but it has to be applied on a level playing field. Too many subsistence farmers lack cultivation best practice, aggregation, visibility of demand signals in their supply chains, and market pricing power. This is addressed by moving value-added processing closer to their communities, creating social businesses to manage product flow and dissemination of best practice, and reinvesting profits back into the communities. Micro-credit works at a household level. We have proposed a new approach for investing at the community level that is ultimately cost neutral for donors.
Value chain upgrading must be coupled with reliable startup funding, the largest component of which is typically accounts receivable financing. We recommend that government aid donors like USAID and BMZ (Germany) create a revolving aid fund for community social business investment, with the intent that profits are returned to the fund to ensure its ability to invest in subsequent projects.
But if you give him a fishing rod, you feed him for a lifetime.
PBV has proposed a new model for rural agricultural community development in less developed countries that facilitates economic sustainability and reduces need for recurring donor aid. These proposals are documented in our white papers.
Capitalism based on competition remains the best model for allocating capital in an economy, but it has to be applied on a level playing field. Too many subsistence farmers lack cultivation best practice, aggregation, visibility of demand signals in their supply chains, and market pricing power. This is addressed by moving value-added processing closer to their communities, creating social businesses to manage product flow and dissemination of best practice, and reinvesting profits back into the communities. Micro-credit works at a household level. We have proposed a new approach for investing at the community level that is ultimately cost neutral for donors.
Value chain upgrading must be coupled with reliable startup funding, the largest component of which is typically accounts receivable financing. We recommend that government aid donors like USAID and BMZ (Germany) create a revolving aid fund for community social business investment, with the intent that profits are returned to the fund to ensure its ability to invest in subsequent projects.
A Better Approach to Development Aid
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Pacific Business Ventures
Community Development
The Social Business Revolving Aid Fund: A Tool for Economic Empowerment in Lesser Developed Countries
Economic Empowerment in the Agricultural Supply Chains of Lesser Developed Countries