Region

Asia

Training programs

Description

Vocational skills are key to enabling the BOP to participate in value chains. Low productivity linked to the lack of marketable skills acts as a significant barrier towards inclusive business growth. In this context, vocational training is an important precursor to BOP participation and to inclusive growth.

Partnerships with different stakeholders, in particular with the private sector, can assist in skills-needs identification, curriculum development, training delivery, as well as certification and assessment processes to ensure that vocational training is aligned with market demand and subsequently leads to employment. The private sector can also be involved by providing internships, apprenticeships, and job opportunities as well as coaching and mentoring support.

Policy Instruments: Countries: Topics:

Awareness raising with in the BOP

Description

While some products are widely available in BOP markets, other basic goods are largely unknown. As a result, BOP consumers can be unaware of their benefits. For example, BOP customers may be unaware of the connection between unsafe drinking water and various diseases. Consequently, inclusive businesses not only have to market their goods, they also have to conduct extensive education campaigns. This can often be prohibitively costly. Governments can help to raise awareness among the BOP, as they are often viewed as being more credible.

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End-user subsidies

Description

Subsidies are typically provided to stimulate demand for products that have socially desirable outcomes. In the past, subsidies on goods have often been provided to the companies that produce them. Governments are increasingly seeking to bolster market forces and stimulate competition among firms by providing subsidies directly to the products’ users. These kinds of subsidies may also drive user-oriented innovation and efficiency gains. Subsidies can also play an important role when users need some initial experience in order to grasp a product’s benefits or where positive external effects exist. As consumers adapt to the new product, subsidies can be rolled back or discontinued.

Vouchers are one method by which to administer “smart” subsidies to end customers. Vouchers have the advantage as compared to cash transfers that their use is predefined, thus directing expenditure towards the specific products or services with the desired social benefits. Moreover, voucher schemes can represent a partial subsidy, which – unlike giving out products for free – allows firms to gauge user demand and willingness to pay. The level of the subsidy can subsequently be reduced over time as customers start to recognize the value of the products.

Policy Instruments: Countries: Topics:

Innovar juntos - estrategia de fomento de los nuevos modelos de economía social e inclusiva a nivel internacional (Gobierno de Francia)

En los países del sur, los modos de desarrollo actuales debilitan el entorno social y ecológico. La pobreza, la exclusión, el trabajo precario, la sobreexplotación de los recursos naturales y la contaminación constituyen amenazas a la esperanza de una vida digna para cientos de millones de personas y ponen en peligro el futuro del planeta. Por ello, es urgente «actuar de otro modo».

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Innover Ensemble - Stratégie de promotion des nouveaux modelés de l’économie sociale et inclusive à l’international (Gouvernement de la France)

Dans les pays du Sud, les modes de développement actuels fragilisent l’environnement social et écologique. La pauvreté, l’exclusion, le travail précaire, la surexploitation des ressources

naturelles et la pollution sont autant de menaces qui compromettent tout espoir de vie décente pour des centaines de millions de personnes et mettent en péril l’avenir de la planète. Il est

donc urgent d’« agir autrement ». 

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Innovating Together - Promotion Strategy for New Social and Inclusive Economy Models Abroad (Government of France)

Background

In developing countries, current development models weaken the social and ecological environment. Poverty, exclusion, insecure employment, overexploitation of natural resources and pollution are all threats that compromise any hope of a earning a reasonable standard of living for hundreds of millions of people and put the future of our planet in danger. We urgently need to “act differently”. 

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Preferential Public Procurement - Policy Case Study on Inclusive Business

Introduction

What is the objective and purpose of preferential public procurement?

Public procurement is the process by which government and public entities purchase goods, services, capital and technologies for their own or public use. Government is the largest single buyer of goods and services in most economies, with expenditures by governments often amounting to 20% to 30% of GDP.

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Insurance Schemes - Policy Case Study on Inclusive Business

Insurance programmes for people at the bottom of the economic pyramid (BOP) empower them to participate in markets by protecting them against risks such as illness, injury, damage, or loss. People at the BOP are often more vulnerable to such risks because they are less able to cope with the financial burden caused by unexpected occurrences. Despite this, the BOP is typically ignored by mainstream commercial insurers. Micro-insurance schemes are built to cover people excluded from statutory social security, especially workers in the informal economy and their families.

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Challenge Funds - Policy Case Study on Inclusive Business

“Enterprise challenge funds (ECFs) provide grants or subsidies with an explicit public purpose between independent agencies with grant recipients selected competitively on the basis of advertised rules and processes who retain significant discretion over formulation and execution of their proposals and share risks with the grant provider." ECFs invite companies working in a targeted field to submit project proposals for inclusive business models that aim to solve a specific development problem and generate high pro-poor impact.

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Company Survey 2016