ProdukHukum BankIndonesia

“Financial Product Innovation as the Reaction to
Climate Change”

A Moment of Opportunity
2 August 2008
Bank Indonesia Annual International Seminar
“Macroeconomic Impact of Climate Change:
“Opportunities and Challenges”
Bali. Indonesia
1-2 August 08

Millennium Development Goals
#1 Eradicate Extreme Poverty and Hunger
#7 Ensure Environmental Sustainability
#8 Develop a Global Partnership for Development

ECONOMY

ENVIRONMENT

ENERGY


SUBSIDY / AID IMBALANCE

TRADE IMBALANCE

ENERGY CONSUMPTION

PARTERSHIP MODEL: A Different Vision
Fortune at the Bottom of the Pyramid: A Mirage
Aneel Karnani

“The popular 'bottom of the pyramid' (BOP) proposition argues that large
companies can make a fortune by selling to poor people and simultaneously
help eradicate poverty. While a few market opportunities do exist, the market at
the BOP is generally too small monetarily to be very profitable for most
multinationals. At the same time, the private sector can play a key role in
poverty alleviation by viewing the poor as producers, and emphasize buying
from them, rather than selling to them.”

The New / Old Approach: CoCreation

The Base of the Pyramid Protocol: Toward Next
Generation BoP Strategy 2.0 Edition 2008
Erik Simanis & Stuart Hart

Base of The Pyramid Protocol
Business Partner
Intense Dialogue
Far Ranging & Imaginative
Two-way Commitment
Direct Personal Relationship

TRIPLE BOTTOM LINE
ƒ Financial Returns
ƒ Social Benefits
ƒ Environmental Benefits
“The only way to help the poor and alleviate poverty is to
raise the real income of the poor. There are only two ways
to do this:
1) lower prices of the goods that the poor buy, which will in
effect raise their income, and

2) raise the income that the poor earn.”
Aneel Karnani

Kathleen Robbins
Director of Clean Energy
GreenMicrofinance
[email protected]
www.greenmicrofinance.org

"Social entrepreneurs aren't content to
just give people a fish, nor to just teach
them to fish. They will not rest until they
have revolutionized the fishing industry."
Bill Drayton Founder Ashoka