I’ve just returned from almost three weeks in India, where I met potential investees for our energy portfolio. There is so much happening in India, and it really seems like we have a few good opportunities in front of us. 

One thing I found fascinating is the fact that almost everyone I met wanted to talk about the Reliance Power IPO and Tata Nano $1000 car, both of which hit the news while I was there. These two events have really captured the imagination of an entire subcontinent. People of every economic class were proud and felt like these were their own successes, even though for most Indians, the economic connection to both was quite distant. It was a reminder that the desire in all of us to find successes that we can relate to and share in is extremely powerful. It is a core tenet of Acumen Fund’s philosophy and a central part of our work in helping form new companies & institutions

The January 19 edition of The Economist contains a special report on corporate social responsibility. Several long and interesting articles, some with conflicting perspectives, but a few points emerge. First, CSR is moving slowly but inexorably to the mainstream corporate agenda. There are many arguments about what it should be called (corporate responsibility, corporate citizenship, building a sustainable business) but CSR is increasingly seen as just good business. That said, there is still a significant cadre of doubters whose core argument is that corporate executives should not be spending other people’s money on CSR—their job is to be making money for the shareholders. Period.

In one article, Nike’s VP of corporate responsibility, Hannah Jones, talks about CSR as a source of innovation for companies. Instead of spending her time at CSR conferences full of other corporate folks, she prefers to focus on interacting with the social entrepreneurs and in helping to reap both social and financial returns.

“Do it right,” the last article in the section, really resonates with us here at Acumen. It asks the question that, assuming this trend corporate “goodness” continues, where will it evolve? Some believe it is the social entrepreneur who has “cracked the code” with an approach which is for-profit and self-sustaining. The approach “brings financial rigour as well as an appreciation for risk…and can teach the big companies a thing or two about how to measure the success of social investments.”

(Photo: Gabriel Kadidi)
It has been several weeks since both Pakistan and Kenya began to experience political and social unrest. As Jacqueline initially reported (here and here), Acumen Fund’s communities on the ground remain safe, but the environment in both countries has taken a decided turn for the worse.

The past weeks in Kenya have been heartbreaking. Tremendous excitement about an election year has turned to frustration over the process and its impact on the country’s stability.  Kenya was on the rise as an economic model for East Africa. Acumen Fund investee Jamii Bora had overcome legal obstacles to begin to realize the dream of Nairobi’s poorest to build a new town for its members. By December, nearly 500 homes were under construction…Dedan — JB’s bicycle messenger who had lost a leg as a young boy — had qualified to compete in the Beijing Paralympics. There was a sense of forward progress and real opportunity. But the view held by many involved in Jamii Bora’s work has now been turned upside down.

First, there is an unexpected stop-work order on the construction of Kaputiei town. Just before Christmas, an opposition group threatens to dismantle JB’s proud new homes. Then, the presidential election. What initially appear to be containable pockets of rioting in the urban slums yields to myriad disruptions throughout the country, opening up historical political grievances and tribal tensions in the worst cases. Particularly in the slums, there are accounts of looting, people being killed and maimed, homes and businesses being destroyed. By year’s end, Ingrid Munro, Jamii Bora’s trustee, writes: “Hell has broken out. President being sworn in at this moment. Pray for us.” 

We reach out to our friends and colleagues at Jamii Bora. Ingrid, Consolata, Kennedy, Elijah, Richard … they all respond. Joseph – no reply, Gabriel – no reply. Both Joseph and Gabriel are Kikuyus living in the heart of the Kibera slum.  (more…)

Yesterday’s New York Times included an interesting article about Egypt’s subsidized bread program. It underscores potential pitfalls of huge government subsidies and is worth reading.

The mobile phone has established itself as the communication and networking platform of choice for billions of the world’s consumers, most of whom are at the base of the global economic pyramid. The ubiquity of mobile phones has led social sector organizations to begin leveraging this communication tool in pursuit of their missions. What are some of the leading uses of the phone and how successful have they been? And, equally importantly, how can your own organization start to take advantage of this trend?

A draft white paper by former Acumen Fellow David Lehr has just been posted to our website that describes emerging trends and possible constraints in this area. It addresses the implications and opportunities for social sector organizations, development experts, technology innovators and service providers who can no longer ignore the billions of consumers who are, quite literally, waiting for their call. The question of whether or not these consumers can be reached has been asked and answered. Now it is time to start delivering the data, services and economic development they demand.

Marketing guru and longtime Acumen Fund advisor Seth Godin is now a superhero action figure (the mismatched socks are a particularly realistic detail).  And in true super form, he’s sending the profits from the proceeds to none other than Acumen Fund. Our hero!

This LA Times article on mission-related investing highlights some of Acumen’s partners like the Rockefeller and Kellogg foundations. We applaud the shifts we’re seeing in philanthropy that recognize the power of investing to effect change – as well as the need to align philanthropic goals with the many tools that foundations have, including their investing ability.

I know I just wrote about the unrest in Pakistan, so it pains me to reach out to our community to write today about Kenya. As you know, there has been a great deal of violence and unrest since the recent election in Kenya. Much of the violence has occurred in the slums where I worked twenty years ago and where some of our investees are working hard to effect change today. Just so you know, our team and our Fellows are safe, and today in Nairobi, most offices, including ours, were open and functioning.  Tomorrow, a million-man march is expected, and we will be keeping close tabs on the situation. At the same time, some members of Acumen investee Jamii Bora have seen their businesses hurt or destroyed. These are people who have made great strides through their own efforts and hard work since I worked in those slums more than two decades ago, and so it is more important than ever to ensure that peace is restored so that people can be helped to recover their losses and get back on track. (more…)

At the beginning of each year, the Acumen Fund team selects a quote that inspires, enlightens or informs to share with our community. This year’s favorite:  The real voyage of discovery consists not in seeing new landscapes but in having new eyes. - Marcel Proust

We wish you all the best for a year of seeing and connecting in new ways.