Inclusive Business at the Base of the Pyramid A Possible Investment Area for ADB. in Viet Nam and beyond ADBIMPUSNY Inclusive Business Investment Forum Friday, 1 April 2011, Ho Chi Minh City Why should the private sector help making growth more inclusive ? Traditional entrepreneurs are motivated by profit making! But the private sector has also a key role in poverty reduction =. Itis the mejor provider of employment, services and goods that help the poor = Social entrepreneurs are emerging as a riew business culture = Makes sense from the business point of view, as the market potential atthe base of the population pyramid is huge and often not ‘explored by the private sector In Asia, more than 50% ofthe population live on les then $2 8 day, + Wore Bank estimates fr global BoP markets: §20 bili fr water- Telated project, 857 blfon for ICT, $158 tion for health and protection programs, $179 blion for transportation, $232 billion for Frousing, $429 billon forthe poo’ eneray needs, $2,895 ilion for dressing lowsincome nousshold food needs + Purchasing power of the BoP marketin Viet Nam is estimatedBoP Inues the por (62 tertonal over Ine, aute o county see station) nthe or rd oxo (ner) 2 rete (urea Ereoreee ‘tpt mambo thas groupe pretusion an mara procter Ie about products, sree, obs, and nome tht ‘po! (20 Sowa hap igh derlpnant an rout procee ma ada 2 Hebel ee amen sls to coca ret ct, eves ond rote business le nat hn re eno poe 2 rectevomsl oscar enpleyment cl ft eb ween maser eles) 2 Stance manees ropes oral an atone many of hm meu sd ferge Sea prong fore oral sad expt ark = Coverment has so ole payor DB commas Why @ New Asset Class?+ Nopre ‘© CK Praha (2002): The Fortune atthe Botiom of te Pyramid > rmultnalonal ‘Sompaniss shoul explore tha market oft lowes Inearre Subs © World Bank IFC: (2007): The Next 4 Bilin. ipuiuwordbank orgfthenextébilion. © Donors end sponsors are increasingly interested saF (Vat Na Mare ere Poe pdms 8b ate tcraton asia oseeneantartesyart $B. Gps ene es (en aura learn cactus a (Beco ape SEE seals Pre scan.) nt FICES Berea bere reer sc summae nae mara ence EC cantante so 200 y SSNS {et estree Cal Asn fpnantorexeatvasten Oar Buns wr te P es ent essa thts leat acaisualseausoexeancaancas ine ei an a! dveloprestben: SERaN (oemany, PROPARCD Pert ears urna 2 sere fun cae phareepi eparios, fam for Asi yt, but some private Secor eiven Inaves i. Aen ‘Ne progam for Asia et, but some private Secor ven na Preparatory technical assistance (2010-2011) = Purpose: explore the opportunity of creating a multi-country investment fund by ‘© scoping surveys and impact assessment, enterprise feasibly studies, information sharing and partnership building = Partnership: core (ADB, SNV, WBCSD, WDI); others = Bangladesh, India, Indonesia, Pakistan, Philippines, Viet Nam Inclusive Business Investment Funds for 6 (+) countries: ‘ADB: §100 milion + others $490 milion; fund manager; 2012-2020 Inclusive Business Incubator gE technical assistance, 2012-2015Purpose: mace ndusve business vers and cols re suranae utoom Reducing Investment risks in inclusve busines > Soapeeern etree ere rt eee Serene eee comin eens nopn etre Seo Brokering BoP investments and partnerships: > Petpeatip sg rtf BP vetoes Faas tng anes wh Spotpepere y Factitaing government actons to support Inusive business through pubic polcy dialogue and advo: > nacre ing orem bt ens Capel rg ESSERE SINS ae ia ety dooming Promoting inclusive growth impact reporting and networking > gosta in ce tes ez enact apnoea nl wedi oe liaeaee hinmor nine eremm oe eo nein eres Eerste wee wih be ae nengar More information hitp/ladbweb/projects/B: dldefaul.asp SNV and BoP http:tiwww.snvworld.orgien/ourworkiPages/ipclusivebusiness.aspx WI and BoP http:www.nextbilion.net); | WBOSD and BoP: hitp:!waw.wesd.org/templates/TemplateWBCSDS\layoutasp?MenuID=1 BaueriMorales (Mar 2011): Examples of IB Models World-wide Other publications: IFC / World Bank, UNDP, Monitor Group, DFID, SIDA, ‘SECOIDEZA, ADBIDFID: Markets for the Poor Initiative (M4P, Viet Nam), DANIDA program (Viet Nam}, [ADB