The Asian Productivity Organization (APO) is an intergovernmental organization committed to improving productivity in the Asia- Pacific region. Established in 1961, the APO contributes to the sustainable socioeconomic development of the region through policy advisory services, acting as a think tank, and undertaking smart initiatives in the industry, agriculture, service, and public sectors. The APO is shaping the future of the region by assisting member economies in formulating national strategies for enhanced productivity and through a range of institutional capacity building efforts, including research and centers of excellence in member countries. APO members Bangladesh, Cambodia, Republic of China, Fiji, Hong Kong, India, Indonesia, Islamic Republic of Iran, Japan, Republic of Korea, Lao PDR, Malaysia, Mongolia, Nepal, Pakistan, Philippines, Singapore, Sri Lanka, Thailand, and Vietnam. RICHES AT THE BASE OF THE PYRAMID ALLEVIATING POVERTY WITH GREEN PRODUCTIVITY AND SUSTAINABILITY OCTOBER 2019 | ASIAN PRODUCTIVITY ORGANIZATION Riches at the Base of the Pyramid Alleviating poverty with green productivity and sustainability Prof. Allen H. Hu served as the volume editor. First edition published in Japan by the Asian Productivity Organization 1-24-1 Hongo, Bunkyo-ku Tokyo 113-0033, Japan www.apo-tokyo.org © 2019 Asian Productivity Organization The views expressed in this publication do not necessarily reflect the official views of the Asian Productivity Organization (APO) or any APO member. All rights reserved. None of the contents of this publication may be used, reproduced, stored, or transferred in any form or by any means for commercial purposes without prior written permission from the APO. Designed by Convert To Curves Media Private Limited CONTENTS LIST OF TABLES V LIST OF FIGURES VI FOREWORD IX PREAMBLE XI CHAPTER 1. INTRODUCTION 1 Overview of BoP Markets 2 BoP Markets in Asian Countries 3 Business Strategies for BoP Markets 5 The Objective of This Project 6 Summary on BoP Practices in APO’s Member Countries 8 India 9 Indonesia 10 Malaysia 11 Philippines 13 Thailand 15 Vietnam 17 References 19 CHAPTER 2. COUNTRY REPORT - INDIA 21 Executive Summary 21 Introduction 22 BoP Cases 32 Lessons Learned, Recommendations, and Conclusion 45 References 46 CHAPTER 3. COUNTRY REPORT - INDONESIA 48 Executive Summary 48 Introduction 48 BoP Cases 59 Lessons Learned and Recommendations 70 References 71 CHAPTER 4. COUNTRY REPORT - MALAYSIA 74 Executive Summary 74 Introduction 74 BoP Cases 81 Lessons Learned and Recommendations 95 References 96 CHAPTER 5. COUNTRY REPORT - PHILIPPINES 98 Executive Summary 98 Introduction 98 Social Problems/Issues Related to Poverty 99 BoP Cases 102 Lessons Learned and Recommendations 118 References 120 CHAPTER 6. COUNTRY REPORT - THAILAND 122 Executive Summary 122 Introduction 122 BoP Model as a Business Strategy 127 Lessons Learned on Public/Private Initiatives Promoting the BoP 141 Recommendation on Undertaking Research Based on Results 142 References 142 CHAPTER 7. COUNTRY REPORT - VIETNAM 143 Executive Summary 143 Introduction 143 BoP Cases 149 Lessons Learned 163 Recommendation 164 References 166 LIST OF CONTRIBUTORS 167 LIST OF TABLES Table 2.1 Annual growth rate of GDP (adjusted to price changes per capita) ...................................................26 Table 2.2 Annual estimates of GDP at current prices 2011–12 series ....................................................................26 Table 2.3 Some initiatives of the government of India on poverty eradication .................................................30 Table 2.4 Summary of presented case studies .............................................................................................................32 Table 2.5 S.W.O.T. analysis .................................................................................................................................................45 Table 3.1 Indonesia population by island in 2015 (Projection) ...............................................................................50 Table 3.2 Top ten provinces in poverty in Indonesia as of 2015 .............................................................................51 Table 3.3 Poor and nonpoor household characteristic in Indonesia in 2013–2014 ...........................................53 Table 3.4 Indonesia poverty line for urban and rural area in 2013–15 ..................................................................58 Table 3.5 Indonesia highest and lowest poverty line for urban and rural area in 2015 ....................................59 Table 3.6 Analysis of BTPN syariah community-based banking business ............................................................62 Table 3.7 Analysis of the low-cost sanitation business ..............................................................................................66 Table 3.8 Analysis of Sumedang Tofu business............................................................................................................69 Table 6.1 Thailand economic conditions in 2015 .....................................................................................................123 Table 6.2 Steps of implementation ..............................................................................................................................135 Table 6.3 Direct and indirect effects ............................................................................................................................138 Table 6.4 Products of the villages ................................................................................................................................139 Table 7.1 Comparison of GDP per capita of Vietnam and selected countries in Asia (1980–2014) ............144 Table 7.2 Poverty indicators of Vietnam (%) ..............................................................................................................144 Table 7.3 Current situation of the project ..................................................................................................................153 Table 7.4 Implementation capital for planting medicinal plants in Lao Cai Province ...................................160 RICHES AT THE BASE OF THE PYRAMID | V LIST OF FIGURES Figure 1.1 Global BoP market and its segments by income ....................................................................................2 Figure 1.2 Estimated global BoP market by sector ....................................................................................................3 Figure 1.3 Total BoP spending by the BoP segment in Asia ....................................................................................3 Figure 1.4 BoP market in Asia and total spending in ICT sector for India ...........................................................4 Figure 1.5 BoP market in emerging Southeast and East Asia .................................................................................5 Figure 1.6 Participants of the Research on GP for the Base of the Pyramid for Sustainable Development in APO Member Countries held in May 2016, Taipei. .................................................8 Figure 2.1 BoP market complexity and challenges .................................................................................................24 Figure 2.2 Poverty rates in India (2012) ......................................................................................................................28 Figure 2.3 d.light solar lantern in use in the village ................................................................................................34 Figure 2.4 Prof. Sadhan K. Ghosh delivered the inaugural speech to encourage BGB members ................35 Figure 2.5 BGB business model for the BoP group in India ...................................................................................36 Figure 2.6 Inauguration of Bachat Bazar and BGB training center in 2010 .......................................................37 Figure 2.7 Handicraft bag manufactured by BoP group of people and displayed in a stall in Poush Mela (fair) at Shantiniketan, West Bengal ..................................................................................39 Figure 2.8 The status of the bamboo handicraft business by the BoP group ..................................................40 Figure 2.9 a) The stitching machine and the frame used by the workmen for making design on sharee, b) Threads for making design, c) Basic sewing machine for design. ...............................................41 Figure 2.10 Various HUL's brands ...................................................................................................................................44 Figure 3.1 Indonesia population’s projection till 2035 ...........................................................................................50 Figure 3.2 Logo of government programs to reduce poverty in Cluster I .........................................................54 Figure 3.3 Types of family cards for low-income households ..............................................................................55 Figure 3.4 PNPM Mandiri, a government program to reduce poverty in Cluster II .........................................56 Figure 3.5 KUS is a government program to reduce poverty in Cluster III ........................................................56 Figure 3.6 A patron visiting a microscale businesswomen group ......................................................................60
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