ALTERNATIVE MODELS FOR TIER TWO MARKET DEVELOPMENT

1. ALTERNATIVE MODELS FOR TIER TWO MARKET DEVELOPMENT THE HAGUE 6-7 OCTOBER 2005 JERRY CHAMBERS ACCESS INTERNATIONAL LLC

2. ILLUSTRATIVE EXAMPLES OF ALTERNATIVES TOPSI & IPPF ICON TIER TWO MODELS • MOROCCO KINAT AL HILAL PROJECT • INDIA GOLI KE HOMJOLI PROJECT • BANGLADESH SOCIAL MARKETING COMPANY • HINDUSTAN LEVER PROJECT SHAKTI

3. UNDERLYING BELIEFS FOR PRIVATE SECTOR ENGAGEMENT IN DEVELOPMENT AGENDA • The RHSC should honor the pledge of the ICPD Program of Action to engage the private sector as stakeholders in RH commodity security deliberations • The private sector can contribute to social development even if governed by business objectives • Any sustainable initiative from the private sector will be sustainable and scalable only if it makes business sense

4. DEFINITION OF THE PRIVATE SECTOR • Commercial Firms • Social Marketers • Pharmacists and Drug Vendors • Doctors and Midwives • Rural Practitioners/Traditional Healers • NGO Community • Local Societies/Parastatals • Informal Sector/Self Help Groups • Local Businesses (Providing a Platform) • Transnational Corporations • Generic Hormonal Manufacturers • R&D-Based Hormonal Manufacturers • Companies with Complementary CSR Programs

5. MOROCCO KINAT AL HILAL • USAID FUNDED SOCIAL MARKETING CAMPAIGN TO PROMOTE USE OF ORAL CONTRACEPTIVES • UMBRELLA BRAND DEVELOPED FOR TWO PILLS * MINIDRIL (WYETH) * MICROGYNON (SCHERING) • USAID PROVIDED TA FOR MARKETING & PROMOTION • MANUFACTURERS AGREED TO KEEP THEIR OC PRICES DOWN TO LOW INCOME CUSTOMERS • MANUFACTURES AGREED TO CONTRIBUTE A PERCENTAGE OF PROFITS TO SUPPORT ADVERTISING CAMPAIGN

6. INDIA GOLI KE HOMJOLI PROJECT • “FRIENDS OF THE PILL” CAMPAIGN INITIATED BY ICICI BANK AND TA PROVIDED BY USAID • FOCUSED ON URBAN AREAS OF EIGHT HINDI SPEAKING STATES IN NORTHERN INDIA • AFTER FIVE YEARS: • IMPROVED ATTITUDES TOWARDS OCs • USE INCREASED FROM 4% TO 11% • IMPROVED KNOWLEDGE AND ATTITUDES BY PROVIDERS • SALES OF ALL OCs INCREASED BY 48% vs 0% IN NON-TARGET AREAS • IN TERMS OF VALUE THE MARKETS GREW BY 110% • LAUNCH OF NEW OC BRANDS AND SIGNS OF PRIVATE SECTOR INVESTMENT

7. THE SOCIAL MARKETING COMPANY OF BANGLADESH • ACCOUNTS FOR ABOUT ONE-THIRD OF NATION’S CPR FOR MODERN TEMPORARY SPACING METHODS • 180,000 RETAIL OUTLETS * DISTRIBUTE SEVERAL BRANDS OF PILLS AND CONDOMS FOR SPECIFIC MARKET SEGMENTS * PRICES RANGE FROM VERY LEVELS TARGETING THE POOR, TO MODERATE LEVELS, WHERE THE BRANDS CAN GENERATE SOME PROFIT * COMMERCIAL DISTRIBUTOR FOR WYETH LINE OF ORAL CONTRACPETIVES • SMC PROJECTED GROWTH AT 30% - 50% PER YEAR • MOVING TOWARD SUSTAINABILITY

8. PROJECT SHAKTI: A RHSC OPPORTUNITY • Unilever/Hindustan Lever commercial & social initiative • Shakti impacts rural society through four interventions: • The Shakti Entrepreneur model creates income-generating opportunities for underprivileged rural women • The Shakti Vani program improves rural living standards through the spread of health and hygiene awareness • The i-Shakti is a community portal that empowers rural community by creating access to relevant information • The e-Shakti initiative seeks to enhance functional literacy among rural Indian women

9. PROJECT SHAKTI KEY ELEMENTS • WORK WITH WOMEN TO FORM SELF-HELP GROUPS IN THE SMALLEST VILLAGES OF INDIA • HLL APPOINTS WOMEN AS SHAKTI ENTREPRENEURS (SE) • SE’S ARE SUPPLIED PRODUCTS AT THEIR DOORSTEP • SELL WITHIN CLUSTERS OF 3-6 VILLAGES • AVERAGE EARNINGS OF Rs 700-1,500 PER MONTH ---OFTEN DOUBLING HOUSEHOLD INCOME • PRESENTLY 15,000 ENTREPRENEURS COVER 61,400 VILLAGES • 2010 GOAL: 100,000 ENTREPRENEURS COVERING 500,000 VILLAGES REACHING 600 MILLION PEOPLE

10. I-SHAKTIBRIDGES THE DIGITAL DIVIDE & EMPOWERS THROUGH INFORMATION • A local language, audio-enabled, rural community portal that creates access to relevant information • Computers are set up in Shakti Entrepreneur’s home • Visitors browse by content: health, agriculture, employment • Visitors can post queries, which are answered by experts • Leverages cross sector partnerships: government, corporate, NGOs • 400 i-Shakti kiosks have been set up in partnership with government of Andhra Pradesh • 2010 goal: 6,000 i-Shakti kiosks across India

11. e-Shakti • Care India Partnership • Trains Shakti Entrepreneurs to run a functional literacy program for village women • Covers basic literacy, banking, micro-credit, and health & hygiene

12. SHAKTI VANI • A health and hygiene communication program targeted at the rural community • Village women recruited as Vanis (‘Voice’) and trained on matters relating to health and hygiene • Travel from village to village addressing young mothers, school children, local opinion leaders, self-help groups and general public • Currently Project Shakti Vani covers 10,000 villages • Goal: scale up to 100,000 villages covered 2010

13. The above quote is from Paul Wolfowitz arguing that until more is done for the emancipation of women, much of the Bank’s development effort will be futile. “…Development is like a two wheel barrow. The two wheels are man and woman; if they don’t turn together, there will never be development.”

14. CONCLUSIONS • There are lots of ways to look at tier two market development • ICON and PSI are options presently under consideration by TMA Working Group • Kinat Al Hilal, Goli ke Homjoli, SMC and Project Shakti are other optionsand PSP-One will be initiating other models • Does this group want to consider options other than PSI/ICON for tier two market development?