poverty hedging_catalysts for change zone of future innovtion
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© 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B© 2013 Institute for the Future. All rights reserved. SR-1563B
March 2013
Foresight Engine Game Analysis:
25 Zones of Future Innovation
© 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B
A project by Institute for the Future and The Rockefeller Foundationwww.iftf.org/our-work/global-landscape/catalysts-for-change/catalysts-zones-of-innovation
Contact: Tessa Finlev, [email protected]
© 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B
15 | Poverty Hedging
2
© 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B
Beyond the world of microfinance and
other methods of building inclusive finance
lies poverty hedging.
Much as insurance, social security, and other
systems were built to protect people against
falling into poverty, there will be a move toward
building programs to prevent children born into
financial poverty from staying there. Poverty
hedging will range from government-
sponsored programs to international
development projects and more traditional
financial inclusion work aimed at providing an
opportunity for self-supported poverty hedging.
3
15 | Poverty Hedging | Future Innovation
© 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B
© 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B
The monetary side of poverty was a major point of debate throughout the
Catalysts for Change game.
Players wanted to know how we get more capital into the hands of the poor. Ideas
ranged from the theoretical, like rethinking our financial system away from constant
growth toward a currency tied to energy creation, to the more pragmatic, like
turning microcredit borrowers into eventual lenders and tying traditional savings
methods to modern banking systems. One player took these innovations to a new
level, suggesting we create a financial market to hedge against poverty where the
profit is donated to poverty alleviation efforts.
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15 | Poverty Hedging | From the Players
© 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B
© 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B 5
Create annuities/instruments to hedge for your own poverty. E.g. pay $2/mo. In 10 yrs., if poor get food/support payout; if rich, donate benefits.*
USA**
15 | Poverty Hedging | Micro-forecasts from the Game
*Cards have been lightly edited for readability.**Player location was self selected.
© 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B 6
Microcredit firm that plays the role of lender, retailer and advisor transforming borrowers to suppliers. Whole foods market is doing this
Nigeria
15 | Poverty Hedging | Micro-forecasts from the Game
Create annuities/instrumentsto hedge for your own poverty. E.g. pay $2/mo. In 10 yrs., if poor get food/support payout; if rich, donate benefits.
USA
© 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B 7
Carbon trade at micro level to connect consumers in developed societies to greener but ‘poorer’ societies. Possible with data collection
China
15 | Poverty Hedging | Micro-forecasts from the Game
Microcredit firm that plays the role of lender, retailer and advisor transforming borrowers to suppliers. Whole foods market is doing this
Nigeria
Create annuities/instrumentsto hedge for your own poverty. E.g. pay $2/mo. In 10 yrs., if poor get food/support payout; if rich, donate benefits.
USA
© 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B 8
Develop the usage of micro- finance as a collective instead of individual, thus strengthening local bonds and traditional economies
Peru
15 | Poverty Hedging | Micro-forecasts from the Game
Microcredit firm that plays the role of lender, retailer and advisor transforming borrowers to suppliers. Whole foods market is doing this
Nigeria
Create annuities/instrumentsto hedge for your own poverty. E.g. pay $2/mo. In 10 yrs., if poor get food/support payout; if rich, donate benefits.
USA
Carbon trade at micro level to connect consumers in developed societies to greener but ‘poorer’ societies. Possible with data collection
China
© 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B 9
In fact, there are initiatives to link traditional ways of saving with the formal ones that financial system requires
Peru
15 | Poverty Hedging | Micro-forecasts from the Game
Microcredit firm that plays the role of lender, retailer and advisor transforming borrowers to suppliers. Whole foods market is doing this
Nigeria
Create annuities/instrumentsto hedge for your own poverty. E.g. pay $2/mo. In 10 yrs., if poor get food/support payout; if rich, donate benefits.
USA
Carbon trade at micro level to connect consumers in developed societies to greener but ‘poorer’ societies. Possible with data collection
China
Develop the usage of micro- finance as a collective instead of individual, thus strengthening local bonds and traditional economies
Peru
© 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B 10
Perhaps the governments could contribute a small sum to the child upon birth to be saved and untouched until the child turns 18
Sri Lanka
15 | Poverty Hedging | Micro-forecasts from the Game
Microcredit firm that plays the role of lender, retailer and advisor transforming borrowers to suppliers. Whole foods market is doing this
Nigeria
Create annuities/instrumentsto hedge for your own poverty. E.g. pay $2/mo. In 10 yrs., if poor get food/support payout; if rich, donate benefits.
USA
Carbon trade at micro level to connect consumers in developed societies to greener but ‘poorer’ societies. Possible with data collection
China
Develop the usage of micro- finance as a collective instead of individual, thus strengthening local bonds and traditional economies
Peru
In fact, there are initiatives to link traditional ways of saving with the formal ones that financial system requires
Peru
© 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B 11
Then like carbon caps, poverty remediation opportunities could be traded.
USA
Microcredit firm that plays the role of lender, retailer and advisor transforming borrowers to suppliers. Whole foods market is doing this
Nigeria
Create annuities/instrumentsto hedge for your own poverty. E.g. pay $2/mo. In 10 yrs., if poor get food/support payout; if rich, donate benefits.
USA
Carbon trade at micro level to connect consumers in developed societies to greener but ‘poorer’ societies. Possible with data collection
China
Develop the usage of micro- finance as a collective instead of individual, thus strengthening local bonds and traditional economies
Peru
In fact, there are initiatives to link traditional ways of saving with the formal ones that financial system requires
Peru
perhaps the governments could contribute a small sum to the child upon birth to be saved and untouched until the child turns 18
Sri Lanka
15 | Poverty Hedging | Micro-forecasts from the Game
© 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B 12
An increasing number of commercial banks in India are now allowing proxies including local grocery stores to act in their place.
India
15 | Poverty Hedging | Micro-forecasts from the Game
Microcredit firm that plays the role of lender, retailer and advisor transforming borrowers to suppliers. Whole foods market is doing this
Nigeria
Create annuities/instrumentsto hedge for your own poverty. E.g. pay $2/mo. In 10 yrs., if poor get food/support payout; if rich, donate benefits.
USA
Carbon trade at micro level to connect consumers in developed societies to greener but ‘poorer’ societies. Possible with data collection
China
Develop the usage of micro- finance as a collective instead of individual, thus strengthening local bonds and traditional economies
Peru
In fact, there are initiatives to link traditional ways of saving with the formal ones that financial system requires
Peru
perhaps the governments could contribute a small sum to the child upon birth to be saved and untouched until the child turns 18
Sri Lanka
Then like carbon caps, poverty remediation opportunities could be traded.
USA
© 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B 13
Transition from national or regional prosperity model. As nations don’t exist in isolation. For example a warring Somalia impacts Kenya
Nigeria
15 | Poverty Hedging | Micro-forecasts from the Game
Microcredit firm that plays the role of lender, retailer and advisor transforming borrowers to suppliers. Whole foods market is doing this
Nigeria
Create annuities/instrumentsto hedge for your own poverty. E.g. pay $2/mo. In 10 yrs., if poor get food/support payout; if rich, donate benefits.
USA
Carbon trade at micro level to connect consumers in developed societies to greener but ‘poorer’ societies. Possible with data collection
China
Develop the usage of micro- finance as a collective instead of individual, thus strengthening local bonds and traditional economies
Peru
In fact, there are initiatives to link traditional ways of saving with the formal ones that financial system requires
Peru
perhaps the governments could contribute a small sum to the child upon birth to be saved and untouched until the child turns 18
Sri Lanka
Then like carbon caps, poverty remediation opportunities could be traded.
USA
An increasing number of commercial banks in India are now allowing proxies including local grocery stores to act in their place.
India
© 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B 14
15 | Poverty Hedging | Micro-forecasts from the Game
Microcredit firm that plays the role of lender, retailer and advisor transforming borrowers to suppliers. Whole foods market is doing this
Nigeria
Create annuities/instrumentsto hedge for your own poverty. E.g. pay $2/mo. In 10 yrs., if poor get food/support payout; if rich, donate benefits.
USA
Carbon trade at micro level to connect consumers in developed societies to greener but ‘poorer’ societies. Possible with data collection
China
Develop the usage of micro- finance as a collective instead of individual, thus strengthening local bonds and traditional economies
Peru
In fact, there are initiatives to link traditional ways of saving with the formal ones that financial system requires
Peru
perhaps the governments could contribute a small sum to the child upon birth to be saved and untouched until the child turns 18
Sri Lanka
Then like carbon caps, poverty remediation opportunities could be traded.
USA
Transition from national or regional prosperity model. As nations don’t exist in isolation. For example a warring Somalia impacts Kenya
Nigeria
An increasing number of commercial banks in India are now allowing proxies including local grocery stores to act in their place.
India
© 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B
Signals from the Present
15
15 | Poverty Hedging
© 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B 16
Following in the footsteps of Mexico, Korea, and Singapore, the Coalition is working towards universal savings accounts for every child at birth in the United States.
Fundación Capital
Fundación Capital is a group of Latin American economists building a new economic paradigm for the region. Many of their projects are built on top of government-sponsored Conditional Cash Transfer systems, adding game mechanics and digital tools to promote financial literacy and saving.
15 | Poverty Hedging | Signals from the Present
Child Savings Account Coalition
Image Source: www.fundacioncapital.org
Image Source: http://www.bos.frb.org/commdev/c&b/2010/winter/Butrica_Child_Savings_Accounts.pdf
© 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B© 2013 Institute for the Future. All rights reserved. SR-1563B
March 2013
Foresight Engine Game Analysis:
25 Zones of Future Innovation
© 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B
A project by Institute for the Future and The Rockefeller Foundationwww.iftf.org/our-work/global-landscape/catalysts-for-change/catalysts-zones-of-innovation
Contact: Tessa Finlev, [email protected]