Engineers for a Sustainable World Conference (10/1/2004)

Barbara Waugh of HP gave a plenary talk. She had an interesting background as a social activist in anti-war, civil rights, women's rights. She talked about her movement from a firebrand to corporate maverick. Her 4 lessons were:

1. Remember who you work for (The "Great Spirit" in Barb's case)
   
2. Amplify Positive Deviance. Look for those people who are better than average, but don't have obvious extraneous factors, then watch what they're doing carefully to see why, and then implement those innovations across the population.
   
3. Devise new metrics. Don't beat yourself up for not eliminating poverty, measure the positive impact you are making.
   
4. Understand and Leverage Informal Networks. (See, for example, Karen Stephenson's work at Netform.com)
   

Panel session on foreign aid and philanthropy

Milo Stanojevich, Chief of Staff of CARE, said that the world now has the knowledge, technology, and wealth to end poverty. He argued that we should for 3 reasons: 1) Self interest (control population growth, illegal immigration, and spread of disease); 2) Poverty results in instability that breeds terrorism; and 3) Moral dignity.
The challenges that he cited include: 1) The 40M people suffering from HIV/AIDS; 2) Lack of basic education; 3) Access to clean water (leading to 3M deaths annually from diarrhea) 4) Lack of credit; 5) Violent conflicts (35 around the world); 6) Poor governance; 7) Unfair trade.

He did point out that some progress has been made: 800M more people have access to clean water, and adult illiteracy has been cut in half. His recommendations for concrete actions that we (the US) should take included:

• Ending farm subsidies
  
• Reaching a diplomatic end for the Sudan war
  
• Increase spending on international development
  

Jim Leape, Director of Conservation and Science program at the Packard Foundation, spoke about some of the environmental dangers that we face. As developing economies like China and India expand, their usage of energy (and production of greenhouse gasses) will expand dramatically. The Packard Foundation is working to ensure that gains in efficiency provide most of the additional needed energy rather than simply burning more raw fuel (esp. coal). China sees the need (16 of the 20 worst global cities for air pollution are in China) and trusts the Packard name (David Packard was one of the first US executives to visit China.) They are working on standards for autos and appliances. Since they are understaffed (only 5 in the government working on air quality, compared to 3,100 in California) they are willing to learn from experts outside of China.

His second example was of fishing: some estimates say that 90% of the big fish have been taken out of the sea. Consumer education (dolphin-safe tuna) and certification and eco-labeling efforts are having some impact. A recent consortium was lead by the unlikely partnership of WWF and Unilever.

Julia Novy-Hildesley, Executive Director of the Lemelson Foundation, described the innovation process and involvement of local entrepreneurs in developing markets. By investing in entrepreneurs, they are investing in job creation. She showed an example of the design and marketing for a micro-irrigation system in India. She also mentioned (in response to a question) the three-fold contribution that microcredit institutions can make: 1) identifying needs in local markets; 2) identifying entrepreneurs in local markets; 3) providing seed capital for new businesses.

Chuck Setchell, Sheleter, Settlements, and Hazards Mitigation Advisor, USAID Office of Foreign Disaster Assistance. With all the bad press on government sponsored programs, including USAID, it was refreshing to hear from a real engineer on the ground inside one of them. Chuck gave a clear talk, outlining a number of seeming very worthwhile, successful projects accomplished under trying conditions. He spent most of the time talking about a case study in Bamako, Mali. USAID was called in to help with urban flooding, unusual in a essentially desert climate. The study found that one of the contributing factors was several hundred tons of refuse discarded in waterways, preventing their intended runoff protection. They started a program that included construction of "slip trenches" that fed runoff into wells (also reducing complaints of dry wells) and the creation of a refuse collection service. Although it started off as a subsidized service, within two years it was running as a private enterprise, generating a profit. In addition to helping to solve the flooding problem, the service generated jobs, and improved public health: malaria and diarrhea dropped by 33% since the project inception.

Chuck offered some suggestions to the engineering students in the audience:

• Read widely, including "non-traditional" media
  
• Work with people of different skills and backgrounds
  
• School is important, but not the end-all
  
• Never underestimate the resourcefulness of the poor (70% of the world lives on $4/day or less)
  
• You must voice your concerns
  
• Learn skills, but also how to apply them
  
• Ask tough questions of those who are paid to serve others
  

Innovation, Technology, Sustainability

Stuart Hart, a professor at the Cornell business school, gave a talk where he argued that a long list of hot topic business "buzzwords" can be categorized on two dimensions: time horizon (possible today vs. future-oriented) and span of control (internal to the firm vs. external). He showed where various buzzwords fell on this classification scheme, and described the characteristics of each of the 4 quadrants:

1. "Internal" and "Today": Operational means of reducing cost and reducing risk by attending carefully to the processes you're using. Impacts the core business of the company.
   
2. "External" and "Today": Focus on "product stewardship", thinking about processes upstream of yours (where your inputs come from) and downstream (how your product can be recycled). Doing this well can improve your reputation and reduce your costs.
   
3. "Internal" and "Tomorrow": These mark opportunities for investment in new capabilities (like clean technology). The resulting innovation may enable corporate repositioning.
   
4. "External" and "Tomorrow": The long term sustainability vision--the growth path for your enterprise. Of special note: "B24B" Business to the 4 Billion people living on less than $2/day.
   

Prof. Hart viewed the Base of the Pyramid as an opportunity: they have big problems, but those are opportunities for offering products and services that radically improve conditions. Ideally, the new offerings would lift constraints or enable people to generate an income by producinga surplus. He mentioned the success of Grameen Phone, where Grameen bank started financing (via microcredit) cell phones to women in villages. More than 100,000 "phone ladies" provide telecom services to all the people in the village, for whom the ability to make calls enables additional income generating opportunities (or ability to get fair prices for the crops they produce). Grameen Phone has grown to a $500M business with a net income of $80M.

From Appropriate to Green to Sustainable: Perspectives on Deisng for Developing Countries

Susan Murcott, a lecturer at MIT, has focused on the problem of clean water access at the household level. This was another inspiring talk how the efforts of an individual (or small groups of students) could have a direct impact on the health and quality of life for others. Through a series of design competitions and course projects, Susan's students produced several different designs for water filters that could be produced from local materials for less than $20, some as little as $1. The team did local tests in Nepal, and won a World Bank competition with a $115,000 prize, which went entirely to Nepal. An MIT News article provides more detail.

Keynote address by Jeffrey Sachs

After some initial technical problems, we ended up with just an audio link rather than a full video conference. But Prof. Sachs gave an interesting lecture, focusing on his view of the highest priority problems and approaches for dealing with them:

1. Challenge of ending extreme poverty
   
2. Challenge of managing environment under stress (poverty and economic success)
   

Extreme poverty

"Poverty that kills": 1.1B people (est. by World Bank) that are at risk of death daily (disease, malnourishment, medical complication). 80M (? audio indistinct) die each year due to readily treatable diseases. AIDS, malaria, TB kill 6M. Success of China over last 25 years and India in last 15 years allows us to think about ending extreme poverty, which is possible by 2025. Millenium Development Goals seek to cut by half the extreme poverty in 2015 (compared to 1990.)

How can we meet the goals (and continue through 2025)? 8 goals, 7 specific poverty focused goals

1. Eliminate income poverty & hunger
   
2. Achieve universal primary education
   
3. Achieve gender equality in education
   
4. Improve naternal and child survival (reduce maternal mortality by 75%, child mortality by 2/3)
   
5. Reduce AIDS, TB, Malaria
   
6. End proliferation of new slums
   
7. Provide access to drinking water
   
8. Achieve all of the above through global partnerships
   

The last decade has brought progress, but trouble in sub-Sahara in Africa, due mostly to AIDS. Especially mortality and income (Africa: 41% -> 46% in income poverty).
Report to UN on progress
Alleviating poverty depends on accumulating capital, both human and infrastructure.
human: health, education, nutrition
infrastructure: electricity, cooking fuel, motor transport, connectivity telecom, internet, drinking water, roads

Doesn't make sense to make business investment with the lack of these infrastructure elements.

Both households & governments are too poor to make the investment in infrastructure. "The Poverty Trap": too poor, burdened by disease: no saving, population increases ahead of income.

Currently loss of natural capital: cutting down forests, farms losing soil nutrients (no fertilizer). Falling income, isolation, growing environmental degradation. (environmental problems also impacted by poverty.)

Most urgently needed: financial help to make investments in health, education, nutrition, family planning infrastructure at village/city level to get onto path of world connectivity. Need international help for LOCAL investments: electricity to rural population, motor transport, safe cooking fuels (do away with biomass fuels and particulate pollution) graded and paved roads; bore wells for drinking water and sanitation; local clinics and doctors; schools and methods for adult education; cell phones. Costs are reasonable--outside of reach of villages: $50 per capita will open school, improve water supply and sanitation, provide village truck, cell phones, fertilizer (in a village of 5,000 people), anti-malaria medicine. Less than 1% of GNP of rich world. Basic infrastructure to world for less than amount spent on Iraq war.

Engineers are working at coming up with solutions: battery lighting, improved water sources, effective sanitation; effective off-grid electricity; new solutions for cooking fuels. Some localization required, but other tech discoveries are universal. But big companies are generally not interested (lack of profit potential).

Key breakthroughs are when all investments are simultaneously made. US makes smallest percentage of GDP for foreign aid.

Managing Environment under Stress

Complex relation between human condition and environment: sometimes vicious cycle with poverty, in other cases it's due to economic success/growth.

Deforestation, soil nutrient depletion (removed each crop, but don't replace with chemical, legumes or manure). Better agro techniques, better cooking fuels.

Caused by success: need a safe energy system for 21st century. Carbon management: how can we avoid undermining environment by green house gasses. How can we have world growth without environmental disaster?

Good news: Russia signs Kyoto. But Kyoto doesn't go far enough; US must sign--5% of population but 25% of emissions.

Modern energy for poorest of poor is vital. Probably rely on fossil fuels for decades to come, we need to make it safe: Carbon sequestering?

Questions posed to Jeffrey Sachs

Main mistake: moving without understanding the local context, learning on the ground. Worked in different locales (Latin America, Africa, Eastern Europe and former Soviet Union). Get out to the field. Experience that takes you to different locations that gives a comparative perspective.

China: Visits to China, spending summers in Western China. Economic growth has been real, spectacular, reduced overall poverty significantly. But growth has been very uneven, mostly urban, not rural. Largely coastal, not interior; more eastern than western. Chinese government asked him to go to Western provinces where poverty rates are higher. In rural areas, in west, a lot of poverty, much hidden from view. Chinese government did not invest adequately in rural education, infrastructure and health care. Needs greater investment. Growth could translate into more broadbase reduction of poverty.

Help vs. propagating the western way of life: Survival is a basic need; access to medicine, approach to malaria control, immunization. This is good science. It's what the villagers are desparate to have. They want fertilizer. Indigeneous solutions doesn't work any more: "slash and burn" agriculture where people moved to another region when one becomes depleted. Population densities are too high, so it doesn't work. We need a new kind of knowledge that supports 6.3B of today, not the 1B of 170 years ago. To support people in population densities of 10X today. Requires transport: traditional methods (women transporting loads on their heads for 10-15 km) not sufficient. Traditional child mortality levels are unacceptable. This is science, it is progress. We can respect their culture and still bring these improvements that they are seeking.