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Rye Barcott's signature presentation on social entrepreneurship takes audiences on a journey through the joy and heartbreak, the friendships and betrayals, and the failures and triumphs of creating a movement to spark change from within one of the world's largest and most volatile slums. As inspiring as it is informative, this presentation will spur you on your own quest to make a difference in the world, no matter your age or avocation.

"An unforgettable odyssey. We need more of these wonderful affirmative tales of how good can triumph in Africa, as it can anywhere."
-Alexander McCall Smith, author of The Ladies No. 1 Detective Agency

"A tremendous story of the power of friendship, love, and the transforming grace of God."
-Archbishop Emeritus Desmond Tutu, Nobel Peace Prize Laureate

Rye Barcott co-founded the non-governmental organization Carolina for Kibera (CFK) with Salim Mohamed and Tabitha Atieno Festo while he was an undergraduate at the University of North Carolina at Chapel Hill earning his B.A. in Peace, War, and Defense. CFK invests in local leaders in the Kibera slum of Nairobi, Kenya through its model of participatory development.  After graduation, Barcott served in the U.S. Marine Corps for 5 years in Iraq, Bosnia, and the Horn of Africa. He then earned master's degrees in business and public administration from Harvard University, where he was a Reynolds Social Entrepreneurship Fellow and a member of the Harvard Endowment's Advisory Committee on Shareholder Responsibility. In 2006, ABC World News named then Captain Barcott a ‘Person of the Year' for his dual service to Kibera and the Marine Corps. In 2009, he joined the inaugural class of TED Fellows. He lives in North Carolina with his wife and daughter and works in the Sustainability Office at Duke Energy.  His first book, It Happened On the Way to War, will be published by Bloomsbury on March 29th to coincide with the 10th Anniversary of CFK.

CO-SPONSORED BY THE HAAS CENTER FOR PUBLIC SERVICE

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Rye Barcott Co-founder, The non-governmental organization Carolina for Kibera (CFK) Speaker
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Dr. Brian Chen's research has examined the tradeoffs between moral hazard and efficiencies in the integration of physician and non-physician medical services in the presence of asymmetric information. He has looked at a policy intervention in Taiwan that prohibited self-referrals of patients to physician-owned pharmacies unless the physician group integrated pharmacy services into the clinic by hiring an onsite pharmacist. He found that the policy reduced drug expenditures by close to thirty percent among physicians that did not have an onsite pharmacist. However, these physicians responded by increasing the overprovision of diagnostic services not covered by the policy, thereby reducing the effectiveness of the policy. Forty-five percent of the clinics that did not have an onsite pharmacist prior to the policy hired one subsequent to the implementation of the policy. Overall, after integration, the policy applied to only seventeen percent of clinics, and only reduced average discretionary expenditures by about two-point-five percent. Chen's research also shows that despite the reduction in drug utilization, patients treated at clinics without an onsite pharmacist did not have greater observable adverse health events than patients treated at integrated clinics. His results show that moral hazard costs of self-referral incentives are large, that the “safe harbor” exemption severely reduces the effectiveness of the policy, and that the exemption explains much of the recent integration of ancillary services into physician offices.

Dr. Brian Chen recently completed his Ph.D. in business administration in the Business and Public Policy Group at the Haas School of Business, University of California at Berkeley. He received a Juris Doctor from Stanford Law School in 1997, and graduated summa cum laude from Harvard College in 1992.

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Brian Chen 2011 AHPP/CEAS Visiting Scholar Speaker Stanford University
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Ethical consumerism has been around for a long time—during the revolution, many Americans protested against the Stamp Act of 1756 by refusing to buy tea and other Brit- ish goods. In recent years, ethical consumerism has become an increasingly prominent feature of social life, as new forms of technology have allowed consumers to use their choices in the marketplace to address various environmental, labor and trade concerns.

Surprisingly, relatively little attention has been paid to the moral issues raised by ethical consumerism. Suppose that consumers are morally permitted to use their buying power to pressure companies to treat animals better or to reduce carbon emissions. Does this mean that they can also pressure pharmacies not to stock the “morning after” pill? Can they pressure Wal-Mart not to sell books or music that they find offensive? Even in cases where consumers are pressuring companies to do the right thing, do their actions amount to a kind of vigilante justice?

Waheed Hussain is an assistant professor in the Department of Legal Studies and Business Ethics at the University of Pennsylvania's Wharton School of Business. He has a Ph.D. in Philosophy from Harvard University and an A.B. in Philosophy from Princeton University. His main research interests lie in moral and political philosophy, particularly in those areas that bear on the morality of economic life.

One of his major research projects focuses on the philosophical debate about how best to understand the political concern for freedom. After formulating and defending an interpretation of this concern, he argues that the most attractive economic arrangements from the standpoint of freedom are those that extend democratic forms of decision making into economic life. An example of such an arrangement would be the codetermination system in Germany, which gives representatives of labor a significant role to play in economic decision making.

Other current projects include developing a more adequate understanding of the nature of personal autonomy and its significance in political contexts, examining the role of secondary associations in a capitalist democracy, formulating a moral contractualist account of the duties of corporations and their managers, and assessing the case for the corporation's right (and perhaps duty) to engage in civil disobedience.

At Wharton, Professor Hussain teaches Legal Studies 210, Corporate Responsibility and Ethics and Legal Studies 226, Markets, Morality and the Future of Capitalism, which is cross-listed in both the Philosophy Department at Penn and the Program in Politics, Philosophy and Economics.

Graham Stuart Lounge

Waheed Hussain Assistant Professor, The Wharton School Speaker University of Pennsylvania
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Hicham Ben Abdallah
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On Sunday February 20, Morocco experienced its first encounter with the wave of democratic change that has been sweeping across the Arab world. In each of several major cities, tens of thousands of Moroccans demonstrated for the same kinds of demands that we have seen elsewhere: to replace arbitrary and absolute uses of power with real, open democracy, to end the corruption and clientalism that stifles economic life, and to assert the rights of citizens to be treated with dignity and respect and to have a decent life for themselves and their families. Like these other demonstrations, those in Morocco also give us a glimpse of a new kind of movement -- one that brings together disaffected youth, impoverished working people, Islamists, traditional political dissidents, human rights groups, and others, in a kind of "leaderless" movement without a fixed ideological agenda. Unlike some other movements, the Moroccan demonstrations were predominately oriented toward reform, not overthrow; they did not attack the person of the King or the institution of the monarchy, and - what is most likely to keep them on that path - they were not met with brutal repression.

It would be possible for the regime to ignore what this means - there, after all, is no occupation of a central square to contend with. It would be better, however, for everyone to heed what it means - there is, clearly, a widespread, persistent discontent, affecting a broad swath of the populace. We have only seen the beginning of a process through which that discontent will manifest itself and find its political expression. How things develop from here is not known or predictable, and will depend on how the different forces react and interact going forward, but, in the present context, it is unlikely that expressions of that discontent will simply disappear. 

The welcome lack of bloody conflict has produced a curious uncertainty on both sides, a kind of double-double-bind situation that seems good for everyone: for the movement, the lack of fierce confrontation and overly radical demands helps legitimize the protest, and may make more people comfortable with and in it; but it may also be perceived as a sign of weakness. For the regime, the avoidance of brutal repression redounds to its credit, but it may also embolden the movement and help it grow. Neither side should underestimate the complexity of the pas de deux in which they are now engaged. For the regime, especially, to react with complacency and condescension - treating this movement as something that can either be ignored or absorbed in the usual ways, would be a very risky bet.

Much more productive, and much smarter, would be to heed the message of this movement - which, right now, is nothing else than to recapture the spirit of the new reign of Mohammed VI that the country had twelve years ago, to restart a hopeful process that so many feel has been rudely interrupted and replaced with disappointing new versions of business-as-usual. We started with the Justice and Reconciliation Authority (IER) and a promise of a new era of justice and accountability, and have arrived instead, post-16 May, with new waves of mass arrests, anti-"Islamist" fear-mongering, torture, and rendition [sous-traitance]. We started with a new era of freedom of the press, and have arrived at a state of censorship and legal harassment that has closed much of the independent press, and silenced or driven into exile many of its strongest voices. We began with a promise of economic transparency, and have ended in a state of economic predation, conducted by lobbies and vested interests in the name of the monarchy. We began with alternance, welcoming opposition parties and political dissidents into a new era of open democracy, and have passed through technocratic fixes to arrive at a return to "political normalcy," only to be undermined by ad-hoc commissions. The latest "new" political stratagem is a frankly royalist party, which may accrue more power to the monarchy in the short term, but, by bringing it further down into the arena of day-to-day political infighting, undermines the legitimacy it was recently accorded by all actors.

In short, many feel that the hopes and promises - the very spirit -- of the new reign have been abandoned. This is because they were not subject to a participatory process of constitutionalization and institutionalization, which is the only way that would have become permanent and irreversible. They were instead, once again, left discretionary. The monarchy has not submitted to a new, viable contract with the people. What the movement of February 20 is telling us is that these hopes and promises -- these rights -- can't be discretionary anymore. We have to return to them, and quickly begin a process that people can see is making them fixed and irrevocable. We have, that is, to revive and recast the spirit of the new reign with new urgency -- because there are new actors on the political stage who won't go away. Our nation has been put on notice: Change must and will come, and it will not be top-down anymore.  The commander [commandant de bord] now has a co-pilot, the Moroccan people, who will not fall asleep at the wheel.

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Francis Fukuyama
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The first decade of the 21st century has seen a dramatic reversal of fortune in the relative prestige of different political and economic models. Ten years ago, on the eve of the puncturing of the dotcom bubble, the US held the high ground. Its democracy was widely emulated, if not always loved; its technology was sweeping the world; and lightly regulated "Anglo-Saxon" capitalism was seen as the wave of the future. The United States managed to fritter away that moral capital in remarkably short order: the Iraq war and the close association it created between military invasion and democracy promotion tarnished the latter, while the Wall Street financial crisis laid waste to the idea that markets could be trusted to regulate themselves.

China, by contrast, is on a roll. President Hu Jintao's rare state visit to Washington this week comes at a time when many Chinese see their weathering of the financial crisis as a vindication of their own system, and the beginning of an era in which US-style liberal ideas will no longer be dominant. State-owned enterprises are back in vogue, and were the chosen mechanism through which Beijing administered its massive stimulus. The automatic admiration for all things American that many Chinese once felt has given way to a much more nuanced and critical view of US weaknesses - verging, for some, on contempt. It is thus not surprising that polls suggest far more Chinese think their country is going in the right direction than their American counterparts.

But what is the Chinese model? Many observers casually put it in an "authoritarian capitalist" box, along with Russia, Iran and Singapore. But China's model is sui generis; its ­specific mode of governance is difficult to describe, much less emulate, which is why it is not up for export.

The most important strength of the Chinese political system is its ability to make large, complex decisions quickly, and to make them relatively well, at least in economic policy. This is most evident in the area of infrastructure, where China has put into place airports, dams, high-speed rail, water and electricity systems to feed its growing industrial base. Contrast this with India, where every new investment is subject to blockage by trade unions, lobby groups, peasant associations and courts. India is a law-governed democracy, in which ordinary people can object to government plans; China's rulers can move more than a million people out of the Three Gorges Dam flood plain with little recourse on their part.

Nonetheless, the quality of Chinese government is higher than in Russia, Iran, or the other authoritarian regimes with which it is often lumped - precisely because Chinese rulers feel some degree of accountability towards their population. That accountability is not, of course, procedural; the authority of the Chinese Communist party is limited neither by a rule of law nor by democratic elections. But while its leaders limit public criticism, they do try to stay on top of popular discontents, and shift policy in response. They are most attentive to the urban middle class and powerful business interests that generate employment, but they respond to outrage over egregious cases of corruption or incompetence among lower-level party cadres too.

Indeed, the Chinese government often overreacts to what it believes to be public opinion precisely because, as one diplomat resident in Beijing remarked, there are no institutionalised ways of gauging it, such as elections or free media. Instead of calibrating a sensible working relationship with Japan, for example, China escalated a conflict over the detention of a fishing boat captain last year - seemingly in anticipation of popular anti-Japanese sentiment.

Americans have long hoped China might undergo a democratic transition as it got wealthier, and before it became powerful enough to become a strategic and political threat. This seems unlikely, however. The government knows how to cater to the interests of Chinese elites and the emerging middle classes, and builds on their fear of populism. This is why there is little support for genuine multi-party democracy. The elites worry about the example of democracy in Thailand - where the election of a populist premier led to violent conflict between his supporters and the establishment - as a warning of what could happen to them.

Ironically for a country that still claims to be communist, China has grown far more unequal of late. Many peasants and workers share little in the country's growth, while others are ruthlessly exploited. Corruption is pervasive, which exacerbates existing inequalities. At a local level there are countless instances in which government colludes with developers to take land away from hapless peasants. This has contributed to a pent-up anger that explodes in many thousands of acts of social protest, often violent, each year.

The Communist party seems to think it can deal with the problem of inequality through improved responsiveness on the part of its own hier­archy to popular pressures. China's great historical achievement during the past two millennia has been to create high-quality centralised government, which it does much better than most of its authoritarian peers. Today, it is shifting social spending to the neglected interior, to boost consumption and to stave off a social explosion. I doubt whether its approach will work: any top-down system of accountability faces unsolvable problems of monitoring and responding to what is happening on the ground. Effective accountability can only come about through a bottom-up process, or what we know as democracy. This is not, in my view, likely to emerge soon. However, down the road, in the face of a major economic downturn, or leaders who are less competent or more corrupt, the system's fragile legitimacy could be openly challenged. Democracy's strengths are often most evident in times of adversity.

However, if the democratic, market-oriented model is to prevail, Americans need to own up to their own mistakes and misconceptions. Washington's foreign policy during the past decade was too militarised and unilateral, succeeding only in generating a self-defeating anti-Americanism. In economic policy, Reaganism long outlived its initial successes, producing only budget deficits, thoughtless tax-cutting and inadequate financial regulation.

These problems are to some extent being acknowledged and addressed. But there is a deeper problem with the American model that is nowhere close to being solved. China adapts quickly, making difficult decisions and implementing them effectively. Americans pride themselves on constitutional checks and balances, based on a political culture that distrusts centralised government. This system has ensured individual liberty and a vibrant private sector, but it has now become polarised and ideologically rigid. At present it shows little appetite for dealing with the long-term fiscal challenges the US faces. Democracy in America may have an inherent legitimacy that the Chinese system lacks, but it will not be much of a model to anyone if the government is divided against itself and cannot govern. During the 1989 Tiananmen protests, student demonstrators erected a model of the Statue of Liberty to symbolise their aspirations. Whether anyone in China would do the same at some future date will depend on how Americans address their problems in the present.

The writer is a fellow at the Freeman Spogli Institute for International Studies at Stanford University. His latest book, The Origins of Political Order, will be published in the spring.

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Larry Diamond
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The toppling of a brutal, corrupt, and long-ruling dictator, Zine el Abidine ben Ali, is an extraordinary achievement for the diverse elements of Tunisian society who came out into the streets in recent weeks to demand change. Ben Ali's startling fall is another reminder of how suddenly political change can come in authoritarian regimes that substitute force, fear, and fraud for legitimacy. Such regimes may appear stable for very long periods of time, but when the people lose their fear and the army refuses to fire on the people, they can unravel very quickly.

Unfortunately, the demise of a dictator does not guarantee the rise of a democracy in its place.  Historically, most authoritarian regimes have given way to a new (and often only slightly reconstituted) autocracy. This has been the principle pattern not only in the successor states to the Soviet Union, but in much of Africa since independence, and in numerous states in Asia and Latin America historically as well. In the Middle East, the odds against a successful democratic transition are particularly long, since there have hardly been any (outside Turkey and Israel) since the end of colonial rule. In Iran in 1979, a popular uprising against a long-serving dictator led not to democracy but rather to an even more odious and murderous form of oppression.

 If Tunisia is to defy the odds, it will need a significant period of time to reform the corrupt rules and institutions of the authoritarian regime and create an open, pluralistic society and party system that is capable of structuring democratic competition. Even if elections for a successor government are pushed out to six months, rather than sixty days, it is highly unlikely that this will provide sufficient time to create even a minimally fair and functional democratic playing field. 

Think of the many components of a democratic election, and Tunisia today is far from having them in place. After decades of fixed and phony elections, Tunisia needs a complete overhaul of its electoral machinery: a new and impartial electoral administration, a new electoral register, and perhaps as well a new electoral system. An energetic program of civic education should help Tunisians understand not only the mechanics of a democratic electoral process but also the underlying norms, rights, and responsibilities of democratic citizenship. This is a long process, but from Poland to Chile to South Africa, civil society organizations have shown that much can be accomplished to lay the foundations for popular democratic awareness and capacity if the models, materials, and resources are made available, and if there is a decent interval of time and political space to do the work. Doing this work-and enabling political parties and candidates to convey their messages-also requires a new and more pluralistic media environment. State control of the electronic and print media must be radically refashioned.  Privately owned media must be allowed to form and function, and critics of the old order must be allowed to enter the arena of ownership.

An effective democratic election requires not just freedom of opposition parties to organize, but time, resources, and training for them to form-or reform-and develop some ability to perform the essential functions of modern parties:  to establish what they stand for, to develop programmatic agendas, to elect leaders and recruit candidates, to forge ties with constituencies, and to survey public opinion and respond with appropriate messages. Trade unions, business chambers, and other civic groups need time as well to purge themselves of corrupting ties to the old order, or form anew, cultivate their natural constituencies, and build an authentic civil society.  Independent think tanks and public opinion surveys can also help to structure and enrich an emergent democratic process, but they as well need time and resources to function effectively.

Free and fair elections-especially in a context where they have never taken place before-also require extensive preparations for domestic monitoring and international observation, so that fraud can be detected and deterred, honest mistakes can be exposed and corrected, and public confidence can be generated in the new procedures.

Many of these tasks are ongoing after a successful transition to democracy, and setting too ambitious an agenda for reform could risk waiting indefinitely and squandering the opportunity for democratic change. But one of the most common reasons for failed transitions is a rush to early national elections and a failure to prepare the ground adequately for a fair and meaningful contest. Two common consequences of hurried elections are chaos or renewed autocracy, as some portions of the old order rally behind a new figure or old party and win by hook or crook. 

Unfortunately, there are also risks in waiting too long. Democratic energy in society can dissipate.  If (putative) democratic forces enter into a broad-based transitional government, as is now happening in Tunisia, they risk being corrupted or tainted with the stench of the old order if they hang around for too long, sharing some authority and stature but no real power. A prolonged transitional period can also give authoritarian forces time to regroup, purge the worst elements, present cosmetic changes, divide and confuse the opposition, and return to power under the guise of a pseudo-democracy. That is why it is important that opposition figures in Tunisia insist on a serious program of institutional and possibly constitutional reform during the transitional period, with extensive public dialogue and broad popular participation, so that interim rule is not a stagnant pause but rather a dynamic historical moment that engages and mobilizes public opinion for real democratic change. The risks of delay could also be reduced if a non-partisan, technocratic figure, not associated with the Ben Ali's political machine, could be tapped to lead the interim government, and if the political opposition could unify to negotiate strong conditions for the period of interim rule, including basic freedoms, an end to censorship, and removal of Ben Ali loyalists from the cabinet.

There is an important role for international actors at this seminal moment in Tunisian history. Like peoples throughout the Middle East and other post-colonial spaces, Tunisians are understandably wary of foreign intervention. After a quarter-century of lavish Western (especially French) aid and political comfort to Ben Ali, Tunisians will no doubt cast a suspicious eye on grants, statements and actions that purport to now, suddenly, want to build democracy in Tunisia. But Tunisians may welcome limited and specific steps if they are transparent and taken in careful consultation with diverse elements of Tunisia's civil society and historic opposition. 

Fortunately, Tunisia has many liberal and democratic figures in business, intellectual, cultural, and civic life who understand what liberal democracy is and would like to see it emerge in Tunisia. And it has other distinct advantages. It is a relatively small country in size and population, which makes some of the tasks of institution building and promotion of democratic norms a bit easier. Educational levels are relatively high, and there is a significant infrastructure of a middle class society. The security forces seem to be divided, and it appears the army refused to fire on peaceful protestors-a very positive precedent. Without blood on its hands from the recent violence, the army is better poised than other elements of state security to guarantee a process of democratic change, if its leadership comes down in favor of it (for whatever reason). And in contrast to Algeria, Egypt, or Jordan, Islamists do not seem to have strong public support. Thus, it is difficult for the forces of the ancien regime to manipulate public fears of radical Islam (or of disorder that the old elites themselves covertly generate) in order to discredit liberalism as naïve and ride back to power. 

It is vital that Europe and the United States not fall again for the specter of disorder or an Islamist surge, but rather insist on genuine democratic reforms, and tie future aid and geopolitical support to this. The US and EU should hold forth the prospect of Tunisia achieving a special and potentially transformative status in economic relations if it negotiates the path to become the first Arab democracy of this era. At the same time, they should threaten to institute targeted travel and financial sanctions against diehard defenders of the old order who frustrate or sabotage a democratic transition, or who use violence against peaceful demonstrators.  These kinds of prospective inducements, positive and negative, can help to tip the balance in the calculations of a lot of elites from outside the Ben Ali "family" but who were part of the Ben Ali regime and must now be wondering where their own interests lie. To complement the necessary private messages, the US ambassador (and others representing democracies in Tunis) should stand up publicly for democratic reforms, embrace democratic reformers, support new democratic initiatives with small grants, and warn old regime elites against repression.

In the coming weeks and months, American and European democracy foundations and aid organizations, along with the United Nations and its political assistance programs in the UNDP, can do a lot-transparently, and in consultation with Tunisian society-to train and support the emerging infrastructure of democracy in the state administration, political parties, and civil society. The funding required to make a difference is not large in absolute terms, and it should be a priority. Time is of the essence, and more flexible instruments, like USAID's Office of Transition Initiatives, should be tapped to activate assistance quickly.        

History-and the grim realities of pervasive authoritarianism in what is known in the political science discipline as a "bad neighborhood"-do not justify a high degree of optimism about the prospects for democracy in Tunisia. Yet the third wave of global democratization is replete with instances of successful democratization in even more unlikely circumstances. The speed with which the Tunisian protests mushroomed in a few weeks from a lone act of self-sacrifice to a national uprising, and the intensity with which this uprising has resonated in nearby countries, shows the pent-up demand for democratic change in the Arab world. If that demand can be directed toward pursuit of concrete institutional reform, with timely international support, the Jasmine Revolution could surprise again, by giving birth to the first Arab democracy of our time.

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In January-April 2011, the Program on Human Rights will host the Sanela Diana Jenkins International Human Rights Speaker Series, a weekly series featuring presentations by leading scholars of human rights. The series will comprise 10 high profile international and domestic human rights scholars, lawyers and activists who have made significant contributions to international justice, women and children's rights, environmental rights and indigenous rights.

Sanela Diana Jenkins has turned a life of hardship into triumph, as she has developed into a successful business woman, a devoted mother, and a philanthropist.

As a native of Sarajevo, Bosnia, Jenkins lived her childhood and teenage years in the midst of genocide. She lived in the country long enough to graduate from Sarajevo University with a degree in economics. Shortly thereafter, Jenkins was forced to flee her homeland during the conflict in Bosnia, which was responsible for the death of her brother Irnis. Compelled to leave her parents behind, Jenkins found herself as a refugee in London, where she was eventually granted asylum.

It was in England where Jenkins began to lay the groundwork for her future. Jenkins enrolled in London's City University to further her education. During her schooling, she learned English and worked odd jobs to support her parents back in Sarajevo. Not long after Jenkins discovered her new-found freedom, she met her husband Roger Jenkins, a financial executive in London, who was teaching classes at City University.

Jenkins has dedicated a large part of her attention back to her native land by establishing The Sanela Diana Jenkins Foundation for Bosnia in Memory of Irnis Catic. The Foundation, which is closely associated with the funding of the medical school at the University of Sarajevo, aims to provide financial support toward establishing Bosnian schools and orphanages. Additionally, it is instrumental in building homes for the country's poor, supplying emergency aid & relief, and cleaning the country's lakes and polluted areas. The Foundation is the largest privately funded Bosnian organization of its kind. In 2008, Jenkins won the Mostar Peace Connection Prize for her humanitarian work.

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Nathan Eagle, Founder and CEO of txteagle spoke at the weekly Liberation Technology Seminar Series on Dececember 2, 2010 about mobile phone usage in the developing world.

Although txteagle began in 2007 as a purely academic project, the current goal of the company and of its founder and CEO, Nathan Eagle, is to give one billion people a five percent raise. In his presentation, Eagle described the context for which txteagle was designed, how the company's focus has evolved over the past three years, and what steps the company is taking to move closer to achieving this goal in the future.

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Eagle began by offering some background information to explain the initial impetus behind txteagle. Today, about 63% of global mobile phone usage takes place in the developing world, making airtime usage in emerging markets worth about $200 billion a year. Mobile phone users at the so-called "Base of the Pyramid" typically spend 10% of their income on mobile phone airtime. Through his experience living in emerging markets and teaching mobile application development in universities across sub-Saharan Africa, Eagle began to see that a significant opportunity space existed to reduce the cost of airtime for people at the base of the pyramid, in effect giving these people a raise.

Mobile applications developed as a part of MIT's Entrepreneurial Research on Programming and Research on Mobiles (EPROM) project offered some insights into the potential of mobile-based tools. In Rwanda, where electricity is a prepaid service, one of Eagle's former students quickly cornered a significant share of the market by creating scratch cards for crediting one's electricity bill via mobile phone. In Eastern Kenya, a program called SMS Blood Bank was created to enable real time monitoring of blood supplies at local district hospitals in Eastern Kenya. Although SMS reporting of low blood levels resolved the huge amount of latency in the system of local district hospitals (where responses to dips in supply had typically taken up to 4 weeks), the price of reporting blood levels via SMS represented a pay cut for local nurses; despite nurses' initial enthusiasm, SMS reporting tapered off within weeks. When the idea of sending about 10 cents of airtime to compensate nurses for each SMS report of blood level data proved a success, the model behind txteagle was born.

Designed as a means to monetize people's downtime, txteagle has grown rapidly through partnerships with over 220 mobile operators in about 80 countries around the world. In turn for helping these operators analyze their customer data, txteagle has gained access to about 2.1 billion mobile subscribers. Partnering with txteagle is a winning proposition for mobile operators, since the airtime compensation mobile subscribers receive from txteagle improves operators' Average Revenue per User (ARPU), a statistic that had been plummeting as more and more poor people became mobile phone users. By enabling people to carry out work via web browsers or SMS and compensating them via mobile money or airtime, txteagle has become a market leader at efficiently gathering data in the developing world.

Since txteagle was first created, the company has attempted to move from an outsourcing/back-office model to an emphasis on work that leverages a person's unique local knowledge and information. Typically outsourced tasks such as forms processing, audio transcription, inventory management, data cleaning, tagging, and internet search, tend to be less rewarding to the worker. By focusing on local data instead, txteagle enables unprecedented insight into emerging markets, all while optimizing engagement with local customers. Typical tasks include: maps and directions, local market prices and businesses, survey research and polling, and other forms of local knowledge gathering.

One of txteagle's central initiatives, GroundTruth, leverages this local knowledge-based model to carry out better market research. Today, global brands are already spending about $125 billion annually in emerging markets to engage the "next billion," but they typically carry out this research in a sub-optimal way. Through the txteagle platform, Eagle suggests, brands and organizations can use advertising money to design better products and services, conduct market research, and carry out brand engagement. Recent success cases include the use of txteagle to help a program of the United Nations to reach survey respondents directly and to enable the World Bank to obtain better local market price data at lower cost. 

Although txteagle's rapid growth and early successes have been encouraging, the company has ambitious goals for the next two years. The company began by focusing on outside sales through its GroundTruth market research program. Next year, the company  hopes to generate syndicated data and ultimately to create a self-source platform enabling anyone to conduct their own population-level surveys.  By continuing to focus on improving the quality of both their data and workers over time, txteagle aims to have an even greater positive impact on the incomes of the hundreds of millions of mobile phone users at the base of the pyramid.

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