Groundswell

1
Groundswell

• October 24, 2005
• PSC 300.301

2
Todays class

• Housekeeping
• Video on Brazil
• Discussion

3
Definition

• Groundswell
• Globalization from the bottom-up
• Marginalized attempts to self-integrate
• A coping mechanism for survival or
• Entrepreneurship to get wealthy?
• Contrast
• Development
• Trickle down wealth development

4

• Power (as defined by the market-defined)
• PC ownership
• Bandwidth
• Evernet
• Shapers versus adapters
• Leaving a window open for others
• Q Is this MSFT vision/mission or real power?

5
Groundswell

• Microfinance efforts
• History in bank failure
• Alternatives developed
• Shylocking (in Kenya)
• Merry go rounds (in Kenya)
• Microfinance banks (examples Grameen in
  Bangladesh Kenya Women Finance Trust K-REP in
  Kenya
• Womens houses (Wabenzi market women in Nigeria)
• Critiques
• Middle and lower classes
• Partnerships with investors
• Growth into banks
• Government attempts to tap into informal economy

6

• Internetworking
• Toasters and connectivity for 100 million
• Case studies of Rwanda India
• Lack of infrastructure
• Electricity
• Lack of required skills
• Literacy and application skills
• House structures
• Majority in urban centers live in slums
• Relevance in application
• Mail
• Pornography

7

• Governance and Freedom
• History of development and growth
• State driven
• Free market during the depression (US)
• Corruption in 1890s - capital accumulation (US)
• development of the private sector
• Initially state-driven preference formation
• Drug trade in Colombia for 3000 years
• Drug making-process
• Drug trade in the Netherlands (liberalized)
• SMEs engine for development (US elsewhere)
• Priority development areas
• Domestically driven
• A political decision

8

• Falsifying Friedmans arguments
• Coincidence of Poor governance economic growth
• Botswana (authoritarianism)
• Singapore (authoritarianism)
• Malaysia (authoritarianism)
• South Africa (apartheid)
• United States (slavery male franchise only)
• Cuba (health sector development best in the
  world)
• Growth in Mozambique Uganda
• War-torn reconstruction registers growth
• Donor funding inflows ratio to GDP
• coup winners
• Accept terms to gain acceptance by international
  community
• Uganda today?

9

• Individual choice
• Freedom of factors of production
• Katrina and developing countries
• Only labor does not move (thought experiment of
  labor freeing)
• Preference formation (by media)
• Choice of job and location (Katrina)
• Connection enables
• Connection not fungible (Rwanda)
• Appropriate technology
• Priority area
• Skills acquisition

10

• Personal story
• Kenyas liberalization in 1992