slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
no financial return PowerPoint Presentation
Download Presentation
no financial return

Loading in 2 Seconds...

play fullscreen
1 / 14

no financial return - PowerPoint PPT Presentation


  • 175 Views
  • Uploaded on

Social Capital for Sanitation “It is time for Change” Arthur Wood – VP, Social Financial Services, Ashoka awood@ashoka.org. “The coming Social Finance Crunch – “ Population aging is a worldwide phenomenon that will affect all G-7 countries ”.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'no financial return' - cherie


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Social Capital for Sanitation “It is time for Change”Arthur Wood – VP, Social Financial Services, Ashokaawood@ashoka.org

slide2
“The coming Social Finance Crunch – “Population aging is a worldwide phenomenon that will affect all G-7 countries”
slide3

There is simply not enough money in the current paradigm– “Population aging will be a key challenge facing the G7 economies over the coming decades”

slide4

There is a double whammy coming “The projected decline in the employment-to-population ratio will gradually become a hindrance to growth in living standards beyond 2010”

slide5
The Spectrum of Social Capital Investment - created in 1888 / 1944 – “essentially pre modern capitalism” – the Gap

no financial return

below market return

market return

Low risk

Programme-related

investments

Mainstream

“For Profit” Investments

Investment plus

Social Responsible Investment

circa $4trn

Corporate Engagement incl CSR

NO INDIVIDUAL OR SYSTEM MECHANISMS – THE GAP

Grants

$400bn

50%

Venture philanthropy

High risk

value chain financing sanitation
Value Chain Financing – Sanitation

no financial return

below market return

market return

Legal Process – ie L3C / CIC

Scale (GAVI) & Synthetic Profit (Corporate incentive)

Investment Plus

Programme Related Investment

Mainstream

Investments

Grants

Recoverable Grants

Increase the credit quality of social capital markets ie. Leveraging - Microfinance / DB Eye fund model

Incentivising Innovation / Collaboration at the bottom of the pyramid – Social Entrepreneurship

Financing Mechanisms incentivising Community and Corporates Carbon / Vouchers / Fertiliser / Power

Enables a Range of Financing options; incentivising corporates, banks, civil society;integrating “ for profit” and “not for profit” players

Based on “Foundations and Social Investment” Margaret Bolton 2005 and Bates Wells & Braithwaite

why is sanitation such an opportunity
Why is Sanitation such an opportunity ?

Political Will – The IYS 2008 - Call by Brown / Moon to end of Silo’s

A moral imperative “Adequate Sanitation is the most effective public health intervention the international community has at its disposal.” Lancet – 11 / 07

Metrics, Single Data Set and Audit Mechanism in place - Clear Cost Benefit Analysis – WHO,UNICEF, DFID,WSP

You can Identify the Community / Distribution chain – WSSCC, SuSanna

Not enough Money - $500m vs. $8bn per year for ten years

It is however a business opportunity – a size to attract

Structurally the status quo is not going to be bailed out – GAVI ?

Banks looking for markets in real scale

Path-finding for other MDG Financing Structures

world sanitation financing facility
Participation

WSSCC, UNICEF, WHO, WSP, OPIC, SuSanna, IFAD, Deutsche Bank x2, UBS, Legal Group –(Caplin Drysdale, Gibson Dumm, Latham’s, Linklaters, Bates, Morrison), Acumen, L3C Advisors, Environtrade, Ashoka 10/40 Fellows incl WTO, Keystone, SROI – we welcome partners

Open Supply Side Model – www.changemakers.net - 250 ideas

UN Foundation (GWC) Funding Competitive / Collaborative – Sanitation supported by CNN, Coke, Hilton Foundation and Morgan Stanley

Facility Not Fund

Different banks / Organisations – with different proposals on the Value chain

Inclusive, Leverages Different Financial Players / Concepts

Via Banks - Links into other core funders – ADB, IADB

Wider range of Investment opportunities – ultimately integrated

To many different constituencies including the corporate sector

Identifying a Single Language and Single platform - Integrating Social and Financial Profiling

World Sanitation Financing Facility
next steps single platform single language
QUALATITIVE PLATFORM >> A MECHANISM DEFINING WHAT IS EFFECTIVE TO THE CORPORATE / BANKING WORLD

PHASE 1 – Completed in March - http://www.changemakers.net/en-us/competition/waterandsanitation

PHASE 2 – Open Model Update with involvement of key Players

QUANTATIVE PLATFORM >> A MECHANISM DEFINING WHAT THE SOCIAL SECTOR HAS TO DO TO GAIN ACCESS TO CAPITAL MARKETS

Commenced this week with OPIC, UBS, Deutsche Bank, WSP, Keystone, SROI, Ashoka, Acumen, U of Geneva – combining the best of Top Down and Bottom up models – with Feedback Mechanisms and Audit Mechanism

NEXT STEPS – SINGLE PLATFORM / SINGLE LANGUAGE
mechanism to engage all players in scale looked at as a business problem
SIX GLOBAL BUSINESS LINES TO SOLVE THE SANITATION ISSUE (may be others)

1 - Municipal Financing ;2 - Public Toilets; 3 - Mortgage / Housing

4 - Small Entrepreneurs; 5 - Methane / Carbon / Energy; 6 – Fertilizer

>> SCALING - Three Tier Corporate Engagement – Primary (i.e. Toilet Manufactures, Secondary (Soap), Tertiary (Companies with an Opportunity Cost – Capture the Value of the Social Externalities)

>> COLLABORATION Social Entrepreneurs, Corporate , Social Sector The New Legal Paradigms >> L3C and CIC and New Intermediaries

>> ENGAGEMENT of the Banks – The need for Banking Skills!!

>> Are we part of a broader solution >> Water, Climate and Sanitation

MECHANISM TO ENGAGE ALL PLAYERS IN SCALE Looked at as a Business Problem
if i am a social sector organisation corporate what are the next practical steps now
PHASE 1

WORK ON PLATFORM – QUALATIVE & QUANTATIVE PLATFORM – UNIVERSITY OF GENEVA

CREATION OF A GOOGLE WORKING GROUP – SHARE MODELS

DESIGN BOTTOM UP FEEDBACK SYSTEM WITH KEYSTONE AND SROI – YOUR ENGAGEMENT NEEDED INDEED CRUCIAL

>> CONSUMERS ARE SEPARATE FROM FINANCIERS

WORK WITH WSP TO VERIFY FINANCIAL MODELS AND PROCESS AND MARRY TO TOP DOWN

IF I AM A SOCIAL SECTOR ORGANISATION / CORPORATE - WHAT ARE THE NEXT PRACTICAL STEPS NOW
the system can be changed in sanitation a new paradigm it is time for change
PHASE TWO

APPLY TO BUSINESS LINES ACROSS ALL POTENTIAL RETURNS > CAPACITY @ -100% to FOR PROFIT MODELS – DESIGN TEMPLATE

>> WHERE DOES YOUR EXPERTISE FIT?

>> NOT JUST SILVER BULLETS BUT THE MAGAZINE OF SOLUTIONS – NOV 2007 PM –GORDON BROWN AND UN SEC GEN - BAN KI MOON –“AN END TO SILOS”

PHASE THREE

>> INTEGRATED REINFORCING ASKS CREATING A COLLABORATIVE MARKET CAPABLE OF SCALING

>> NOT JUST AT “FOR PROFIT” (+5%) AND “NOT FOR PROFIT” (-100%) BUT ALL INVESTORS AND INVESTMENT POSITIONS TO ADDRESS SANITATION

HOW DOES FINANCE CHANGE THE INCENTIVES FOR ALL THE PLAYERS

>> A SYSTEM THAT REINFORCES COLLABORATION BETWEEN ALL THE PLAYERS IN MOVING A MARKET TO SCALE NOT FRAGMENTATION

THE SYSTEM CAN BE CHANGED IN SANITATION A NEW PARADIGM - “IT IS TIME FOR CHANGE”
slide13
“If we are prepared to use these kinds of (tax / legislative) incentives to enable business entrepreneurs to tap capital markets for the betterment of the economy, why would we not provide similar incentives to social entrepreneurs as they seek to tap capital markets for the betterment of society.

Financial experts ought to be developing new cutting edge instruments to make funding available to social entrepreneurs

Tax experts ought to be thinking about mechanisms that can support social enterprise in a meaningful way.

Legislators should encourage an environment that allows foundations to become more imaginative in support of social enterprise”.

WHAT DO I DO IF I AM A BANK OR GOVERNMENT ?Paul Martin - Former PM of Canada “The question I would put to you is quite simple” – Nov 2007

summary the importance of collaboration and scale
SUMMARY THE IMPORTANCE OF COLLABORATION AND SCALE
  • To solve the problems of Sanitation on a systemic basis requires:
    • Governments to change legislation – Tax treatment and Legal structures >> CIC, L3C
    • Empower the bottom of the Pyramid
    • Collaboration from the Social sector / NGO’s
    • Foundations / Donors – Leverage - HOW to draw in more Private capital - LEVERAGE THE 100% NOT ALLOCATE 5%
    • Corporates to engage in “for profit” for social impact
    • Banks bringing their skills to bear along the whole Value Chain
    • Creation / Evolving of Intermediaries to create Collaborative behaviour and Safeguard the Sector