HOPE - Extreme Poverty

The World Bank (Wiki) has pledged to end Extreme Poverty by 2030. Without completely eradicating extreme poverty, it would be impossible to solve Global Poverty on this planet.

However, due to bureaucracy, politics, greed & incompetence, this progress has been unnecessarily slow.

I believe an immediate solution is through Education & Entrepreneurship. This is already being successfully demonstrated by micro-loan organisations such as:

Kiva (www.kiva.org),
Microloan Foundation (www.microloanfoundation.org.uk )
Grameen Bank, started in 1976 by Nobel Peace Prize winner, Mohammed Yunus (Wiki)

By starting a global trend, primarily with Millennials and wealthier Families in the West &

Far East, we could create a culture whereby they would be enrolled for Two Years to help tackle the issues regarding extreme poverty by utilising either their Time and/or Money.

This form of conscription would allow them to develop new business skills or languages,

as well as a greater understanding of the challenges currently facing Humankind.

Investors & Business Angels would be inclined to support Entrepreneurs who focus specifically on poverty-solving solutions & innovations that can help an entire region in a developing country.

By creating a Global Army of principled Entrepreneurs would ensure that the entire Global Community will be in safer hands for many generations to come.

Artificial Intelligence (AI) is anticipated, within the next 15 years, to adversely affect employment in the 1st World. Estimates are as high as 40% redundancies in the next 30 years, in both blue collar & white collar jobs.

For example; Fully automated Robots can easily cope with the heavy lifting & packing in a warehouse on a 24-hour basis with no breaks, or health & safety, or insurance costs. Algorithms are already due to replace Day Traders in the Stock Markets, based on their ability to process data faster and more accurately than a Human being and therefore less likelihood of any costly errors.

In both cases, Employers would avoid expensive illness or severance costs to consider.

So there is a major problem on the near horizon…

In contrast, the developing world requires many technologies to help it improve. A simple example would be Communication, i.e. a Mobile Smart Phone to be used for talking to Customers and doing business & Banking via the Internet.

Therefore, the following equipment & systems would be required:

· Handset

· Electricity & Charger (e.g. Solar)

· Signal & Wi-Fi provider

· Training & Education

· Servicing & Upgrades, etc.

By encouraging Entrepreneurs in developing countries to develop skills and work with

1st world companies to provide these services in this sector alone could positively affect hundreds of millions of people.

Other key sectors include:

· Food & Agriculture

· Light

· Water Capture or Transportation of Water

· Electricity

· Heat

· Sanitation & Plumbing

· Affordable Home Construction

· Roads

· Clothing

· Healthcare

All of these technologies currently exist in the 1st world and Companies would automatically benefit from additional sales to the 3rd world. By creating a sustainable infrastructure it will be possible for the technology suppliers to make money from sales to the developing nations on an on-going, sustainable basis.

Mass unemployment is a key issue for every Government in the 1st World especially, due to the social and economic implications. Unemployment is an additional burden on taxpayers and society in general.

Unemployed people will be given jobs to effectively Mentor a business, or induvial, in emerging economies.

Therefore, with our strategy to monetise Extreme Poverty by creating jobs in the 1st World

as well as the 3rd World, could significantly help Governments avoid this important issue.

For Example;

1st World Mentor & 3rd World Entrepreneur

Teach Language (e.g. English, etc.)
Learn English for International Trade
Teach Accountancy
Financial Statements for Enterprise
Specialist knowledge, relative to Business
Learning skills, relative to specific Business
Technology knowledge for Trading, etc.
Access to International markets
Basic Hygiene & Healthcare
Improving the environment for Family.

The 1st World Mentor may communicate with the 3rd World business via the internet,

i.e. WhatsApp, Facebook, etc. (Alternatively via Correspondence). The Mentor could

visit the Entrepreneur (Under specific circumstances.) to volunteer in their respective community.

The Mentor may choose any Business relative to their respective Skillset. Otherwise, they could be taught the necessary skills before engaging with the 3rd World Entrepreneurs.

Each Mentor may have as many businesses in their Portfolio as possible. An average amount will be between 300 - 500 individuals & companies in one region, or country. Eventually growing to 1,000 plus, subject to workload and involvement.

As these Businesses grow and become much more established, the Mentor may choose to find new Entrepreneurs or Businesses or develop their existing relationships even further.

There are over 1 Billion potential Entrepreneurs currently living in extreme poverty in the emerging markets. With a global campaign, it will be possible to positively affect the vast majority of these men & women.

By creating sustainable epicentres within the community will allow the projects to become autonomous and self-reliant.

People in the developing world do not want hand-outs or charity, they want the opportunity to prove themselves to their Families & Communities the benefits of their hard work and endeavour.

The Strategy for Investment will be based on the following criteria;

Women comprise up to 70% of those currently in extreme poverty. However, Women are proven to the more diligent when repaying loans & fees. Therefore, 75% of all the funding will be allocated to them for their various projects.

We will seek natural Entrepreneurs and endeavour to invest higher amounts, as they will create the most jobs & income for their Staff and their Suppliers.

For Groups we will act as Guarantor* and encourage them to obtain loans directly from local Banks at a low rate of interest. In the event they are rejected, we’ll provide the required loan.

We will also guarantee loans for Communities, provided it is used for the following:

· Education
· Communication
· Health & Hygiene
· Water
· Electricity & Light

Once these loans are repaid, with interest, the capital may be reused on similar projects in similar regions. The interest on the capital will be offered back to the original Lenders as a dividend.

HOPE, and its Financial Partners, will aim to create several additional reserve funds to provide the following:

· Grants for Educational Equipment & Scholarships

· Emergency Funding for any Natural Disasters, etc.

· Equipment, i.e. Solar Lights, Water Harvesting Equipment, Agriculture, Technology, i.e. Mobile Phones & Internet (Used for e-trading (Wiki M-Pesa) and in conjunction with our Technical Partners.

· Equity Investments into unique projects that have highly scalable potential locally or internationally.

· Contingency Fund to cover for any losses from unrepaid loans.

*The Funding may also be leveraged and involve the Local Banks in the Region or City.

For example:

· HOPE invests money with the respective Banks in the various 3rd World regions.

· Rural Entrepreneurs, Groups or Communities, approach the Bank for a low-interest loan, using the HOPE money as collateral.

· In the event the Entrepreneur is refused by the Bankers, then HOPE provides the loan on an easy repayment basis.

· By engaging Bankers early, we would eventually approach the Central Banks to help address the larger issues and, in conjunction with Global Governments, eventually eradicate extreme global poverty.

Grameen Bank achieve up to 98% repayment of their mirco-loans, per annum.

It’s predicted there are over One Billion potential Entrepreneurs & SME’s within the developing world.