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RE: What type of investment to spread “Market-based strategies that benefit low-income communities”?
Posted by: Graham Douglas, Integrative Federation, Founder
September 22, 2005

Stephanie,

As you indicate, this is indeed a big subject.

A short answer is invest in physical, social and cultural infrastructure to facilitate meeting the demands of low-income communities as formulated by bottom-up local groups that follow sound integrative planning and governance processes.

A longer answer is given in the following extract from a paper about the Integrative Improvement Institutes Project (a copy of the paper is available on request to integrative@optusnet.com.au):-

"Integrative Thinking™ > Integrative Governance™ > Integrative Improvement™ > Integrative Capitalism™ > Integrative Democracy ™ Linkage

54 This linkage is perhaps most readily explained by considering some broad questions and answers about the practical implications of the Integrative Improvement approach.

55 Why would adopting the Integrative Improvement approach benefit companies? a) Planning, production, marketing and distribution costs would be reduced because demand based on meeting the rapidly changing needs and wants of end-users would be known accurately before planning, production, marketing and distribution of goods and services took place and customer satisfaction would be monitored quickly, accurately and automatically. b) Competitiveness and revenues of existing and start-up businesses would improve because end-users would have their demands satisfied well. This would encourage repeat business, increased numbers of customers for existing businesses and the growth of new businesses stimulated by seeing the success of those following the Integrative Improvement model. c) Good governance in businesses, based on stakeholder engagement, trust, accountability, responsible behaviour and transparency at all times in all organisations involved, would counter the current tendency to poor governance in government that adds to business costs. There would be less need for regulation and embedded tools such as Decisionality would help ensure compliance so there would be fewer opportunities for delays and corruption.

d) Adopting Integrative Improvement would address the main concerns expressed in the following extract from “Regional perspectives on 'Sustainable Livelihoods and Business” on the website of the World Business Council for Sustainable Development at http://www.wbcsd.ch/plugins/DocSearch/details.asp? type=DocDet&ObjectId=MTMwOTY.

"The highlights from these regional dialogues are summarized in this brief report. They have been organized around the analytical framework presented in "Doing business with the poor: a field guide", which looks at SL [Sustainable Livelihoods] business models through the lens of 13 basic business questions. The questions that generated most discussion and input from participants were: • What are the motivations to doing business with the poor and how do we operate a mindset shift inside the company? • Do we understand the real needs of the market and do we have the right product to offer? • How do we finance the investment, ensure that our product / service is affordable and that payments are collected? • How can we improve our supply chain? • How can we replicate or scale up succcessful business models? • How can we reach our customers? "

56 How would adopting the Integrative Improvement approach help ensure that the type of development promoted is appropriate for poor communities? a) The end-users/citizens of these poor communities would learn how to negotiate the change from what they have to what they want and build and govern their organisations in a way that quickly and inexpensively formulates and communicates their demand for goods and services to potential suppliers. b) Among these goods and services would be the public goods such as basic health services, justice and security that their governments are in the best position to supply. The Integrative Improvement approach would help poor communities engage more effectively to achieve these public goods.

c) Businesses from within or without the poor communities would operate with good governance from the outset and therefore be well-attuned to meeting the changing needs and wants of those and other communities. 57 How would adopting the Integrative Improvement approach help ensure better governance in business, government and civil society organisations?

a) All involved would be trained in NEW Integrative Thinking so all in an organisation would have a common basis for communication – fundamental for success in any enterprise.

b) What constitutes good governance is addressed directly in templates that are used for preparing governance policies common to all organisations so organisations would have a common basis for communication with other organisations – another basis for success in any enterprise.

c) Tools to ensure compliance with these policies are embedded in the policies.

58 How would adopting the Integrative Improvement approach lead to Integrative Capitalism?

a) Capitalism has many definitions but its main features are a free market for goods and services, private ownership and control of the means of production, distribution and exchange of goods and services except for public goods and services which are provided by governments or in conjunction with governments. (At present, capitalism is distinguished by a tendency for people to regard our world as a world of parts that have to be managed into a stable state and from one stable state to another by managers who are trained to think unintegratively rather than integratively – the way nature, our brains, bodies and minds tend to function.)

b) Integrative Capitalism retains these main features but enhances their operation by treating people and our physical, social and cultural environments as a self-organising whole.

c) More specifically, adopting Integrative Improvement would improve the operation of the market by clarifying demand quickly and accurately and by improving governance of organisations to meet that demand. Individuals and organisations would tend to think and act integratively. This would tend to improve their creativity and performance and hence enhance sustainable development.

59 How would adopting the Integrative Improvement approach lead to Integrative Democracy?

a) The integrative basis and self-organising structure of Integrative Improvement and the tools embedded in the Integrative Improvement approach would help achieve individual and organisational integrity, stakeholder engagement, trust, responsible behaviour, accountability and transparency so the need for regulation and government intervention would be diminished.

b) The voice of civil society and businesses would be clearer and more structured so governments would be better informed and better able to integrate the views of all in their decision-making and actions.

c) All would have a common basis for communication – the essential ingredient for any successful enterprise including democracy. Our currently disparate democracy would become Integrative Democracy!"


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