Meeting with Ricardo Young – Can the BRICS really evolve as FUTURE economies?

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“Brazil has all the conditions to evolve in the new world” (Ricardo Young) but will it evolve or will it continue grow the old [economic] way?

I was lucky to get over an hour of time with Ricardo Young the ex Founder and President of Ethos Institute, Brazil’s leading sustainability think tank, and now leader of Instituto Democracia e Sustentabilidade. Ricardo himself ran for Senate representing the Green Party in São Paulo. As I understand it he gained 4 million votes [unconfirmed] on the promise of prosperity and sustainable growth for all. He is a key advisor to Marina Silva, Brazil’s ex Environment Minister, who ran for presidential elections in the 2010 elections winning 19% of the first round votes (nearly 20 millions Brazilians). Together they are championing a new political movement in Brazil.

Ricardo is straight talking; he’s tight on time and he’s a man with a mission to make Brazil a true 21st Century economic leader, building a sustainable economy working and championing capitalism 2.0. Yes, now is certainly the BRICS’ time. Europe and America have run into the ground on free market capitalism, industrialization of everything, and debt-driven consumer culture. The evidence is apparent; the ‘old way’ is no longer serving society or planet well. The future, which we are in already, needs to be different not least because the old paradigm is not financially sustainable, as we have seen with European and US market collapse. Nor is it environmentally viable over the longer term.

Ricardo talked of a Brazilian government that had for the last 30 years aimed to be one of the worlds leading economies; with the ambition that Brazil would indeed be the future economy. Brazil’s time has now indeed come. But, as Ricardo observed, much like other BRIC countries Brazil is building its leadership on an outdated model of capitalism and the majority current world view. There is nothing ‘future’ about the dominant approach to growth in Brazil despite how successful it may appear by building on the new middle classes spending power. Read More…

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A Spirit of Enterprise and Acceptance

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November-December 2011

I have met and connected to some extraordinary people on my five week exploration of Brazil. I came to Brazil to uncover insights about the country, its economy, society, culture and history; and insights on sustainable business and social innovation. I also of course came to enjoy Brazil’s diverse culture and stunning landscape. The following posts are my reflections on what I’ve come to understand about the country; my words are just one lens on this country from someone who is new to it.

This is a country that welcomes people without prejudice but with pleasure in ones interest in it. Without much effort I have met, spent time with, and made important connections with social entrepreneurs, heads of sustainability think tanks, corporate leaders, ex NGO people now working in the Favelas on enterprise models for solving social issues, consultancies, agencies and academia. I have stayed with families, friends of friends, or those who are now my friends. Wherever I have been I have been helped and supported along my journey – largely by Brazilians but sometimes expats. (See the full list here).

A spirit of enterprise and of passion sits within the heart of the people of Brazil. This is coupled with extraordinary warmth and a deep-rooted creative culture – the music, dance, Capoeira, Afro-influence, the food, and the colour of beach life etc. Brazil is like nowhere and everywhere mixed together. It has a taste of the American values of acceptance and freedom; but it has humanity and passion and a strong sense of community rooted in the Latin culture. It is happily multicultural, diverse and integrated, yet socially divided by class. The class divisions are made of fences not brick walls – there is both curiousity and in some directions aspirations with the other class but there is also a fear of each other. The rich are terrified of the poor and the poor live under the command and by the pocket of the rich. Some describe this as a ‘C21st slave trade society’ and talked of the motivation to keep the poor uneducated in order to maintain low cost labour and a seemingly apathetic (to corruption) society. Read More…

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Brazil’s Global Identity in the C21st

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November-December 2011

Could Brazil identify and champion 200 sustainability champions – microbusiness, small, or large – and present to them world between now and Rio +20?

I spoke at length with Renato Raposo who is Head of Communication for the Ethos Institute – Brazil’s leading sustainability think tank – about the need to communicate an identity for Brazil business in the global economy that goes beyond mining, oil and big agriculture.

Renato’s position at Ethos is fairly new; his task is to communicate the Institute’s work (internally and to the world) and present a picture to the world of sustainable business leadership coming from Brazil. The challenge is also to communicate Brazil’s point of view on the future of business in the C21st and in particular sustainable business.

While here I have heard a lot that ‘Brazil’s time is now’. Brazil’s time now is also an opportunity to take a leadership role in shaping what business looks like in this century, given the planetary challenges and technological revolution underway. Other emerging markets are vying for a position here (e.g. China’s clean energy revolution; mobile tech and empowerment in parts of Africa; technology and social change in India etc.). And all eyes are on the emerging markets. The World Economic Forum states that by 2025, Brazil, China, India, Indonesia, the Russian Federation and South Korea, will account for 50% of the world’s economic growth. Read More…

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Favela Pride?

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November-December 2011

Interesting. The Favelas, certainly in Rio anyway, have a sort of mystique and value to them that is rarely portrayed to the outside world. Nor is it portrayed in the Brazilian media. There is an element of pride that Rio holds about these communities as well as the obvious fear and prejudice held amongst the extreme wealthy segments. I met many people who talked about the music, the creative output, the community, the parties, the art and more produced by communities living in Faveles. Indeed the Saturday night I was in Rio was the night of the third anniversary of one of Rio’s best ‘Favela parties’ in Rochinha which has recently been ‘pacified’ by the police. I heard about this party from my Portuguese language teacher; I heard about it from my AirBnB hosts; I heard about it from my Brit / ex-Pat friends in Rio – all of them the ‘upper middle classes’.

So I can’t help thinking there is massive potential within these communities to be unlocked and importantly to be celebrated. There seems to be a space for the Favelas in the heart of many Cariocas (Rio people) and Brazilians. And clearly the Fevalas are a part of the identity of Rio and Brazil.

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Expanding Capitalism with the Expanding Middle in mind?

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November-December 2011

How can businesses help citizens across the globe bridge challenges posed by environmental, economic and social pressures to become responsible consumers? (Paul Polman, CEO Unilever)

I spent the day with Anderson França otherwise know as Dinho (@Dinho_Rio), who I was introduced to by Jimmy Greer – the man behind a lot of great knowledge about Brazil, social business and currently writing a book with Umair Haque on post-consumerism.

Anderson and his smart and sassy colleague Jessica took first took me to the infamous Café Columbo in Centro Rio, and then to a Favela, where we spent hours discussing the next model of enterprise for Brazil and behind-NGO models. Anderson spent five plus years working with Afro Reggae in the Favelas; before that he spent time teaching music in the Favela communities. He talks of the ‘myth of Favelas’, referring to the untouchable and helpless image of the Favelas portrayed to the outside world, which he feels the many NGOs play to.

Today he is the founder of Dharma Comunicação (@DharmaAgencia). Dharma’s mission is to leapfrog government and NGO intervention in the Favelas and to champion social change agents inside the communities. He wants to create a social venture accelerator inside the Fevalas and to promote a true image of the human potential within these communities.

Dharma’s core asset is the relationships Anderson has with the communities and his ability to mobilize members of Favela, civil society and brands, to get to truly understood needs and opportunities. Dharma recently brought together a significant group of stakeholders for Telefonica to explore the role of mobile tech and social innovation. He says brands struggle to understand these communities too; they just do not have the embedded relationships required to understand the needs and arrive at high impact solutions that will be embraced and owned.

Anderson and Jessica took me to Complexo do Alemão, one of Rio’s many Favelas, with nearing 100,000 inhabitants. Read More…

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The Expanding Middle class – Can IKEA serve this demographic with sustainable solutions?

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November-December 2011

Brazil usually relies on social demographic to segment the market, classified as classes A, B, C, D, and E. A classification referenced a lot in general conversation in Brazil.

In Brazil, the ‘Expanding Middle’, as defined by Goldman Sachs, might be described as classes E and D moving into C. These are people who typically have not finished high school (often semi-educated) and in low paid jobs such as housemaids, bartenders etc. but are increasingly moving out of this situation. Andréa Novais has written a clear definition on Brazil’s social classes in The Brazil Business. (It is striking to me how much class, and these distinct classifications, are used to describe civil society in every conversation). READ MORE… Read More…

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What Are You Feeling?

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November-December 2011

After a couple of hours walking and talking to community members and feeling my way through the Favela, with Anderson França Dharma Comunicação, he asked me “What are you feeling?” We were hanging above the community in the red cable car I describe above when he asked me this question.

What did I feel? I felt that the community is a community of people, of humans, and of potential. And that in some respects, drug problems aside, it functions well as a community given the extreme lack of resource and support provided to it and the totally inadequate access to education. These are resilient and resourceful people, working hard to function. I said that I felt like I was hanging over 100,000 people’s worth of untapped human potential and that I could feel the potential. This is only one of the many other communities in Rio and then beyond, across Brazil. The UN predict that by 2020 55 million people will be living in Favelas in Brazil according to the Rio Times. The potential is absolutely vast. Read More…

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Micro-financing Climate Risk

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I’ve been researching the emerging market of Climate Adaptation for a consulting project (managing what happens around us as our climate changes) and came across a smart micro-finance model for financing risk insurance for those who live on under $4 per day. “The World’s First Insurance Intermediary for The Poor”, MicroEnsure is an insurance intermediary dedicated to serving the poor throughout the developing world with an affordable and appropriate range of insurance products.

MicroEnsure are effectively and aggregate working on behalf of the poor around (weather-related) risk issues.

Given Climate Change and Adaptation are a large risk issue to poor communities, it’s a timely model. It will be interesting to see emerging BOP opportunities, like this, around climate change or other environmental drivers and adaptation needs. Lots of opportunity here rich nations…

Financing adaptation is an emerging market, I think?

Ps. FT Awarded MicroEnsure with a Sustainable Banking Award.

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