Finnovation

Apr 21 2010

IDE WatSan in the Field: Creating a Market for Sanitation

By Vanessa Green

International Development Enterprises (IDE) is a leader in market-based solutions for rural poverty.  As a social entrepreneur in the water sector I looked forward to the opportunity to join eight of my finnovation peers on a field visit with the high-growth IDE Cambodia WatSan team.  We arrived at the IDE office just in time to pile into a van and head out to a village meeting where a sanitation education and marketing campaign was ongoing (see “Why Buy a Toilet”). 

IDE believes in creating markets for social products. The organization aims to be a catalyst for local social enterprises, “lighting fires and fanning the flame” with the goal of demonstrating the market for new social products.  To that end, the Cambodia WatSan team, lead by Cordell our guide for the field visit, plays three primary roles:

  1. Identify a development need and use a human centered design approach (in collaboration with IDEO) to create an innovative social product - in this case, The Easy Latrine. 
  2. Simulate demand with education and social marketing - “Easy to make, easy to use, easy to buy” 
  3. Generate supply by proving the model to local entrepreneurs in adjacent industries 

The product development phase for the Easy Latrine is complete and local manufacturing has begun.  The human centered design approach led to a manufacturing process that is 2-3x more efficient than standard latrines and thus production is quick and cost effective.  Now, the 20 person IDE WatSan team is focusing on creating both supply and demand.  To do this, they first they provide sanitation education and training to local entrepreneurs (selected because of their existing business in concrete products). Once the entrepreneurs see the business opportunity in sanitation, IDE provides technical training on latrine manufacturing and installation as well as business accounting support (e.g., suggested price, MFI partners, labor/materials cost, profit).  Finally, the IDE staff markets the product to demonstrate demand.  Over time, IDE plans to transfer the social marketing know-how to the entrepreneurs so that the market can scale organically.

IDE’s market-based approach strengthens local capacity and innovative potential.  However, IDE struggles with the fact that market-based implementation can be slower and less efficient than the direct implementation approach used by other NGOs.  Furthermore, if IDE succeeds in creating a sustainable market for their products they effectively put themselves out of business, a risky pitfall for a donor supported organization.  That said, IDE’s work with the Easy Latrine clearly provides a strong model for effective social enterprise facilitation.  By designing a locally relevant product and stimulating both supply and demand in the market, IDE is effectively creating a new, sustainable industry for an important social good.


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