jsim presentation

8/6/2019 JSim Presentation

http://slidepdf.com/reader/full/jsim-presentation 1/41

Seeing Sanitation as anSeeing Sanitation as anOpportunityOpportunity

BY JACK SIMBY JACK SIM

Founder of World Toilet OrganizationFounder of World Toilet Organization

SCHWAB FOUNDATION SOCIAL ENTREPRENUERSCHWAB FOUNDATION SOCIAL ENTREPRENUER

& ASHOKA GLOBAL FELLOW& ASHOKA GLOBAL FELLOWThe views expressed in this paper/presentation are the views of the author and do not

necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of

Governors, or the governments they represent. ADB does not guarantee the accuracy of the

data included in this paper and accepts no responsibility for any consequence of their use.

Terminology used may not necessarily be consistent with ADB official terms.



What We KnowWhat We Know Most Domestic Sanitation is fundedMost Domestic Sanitation is funded

privately by informal sectorprivately by informal sector External funding for latrine hardware hasExternal funding for latrine hardware has

made little impression & donations cannotmade little impression & donations cannot

solve 2.5 billion needssolve 2.5 billion needs Toilets Provision does not equal ToiletToilets Provision does not equal Toilet

Usage, Hygiene and Public HealthUsage, Hygiene and Public Health

improvementimprovement



33

OpenOpen

defecationdefecation

continuescontinueswhile wewhile we

count toiletscount toilets



Opportunity in a Financial CrisisOpportunity in a Financial Crisis

Market shrinkage at Top of PyramidMarket shrinkage at Top of Pyramid

OverOver--capacities widespreadcapacities widespread

Massive and growing unemploymentMassive and growing unemployment

Businesses desperately looking for newBusinesses desperately looking for newcustomerscustomers

Base of Pyramid has 4 billion newBase of Pyramid has 4 billion new

customerscustomers

Low Cost, High VolumeLow Cost, High Volume



2.5 billiontoilet-less

people

500 million

toilets

A massive

marketopportunity



How big is the market?How big is the market?

PER UNIT COST:Promotion, design,

testing,manufacture,distribution,

transport, etc:Multiplier Effect of

each channel

500 millionhousehold

toilets2.5 billion people



- Schools

- Religiousbuildings

- Markets

- Transport

- Recreation

Add MarketAdd Marketforfor

public toiletspublic toilets



-Installation

- Operation

- Maintenance

Joe the Plumber

Add MarketAdd Marketforfor

servicesservices



- Soap

- Slippers- Equipments

- Toilet paper- Etc

Add Market forAdd Market forconsumablesconsumables



- Fertilizer

- Soilconditioner

- Biogas

Add MarketAdd Market

forfor

nutrientsnutrients

recycledrecycled



Add Market forAdd Market for

InnovativeInnovative

FinancialFinancial

productsproducts

-Big Banks-Micro-finance

-Donors-Government



AddMarket for

ToiletUpgrades



Add Disaster Markets

1313



Add Military Markets

1414



Return onReturn on

$1$1

invested =invested =

$9$9

EconomicBenefits

Hutton, Haller & Bartram,WHO 2007



PotentialPotential $1 trillion$1 trillion

global BOPglobal BOPsanitation industrysanitation industryHow do we tap this market?



Opportunities

• When China , India, Russian marketsopens up, they were BOP markets

• China’s multi-billions New SocialistCountryside Program

• 30,000 New Grads as Rural Teachers

• Rubanization: Reducing Slums in citiesby building multiple small ( 1km diameter)

Ruban Centers in farmlands.• Centers of Excellence growing, eg

Stanford, Singapore’s LKYSPP, Skoll in

Oxford, Sussex, Wharton, UNC, etc 1717



Transform The DonorTransform The Donor

ModelModel

The Poor is not helpless, andThe Poor is not helpless, and

incapable.incapable.

No cut & paste approachNo cut & paste approach

TopTop--down donordown donor--decideddecidedprograms approach not workingprograms approach not working

There is not enough donorsThere is not enough donors

anyway.anyway.



Customers Centered ModelCustomers Centered Model Customer involvement is critical for longCustomer involvement is critical for long

term sustainabilityterm sustainability

Subsidize market development instead ofSubsidize market development instead of

hardware costshardware costs Develop rural markets for sanitationDevelop rural markets for sanitation

services empowering local entrepreneursservices empowering local entrepreneurs

Facilitate linkages between demand andFacilitate linkages between demand and

supplysupply



People at BOP are:People at BOP are:

-- IntelligentIntelligent-- DiscerningDiscerning

-- Able to chooseAble to choose

-- Quality/brandQuality/brand

consciousconscious

-- Prudent withPrudent with-- their moneytheir money

-- Clients withClients withdiffering needsdiffering needs

-- EntrepreneurialEntrepreneurial



AspirationMarketing

Object of

Desire

&

StatusSymbol



Driving Demand ThroughDriving Demand Through

Community Led Total SanitationCommunity Led Total Sanitation



CostCost--EffectivenessEffectiveness – – IDEIDE

VietnamVietnam

Every $1 spent in promo & marketingleveraged $3.6 Market Value of

Latrines Built without subsidySource: Frias & Mukherjee 200

20022002--2006: 200% increase in sanitation access2006: 200% increase in sanitation access



Building Supply Chain + CLTS

Bangladesh

On track for MDG: 10,000 private ruralOn track for MDG: 10,000 private rural

workshops, national CLTS programworkshops, national CLTS program



Success Models in NonSuccess Models in Non--

Domestic Public ToiletsDomestic Public ToiletsIndiaIndia’’ss SulabhSulabh International Pay Toilets:International Pay Toilets:

CrossCross--Subsidizing LocationsSubsidizing Locations

KenyaKenya’’ss IkoIko--ToiletsToilets ““Toilet MallToilet Mall””::

CrossCross--Subsidy from other servicesSubsidy from other services’’ incomeincome



From silosFrom silos……Global OrganizationsGlobal Organizations

Policy makersPolicy makersGovernmentGovernment

Local governmentLocal government

Community LeadersCommunity LeadersTechnology & ResearchTechnology & Research

Financing CommunityFinancing Community

Supply Chain MembersSupply Chain Members

End UsersEnd Users



Weave a market networkWeave a market network



Develop new products at right price

Most of our toilet models are fartoo expensive for BoP

Source: Heirli & Frias



Appropriate Technologies Exist• EAWAG Compendium of Sanitation

Systems and Technologies• WEDC Courses & Publications

• UNESCO-IHE• Sustainable Sanitation Alliance

• Stockholm Environment Institute

• Gtz

• University of Life Science, Norway

• More… 2929



Bringing in Big BusinessesBringing in Big Businesses



SintexSintex: already actively developing sanitation: already actively developing sanitationoptions for BOP marketplaceoptions for BOP marketplace

Cost reduced using prefab plastic BioCost reduced using prefab plastic Bio

--gasgas



4,000 Low Cost Distributors in Bangladesh4,000 Low Cost Distributors in Bangladesh



Scaling BenefitsScaling Benefits•• Lower unit costsLower unit costs-- economies of scaleeconomies of scale

•• Lower transaction costsLower transaction costs

•• Scale up existing workScale up existing work

•• Create new jobs & microCreate new jobs & micro--enterprisesenterprises

•• Fill gaps, facilitate financingFill gaps, facilitate financing

•• Link supply to demandLink supply to demand

•• Inspire innovationInspire innovation



GoalGoalMake sanitation:Make sanitation:

-- EasierEasier

-- FasterFaster

-- CheaperCheaper

--BetterBetter

-- SexierSexier

--TrendyTrendy

-- Like Google, Ikea, Apple,Like Google, Ikea, Apple,

YouthYouth--oriented,oriented, IpotIpot,, IpeeIpee, etc, etc



Star Government PolicyStar Government Policy – – Support & CLTS CampaignsSupport & CLTS Campaigns

with Leadership & Fundingwith Leadership & Funding

– – Partner with Private Sector,Partner with Private Sector,Facilitate EntrepreneurshipFacilitate Entrepreneurship

– – Lend LegitimacyLend Legitimacy

– – LeadershipLeadership – – Reward community afterReward community after

successful implementationsuccessful implementation

– – Regulate disposal & reuseRegulate disposal & reuse

– – Set up enabling conditions forSet up enabling conditions forinvestments in Sanitationinvestments in Sanitation



3636

PPP Investment ReturnsPPP Investment Returns Consumer Demand key to successConsumer Demand key to success

Government Economic Rate of Return canGovernment Economic Rate of Return cancomplement Private Sectorcomplement Private Sector’’s Internal Rates Internal Rate

of Returnof Return

Let Private Portion of funding earn returnsLet Private Portion of funding earn returns

even if the whole project appears unviableeven if the whole project appears unviable

Cost of Inaction is higher than InvestmentCost of Inaction is higher than Investment



Health as an Economic Driver

3737



WTOWTO’’ss Leverage ModelLeverage Model

--Delivering Sanitation throughDelivering Sanitation through

bridging transactionsbridging transactions

Strategy: – Collaborate

– Synergize – Deliver



19 November World Toilet Day19 November World Toilet Day

as Official UN Dayas Official UN Day

-- Need to keep momentum of IYSNeed to keep momentum of IYS

-- WTD already celebrated worldWTD already celebrated world--widewide

-- Leverage on Officialdom & LegitimacyLeverage on Officialdom & Legitimacy

-- 170 countries signatories needed170 countries signatories needed

-- Submission in preparation now forSubmission in preparation now for

approval at the UN General Assemblyapproval at the UN General Assembly

20102010

CC l b l



Create globalCreate global

BOP market infrastructureBOP market infrastructure

New marketsNew markets

New vocabularyNew vocabulary

New productsNew productsNew mindsetNew mindset

-- Start imperfect &Start imperfect &

improvise as mattersimprovise as matters

become clearerbecome clearer

jsim presentation

Documents