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Global Poverty Alleviation: A Case Book

Abstract

Poverty is created and sustained by a system, not merely low income. A weak infrastructure precludes safe water, electricity, efficient food production and distribution. The absence of a rule of law and/or dangerous neighbors, poor education, and scarcity of health facilities all exacerbate poverty. All of these factors work together to create a system of poverty that becomes almost inescapable. In this chapter we include four cases of projects aimed at addressing the system of poverty. Eskom, the leading energy company in South Africa faced the daunting task of electrifying neglected communities in that country. The Volta River Project, demonstrates the difficulties of providing adequate power and water in Ghana. Transforming Education In Rural Haiti: Intel and L’Ecole De Choix, narrates a school project in earthquake-ravaged Haiti, and Zynga, a large interactive social gaming company, embarked on a series of efforts to raise funds through its games for various antipoverty initiatives in the developing world.

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Notes

  1. 1.

    Fictitious name.

  2. 2.

    For a brief historical perspective of South Africa, see Appendix 1; a historical description of Eskom’s background, Appendix 2; a description of the 1994 elections and the Reconstruction process that was outlined, Appendix 3; a description of Eskom’s corporate initiatives and policies under Apartheid, Appendix 4; and for a description of Eskom’s stated commitment to the South African reconstruction process, Appendix 5.

  3. 3.

    Programs used to narrow the discriminatory gap between white and black South Africans.

  4. 4.

    African National Congress, The Reconstruction and Development Programme, (Johannesburg, South Africa, 1994).

  5. 5.

    People could settle on municipal lands under new South African law, which meant that thousands of people were constructing make-shift structures for houses in areas that were not designed for residential development (e.g., areas beside freeways and even airport runways).

  6. 6.

    The South African Rand fluctuated against the U.S. dollar in the range of 3:1 in 1994 to 6:1 in 1998.

  7. 7.

    Reconstructed from SA to Z: The Decision Maker’s Encyclopedia of the South Africa Market (Johannesburg: Eskom, 1996).

  8. 8.

    One generation facility would cost approximately ZAR16 billion and take several years to build.

  9. 9.

    Eskom annual report (Johannesburg), 1994.

  10. 10.

    The Khoikhoi (aka the Hottentots).

  11. 11.

    Louw, L., and F. Kendall. 1986. South Africa: The solution Ciskei, South Africa: Amagi Publications.

  12. 12.

    Louw, L., and F. Kendall.

  13. 13.

    Orpen. Productivity.

  14. 14.

    The mining shafts were going deeper into the ground and needed to be ventilated.

  15. 15.

    The first commercially supplied electricity in South Africa.

  16. 16.

    Escom was renamed Eskom in 1987.

  17. 17.

    South Africa has 91 % of the world's manganese reserves, 82 % of its platinum group metals, 58 % of its chrome, and 53 % of its gold. As a result, South African mines are deeper than any other country in the world, at depths of almost 4 km in places (e.g., Western Deep Levels Mine).

  18. 18.

    Eskom annual report, 1997 (Johannesburg).

  19. 19.

    Offei Ansah, Jon. 1995. South Africa: Large energy economy enjoyed by few. African Economic Digest, July 31. Although this fact is not emphasized in Eskom’s literature, it is likely that this excess capacity may be one of the main reasons why Eskom began electrifying schools and homes as early as 1988 and the early electrification programs in 1990.

  20. 20.

    April 26–April 28, 1994.

  21. 21.

    “South Africa,” Hilfe Country Report (July 1996).

  22. 22.

    The Conference Board, 4.

  23. 23.

    “South Africa: Large energy economy enjoyed by few, “African Economic Digest (July 31, 1995).

  24. 24.

    Adams, Peter, and Eskom Spokesman, in Bob Drogin, “South Africa bringing power to the people,” Los Angeles Times, January 31, 1996, A1.

  25. 25.

    See Elling Njal Tjonneland. 1989. Pax Pretoriana: The fall of apartheid and the politics of regional destabilization. Uppsala, Sweden: Scandinavian Institute of African Studies.

  26. 26.

     Alperson, Myra. 1995. Foundations for a new democracy: Corporate social investment in South Africa. Johannesburg: Ravan Press, 70.

  27. 27.

    Eskom, “Bringing power to the people,” video prepared for the Edison Electric Institute, 1996.

  28. 28.

    Drogin, “South Africa bringing power to the people.”

  29. 29.

    Eskom’s goal was to produce and distribute the cheapest electricity in the world.

  30. 30.

    Chairman of the Electricity Council.

  31. 31.

    Eskom, Eskom Corporate Profile, 1995.

  32. 32.

    Eskom.

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  34. 34.

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  35. 35.

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  36. 36.

    Used as a protest against the apartheid government. See Eskom B case.

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    Kevin Morgan, legal adviser to the South African National Electricity Regulator, in an interview with Africa News, August 9, 1996.

  40. 40.

    Fictitious Zulu name.

  41. 41.

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  42. 42.

    Keller, Bill. 1993. Township gets electricity (and it’s free, too). New York Times, September 1, 1993.

  43. 43.

    Boycotting payment for service as a protest of the apartheid government.

  44. 44.

    Interview with Paul Maree (Eskom manager for the Electrification Program).

  45. 45.

    See “Eskom and the South African Electrification Program (A)” (E-0162).

  46. 46.

    Fictitious name.

  47. 47.

    SA to Z: The decision maker’s encyclopedia of the South African consumer market (Johannesburg: Eskom, 1996).

  48. 48.

    Section 2.1.1 of The Reconstruction and Development Programme, African National Congress, 1994.

  49. 49.

    Soweto, South Africa.

  50. 50.

    Total area of 471,000 mi2 as compared to 270,000 mi2.

  51. 51.

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    Case writer interview with Laura Hartman, Chicago, March 19, 2010; unless otherwise indicated, all subsequent attributions derive from this interview.

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    “Franchises” and “studios” both referred to those separate divisions of the company responsible for a particular game. For example, within the company, the Zynga team that developed and supported FarmVille was interchangeably referred to as “a franchise” or “a studio.”

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    For examples of user and media coverage, see: Ashby, Alicia. 2009. FarmVille’s sweet seeds raise $487K for charity. EngageDigital (blog), October 20, 2009, http://www.virtualgoodsnews.com/2009/10/farmvilles-sweet-seeds-raise-487k-for-charity.html (“Zynga’s Sweet Seeds for Haiti promotion in FarmVille may in fact be the single largest amount of money raised for charity through sale of specific virtual goods to date.”); Takahashi, Dean. 2009. Zynga’s FarmVille gamers donate to Haiti’s poor via virtual goods. VentureBeat, October 20, 2009, http://venturebeat.com/2009/10/20/zyngas-farmville-gamers-donate-to-haitis-poor-via-virtual-goods; Nash, Adam. 2009. Farmville economics: Sweet seeds are almost genius…,” Psychohistory: The Personal Blog of Adam Nash (blog), October 5, 2009, http://blog.adamnash.com/2009/10/05/farmville-economics-sweet-seeds-are-almost-genius; Gunnin, Lucinda, Farmville’s sweet seeds for Haiti charity event underway. Associated Content from Yahoo!, October 8, 2009, http://www.associatedcontent.com/article/2262915/farmvilles_sweet_seeds_for_haiti_charity.html. Accessed 4 July 2011.

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    Like other social games, FarmVille was played in real time, allowing online users to sign in at their convenience and, through personal avatars, work on their unique simulated farms. Because the game was always available, studios had to “go live” with new features and market items without a lapse in availability. This raised the stakes for Majekodunmi’s understanding FarmVille’s culture in order to introduce a game-appropriate item the first time around that would launch the brand-new company-wide social strategy.

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    The Spanish, under Christopher Columbus, had taken control of the island from its natives in 1492 and their rule lasted until the French took over in 1659.

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    These “credits” were a virtual currency that the site’s visitors could use to purchase – via credit card and PayPal, among others – “virtual” goods offered in any of the games or applications.

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    Cutler.

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    The exchange rate on June 2, 2010, was HTG39.5030 to (U.S. dollars) USD1.00.

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    All amounts are in Haitian gourdes. The exchange rate on June 2, 2010, was HTG39.5030 to USD1.00.

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Albert, P.J., Werhane, P., Rolph, T. (2014). Technology and Capacity Building. In: Albert, P., Werhane, P., Rolph, T. (eds) Global Poverty Alleviation: A Case Book. The International Society of Business, Economics, and Ethics Book Series, vol 3. Springer, Dordrecht. https://doi.org/10.1007/978-94-007-7479-7_2

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