Inventing to Meet Water Needs

It amazes me how almost all companies in the water business have at least one page explaining global water needs.  It's like everyone tries to sell the same product in exactly the same way in the water business.  I can memorise some of the more oft quoted statistics, mostly taken from the UN World Water Development Reports. 

The funny thing is that half these companies are not really doing anything to solve these problems.  Yes, everyone is indeed looking into cheaper, alternative ways of treating water and wastewater, and when the costs get low enough, the poor will eventually benefit.  But the poor are a "by the way".  It is clear what the target markets are -- the rapidly growing markets of China and the Middle East, where people who can afford present technologies may be willing to pay top dollar for the latest technologies. 

I have always wondered if it were possible to align the needs of the poor and the high-tech developments in the water industry -- I have been repeatedly told that altruism is an idealistic concept for the NGOs.  But more and more, I'm beginning to realise that it is possible.  And India may be leading the way. 

The Economist recently did an article on the new business models in emerging markets.  One of the business models is described as "reverse innovation", or the stripping of all the bells and whistles of modern innovation to the bare essentials that people need, and then toughening them up for the rough environments that they will be used in.  Like Nokia's mobile phones to India, which apparently have flashlights (frequent powercuts), multiple contact lists (several people share a phone), and rubberised keypads. 

I also stumbled upon Acumen Fund, a non-profit venture fund that invests in companies who provide affordable, critical goods and services.  It sounds a bit like the development banks (eg. Asian Development Bank, World Bank), except the fund actually provides venture "patient" capital to early-stage for-profit companies who are developing products for the poor, and they're willing to take on quite high risk companies.  I'm not sure how all of this actually works out in reality, but I'm hopeful that the availability of such funding will encourage more product development aimed at the poor.  Maybe after these products are developed, companies can reverse the "reverse innovation" again, and produce nicely packaged, yet still affordable versions of these products to the richer countries! 

Above: An affordable reverse osmosis system by Environment Planning Group Limited 

Source: Acumen Fund Website