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Society and Public Interest

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Submitted By kbs0292
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Kayla Smith
Society & Public Interest
November 18th, 2014
Quiz 4

1. Parhlad in his discussion, focused on business principals that can be implemented to serve the BoP markets. Some of these principals were discussed in terms of a halfway house servicing poor pregnant teenage girls. Our goal was to generate revenue while serving a social goal of assisting people and breaking the cycle of poverty. We focused on this halfway house (or safe haven) getting the girls housed to provide a service to the company. This service would hopefully generate enough revenue to pay the rent for the house itself and for its generated revenue. We discussed Parhlad’s principals by designing this halfway house in a way that would show others we could still make money while catering to the poor. The services that we came up with for the girls to be involved in (based on Parhlad’s principal of innovation) included janitorial and maid services, development of a farmers market, childcare services etc. Our goal was for the girls to provide consumers with their skill sets so that they could earn money (based on Parhlad’s principal of Price Performance) all while being provided an education and safe environment in the halfway house. Parhlad gave us the base for our ideas of implementation challenging societies norms that helping the poor does not help us. By creating this safe haven and even making it a sort of respected establishment, we could distribute the house in nicer areas so that the girls’ peers and families did not influence them.

2. Culture is the learned meaning system of a people group that provides a guide for those in the group about how to think and to behave. A member of a cultural group commonly shares the values, beliefs and attitudes and these can support and promote prosperity because they strongly affect perceptions of individuals and organizations about the way to win. In terms of Afghanistan, these ideals can affect its market development. Afghanistan is progress-resistant in that their culture reinforces mistrust and gives emphasis to lesser values. Afghanistan also operates in a patriarchal hierarchy in which males dominate others. This leaves no room for women to dominate the market place or expand it in terms of purchasing and expansion. In other countries, men are focused on political issues and making money while in women focus on purchasing for the family and maintaining their home. Due to Afghanistan’s culture, this is not the case and men are focused on everything letting the market decrease due to less time spent purchasing.

3. Population in Afghanistan gas a rate of urbanization at 4.41% meaning there is a large concentration of people in cities to make industrialization more of a possibility. Citizens are moving to the city and worsening housing shortages resulting in expansive slums. Although this move is increasing industrialization, towns and villages in rural areas have emptied leaving mostly the elderly left to fend for themselves. While this is an issue, Afghanistan’s largest issue is their health. The World Health Organization classifies Afghanistan’s health status as one of the worst in the world. They have very high maternal mortality counts and high infant mortality rates as well. Though this does cut back on population, this is not viewed as a positive characteristic and in turn, Afghanistan’s market cannot further develop without the strength and push of its people. In relation, Afghanistan’s education plays into the aspect of population characteristics as well. In 2002, adult illiteracy for males was 49% and 79% for females being the highest illiteracy rate in Asia. Afghanistan provides free education but only 53% of boys and 5% of girls are enrolled. Without education, Afghanistan cannot develop. Smart decisions will not be made, government takeover will be more common and the marketplace players cannot make informed buying purchases or correctly stimulate the economy. Health and education of a country’s population contribute much to country development because they represent important elements of human capitol- the wellness and knowledge of a society.

4. It is said that temperate regions of the world are more developed than tropical countries. It is also said that costal locations have more of an advantage in terms of transportation costs and increased access to markets. Afghanistan has neither of these. Climate is very important in terms of market development. It helps determine production and indirectly affect the organization of society and possibilities for development. Climate can determine the means of production (i.e. if you can successfully farm a small farm or a plantation). Afghanistan has more of a tropical climate than a temperate one. With its high temperatures, soil erosion is dominant as well as its deforestation that has resulted from the war. Afghanistan has a loss of vegetation, which creates a higher risk of floods, endangering the people. These characteristics are a disadvantage in Afghanistan’s market development. If the climate itself isn’t bad enough, the high temperatures can also lead to high rates of diseases due to flies and mosquitoes flourishing in warm climates. Afghanistan is also at a disadvantage due to its geography in itself. Afghanistan is landlocked. This characteristic of its geography leads to complications of foreign trade. The landlocked nature can cause strife between neighbors that have civil strife and lead to poor transport links to the coast. By not being a costal location, Afghanistan has a barrier to entry and in relation, is hurt in terms of its market development. As the book says, the best way to develop markets for Afghanistan is to overcome the distance through increased globalization in the economic sectors. That is what could help the “Tyranny of Geography.”

5. The economy of Afghanistan has improved since 2002 but still faces major issues. It still remains of one of the least developed countries in the world, as the nations GDP is $34 billion. 35% of Afghanistan’s population is unemployed and lives below the national poverty line so they are suffering from shortages in drinking water, electricity and housing. These numbers alone can say a lot said of Afghanistan’s economy in terms of market development. Afghanistan uses what’s closest to Oligarchic capitalism. This means that the bulk of its power and wealth (what they do have) is held by a few individuals and families. This form of capitalism leaves Afghanistan at many disadvantages. They have a high degree of income inequality, corruption, unlicensed business activity and excessive focus on resource extraction (oil). Afghanistan could use oil extraction (responsibly) as an advantage to their economy but that has not happened. None of these characteristics assist Afghanistan in developing their market. It hinders them in terms of in-balance of power and takes away any discretionary income that they do have.

6. In my opinion, Afghanistan has history of existing on terms closest to a coup d’ etat. This violent challenge to government includes capturing the current leader and cabinet, securing communication and declaring martial law because of the national emergency that deposed leaders trust the country into because of their incompetence or illegal activities. New military leaders suspending most civil rights also characterize it. This disadvantage to Afghanistan leaves little room for growth and market development. It does not leave the country a chance to expand or grow and the country cannot develop correctly. I do, however, see opportunity in growth and development now that they have elected a President and parliament. The urbanization and economic development it is undergoing does not, by any means, mean that Afghanistan will have a bright future but I just believe that the future won’t be a replay of the past.

7. In developed markets, a range of intermediaries provide the information and contract enforcement needed to make commercial transactions. Most developing countries lack the infrastructure needed for smooth running of markers. Afghanistan is an example of this. Due to decades of war and a harsh climate, Afghanistan lacks much infrastructure and in turn has hindered development. Their physical infrastructure like their hobbled roads, lack of drinking water, isolated villages etc. make it difficult for their institutional infrastructures like government- run courts and judicial systems to run effectively and efficiently. The lack of infrastructure leads to businesses unable to operate, a barrage on trading of goods to international and domestic markets, lack of basic government services and decreased police and military protection. Afghanistan is in the midst of working on increasing its infrastructure but even having a decade of this has hindered its market development and affected its ability to grow. Not only does the lack of infrastructure hurt Afghanistan, but it also reduces products and services it attempts to provide to the consumer in attempt of growth.

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