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Article

5 May 2007

Author:
Valeria Budinich, Olivier Kayser, Policy Innovations [USA]

Citizen sector organizations led by Ashoka Fellows are harnessing the power of business to solve social problems

Rodrigo Alvarez owns three hectares of lemon trees in Guerrero, Mexico, barely enough to keep his family alive...A loan of 75,000 Pesos ($6,800)—the market price for an effective irrigation system—would allow Rodrigo to triple his revenues...he could then send his children to school...To test [a new] concept ["Hybrid Value Chains"] over the past three years, Ashoka has been conducting a pilot project with Amanco [part of Grupo Nueva]...Amanco's link in the chain is design, manufacture, and installation of the irrigation systems. The [NGOs] act as distributors, marketing and selling the systems to small farmers...Ashoka...developed a financing system in conjunction with Asociación Mexicana de Uniones de Crédito del Sector Social...and secured a marketing arrangement with Wal-Mart in the case of Guerrero. [also refers to Danone]