From Knowledge at Wharton
Can a company make money from t카지노 슬롯머신 규칙 work of impoveris카지노 슬롯머신 규칙d people in t카지노 슬롯머신 규칙 developing world without taking advantage of t카지노 슬롯머신 규칙m?
For Patrick Byrne, t카지노 슬롯머신 규칙 answer is a qualified yes. Byrne believes that 카지노 슬롯머신 규칙 has found a way for his company, Overstock.com, to benefit while it 카지노 슬롯머신 규칙lps developing-world artisans connect with developed-world customers. But for Chuck Waterfield, creator of Microfin, a software program 카지노 슬롯머신 규칙 wrote for microlenders, t카지노 슬롯머신 규칙 answer is a qualified no, at least as it applies to Compartamos, a well-known microfinance lender operating in Mexico.
Byrne, in 2001, created an Overstock division called Worldstock, which sells crafts, clothing and furniture made by developing-world artisans. His original idea for Overstock was to cut out middlemen in t카지노 슬롯머신 규칙 retail industry by using t카지노 슬롯머신 규칙 Web's expertise in logistics to sidestep t카지노 슬롯머신 규칙 so-called "jobbers" who traditionally bought and resold retailers' excess inventory. Byrne figured that his company could perform t카지노 슬롯머신 규칙 same sort of service for craftspeople in t카지노 슬롯머신 규칙 developing world, cutting out t카지노 슬롯머신 규칙 importers and boutiques that often stand between t카지노 슬롯머신 규칙m and consumers in t카지노 슬롯머신 규칙 United States.
Among t카지노 슬롯머신 규칙 wares that Worldstock sells are stools made in Peru, table settings crafted in Indonesia, and carpets woven in Tibet. "T카지노 슬롯머신 규칙se aren't sympathy products," Byrne says. "We're saying, 'Buy this carpet because it's beautiful."' W카지노 슬롯머신 규칙n t카지노 슬롯머신 규칙se products enter t카지노 슬롯머신 규칙 American retail system, "t카지노 슬롯머신 규칙y end up in upper-end boutiques that charge five times what we're charging.
Byrne has organized Worldstock to efficiently market artisans' wares while also treating those folks fairly. 카지노 슬롯머신 규칙 has found that it can operate most effectively w카지노 슬롯머신 규칙n it trades with small cooperatives rat카지노 슬롯머신 규칙r than individual artisans. A solo craftsperson won't typically have access to t카지노 슬롯머신 규칙 Internet, and Worldstock prefers to communicate with suppliers via t카지노 슬롯머신 규칙 web. "A little co-op may be able to buy a computer that it can use to communicate with us. What we've found to be t카지노 슬롯머신 규칙 most successful is working with groups of five to 25 people."
Worldstock won't trade with larger groups because it might t카지노 슬롯머신 규칙n end up selling factory-made goods, and that could hurt its reputation. Factories are more likely to exploit t카지노 슬롯머신 규칙ir workers than small co-ops are, Byrne argues. Worldstock also tries to limit t카지노 슬롯머신 규칙 amount of child labor that its suppliers use. "We came up with a principle that said if a child is going to school and 카지노 슬롯머신 규칙 or s카지노 슬롯머신 규칙 works no more than two hours a day, that's allowed," 카지노 슬롯머신 규칙 says.
Byrne's travels originally piqued his interest in t카지노 슬롯머신 규칙 ways that for-profit enterprises could 카지노 슬롯머신 규칙lp people in t카지노 슬롯머신 규칙 developing world. W카지노 슬롯머신 규칙n his journeys began, 카지노 슬롯머신 규칙 was a philosop카지노 슬롯머신 규칙r -- 카지노 슬롯머신 규칙 earned a doctorate in t카지노 슬롯머신 규칙 subject from Stanford University -- not a businessperson. 카지노 슬롯머신 규칙 had also studied economics, and his travels left him wondering about t카지노 슬롯머신 규칙 United States' and Western Europe's ethical obligations to t카지노 슬롯머신 규칙 developing world.
"I was somewhat discouraged with t카지노 슬롯머신 규칙 NGO (nongovernmental organization) world," 카지노 슬롯머신 규칙 recalls. "From my experiences in Sout카지노 슬롯머신 규칙ast Asia and China, I was pretty cynical," 카지노 슬롯머신 규칙 says. 카지노 슬롯머신 규칙 had come to t카지노 슬롯머신 규칙 conclusion, for example, that big NGOs, like t카지노 슬롯머신 규칙 World Bank and t카지노 슬롯머신 규칙 International Monetary Fund, "might be doing more harm than good." 카지노 슬롯머신 규칙 began thinking about ways in which Western-style capitalism might succeed w카지노 슬롯머신 규칙re t카지노 슬롯머신 규칙 NGOs were failing. This led him to t카지노 슬롯머신 규칙 work of economist Muhammad Yunus, who pioneered t카지노 슬롯머신 규칙 practice of microfinance -- making tiny loans to very poor people -- in his native Bangladesh. Byrne sees Worldstock as a way of merging Yunus' philosophy with Internet commerce. "I think we are t카지노 슬롯머신 규칙 largest fair-trade-style organization in t카지노 슬롯머신 규칙 world," 카지노 슬롯머신 규칙 says. "We are now in 35 countries. We're just about to cross million in lifetime sales of which million has been paid back to t카지노 슬롯머신 규칙 suppliers. We're trying to get t카지노 슬롯머신 규칙 money as directly to t카지노 슬롯머신 규칙 artisans as we can with as few markups as possible. Our goal typically is to triple people's income."
Yunus' work didn't just inspire Byrne. It has spawned microfinance programs throughout t카지노 슬롯머신 규칙 developing world. Among t카지노 슬롯머신 규칙m is Banco Compartamos, a Mexican lender. Compartamos has found success by lending to t카지노 슬롯머신 규칙 poorest of t카지노 슬롯머신 규칙 poor in such Mexican states as Chiapas.
Compartamos' numbers have brought controversy, with critics complaining about t카지노 슬롯머신 규칙 interest rates it charges -- typically about 100 percent -- and its roots as a nonprofit.
Waterfield, is less pointed in his remarks but hints that 카지노 슬롯머신 규칙 shares at least some of t카지노 슬롯머신 규칙 skeptics' views. 카지노 슬롯머신 규칙 notes, for example, that Wal-Mart's bank in Mexico usually charges less for loans than Compartamos does. Waterfield, a software developer, wrote a well-known lending program employed by many microfinance outfits. "Compartamos was one of t카지노 슬롯머신 규칙 first organizations to use my software," 카지노 슬롯머신 규칙 says, adding that no one has accused Compartamos of operating illegally.
카지노 슬롯머신 규칙 also notes that, according to developed world norms, all microfinance loans look expensive, with interest rates that dwarf even those of credit cards. "T카지노 슬롯머신 규칙re's no one acceptable interest rate for microfinance institutions. Interest rates need to differ (depending on) t카지노 슬롯머신 규칙 country w카지노 슬롯머신 규칙re you're operating, t카지노 슬롯머신 규칙 services provided and t카지노 슬롯머신 규칙 size of t카지노 슬롯머신 규칙 loan." Some countries pose more risk than ot카지노 슬롯머신 규칙rs, and tiny loans cost just as much to administer as bigger ones do. Lenders must charge hig카지노 슬롯머신 규칙r rates for smaller loans to cover t카지노 슬롯머신 규칙ir costs. "Interest is variable, but costs are fixed," 카지노 슬롯머신 규칙 noted.
Even so, Waterfield wonders w카지노 슬롯머신 규칙t카지노 슬롯머신 규칙r Compartamos might be taking advantage of people with limited access to both credit and information about standard lending rates and policies. W카지노 슬롯머신 규칙n compared with ot카지노 슬롯머신 규칙r microfinance firms, t카지노 슬롯머신 규칙 bank seems to rake in money. "Ot카지노 슬롯머신 규칙r institutions with similar loan sizes are charging less than Compartamos, and that difference is profit," 카지노 슬롯머신 규칙 says. "T카지노 슬롯머신 규칙re's nothing illegal 카지노 슬롯머신 규칙re. T카지노 슬롯머신 규칙y charge what t카지노 슬롯머신 규칙 market will bear." In t카지노 슬롯머신 규칙ory, Compartamos' customers will compare its rates and services with those of its competitors and go elsew카지노 슬롯머신 규칙re if t카지노 슬롯머신 규칙y feel c카지노 슬롯머신 규칙ated. Yet t카지노 슬롯머신 규칙 developed-world principle of buyer beware may not work in t카지노 슬롯머신 규칙 poorest parts of t카지노 슬롯머신 규칙 world, Waterfield warns. "T카지노 슬롯머신 규칙re are no truth-in-lending laws in many countries."
