Using Economics to foster Democracy

Dean Kamen of Segway fame has recently developed a couple of devices which might revolutionize the 3rd world. Working with a Bangladeshi business man named Iqbal Quadir, who is claim to fame is ownership of the largest cell phone company in Bangladesh, Kamen has developed prototypes for one machine based on the Stirling engine to produce power from unconventional fuels (primarily animal dung in trials) as well as a simple system for purifying water that could utilize power and excess heat from the generator.

"Eighty percent of all the diseases you could name would be wiped out if you just gave people clean water," says Kamen. "The water purifier makes 1,000 liters of clean water a day, and we don't care what goes into it. And the power generator makes a kilowatt off of anything that burns."

Even more interesting than these technologies is how Mr. Quadir comes into the picture. As mentioned before, he's the most successful purveyers of cellular phones and technology in his home country of Bangladesh due to an innovative distribution method. He and Kamen are trying to use the same economic model to provide power and water to rural areas.

It is fashioned after Grameen Phone's business, where village entrepreneurs (mostly women) are given micro-loans to purchase a cell phone and service. The women, in turn, charge other villagers to make calls.
"We have 200,000 rural entrepreneurs who are selling telephone services in their communities," notes Quadir. "The vision is to replicate that with electricity [Kamen hopes to use the program's success to follow up with his water purification apparatus]."

To me, what is fascinating about their plan is that it manages to do a surprisingly good job bypassing the standard impediments in business that plague most of the world's nations (including many in the West), primarily government corruption and requisite bribery at every step. Only time will tell whether or not this can work, but I look forward to finding out!

Raul