Franchise

Full disclosure: I like GOOD, and I enjoy engaging online with Alex. This post is neither an attack nor an attempt to start a blog war.

Read the full article (the bit.ly link), entitled “Should Fighting Hunger Be a Franchise Business?” He’s basically looking at the so-called “franchise” model being piloted by Nutriset (the company that brought us Plumpy’nut) and wondering aloud if this isn’t, perhaps, maybe, the wave of the future of aid.

When we look at something like franchising as a way forward for our industry, I think it’s important to separate in our heads the model under consideration (franchising) from the product (in this case Plumpy’nut).

I’m sure we could go on and on about Plumpy’nut, all of the positives and negatives, spin hypothetical scenarios in which it would be appropriate or not appropriate, share stories of how we’ve all seen it fail or succeed in the field. That’s not the point here, but this excerpt is telling:

As TOMS Shoes‘ buy-one-give-one model rose in prominence, aid worker have protested the idea of giving things away to the poor when there’s a way for those products to be produced locally. Why not do the same with food aid, Nutriset says?

Hunger of the sort which calls for massive food aid programmes is a situation quite distinct from acute malnutrition of the sort which warrants emergency therapeutic feeding with a product like Plumpy’nut.  Plumpy’nut may be food, and it may be aid, but it is not food aid in the common aid world sense of the term. And by a similar token, you simply cannot compare food with shoes. TOMS Shoes giving away shoes to communities that may or may not want them is a universe apart from giving away basic food staples in communities where we know objectively that people will become malnourished (or worse) if they don’t get something and soon.

Not to wail away at Mr. Goldmark or at the execs of Nutriset, but these mistakes of nuance are important. They give way to a generalized lack of understanding of how the aid world works. I expect my neighbor across the street to mistake emergency therapeutic feeding for general food distribution. I would expect more from the CEO of a company trying to position itself as a leader in that particular wonky little corner of the aid world.

Similarly, while the term “franchise” is not one that we commonly encounter in relief and development work, the concept as described in the article is not particularly new: Identify local stakeholders with the capacity and vision to be “positive deviants” or “promoters” or “community facilitators”, build the capacity of “local partners” to carry out programmatic interventions on our behalf, and make the case that in so doing we’re “creating local jobs.” Although they (or at least Alex) use different words to describe Nutriset’s paradigm, this is essentially what they’re doing. So on that front, I think we can all nod a silent,  aid worker’s “yes.” We think franchising generally works as a programmatic model. We’ve been doing it some way, shape or form for many years already.

The bigger and more vexing question, for me at least, is not touched on at all in the article. It’s something I’ve debated many times in different places both online and in person. Namely, “What is the appropriate role, or roles of for-profit sector entities and values in the humanitarian world?”

 

Plumpy’nut may be an amazing product which, when used correctly, saves lives. Franchising (sometimes called other things) is a proven means of delivering interventions of many kinds down to the grassroots. But can and should fighting hunger be a franchise business? As a declarative statement, I think that assertion needs closer examination and debate.

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3 Comments

  1. M.

     /  May 30, 2012

    J,

    can I work with you? please? :-)

    there is something soothing in the way you formulate thoughts and complex ideas.

    when I grow up I want to be like you :-)

    yes, so, well, like always, I agree with you. (boring?)

    I think the last question is very relevant. The private sector is everywhere, so why would it think it cannot go into the aid industry? They probably see it as what it is, yet another industry :-)

    I personally hate the corporate responsibility discourse, which in fact means we can eat all the cake like orcs as long as we give back some dry crumbles back. And giving the crumbles legitimises /acts as smoke curtain for our eating the cake like orcs. It also means civil society is stupid enough to accept our hidden practices and the underlying structural violence as long as we arket well the giving of the crumbles.

    I hate that. its sick.

    BTW We could one day also talk about “social entrepreneurship”, which is maybe the future of aid :-D What do you think? ( thinking of Ashoka)

    Reply
  2. Always a pleasure to see the world through your eyes and posts J. The difference between food and shoes, and RUTFs and general food aid aren’t nuances, they’re separate categories. I agree. But I’m still left wondering aloud where to draw the line in between them for which is OK to make a business and which isn’t. Or if there is a line at all on that question.

    It’s easy to say, “emergency therapeutic foods shouldn’t be sold for profit.” We’ve seen so many nonprofit fundraising pleas with heartbreaking images. So it’s almost natural to picture in your head the starving kid on TV and then the snickering CEO profiting off desperation.

    But many development folks seem to love the idea of corporations coming in to sell soap, or aspirin even, because making it a business to sell to the bottom of the pyramid means more kids get their hands washed, or fever treated … which means fewer deaths. So I wonder — I am not sure where I come down on this — where to draw the ethical line to cry foul for making a business of saving lives: combating starvation with Plumpy’nut, or reducing cases of diarrhea with soap-washed hands. Does it matter that the product is a last resort/treatment between life and death as opposed to one that saves just as many lives but in some more difficult to mentally visualize aggregate community-wide impact, something that lowers mortality rates but can’t claim credit for saving a specific child?

    Reply
  1. blog lately – v3, i6 » lindsey talerico.

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