Indeed, AGRA’s, i.e., Bill Gates's solution, is the common perception that the Root Couse of poverty among smallholders is the lack of technologies due to lack of money. Hence, the solution to poverty, when led by one of the world’s richest and most technological people, shouldn't surprise anyone; money and technologies are the combined answer to any problem, including poverty. If this was the correct Root Cause of poverty, then $ 60 B and 15 years after the inception of AGRA, we should have seen AGRA’s farmers live in economic prosperity. Guess what? If you didn’t hear of African smallholders getting rich, it is because it didn’t happen under the AGRA program. We see little difference between farmers under the programs to others! So, if farmers' poverty is NOT due to a lack of technology and finance, then what is the cause!? To answer that critical question, let’s use a tool that helped Toyota become and keep a world leader in car manufacturing. THE FIVE WHYS METHOD The Five WHYs (or The 5 WHYs) is an iterative interrogative technique to explore the cause-and-effect relationships underlying a particular problem. The technique was originally developed by Sakichi Toyoda and was used within the Toyota Motor Corporation during the evolution of its manufacturing methodologies. (Wikipedia) If you have ever asked five WHYs about any issue, you know it is challenging and complex. Practicing the 5 WHYs on a critical issue requires an in-depth knowledge of the field and openness to suggest and accept “uncomfortable” answers. The power of the five WHYs lies in its ability to uncover the Root Cause of a problem, though sometimes it requires more than five WHYs. This method provides in-depth answers and insights that allow a transition from a “technical” problem, e.g., lack of technologies, to a deeper explanation, reflecting; a flawed process, a wrong perception of a problem, a needed different way of thinking or practice. Unlike a technical problem, fixing a process holds the mighty force of changing the outcome dramatically in ways we never imagined or could have foreseen. For example, for millennia, people were sure we must have feathers and wings to fly. However, in modern times we discovered flying has to do with “lift force” and “thrust power.” This in-depth understanding resulted in the ability to build airplanes and rockets that could fly higher, faster, farther, and longer distances than any bird could. Understanding the Root Cause is a SUPER POWER to cope with and solve Global Challenges, such as Poverty and Hunger. In the past, I used the Five WHYs to ask, “Why do South Sahara Africa Mango growers struggle to make a living?” In that case, it took 16 (!) WHYs before we discovered and defined the Root Cause. In this column, I apply the method for getting the answer for the UN SDG #1 Poverty and #2 Hunger goals – Why do farmers live in poverty and often in hunger? Are you ready to dive in and get answers you may not like? Do you accept that “more of the same” is not the way to prosperity, and it is time to Think Differently? WHY ARE FARMERS IN DEVELOPING ECONOMIES POOR? You are correct if you claim that each small-hold farmer is different, with a unique life history and hence personal reasons for being poor. However, the solution to an individual's problem is often found in a thorough understanding of the underlying cause affecting the many, i.e., the Root Cause of a problem. The Root Cause sheds light on the macro problem/challenge and, therefore, how to overcome it, which impacts the individual. Using the Five WHYs method, we temporarily generalize small-hold farmers' problems only to provide better solutions for individual farmers at the end of the process. Surprisingly, like in Malaria and flying, understanding macro processes often provides a better answer for individual cases. Discovery of the Root Cause of poverty Small hold farmers (SHF) in developing economies suffer poverty. WHY? Their income per day is below the poverty line. WHY? Their income per hectare is low (and, by definition, small hold farmers have few hectares.) WHY? (a) SHF yield per hectare is low, and produce quality is low. (b) SHF income per kg is low. WHY? (a) SHF have no availability and access to advanced technologies, services, and protocols. (b) SHF sell their produce in local, low-price markets. WHY? (a) SHF can’t pay for those technologies, services, and advanced protocols. (b) SHF can't reach premium markets, and their produce quality doesn't meet premium markets' required standards. WHY? (a) SHF can’t provide payment assurance to input providers, e.g., payment after harvest. (b) Reaching premium markets and their standards are costly and challenging, keeping them out of reach for most farmers and local traders. WHY? (a) Input providers know SHF's low income and hence don’t trust they will pay after harvest; they want the money up-front. (b) To enter premium markets, traders need to show consistency in supply volume and quality, which they can't do when working with SHF in developing economies. WHY? (a) There is no proper business model to back and support the construction of such trust. (b) Reliable value and supply chains to premium markets are missing. Hence, each trader needs to form its own value and supply chain from scratch, making it costly and limited in market reach and overall capacity. CONCLUSION The Root Cause of farmers’ poverty in developing economies is (a) The lack of proper dedicated business models AND (b) The unavailability of reliable value and supply chains to premium markets When we analyze the global challenge of small-hold farmers' poverty, without prejudice, we see that technology, finance, logistics, etc., are indeed part of the problem but are not its Root Cause. Therefore, focusing on those never solved the problem and never will. What are your 5 cents? |