Posts Tagged ‘design’

The Informal Industrial Ecosystem: An Introduction to REculture

The Art of Seeing Beauty in Garbage, Kenya, September 2010

This article introduces and explains some things I’ve been seeing in the informal industrial ecosystem in the developing world context for almost a decade now. First noticed in 2009, I then named it REculture, a neologism to capture the vast and complex ecosystem I saw in the revenue generating facility of recycle, replace, repurpose, reuse and resale. Given contemporary interest in developed country concepts such as the circular economy, and other sustainable and ecological initiatives, I thought it timely to sit down and attempt to synthesize the past work before proceeding to write more on current events.

What is REculture?

I thought I’d start from the beginning – is there, for example, a difference between “the entrepreneur” and “the producer”, “the creator” and “the innovator”, if at all? And if none, then perhaps start to fill in some few blanks based on our earlier thinking on the BoP “consumer” and their mindset, worldview or value system.~ June 2009

In July 2009, I was inspired by my observation of a man sitting under a tree in the administrative district of New Delhi with a visibly large bag of buttons by his side. His service, to the civil servants rushing to and fro from important governmental meetings, was to quickly repair a missing button from their suit jacket or shirt. Not unlike a shoeshine boy, this gentleman’s service was on demand, while you waited, his fingers flying rapidly with the needle as he sewed a reasonable facsimile of your missing button back on for you.

Look at the unusual yet welcome niche he had found for himself! A repair service that could only work in this part of the city where the common uniform was a suit and tie and important visitors the norm.

Once he opened my eyes to what it was I was seeing on the streets – the entrepreneurial opportunities squeezed out of the margins of daily life – I began noticing such services more and more. Repair, re-use, re-purposing, resale, and, in their own inimitable way, recycling of used up or abandoned products of industrialization were turning out to provide a significant chunk of the revenue streams of many of the informal sector’s service providers who now became visible to me.

In June 2009, I wrote:

…many other such observations got me thinking about the whole RE culture among the BoP. Stepping back, if you take the broad space of REuse, REpurpose, REpair and REcycle – its the low hanging fruit for the BoP entrepreneur’s opportunities for income generation. In fact, REpair is an entire professional service area in its own right, perhaps a subset of the opportunity space in the informal economy with varying degrees of skill and ability required.

But coming back to the other three, it seems at first glance that they look to be more or less the same thing i.e. how different is it to reuse a plastic bottle to contain some liquid from recyling it? particularly if the manufacturer had intended for it to be a disposable container? Yet, from the big picture perspective, one can say (and it has been said before) the whole concept of recycling is a cost in the OECD world whereas its actually a source of income, in a myriad ways, among the BoP.

The second thing that struck me, when I pondered these signs of a post-consumption economic ecosystem, was that the actors in the informal sector – whom we now discuss as traders, fabricators, service providers – were still then thought of as the “Bottom of the Pyramid” or the BoP – the economically vulnerable, the marginalized, the low income barely making ends meet on a dollar or two a day. There was no attempt at segmentation, this was the lumpen mass of the next 4 billion. Even though the late CK Prahalad had called them out as micro-producers, creators, and innovators, in his seminal book The Fortune at the Bottom of the Pyramid, those who had grabbed the label with both hands and run with it were still thinking in terms of consumption. “How do we make products profitably for the poor?”

What about the creators, the makers, the innovators, and the producers in the informal economic ecosystem?

Again, back in June 2009, I wrote:

I am attempting to evaluate whether all our previous observations and learnings viz., “Life is hard” (the mindset and values of a customer at the BoP particularly one living on an irregular income) can help us begin to understand the other side of the coin, that is, the “innovator” or “creator/maker” or simply, the “informal business owner or service provider” at the BoP.

At this point at least, it seems to me, that rather than quibble about each individual word choice to describe “who” or “what” they are, perhaps we’re better off looking at the “why” and “how” – by this I mean, that the driver of motivation is to generate an income stream (the why) and the gaps observed, as mentioned above, are the opportunity spaces (the how). That is, the BoP seem to display more of a tendency towards ‘opportunity spotting’ (not quite the same as the word opportunists, though that may also apply in many cases or situations), filling the niche quickly with a service or product. Some of these services have arisen spontaneously around the developing world, mobile phone repair comes to top of mind.

It feels as though its a far more active than passive quality – poverty and hardship can be a powerful motivational driver in itself, though we tend to overlook the ingenuity and creativity involved.

That is, back then, just over 9 years ago, I connected the dots I was seeing in this space – the mindset and values of the low income customers and their post consumption behaviours, taken together with the “RE” space where visibly they were earning income – and framed it so:

That is, the lower income market tends towards maintenance and extending the lifespan of the products (through repair or repurposing it) they purchase rather than disposing it for convenience or replacing it for a trendier style. All very obvious, you say, but its this very same quality that leads to the wide variety of opportunities for the entreprenuerial or the innovative to make some money (or even a living). From the very basic, in terms of skills and ability such as the button repair guy to the complex, such as the mobile phone hacker, all of these services meet an ‘unmet need’ in the market, an opportunity gap which they can fill.

However, what’s interesting about this is the fact that these opportunities would very rarely be either a) spotted as one in mainstream consumer culture; b) not be a gap per se due to a difference in mindset/worldview OR even c) not be profitable enough, given the comparative cost of labour vs the price of the product involved. These conditions for making money, and more so, making money that is deemed a valid ROI seem only to be available among the lower income demographic and in the developing world.

For the precondition to their success is also a sufficient customer base seeking such a service and their willingness to pay for it,  and that, imho, emerges from their mindset as BoP consumers, one quality of which is their need to Maximise the return on their investment (purchase). This shows up in this context as a wish to REpair, REuse, REsell (for REpurpose or REcycling or whatever along those lines) – I doubt if they’ve stopped coming by from door to door among the ‘consuming classes’ in India to buy old bottles, newspapers and other sundry junk. (A sign of development if it stops?)

Once I could “see” the entire post consumption entrepreneurial activity in the informal sector, I went back to my research documentation conducted in rural Philippines and India for the original ‘prepaid’ economy work, and pulled out the patterns seen in the photographs that, when fitted together, showed all the evidence of an entire industrial ecosystem. As a working title for this seemingly vast economic space within the informal economy across Asia and Africa, I had called it REculture – the group blog went on spawn a magazine.

An entire industrial ecosystem within the informal economy based on the discards of the consumer lifestyle

A discarded Kraft cream cheese bottle would be picked out of the garbage by a waste picker and sold to an intermediary who would clean and sort these by colour and size and sell them on to a fabricator, who in turn, would convert these into affordable – and handmade mass produced – kerosene lamps, completed with spot welded wick tube.

An entire industrial life cycle from “raw material” through to “mass production” supported by distribution and retail. The only difference? The informal nature of the entire value chain and the post consumption adaptation of the materials and discards.

My concluding thoughts at the stage in which I’d left my explorations almost a decade ago can be summed up thus:

So, at this point, early stages of exploration though it is, one could say that the whole area of “post consumption” consumer practices – most of which have withered away like the appendix in the ‘rich’ world – forms one major  basis for both products and services, with value addition to varying degrees, in the ‘informal economies’ of the developing world.

There are insights to be teased out here on flexible, adaptable, ‘on demand’ business models ~ but applied outside the virtual world. Scarcity of resources and circumstance force lean overheads and inventory. Constraints of demand and customer purchasing power create their own flows in the chaos. Is there a pattern to the flow of the informal after all?

What next?

I summed up this history so as to provide me with the foundation and backdrop to pick up the threads of this conversation, now with the added insights of the past decade, and the increasingly sophisticated frameworks of framing the informal economy as a commercial environment in its own right, populated with entrepreneurs and niches that the mainstream overlooks.

As the topics of sustainability, resource conservation, and the circular economy become top of mind and critical, the early lessons from the developing world will only become more important going forward. I’ll be writing more under the category and tag “REculture” for old times’ sake.

Open-Source on Hyperspeed: Next generation innovation lessons from Shenzhen

In Shenzhen, 山寨 (shanzhai) has a different meaning than mountain stronghold—yet the term so eloquently expresses a continuity, a history, and a genesis. Shanzhai is a Cantonese term, originally used as a derogatory word for knock-offs — because people from rural mountain villages couldn’t afford real Louis Vuitton or officially produced DVDs of Friends. As a result, there was the cheaper, 山寨 version that was a mere imitation, coming from low-end, poorly run 山寨 factories.

David, along with the scholar Silvia Lindtner, has been researching the innovation ecosystem in Shenzhen for the past few years, and they have proposed the term “new shanzhai.” Part of the original shanzhai economy began with copying DVDs. Since copied DVDs couldn’t be played by name-brand players (an attempt to control piracy or simply due to DVD quality issues), a whole set of products were created to support the copied DVDs — and from there, a wildly creative ecosystem appeared.

This is the new shanzhai. It’s open-source on hyperspeed — where creators build on each other’s work, co-opt, repurpose, and remix in a decentralized way, creating original products like a cell phone with a compass that points to Mecca (selling well in Islamic countries) and simple cell phones that have modular, replaceable parts which need little equipment to open or repair.

Shanzhai’s past has connotations of knock-off iPhones and fake Louis Vuitton bags. New shanzhai offers a glimpse into the future: its strength is in extreme open-source, which stands in stark contrast to the increasingly proprietary nature of American technology. As startups in the Bay Area scramble to make buckets of money, being in this other Greater Bay Area makes it clear why there’s so much rhetoric about China overtaking the US. It is.

So writes Xiaowei R. Wang in her Letter from Shenzhen. Its a timely reminder of the way innovation and invention can play out when there are no secrets left to keep. Pragmatism implies that such extreme openness is not the only path open for intellectual property, but its success in the hyper competitive Chinese market does provide us with clear evidence that such a path is viable and feasible.

IKEA in India: Culture Centered Design Strategy

Its taken more than 10 years for single brand retail stores to enter the Indian market, and this year sees India’s first IKEA opening in Hyderabad. TS Ninan introduced their retail challenge succinctly, though he left me wanting more. And this snippet from an interview with the market opening CEO of IKEA in India (who, having laid the groundwork for 6 years, has now left – an interesting and thoughtful strategy right there imo) caught my attention.

In Europe, businesses look at the past, their systems and processes to plan ahead. India does not have a legacy. People don’t look backwards. Here you create the future as you go

Was IKEA’s product, design, and brand strategy going to be as human centered as reports of their 1000 home visits made it seem, or, as the groundbreaker Juvencio Maeztu implies, committing to India means a “culture centered strategy” – that too, one that is customized for each different culture, centered around a metropolitan area. For those who think India is a country, I like to remind them that its closer in concept to the EU, its a single market and currency, but each city has its own languages, culture, cuisine, and clothing, not to mention each state.

Ikea’s global designers meet artisans in co-creation workshops to handhold local artisans design products that meet global quality and design standards.via

I see familiar names in the design article. And I do like the photographs though I recognize my eye is taken aback because the years in Finland have influenced my aesthetic sensibilities closer to the Nordic norm. What I can say is that if this what the Swedes came up with after distilling down their hundreds of home visits, its an excellent integration of two extremes of design language. IKEA will have fun in India, and I suspect they intend to. The takeaway for culture centered design isn’t that “India” will receive one singular design aesthetic or product line but that each one of India’s cultures, both traditional and modern, will be catered to. That is powerful.

Moving from Unbranded to Branded

There’s a larger story here as well. The changes occurring in the Indian consumer market, for instance, and the increase in aspiration, purchasing power, and most importantly, design sensibilities. Back in 1990, during my first job after leaving the National Institute of Design, Ahmedabad, I faced barriers to marketing industrial design services that I suspect don’t even exist now. Product design was imitable and not something one paid good money for oneself. There were corporates who understood our value as a design studio but they were few and far between. Now, IKEA’s entry isn’t into a completely untapped market – there’s competition that’s been born in the last decade, both online and off. And, finally, there’s the handmade artisanal informal sector, who have long copied IKEA products from hand me down catalogs. On the other hand, unlike most consumer brands entering the Indian (or the African market) IKEA recognizes the competition offered by the informal (unorganized, as its known in India) economy, and seems to have addressed it.

What’s interesting about the Wharton analysis from October 2017, is that all the issues it raises seem to have been covered now that IKEA is finally revealing its India strategy as the first store prepares to open this month.

Unlike my concerns back in 2006/7, this time I’m a lot more confident that IKEA will achieve something wholly unexpected in India. I look forward to visiting.

Ecodesign, Ecolabels and the Environment: How Europe is redesigning our footprint on earth

What do chopped fresh green beans have in common with high definition flat screen TV’s? And how does this relate to design? In Europe, they’re both considered consumer products whose journey from raw material to shopwindow requires energy to process—emitting greenhouse gases that can have an adverse impact on the environment—and are considered to possess a ‘carbon footprint.’ In other words, they are products of a larger global industrial ecosystem.

When the postal service is setting down guidelines on the creativity and production of direct mailers so that their customers can better recycle them, it signals that graphic design needs to evolve the way its practiced entirely.

 

Acronyms and Initiatives
The European Union’s chosen approach to address the issue of environmental degradation and climate change is a combination of regulations, directives and voluntary activities. Industrial designers and engineers around the world are familiar with many of many of these already in effect—the EU Directive on the Restriction of Hazardous Substances (RoHS) and the EU Directive on the Waste from Electrical & Electronic Equipment (WEEE) are top of mind in the field of consumer electronics and other energy consuming products (EUPs)—the first sector to be addressed by these rules.

Just ratified is the new European law on chemicals, REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals), which covers the toxicity and hazards of chemical substances, touching the nascent field of green chemistry. Also to be enforced is the EU Directive on the Ecodesign of EUPs – this will directly regulate the negative contribution to the environment across the entire lifecycle of the product, not just the use phase.

Supporting activities include the Ecolabel—a voluntary certification for a wider range of products beyond those that merely consume energy during their use—helping consumers identify products that have considered all aspects of environmental impact toward minimum ecological footprint, compared to other products in the same category. This includes the chopped green beans, as their total carbon footprint assessed across the supply chain would take into account the energy expended to grow them, process them, package them and deliver them to the neighbourhood supermarket.

All of these and more come under the holistic approach of the Integrated Product Policy (IPP), which can be considered the foundation for such decision-making and the design of the various directives, programs and certifications. The IPP is a systemic look at the environmental impact of the entire supply chain and life cycle of any given product, taking all aspects of the global industrial ecosystem into account: raw materials, manufacture, transportation, distribution, marketing, sales, delivery and waste treatment at the end of life.

 

The Power of Design
While design has been picking up speed in addressing issues of sustainable development, a quick purview of the larger ecosystem helps in understanding the long-term consequences of the decisions made in the studio. It is recognized that a significant proportion (ranging from 70% to 90%) of any given product’s ecological footprint can be addressed at the design stage. But the considerations mentioned above take into account factors all along the product chain that can directly or indirectly contribute to environmental degradation; decisions made at the design stage now become crucial in ensuring the best outcome throughout the entire system.

Carbon Trust UK‘s simplified diagram of the lifecycle of a typical can of cola, for example, enables us to visualize and correlate the relationship between product design choices and energy consumption at every stage of the supply chain.

Read On…

Shopping for Innovation: What you need to know before hiring a design firm

This guide was written for Core77 in late 2006, co-authored with Steve Portigal. I was looking for it today, as I wanted to share the distinction between a Vendor of innovation and design services and a Partner who goes beyond the requested task to discern and perceive the real challenge to be solved. I couldn’t find it online, Core77 having redesigned their site from the ground up, so I’ve reposted it here from the Wayback Machine.

Getting Started
You’ve read all the articles and can’t possibly stomach one more column on the iPod. It’s clear that design+innovation is the hot topic for business—with businesspeople taking more active notice of the design scene, and designers focusing more on strategy. (It’s not like business and design were so far apart to begin with, of course.) But what about those new to the conversation? If everyone is telling you that design is the differentiator, how do you get started? What are the considerations when bringing on strategic design services?

There are many things you need to consider before hiring a design firm, but we’re going to start with three: The Problem (defining your needs), the People (who the players are), and the Partnership (the nature of the engagement). Design firms are businesses, but with unique perspectives and unique work processes. Understanding a bit of the industry culture will go a long way in helping you to establish a successful engagement.

The Problem: Defining your goals
As with any initiative, you first need to define your problem and your goals. Having these goals well-articulated and written down on paper as a starting point for the discussion is crucial. You may find that your reasons for bringing in design services differ from others in your organization, so you need to get your story straight before you begin talking to creatives. You should also understand that that story is likely to be pushed and pulled.

Design can be brought in as a service, but it’s important to remember that it’s a creative service. Designers are smart and talented people who typically do “think out of the box” (a phrase more derided inside the design community than outside, yet still requested in more initial meetings than you can imagine). So although your desired outcome may be very specific, the designer’s process to delivering your outcome will inevitably involve challenging its very foundations. Here’s an illustration:

Q: How many designers does it take to change a light bulb?
A: Does it have to be a light bulb?

In real terms, this can be the difference between asking a designer to create a new vase, versus asking for a new way to display flowers in the home. The first problem statement already converges on a solution—perhaps prematurely. The second opens up new design opportunities, new target markets, and ultimately potential new revenue streams.

So though you’ll want to define your problem as clearly as possible to begin with, you should also be willing to engage in discussions with designers in order to craft a more open-ended, innovative, and ultimately actionable problem statement. This is the way designers think, but being prepared for this potential frame shift can be a tremendous challenge. You are likely to learn things that you didn’t want to know, that you aren’t even prepared to know, and that challenge your closely-held beliefs. (On the flip side, you should be aware that designers have a healthy skepticism about just how much “paradigm-busting innovation” a given company is prepared to make. The design consulting bar-tale of the client who proclaims, “I want something completely innovative, but I want to keep making my stuff exactly the same way I do now” is legendary, but it’s also true.)

Nevertheless, it is often difficult for clients to think like the designers they hire, and to not see them as threats. This is something you need to consider when you’re bringing in a design consultant: you’re hiring someone to tell you something you don’t know; to provide you with something that you don’t have. But will you be ready to take their advice?

Read On…

Mobile First Africa: Opportunity for Accessories that Boost Productivity on Smartphones

Long ago, when smart phones were still on their way to changing the world, I remember the product development of a host of accessories that would boost business productivity in a variety of areas for phone owners.

The projector phone was one such innovation, flopping back when it was launched due to the tech not having caught up yet. I bring this up because I read an article this morning that highlights a major challenge for the ‘mobile first’ African market.

“We hear about mobile-first Africa, it sounds sexy,” said Nanjira Sambuli, digital equality advocacy manager at the World Wide Web Foundation. “But how much meaningful work can you get done through your mobile. Are we creating a divide? We are not going to be equal if mobile is the only way. Because mobile is for consuming.”

Today, technology is far more advanced, and as China has shown us, far more affordable. Can a range of productivity solutions be launched as accessories for smartphones to disrupt the African SME market?

The Japanese are already ahead with their answers, such as this keyboard by Elecom. The products are all out there, I think its just a matter of identifying the opportunity and the price point for the African markets.

The continent tends not to be taken as seriously for enterprise solutions as it could be. Informal sectors do not mean lack of purchasing power or opportunity space. Perhaps this is the sector that is now ripe for disruption by an enterprising entrepreneur.

Book Review: Operation Elop, the final years of Nokia by Merina Salminen and Pekka Nykänen

Design auditing the new Life Tools for Nokia, Sept 2009, India

Operation Elop, uploaded by Harri Kiljander has just been made available in English and I’m already on Chapter 8. I saw the editor’s tweet 23 minutes after he said “It’s done and available on Medium under a Creative Commons license” and I haven’t stopped diving in and out since.

It starts with a memorable day in Finland – 10th September 2010 – so memorable that one asks “Where were you that day?” and people remember. I remember it well, and I have photographs to prove it. My life changed rather dramatically in the year that followed, and the period that the book covers is the same period I was away from Finland, having already decided to make my home here for the remaining years of my life.

Its complicated, this history of Nokia’s demise. The impact on Finland was palpable, the responses ranging across the spectrum of human emotions. You have to know that I was in love with Nokia and the changes they had wrought across the developing world. In 2007, there’s a photograph of me sitting in their lobby stunned from the impact of coming face to face with a corporation that conveyed the values of their brand. And its because of Nokia’s design and innovation researchers blogging their exploratory user research across Africa that inspired me to do what I have been doing for the past 10 years. Every chapter in this book has been adding new layers to my own personal journey.

I’ll highlight the one paragraph that’s important to me. When all the news was breaking over the years, I thought that Nokia was splitting their product development energies too broadly. In fact, in May 2011, I was invited to a feature phone workshop to present on the future and on Africa. What I said we wanted to put on t-shirts, “Don’t get stuck in the missionary position.” They were taking a Mother Teresa route in Africa instead of focusing on what they were good at – robust engineering and products that stood up to harsh climes and rough usage. At a value for money price point. I didn’t know it was already too late, but here’s the key snippet from the book that helped me make sense of things from long ago as I read it today.

From Chapter 19:

In 2010, the foundation of Nokia’s business consisted of devices priced at a few tens of euros ($30–50), with which one could make calls, send text messages, and use simple web services. Thanks to efficient production, feature phones yielded larger profit margins to Nokia than smartphones. The amazing efficiency was based on the S40 operating system, which had been introduced in 1999. Nokia conquered the world with S40. It was made possible because the system could be tailored at a low cost to mobile network providers operating in different regions. By 2012, Nokia sold 1.5 billion S40 devices across the world.

This was squandered in the race to the top, the glamour of being world famous, complicated by so many factors – all simply and accessibly laid out in the book – that it still makes one weep to think of what might have been. All I know is that the Nokia I own today doesn’t even have predictive text.

I want to thank the translators for their hard work and effort. The book has been a joy to read and it’s kept its Finnishness in choice of words, and sentence structure. You can read it online or download it for free.

A Very Nigerian Opinion on E-Commerce and Online Fashion Startups

Folake Shoga shares her opinion on the recent spate of tech startups and apps mean to serve Nigeria’s fashion and fabric industry.

Two recent articles in Techpoint, the Nigerian online technology magazine, feature initiatives dealing with aspects of the clothing business. One is a startup letting studio space and equipment to makers, 360 Creative Hub; and one is an internet based fabric selling business, Fabricsphere. Reading up on the feasibility of these two initiatives has been an interesting experience, very much encouraged by the richness of Techpoint’s coverage of Nigeria’s tech and business ecosystem.

Having said that, as just a humble, occasional and above all provincial Nigerian, I’ll start by paraphrasing L P Hartley: “Lagos is another country; they do things differently there.” Sometimes, reading official accounts, reports etc of events in Nigeria really jarrs with one’s lived experience of the country (even though being as the standard of written professional journalism is generally excellent, this hardly every happens when reading the actual quality newspapers, Punch and The Guardian and their ilk.) In the aforementioned Techpoint articles some of the prices quoted for goods and services seem steep to me, which surely militates against takeup, but I am, as I said, provincial, and moreover brought up by Ijebu people. No doubt everything costs more in Lagos.

Startup culture is a thing in itself; current, progressive, innovative, aiming to breach new ground or disrupt! received conventions – although strictly speaking away from the comfortable global North there may already be more disruption going on than we are entirely comfortable with. But the term itself, startup, comes surrounded by an effervescence of aspiration, floating on an expectation of the power of a tech-determined state change in human affairs. “First we’ll click here, then we’ll be in tomorrow today already! Yay!!”

As recently as 12 years ago it was impossible to prejudge which casual, frivolous digital activity would end up as an engine of massive social change. Nobody could possibly have foretold, for instance, how a site for rating the comparative attractiveness of your female fellow students could have morphed into a giant data-gatherer, news disseminator and influencer of global public opinion. Or how a site for online shopping could evolve to be at the forefront of research into the logistics of drone technology and other automated delivery systems. So there is a hope and a hype around web-based startup culture, an eye for the next big thing, the next new system that will prove that from small beginnings come big changes. Nigeria, as a vast untapped market, has the potential to be a hive of new technology activity, and Techpoint in it’s many articles provides an interesting and thorough overview of the local scene, though concentrating almost entirely on Lagos.

Read On…

Work in Progress: An Introduction to the Informal Economy’s Commercial Environment


This topic is being shared in the form of a collection of essays on the following themes, each becoming hyperlinked on completion. Do bookmark this page for regular updates.


Introduction to Background and Context, some caveats apply
Fundamental Elements of Informal Sector Commercial Activity
Rural household financial management as a foundation
Linkages and Networks span Urban and Rural Markets
Underlying Principles for Financial and Social Contracts in the Informal Economy
Informal Sector Business Development Strategies and Objectives
Why A Blanket Approach to Formalization is not a Panacea
Disaggregating and Segmenting the Informal Sectors
The Journey to Formalization Cannot be Leapfrogged

 


Appendix:
Creating Economic Value by Design (John Heskett, IJD 2009)
Financial Behaviour Patterns Observed Among Households in Rural Informal Economy (IDRC, 2009)
More or Less: The Fundamental Principle of Flexibility” Slides (Informal Economy Symposium, 2012)
A Comprehensive Analysis of the Literature on Informal Cross Border Trade in East Africa (TMEA, 2016)

On the relationship between economics and design

This is an extract from the Introduction to John Heskett’s seminal paper, “Creating Economic Value by Design


The work of Herbert Simon, Nobel Laureate in Economics in 1978, is a rare exception of design being considered as a factor in economic theory. His starting point was acknowledging that the world we inhabit is increasingly artificial, created by human beings. For Simon (1981), design was not restricted to making material artefacts, but was a fundamental professional competence extending to policy-making and practices of many kinds and on many levels:

Everyone designs who devises courses of action aimed at changing existing situations into preferred ones. The intellectual activity that produces material artifacts is no different fundamentally from the one that prescribes remedies for a sick patient or the one that devises a new sales plan for a company or a social welfare policy for a state. Design, so construed, is the core of all professional training; it is the principal mark that distinguishes the professions from the sciences. (p.129)

Implicit in Simon’s reasoning is an emphasis on design as a thought-process underpinning all kinds of professional activities; yet the varied skills through which design is manifested are not discussed. He did indicate, however, why design is so rarely considered in economic theory. Economics, he stated, works on three levels, those of the individual; the market; and the entire economy (p. 31). The centre of interest in traditional economics, however, is markets and not individuals or businesses (p. 37). A serious problem is thereby raised at the outset: two important considerations relating to design—how goods and services are developed for the market place and how they are used—receive scant attention.


I was lucky enough to both work with him as a colleague as well as attend his classes in Design Policy and Design Planning & Market Forces as his student. I’ve been diving into my notes and his lectures of late as I wrestle with my theorizing on what I’ve been calling Biashara Economics, whose earliest avatar was the prepaid economy project of 2008/9.