More than just Frugal – BRAC and ‘Jugaad’ Innovation

April 12, 2012
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An interesting fact; more than half the world’s population – over three billion people – live on less than $2.50 a day. What this means is that three billion people are currently left out of the formal economy! Despite public and private efforts, many fundamental needs are unmet.

An interesting fact; more than half the world’s population – over three billion people – live on less than $2.50 a day. What this means is that three billion people are currently left out of the formal economy! Despite public and private efforts, many fundamental needs are unmet. The World Bank released a detailed report titled The Next Four Billion that estimates “frugal innovation” to be a five trillion dollar market. Many of the last mile problems facing those trying to deliver products to the bottom of the pyramid are the same as BRAC faces in its poverty alleviation programs. With an increasing academic interest in this area, BRAC can both contribute to this body of knowledge and benefit from the findings of others.


Last week, BRAC hosted Dr. Prabhu, Jawaharlal Nehru Professor of Indian Business and Enterprise and Director of the Center for India & Global Business at Judge Business School, University of Cambridge. He recently co-authored a book titled ‘Jugaad Innovation’ that delves into the frugal and flexible mindset of social entrepreneurs in emerging economies. Jugaad is a colloquial Hindi word that translates as “an innovative fix”. It is a unique way of thinking and acting in response to challenges. Through thoughtful and economically viable innovations, frugal innovators practice jugaad to creatively address critical socioeconomic issues in their communities. The solutions are usually radically affordable because the purchasing power of consumers in these markets is radically low. These innovators operate in very complex environments that require solutions that are very significant, innovative and holistic.


Dr. Prabhu spent a day in Mymensingh seeing BRAC’s health and microfinance programs in action, finding to his excitement a great deal of innovation. “[BRAC is] perhaps the most impressive organization I’ve ever studied, and masters of jugaad too”, Dr. Prabhu tweeted. He was drawn into the concept of shasthya shebikas (community health volunteer) and their motivations to carry out extensive community-based health activities. When he spoke with a group of women receiving advanced training to become “model shashtya shebikas, he heard several share how much they truly enjoyed their work.

Back in Dhaka, Dr. Prabhu delivered thought-provoking talks at BRAC’s head office and BRAC Business School about jugaad and how managers can use research to foster a culture of innovation. With the support of one of Dr. Prabhu’s research students, BRAC is now exploring how to build more of this evaluation and experimentations into its programs.

Venita Subramanian
BRAC Social Innovation Lab

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Venita
11 years ago

This article was published by a BRAC staff on Professor Jaideep’s session on frugal innovation. http://www.thefinancialexpress-bd.com/more.php?page=detail_news&date=2012-05-19&news_id=130063