Sustainability and Mission Drift in Microfinance

Microfinance institutions (MFIs) are constrained by double bottom-lines: meeting social obligations (the first bottom-line) and obtaining financial self-sufficiency (the second bottom-line). The proponents of the first bottom-line, however, are increasingly concerned that there is a trade-off between these two bottom-lines—i.e., getting hold of financial self-sufficiency may lead MFIs to drift away from their original social mission of serving the very poor, commonly known as mission drift in microfinance which is still a controversial issue. This study aims at addressing the concerns for mission drift in microfinance in a performance analysis framework. Chapter 1 deals with theoretical background, motivation and objectives of the topic. Then the study explores the validity of three major and related present-day concerns. Chapter 2 explores the impact of profitability on outreach-quality in MFIs, commonly known as mission drift, using a unique panel database that contains 4-9 years’ observations from 253 MFIs in 69 countries. Chapter 3 introduces factor analysis, a multivariate tool, in the process of analysing mission drift in microfinance and the exercise in this chapter demonstrates how the statistical tool of factor analysis can be utilised to examine this conjecture. In order to explore why some microfinance institutions (MFIs) perform better than others, Chapter 4 looks at factors which have an impact on several performance indicators of MFIs—profitability or sustainability, repayment status and cost indicators—based on quality-data on 353 institutions in 77 countries. The study also demonstrates whether such mission drift can be avoided while having self-sustainability. In Chapter 5 we examine the impact of capital and financing structure on the performance of microfinance institutions where estimations with instruments have been performed using a panel dataset of 782 MFIs in 92 countries for the period 2000-2007. Finally, Chapter 6 concludes the study by summarising the results from the previous chapters and suggesting some directions for future studies.

Social dynamics for sustainable food systems : Actors' orientations towards sustainability in primary production and public consumption

The modern food system and sustainable development form a conceptual combination that suggests sustainability deficits in environmental impacts and nutritional status of western populations. This study explores actors orientations towards sustainability by probing into social dynamics for sustainability within primary production and public consumption. If actors within these two worlds were to express converging orientations for sustainability, the system dynamics of the market would enable more sustainable growth in terms of production dictated by consumption. The study is based on a constructivist research approach with qualitative text analyses. The findings were validated by internal and external food system actors and are suggested to represent current social dynamics within Finnish food system. The key findings included primary producers social skilfulness, which enabled networking with other actors in very different paths of life, learning in order to promote one s trade, and trusting reflectively in partners in order to expand business. These activities extended the supply chain in a spiral fashion by horizontal and vertical forward integration, until large retailers were met for negotiations on a more equal basis. This mode of chain level coordination, typically building around the core of social and partnership relations, was coined as a socially overlaid network, and seen as sustainable coordination mode for endogenous growth. The caterers exhibited more or less committed professional identity for sustainability within their reach. The facilitating approaches for professional identities dealt successfully with local and organic food in addition to domestic food, and also imported food. The co-operation with supply chains created innovative solutions and savings for the business parties to be shared. There were also more complicated identities as juggling, critical and delimited approaches for sustainability, with less productive efforts due to restrictions such as absence of organisational sustainability strategy, weak presence of local and organic suppliers, limited understanding about sustainability and no organisational resources for informed choices for sustainability. The convergence between producers and caterers existed to an extent allowing suggestion that increased clarity about sustainable consumption and production by actors could be constructed using advanced tools. The study looks for introduction of more profound environmental and socio-economic knowledge through participatory research with supply chain actors. Learning in the workplace about food system reality in terms of supply chain co-operation may prove to be a change engine that leads to advanced network operations and a more sustainable food system.

Social dynamics for sustainable food systems. Actors’ orientations towards sustainability in primary production and public consumption

Abstract The modern food system and sustainable development form a conceptual combination that suggests sustainability deficits in the ways we deal with food consumption and production - in terms of economic relations, environmental impacts and nutritional status of western population. This study explores actors’ orientations towards sustainability by taking into account actors’ embedded positions within structures of the food system, actors’ economic relations and views about sustainability as well as their possibilities for progressive activities. The study looks particularly at social dynamics for sustainability within primary production and public consumption. If actors within these two worlds were to express converging orientations for sustainability, the system dynamics of the market would enable more sustainable growth in terms of production dictated by consumption. The study is based on a constructivist research approach with qualitative text analyses. The data consisted of three text corpora, the ‘local food corpus’, the ‘catering corpus’ and the ‘mixed corpus’. The local food actors were interviewed about their economic exchange relations. The caterers’ interviews dealt with their professional identity for sustainability. Finally, the mixed corpus assembled a dialogue as a participatory research approach, which was applied in order to enable researcher and caterer learning about the use of organic milk in public catering. The data were analysed for theoretically conceptualised relations, expressing behavioural patterns in actors’ everyday work as interpreted by the researcher. The findings were corroborated by the internal and external communities of food system actors. The interpretations have some validity, although they only present abstractions of everyday life and its rich, even opaque, fabric of meanings and aims. The key findings included primary producers’ social skilfulness, which enabled networking with other actors in very different paths of life, learning in order to promote one’s trade, and trusting reflectively in partners in order to extend business. These activities expanded the supply chain in a spiral fashion by horizontal and vertical forward integration, until large retailers were met for negotiations on a more equal or ‘other regarding’ basis. This kind of chain level coordination, typically building around the core of social and partnership relations, was coined as a socially overlaid network. It supported market access of local farmers, rooted in their farms, who were able to draw on local capital and labour in promotion of competitive business; the growth was endogenous. These kinds of chains – one conventional and one organic – were different from the strategic chain, which was more profit based and while highly competitive, presented exogenous growth as it depended on imported capital and local employees. However, the strategic chain offered learning opportunities and support for the local economy. The caterers exhibited more or less committed professional identity for sustainability within their reach. The facilitating and balanced approaches for professional identities dealt successfully with local and organic food in addition to domestic food, and also imported food. The co-operation with supply chains created innovative solutions and savings for the business parties to be shared. The rule-abiding approach for sustainability only made choices among organic supply chains without extending into co-operation with actors. There were also more complicated and troubled identities as juggling, critical and delimited approaches for sustainability, with less productive efforts due to restrictions such as absence of organisational sustainability strategy, weak presence of local and organic suppliers, limited understanding about sustainability and no organisational resources to develop changes towards a sustainable food system. Learning in the workplace about food system reality in terms of supply chain co-operation may prove to be a change engine that leads to advanced network operations and a more sustainable food system. The convergence between primary producers and caterers existed to an extent allowing suggestion that increased clarity about sustainable consumption and production by actors could be approached using advanced tools. The study looks for introduction of more profound environmental and socio-economic knowledge through participatory research with supply chain actors in order to promote more sustainable food systems. Summary of original publications and the authors’ contribution I Mikkola, M. & Seppänen, L. 2006. Farmers’ new participation in food chains: making horizontal and vertical progress by networking. In: Langeveld, H. & Röling N. (Eds.). Changing European farming systems for a better future. New visions for rural areas. Wageningen, The Netherlands. Wageningen Academic Publishers: 267–271. II Mikkola, M. 2008. Coordinative structures and development of food supply chains. British Food Journal 110 (2): 189–205. III Mikkola, M. 2009. Shaping professional identity for sustainability. Evidence in Finnish public catering. Appetite 53 (1): 56–65. IV Mikkola, M. 2009. Catering for sustainability: building a dialogue on organic milk. Agronomy Research 7 (Special issue 2): 668–676. Minna Mikkola has been responsible for developing the generic research frame, particular research questions, the planning and collection of the data, their qualitative analysis and writing the articles I, II, III and IV. Dr Laura Seppänen has contributed to the development of the generic research frame and article I by introducing the author to the basic concepts of economic sociology and by supporting the writing of article II with her critical comments. Articles are printed with permission from the publishers.

Learning Challenges in Biogas Production for Sustainability : An activity theoretical study of a network from a swine industry chain

This study is about the challenges of learning in the creation and implementation of new sustainable technologies. The system of biogas production in the Programme of Sustainable Swine Production (3S Programme) conducted by the Sadia food processing company in Santa Catarina State, Brazil, is used as a case example for exploring the challenges, possibilities and obstacles of learning in the use of biogas production as a way to increase the environmental sustainability of swine production. The aim is to contribute to the discussion about the possibilities of developing systems of biogas production for sustainability (BPfS). In the study I develop hypotheses concerning the central challenges and possibilities for developing systems of BPfS in three phases. First, I construct a model of the network of activities involved in the BP for sustainability in the case study. Next, I construct a) an idealised model of the historically evolved concepts of BPfS through an analysis of the development of forms of BP and b) a hypothesis of the current central contradictions within and between the activity systems involved in BP for sustainability in the case study. This hypothesis is further developed through two actual empirical analyses: an analysis of the actors senses in taking part in the system, and an analysis of the disturbance processes in the implementation and operation of the BP system in the 3S Programme. The historical analysis shows that BP for sustainability in the 3S Programme emerged as a feasible solution for the contradiction between environmental protection and concentration, intensification and specialisation in swine production. This contradiction created a threat to the supply of swine to the food processing company. In the food production activity, the contradiction was expressed as a contradiction between the desire of the company to become a sustainable company and the situation in the outsourced farms. For the swine producers the contradiction was expressed between the contradictory rules in which the market exerted pressure which pushed for continual increases in scale, specialisation and concentration to keep the production economically viable, while the environmental rules imposed a limit to this expansion. Although the observed disturbances in the biogas system seemed to be merely technical and localised within the farms, the analysis proposed that these disturbances were formed in and between the activity systems involved in the network of BPfS during the implementation. The disturbances observed could be explained by four contradictions: a) contradictions between the new, more expanded activity of sustainable swine production and the old activity, b) a contradiction between the concept of BP for carbon credits and BP for local use in the BPfS that was implemented, c) contradictions between the new UNFCCC1 methodology for applying for carbon credits and the small size of the farms, and d) between the technologies of biogas use and burning available in the market and the small size of the farms. The main finding of this study relates to the zone of proximal development (ZPD) of the BPfS in Sadia food production chain. The model is first developed as a general model of concepts of BPfS and further developed here to the specific case of the BPfS in the 3S Programme. The model is composed of two developmental dimensions: societal and functional integration. The dimension of societal integration refers to the level of integration with other activities outside the farm. At one extreme, biogas production is self-sufficient and highly independent and the products of BP are consumed within the farm, while at the other extreme BP is highly integrated in markets and networks of collaboration, and BP products are exchanged within the markets. The dimension of functional integration refers to the level of integration between products and production processes so that economies of scope can be achieved by combining several functions using the same utility. At one extreme, BP is specialised in only one product, which allows achieving economies of scale, while at the other extreme there is an integrated production in which several biogas products are produced in order to maximise the outcomes from the BP system. The analysis suggests that BP is moving towards a societal integration, towards the market and towards a functional integration in which several biogas products are combined. The model is a hypothesis to be further tested through interventions by collectively constructing the new proposed concept of BPfS. Another important contribution of this study refers to the concept of the learning challenge. Three central learning challenges for developing a sustainable system of BP in the 3S Programme were identified: 1) the development of cheaper and more practical technologies of burning and measuring the gas, as well as the reduction of costs of the process of certification, 2) the development of new ways of using biogas within farms, and 3) the creation of new local markets and networks for selling BP products. One general learning challenge is to find more varied and synergic ways of using BP products than solely for the production of carbon credits. Both the model of the ZPD of BPfS and the identified learning challenges could be used as learning tools to facilitate the development of biogas production systems. The proposed model of the ZPD could be used to analyse different types of agricultural activities that face a similar contradiction. The findings could be used in interventions to help actors to find their own expansive actions and developmental projects for change. Rather than proposing a standardised best concept of BPfS, the idea of these learning tools is to facilitate the analysis of local situations and to help actors to make their activities more sustainable.

Sustainability through remanufacturing in India: a case study on mobile handsets

Remanufacturing activities in India are still in nascent stages. However, the substantial growth of Indian economy, coupled with serious issues of population and environmental burden demands a radical shift in market strategies and legislations. The scattered and inefficient product recovery methods prevalent in India are unable to cope with increasing environmental and economic burden on the society - remanufacturing seems to be a promising strategy to explore for these. Our study investigated from a user's context the opportunity of establishing remanufacturing as a formal activity, answering the fundamental questions of whether remanufactured products would be accepted by Indian consumers and how these will fit into the Indian market. The study of the Indian mobile phone market eco-system showed how mobile phones currently move through the value chain, and the importance of the grey and used phone markets in this movement. A prescriptive model has been proposed which utilizes the usage patterns of different consumer groups to create a self-sustainable demand-supply system, potentially complementing frameworks such as the Automotive Remanufacturing Decision-Making Framework (RDMF). (C) 2011 Elsevier Ltd. All rights reserved.

Consumerist Predators"? Emerging lifestyles between McDonaldization and sustainability perspectives: the case of highly qualified employees (HQEs) in India

In industrializing countries new groups of consumers with remarkable purchasing power are emerging. Representing a ?new middle class? they are seen as a carrier and promoter of a so-called ?western way of life? beyond the OECD countries. They are presented as having a consumerist predator lifestyle which stands in conflict with the requirements for a sustainable future. Furthermore, they are imputed a profound lack of a sense of responsibility towards society. However, such a ?civil society spirit? is a core prerequisite for coping with the challenge of changing existing lifestyles to insure a more sustainable future....

Towards sustainability: a new, solid-state synthetic route for supported metal nanocatalysts

Noble metal ions like Pt(IV) and Pd(II) were impregnated on gamma-alumina and aerosol 300 silica surfaces. Reduction of these ions using ammonia borane in the solid state resulted in the formation of the respective metal nanoparticles embedded in BNHx polymer which is dispersed on the oxide support. Removal of the BNH polymer was accomplished by washing the samples repeatedly with methanol. In this process the polymer undergoes solvolysis to release H-2 accompanied by the formation of ammonium methoxy borate salt, which has been removed by repeated methanol washings. As a result, metal nanoparticles well dispersed on gamma-alumina and aerosol 300 silica were obtained. These samples have been characterized by a combination of techniques, including electron microscopy, powder X-ray diffraction, NMR spectroscopy and surface area analyser.

Design for sustainability: The role of CAD

The term design in this paper particularly refers to the process (verb) and less-to the outcome or product. Design comprises a complex set of activities today involving both man and machine. Sustainability is a fundamental paradigm and carries significance in any process, natural or manmade, and its outcome. In simple terms, sustainability implies a state of sustainable living, viz, health and continuity, nurtured by diversity and evolution (innovations) in an ever-changing world. Design, in a similar line, has been comprehensively investigated and its current manifestations including design-aids (Computer Aided Design) have been evaluated in terms of sustainability. The paper investigates the rationale of sustainability to design as a whole - its purpose, its adoption in the natural world, its relevance to humankind and the technologies involved. Throughout its history, technology has been used to aid design. But in the current context of advanced algorithms and computational capacity, design no longer remains an exclusively animate faculty. Given this scenario, investigating sustainability in the light of advanced design aids such as CAD becomes pertinent. Considering that technology plays a part in design activities, the paper explores where technology must play a part and to what degree amongst the various activities that comprise design. The study includes an examination of the morphology of design and the development of a systems-thinking integrated forecasting model to evaluate the implications of CAD tools in design and sustainability. The results of the study along with a broad range of recommendations have been presented. (c) 2012 Elsevier Ltd. All rights reserved.

Sustainability of apparent slip in micro-channel flows

In the present work, we experimentally study the flow of water over textured hydrophobic surfaces in a micro-channel. Shear stress measurements are done along with direct visualization of trapped air pockets on the hydrophobic surface. The trapped air pockets on such surfaces are known to be responsible for apparent slip at these surfaces and hence in significant drag reduction. In typical circumstances, the apparent slip reduces over time as seen, for example, from our shear stress measurements. This implies that the drag reduction will not be sustained. We have performed extensive visualizations of the trapped air pockets while varying flow parameters like the flow rate and the pressure. We present here direct visualizations that show that under some conditions, the air pockets can grow with time. The variation of the air pocket size with time is found to change qualitatively and quantitatively as the flow rate is varied. These measured changes in the air pocket size with time have a direct bearing on the sustainability of apparent slip in micro-channel flows.

Indicator-based urban sustainability-A review

Sustainability has emerged as one of the important planning concepts from its beginnings in economics and ecological thinking, and has widely been applied to assessing urban development. Different methods, techniques and instruments for urban sustainability assessment that help determine how cities can become more sustainable have emerged over a period of time. Among these, indicator-based approaches contribute to building of sustainable self-regulated systems that integrate development and environment protection. Hence, these provide a solid foundation for decision-making at all levels and are being increasingly used. The present paper builds on the background of the available literature and suggests the need for benchmarking indicator-based approach in a given urban area and incorporating various local issues, thus enhancing the long-term sustainability of cities which can be developed by introducing sustainability indicators into the urban planning process. (C) 2013 International Energy Initiative. Published by Elsevier Inc. All rights reserved.

SUSTAINABILITY IN TRADITIONAL HANDLOOMS

The handloom sector constitutes a distinct feature of the rich cultural heritage of India and plays a vital role in the economy and cultural identity of the country. It is an ancient industry and is source of livelihood for many villages in India. Its spread varies in style, practice and scale throughout the country - in certain regions it is has a proficient industry, while in others its establishment is localized, where it is a family-based activity. While, hand-woven fabrics are well-sought after both nationally and globally, weavers currently remain marginalized and often impoverished. The well-set power loom industry has further added to their woes. Given the progressive failure of centralized production and distribution ideologies, handlooms represent a decentralized distributed means of livelihood security, environmental consonance, employment generation, skill enhancement, cultural (diversity, identity and) integrity and sustainability. The fabrics and dyes used in the handloom industry are environment-friendly and often unique to a region (based on available skill and resources). The paper comprehensively evaluates and forecasts sustainability in the context of traditional handlooms in India. Results of the study and recommendations are presented in this paper.

Benchmarking sustainability of Indian electricity system: An indicator approach

India needs to significantly increase its electricity consumption levels, in a sustainable manner, if it has to ensure rapid economic development, a goal that remains the most potent tool for delivering adaptation capacity to its poor who will suffer the worst consequences of climate change. Resource/supply constraints faced by conventional energy sources, techno-economic constraints faced by renewable energy sources, and the bounds imposed by climate change on fossil fuel use are likely to undermine India's quest for having a robust electricity system that can effectively contribute to achieving accelerated, sustainable and inclusive economic growth. One possible way out could be transitioning into a sustainable electricity system, which is a trade-off solution having taken into account the economic, social and environmental concerns. As a first step toward understanding this transition, we contribute an indicator based hierarchical multidimensional framework as an analytical tool for sustainability assessment of electricity systems, and validate it for India's national electricity system. We evaluate Indian electricity system using this framework by comparing it with a hypothetical benchmark sustainable electrical system, which was created using best indicator values realized across national electricity systems in the world. This framework, we believe, can be used to examine the social, economic and environmental implications of the current Indian electricity system as well as setting targets for future development. The analysis with the indicator framework provides a deeper understanding of the system, identify and quantify the prevailing sustainability gaps and generate specific targets for interventions. We use this framework to compute national electricity system sustainability index (NESSI) for India. (C) 2014 Elsevier Ltd. All rights reserved.

Design for sustainability: case of designing an urban household organic waste management system

Beyond product design, if the notion of product `lifecycle design' enforces the consideration of requirements from all the lifecycle phases of products, design for sustainability enforces the consideration of lifecycle design in the context of the lifecycles of other products, processes, institutions and their design. Consequently, sustainability requirements that need to be met by design are very diverse. In this article, we portray the nature of design process to address sustainability requirements. This is done taking an example of designing a urban household organic waste management system that requires less water and reclaims the nutrients.