I disagree with the ‘one for one’ business model. Although the intentions are pure, it severely hinders progress in developing nations in the long run. Business should not focus on handing out goods and services in underdeveloped areas. When Western businesses do so, it undermines local businesses that are attempting to create and sustain value. This is not to say that successful companies in North America and Europe should not do anything to help developing areas; they should just rethink the way they help.
A far more beneficial technique would be to help early stage companies develop themselves. In this way, long term sources of revenue will be created through employment and the sale of goods. This is far more sustainable than giving goods such as shoes and glasses away because it ensures these products will be created and purchased in the developing areas. The critical part will be aiding in the establishment of the businesses in these communities. Although this process will be difficult, it is absolutely an essential component to help developing areas progress.
Aid can be provided more effectively through low interest, or even no interest financing, depending on how charitable the Western company chooses to be. In this way, businesses in developing areas will receive the chance to create value in their own community by providing employment opportunities and essential goods. Another beneficial aspect would be to assist in teaching and training locals in these developing regions. This way, many people would have access education to help create their business.
(Figure 1) Training leads to development
It is also important to realize that some donations will still be necessary. Health products that are otherwise unavailable in these developing areas will still be required donations for now. It will be substantially easier for a nation to develop with a healthy population that is able to work.
Media Source
Figure 1: http://www.slideshare.net/Monishaangel/training-development-32823092