IXL Social Enterprise Case Studies Food Security January 2013 | Page 12

Food Security in Urban Slums by 2018

Food security in slums is not a priority
for governments, the private sector and
NGOs
“With most NGOs and
governments
focused
on hunger and food
insecurity in rural areas,
there are few solutions
being developed in the
urban and peri-urban areas. However,
the involvement of social enterprises
can transform the dire situation in these
regions.” President Clinton

Governments see slums as illegal habitats
Governments provide infrastructure and rule of law.47 Unfortunately, slums are in flux and often
not recognized as legal places of habitat with legal protection and security.48 As a result, nominal
efforts are made by governments in slums to provide roads, schools, electricity, water and
security. Moreover, many governments see urbanization as a problem and put more effort in rural
development to slow urbanization. Most government policies ignore slums or threaten eviction.49

“If we provide more assistance to the
urban areas, vulnerable people from rural
areas might be more attracted to migrate
to urban areas.” Mario Touchette, UN
World Food Programme’s (WFP) Djibouti
Representative and Country Director

NGOs have not made enough progress upgrading slums
Non-governmental organizations (NGOs) have become major contributors to social development in
the recent decades. Some NGOs focus on rural areas and providing relief aid. Others work in urban
areas and focus on development. However, NGOs have challenges in funding, program continuity
and customer perception.50 As a result, their impact has been nominal and at times even negative.51

The private sector finds slums unattractive for business
Most private organizations’ offerings, like those from Unilever in India and Monde Nissin in the
Philippines, are priced to target the middle and lower middle class, which is far above the affordable
range of a poor slum dweller. However, in general, most private sector organizations see the foodinsecure customers as an unattractive market segment to target. These private companies target
the food-insecure instead through Corporate Social Responsibility (CSR) departments or through
company-sponsored foundations. Much of this social support for alleviating hunger targets rural
areas, where most (over 600 million) of the food-insecure reside. As a result, the food-insecure in
slums do not get significant support from corporations.

The UN World Food Programme (WFP), the Red Cross, and other NGOs are attempting to solve
both food emergency and food insecurity. They focus significant effort and resources on helping
with food emergencies in war, drought or other natural disaster regions. The focus on food security
primarily targets the 600 million people in rural areas. As a result, only a limited amount of resources
are available to help the hungry in the slums.

“Social enterprises work! We are building
a value chain for solar lighting that creates
income for food-insecure people while
providing lighting for over a million people
in slums and villages.” Steve Andrews, CEO
of Solar Aid

Version 1.0, January 2013

Social enterprises may be the best option
to address this issue
Social enterprises are hybrids – part NGO and part business. Their purpose is to deliver both
social impact and business profit. Social enterprises deliver social impact by improving the health
and well-being of poor people. Social enterprises also aim to make a profit, which reduces their
dependence on donations and cash injections. Slums would benefit with the emergence of more
social enterprises – particularly those focused on ensuring food security.

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