1. © 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B
© 2013 Institute for the Future. All rights reserved. SR-1563B
March 2013
Foresight Engine Game Analysis:
25 Zones of
Future Innovation
© 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B
A project by Institute for the Future and The Rockefeller Foundation
www.iftf.org/our-work/global-landscape/catalysts-for-change/catalysts-zones-of-innovation
Contact: Tessa Finlev, tfinlev@iftf.org

2. © 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B
15 | Poverty Hedging
2

3. © 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B
Beyond the world of microfinance and
other methods of building inclusive finance
lies poverty hedging.
Much as insurance, social security, and other
systems were built to protect people against
falling into poverty, there will be a move toward
building programs to prevent children born into
financial poverty from staying there. Poverty
hedging will range from government-
sponsored programs to international
development projects and more traditional
financial inclusion work aimed at providing an
opportunity for self-supported poverty
hedging.
3
15 | Poverty Hedging | Future Innovation
© 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B

4. © 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B
The monetary side of poverty was a major point of debate throughout the
Catalysts for Change game.
Players wanted to know how we get more capital into the hands of the poor. Ideas
ranged from the theoretical, like rethinking our financial system away from
constant growth toward a currency tied to energy creation, to the more pragmatic,
like turning microcredit borrowers into eventual lenders and tying traditional
savings methods to modern banking systems. One player took these innovations
to a new level, suggesting we create a financial market to hedge against poverty
where the profit is donated to poverty alleviation efforts.
4
15 | Poverty Hedging | From the Players
© 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B

5. © 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B 5
Create annuities/instruments
to hedge for your own poverty.
E.g. pay $2/mo. In 10 yrs., if
poor get food/support payout;
if rich, donate benefits.*
USA**
15 | Poverty Hedging | Micro-forecasts from the Game
*Cards have been lightly edited for readability.
**Player location was self selected.

6. © 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B 6
Microcredit firm that plays the
role of lender, retailer and
advisor transforming
borrowers to suppliers. Whole
foods market is doing this
Nigeria
15 | Poverty Hedging | Micro-forecasts from the Game
Create annuities/instruments
to hedge for your own
poverty. E.g. pay $2/mo. In 10
yrs., if poor get food/support
payout;
if rich, donate benefits.
USA

7. © 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B 7
Carbon trade at micro level to
connect consumers in
developed societies to greener
but ‘poorer’ societies. Possible
with data collection
China
15 | Poverty Hedging | Micro-forecasts from the Game
Microcredit firm that plays the
role of lender, retailer and
advisor transforming borrowers
to suppliers. Whole foods
market is doing this
Nigeria
Create annuities/instruments
to hedge for your own
poverty. E.g. pay $2/mo. In 10
yrs., if poor get food/support
payout;
if rich, donate benefits.
USA

8. © 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B 8
Develop the usage of micro-
finance as a collective instead
of individual, thus
strengthening local bonds and
traditional economies
Peru
15 | Poverty Hedging | Micro-forecasts from the Game
Microcredit firm that plays the
role of lender, retailer and
advisor transforming borrowers
to suppliers. Whole foods
market is doing this
Nigeria
Create annuities/instruments
to hedge for your own
poverty. E.g. pay $2/mo. In 10
yrs., if poor get food/support
payout;
if rich, donate benefits.
USA
Carbon trade at micro level to
connect consumers in
developed societies to
greener but ‘poorer’ societies.
Possible with data collection
China

9. © 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B 9
In fact, there are initiatives to
link traditional ways of saving
with the formal ones that
financial system requires
Peru
15 | Poverty Hedging | Micro-forecasts from the Game
Microcredit firm that plays the
role of lender, retailer and
advisor transforming borrowers
to suppliers. Whole foods
market is doing this
Nigeria
Create annuities/instruments
to hedge for your own
poverty. E.g. pay $2/mo. In 10
yrs., if poor get food/support
payout;
if rich, donate benefits.
USA
Carbon trade at micro level to
connect consumers in
developed societies to
greener but ‘poorer’ societies.
Possible with data collection
China
Develop the usage of micro-
finance as a collective
instead of individual, thus
strengthening local bonds
and traditional economies
Peru

10. © 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B 10
Perhaps the governments
could contribute a small sum
to the child upon birth to be
saved and untouched until the
child turns 18
Sri Lanka
15 | Poverty Hedging | Micro-forecasts from the Game
Microcredit firm that plays the
role of lender, retailer and
advisor transforming borrowers
to suppliers. Whole foods
market is doing this
Nigeria
Create annuities/instruments
to hedge for your own
poverty. E.g. pay $2/mo. In 10
yrs., if poor get food/support
payout;
if rich, donate benefits.
USA
Carbon trade at micro level to
connect consumers in
developed societies to
greener but ‘poorer’ societies.
Possible with data collection
China
Develop the usage of micro-
finance as a collective
instead of individual, thus
strengthening local bonds
and traditional economies
Peru
In fact, there are initiatives to
link traditional ways of saving
with the formal ones that
financial system requires
Peru

11. © 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B 11
Then like carbon caps, poverty
remediation opportunities
could be traded.
USA
Microcredit firm that plays the
role of lender, retailer and
advisor transforming borrowers
to suppliers. Whole foods
market is doing this
Nigeria
Create annuities/instruments
to hedge for your own
poverty. E.g. pay $2/mo. In 10
yrs., if poor get food/support
payout;
if rich, donate benefits.
USA
Carbon trade at micro level to
connect consumers in
developed societies to
greener but ‘poorer’ societies.
Possible with data collection
China
Develop the usage of micro-
finance as a collective
instead of individual, thus
strengthening local bonds
and traditional economies
Peru
In fact, there are initiatives to
link traditional ways of saving
with the formal ones that
financial system requires
Peru
perhaps the governments
could contribute a small sum
to the child upon birth to be
saved and untouched until
the child turns 18
Sri Lanka
15 | Poverty Hedging | Micro-forecasts from the Game

12. © 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B 12
An increasing number of
commercial banks in India are
now allowing proxies including
local grocery stores to act in
their place.
India
15 | Poverty Hedging | Micro-forecasts from the Game
Microcredit firm that plays the
role of lender, retailer and
advisor transforming borrowers
to suppliers. Whole foods
market is doing this
Nigeria
Create annuities/instruments
to hedge for your own
poverty. E.g. pay $2/mo. In 10
yrs., if poor get food/support
payout;
if rich, donate benefits.
USA
Carbon trade at micro level to
connect consumers in
developed societies to
greener but ‘poorer’ societies.
Possible with data collection
China
Develop the usage of micro-
finance as a collective
instead of individual, thus
strengthening local bonds
and traditional economies
Peru
In fact, there are initiatives to
link traditional ways of saving
with the formal ones that
financial system requires
Peru
perhaps the governments
could contribute a small sum
to the child upon birth to be
saved and untouched until
the child turns 18
Sri Lanka
Then like carbon caps,
poverty remediation
opportunities could be traded.
USA

13. © 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B 13
Transition from national or
regional prosperity model. As
nations don’t exist in isolation.
For example a warring
Somalia impacts Kenya
Nigeria
15 | Poverty Hedging | Micro-forecasts from the Game
Microcredit firm that plays the
role of lender, retailer and
advisor transforming borrowers
to suppliers. Whole foods
market is doing this
Nigeria
Create annuities/instruments
to hedge for your own
poverty. E.g. pay $2/mo. In 10
yrs., if poor get food/support
payout;
if rich, donate benefits.
USA
Carbon trade at micro level to
connect consumers in
developed societies to
greener but ‘poorer’ societies.
Possible with data collection
China
Develop the usage of micro-
finance as a collective
instead of individual, thus
strengthening local bonds
and traditional economies
Peru
In fact, there are initiatives to
link traditional ways of saving
with the formal ones that
financial system requires
Peru
perhaps the governments
could contribute a small sum
to the child upon birth to be
saved and untouched until
the child turns 18
Sri Lanka
Then like carbon caps,
poverty remediation
opportunities could be traded.
USA
An increasing number of
commercial banks in India are
now allowing proxies
including local grocery stores
to act in their place.
India

14. © 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B 14
15 | Poverty Hedging | Micro-forecasts from the Game
Microcredit firm that plays the
role of lender, retailer and
advisor transforming borrowers
to suppliers. Whole foods
market is doing this
Nigeria
Create annuities/instruments
to hedge for your own
poverty. E.g. pay $2/mo. In 10
yrs., if poor get food/support
payout;
if rich, donate benefits.
USA
Carbon trade at micro level to
connect consumers in
developed societies to
greener but ‘poorer’ societies.
Possible with data collection
China
Develop the usage of micro-
finance as a collective
instead of individual, thus
strengthening local bonds
and traditional economies
Peru
In fact, there are initiatives to
link traditional ways of saving
with the formal ones that
financial system requires
Peru
perhaps the governments
could contribute a small sum
to the child upon birth to be
saved and untouched until
the child turns 18
Sri Lanka
Then like carbon caps,
poverty remediation
opportunities could be traded.
USA
Transition from national or
regional prosperity model. As
nations don’t exist in isolation.
For example a warring
Somalia impacts Kenya
Nigeria
An increasing number of
commercial banks in India are
now allowing proxies
including local grocery stores
to act in their place.
India

15. © 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B
Signals from the Present
15
15 | Poverty Hedging

16. © 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B 16
Following in the footsteps of
Mexico, Korea, and
Singapore, the Coalition is
working towards universal
savings accounts for every
child at birth in the United
States.
Fundación Capital
Fundación Capital is a group of Latin
American economists building a new
economic paradigm for the region. Many
of their projects are built on top of
government-sponsored Conditional
Cash Transfer systems, adding game
mechanics and digital tools to promote
financial literacy and saving.
15 | Poverty Hedging | Signals from the Present
Child Savings Account Coalition
Image Source: www.fundacioncapital.org
Image Source:
http://www.bos.frb.org/commdev/c&b/2010/winter/Butrica_Chi
ld_Savings_Accounts.pdf

17. © 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B
© 2013 Institute for the Future. All rights reserved. SR-1563B
March 2013
Foresight Engine Game Analysis:
25 Zones of
Future Innovation
© 2013 Institute for the Future for Rockefeller Foundation. All rights reserved. SR-1563B
A project by Institute for the Future and The Rockefeller Foundation
www.iftf.org/our-work/global-landscape/catalysts-for-change/catalysts-zones-of-innovation
Contact: Tessa Finlev, tfinlev@iftf.org