How Business Can Drive Solutions to Social Problems | Carlos Rodríguez-Pastor | TED

Introduction to Carlos Rodriguez-Pastor

Corey Hajim introduces Carlos Rodriguez-Pastor as a leader who uses his business acumen to tackle challenges in Peru and beyond. He has established affordable schools called Innova, serving 65,000 students, along with maternity health-care clinics and infrastructure projects.

Education Challenges in Peru

• Corey asks Carlos about the education problem he observed in Peru.

• Carlos explains that although Peru experienced economic growth and reduced poverty rates, there were still hurdles to overcome, including issues with education, healthcare, and infrastructure.

• Public school teachers' assessment revealed low proficiency in basic math and reading comprehension.

• Peru ranked last in the PISA rankings for 15-year-old students.

• Carlos emphasizes the need for world-class education and healthcare to become a developed country.

State of Public Schools

• Carlos shares a photo of a typical public school in Peru, highlighting its poor conditions both inside and outside the building.

• Informal private schools emerged as an alternative to public schools but offered similar low-quality education.

• During an undercover visit to one of these private schools, they discovered the lack of commitment from the director/owner who viewed it as a profitable venture compared to running a Chinese food restaurant.

Goals for Education Transformation

• Despite having limited knowledge about education, Carlos sought inspiration from TED Talks and connected with innovative individuals and organizations like IDEO and Sal Khan.

• The education system they designed aimed to be affordable, academically excellent, scalable, and sustainable.

This summary covers the initial part of the transcript.

Profitability and Importance

In this section, the importance of profitability in the context of building schools and sustaining educational projects is discussed.

Profitability for Building Schools

• Profitability is crucial as it enables the construction of more schools and facilitates expansion across borders.

• The goal is to become a leading educational institution in the region, which would greatly enhance Peru's self-esteem.

Trade-offs for Profitability

• Limited resources require trade-offs in providing certain amenities. For example, students may have to share tablets and there might not be swimming pools.

• However, emphasis is placed on creating conducive learning environments where collaboration and blended learning models are implemented.

Healthcare Challenges

This section focuses on the challenges faced by the healthcare system in Peru and how innovative solutions were developed.

Broken Healthcare System

• The healthcare system in Peru was as broken as the education system.

• Long waiting times, lack of quality care, and informal practices were prevalent issues.

Innovative Solutions

• A partnership with IDEO and other institutions led to the development of a healthcare model targeting the emerging middle class.

• The approach involved leveraging pharmacies as primary points of access for basic healthcare needs.

• Additionally, clinics called Aviva were established with a focus on providing quality care during childbirth.

Infrastructure Development

This section explores infrastructure development through public-private partnerships in Peru.

Bridge Project Example

• A bridge project in Arequipa exemplifies how public-private partnerships can address long-standing infrastructure challenges.

• Through a program called "Projects for Taxes," companies can allocate a portion of their taxes towards community projects.

• Backed by major companies, including a beer company and mining company, a bridge was successfully built connecting different parts of Arequipa.

• The project was completed on time and within budget, showcasing the effectiveness of public-private partnerships.

Iconic Projects Across Peru

• The goal is to replicate this model in all 25 states of Peru, with iconic projects in each state.

• Five projects have been completed so far, with plans for 20 more.

The transcript provided does not include timestamps for every section.

The Role of the Private Sector in Solving Social Problems

In this talk, Carlos Rodriguez-Pastor discusses the role of the private sector in addressing social challenges in Peru. He highlights the importance of the middle class and urban settings for rapid scaling, and emphasizes the need to focus on rural areas and smaller cities. Rodriguez-Pastor also explains that their involvement in education and healthcare stemmed from government failures. He believes that the private sector can push leaders to tackle difficult problems and make a long-lasting impact.

The Growth of the Middle Class

• The middle class has been the fastest-growing segment of Peru's population for decades.

• Rapid scaling was possible due to unmet service needs in urban settings where much of the emerging middle class resides.

Addressing Rural Areas and Smaller Cities

• The next frontier is focusing on rural Peru, which still constitutes a significant portion of the population, as well as cities with 20,000 or fewer people.

Government Failures

• Involvement in areas like education and healthcare arose from government shortcomings in delivering these services.

• Frequent changes in cabinet ministers hindered progress, making it challenging to accomplish goals through government initiatives alone.

The Role of the Private Sector

• Rodriguez-Pastor acknowledges his initial passive approach but now believes that the private sector plays a crucial role in driving change.

• With 80% contribution to Peru's economy, they can exert pressure on leaders to address complex issues such as education that require long-term solutions beyond political terms.

• While not aiming to run the entire education system or educate all children, their objective is to prioritize education at a national level by partnering with the government.

Inspiring Collaboration

• By demonstrating what can be achieved, Rodriguez-Pastor hopes to inspire collaboration not only with their organization but also with other companies in Peru that excel globally.

Challenges and Solutions

• Rodriguez-Pastor shares a picture of protests in Peru, highlighting the need for unity and finding solutions together.

• He suggests identifying the most difficult challenges in communities and countries, getting involved, seeking help from others who have solved similar problems elsewhere, and focusing on making collective progress rather than individual gains.

Long-Term Objectives

• The long-term objective is to make Peru the best place to raise a family in Latin America and push it towards becoming a developed country. Execution is crucial despite the difficulties encountered along the way.