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One of my favorite parts

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of my job at the Gates Foundation

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is that I get to travel to the developing world,

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and I do that quite regularly.

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And when I meet the mothers

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in so many of these remote places,

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I'm really struck by the things

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that we have in common.

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They want what we want for our children

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and that is for their children to grow up successful,

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to be healthy, and to have a successful life.

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But I also see lots of poverty,

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and it's quite jarring,

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both in the scale and the scope of it.

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My first trip in India, I was in a person's home

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where they had dirt floors, no running water,

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no electricity,

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and that's really what I see all over the world.

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So in short, I'm startled by all the things

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that they don't have.

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But I am surprised by one thing that they do have:

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Coca-Cola.

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Coke is everywhere.

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In fact, when I travel to the developing world,

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Coke feels ubiquitous.

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And so when I come back from these trips,

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and I'm thinking about development,

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and I'm flying home and I'm thinking,

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"We're trying to deliver condoms to people or vaccinations,"

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you know, Coke's success kind of stops and makes you wonder:

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how is it that they can get Coke

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to these far-flung places?

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If they can do that,

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why can't governments and NGOs do the same thing?

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And I'm not the first person to ask this question.

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But I think, as a community,

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we still have a lot to learn.

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It's staggering, if you think about Coca-Cola.

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They sell 1.5 billion servings

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every single day.

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That's like every man, woman and child on the planet

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having a serving of Coke every week.

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So why does this matter?

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Well, if we're going to speed up the progress

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and go even faster

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on the set of Millennium Development Goals that we're set as a world,

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we need to learn from the innovators,

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and those innovators

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come from every single sector.

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I feel that, if we can understand

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what makes something like Coca-Cola ubiquitous,

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we can apply those lessons then for the public good.

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Coke's success is relevant,

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because if we can analyze it, learn from it,

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then we can save lives.

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So that's why I took a bit of time to study Coke.

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And I think there are really three things

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we can take away from Coca-Cola.

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They take real-time data

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and immediately feed it back into the product.

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They tap into local entrepreneurial talent,

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and they do incredible marketing.

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So let's start with the data.

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Now Coke has a very clear bottom line --

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they report to a set of shareholders, they have to turn a profit.

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So they take the data,

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and they use it to measure progress.

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They have this very continuous feedback loop.

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They learn something, they put it back into the product,

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they put it back into the market.

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They have a whole team called "Knowledge and Insight."

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It's a lot like other consumer companies.

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So if you're running Namibia for Coca-Cola,

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and you have a 107 constituencies,

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you know where every can versus bottle

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of Sprite, Fanta or Coke was sold,

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whether it was a corner store,

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a supermarket or a pushcart.

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So if sales start to drop,

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then the person can identify the problem

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and address the issue.

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Let's contrast that for a minute to development.

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In development, the evaluation comes

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at the very end of the project.

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I've sat in a lot of those meetings,

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and by then,

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it is way too late to use the data.

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I had somebody from an NGO

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once describe it to me as bowling in the dark.

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They said, "You roll the ball, you hear some pins go down.

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It's dark, you can't see which one goes down until the lights come on,

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and then you an see your impact."

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Real-time data

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turns on the lights.

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So what's the second thing that Coke's good at?

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They're good at tapping into

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that local entrepreneurial talent.

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Coke's been in Africa since 1928,

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but most of the time they couldn't reach the distant markets,

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because they had a system that was a lot like in the developed world,

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which was a large truck rolling down the street.

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And in Africa, the remote places,

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it's hard to find a good road.

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But Coke noticed something --

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they noticed that local people were taking the product, buying it in bulk

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and then reselling it in these hard-to-reach places.

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And so they took a bit of time to learn about that.

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And they decided in 1990

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that they wanted to start training the local entrepreneurs,

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giving them small loans.

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They set them up as what they called micro-distribution centers,

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and those local entrepreneurs then hire sales people,

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who go out with bicycles and pushcarts and wheelbarrows

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to sell the product.

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There are now some 3,000 of these centers

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employing about 15,000 people in Africa.

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In Tanzania and Uganda,

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they represent 90 percent

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of Coke's sales.

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Let's look at the development side.

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What is it that governments and NGOs

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can learn from Coke?

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Governments and NGOs

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need to tap into that local entrepreneurial talent as well,

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because the locals know how to reach

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the very hard-to-serve places, their neighbors,

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and they know what motivates them to make change.

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I think a great example of this

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is Ethiopia's new health extension program.

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The government noticed in Ethiopia

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that many of the people were so far away from a health clinic,

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they were over a day's travel away from a health clinic.

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So if you're in an emergency situation -- or if you're a mom about to deliver a baby --

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forget it, to get to the health care center.

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They decided that wasn't good enough,

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so they went to India and studied the Indian state of Kerala

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that also had a system like this,

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and they adapted it for Ethiopia.

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And in 2003, the government of Ethiopia

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started this new system in their own country.

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They trained 35,000 health extension workers

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to deliver care directly to the people.

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In just five years,

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their ratio went from one worker for every 30,000 people

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to one worker for every 2,500 people.

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Now, think about

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how this can change people's lives.

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Health extension workers can help with so many things,

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whether it's family planning, prenatal care,

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immunizations for the children,

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or advising the woman to get to the facility on time

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for an on-time delivery.

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That is having real impact

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in a country like Ethiopia,

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and it's why you see their child mortality numbers

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coming down 25 percent

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from 2000 to 2008.

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In Ethiopia, there are hundreds of thousands of children living

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because of this health extension worker program.

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So what's the next step for Ethiopia?

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Well, they're already starting talk about this.

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They're starting to talk about, "How do you have the health community workers

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generate their own ideas?

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How do you incent them based on the impact that they're getting

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out in those remote villages?"

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That's how you tap into local entrepreneurial talent

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and you unlock people's potential.

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The third component of Coke's success

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is marketing.

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Ultimately, Coke's success

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depends on one crucial fact

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and that is that people want

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a Coca-Cola.

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Now the reason these micro-entrepreneurs

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can sell or make a profit

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is they have to sell every single bottle in their pushcart or their wheelbarrow.

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So, they rely on Coca-Cola

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in terms of its marketing,

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and what's the secret to their marketing?

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Well, it's aspirational.

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It is associated that product

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with a kind of life that people want to live.

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So even though it's a global company,

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they take a very local approach.

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Coke's global campaign slogan

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is "Open Happiness."

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But they localize it.

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And they don't just guess what makes people happy;

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they go to places like Latin America

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and they realize that happiness there

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is associated with family life.

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And in South Africa,

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they associate happiness

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with seriti or community respect.

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Now, that played itself out in the World Cup campaign.

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Let's listen to this song that Coke created for it,

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"Wavin' Flag" by a Somali hip hop artist.

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(Video) K'Naan: ♫ Oh oh oh oh oh o-oh ♫

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♫ Oh oh oh oh oh oh oh oh oh oh ♫

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♫ Oh oh oh oh oh o-oh ♫

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♫ Oh oh oh oh oh oh oh oh o-oh ♫

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♫Give you freedom, give you fire♫

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♫ Give you reason, take you higher ♫

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♫ See the champions take the field now ♫

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♫ You define us, make us feel proud ♫

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♫ In the streets our heads are lifted ♫

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♫ As we lose our inhibition ♫

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♫ Celebration, it's around us ♫

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♫ Every nation, all around us ♫

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Melinda French Gates: It feels pretty good, right?

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Well, they didn't stop there --

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they localized it into 18 different languages.

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And it went number one on the pop chart

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in 17 countries.

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It reminds me of a song that I remember from my childhood,

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"I'd Like to Teach the World to Sing,"

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that also went number one on the pop charts.

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Both songs have something in common:

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that same appeal

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of celebration and unity.

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So how does health and development market?

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Well, it's based on avoidance,

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not aspirations.

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I'm sure you've heard some of these messages.

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"Use a condom, don't get AIDS."

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"Wash you hands, you might not get diarrhea."

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It doesn't sound anything like "Wavin' Flag" to me.

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And I think we make a fundamental mistake --

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we make an assumption,

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that we think that, if people need something,

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we don't have to make them want that.

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And I think that's a mistake.

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And there's some indications around the world that this is starting to change.

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One example is sanitation.

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We know that a million and a half children

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die a year from diarrhea

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and a lot of it is because of open defecation.

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But there's a solution: you build a toilet.

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But what we're finding around the world, over and over again,

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is, if you build a toilet and you leave it there,

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it doesn't get used.

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People reuse it for a slab for their home.

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They sometimes store grain in it.

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I've even seen it used for a chicken coop.

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(Laughter)

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But what does marketing really entail

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that would make a sanitation solution get a result in diarrhea?

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Well, you work with the community.

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You start to talk to them about why open defecation

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is something that shouldn't be done in the village,

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and they agree to that.

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But then you take the toilet and you position it

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as a modern, trendy convenience.

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One state in Northern India has gone so far

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as to link toilets to courtship.

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And it works -- look at these headlines.

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(Laughter)

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I'm not kidding.

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Women are refusing to marry men without toilets.

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No loo, no "I do."

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(Laughter)

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Now, it's not just a funny headline --

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it's innovative. It's an innovative marketing campaign.

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But more importantly,

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it saves lives.

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Take a look at this --

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this is a room full of young men

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and my husband, Bill.

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And can you guess what the young men are waiting for?

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They're waiting to be circumcised.

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Can you you believe that?

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We know that circumcision reduces HIV infection

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by 60 percent in men.

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And when we first heard this result inside the Foundation,

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I have to admit, Bill and I were scratching our heads a little bit

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and we were saying, "But who's going to volunteer for this procedure?"

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But it turns out the men do,

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because they're hearing from their girlfriends

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that they prefer it,

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and the men also believe it improves their sex life.

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So if we can start to understand

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what people really want

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in health and development,

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we can change communities

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and we can change whole nations.

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Well, why is all of this so important?

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So let's talk about what happens when this all comes together,

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when you tie the three things together.

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And polio, I think, is one of the most powerful examples.

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We've seen a 99 percent reduction in polio in 20 years.

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So if you look back to 1988,

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there are about 350,000 cases of polio

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on the planet that year.

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In 2009, we're down to 1,600 cases.

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Well how did that happen?

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Let's look at a country like India.

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They have over a billion people in this country,

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but they have 35,000 local doctors

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who report paralysis,

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and clinicians, a huge reporting system in chemists.

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They have two and a half million vaccinators.

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But let me make the story a little bit more concrete for you.

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Let me tell you the story of Shriram,

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an 18 month boy in Bihar,

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a northern state in India.

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This year on August 8th, he felt paralysis

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and on the 13th, his parents took him to the doctor.

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On August 14th and 15th, they took a stool sample,

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and by the 25th of August,

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it was confirmed he had Type 1 polio.

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By August 30th, a genetic test was done,

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and we knew what strain of polio Shriram had.

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Now it could have come from one of two places.

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It could have come from Nepal, just to the north, across the border,

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or from Jharkhand, a state just to the south.

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Luckily, the genetic testing proved

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that, in fact, this strand came north,

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because, had it come from the south,

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it would have had a much wider impact in terms of transmission.

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So many more people would have been affected.

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So what's the endgame?

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Well on September 4th, there was a huge mop-up campaign,

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which is what you do in polio.

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They went out and where Shriram lives,

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they vaccinated two million people.

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So in less than a month,

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we went from one case of paralysis

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to a targeted vaccination program.

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And I'm happy to say only one other person in that area got polio.

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That's how you keep

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a huge outbreak from spreading,

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and it shows what can happen

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when local people have the data in their hands;

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they can save lives.

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Now one of the challenges in polio, still, is marketing,

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but it might not be what you think.

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It's not the marketing on the ground.

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It's not telling the parents,

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"If you see paralysis, take your child to the doctor

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or get your child vaccinated."

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We have a problem with marketing in the donor community.

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The G8 nations have been incredibly generous on polio

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over the last 20 years,

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but we're starting to have something called polio fatigue

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and that is that the donor nations

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aren't willing to fund polio any longer.

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So by next summer, we're sighted to run out of money on polio.

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So we are 99 percent

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of the way there on this goal

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and we're about to run short of money.

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And I think that if the marketing were more aspirational,

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if we could focus as a community

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on how far we've come

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and how amazing it would be

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to eradicate this disease,

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we could put polio fatigue

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and polio behind us.

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And if we could do that,

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we could stop vaccinating everybody, worldwide,

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in all of our countries for polio.

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And it would only be the second disease ever

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wiped off the face of the planet.

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And we are so close.

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And this victory is so possible.

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So if Coke's marketers came to me

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and asked me to define happiness,

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I'd say my vision of happiness

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is a mother holding healthy baby

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in her arms.

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To me, that is deep happiness.

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And so if we can learn lessons from the innovators in every sector,

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then in the future we make together,

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that happiness

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can be just as ubiquitous

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as Coca-Cola.

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Thank you.

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(Applause)