Riverwood: Kenyan Super-fast, Super-cheap Filmmaking

The African film-making success story of Nigeria’s Nollywood has been joined by another fast-rising star: Kenya’s Riverwood. Both are beneficiaries of the digital revolution in filmmaking over the last decade, and both are using low-cost digital filmmaking and editing to tell local stories — in the process making money and creating thousands of jobs.

The power of creative industries to create jobs and wealth has been a focus of UNESCO, through its Global Alliance for Cultural Diversity. UNESCO has been in the forefront in helping African countries re-shape their policies to take cultural industries into consideration. The promotion of cultural industries also has been incorporated into the New Partnership for Africa’s Development (NEPAD).

What is particularly attractive about this phenomenon for the poor in the South is its rough-and-ready approach to filmmaking: combining low-cost digital cameras and film editing software on personal computers, with small budgets and fast turn-around times. Films are made on location using local people. These factors make getting into filmmaking accessible and within reach of more people.

Riverwood is named after River Road, a bustling creative and business hub in Nairobi. Riverwood operates at a furious pace, with 20 to 30 films made every week. It adds up to 1,000 films a year selling 500,000 copies at 200 Kenyan shillings (US $2.60) a piece: 1 billion shillings (US $13 million) in the past two years.

The whole industry is totally self-sufficient, and is following the well-trodden path laid down by Hollywood and India’s Bollywood.

One of Kenya’s woman directors is leading the renaissance in filmmaking. “Movies are very important because I think they are the most important art in Kenya – in Africa,” said Wanjiru Kinyanjui in the film, “Riverwood, the Blooming of a Film Industry,” by the World Intellectual Property Organization (www.wipo.org). “Basically, because Africans have an oral tradition, and a visual one, there is a huge market for local films.”

Riverwood films share a common characteristic of on-the-spot sets and a resourceful and cheap approach.

“They are shot in two, three days and edited in a week,” she continued. “They are selling because people can identify with them. The films being in Riverwood are basically the lives of people, reflecting the Kenyan way of life and entertaining Kenyans.“

And it is a new form of employment for many people:  “When I am making a movie, I need people: you employ very many people. And you also employ yourself. It is a real way of getting rid of poverty. Because all this talent, which is untapped, could be working.”

And as Riverwood rising star director John E. Maina puts it: “Hollywood is the model for any society that wants to develop.”

While still in its infancy compared to Nigeria’s Nollywood, Riverwood is already pioneering ways to protect the creative rights of filmmakers and build a financially-sustainable industry. Inspired by Hollywood’s ownership of creative material, Kenyan filmmakers have come up with some ingenious solutions. Each production company has a rubber stamp and signs on the sleeve of the DVD (digital video disc) – even if it is 1,000 copies.

If a director finds a pirated copy, and even if pirates have forged the rubber stamp, the signature will look like a forgery.

“It is based on a business model,” said director John E. Maina. ”It is commercial. So it is self-sustaining. This is how Bollywood is growing, this is how Nollywood is growing, this is how Hollywood developed.”

As pioneers in copyright protection, Riverwood directors strongly believe they are an important part of the country’s development.

“When you pirate a product, and the resources are not channelled back to the person who created that product, he is losing out on creating a new product for you tomorrow,” said Maina. “So you are the loser: tomorrow you will not have another product.

“Riverwood, Nollywood, Hollywood, are the model for any society that wants to develop. No society will develop without an audiovisual industry. And I think the way to protect an audiovisual industry is through strong copyright laws,” he said.

“If you go to most of the cafes and the pubs in Kenya, people only turn to TV at 7 o’clock, watch the news, after the news is over, they tell the management to put for them the local DVDs from Riverwood. Because they see themselves, they identify with those images. They don’t identify with the foreign American films, the soaps from South America.

“The audiovisual industry is a mirror. If you don’t have a mirror to see yourself, you don’t know who you are. If you don’t have that mirror to see yourself, you are lost.”

By David South, Development Challenges, South-South Solutions

Published: November 2008

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=P62XBgAAQBAJ&dq=development+challenges+november+2008&source=gbs_navlinks_s 

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsnovember2008issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Model Indian Villages to Keep Rural Relevant

 

The world’s rush to urban centres is the great challenge of the 21st century. In 2007, the world became a majority urban place. The consequences of this shift can be seen in the blight of urban poverty, with its slums and squalor, environmental degradation, and rising social tensions. But there are people working on keeping rural areas relevant and pleasant places to live. These rural advocates see a vibrant countryside as part of the solution to the world’s plethora of crises.

In India, a pioneering initiative is reviving impoverished rural villages. Drawing on self-organizing methods used in India since 1200 BC, the Model Village India (www.modelvillageindia.org.in) is based around India’s democratic system of Panchayats: a village assembly of people stemming back to pre-colonial times.

“Decentralizing is necessary if development is to reach the grassroots,” said the concept’s founder, Rangeswamy Elango, a head of the village of Kuthampakkam, 20 kilometres (12 miles) from the bustling city of Chennai, and one of the 12,600 Panchayats in the Indian state of Tamil Nadu.

While all villages have the ability to use the Panchayat system to improve their lives, few are making the most of this system. The model villages are about showing other villages the true power they have at their disposal. And that with a plan and determination, they can increase their income and improve their quality of life, attracting more money from government and other sources to do so.

The concept has now expanded to 30 model villages. At its core it is about being positive, eschewing griping about problems and instead getting down to work to solve them.

“We demonstrate the basic infrastructure, sustainable housing, food security,” said Elango. “If the government is not bothering, maybe through the local people’s efforts, we can try to demonstrate a variety of development models.”

As India’s economy has boomed, its small towns and villages have withered. Home to the majority of the country’s population, they are in crisis, with declining populations and high suicide rates. India’s urban slums are where people are going – they are growing 250 percent faster than the country’s population. India is a country in danger of neither having a viable rural economy, nor viable cities, but just vast tracts of slums.

Originally left out of the first draft of India’s constitution, Panchayats became legitimized in 1992. They are now elected in every one of the 260,000 villages in India. If they use them, the local Panchayats have extensive powers to transform the destiny of a village, with control of budgets, and decision-making power on how services are to be delivered. This ranges from the provision of clean water, to burying the dead and building roads. The trick is in getting people to realize the power they wield over their destiny and how it can transform their economic situation.

“The village-level local governments are constitutionally important bodies,” said Elango, “but the way it is implemented is not good. The system is unable to deliver the goods to the people.”

The model village approach has revived once-declining villages plagued with high unemployment, chronic alcohol abuse, and domestic violence. The residents are involved in the building of new and healthier homes, providing clean drinking water, waste facilities, education services – including an academy dedicated to teaching the skills and lessons leaned by the villagers to other villages – and even trying to break down the barriers between people because of India’s caste social hierarchy.

“Instead of having a big college, this is a practical people’s model,” Elango said. “It is not done by an academic but by a layman. The learning is spontaneous and emotional.”

Elango is driven by making his village a model that works, and in turn, becoming a magnet for others wishing to improve their lives and their villages.

Elango’s village was not able to support itself with its two crop harvests a year and the villagers resorted to illegal alcohol production instead to make a living. Despite being well connected by highway with nearby Chennai, the village was socially and economically dying.

Like a spreading ink spot, the concept is to create a network of like-minded villages that act as self-reinforcing positive role models, spreading the prosperity and stability outwards. The “Network Growth Economy Model” is a direct challenge to the “special economic zones that benefit only capitalist owners,” said Elango.

Ambitious, Elango is hoping to draw in 2,000 villages over the next 10 years, until a tipping point is reached, and the model explodes across India.

A native of the village, Elango became saddened by the community’s decline, including widespread domestic violence against women. The booming city of Chennai’s prosperity had not rippled out to the village, and it was still lacking good infrastructure and sanitation. A trained chemical engineer, he was elected the President of the Kuthambakkam Panchayat in 1996, and set about using his engineer’s perspective to draft the village’s five-year plan from 1996 to 2001.

But the budget was tight. And he had to turn to innovative solutions: recycling building materials, conserving water and reducing electricity consumption. But the resourcefulness paid off, and the state of Tamil Nadu provided the money to upgrade roads, drains, build a community centre, child care facilities, 200 low cost toilets, and work sheds for the village’s industries. By the end of 2001, most basic needs were being met. He then turned to providing good quality housing for the villagers still living in thatch huts.

He has used the “Network Growth Economy Model” to tackle the unemployment and low incomes. It works like this: rather than buying food and other products from outside the village, the villages band together to establish industries to provide those products to each other. This creates jobs and increases income by keeping the wealth within the network of villages, rather than it benefiting far-away companies. The new businesses include Thoor dhal processing, dairies, soap making, bakeries, ground nut oil production, and leather making.

“India was strong when this model was in place – we had strong villages,” said Elango. “Globalization’s trickle down is not working for India.”

By David South, Development Challenges, South-South Solutions

Published: November 2008

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=P62XBgAAQBAJ&dq=development+challenges+november+2008&source=gbs_navlinks_s 

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsnovember2008issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Brazilian Solar-powered WiFi for Poor Schools

There is a pressing need to spread access to the Internet to the world’s poor — but also many obstacles. Often it is something as basic as a lack of electricity that brings progress to a halt. But a Brazilian innovator has come up with a solar power supply that is helping to bring Internet access to schools serving the poor.

Many initiatives are trying to bring inexpensive access to the  Internet to rural and remote regions around the world. Schools in poor areas are receiving laptop computers through schemes like the One Laptop Per Child project, but it is common that schools do not have a steady electricity supply to power the computers or the Internet connection. One of the most successful ways of rapidly expanding access is to offer wireless (WiFi) Internet so that anyone can use the Web, no matter what device they have, whether a laptop computer, a personal computer or a mobile phone. The signals use radio waves, and are an excellent solution for multiple users.

Brazilian professor Marcelo Zuffo, Interactive Electronics Coordinator at the University of Sao Paulo, has invented a cheap solar-powered WiFi access point for the poor. Designed to be used by schools without a steady source of electricity, it doesn’t need outside electricity supply, and is not difficult to assemble. It is being tested on lampposts around the Sao Paolo campus.

The device uses something called a ‘mesh’ strategy. By acting as a group, several units are able to expand the area covered by WiFi in a honeycomb pattern. The signal is relayed back and forth between the units, significantly increasing the area covered that can access the Web. “In such a strategy,” said Zuffo,”you can cover large rural areas, parks, low income neighbourhoods, by just dropping our equipment in roofs, trees or on to existing lamp posts.”

Zuffo was inspired to develop the solar-powered WiFi boxes after the university tried to bring laptop computers to a Sao Paulo school, and found they didn’t have a steady electricity supply.

“We came up with the idea of taking energy that is most plentiful and cheap, i.e. the sun,” he told the BBC. “We have a solar panel, a cheap motorcycle battery and a circuit that is responsible for energy management. We can have up to two days of full Internet coverage and our goal is to increase that to 10 days – so that in the rainy season and the winter, you can have the Internet for free.

“The natural plan is to miniaturize the system so that we can save on costs. So by the end you can imagine these WiFi solar mesh devices being the size of a cellphone or playing card.”

The low cost, solar-powered access point is ready as soon as it is unpacked and needs neither maintenance nor a power socket to get going.

“It is a completely autonomous WiFi hotspot, it doesn’t need any Internet or energy connection,” said Zuffo.

“Everything comes from the sun and we have plenty of that in Brazil,” he said.

The volunteer organization Green WiFi initiative is also developing solar powered technologies to bring ubiquitous Internet access to the world’s poor.

Zufo’s message for other scientists and inventors is this: “Innovation, invention is all about transforming people’s lives. We need methods and equipment which are cheap enough so that they are accessible to virtually every one, suitable for small scale applications, and compatible with man’s need for creativity.”

The issue of inequality in access to the Internet has stark consequences for global economic development. Already, according to the World Information Society Report 2007, “Europe has achieved the largest overall gain in digital opportunity over the last two years, followed by the Americas… Asia and Africa have witnessed smaller gains in digital opportunity. The implications for the digital divide are clear: digital opportunity is becoming more sharply divided by region, not less.”

By David South, Development Challenges, South-South Solutions

Published: November 2008

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=P62XBgAAQBAJ&dq=development+challenges+november+2008&source=gbs_navlinks_s 

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsnovember2008issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Local Fashions Pay Off for Southern Designers

Fashion earns big money around the world: The global clothing industry is estimated to be worth US $900 billion a year. For many decades, strong American brands have been the desired commodity for those looking to be cool and contemporary. People were willing to pay high premium prices to get the cache of American cool that the brands conveyed.

But the decline in popularity suffered by American brands in recent years has become a boost for local brands. And this is creating a whole new opportunity for canny Southern entrepreneurs. It is being called ‘fashionalism’ or fashion nationalism – a pop culture trend blending patriotism with fashion.

One of fashionalism’s pioneers is Italian-educated Filipino designer Rhett Eala. He is credited with coming up with the snappy name fashionalism, after launching his My Pilipinas clothing line. Its signature logo is the Philippine archipelago on collared shirts and cotton polo shirts. An experienced designer who has worked in Hong Kong and for a major department store, Eala joined Collezione C2 as creative director two years ago.

He started with just three styles sporting the map. But now he has expanded the design to cover almost his entire range of clothing.

“It’s a fun way to show your pride in being Filipino, without a lot of words. Filipinos have today become global citizens,” said Eala.

Eala’s design talent stretches to pop art paintings as well, with an art exhibit called My Pilipinas Series, 18 Filipino pop art paintings that transcend flag-waving notions of nationalism.

But Eala is no parochialist: he is very much inspired by global artists and trends. His work is a blend of foreign concepts and patriotic ideals. Common Filipino iconography gets the high-design treatment, as Eala draws inspiration from Damien Hirst, David Hockney and Andy Warhol. He tries to challenge his customers, taking the complicated and oblique Rorschach Test patterns, and blending them with other designs.

The fashionalist logoed clothing not only sells well domestically, but also amongst the large diaspora of Filipino expatriates around the world.

“Fashionalism has a very positive impact on our business,” said Joey Qua, the Managing Director of Collezione C2. “We’ve always wanted to highlight the ingenuity of Philippine artistry and what it feels like to be proud to be a Filipino.”

“More importantly, we want to make Filipinos proud to wear our brand here and abroad, since the Filipinos of today are more global in nature, we have so many Filipinos who are more exposed globally.”

“We want to make nationalism hip and relevant to today’s generation,” said Eala.

Supporters of fashionalism say it is about restoring pride in the country’s development and achievements, not in stirring up negative xenophobia and other negative aspects of nationalism.

Another group of Manila fashion designers, Team Manila and Analog Soul, are marking the 25th anniversary of the death of Filipino nationalist hero, Ninoy Aquino – who was assassinated at the airport after returning to the Philippines from his self-imposed exile in the United States on August 21, 1983. Their t-shirts include sayings like: “I am Ninoy.”

The clever designers have turned Aquino’s signature old-school eye glass frames into an iconic logo.

“Ever since our humble beginnings as a Design Studio in 2001, we’ve made it a point to celebrate the Philippines and the Filipino people in our designs,” said Team Manila’s chief operating officer, Nico Bacani. “It was only natural that when we established our clothing and apparel line in 2005, the messages would remain the same – positive messages about the country, the culture and the people, be it explicitly or through subtle means in design.”

Underground t-shirt designers had been selling yellow Ninoy t-shirts to the young and trendy urbanites. But it is the professional design flair that has taken the trend to the next level and created an industry in its own right, with the fashionalism branding spreading beyond clothes to coffee mugs and other everyday items.

“We started as a design studio working from our Macs (Macintosh Computers) at home,” said Bacani. “and when we did start selling merchandise, this would be done literally in our garage and obscure spaces throughout the apartment we were renting. We then participated in bazaars, until such time as we raised enough capital and loyal clientele to expand into a stand-alone store.

“So the obstacles we faced were more towards asset capitalization and recruiting people well-versed in the retail industry. We were, however, luckier than most, as the media would frequently feature our products, which was a big boost.”

And Bacani hopes for a big payoff for the Phillippines as a whole.

“We really wouldn’t say there’s anything negative about it, but we would say that it would be quite disappointing if it ended up just being that – wearing the clothes and not living the message. We would be quite pleased if Fashionalism were a trigger, a catalyst for something bigger, such as a more active participation in the development of the country as a whole. And we see that people starting to think and feel proud of being Filipino and representing the Filipino well, whether it be at the workplace here or abroad, or in everyday living around the world.”

As for other fashion designers thinking of going down the fashionalism path, Eala said: “My advice is being honest with your design. Try to design from your heart and your mind. Be inspired with what’s around you. Design for your environment and if you have a chance, travel to places that you haven’t been to. ”

More on Andy Warhol at Artsy here: https://www.artsy.net/artist/andy-warhol

By David South, Development Challenges, South-South Solutions

Published: October 2008

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsoctober2008issue  

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Mobile Phones: New Market Tools for the Poor

Bangladesh’s poor can now buy and sell goods and services with their mobile phones, thanks to a Bangladeshi company’s pioneering mobile phone marketplace. The company, CellBazaar, serves as a useful role model for other Southern entrepreneurs and companies looking to develop and market mobile phone applications for the poor that really help them.

CellBazaar is simple to use: A user begins the process by texting the word “buy” to short message (SMS) code 3838. They then are offered a list of all the items for sale and scroll through them to find what they want. When they have found something, they send another SMS. In response, an SMS comes back telling the seller’s phone number. And from that point, business is underway between the buyer and the seller.

“It’s a far more efficient way of finding things. In the past you have to go to newspapers, magazines, and find the best match,” founder Kamal Quadir told MobileActive.

The categories run from used cars and motorcycles, to new laptops, agricultural products like corn, chickens and fish, educational tutors, jobs, and places for sale and rent.

Quadir said he had the idea for CellBazaar when he was a graduate student at MIT, the Massachusetts Institute of Technology in the United States.

“I was surrounded by technologically sophisticated people,” he said. “I saw all this technological possibility and heard one top-notch scientist mentioning that a very cheap mobile phone had the same capabilities as a NASA computer in 1968. A country like Bangladesh has 35 million NASA-type computers, and most importantly, they’re in people’s pockets.”

Quadir saw all this power going to waste, and realized how business was being held back by the lack of information. Absence of market intelligence – or what is available for sale and what is a good price – was a big impediment to more profitable and efficient business transactions.

Quadir first created the idea at MIT Media Labs and eventually signed a contract with GrameenPhone. CellBazaar launched in July of 2006, and, after a year of beta testing, the team started to actively market the service in August 2007.

CellBazaar can also be accessed through its website. This has the advantage of making what is a very local market an international market.

Partnering with GrameenPhone, Bangladesh’s leading telecommunications service provider with more than 18 million subscribers, had its advantages. With 60 percent of the Bangladesh market, “their network is larger than others,” Quadir said.

Just as web applications like Google and the powerful social networking website Facebook (www.facebook.com) transformed the way people work and socialize, so CellBazaar has needed to encourage a change in behaviour for it to work. At first, people didn’t think they had anything worth selling, or that they could use the text messages to connect to a marketplace.

“In the past, a rural village person couldn’t even imagine that they wanted to sell something and the whole world would be willing to buy it,” Quadir said. “The biggest challenge we have is people blocking that audacity and courage.”

To date, over 1 million people have used the service out of a country of 150 million people. “Fundamentally the real issue is about changing people’s patterns,” he said. “But once they learn how to use it, people start doing it really frequently.”

The CellBazaar experience also shows how critical clever marketing is to business success. The company has been marketed through tastefully designed stickers placed in the windows of cars, taxis and microbuses — ubiquitous and continuous publicity for low cost.

CellBazaar also has launched educational booklets for four target audiences: villagers and farmers, the elderly and retired, young professionals, and tech-savvy teenagers. There are detailed booklets for those who want step-by-step instructions, as well as short leaflets for customers who want to carry a “quick guide” in their pocket.

CellBazaar launched its first television campaign during the Muslim festival of Eid in 2007. The ads featured a newspaper seller called Shamsu Hawker, and show how he begins a new career buying and selling used televisions with the help of CellBazaar. The advertisement’s unusual setting on a train, as well as positive imagery of Bangladesh, created a sensation among TV viewers. The character “Shamsu Hawker” has become a nationally recognized icon and popular cultural figure.

As the service grows, the demographic that uses it has also expanded. “Young people were the early adopters,” said Quadir. “Initially urban people used it more, because we didn’t market very aggressively. Word of mouth spread faster because of the higher concentration of people in cities. But now it has spread to rural areas as well.”

CellBazaar has won many awards for its innovation in social and economic development.

The ambitious Quadir wants to expand CellBazaar into East Africa, Eastern Europe, and South Asia. Unlike the web, CellBazaar has to make deals with local mobile phone providers. He can’t just offer the service through the internet. “The Internet belongs to everybody — like highways and like fresh air,” said Quadir. “Mobile networks are privately owned.”

“So far the operators we have worked with have been very good,” he said. “We are very selective in terms of what operator we work with.” As CellBazaar looks to expand, Quadir is focusing efforts on places that have high mobile penetration rates and low web penetration. “We’re looking at any place that has less internet. No matter how good the application is, having internet and high computer penetration doesn’t help us,” he said. “And mobile is everywhere.”

The same lesson is being learned around the world. A study of grain traders in Niger found that “cell phones reduce grain price dispersion across markets by a minimum of 6.4 percent and reduce intra-annual price variation by 10 percent.” According to the study, “The primary mechanism by which cell phones affect market-level outcomes appears to be a reduction in search costs, as grain traders operating in markets with cell phone coverage search over a greater number of markets and sell in more markets.”

Mobile phones are now the fastest growing consumer product in history. Portio Research estimates that between 2007 and 2012 the number of mobile subscribers will grow by another 1.8 billion, mostly in emerging economies like India and China.

Informa Telecoms and Media estimates mobile networks now cover 90 per cent of the world’s population – 40 per cent of whom are covered but not connected. With such reach, finding new applications for mobile phones that are relevant to the world’s poor and to developing countries is a huge growth area. It is estimated that by 2015, the global mobile phone content market could be worth over US $1 trillion, and basic voice phone calls will account for just 10 per cent of how people use mobile phones.

Leonard Waverman of the London Business School has estimated that an extra 10 mobile phones per 100 people in a typical developing country, leads to an extra half a percentage point of growth in GDP per person.

The experience in the Philippines has shown that the best way to drive fast take up of mobile phone services is to offer something very practical and connected to personal income.

“The most significant lesson learned so far,” said Shawn Mendes, lead author on the report, The Innovative Use of Mobile Applications in the Philippines: Lessons for Africa, “is that m-Banking, rather than more altruistic applications such as m-Health and m-Education, has delivered the greatest benefits to people in developing countries.”

By David South, Development Challenges, South-South Solutions

Published: October 2008

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsoctober2008issue  

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.