Mongolia Looks to Become Asian IT Leader

A Mongolian information technology company founded by a woman has shown a way to thrive in the country’s often-chaotic economic environment. With the global economic crisis moving into its third year, Intec’s strategies to survive and thrive offer lessons for other IT start-ups in the South.

While the global economy’s prospects are still uncertain, on the positive side, many believe the best place to be is in emerging economies like Mongolia, with some foreseeing healthy growth for the next 20 to 30 years. Mongolia’s information technology entrepreneurs are looking to prove this is the case. The country has made great strides in improving e-government – jumping from 82nd place to 53rd in the UN e-government survey 2010 (http://www2.unpan.org/egovkb/global_reports/10report.htm) – and is now aiming to become an Asian software and IT services outsourcing powerhouse.

A Northeast Asian nation (http://en.wikipedia.org/wiki/Mongolia) sandwiched between Russia and fast-growing China, Mongolia grapples with the combination of a large territory, a small population (2,641,216) and limited transport infrastructure connecting it to its neighbours. Historically, it is a nomadic nation with a strong animal herding tradition. But during the Communist period, it industrialized and became more urban. After the collapse of Communism at the beginning of the 1990s, the country experienced a terrible economic and social crisis, with rapidly rising poverty rates and high unemployment.

Despite its infrastructure obstacles, Mongolia has been able to develop a lively information technology sector, often with the assistance of the United Nations. During the late 1990s, as the internet revolution exploded, the UN led on supporting infrastructure, skills development, innovation and legislation.

Information technology consulting and services company Intec (www.itconsulting.mn) , founded in 2004, has been able to thrive through the global economy’s ups and downs by identifying an under-serviced niche as a consulting, research and training company. Intec now has five full-time staff and works with a broad network of Mongolian and international consultants.

As is often the case with new businesses, Intec initially found that many doors were closed to start-up enterprises.

“The major challenges which I faced were to make people understand about the consulting services,” said Intec’s founder, Lkhagvasuren Ariunaa. “The consulting services concept was new to Mongolia and Mongolians at that time and not many organizations were willing to work with consulting services. The international and donor organizations were keen to work with consulting services companies; however, they were requiring companies to have a list of successfully implemented projects, which was difficult for a new starter like Intec.

“For example, registering with the Asian Development Bank consulting services database required companies to be operational for at least three years. So, we got registered with ADB consulting services database only in 2008. Meanwhile, personal connections and communication skills helped to find jobs and opportunities for Intec.”

Ariunaa had worked for the Soros Foundation (http://www.soros.org/) but it closed its offices in Mongolia in 2004. Faced with unemployment, Ariunaa went about seeing what she could do next: a dilemma many people face in today’s economy.

“It took me about eight months to develop a business plan and directions of operation of the company. I started in a big room at the national information technology park building with one table, chair and computer.

“It has been quite challenging years for bringing a company to the market and finding niches for us. We have franchised the Indian Aptech WorldWide Training center (http://www.aptech-worldwide.com) in Mongolia – may be one of the few franchising businesses in Mongolia. Currently that center is now a separate entity/company and it has over 20 plus faculty staff and over 300 students.”

Ariunaa had been active in the sector for over 10 years, but while knowing many of the players and organizations, she spent time researching what niche Intec could fill in the marketplace.

“Looking at the ICT market, there were quite a number of internet service providers, mobile phone operators, a few companies started developing software applications, and services etc. However, there were only two to three consulting companies in the ICT sector which to my knowledge at that time were providing consulting services, and still there was a room for Intec.”

Intec then focused on three areas: consulting services, training and skills, and research. Intec found they were pioneering a new concept in Mongolia.

Intec’s first contract was a job with the University of Milwaukee-Wisconsin in the United States to organize a three week course for American students to learn about the digital divide in Mongolia. But the global economic crisis hit Mongolia hard in 2009.

“It was challenging to survive and continue working the same way,” Ariunaa said. “There were few ICT-related jobs in Mongolia at that time, and one of our major clients left Mongolia and we had to find other clients in the market.

“One of the ways of approaching this was that we were not asking for fees, instead we would have a barter agreement – we will deliver them services and they will provide some services for us. For the company itself, we needed to find ways of financing and covering costs for renting of premises, paying salaries for staff on time, paying taxes and other expenses.”

The environment in Mongolia is being helped by the Information and Communications Technology and Post Authority (ICTPA) of Mongolia (http://www.ictpa.gov.mn) , which has been driving forward an e-Mongolia master plan. With 16 objectives, it ambitiously seeks to place Mongolia in the top five of Asian IT nations, competing with South Korea, Singapore, Japan and China.

Ariunaa believes Mongolia has many competitive advantages. “Mongolia is known for a high-literacy rate and math-oriented training and education, and ICT specialists are targeting to become a software outsourcing country for other countries. Another advantage of Mongolians is that they can easily learn other languages: we are fluent in Russian, English, Japanese, Korean, German and we believe that with these two major advantages, we will be able to do a good job with outsourcing of software development.”

While men still dominate the ICT sector in Mongolia, Ariunaa has not found being a woman a disadvantage. “In Mongolia, as gender specialists say, there is a reverse gender situation. Women are educated, well-recognized and well-respected. There were situations, when I was the only women participant in the meeting with about 20 men. But I never felt somewhat discriminated or mis-treated and I think that’s the overall situation towards gender in Mongolia.”

Intec’s success working with Aptech WorldWide Training’s franchising contract brought many advantages for a start-up. “It’s a faster way to do things, and you don’t have to re-invent the wheel.”

As a Mongolian company, Intec has found it best to play to its local strengths. “National companies have knowledge, expertise and experience of local situations, know players and understand about legal, regulatory matters. … partnership or cooperation are one of the means of cooperating with big global players.”

Intec’s success is also down to Ariunaa’s enthusiasm: “It’s fun and I love doing it – just usually do not have enough time!”

By David South, Development Challenges, South-South Solutions

Published: July 2010

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.  

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Info Ladies and Question Boxes: Reaching Out to the Poor

 

Quick access to accurate and useful information is crucial for development. With the remarkable spread of information around the world via the Internet – one of the greatest achievements of the 21st century – more than 1.5 billion people now use the Web to boost their incomes and opportunities (Internet World Stats).

For those lucky enough to be able to afford regular access to the Internet – as well as a computer and electricity – this new technology is a powerful tool for economic and social advancement. But what about people who are overlooked by technology companies because they are too poor, or too remote, or who are illiterate?

Two initiatives are bringing the benefits of information and communication technologies (ICTs) to the poor and the illiterate in ingenious ways.

Bangladesh’s (http://www.virtualbangladesh.com) ‘Info Lady’ scheme is the brainchild of D.Net (Development Research Network) (http://www.dnet-bangladesh.org/), a non-profit organization formed in 2001 to use information and communication technology (ICT) for economic development.

Info Ladies typically come equipped with a mobile phone, laptop computer, Internet modem, headphone, webcam, digital camera, and photo printer. They roam around remote villages on bicycles and are a one-stop access point for the rural poor for information, telephone calls and digital services like photography. And Info Ladies can also be Info Men, though this seems to be a problem because women have an easier time being invited into people’s homes.

One Info Lady is Luich Akhter Porag. She travels the countryside on her bicycle, equipped with a laptop computer, modem and a mobile phone, and can provide a commercial phone service, photography, livelihood information, knowledge services, international and local voice calls, video and animation and Internet resources.

When farmer Dula Miah had two of his cows bitten by a rabid dog, he was puzzled as to what to do. According to Bangladesh’s Daily Star newspaper, Info Lady Luich Akhter Porag came by to help. By using a software programme called ‘Jeeon’ (http://www.dnet.org.bd/MultimediaSoftware.php?BookType=8) – software designed to provide nine essential services to rural people –  Porag was able to identify the solution: a vaccine and a trip to the Sundarganj Veterinary Hospital.

Around 24 Info Ladies are now working in various villages in the districts of Gaibandha, Noakhali and Satkhira. The concept is effective: after receiving training in how to use the laptop computer and resources, they are dispatched on bicycles to remote villages to connect the poor and uneducated with crucial information.

D.Net started with something they called ‘Mobile Lady’ which used just mobile phones, but became frustrated with the limits of the service and decided to combine the phones with a laptop computer, effectively turning the women into mobile ‘telecentres’ (http://en.wikipedia.org/wiki/Telecentre).

Dr Ananya Raihan, executive director of D.Net, told The Daily Star that each Info Lady now earns between Tk 2,500 (US $36) and Tk 20,000 (US $290) per month. It has proven to be a good business for rural women, he said. And things are set to grow: “We are planning to increase the number of info ladies to 1,000 by year-end (2009).”

While traditional technology companies have stayed away from rural villages because it isn’t worth it for them to go there, the Info Ladies are simultaneously making money in the villages and connecting people to the outside world.

Porag says she has provided services to around 6,000 villagers.

“Now I earn more than Tk 2,500 (US $36) to Tk 3,500 (US $50) per month after becoming an info lady,” said Porag who started working as an Info Lady in June 2007.

Another initiative that is filling the gap between the needs of the poor and powerful information technologies is the Question Box (www.questionbox.org).

Pioneered in India – home to the largest number of illiterate people in the world: 304.11 million (Human Development Report) – the idea is brilliantly simple. An intercom-like white tin box with a phone inside is placed in a village’s public areas. Using the existing phone networks, the user just has to hit a simple button to get an operator at the other end. The operator sits in front of an Internet-enabled computer. The user just asks their question, and the operator turns these questions into search queries. When the computer’s search engine gives back answers, the operator selects the best one and then replies in the user’s native language and in layman’s terms.

The Open Mind Program’s Question Box Project opened its first Box in September 2007 and now operates in Pune, Maharashtra.

It has also expanded to Uganda, where the Question Box and Grameen Foundation (http://www.grameenfoundation.org/) have partnered to bring what they call AppLab Question Box (AQB) to rural Uganda. AQB is a live, local-language telephone hotline service that brings the Internet to the fields and market stalls in Uganda where there are no computers.

The Question Box is based on an idea from Rose Shuman, a business and international development consultant. Shuman had become frustrated that with all the clever people and vast sums of money going into information technology, few were developing low-cost ways to take the power of computers to the people.

Following the constant improvement approach favoured in information technology, the Box is now in its third iteration. One of the adjustments made has been the switch to solar power for the boxes because the electricity grid was too unreliable, according to Shuman.

By David South, Development Challenges, South-South Solutions

Published: September 2009

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.  

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Debt-free Homes For the Poor

As the population around the world’s cities grows, and slums grow larger and more prevalent, the urgent need for affordable and decent housing becomes more pressing. The world’s megacities – like Buenos Aires, Argentina, where more than 13 million live in the metropolitan region – have to find a way to provide housing that is both cheap and does the minimum possible amount of harm to the environment.

About one-third of the world’s urban dwellers live in slums, and the United Nations estimates that the number of people living in such conditions will double by 2030 as a result of rapid urbanization in developing countries. Latin America is already the most urbanized region in the developing world.

“Throughout Latin America you have economies that are growing and doing well, but the way the economies are growing is actually generating more shanty towns,” said Erik Vittrup, senior adviser on Latin America and the Caribbean for the U.N. Human Settlements Program. “It’s a growth that is just generating wealth for those who (already) have it.”

How well people dwell is integral to their mental and physical health. Most squatters and slum dwellers live in makeshift homes made from whatever they can get their hands on. These dwellings are usually unsafe and vulnerable to fire, floods, and earthquakes.

But across the South, initiatives are proving it is possible to build good quality homes for the poor while avoiding burdening them with debt. Pioneering ways are being developed for the poor to build their own high-quality houses using recycled materials and environmentally friendly products.

In Colombia , Alejandro Salazar, a chemical engineer, professor at the Universidad del Valle (http://www.univalle.edu.co/english/) and innovator running several companies pioneering new building technologies using recycled waste, is building high-quality, inexpensive houses for the poor.  By combining free building materials recovered from waste, a government grant and the voluntary labour of the homeowners, Salazar’s company is able to build homes for the poor that don’t leave them with ongoing bank debt from mortgages.

Based in Cali, Colombia (http://gosouthamerica.about.com/od/cali/p/Cali.htm), his companies Ecoingenieria (product and material research and development), Ecomat SA (production of eco-materials using industrial waste and construction rubble), Constructora Paez, (social housing construction using eco-products) and Wassh SA (environmental management and transformation of dangerous solid waste into non-dangerous materials), are focused on pioneering new technologies for housing.

“Our company uses two basic technologies,” said Salazar. “The production of eco-materials from solid waste and demolition waste, and the implementation of an agile building system, which does not require skilled labour and is hand-transportable. All the pieces are produced in a prefabrication plant that uses the eco-materials.”

Salazar has found a way to provide homes quicker than existing NGOs – Popular Housing Organizations (OPV), as they are called – established to address homelessness in Colombia. The homeless poor are caught in a Catch-22: they need to have a formal job to receive homebuilding assistance from the government, and they usually can not save up enough money for a down payment on the home.

Salazar’s solution is to take the maximum grant given by the central government, which is US $4,730, and combine it with the recycled building materials and homeowners’ own labour. He says this allows a house to be built for roughly half the price of a similarly sized one that uses conventional materials: the eco-materials house costs around US $ 6,590, compared to US $12,000 using conventional materials. Land is often either donated by the municipality or the family already owns it. And in Salazar’s experience, the whole family chips in with the building: husbands, sons, brothers, fathers, wives.

The training takes just three days on eco-materials and a day in construction techniques for house building.

“To date, we have built with this method 306 houses,” said Salazar. “For the coming year, we expect to deliver around 500 houses or more. To build a house, after acquiring the land, we need three people working eight hours a day to build it in four weeks – all under the supervision of a workforce teacher and the supervision of an engineer or architect.

“The houses are designed by architects with the participation of the community or families. They do some workshops and the design conforms to their vision and expectation. In Colombia, there is an earthquake resistance code which is binding in law and provides detailed specifications of the materials, foundations, structure and roof.”

The pre-fabricated building materials are made from recovered waste from a wide variety of sources: ceramic red brick, coarse ash and fly ash, slag from steel, copper slag, porcelain insulators used for electrical power lines, nickel slag, sludge from sugar and alcohol plants and water treatment plants.

“The raw materials we use are industrial solid waste and demolition waste. It costs the industry a lot to throw away this waste,” Salazar said.

He said the biggest obstacle to the new homes is psychological: many people initially “tend to reject at first-hand the technology.”

“When visiting the factory and then visiting the homes – or model homes – they then compare it with a traditional house, and realize that the best eco-homes when finished meet the standards of Colombian earthquake resistance and are also cheaper,” he said.

Compared to using conventional building materials, the eco-materials reduce the cost of a new home. And the company still makes a profit from it!

In Paraguay, Elsa Zaldivar is using recycled plastic, cotton netting, corn husks, and loofah sponges (http://en.wikipedia.org/wiki/Luffa) to make cheap, lightweight construction panels for housing. This has a double benefit: it makes for cheap housing and it is good for the environment.

“That’s very important in Paraguay,” said Zaldivar, “because we’ve already reduced our original forest to less than 10 percent of the national territory.”

Zaldivar got her experience working with people in the impoverished area of Caaguazú, where in the past she helped with the building of toilets and making stoves. She found that involving local people in this work made a huge difference: “They told me: ‘Now we feel like we’re people with dignity.’”

She encourages local women to grow loofah – a plant that once flourished but was being ignored. While the fruit is edible she was more interested in the crusty sponge that is left over when the plant is dried. The women started a cooperative selling loofah sponges, mats and slippers. But there was a lot of waste in the process, with a third not suitable for export. She then came up with the idea to use the loofahs for wall and roof panels for cheap housing.

Along with industrial engineer Pedro Padros, she developed a way to combine loofah with plastic waste. Padros invented a machine to melt the recycled plastic and mix the molten plastic with loofah, vegetable fibres and chopped corn husks. It has produced a building panel that is lighter and easier to move around than lumber or brick. With a grant from the Inter-American Development Bank, design improvements have been made and the cost-per-panel brought down from US $6 per square meter. It is now competitive with the cost of wood panels. The great thing about the panels is that they can be recycled again when they wear out, completing the cycle.

“To have a decent home liberates people,” said Zaldivar.

By David South, Development Challenges, South-South Solutions

Published: January 2009

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

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Lamas against AIDS

By David South

UB Post (Ulaanbaatar, Mongolia), November 5, 1997

Manila, Philippines – Since HIV is contracted through sex, the disease has always been a difficult subject for the world’s religious leaders. When there is sex to be discussed, no religion can do it without bringing up morality.

This moral debate about bedroom behaviour has tainted discussion of AIDS in many countries. At the extreme end of the spectrum, some evangelical Christian leaders in the US have painted AIDS as an apocalyptic disinfectant for humanity.

Not surprisingly, this attitude has not helped in educating the faithful that AIDS can happen to anyone and its victims should be treated like any other ill person.

The Philippine conference heard that the standoff between the world’s leaders and public health authorities must stop. Dr Peter Piot, executive director of UNAIDS, pointed to the numerous delegates from the world’s religions and called on others to follow their example.

“In Myanmar, the Myanmar Council of Churches, the YWCA and other community-based organizations have joined hands with local authorities, health workers and Buddhist groups for community-based prevention, care and support programmes,” he told the assembly.

“This is the best practice in action.”

Mongolian delegate Dr Altanchimeg thinks a similar approach could work in this country.

“Now every Mongolian goes to see lamas. It’s a good channel to advocate for AIDS education. In Thailand, lamas are very experienced at this. People believe in lamas.”

Like their colleagues in Thailand and Myanmar, Cambodian lamas have been in the forefront of AIDS education.

Lamas there use festivals and ceremonies to raise the issue.

You Chan, a 30-year-old lama from Tol Sophea Khoun monestary in Phnom Penh, likes to raise the issue delicately, by referring to diseases in Buddha’s time.

“I feel it is difficult to speak about sexual methods with a large audience – I will not speak to sexual methods.

“At first, it was very difficult. People would ask why a monk would say such things. But I tried and tried and the people understood who is helping them.

“My message to Mongolia’s lamas is this: you have a moral responsibility to educate the people about AIDS, that it is happening all around the world and there is no medicine to cure it.

“You have to take care in the name of Buddhism to help people in this world.”

You Chan teaches lamas at 15 temples in Cambodia, who pass the message along to other lamas and congregations.

Update: Interestingly, two decades after this story was written, it seems the other kind of llama's antibodies can "neutralize a wide range of circulating HIV viruses". From ScienceDaily: How llamas' unusual antibodies might help in the fight against HIV/AIDS

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Philippine conference tackles Asia’s AIDS crisis

Mongolians attend for first time

By David South

UB Post (Ulaanbaatar, Mongolia), October 28, 1997

Manila, Philippines – More than 2,500 delegates have gathered in the steamy hot Philippine capital to renew the fight against HIV and AIDS.

Working up a sweat alongside other participants at the Fourth International Congress on AIDS in Asia and the Pacific are nine Mongolians – a first that isn’t going unnoticed.

The Congress opened Saturday (October 25) to the pounding beat of a theme song performed by teenagers, championing defiance of death and celebration of life.

That tone was echoed by Dr Peter Piot, executive director of UNAIDS, the Joint United Nations Programme on HIV/AIDS. He said the epidemic can be slowed down with the right public health measures – a positive message for Mongolia as it grapples with an STD crisis that many believe leaves the country at risk of an HIV/AIDS epidemic.

The magnitude of that epidemic outside Mongolia is startling. Around the world, 23 million people are infected with HIV, the virus that causes AIDS. Between 5 and 7 million of them live in the Asia/Pacific region.

“The point is that prevention is feasible,” Piot told the Congress. “The results can be seen in those countries in the Asia-Pacific region where the epidemic has stalled or is in retreat.

“A good indicator for unsafe sexual behaviour is the STD rate. I am impressed at the sustained decline in STD rates in Australia, Hong Kong, Singapore and Thailand over the past decade.

“But I am concerned actual declines in HIV in this region have occurred only in Australia, New Zealand and Thailand.”

The countries to Mongolia’s immediate south and north are experiencing exploding health crises. In China, HIV/AIDS is increasing at a rapid rate due to factors including growing prostitution, drug use and travel – all by-products of a booming economy. The infected population is estimated at 400,000 and is expected to reach 1.2 million by the year 2000, according to China’s national AIDS committee.

To the north in Russia, a complete collapse in the public health system has dramatically slashed life expectancy and led to an upsurge in many diseases, including tuberculosis and HIV/AIDS.

With many Mongolians doing business in both these countries, there are numerous opportunities for AIDS to enter the country.

A wide range of topics is under discussion at the gathering, with women, youth and STD-control measures of particular interest to the Mongolian delegates.

For the Mongolians, the Congress is an opportunity to learn from other countries’ successes and failures in the fight against AIDS.

Mongolia’s nine-member delegation includes four doctors – Dr K. Davaajav, head of the AIDS/STD Department of the Research Centre for Infectious Diseases, Health Ministry representative Dr S. Enkhbat. Medical University director Dr Lkhagvasuren and Dr Darisuren from the United Nations Population Fund.

Also in the team are Democrat MPs B. Delgermaa and Saikhanbileg, UNICEF’s B. Bayarmaa and two representatives from women’s NGOs: S. Tsengelmaa from the Women’s Information and Research Centre and N. Chinchuluun, executive director of the Mongolian Women Lawyers Association.

On Sunday, several presentations focused on the difficulties of getting people to use condoms.

In Fiji, studies found the majority of the population was aware of AIDS and had access to condoms, but still chose not to use them.

Lisa Enriquez, a Filipino woman who is HIV-positive, gave a sobering speech on the epidemic.

“One of the most important things I’ve learned from the epidemic is human nature. AIDS is such a humanizing disease. It reminds us of being human, complete with all the weaknesses and imperfections of being human.

“Let us not kid ourselves: changing behaviour is not easy. One doesn’t change because somebody tells him or her to do so.

“We will need to get our act together, institutionalize our efforts and continue working harder with passion and perserverance.”

The Congress continues until October 30.

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