Turning Street Children into Entrepreneurs

The UN estimates that 500 million people around the world are homeless, and UNICEF estimates India alone has 11 million homeless children on its streets (though it is difficult to pin down the figure). In order to survive another day, these children will work in one way or another. While there are many campaigns to ban children from working, and charities dedicated to getting them off the streets and into shelter, the raw fact remains: many of these children slip through the cracks and remain vulnerable, poor and neglected.

Most street children suffer from malnutrition, hunger, health problems, and abuse. They make ends meet by working various jobs or by stealing. While they have dreams, there is no mechanism for them to save for the future. It is a live-for-now existence that, if they survive to adulthood, means they will probably remain homeless and vulnerable.

Street and working children have money: it is a natural consequence of having to be resourceful to survive. But what they don’t have is access to banking services or trustworthy financial advice that can help them to gain wealth and move out of poverty and into a brighter future.

The Children’s Development Bank in India is one initiative that seeks to turn these neglected children into the next generation of entrepreneurs. The bank works on banking and co-operative principles, where savers are members and joint owners of the bank. Any child can save money with the bank and earn interest, as well as take out loans if they are over 15 years old. It was started in 2001 and was inspired by the Youth Bank in the UK. Interest made by the bank is shared by its members, as with many co-operative banks and credit unions.

The bank is managed jointly by children and adults. The children have a say in how the bank is run and on what conditions it should lend money. They also keep an eye on borrowers to prevent them from running off without repaying loans.

For these vulnerable children, it has many advantages: they can put money aside without fear of it being stolen or lost, save for important things like clothes, or pay for their education.

A key part of the bank’s mandate is helping the children build entrepreneurial skills for business. Mentors help the children choose a business model, select an occupation with minimal risk and more benefits, get training and solve business problems.

The bank has branches in India, Afghanistan, and Sri Lanka.

Ten-year-old Deepak Prahlad, a street child in Delhi, dreams of being a doctor.

“I know what it takes to be a doctor. I need to study hard and need to save a lot of money,” he told the Hindustan Times. For now, he works as a rag picker but has started saving 30 to 40 rupees a day in the Children’s Development Bank. The bank has 1,300 members in the city. It pays 3.5 per cent interest on savings accounts.

“Some of them want to fly very high,” said Rita Panicker, who helped set up the bank in 2001. “We have been working with street children for the past two decades. Some of these children are very talented and have entrepreneur qualities. One of the biggest problems facing these children was that they did not have a safe place to keep their hard-earned money. In fact, it was the children who came up with the idea of the children’s bank. It started with 20 members in 2001 – and now it has 1,300 members in Delhi.”

Sudesh, a 15-year-old manager who looks after the bank’s current accounts, said: “We are extremely careful about whom to offer loans since we do not want to see our members’ savings lost because of bad loans. The skills I have learnt here are going to stand me in good stead in life.” Managers are chosen every six months by the children and they compete for the job.

By David South, Development Challenges, South-South Solutions

Published: November 2007

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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Next Generation of Innovation for the Grassroots

Taking inspiration from science fiction sagas like the TV show Star Trek, the next generation of innovation is already taking shape in the South. A group of innovative facilities called Fab Labs (short for Fabrication Laboratory) in Ghana, India, Kenya, South Africa and Costa Rica are applying cutting-edge technology to address the everyday needs of people.

Like the futuristic “replicator” in Star Trek, Fab Labs allow people to design and produce what they need there and then. The labs are mushrooming throughout the South as people get the innovation bug.

Originally an idea from the Massachusetts Institute of Technology’s Center for Bits and Atoms, which sponsors nine of the labs, Fab Labs let people use digital technology to build physical objects, from eyeglass frames to toys and computer parts. Fab Labs empower local invention by turning education, problem-solving and job creation into a creative process.

Started by Professor Neil Gershenfeld, Fab Labs use US $20,000 worth of computers, open source design software, laser cutters, milling machines and soldering irons, letting people harness their creativity to build things they need, including tools, replacement parts and essential products unavailable in the local market.

With minimal training, children and adults are designing and making their own toys, jewellery and even computer circuit boards with the machines. It turns people from consumers into inventors.

“Instead of bringing information technology to the masses, the Fab Labs bring information technology development to the masses,” said Gershenfeld.

In Ghana, the Takoradi Technical Institute in the southwest of the country hosts a Fab Lab, allowing a wide variety of people to use the “replicator” – from local street children to tribal chiefs – to make a wide range of products. The Ghana lab has several projects on the go, including antennae and radios for wireless internet networks and solar-powered machinery for cooking, cooling and cutting. The labs have found that the younger the users, the faster the skills are picked up.

John Silvester Boafo, principal at the Takoradi Technical Institute, is proud of what he calls a fu-fu pounder. “In a Ghanaian home, the main dish is fu-fu,” he told the BBC. “Fu-fu is made of plaintain and cassava, which are cooked. After they are cooked, they are put into a mortar and pounded by hand. People go through hard labour just to get a meal to eat. So, we thought we could fabricate this machine to alleviate the hard labour they use in pounding.”

They are also working on portable hand-held chargeable solar panels for televisions and refrigerators.

In Pabal, in the western part of Maharashtra, India, a Fab Lab was established at the Vigyan Ashram in 2002 and is now working on developing agricultural instruments. They are also testing milk for quality and safety, and tuning diesel engines to run more efficiently, especially with bio fuels. Another lab in Bithoor in the state of Uttar Pradesh (operated with the Indian Institute of Technology, Kanpur) is working on 3-D scanning and printing for rural artisans, such as producing wooden blocks used in Chikan embroidery.

In South Africa, officials are in the process of setting up four labs. The first is in the capital Pretoria, home to Africa’s first “science park”. The second is in the township of Shoshanguve, a very poor community with high unemployment.

“We have these very high-tech small start-up companies that are excited by the proximity of the lab,” said Sushil Borde, head of the government agency charged with rolling out the four labs. “The companies say, ‘We have these brilliant ideas, we have these business models, but we don’t know how to get these ideas into tangible products.”

Borde hopes the network of Fab Labs will enable South African entrepreneurs and engineers to test their ideas and “fast track the process of growth and development.”

Seventeen-year-old Kenneth Chauke has been able to build a robot in the Fab Lab in Pretoria, he told the Christian Science Monitor.

IT supervisor Nthabiseng Nkadimeng at the Fab Lab in Shoshanguve, has been encouraging South African youth to dream expansively about new technology. “We want to encourage innovation,” she told the Christian Science Monitor. “A lot of the kids, right now, they’re making toys. That’s okay, it’s a start. But eventually we want them to do things that haven’t been done before.”

“It’s the idea that if you’re somewhere in rural South Africa, and you want something for solar energy, you can go to a Fab Lab and make your own,” said Naas Zaayman, who works for the government on coordinating the Fab Lab strategy.

By David South, Development Challenges, South-South Solutions

Published: October 2007

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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Ecotourism to Heal the Scars of the Past

The legacy of underdevelopment during the communist era in parts of Eastern Europe is now being seen as an advantage in the global tourism trade. Well off the beaten path for tourists, areas as diverse as Chechnya and Romania are working to turn their rustic rural hinterlands into a strategic advantage in grabbing the market for ecotourists. Ecotourism – tourism that takes people to fragile and beautiful areas – is one of the tourism industry’s fastest growing areas.At stake is the lucrative and ever-growing world tourism market. Global tourist arrivals passed 800 million in 2006, with tourism in the world up by 5.5 per cent (World Tourism Organization), earning US $680 billion globally. In 1993, just seven per cent of travel was nature tourism; that share has now passed 20 per cent.

Romania, now a member of the European Union, boasts rural countryside like Europe of old: all hillsides are common land and there are no walls or fences to impede the view. Life is heavily dominated by agriculture and the rhythms of farm life.

Southern Transylvania is a high plateau of wooded hills and valleys and shielded by the Carpathian Mountains.

“The Carpathians of central and eastern Europe,” said Achim Steiner, head of the UN Environment Programme, “are among the world’s richest regions in terms of biodiversity and pristine landscapes. I have no doubt that the Carpathians, like the Alps, the Himalayas and the Rocky Mountains, will become world famous for walking, hiking, climbing, wildlife watching, photography and similar leisure pursuits.”

In order to preserve this way of life and generate income, various schemes are encouraging low-key tourism. This takes the form of renovating decaying farm buildings for guesthouses. The guesthouses are kept clean and simple and the focus is on typical local food like hearty stews and soups and pork sausages.

Much of this has been paid for by the Mihai Emenescu Trust, a charity seeking to preserve the traditions of the Saxon villages.

Patrick Holden of the Soil Association, a patron of the Mihai Eminescu Trust, thinks the organic agricultural methods of the local farmers could be a model for the rest of Europe.

Romania is also part of the Organization for Black Sea Economic Cooperation (BSEC), which is taking the lead in promoting ecotourism as an economic development option.

Ex-communist nation Bulgaria has also turned to ecotourism, launching its “Ecotourism: Naturally Bulgaria” campaign in September.

Even the once-war-torn Russian republic of Chechnya is trying to radically re-shape people’s perceptions. It is hard to believe, but the former site of a bitter civil war that left the capital Grozny in ruins now wants to be Russia’s Switzerland.

Shatoy region in southern Chechnya, during Soviet times, saw 20,000 visitors every month to ski, ride horses, and hike in the Caucasus Mountains. The new government plans to spend UK £40 million on new hotels, reconstructing old holiday camps, building spas and health centres. The region’s head of government, Mr Khasukha Demilkhanov, is confident that natural beauty can compete with the West: in the Argun Gorge, he pointed out to the Guardian newspaper, the scene is reminiscent of a 19th century woodcutting. Stone towers litter the hills, alpine meadows are full of wild flowers, the mountains are snow-capped and new roads have been built.

The Chechens hope to start with Russian holidaymakers and extreme tourists from the West, before moving more into the mainstream market.

By David South, Development Challenges, South-South Solutions

Published: October 2007

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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Saving Water to Make Money

The world’s water supplies are running low, and according to the World Health Organisation (WHO), four out of every 10 people are already affected. But despite the gloomy reality of this problem, entrepreneurs in the South are rising to the challenge to save water.

“The situation is getting worse due to population growth, urbanisation and increased domestic and industrial water use,” said WHO’s Director-General, Dr Margaret Chan. While the WHO has adopted the theme ‘Coping with Water Scarcity’ for this year, every year more than 1.6 million people die from lack of access to safe water and sanitation. Ninety percent of these deaths are children under the age of five.

The health consequences of water scarcity include diarrhoeal diseases such as cholera, typhoid fever, salmonellosis, other gastrointestinal viruses, and dysentery.

One unnecessary waste of water is car washing. The number of cars in developing countries is growing fast, with a 27 per cent increase in sales in China this year, and South America overtaking Asia as the world’s fastest-growing regional vehicle market (Global Auto Report). And all these cars will be washed, wasting this precious resource.

The large informal car washing market in Brazil has long been known for paying low wages and avoiding taxes. On top of this they also waste water. Lots and lots of water. In Brazil, 28.5 per cent of the population (41.8 million people) do not have access to public water or wastewater services. And 60 per cent do not have adequate sanitation (Brazilian Institute of Applied Economic Research).

Started in 1994, Drywash uses a locally available Brazilian organic carnauba wax to clean cars without using water. Drywash has also developed a line of cleaning products that cleans every part of a car without the need for water. They estimate they have saved 450 million litres of water in their first 10 years of operation. From the start, they set out to change the status quo and run a business that “thinks like a big corporation,” said its international partner, Tiago Aguiar.

To do this, Drywash’s management team focused on operating an efficient and professional business. When Brazil’s government passed strict laws against informal selling of products, Drywash was well positioned to benefit, with companies preferring to work with a legal business. Customers have also been attracted to Drywash because they know the service is consistent and to a high standard. Drywash made US $2.7 million in 2005.

Drywash prides itself on operating “on the books”, and paying taxes. They are also ambitious, and have expanded outside Brazil and into other services.

And they don’t just do private cars: they also clean private jets, with Drywash Air. They have also expanded into Mexico, Portugal and Australia, on top of 50 Brazilian franchises. They also want to enter the US market.

In China, Landwasher toilets is tackling the growing problem of providing flush toilets to the country’s 1.32 billion people. As its founder Wu Hao told the World Resources Institute (www.nextbillion.net), “Assuming all of our country uses water-flushing toilets, not even the Changjiang and the Yellow Rive will be enough.”

Formed six years ago, it has patented a process using a special agent and sterilisation to dispose of human waste without using water, and very little electricity.

Hao graduated from Beijing University’s Physics Department and developed management experience working in manufacturing, securities investment and corporate management.

“On a personal level, I love the natural environment… I can’t endure the large scale waste and damage to the environment caused by the process of construction in China.”

Landwasher has seen its sales grow to 40 million Yuan (US $5.2 million), and has six sales offices covering 27 provinces.

Landwasher has just been awarded a contract to provide portable toilets to the 2008 Olympics in Beijing.

By David South, Development Challenges, South-South Solutions

Published: September 2007

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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Making the World a Better Place for Southern Projects

Good ideas are plentiful, but how to fund life-improving projects has always been a thorny issue. Judging how effective a project is can also be fraught with debate and contention. Over the past two decades, the number of NGOs in the global South has exploded (http://lboro.ac.uk/gawc/rb/rb144.html). The best of them offer the local knowledge and understanding required to make development gains. But unlike NGOs in the North, many lack the powerful fundraising capabilities of the big global NGO brands.

An exciting new initiative based in Germany, but already featuring hundreds of projects from across the South, is using the power of the internet to directly connect projects and donors.

Joana Breidenbach, an anthropologist, author and co-founder of betterplace.org (www.betterplace.org), says NGOs are emerging in India and other countries of the South to challenge the big Northern global NGOs.

“Why wouldn’t you want to donate to these Southern NGOs? There are more entrepreneurs and local approaches which are better.

“Betterplace gives local institutions a platform to express themselves.”

Started in 2007, betterplace is an online marketplace for projects to raise funds. It is free, and it passes on 100 percent of the money raised on the platform to the projects. The foundation that runs betterplace supports its overheads by offering additional services that people can pay for if they wish. It works in a way similar to the online marketplace eBay (http://www.ebay.com): NGOs post their project, set up an account, blog about their achievements and successes and needs, and receive donations direct to their bank account when they come in.

Breidenbach points out up to a third of any NGO’s income is spent on fundraising. In Germany, that represents more than Euro 1.3 billion out of over Euro 4 billion in private donations – money that could have gone directly into the hands of the people needing help.

With betterplace, donators can surf through the projects and pick the one they want. Already, more than 100 large corporations trawl through betterplace seeking projects to fund to meet their corporate social responsibility (CSR) obligations (http://en.wikipedia.org/wiki/Corporate_social_responsibility).

“I find it very exciting to introduce a good and innovative NGO to a corporate sponsor,” Breidenbach said.

Breidenbach says betterplace’s ultimate goal is “to transfer the donation market online.” It hopes to change the rules in donation and charity in the same way blogs and the search engine Google changed the way people publish and search for information.

“This provides better transparency, feedback,” Breidenbach said. “Now (with betterplace) donors and organizations can cut out the middlemen. A lot of established organizations do not like this too much.”

Over the past decade, new concepts like social entrepreneurs and venture philanthropy have emerged to straddle the delicate line between social good and private profit. Betterplace joins this wave of new thinking about how to do development better.

In the 20 months since betterplace went online more than 1,500 projects have joined. They are now averaging between 20 to 35 new projects joining every week.

Betterplace is a simple open-plan office on the top floor of a Berlin warehouse beside the city’s Spree river. The small team (http://www.betterplace.org/about_us/team) work on laptop computers. A blackboard on the wall details in bright colours a running tally of the projects that have joined.

Breidenbach gives the example of a mother in Cameroon who is using betterplace to raise the school fees for her children. The mother blogs about the children’s progress and has been able to raise the fees for a year and a half.

“People are now directly connected to somebody in need.”

“Right now the functionality (of the website) does not allow people getting in contact publicly and we want to enable this knowledge transfer in 2010. If you want to build a well in Cameroon then you could search for the best technology and to contact other people who are doing similar projects to learn from them.”

Success on betterplace is by no means certain. “The experience of the project managers has been as varied as development work is – some have done really well, raising thousands of Euros over the website – others have received no funding at all,” Breidenbach said.

But betterplace provides tools to give the projects the best chance possible. “Projects can present their work, breaking it down in a transparent way (in order to let supporters know exactly what is needed for their realization), there are sound payment processes in place and project managers can give feedback through their project blog, supporters can download project widgets etc., all supplied free of charge.”

Breidenbach has other tips for making betterplace work for a project: post details in English when creating a profile, break down the project into much smaller, low-cost goals (few people are willing to make large donations) – this also has the advantage of receiving payments straight away when they are small. Tell a good story about the project, and try and use actual testimonials from the people affected. Blog and update regularly with photos and videos to keep people engaged. Also avoid copying and pasting text from a previous grant application.

“We have the numbers to show that projects which give regular feedback and have a lively web of trust receive more donations than others, which are not very active.”

“Don’t think you can just go on to betterplace and the money starts rolling in,” said Breidenbach.

The betterplace platform places all projects seeking funds on the same level, allowing individuals and small NGOs to compete equally with the big, branded global NGOs with their websites and sophisticated fundraising operations.

“All the big NGOs have their own websites,” continues Breidenbach. “But it is the small initiatives that often don’t have a website or know how to use Pay Pal etc. (http://www.paypal.com). We are very useful for smaller NGOs.”

“Another big advantage is that we are a real marketplace: whatever your interests (as a potential donor), you will find a project tackling this issue on the platform.”

But what about fraud and people seeing betterplace as a coin-making machine rather than a way to make the world a better place?

“We have a feeling for dodgy projects. We check the IP address. We have a number of trust mechanisms in place (and are currently working on enlarging them). Thus projects on betterplace can create trust through their good name … But we also include something which I would call network-trust: In our web of trust different kinds of stakeholders of an organization or a project have a voice and can publicly state what they think of it. Thus beneficiaries of a project can say if the project has done them good or has been counterproductive, people who have visited the project on the ground can describe what they have seen etc. … we hope to give a much denser and more varied impression of social work and give donors (a terribly badly informed group of people), the basis for a much more informed choice.

“If a contributor to a project is dissatisfied with the project’s outcome … she can either directly contact the project manager via betterplace, or openly voice her concern on the project page for other potential donors to see her views.”

For now, betterplace is still only useful to people who have access to the internet and have a bank account (necessary for the money transfers). But in the future betterplace hopes to have mobile phone interactivity and more features to expand who they can reach.

“We are also re-working our site to make it more intuitive and easier to use for people without computer skills,” Breidenbach said. “In the pipeline is also a knowledge backbone, enabling people to access knowhow about development and social innovation issues and exchange views and experiences. This will be very useful for projects in the South as so many people are working on the same issues without knowing about it. They could learn a lot from each other, without the “help” of the north.”

With internet broadband in Africa set to take off, according to the report Africa Connect: Undersea Cables to Drive an African Broadband Boom (http://www.pyr.com/downloads.htm?id=5&sc=PR090309_INSAME1.6), even more people will soon be able to make the most of initiatives like betterplace.

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.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=uXWUyfb4MacC&dq=development+challenges+september+2009&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsseptember2009issue

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

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