Global South Experiencing Transportation Revolution

Away from the news headlines, a quiet revolution has been taking place in public transportation across the global South. As cities have expanded and grown, they have also been putting in place public transport systems to help people get around and get to work.

One proven, efficient way to move large numbers of people quickly through dense urban areas is to use underground subway or metro systems. Subway systems have a profound effect on local economies and wealth creation. They allow people to quickly cover distances that may once have meant hours stuck in traffic. Once people can move around a city quickly and over large distances, they can change how they work, shop, enjoy themselves. It allows people living in poor outlying neighbourhoods to travel to jobs in the city centre, improving their income prospects.

As many countries in the global South have enjoyed healthy growth rates despite the global economic crisis, and with the global financial system being flooded with stimulus funds to spur growth, the resources have become available to invest in expensive and long-term public transport solutions such as metro systems. Another factor is the scale of urbanization in the global South, which is driving governments to turn to new solutions that will help in avoiding the mistakes made in the past.

The world’s first urban underground railway system was built in 19th-century London, England. It was the product of a country that had been experiencing rapid, large-scale industrialization and urbanization unseen before in human history. Since then, the now 150-year-old London Underground (http://www.tfl.gov.uk/modalpages/2625.aspx) has acted as the arteries coursing through the city’s economic body, criss-crossing the city and delivering millions of people to work and play every day. It is now impossible to imagine Britain’s economy functioning without this efficiency tool.

Now, as the global South engages in the greatest urbanization project in human history, more cities are turning to underground metro systems to keep people, and the economy, moving. Lessons have been learned from the first generation of global South cities, which expanded rapidly in the 1960s, 1970s and 1980s. Many became quickly clogged in traffic and cloaked in pollution, and saw economic opportunity and social mobility slowed down as a consequence.

Three of the biggest metro systems in the world are now in China – Beijing, Shanghai and Guangzhou (The Economist). Beijing (http://www.explorebj.com/metro/) has a metro system stretching 442 kilometres and is used every day by 5.97 million people. By 2020, Beijing is hoping to boast 1,000 kilometres of metro network in the city. In Shanghai (http://www.shmetro.com/EnglishPage/EnglishPage.jsp), the 423 kilometre metro system carries 5.16 million people every day, while Guangzhou (http://www.gzmtr.com/en/) carries 4.49 million people a day.

From the 1960s, the building of metros increased around the world. More than 190 cities now have metro systems. In China, Suzhou (http://www.livingsu.com/guide_detail.asp?id=7), Kunming (http://www.urbanrail.net/as/cn/kunming/kunming.htm) and Hangzhou (http://www.urbanrail.net/as/cn/hang/hangzhou.htm) opened metro systems in 2012. Elsewhere in the global South, Lima in Peru and Algiers (http://www.metroalger-dz.com/) in Algeria recently acquired new metro systems. This means Africa now has two cities with metro systems – Algiers and Cairo in Egypt.

In India, Bangalore opened a metro system two years ago and Mumbai is close to finishing its metro. Bhopal and Jaipur also plan to build metros. In Brazil, the metros in Sao Paulo and Rio de Janeiro are being expanded and new systems are being built in Salvador and Cuiaba. In the Gulf states of the Middle East, Dubai (http://dubaimetro.eu/) opened a system in 2009 and Mecca (http://meccametro.com/) in Saudi Arabia in 2010. Abu Dhabi, Doha, Riyadh and Kuwait City are also working on building metro systems.

Paraguay’s capital, Asuncion, is working on one, as is Kathmandu in Nepal. Jakarta in Indonesia has attempted to build an underground metro several times and is now trying to getting one built.

But how are many of these countries funding this splurge on metro systems? According to Roland Berger Strategy Consultants (rolandberger.co.uk), global government stimulus programmes to fight the current financial crisis have increased available funding for rail systems. There are also increased resources available for transport solutions that avoid the high pollution rates that come with automobiles.

According to Mass Transit Magazine, China is using domestic consumption and increasing urbanization to spur economic growth and is hoping to increase investment in metro systems in the country by 10 per cent per year.

The target is to spend 280 billion yuan to 290 billion yuan (US $44.91 to US $46.51 billion) on metro systems in 2013, up from 260 billion yuan in 2012.

The knock-on economic boost will be felt by domestic businesses as trains and train systems are purchased. It is estimated sales of Chinese-made trains will go from 10.9 billion yuan in 2012 to 28 billion yuan by 2017.

All this new building will expand the country’s metro lines by 846 kilometres in 24 cities.

Ten Chinese cities are expecting soon to receive permission to begin work on building new metro systems: Xian, Tianjin, Chongqing, Chengdu, Hangzhou, Ningbo, Kunming, Tsingdao, Wuxi and Dongguan.

In 2013, 12 Chinese cities will complete new metro systems including Harbin, Changsha, Ningbo and Zhengzhou.

If this trend continues and expands, then the future cities of the global South could be modern, urban places that raise living standards, while avoiding damaging human health with environmental pollution and over-crowding and social exclusion.

By David South, Development Challenges, South-South Solutions

Published: February 2013

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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Help is at Hand for India’s Beleaguered Bus-riders

The website is a simple affair: a distinctive logo sits above a lean-looking booking system that allows users to enter their journey start and end destination, date and then click for available buses and prices. Its simplicity is deceptive: redBus is a smart technological solution to a very complicated problem in India: booking and buying a bus ticket. The service it offers – relief from a chaotic, frustrating and time-consuming task – is transforming the experience of travel in India.

Based in India’s technology hub of Bangalore (http://en.wikipedia.org/wiki/Bangalore), redBus (redbus.in) is a web start-up begun by young whizzes from technology companies who decided to take a risk and venture out and do something new.

Back in 2005, redBus’ three founders, all graduates of one of India’s top engineering schools, were working in Bangalore for well-known information technology companies such as IBM, Texas Instruments and Honeywell.

As they tell the story on their website, it was the difficulty of getting a bus home during the Hindu religious festival of Diwali that prompted the inspiration. The trip was a last-minute decision, and buying bus tickets proved far from easy. On top of failing to get a ticket from various travel agents, journeying around Bangalore meant encountering the city’s traffic gridlock.

This experience led to the idea of developing a service to book bus tickets over the Internet.

RedBus quickly evolved into an innovative service offering multiple options to customers. They can call a phone number and speak to a customer service representative or use a mobile phone to book a ticket. RedBus claims to have sold more than 8,000,000 tickets to date.

Tickets are also delivered to customers in major cities in advance of their travel. Even more conveniently, redBus developed a service called mTicket. It sends the ticket by SMS (mobile phone text message) straight away when a customer makes a booking. The mTicket appears on the display screen of the mobile phone and the customer just has to show their mTicket to the driver to board the bus.

RedBus uses partnerships to expand their distribution network, and this means redBus tickets can be purchased at more than 75,000 outlets. The company now works with more than 350 bus operators, allowing customers to book tickets on more than 4,500 routes across India.

The service set out to achieve two goals: create a one-stop shop for ticket purchases, and to make it possible for customers to get tickets when they needed them and not be told they have been sold out.

Indians were already having success with booking airline tickets online. But nobody else had thought of doing central, online sales for bus tickets before.

Research was behind redBus’ success. The founders interviewed bus operators, consumers and venture capitalists before setting up the business.

They then set about writing the code for the Internet service and put together a business plan and presented it to The Indus Entrepreneurs (TiE) (tie.org) – a network of mentors who help young entrepreneurs. With the support in place, they were able to leave their well-paying, secure jobs to start redBus.

Among the many challenges they faced was changing the mindset of bus operators used to dealing only with travel agents working out of sales offices.

It also took time for the concept to take off. But as word-of-mouth got around, more people started to use the website. The young team grew from just three to 50 within nine months.

Their business success, as they describe it, is the result of listening to, and soliciting feedback from their customers. They say it has helped them identify what is going wrong and fix it, and describe their business culture as “learn, implement, grow.” They also have a culture of sharing ideas and mistakes to encourage learning. It seems it is this buzzy, youthful and always-learning business culture that is behind redBus’ success.

By David South, Development Challenges, South-South Solutions

Published: April 2012

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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Cyber Cities: An Oasis of Prosperity in the South

The future is arriving in the South even faster than many think: so-called “cyber cities” are being created to become this century’s new Silicon Valleys. Well-known ‘cyber cities’ like India’s Hyderabad and Bangalore have been joined by many other cities across the global South. But two places are set to make big waves with their ambition and drive in 2008: Mauritius and China.

Mauritius, an island in the Indian Ocean strategically close to Africa, better known for tourism and luxury hotels, wants to become the world’s “cyber island”. Armed with the first 3G network in Africa (the third generation of mobile phone technology – offering high-speed internet access and video telephony), Mauritius is moving fast to make good on this advantage. And it is even moving to the next level of mobile-phone speed, something called High-speed Download Packet Access (HSDPA) – allowing even greater quantities of information to be exchanged.

Mauritius joins a select few countries, including Japan and South Korea, at the forefront of access to 3G. Wireless – or wi-fi – computer access is available in three-quarters of the island.

Outside the capital of Port Louis, former sugar cane plantations are being turned into a “cyber city”. The centrepiece of the development is the 12-story Cyber Tower, home to young technology start-ups. The country is also investing heavily in education from primary school to university, to make sure the country’s 1.2 million people are cyber-ready.

Computer novices in remote villages are being visited by a Cyber Caravan with a classroom teaching housewives, children, the unemployed and the disabled basic computing and world processing.

Mauritius built its wealth on tourism, sugar plantations and textile manufacturing. But it is worried that trading arrangements that helped the sugar and textile industries to flourish, will be taken away. So it is focusing on the future: it sees itself as the world centre for disaster recovery computing services for the world’s companies in event of a disaster in their own country that destroys computer networks.

In China, its largest Cyber Park is under construction in Wujin New and High-tech Development Zone of Changzhou. It will be a technology incubator, a research and development centre, and a place for small and medium-sized enterprises to innovate.

What is truly making people stop and think is another far-reaching project: the Beijing Cyber Recreation District (CRD) – China’s most ambitious digital media industry development: a virtual worlds’ initiative with digital media academies and company incubators. It is spread over 100 square kilometres, creating the world’s largest virtual world development. It is already home to more than 200 game and multimedia content producers in western Beijing.

The CRD says its goal is “to create a virtual economy providing infrastructure and platforms through which any business – not just those based in China – can come in and sell their real-world products and services. While a concerted effort will be placed on bringing Chinese businesses and consumers in, the effort is worldwide and open to businesses and consumers from any country.”

The idea is to create a vast virtual economy for commerce where manufacturers can directly connect with billions of customers – bypassing middlemen.

It claims it will be “the world’s one-stop shop for customers and producers.” It will host billions of avatars – or virtual people – surpassing the capability of the very popular Second Life virtual world game’s 40,000.

By David South, Development Challenges, South-South Solutions

Published: January 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

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