Recycling Waste to Boost Incomes and Opportunities

We all know that green is good, but often the best way to encourage recycling and other environment-improving activities is to put in place economic incentives. It is one thing to admonish people and tell them something is the right thing to do; it is another to make keeping a clean environment pay.

Many initiatives across the global South have proven it is possible to develop an economy of recycling and garbage collection in poor neighbourhoods. These economies take many forms and models.

At the most basic end of the scale are the desperate, survival-driven examples of recycling. In countries likeIndia, recycling can be purely a question of survival – people are so poor they can’t allow anything that might have income potential go to waste. Other countries are very familiar with large numbers of desperately poor people picking through garbage dumps and waste to eke out a living. Or, for example inBrazil, as in many other countries, it’s common to see poor and homeless people picking through garbage on the streets.

These are examples of degrading ‘green’ economies. But there other ways to encourage waste recycling that offer real income benefits and life improvements.

Brazil, a world leader in waste recycling and green technologies, has pioneered the recycling of plastic bottles, aluminum, steel cans, solid plastic waste and glass. And now energy companies inBrazilhave created credit schemes that encourage waste recycling while giving people real economic benefits in return for doing the right thing for the environment. The first scheme went so well, it quickly inspired others to replicate its programme in other poor communities.

Coelce (http://www.coelce.com.br/default.aspx) is a power company in the Ceará State in northeastern Brazil. The company is primarily engaged in the distribution of electrical power for industrial, rural, commercial and residential consumption. In 2007 it set up Ecoelce (http://www.coelce.com.br/coelcesociedade/programas-e-projetos/ecoelce.aspx), a programme allowing people to recycle waste in return for credits towards their electricity bills. The success of the programme led to an award from the United Nations.

The programme works like this: people bring the waste to a central collection place, a blue and red building with clear and bright branding to make it easy to find. In turn they receive credits on a blue electronic card – looking like a credit card – carrying a picture of a child and arrows in the familiar international recycling circle.

These credits are then used to calculate the amount of discount they should receive on their energy bill. The scheme is flexible, and people can also use the credits for food or to pay rent. In 2008, after its first year, the scheme had expanded to 59 communities collecting 4,522 tons of recyclable waste and earning 622,000 reais (US $349,438) in credits for 102,000 people. People were receiving an average of 5 to 6 reais (US $2.80 to US $3.37) every month towards their energy bills.  A clear success leading to an expansion of the scheme.

Now in Ceará’s state capital, Fortaleza (http://en.wikipedia.org/wiki/Fortaleza), – population 3.5 million – there are more than 300,000 people recycling a wide range of materials, from paper, glass, plastics, and metals to cooking oil to get electricity discounts, according to the Financial Times.

In Brazil’s second largest city, Rio de Janeiro, a favela clean-up programme is being run by electricity firm Light S.A. (http://www.light.com.br/web/tehome.asp), which took its inspiration from the success of the Ecoelce experience.

The number of favelas, or informal slum neighbourhoods (http://en.wikipedia.org/wiki/Favela), in Rio is debated: according to the federal government, there are 1,020 favelas, while Rio’s housing department lists 582. The government has been trying to tackle the law and order problems in these neighbourhoods – many are plagued with violent drug gangs – and endemic poverty. It calls this programme “pacification” (http://brazilportal.wordpress.com/2011/10/20/rios-top-cop-talks-public-safety-policy-favela-pacification-program/) as it tries to bring law and order and boost economic development and social gains.

Recycling programmes are helping to bring improvements to life in the favelas by simultaneously cleaning up neighbourhoods and boosting household wealth.

Light S.A. is a Brazilian energy company working in the generation, transmission, distribution and marketing of electricity. It distributes to 31 municipalities inRio de Janeiroand has around 3.8 million customers.

According to the Financial Times, the Light project pays residents 0.10 reais per kilogram of paper and plastic (US .5 cents). It also pays 2.50 reais per kilogram of aluminum and lead (US $ 1.40).

Importantly for community relations, the scheme is open not just to favela residents but to nearby middle class neighbourhoods.

“The idea is to unite the community and the people living around it,” Fernanda Mayrink, Light’s community outreach officer, told the Financial Times.

The project has helped improve theSanta Martafavela ofRio, where police have been working since 2008 to take back the neighbourhood from the control of violent drug gangs. Community police officers can now do their job of taking care of safety for the 6,000 residents.

“You don’t see drugs and guns any more but you do see lots of rubbish,” Mayrink said.

“This project encourages recycling within the company’s concession area and at the same time contributes to sustainable development and the consumer’s pocket. Light wins, the customer wins (and) the environment wins.”

In Vietnam, the NGO Anh Duong (http://www.anhduonghg.org/en/) or “Sun Ray” shows schoolchildren how to collect plastic waste to sell for recycling. In return, their schools receive improvements and the students can win scholarships. It is estimated ruralVietnam is littered with 100 million tons of waste every year. Much of it is not picked up.

The project is operating in 17 communities in Long My and Phung Hiep districts in southernVietnam, mobilising children from primary and secondary schools. School children wearing their uniforms fan out in groups and collect the plastic waste. The money made from selling the plastic waste is being used to improve school facilities and fund scholarships for poor children.

In 2010, the project reported that 10,484 kilograms of plastic waste was collected by 26,015 pupils. This provided for 16 scholarships for school children.

The Anh Duong NGO was set up by a group of social workers with the goal of community development. They target the poorest, bringing together the entire community and seek out “low cost and sustainable actions”. The NGO has a mix of specialties, from agriculture to aquaculture, health, microfinance and social work.

By David South, Development Challenges, South-South Solutions

Published: November 2011

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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Banning of Plastic Bags and Containers Brings New Opportunities

 

This month, Uganda bans plastic bags, outlawing their import, manufacture and use and joining a growing list of African countries seeking to sweep cities of this menace. Uganda’s ban follows similar moves in Kenya and in Tanzania, where even plastic drinks containers will soon be banished. Rwanda, also a member of the East African Community, has gone further – in 2005 the country banned any products made of very thin plastic below 100 microns. The thinner plastic found in plastic bags (under 30 microns) is particularly troublesome because it is easily blown around by the wind. The proliferation of plastic bags and plastic containers across the developing world has not only become an eyesore, it is also an environmental catastrophe that is poisoning the land.

In Uganda’s capital, Kampala, discarded plastic has combined with toxic waste management practices to make the problem worse. While Kampala has 30 companies dealing in solid waste management, the process is mired in corruption. Poor areas of the city receive no service because it is more profitable for the companies to target wealthy areas for the user fees they collect to remove rubbish.

Scavengers in the municipal dump of Kampala earn 50 Ugandan pence a day collecting plastic bags. Most plastic bags do not make it to the dump, ending up blown around the city by the wind, washed into drains and water courses. Worse, the rich soil around Uganda’s towns and villages is now covered in plastic bags. A new layer of polythene and contaminated soil has formed in many areas, with an impenetrable crust that stops rain from soaking through. It leaves water stagnating in pools gurgling with methane gas bubbles.

For entrepreneurs, tackling the mountains of plastic waste is an opportunity – as is providing a replacement once they are banned. A boon time is emerging for the market in recycled and reusable materials and biodegradable alternatives.

The So Afr-Eco Community Upliftment Project for Rural Women in South Africa is a common example. A project that proves money can be made from recycling discarded plastic bags into useful items. Based in the Obanjeni district in Kwazulunatal, it was founded by Jenny Kirkland, who was disgusted with the proliferation of plastic bags littering South Africa’s countryside. She decided to do something that would also hire rural women and give them an income. The plastic bags are cut into strips of twine and then woven together to make hats, bags, doormats and waistcoats. Run as a for-profit business, it now employs 132 families and exports products to 19 countries, including Australia, the USA, the UK, Canada, Sweden and Poland. South African schools are now provided with sun hats and companies order hats for use at conferences. The profits made from sales are significant by local standards. For example, the sale of one beach bag can feed a small family for two weeks, a hat feeds a family for a week, and a doormat for a month.

Anita Ahuja, president of the NGO Conserve, has set up a business making fashionable handbags, wallets and shopping bags from recycled plastic bags in New Delhi, India. Begun in 2003, the project collects plastic bags on the streets and keeps 60 women employed. The recycling process does not require additional dyes or inks and is non-toxic. The bags are sold in London, UK and will soon be sold in Italy by the Benetton clothing chain.

“We braided them and tried weaving them, but the plastic would come loose. Then we hit upon the idea of pressing them to make sheets,” Ahuja said.

But this issue can be more complex than it first seems. After South Africa banned plastic bags of less than 30 microns in 2003, many poor entrepreneurs have complained that it hit hard their making of hats, handbags, purses and scrubbing brushes from them – something that had become a good livelihood.

After the bags are banned, environmentalists say the best option is to use reusable bags made of materials that don’t harm the environment during production and don’t need to be discarded after use.

Alternatives to plastic bags include traditional African baskets or kiondos as they are known in Kenya. Made from sisal and sometimes with leather or wooden handles, the handmade bags support many local women (http://www.propoortourism-kenya.org/african_bags.htm).

In Kenya, entrepreneurs have also stepped in to offer alternatives to plastic and kiondos. Supermarkets and shops in the country distributed 11 million plastic shopping bags a year, so Joseph Ayuka of Greensphere Enterprises has begun to market cotton bags for their easy portability. “People don’t want to carry bulky bags to the supermarket”, he said.

By David South, Development Challenges, South-South Solutions

Published: July 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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Like this story? Here is a dirty secret: this website is packed with stories about global South innovators. We spent 7 years researching and documenting these stories around the world. We interviewed the innovators to learn from them and we visited them to see how they did it. Why not use the Search bar at the top and tap in a topic and see what stories come up? As for my work, I have been involved with start-ups and media ventures since the early 1990s. While most tech entrepreneurs were either still in their nappies in the 1990s (or just a drunken night away from being conceived in the 2000s), I was developing content for this new thing they called the "Internet". In the years since I have learned a great deal about innovation and digital and have shared these insights in the stories on this website as well as in the 5 issues of Southern Innovator magazine. So, stick around and read some more!    

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The Ethics of Soup: Grading Supermarket Shelves – For Profit

By David South

This Magazine (Canada), March-April, 1993

Where social activists have tried and failed to get Canadian corporations to change their behaviour towards the environment, labour, women and minorities, EthicScan Canada – a for-profit consulting and research firm – steps in.

Toronto-based EthicScan acts as a consultant on ethical issues to both government and private businesses and produces a guide for investors. Its latest project hit the bookstores last fall. The Ethical Shopper’s Guide to Supermarket Products rates products according to companies’ ethical performance. “EthicScan is the only company in Canada doing this,” says senior writer Joan Helsen. “Companies respond to us differently because we are – like them – a business. We have a very good reputation for doing strong research and presenting the facts.”

Non-profit groups have produced similar guides. In the US, perhaps the best known is the American Council on Economic Priorities’ Shopping for a Better World. Here in Canada, both Pollution Probe’s Green Consumer Guide and the Ontario Public Interest Research Group’s The Supermarket Tour offer educational information.

But The Ethical Shopper’s Guide is the first guide in Canada to give a product-by-product breakdown, and to detail the web of corporate ownership. It lists more than 1,200 brand-name products from baby food to soft drinks, with the manufacturer’s “grade” for each ethical category. The guide also profiles 87 companies, with an “honour roll” of 37 corporations.

All of this can be confusing. Oxo gets an F for “women’s issues” and F+ for “environmental management,” but scores A+ on “progressive staff policies” and “environmental performance.” (Apparently. “environmental management” has to do with company structures for dealing with environmental issues while “environmental performance” measures how much it actually pollutes.) What aspect of Oxo’s ethical behaviour do you reward or punish?

EthicScan’s approach fits current advertising trends. Nissan tells us it is just trying to build cars we can live with. Loblaws puts “Green” on everything from plastic garbage bags to tubes of shampoo. But once idea-starved ad copywriters move on to the next gimmick, EthicScan may find that the relationship between ethics and profit isn’t as straightforward as its grading system suggests.

EthicScan's senior writer Joan Helsen.

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