3D Home Printing Landmark: 10 Houses in a Day

The global South is experiencing urban growth on a scale unprecedented in human history, far outstripping the great urbanization wave that swept across Europe and North America during the 19th and 20th centuries.

Faced with growth at this pace, governments – both national and local – often become overwhelmed by the rate of change and find it difficult to cope. One of the most common complaints urban-dwellers around the world have is about their living conditions. Even in developed countries, creating enough housing to match demand can be a struggle.

Quality housing is crucial to human development and quality of life. Adequate living space and access to running water make a significant contribution to people’s health and well-being. Despite this obvious conclusion, millions of urban dwellers live in squalid conditions with poor sanitation, overcrowding, crime, pollution, noise and a general feeling of insecurity. Insecure people find it difficult to access stable jobs and suffer stigma for living in poor-quality neighbourhoods.

But many initiatives are seeking to speed up the pace of home construction.

These include the Moladi construction system from South Africa (moladi.net). Moladi uses moulds to assemble houses, so that the building skills required are minimal and easily learned. Built to a template that has been tested for structural soundness and using a design that produces a high-quality home both in structure and appearance, the Moladi system seeks to provide an alternative to makeshift homes that are structurally unsound and vulnerable to fires, earthquakes and other natural disasters.

Another clever approach is a home and dwelling assembly system developed by architect Teddy Cruz (http://estudioteddycruz.com) (http://visarts.ucsd.edu/faculty/teddy-cruz) that allows slum dwellers to gradually construct a building in stages as they can afford it. It is earthquake-safe and fire resistant.

Another approach turns to the fast-growing technology of 3D printing (http://en.wikipedia.org/wiki/3D_printing). This technology has gone mainstream in the past five years in the form of desktop-sized 3D printers, or fabricators as they are sometimes called. The machines assemble objects in an additive fashion – layer-by-layer – using digital designs from a computer.

3D printers can make a complex object without having to resort to mass manufacturing. An accurate, one-off object can be created with the same precision as a machined object. Architects, for example, use the technology to make 3D models of their designs. And now a company in China is hoping to use 3D printers to make houses.

The WinSun Decoration Design Engineering Co. (http://www.yhbm.com/index.aspx) 3D printed 10 houses in 24 hours in Shanghai’s Qinpu district, reported Business Insider.

This landmark achievement was accomplished with a giant printer – 152 meters long, 10 meters wide, and 6 meters high – which manufactured walls for the house from a mix of construction waste and cement.

As a sign of the confidence the company has in the innovative construction technique, it built its own 10,000 square meter headquarters in one month using the same materials. The company’s chief executive officer, Ma Yihe, is also the inventor of the technique. It is a very flexible technology and the material can be tinted different colors according to the customer’s wishes. It is cheap to work with and is also less draining on environmental resources than traditional building materials.

The 10 houses consist of two concrete side supporting walls with glass panels at the front and back and with a triangle roof. They will be used as offices at a high-tech industrial park in Shanghai. The company has big plans, hoping to use the technology to build more homes – and even skyscrapers.

Competition is heating up as people around the world seek to perfect 3D technology to print houses to meet the growing demand for dwellings.

In The Netherlands, Dutch architectural firm Dus Architects (dusarchitects.com)  commissioned the development of a leviathan 3D printer so it could print entire rooms. Modeled on a much smaller home desktop version, the Ultimaker (ultimaker.com), this printer creates whole rooms that are then assembled into custom-built houses.

The 6-meter high KamerMaker (kamermaker.com), or “room builder”, is being used in Amsterdam to build a full-size house.

The project is called “3D Print Canal House” (http://3dprintcanalhouse.com/). The printer assembles the rooms individually, and then they are snapped together to make a house. The internal structure of the building blocks are in a honey-comb pattern, which is then filled with a foam that becomes as hard as concrete.

“For the first time in history, over half of the world’s population is living in cities,” Dus Architects founder Hans Vermeulen told cnet.com. “We need a rapid building technique to keep up the pace with the growth of the megacities. And we think 3D printing can be that technique.

“We bought a container from the Internet and we transformed it into one of the biggest printers on this planet.”

This technology can also easily use recycled waste materials and lower the pollution and cost of moving building materials around. The Dus Architects prototype house is expected to take three years to complete (so, still in its early development phase) and will look like a typical Dutch canal house with a pointy, gabled roof (http://www.build.com.au/gabled-roof).

One of the pioneering advocates for using 3D technology to address the global South’s urbanization and housing challenge has been Larry Sass, director of the Digital Design Fabrication Group (http://ddf.mit.edu/) at the Massachusetts Institute of Technology (MIT).

Three technologies have been developed at MIT since the 1950s that have made digital fabrication possible – computer numerical control (CNC), which enables computers to control machines; computer-aided design software in the 1960s; and 3D printing in the 1980s to make solid models using digital designs.

Sass told MIT’s Spectrum newsletter (spectrum.mit.edu) that large-scale 3D printing would mean “buildings will rise faster, use fewer resources, cost less, and be more delightful to the eye than ever before.”

He envisions a future in which architects will be able to send their designs by computer to a 3D printer and it will then be able to start “printing” the building or a house accurately according to the original designs.

The conventional way of making buildings has been stuck in the same approach since the 1800s, according to Sass. It uses highly skilled and extensive labour, it is slow and plagued by weather disruptions and urban congestion, and it is expensive, often using materials brought from far away.

Digitally fabricating buildings takes a radically different approach: the building is made in a series of precision-cut, interlocking parts and then assembled on site like a jigsaw puzzle.

“It’s the right delivery system for the developing world, because the developing world doesn’t have an infrastructure of tools, air guns, saws and power,” Sass said.

“Design and high-quality construction is mostly for the rich,” added Sass, who was raised in Harlem, a New York City neighbourhood with high poverty levels. “I’ve always wanted to figure out how to bring design choice and architectural delight to the poor.”

By David South, Development Challenges, South-South Solutions

Published: July 2014

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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Innovative Solutions Celebrated in Ashden Awards

The world’s population is heading towards 9.6 billion by 2050 (UN). Combined with a growing middle class and rising living standards across the global South, that means ever-greater demand on the world’s finite resources. This raises a crucial question: Where will the energy to power rising living standards come from, and how much damage will be done to the planet’s environment by pollution created generating it (https://www.un.org/en/development/desa/news/population/un-report-world-population-projected-to-reach-9-6-billion-by-2050.html)?

The solution advocated by the world’s scientists is to move to sustainable energy creation, which does not rob from the future to create energy for today.

Such an approach requires fresh thinking and engagement from those who are actually involved in the struggle to raise living standards and improve human development.

One way to do this is to use high-profile awards and prizes to lure out fresh thinking and innovators and help them get the funding they need to realize their plans.

The International Ashden Awards (ashden.org) – considered the “leading green energy awards” – is about championing and promoting “practical, local energy solutions that cut carbon, protect the environment, reduce poverty and improve people’s lives”. It recently announced the finalists and winners for 2014.

The international finalists are 10 sustainable energy enterprises drawn from Africa (Burkina Faso, Tanzania), India and Southeast Asia (Cambodia, Myanmar). A handy, clickable and searchable online map (http://www.ashden.org/winners) further explains the winners and finalists for 2014 and previous years.

“With the stark warnings from the IPCC (Intergovernmental Panel on Climate Change) of the impacts of climate change, especially for the most vulnerable, we need to find solutions before it is too late,” said Ashden founder-director Sarah Butler-Sloss.

“Our role at Ashden is to shine a light on those organizations around the world that are helping reduce carbon emissions and finding ways of adapting to the effects of climate change.”

The mix of non-profit organizations and businesses among 2014’s winners and finalists shows there is no shortage of enthusiasm and fresh thinking out there. Proof the global South is alive with innovators with solutions.

Among the five international winners – who will receive between US $8,566 and US $68,531 each – is India’s Greenway Grameen (greenwaygrameen.com). It is tackling the problem of harmful pollution caused by cooking. Despite rapid economic growth and the spread of consumer goods such as televisions and mobile phones, most Indian women still cook with wood or dung. This is not only time-consuming, it also produces health-damaging smoke. Greenway Grameen was founded by two young MBA graduates in 2010 to make and sell affordable, desirable cookstoves that reduce smoke, cook food more quickly and stay cleaner for longer, dramatically improving the quality of life for many women and girls. As of March 2014 more than 120,000 of Greenway’s made-in-India smart stoves had been sold, benefitting around 610,000 people.

Another Indian winner is Infosys (infosys.com). India’s fast-growing economy is making ever-greater demands on its electrical grid. Global IT giant Infosys is leading the way to more sustainable growth by embracing green building measures, decreasing electricity consumption per staff member across its Indian business campuses. Success lies in seizing every opportunity to cut energy consumption in its existing buildings – from reducing the size of chiller plants for air conditioning to painting roofs white to reflect the heat. Cutting-edge design of new buildings also helps keep offices cooler and maximizes natural light. Taking US $80 million off its electricity bills, Infosys has proven the business case for large companies to invest in energy efficiency – not just in India but around the globe.

Among the other winners:

– Tanzania’s Off Grid Electric (offgrid-electric.com) is a leader in solar energy in East Africa, using mobile money to sell solar power as a daily service at an affordable price. Mobile money – where customers pay with their mobile phones – is increasingly used as a method of payment. Off Grid stands out because it understands the importance of customer service, offering an all-day customer care telephone line and ongoing support from a local agent. More than 10,000 households have taken up the service since April 2012. As fast as systems are manufactured they are off to customers – thanks to a sophisticated mobile phone app-based customer registration and product-tracking system.

– Myanmar’s Proximity Designs (proximitydesigns.org) is introducing treadle pumps (http://en.wikipedia.org/wiki/Treadle_pump) and other sustainable agriculture technologies to the country for the first time. Lifting water from wells and carrying it across fields is back-breaking, time-consuming work for rural farmers. Combined with water-saving drip irrigation technology, foot-operated treadle pumps that draw up water from wells can dramatically increase yields and incomes. Farmers are now seeing their lives transformed with some harvests and incomes more than doubling – and the pumps are helping ease the daily drudgery of farming. With over 90,000 households benefiting so far, Proximity Designs continues to adapt and introduce new products like solar pumps, to meet the needs of this rapidly changing country.

– Cambodia’s Sustainable Green Fuel Enterprise (http://www.sgfe-cambodia.com/environment) is turning leftover coconut shells and other waste into clean-burning briquettes for use as cooking fuel in the capital Phnom Penh’s homes and restaurants. While most Cambodians cook on wood charcoal, contributing to the country’s rampant deforestation and air pollution, this pioneering Cambodian business – led by Carlo Figà Talamanca – can scarcely keep up with demand.

The finalists are also an innovative lot too. Kéré Architecture (kerearchitecture.com) in Burkina Faso, Africa, has set a new standard for green school buildings. The school it built has a ventilated roof and other clever design features, providing a much cooler environment for children to study in. Not only that, the school was built by local people, and largely with local materials. Germany-based Francis Kéré, originally from Burkina Faso, designed and built the school in his home village. Kéré Architecture has since designed and built more than 20 innovative, naturally cooled public buildings in Africa.

India’s Sakhi Unique Rural Enterprise (sureindia.co.in), or SURE, is a not-for-profit social enterprise in central Maharashtra that has selected, trained and supported more than 600 female micro-entrepreneurs to sell clean energy products such as solar lanterns and cleaner cookstoves to other women. For the women entrepreneurs, selling energy products boosts income and carries a social cachet, while customers also see their lives improved with time-saving products.

Another Indian innovator, Mera Gao Power (http://meragaopower.com/), is demonstrating the business case for meeting the needs of some of the poorest people in India with unsubsidized commercial micro-electric grids, connecting more than 20,000 Uttar Pradesh families to clean, affordable power. Each system is easy to install and provides seven hours of light and mobile phone-charging for up to 32 houses. And with weekly payments of just US $0.42 cents, the electricity is even cheaper than kerosene.

The Rajasthan Horticulture Development Society (http://horticulture.rajasthan.gov.in/) in India has come up with a novel way to boost green agriculture and boost farming incomes. Farmers in the desert state of Rajasthan are seeing their sons return from cities to work on their farms thanks to a new solar-powered agricultural boom. The Rajasthan Horticulture Development Society (RHDS) has provided more than 10,000 farmers with new solar-powered water pumps, enabling year-round cultivation of high-value crops and the kind of high-tech horticulture that’s never been seen in the region before. With farmers’ incomes more than doubling, the programme has given them the “gift of life”.

And finally, Tanzania’s SimGas (simgas.com) is selling biogas plants that help people turn manure into clean gas for cooking instead of using charcoal, helping reduce deforestation. The plants are factory-produced and made of plastic, so they can be installed much more quickly than conventional plants and reach many more thousands of people. SimGas has just installed the largest plastic injection-moulding machine in East Africa, creating the potential to roll out biogas plants across East Africa.

The Ashden Awards were set up in 2001 to champion trailblazing sustainable energy enterprises and programmes that improve people’s lives and tackle climate change. Ashden says its 150 award winners have improved the lives of 37 million people worldwide, and are now saving over 5 million tonnes of carbon emissions every year.

By David South, Development Challenges, South-South Solutions

Published: July 2014

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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Innovative Ways to Collect Water from Air

World water resources are being depleted quickly as populations grow, urbanize and demand better living standards. Many scientists believe we are reaching peak water – the point at which fresh water is consumed faster than it is replenished.

According to Ensia (ensia.com), a magazine showcasing environmental solutions in action, 70 per cent of the earth’s fresh water reserves are locked up in snow or ice, and are expensive to tap and bring to the world’s water-stressed places. Of the remainder, most is in groundwater, soil moisture, swamps or permafrost, while just 0.3 per cent is easy to access in freshwater lakes and rivers.

By far the biggest user of water in the world – accounting for 69 per cent of the total – is farm irrigation. That’s a serious concern when considering the world will need to grow more food to feed an increasing population. Just 1 per cent of water is used for livestock, while 15 per cent is used for electricity generation and 7 per cent for manufacturing. More water is currently being pumped from underground resources than is being replaced from underground aquifers.

The average person needs to consume 0.6 to 1.3 gallons (2.72 liters to 6 liters) of water per day to survive in a moderate climate. For drinking, cooking, bathing and sanitation, an individual needs 13 gallons (59 liters) a day (Ensia).

In many places, obtaining water requires a long trek to a well or stream. But non-desert climates have water as a resource readily available all around – trapped in the air. The clue to this resource’s existence is in the air’s humidity levels, the most visible sign of which is the dew that is found covering the grass and leaves every morning when people wake up. The trick is to extract that water from the air and create a steady supply of this essential resource.

Italian architect and designer Arturo Vittori (http://www.vittori-lab.com/team/arturo-vittori), a lecturer on aerospace architecture, technology transfer and sustainability, believes he has an answer.

Wired magazine (http://www.wired.com/2014/03/warka-water-africa/) reported that Vittori was inspired by a trip to Ethiopia, where he observed the daily struggle to get water. Access to water in northeastern Ethiopia often requires a long walk, which reduces the amount of time left in the day to do other things. Parents often take along their children, meaning the children cannot go to school. The time consumed by gathering water leaves people poorer and unable to dedicate more of their day to income-earning activities.

And there is no guarantee the water is safe to drink or free of chemical contaminants. This situation left Vittori pondering ways of coming up with an inexpensive solution that would eliminate the daily hassle of finding water and guarantee its quality.

The answer was a WarkaWater Tower (http://www.architectureandvision.com/projects/chronological/84-projects/art/492-073-warkawater-2012?showall=&start=1). The bamboo structure – which looks like an upended, latticework funnel – captures the dew and moisture in the air and collects it in a basket at the bottom.

The water collector is inspired by the Warka tree, or Ficus vasta (http://en.wikipedia.org/wiki/Ficus_vasta). Native to Ethiopia, it is known for providing shade and as a rendezvous point for traditional gatherings.

A WarkaWater Tower stands 8 meters in height and is made from either bamboo or reeds. Inside, a mesh traps humidity from the air and the water drips down into a basket. One tower can gather around 94 liters of water a day. The water is right there in the community and not kilometers away, meaning time and energy saved for income-generating tasks.

A WarkaWater Tower is constructed in sections, which are assembled and then stacked on top of each other. The construction does not need special scaffolding or special machinery. Once the tower is in place, it can also be used as a solar-power generator.

The tower is still a prototype and Vittori plans to build two towers for a launch in 2015.

In Peru, reports the Latin American Herald Tribune (http://www.laht.com/article.asp?ArticleId=700400&CategoryId=14095), another innovative solution to the water crisis has been developed by students at the University of Engineering and Technology (UTEC) (http://www.utec.edu.pe/Utec.aspx). The students have developed a highway advertising billboard that can draw drinking water out of the air. Inspired by a campaign called “Ingenuity in Action”, the students teamed up with a local advertising agency to design the billboard. It is capable of extracting water from the air and processing it through a filtration system as it flows down to a series of taps at the bottom.

The water-making billboard is at the 89.5 kilometer distance marker of the Pan-American Highway and has five electric-powered tanks that can hold a total of 96 liters of drinkable water. It is capable of providing enough water for hundreds of families. A true sign of our times!

By David South, Development Challenges, South-South Solutions

Published: July 2014

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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Indian Business Model Makes Green Energy Affordable

The technology already exists to provide renewable energy and electricity to all the world’s poor. The trick is finding a way to pay for it and to make it sustainable. Many innovators are experimenting with business models to reach the so-called Bottom of the Pyramid (BOP) cohort, and the 1.2 billion poorest people in the world who do not have access to electricity (World Bank) (http://tinyurl.com/n9p3f5x). A further 2.8 billion have to rely on wood or other biomass materials to cook and heat their homes.

The International Energy Agency (iea.org) believes US $48 trillion of investment will be needed between now and 2035 to make sure energy capacity matches rapid population growth.

In the influential book The Fortune at the Bottom of the Pyramid (http://www.amazon.co.uk/Fortune-Bottom-Pyramid-Eradicating-Poverty/dp/8177587765), the late professor C.K. Prahalad (http://en.wikipedia.org/wiki/C._K._Prahalad) advocated seeing the poor as people with needs and assets: consumers who just need the right goods and services designed for them. It was a change from thinking only of the world’s wealthier populations as consumers, and revealed a market worth billions waiting to be tapped.

Energy is key to development and improvements to living standards. Yet energy poverty plagues much of the global South, especially in Africa and particularly in rural areas.

The World Bank has identified 20 countries in developing Asia and sub-Saharan Africa which will require a massive effort to expand access to electricity and safe cooking methods for poor households.

Around 80 per cent of the people without modern energy live in rural areas. While progress has been made since 1990 in expanding access to energy, it has failed to keep pace with population growth. According to the World Bank, the pace of expansion will have to double to meet the 100 percent access target set for 2030.

To avoid increasing global carbon emissions while achieving this goal, many are looking to renewable energy sources and technologies to reach these last groups of people.

As pointed out by the Institute of Development Studies (http://www.ids.ac.uk/news/can-renewable-electricity-reduce-poverty), “The global threat posed by climate change means that we also face the pressing need to use less carbon in existing energy systems. Making progress on both energy poverty and decarbonization requires a sharp increase in renewable electricity production, both on and off-grid.”

The institute identified four necessary factors for access to renewable energy to benefit poor people.

1.         Once electricity is generated, it needs to be reliably fed into the system.
2.         This additional supply must be made accessible, and affordable, for poor people.
3.         Increased electricity consumption then needs to translate into poverty reduction.
4.         Increased electricity supply can indirectly reduce poverty by boosting economic growth.

India’s Simpa Networks (simpanetworks.com), started in 2011, has a business model it believes will do the trick. Simpa has developed a clever way to increase access to home solar power systems for the poor, by allowing customers to purchase the system in gradual “rental” payments over time. The customers eventually come to own the power system outright, and from then on to generate electricity for free. Since the payments are small and incremental, it suddenly becomes within the realm of poor households to afford modern solar energy systems.

This is called the “Progressive Purchase Pricing Model” – similar to “prepaid”, “pay as you go” and “installment plan” models. Under this model, customers make a 10 percent down payment and receive the home solar system. The customer then buys a time-specific amount of energy for between US $1 and US $10 with their mobile phone. The orange lock box on the power system has a keypad on the front. When a code is punched in, it releases electricity (http://simpanetworks.com/our-solution/).

In increments, while the customer purchases energy for home use they also eat away at the cost of the system, until eventually it is paid off, usually at a total of US $300. Systems have an expected life span of 10 years.

With few cash resources, poor households usually are not capable of saving enough cash to purchase a full energy system for their home. Instead, they rely on buying kerosene for lamps or using battery-powered torches and lamps when they can afford it.

In 2012, Simpa teamed up with SELCO India (http://www.selco-india.com/) – a social enterprise providing sustainable energy solutions and services to households – to sell 1,000 home solar power systems, expanding to 5,000 systems in 2013, according to a case study from not-for-profit Synergie pour l’Echange et la Valorisation des Entrepreneurs d’Avenir (SEVEA) (sevea-asso.org). The goal is to reach 25,000 units sold by the end of 2014, proving this business model can scale. Ultimately, Simpa wishes to mega-scale its approach and reach 1 million households over the next five years.

Simpa believes take-up will be quick because this model reduces risk, both for the seller and for the bank that may loan the cash for the 10 per cent down payment. Simpa acts as a go-between for the system sellers such as SELCO and the banks. Simpa believe this business model reduces the risk of non-payment or loan default and has the right incentives in place to encourage the customer to hang in and keep making payments until they own the system outright. Customers enjoy the benefits of clean energy 24/7 from day one and can see clearly the connection between the energy they receive and the small payments they make. For those who default from paying, the system is taken from their home.

When the system was piloted in Karnataka, India, all loans were successfully repaid.

Simpa Networks is a venture capital-backed technology company. It hopes its approach will attract investors, particularly social investors, seeking a low-risk investment in helping expand energy access.

By David South, Development Challenges, South-South Solutions

Published: June 2014

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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South-South Trade Helping Countries During Economic Crisis

Weathering the global economic crisis is testing the stability of countries across the global South. But many countries are finding South-South trade and catering to their domestic middle classes can lift incomes and maintain growth rates despite the global turmoil.

A decade of boom in global markets as they became more integrated has brought rising incomes and created growing economies in the so-called emerging markets of the global South. Finance and investment from developed countries flowed into the global South and helped bolster growing economies, boosting incomes and bringing millions of people into the middle classes. But since the start of the global economic crisis in 2008, more and more countries in the global South have experienced turmoil, chaos and crisis.

The export-driven model that had served many Asian countries well – creating products for developed Western markets – is being tested by high unemployment in developed economies and declining purchasing power for the Western middle classes. Two trends that have grown in the past 10 years may offer a solution to this economic crisis. One is to build on the growth in South-South trade, and the other is to tap the growing middle classes of the global South by expanding the products and services available to them and further improving their quality of life.

It is well established that one of the key elements to securing sustainable prosperity is a thriving middle class. Middle classes in many countries in the global South are still classified as vulnerable – at risk of returning to poverty if the economy experiences a short-term crisis. Their resilience to an economic downturn needs to be strengthened, and this can be done by improving the quality of products and services available to them.

Building this market can also strengthen domestic job growth and help reduce a country’s dependence on imports.

One country facing up to this challenge is Indonesia. The New York Times recently reported that ports in Indonesia and other resource-exporting countries are quiet, as China’s demand for resources slows.

But while export markets are experiencing a slowdown, investment is going into Indonesia’s agricultural food-processing industry. Agricultural multinational Cargill (cargill.com) is building a cocoa-bean processing plant in the country, and the PT. Suprama (suprama.co.id/en/) instant-noodle factory is running at full capacity to meet the needs of the country’s growing middle class.

Many countries have experienced significant inflows of investment money as a result of stimulus measures led by the United States Federal Reserve (http://www.federalreserve.gov/faqs/about_12594.htm) to counter the economic contraction caused by the global economic crisis. This money, however, is uncertain and can just as easily disappear as it leaves to chase the next opportunity. Wise countries take measures to avoid being dependent on this fickle and fast investment funding.

Unlike in the Asian Crisis of 1997-1998 (http://en.wikipedia.org/wiki/1997_Asian_financial_crisis), many emerging-market countries now have large foreign currency reserves and robust stock markets. They have also built up their middle classes and increased consumption. Trade links with other countries in the global South have grown enormously since the late 1990s. For example, the trade between China and Africa, as announced by Chinese President Xi Jinping (http://en.wikipedia.org/wiki/Xi_Jinping) in early 2014, has surpassed US $200 billion for the first time, turning China into Africa’s largest trading partner

Despite a raging global crisis, in many emerging economies domestic spending is holding up and, in some cases, has never been stronger.

China now plays a key role in maintaining global economic demand. According to the global bank HSBC, Chinese growth adds “twice as many dollars to annual global demand as growth in the United States economy and far more than the economies of the European Union.”

An article in The New York Times (http://www.nytimes.com/2014/02/13/business/emerging-markets-in-asia-in-a-delicate-limbo.html?_r=0) suggested that global South countries can benefit from these trends by becoming an alternative to China’s “own increasingly high-cost producers of coal, aluminum, and other minerals” – as well as of clothing, shoes and electronics.

China is also in the process of altering its economy, from being the low-wage workshop of the world to an increasingly high-tech, high-value economy with growing science, technology and innovation sectors buoyed by heavy investment in research and development, for example China’s Xi’an Hi-tech Industries Development Zone (xdz.com). As China changes, other countries can step in and replace the industries that no longer find China an affordable place to manufacture their goods.

As an example, the Indonesian vice minister of trade, Bayu Krisnamurthi, announced that the Foxconn Technology Group of Taiwan (foxconn.com), which makes components and assembles devices for the popular Apple (apple.com) computer brand, is looking to set up a large factory in Indonesia.

“The other brands will come in their footsteps,” Krisnamurthi told The New York Times.

Other countries are bucking the crisis trend and using greater freedom to boost economic growth.

Cuba has been able to bounce back with free-market reforms. The Caribbean island has had its ups and downs economically since its revolution in the late 1950s. After the revolution, the country had several decades of impressive human development gains and built up enviable education and health care systems. But with the collapse of the Soviet Union in the early 1990s, the country lost its trade relationships and subsidies and was pitched into a major economic crisis.

During the Cold War, the USSR hoovered up almost all of Cuba’s exports of sugar, nickel and citrus fruit, and sold Cuba two-thirds of its food and 98 per cent of its fuel.

What was termed the “special period” after the collapse of the Soviet Union saw petrol become scarce. Many had to turn to cycling and walking to get around. Factories closed and food production declined.

One estimate by Hal Klepak of the Royal Military College of Canada, reported in The Observer newspaper, found the economy collapsed by 50 per cent in the five years to 1993.

Since then, Cuba has endured significant austerity and has struggled to regain its trade relationships and restore economic growth. Tourism has played a key role in keeping the country going.

And since 2008, various economic reforms have started to shift the economy away from over-dependence on the state and towards a more mixed market model.

Its capital, Havana, is a UNESCO world heritage site and is a popular tourist destination with one of the best-preserved former Spanish colonial architecture in the Caribbean.

When President Raul Castro took over from his brother Fidel, he began to slowly experiment with reforms to test how much market freedom could boost the economy and increase incomes. This has included allowing paladares, or privately-run restaurants, which are now flourishing and benefiting from the steady flow of tourists to the island.

The state now allows people to set up as independent traders in 200 occupations. Some have established entertainment businesses such as paint balling, others are running bars, or bookshops. It is now possible to easily change money in Havana and to find accommodation in private homes. Cash machines are spreading throughout the capital and more and more businesses will accept credit cards.

Registered businesspeople rose from 157,000 in October 2011 to more than 442,000 in 2013.

By being flexible, it is possible to discover new ways to grow economies and increase incomes, even in hard times. And increasing South-South trade is the way to go.

By David South, Development Challenges, South-South Solutions

Published: June 2014

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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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

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

The first five issues of Southern Innovator. The highly influential magazine was distributed around the world and each issue was launched at the annual Global South-South Development (GSSD) Expo hosted by the United Nations Office for South-South Cooperation (UNOSSC).

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