African Botanicals to be used to Boost Fight against Parasites

More than 1 billion people in the developing world currently suffer from tropical diseases, which leave a trail of disfigurement, disability and even death. Yet only 16 out of 1,393 – 0.01 percent – of new medicines marketed between 1975 and 1999 targeted tropical diseases (International Journal of Public Health).

A combination of poverty and lack of political will means disease-ridden countries do not invest enough in research and development to find new medical remedies to save lives.

A pioneering project hopes to turn to the continent’s plants to dig up new remedies to tackle the many diseases borne by parasites.

It seeks to boost prosperity in Africa while taking on the many diseases that harm and kill people and hold back economic progress on the continent. If successful, it will make disease-fighting part of the future prosperity of African science – and boost the woefully neglected field of tropical medicine.

What is at stake is the future of Africa, as the continent has the lowest life expectancies in the world. With just 15 percent of the world’s population, Africa carries a high disease burden, for example it has 60 percent of the global HIV/AIDS-infected population. Access to clean water is poor, with only 58 percent of people living in sub-Saharan Africa having access to safe water supplies (WHO). This leaves people exposed to water-borne parasites like Schistosoma (http://en.wikipedia.org/wiki/Schistosoma), which infects hundreds of millions and is the most crucial parasitic disease to tackle after malaria.

Africa’s biggest killers in order of severity are HIV/AIDS, diarrhoeal diseases, tuberculosis, malaria, childhood diseases, sexually transmitted diseases, meningitis, tropical diseases, Hepatitis B and C, Japanese encephalitis, intestinal nematode and leprosy.

Health resources are not being proportionately allocated: only 10 percent of financing for global health research is allocated to problems that affect 90 percent of the world’s population. This has been called the 10/90 gap (http://www.globalforumhealth.org/About/10-90-gap).

“The untapped potential of African innovation capacity is enormous,” explains Dr. Éliane Ubalijoro, an adjunct professor of practice for public and private sector partnerships at Canada’s McGill University Institute for the Study of International Development (ISID) (http://www.mcgill.ca/isid). Her research interests focus on innovation in global health and sustainable development.

“Using African biodiversity to produce solutions to local (and global) problems will provide a generous return on investment in an area of the world that is destined for growth.”

Ubalijoro was recently awarded, along with Professor Timothy Geary, director of McGill’s Institute of Parasitology, a Grand Challenges Canada (http://www.grandchallenges.ca) grant of CAD $1 million (US $1.04 million) to address parasitic disease through African biodiversity.

The Grand Challenges Canada grants are “dedicated to improving the health and well-being of people in developing countries by integrating scientific, technological, business and social innovation.”

It’s predicted Africa’s growing population will reach between 1.5 and 2 billion inhabitants before 2050: a lot of people needing affordable remedies and treatments.

Innovators have spotted an opportunity to simultaneously improve public health while also boosting Africa’s income from discovering new drugs. Traditional knowledge can play a critical part in the evolving innovation and commercialisation of Africa’s medicines and treatments.

Turning to these remedies and botanicals needs careful stewardship: Africa has a terrible reputation for counterfeit medicines, which kill and harm many people every year. The medicines also need to be affordable and accessible.

In some Asian and African countries, 80 percent of people use traditional medicines for primary care at some point (WHO). There may be sceptics amongst those used to name-brand medicines but traditional African medicines have a rich cultural heritage and have sustained Africans over the centuries. It is estimated the continent has over 50,000 plants to draw from, with fewer than 10 percent so far investigated to tap their potential medical utility.

From the start, most of the new funding for the McGill project will be spent in Africa. Out of the CAD $1 million dollar grant, more than half the funds will go directly to partners at the University of Cape Town and the University of Botswana. At first, the funds will be used to screen local biodiversity for promising leads. These will then be subjected to chemical testing in the lab to extract their potential utility for treatments.

“This system allows selection of natural product compounds that act on multiple target sites in the parasite,” according to Ubalijoro, “thus reducing the chances of developing resistance to the kinds of novel drugs that we hope to develop based on promising leads derived from this effort.”

The approach being taken by the project hopes to reduce the time it takes to get drugs to market and to shift the power and initiative to local solutions and scientists, rather than waiting for outsiders to come to the rescue.

The project hopes to contribute to not only improving people’s health but to stimulating local economies. This will be done by growing local pharmaceutical industries, retaining local talent which often now leaves the continent and doing rewarding and dynamic science within Africa. In short: making being in Africa attractive.

It is hoped the success of the project will breed more success, as has happened in other places – think Silicon Valley in California, or Bangalore in India.

“Success in this project will diminish the risk for technology-based investments related to health innovation,” said Ubalijoro, “helping to encourage local venture capital to help grow African science entrepreneurs. The overall benefit is improved livelihoods and prosperity locally as well as reduced spread of disease threats locally and internationally as we travel globally. ”

By bringing the science closer to those who need the help, it is hoped the painfully slow process of new drug development will take on a greater urgency.

“Discovery to production of a marketable drug can be a lengthy process,” said Ubalijoro. “But as novel methodologies are used to decrease candidate drug failure through the development and clinical processes, we can decrease the time it takes to bring drugs to market while empowering local innovation systems to lead the process instead of waiting for others to do so.

“The sense of urgency felt by local scientists to solve local problems can stimulate innovation and safe delivery of new medicines for African populations.”

Ubalijoro wants to see greater cooperation across disciplines and for people to come together in “innovation clusters,” that bring together policy, business and technical capability.

“I would like to see local investment in innovation coming from the public, private and NGO sectors,” explained Ubalijoro. “I would also like to see women scientists taking an active role in leadership and in becoming the next generation of innovating African scientists.”

Ubalijoro says that for those with money to invest, this is a vast opportunity waiting to be tapped. And she would like to see a dedicated African Innovation Fund set up for this purpose

“The message for venture capitalists and investors is simple: by cultivating local talent, we can help African scientists and entrepreneurs explore indigenous-based solutions to local health problems while taking advantage of the most advanced technologies available globally to ensure that quality, risk mitigation and profits can grow hand in hand with healing the ailments of African populations.”

By David South, Development Challenges, South-South Solutions

Published: May 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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China Consumer Market: Asian Perspective Helps

The rise of China since 1989 has been the most remarkable development story of our times. The number of people lifted out of poverty is historically unprecedented: 65 percent of Chinese people lived below the poverty line in 1981; in 2007 it was 4 percent (World Bank).

Many commentators have focused on China’s astonishing work ethic, vast labour resources and ability to export great quantities of products. But while China has been busy meeting the needs of the world economy, domestic Chinese consumption has received less attention.

Yet, with the Chinese firmly established as keen savers and very ambitious to improve their living standards, a vast new opportunity has emerged: the Chinese consumer market. But it will be a tricky market to tap. Chinese consumers are notorious bargain hunters and prefer to save and invest rather than consume. Poor rural families earning less than US $200 per person a year still are able to save 18 percent of their income.

This makes a lot of sense: social supports have been stripped away as China’s economy embraced the market system. If you do not save and invest, then you will not have the resources to meet the costs of education and health care, for example. China has also seen a dramatic move to urban areas, with over 43 percent of the population now urban.

China, despite all the hype, is still a marketplace that is difficult to easily enter for Western brands and businesses. And this makes for an opportunity for local brands to raise their game.

In order to compete in the consumer market, businesses need to do more than compete on price: they need to also offer something more and that usually involves building a strong brand.

The Chinese urban consumer market could grow from around US $570 billion in 2005 to around US $4.7 trillion by 2025 (PWC) (http://www.pwc.co.uk). Fast growth will be seen in discretionary spending, things other than food, clothing and utilities.

While Chinese businesses have focused on export markets and meeting the needs of the global marketplace – a focus which has been very successful and led to remarkable wealth gains – the Chinese consumer has come lower down the list of priorities. 

 Growing the domestic consumer market offers a substantial wealth-creating opportunity. Since the global economic crisis erupted in 2008, it has become apparent that the old model of exporting vast quantities of products to Western consumers alone will not be enough to keep living standards rising. Western economies are highly indebted and will take many years to recover from the mistakes and debts from the boom years and the economic crisis. 

 This is an opportunity for South-South trade, which made up 20 percent of global exports by 2010. Foreign direct investment to developing economies rose by 10 percent in 2010 due to a rapid economic recovery and increasing South-South flows. 

 One company successfully targeting this market is the Singapore-based Banyan Tree Hotels and Resorts brand (www.banyantree.com), which bills itself as specializing in luxury sanctuaries to rejuvenate the body, mind and soul. It is notable for deliberately not competing on price but on its brand reputation and for tailoring its offering explicitly to Asian tastes. The company claims its resorts are “naturally-luxurious, ecologically sensitive, culture-aware experiences for the discerning, responsible traveller.” 

 The first Banyan Tree resort was built in Phuket, Thailand in 1987. It now employs 8,200 people from 50 nationalities in 26 resorts. Founder and executive chairman Ho Kwon Ping focused from the start on the business’s brand as critical to driving the growth of the company. 

 He told INSEAD Knowledge: “The difference between us and some others is that, for many other companies having a strong brand is a reward for being successful in many things that you do but it’s sort of coincidental. It comes afterward; it’s a reward for success in other areas. For us, we’ve always said from the very beginning – having a strong brand is imperative for our survival.” 

 Banyan Tree has also eschewed quick-growth models, instead trying to do as little environmental damage as possible and to include community development and environmental projects at each resort. 

 Its Banyan Tree Ringha resort in China’s Yunnan province tries to bring the atmosphere of the fictional earthly paradise of Shangri-La to China. Ringha Valley sits near the Temple of the Five Wisdom Buddhas, 3,600 meters above sea level. The resort has 15 one-bedroom suites, 11 two-bedroom lodges, and six spa suites, decorated in a Tibetan style. The area is home to the Naxi people who trace their origins to nearby Tibet (http://en.wikipedia.org/wiki/Naxi_people). 

 The accommodation is rustic and the resort is located in the middle of a village. Visitors can see farmers at work right from the resort. Overlooked by Tibetan mountains and settled in a lush, fertile valley the sight was picked for its tranquillity and isolation. The appeal of the area to tourists is clear: mountain peaks, deep canyons, rivers, valleys, streams and tranquil lakes. And in polluted urban China, it is an area free from pollution. 

 The resort is built from transplanted Tibetan farm houses and offers hikes, mountain lakes, hot springs, gorges, forests. There are Asian touches like a welcome at the resort of Tibetan horns, songs and a tea ceremony. 

 Tourism is transforming the area. Towns and villages have been renovated to showcase traditional architecture. 

 The hotel and resort chain gets its name from the tradition of ancient merchants gathering under the branches of the banyan tree to conduct business in the cool shade.

“The 21st century is really going to be the age of Asia – both India and China,” said Ho Kwon Ping. “The huge consumer markets are going to be Asian … Now there’s a real opportunity for people of Asian origin, who have an instinctive cultural feel for where their consumers are moving towards, to come out and create a brand which can be primarily rooted in their own Asian context, but have a global relevance.”

By David South, Development Challenges, South-South Solutions

Published: March 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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Chilean Eco-Buildings Pioneering Construction Methods

Across the global South, the search is on for new ways to build without extracting a high price from local environments.

More and more people are recognizing the advantages of energy-saving methods like prefabrication. Prefab building techniques involve assembling a structure from pre-assembled parts or modules made in a factory, or transporting a completed, factory-made structure to a site (http://en.wikipedia.org/wiki/Prefabricated_building). Pre-fabrication has many advantages, especially now that information technologies bring precision to the building process. Prefabrication means the construction process can be tightly controlled, helping to avoid waste, time delays, weather problems, or any of the other idiosyncrasies of a building site. It can also allow large numbers of dwellings to be built quickly by maximizing skills and efficiencies in an assembly-line model of production.

In South America, a Chilean architecture company has pioneered innovative methods to build and deploy accommodation for tourists in an ecologically fragile area. The prefabricated wood cabins also use many emerging saving technologies and clever design tweaks to protect privacy when located close together.

Easter Island (Rapa Nui) (http://en.wikipedia.org/wiki/Easter_Island) sits 3,500 kilometers off the Chilean coast and is well known for its iconic, giant head ancient stone statues, or moai (http://en.wikipedia.org/wiki/Moai). Around 3,791 people live on the island – one of the most isolated inhabited islands in the world – which is both a UNESCO World Heritage Site and a popular tourist destination.

Tourism is vital to the local economy and many people make their living from it. Enterprises making money from tourists range from dive shops and craft stores to restaurants and hotels.

The island has had a good connection between tourism and improvements in living conditions, with tangible improvements made since the increase in tourism in the 1960s. Clean water and electricity were provided and a hospital and a school built.

In the past few years, more flights from Peru and Chile have increased opportunities to visit the island and lowered flight times. The island’s only airport is being expanded to further increase the capacity of flights, a project due to be completed by 2015.

But tourist numbers in 2010 declined from 2009 and this has been attributed to ongoing conflicts between Chilean authorities and the indigenous Rapa Nui people over ancestral lands.

Here as elsewhere, the challenge is to balance tourism with the fragile local environment. Any further expansion of tourism will need to sit lightly on the land and respect the rights of the Rapa Nui people.

The brief for the Morerava eco cabins (http://www.morerava.com/) was to provide environmentally sensitive accommodation that uses few local resources. Built by Santiago-based Chilean architects AATA Associate Architects (http://aata.cl/), the cabins were prefabricated in a factory and shipped to the island during 2010.

The architects specialize in industrial, commercial, educational and institutional, residential and interior design. They pay attention to environmental conditions and the use of resources.

The cabins are arranged around an elliptical courtyard reflecting the shape of the island’s flag design. They have an open-plan set-up and are long and skinny, with rooms arranged in a line from end to end. Nine cabins accommodate six people each. Cleverly, they are designed to retain privacy while being close together. Privacy is maintained through a strategic use of window placement. On one side of the cabin, the windows are high, while they are low at foot level on the opposite side. This prevents there being a direct sight line into the next cabin, while allowing plenty of light to stream in.

Having the cabins built on the Chilean mainland avoided using up local vegetation and resources. Easter Island once was covered with a palm forest. But over the centuries of human habitation, the forests were cut down and the island became almost barren.

Propped up on stilts, the cabins hover over the moist grass floor to avoid damage from rot. The roof is sturdy and made from zinc steel.

They use little water and energy to function. Cross-ventilation airs the cabins and avoids mechanical systems like energy-gobbling air conditioners. Electricity on the island is generated from expensive petrol, so any means to avoid using it means a big savings.

With a mild climate, the cabins do not need insulation.

Water is captured from rainfall on the roof and is then drained into a storage tank below the cabins (http://en.wikipedia.org/wiki/Rainwater_harvesting), and hot water is provided by solar heaters placed on the rooftops. This system circulates the hot water without electricity by using a technology called thermosiphon (http://en.wikipedia.org/wiki/Thermosiphon) which exploits the natural phenomenon of heated water being less dense and rising while cooler water flows downward through the force of gravity.

At the other end of the construction spectrum, one of the most notoriously energy-wasting of structures – an office building – has been given a green makeover. Another Chilean pioneer in green architecture is the Santiago headquarters of Empresas Transoceanica (http://www.transoceanica.cl/), a private investment company in real estate, hotels and tourism, agro-industry and logistics. Its new campus HQ – part park, part office building – maximizes light through the building’s long and bulbous shape.

Designed to reduce energy demand while improving work spaces, it favours natural light while avoiding excess heat build up through wooden slats outside the building.

Geothermal energy comes from a well 75 metres below ground. This provides water cooled at 12 degrees Celsius, to cool the building. The building has been built following the strict environmental guidelines laid down in the LEED guidelines (Leadership in Energy & Environmental Design (LEED) – an internationally recognized green building certification system (http://en.wikipedia.org/wiki/Leadership_in_Energy_and_Environmental_Design).

Extensive planning and design work went into making sure the building’s structure, orientation, lighting, insulation and landscaping reduced energy use and need for energy-intensive mechanical solutions. Skylights bring natural light into the building’s public spaces. There are three stories above ground and two stories below providing underground parking.

The landscaped park around the building is actually the roof for the underground parking garage. The whole edifice creates a seamless connection between the building and the greenery and water features surrounding it.

By David South, Development Challenges, South-South Solutions

Published: February 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.  

Cited in Chile in Transition: Prospects and Challenges for Latin America's Forerunner of Development by Roland Benedikter and Katja Siepmann (Springer, 2015)

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Model Cities Across the South Challenge Old Ways

Pioneering thinking about how resources are used and how people live their lives is taking place in the dynamic economies of the global South. Facing a vast population surge to urban areas, these include attempts to build “green” cities and low-waste, smart and digital communities.

These model cities are clever solutions for the world’s growing – and urbanizing – populations coping with a stressed and damaged environment. Unlike one-off technologies and ideas developed in isolation, the model cities approach starts from scratch. They become living laboratories on which research and development take place at the heart of the community, not just the preserve of aloof academics hidden away in labs.

This is critical work because the world is rapidly urbanizing and needs solutions to ensure this process does not lead to chaos and misery. How these cities turn out could hold the fate of humanity and much is at stake. According to a report by the International Institute for Environment and Development, Africa now has a larger urban population than North America and 25 of the world’s fastest growing big cities. Getting to grips with urban development will be critical for the future of the continent and the wellbeing of its people.

By 2025, Asia could have 10 or more cities with populations larger than 20 million (Far Eastern Economic Review). People will be living in densely populated cities and they will need to be smart cities if they are to work.

In the United Arab Emirates (http://en.wikipedia.org/wiki/Abu_Dhabi), Masdar City (http://www.masdar.ae/en/home/index.aspx), is a model city not only being built, but being used as way to develop commercially successful environment technologies – renewable energy solutions and clean technologies – that will turn into future income for the city and Abu Dhabi.

The traditional approach in other countries has been to keep scientists and innovators disconnected from the living, breathing city. They toil away in labs or universities and only really get to test their technologies and theories after going through lengthy testing and approval by a city’s government. As Masdar’s website says, this city will develop “from research to commercial deployment – with the aim of creating scalable clean energy solutions.”

The planned community will be 6 square kilometres in size and wants to be “one of the most sustainable cities in the world”. Located 17 kilometres from Abu Dhabi, it hopes to be a pedestrian-friendly town home to 40,000 residents. At the heart of Masdar City is the Masdar Institute: a research university developed with the Massachusetts Institute of Technology (MIT). The students are the city’s first residents and a range of top international companies are planning to locate in there as well. German technology company Siemens will place its Middle East headquarters in Masdar and its Center of Excellence in Building Technologies R&D centre. Others joining them include GE, BASF, Schneider and the Korea Technopark Association.

The Surbana Urban Planning Group (www.surbana.com) spent five decades developing its experience with the rapid growth of Singapore (http://en.wikipedia.org/wiki/Singapore): a city-state boasting the highest quality of life in Asia (Economist Intelligence Unit) which took itself from an impoverished city to one of the world’s leading export and manufacturing economies. Surbana built 26 planned townships in Singapore that now house 85 percent of the city’s 4.5 million residents. It specializes in designing, implementing and maintaining complex urban areas.

Singapore has pioneered a number of ways to house a large population within a small territory. This experience is now being put to work in China at the Tianjin Eco-City development (http://www.tianjinecocity.gov.sg/masterplan.htm). Known for high pollution levels due to heavy industry Tianjin will undergo a big change. The project aims to develop a template that can be used for other cities throughout China and around the world.

The 30-square-kilometre Tianjin Eco-City is being built around a wetland and river. The idea is to offer its residents an environment with easy access to recreational spaces and the natural environment. The transport system will avoid cars and instead use a light rail system as the main mode of transport. It should be home to 350,000 people.

Cleverly, each suburban area will have commercial sub-centres to enable as many people as possible to work locally and avoid the need to commute long distances. The Eco-City will be built by assembling “eco-cell” – like a bee’s honeycomb – neighbourhoods self-contained with schools, child care, commercial and work areas, and parks. This set up is geared to collecting a common mistake in other new developments that only consider housing, forgeting about how people work, shop and recreate.

There will be seven distinct neighbourhoods: Lifescape, Eco-Valley, Solarscape, Urbanscape, Windscape, Earthscape and Eco-Corridors (http://inhabitat.com/tianjin-eco-city-is-a-futuristic-green-landscape-for-350000-residents/). An “Eco-Valley” will run through the city as a green spine connecting north and south.

It is hoped the city will be completed by 2020. Just 10 minutes’ drive from the Tianjin Economic-Technological Development Area (http://en.investteda.org/) business parks, the residents should be well served for jobs.

In South Korea, the Digital Media City in Seoul (http://dmc.seoul.go.kr/eng/index.do) bills itself as a “harmony of nature, high-tech, and culture”. The Seoul municipal government devised the DMC in the 1990s to capitalize on the economic and social benefits of being the world’s most digitally wired nation.

The DMC project serves the nation’s larger goals of transitioning from a manufacturing to an innovation economy and promoting Seoul as an east-Asian hub for commerce. The DMC is about creating new business opportunities.

But this isn’t just about business and research and development: it is a comprehensive digital economy experience, with schools, housing for the affiliates of international firms, moderate and lower-income housing, commercial and convention facilities, entertainment zones, and the city’s central rail station are all located in or near the Digital Media City.

By David South, Development Challenges, South-South Solutions

Published: February 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.  

Follow @SouthSouth1

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Indian Newspapers Thrive with Economy

The onslaught of digital media in the developed countries of the world regularly brings pronouncements of the death of the traditional newspaper. But this assumption of digital triumph misses out on the reality in countries across the global South.

As incomes rise and literacy levels go up, so does the desire to consume news and information. And while many are jumping straight to online and mobile phone sources, just as many are enjoying more traditional print media offerings like magazines and newspapers.

India boasts both a fast-growing economy and the largest number of paid-for newspapers in the world. The print media industry in India has seen phenomenal growth since 2005, with the number newspaper titles increasing by 40 percent to 2,700 (World Association of Newspapers). The two factors driving this growth in newspapers are rising literacy and a booming economy

The World Association of Newspapers found China leads the world for newspaper subscribers, with 93.5 million readers a day. India is second. It is estimated the Indian newspaper industry will generate US $3.8 billion in revenues in 2010, a 13 percent growth rate over the last five years.

Estimates place growth in the newspaper industry in the next four years at 9 percent a year, to US $5.9 billion (KPMG).

Part of the reason India is defying the decline in newspaper numbers and readership seen in developed countries is poor internet penetration across the country. Because of this, only 7 percent of the population uses the web for information. And the country’s high number of illiterates (just 65 percent of the population can read) means even if many could afford a newspaper, they couldn’t use it.

According to Amar Ambani, head of research at India Infoline Group, “Unlike the West where the internet publishing and advertising has significantly hit the print media, the Internet threat to print media is still in its nascent stage in India, given the low penetration of computers and adequate bandwidth across the country.”

Newspapers are also growing in a highly competitive market exploding with new television channels on cable and satellite and other media distractions like mobile phone applications.

The newspapers (http://www.world-newspapers.com/india.html) are a strong reflection of how much the economy has changed in the past decade. They contain advertisements for property, mobile phones, cars and dating services.

Cost is also a critical element in their success: at only four rupees each (US $0.09 cents), many Indians buy several newspapers at a time for their home. The publications are able to charge so little because of the health of the advertising revenue coming in. Newspaper advertising in India increased by 30 percent between January and Match 2010 alone, the quickest jump in ads for the Asia-Pacific region (Nielsen India).

There is a hierarchy in the newspaper industry: English-language newspapers attract wealthier readers and can charge the most for advertising. But rising literacy rates combined with increasing personal wealth is fuelling growth in regional papers written in local languages. India has 22 official languages and English as an associate language. The country as a whole has about 33 different languages and over 2,000 local dialects. Hindi newspaper circulation rose from 8 million in the early 1990s to over 25 million in 2009.

The Times of India (http://timesofindia.indiatimes.com) is now the world’s largest circulation English-language newspaper, with 4 million readers. It uses this success to charge 10 times what regional papers can for advertising. At present, the regional newspapers’ bread-and-butter is mostly government-paid advertising.

But if trends continue as they are, then the tables will turn on big beasts like the Times of India. Regional papers will grow as people look for an opportunity to read in their own local language.

Flush with cash and confidence, Indian newspapers are also innovating new ways to advertise untried in other countries. Talking ads attached to the actual newspaper’s back pages caused a great stir when they were trialled in India recently (http://www.guardian.co.uk/media/greenslade/2010/sep/28/newspapers-advertising). The talking ads for a car company delivered a sales pitch but also alarmed and annoyed many people because the talking ad wouldn’t stop talking.

Ambani puts the success of the Indian newspaper industry down to five factors: the economic boom in semi-urban and rural India; growing local content; more opportunity to grow the number of readers; rising advertising spending; and rising literacy as a result of rising secondary school enrolment. He believes students aged between 10 and 15 are getting the newspaper habit and they represent huge future growth in newspaper readers.

By David South, Development Challenges, South-South Solutions

Published: February 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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