Turning Street Children into Entrepreneurs

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

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

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

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

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

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

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

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

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

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

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

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

By David South, Development Challenges, South-South Solutions

Published: November 2007

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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Traditional Medicine is now a Proven Remedy

Once dismissed as old fashioned, ineffective and unscientific, traditional medicine is now seen as a key tool in bringing healthcare and healing to poor people bypassed by existing public and private health measures.

Acknowledging traditional medicine as a useful tool goes back to the World Health Organisation’s Alma-Ata Declaration in 1978, which urged governments for the first time to include traditional medicine in their primary health systems and recognise traditional medicine practitioners as health workers. During the last 30 years there has been a considerable expansion in the use of traditional medicine across the world. Despite their ancient origins, it is still critical these medicines do meet efficacy and health standards and are proven to work.

In Mongolia, when the Soviet Union collapsed a decade and a half ago, new market forces meant that supplies of conventional medicines became prohibitively expensive for most of the population. With one doctor for 600 people in the rural areas – and the vast distances to be covered – medical services were virtually unobtainable in rural communities.

This situation led to a revival of Mongolia’s 2,000-year-old traditional medicine. This includes acupuncture, cauterisation, manual therapy, blood letting and therapies using mares’ milk – all integral to the rural way of life.

Research by the Japanese Nippon Foundation – the largest private foundation in Japan – explored how Mongolia’s public health care could be improved through traditional medicine. It focused on the possible use of traditional medicine alongside Western medicine, the depth of faith in traditional medicine, the affordability of traditional medicine, and the lifestyles of herdsmen living in remote areas away from hospitals. The project, launched in 2004, distributes medical kits with 12 types of traditional medicines to households in rural areas. As they use them, the households pay for them. The kits, which mostly target stomach and intestinal ailments and fever, have so far been distributed to 10,000 households (50,000 people) across the country. The Foundation found doctors’ house calls were down by 25 per cent after one year of the project.

In India, Gram Mooligai and its Village Herbs label helps bring quality healthcare to the country’s 170 million rural poor currently left out by public healthcare programmes, or who can’t afford private services. At present, the Indian government has been unable to find adequate funds to provide healthcare to all its people. Gram Mooligai uses a network of 300 women health practitioners to reach villagers who spend on average US $50 a year on health services – so far, they reach 30,000 households. It has built trust with the poor by offering herbal remedies based on India’s strong Ayruvedic heritage of herbal healing. It also draws on India’s rich biodiversity by harvesting medicines sustainably from native plant species – over 18,000 are known.

The company is owned by a network of rural growers that manufacture herbal remedies like Trigul balm for joint pain, Sugam cough syrup and Jwaracin fever reducer. Gram Mooligai combines modern heathcare with local remedies familiar to rural villagers.

The website gives a good example of this folksy approach. In answer to a villager whose daughter is complaining of pain in her legs and back, the villager is advised to give her milk and ghee (clarified butter). “Add nuts and dry fruits to her daily diet in small quantity. If she is lean, then a weekly massage with Lakshadi Thailam (which is available in the Ayurvedic shops) is very useful. Slightly warm the oil before massage and add a pinch of common salt to the oil for better absorption.”

By David South, Development Challenges, South-South Solutions

Published: September 2007

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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Safe Healthcare is Good Business and Good Health

 

Many people have been shocked by recent stories about the proliferation of counterfeit drugs and the rate at which they are killing and harming people in Nigeria. The International Narcotics Control Board found that up to 50 percent of medicines in developing countries are counterfeit. This has driven home the point that without the presence of legitimate players in the African drug market, the illegal sharks will step in to make large profits – and a literal killing.

To counter this negative trend, what is most needed is support for reliable Africa-based companies: businesses that are long-term, sustainable and not living from one grant to the next. But as experience has shown around the world, nurturing businesses requires certain fundamentals: they must work to be profitable, they must find a market and exploit it, and they need cash infusions that are timed to the company’s growth, not to the cycle of international donors. This role, often served in developed countries by venture capitalists, who want a fast return of 35 percent – is too onerous a burden for most African businesses. What African companies need is a more conservative, long-term approach; one that expects returns of between five and 10 percent.

Kenyan company Advanced Bio-Extracts (ABE) is one good example. Only 18 months old and based in Nairobi, the company produces one of a new generation of low-cost anti-malarials known as artemisinin-based combination therapies (ACTs). The drug is produced from the green leafy plant Artemisia, or sweet wormwood. The company is the first in Africa to make this drug, and employs 7,000 local farmers in Kenya, Tanzania and Uganda, as well as scientists.

ABE has received two infusions of cash from non-profit social venture capitalists Acumen, as well as investment from Swiss drug giant Novartis. Acumen has so far invested US $9.6 million in 11 active investments focused on a diverse set of health challenges, including basic healthcare access in rural areas and treatment for malaria and HIV/AIDS.

“We are commercializing a product that had never been commercialized,” said ABE’s owner, Doug Henfrey, to the New York Times. “Those little windows of support make these things happen. We could not have done it otherwise.”

Acumen’s Kenya country director, Nthenya Mule, said “there are positive things happening in Africa, but they are not happening overnight, and some are happening quietly. ABE is exemplary. You will not see it as front-page news, but in 18 months they set up a factory with 160 people interfacing with 7,000 farmers and supplying one of the major pharma companies in the world.”

Stimulating private sector solutions to African healthcare problems is receiving an additional boost from a new fund established by the World Bank’s private sector arm, the International Finance Corporation. To be launched later in 2007, it will offer cash and loans totaling US $500 million to commercial healthcare projects in Africa. According to its own statistics, 60 percent of health expenditure in sub-Saharan Africa is privately funded, and the market, excluding South Africa, is worth US $19 billion.

By David South, Development Challenges, South-South Solutions

Published: May 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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Illiterate Get Internet at Touch of a Button

Quick access to information is crucial for development. The remarkable spread of information around the world via the Internet has been one of the greatest achievements of the 21st century. The astounding take-up of mobile phones is another. For those who can afford it or get access to a computer and electricity, the new technology is a powerful tool for economic and social advancement. But what about people who are caught in the technology gap, or who are illiterate?

What about those who have a mobile phone, but are too poor to own a computer – or live in a village without electricity? Or those who can’t read or write? In India, there are 42 million Internet users, 3.7 per cent of the population. But the country is also home to the largest number of illiterate people in the world: 304.11 million (Human Development Report).

A unique solution in rural India is developing a way to connect the illiterate to the Internet. The Open Mind Programme’s Question Box Project, opened its first Box in the village of Phoolpur in September 2007.

The idea is brilliantly simple. An intercom-like white tin box with a phone inside is placed in a village’s public areas. Using the existing phone networks, the user just has to hit a simple button to get an operator at the other end. The operator sits in front of an Internet-enabled computer. The user just asks their question, and the operator turns these questions into search queries. When the computer’s search engine gives back answers, the operator selects the best one and then replies in the user’s native language and in layman’s terms.

The operator’s role goes beyond simply typing questions into Google – the operators use intelligent software that aggregates frequently asked questions (FAQs) to speed up time. FAQs include: school scores, job opportunities, football/cricket scores, and definitions and terms. Operators will also send emails for the users.

The service also has a role to play for the literate who lack Internet access. Students once had to travel to get their exam results, but now they can just ask the Question Box.

The Question Box operates in normal business hours for now. A second Question Box was put into operation at the beginning of 2008 in the village of Ethida, several hours’ drive from New Delhi, and there are plans to expand the Question Box to 30 units connected to 20 operators.

At present, organizers are looking into raising revenue for the service by advertising and sponsorship. Operators are typically homeworkers and well-educated. Mostly female, their parents are happy to have them work from home.

During this first phase, the project team analyzed the results and refined the structure of the service. They are also exploring viable business models to be able to take the service across India and keep it sustainable.

Professor of Psychology Ritu Dangwal from the NIIT Institute, is in charge of working with the villagers to monitor the project. She is also involved in a start-up called Hole in the Wall, which provides Internet kiosks to rural villagers. Dangwal’s research has starkly correlated the relationship between distance from a big city and decreasing quality of education, a graphic example of the damage done by being cut off from good information resources.

The Question Box is based on an idea from Rose Shuman, a business and international development consultant. Shuman had become frustrated that with all the clever people and vast sums of money going into information technology, few were developing low-cost ways to take the power of computers to the people.

“The best thing about this project is that it’s very tangible,” she told the Daily Telegraph newspaper. “It’s not a big infrastructure. You have a box you can see and touch, and a call log of every question.”

By David South, Development Challenges, South-South Solutions

Published: April 2008

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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