Old Adage Gets New Life

 

Education is recognized as critical for development and improving people’s lives. Universal primary education is a Millennium Development Goal and countries are now allocating more funds for primary education across the global South. However, the options available to youth after primary education are often very limited.

The World Bank estimates that only nine percent of youth in the developing world will be able to go to a university or benefit from higher education scholarships. For the vast majority of youth, getting a job is often the only viable option to securing a livelihood; but in most developing countries the number of formal sector jobs is low and the only option is self-employment. Acquiring relevant training and practical skills can be crucial to becoming successfully self-employed. But where will the training and skills come from and who will provide it and pay for it?

This dilemma is being addressed by the “self-sufficient schools” concept. The model combines entrepreneurship and vocational education through school-based businesses that blend training and revenue-generation. The principle is simple: entrepreneurship and entrepreneurial skills are taught by successful entrepreneurs.

The model is being pioneered in several countries and has been successfully applied by UK-based charity TeachAManToFish in Ghana and Paraguay, targeting rural youth from farming families through a network of 250 vocational experts and institutions in 45 countries. The approach promotes a model for making education both more relevant and financially sustainable in rural communities.

Self-sufficient schools share several characteristics: they produce and sell goods and services; they focus on developing an entrepreneurial culture; they make a direct connection between theory, practical work and financial reward; they encourage learning by doing; they strive to keep improving in order to remain economically competitive; students are encouraged to work cooperatively; and students receive support after graduating, often in the form of microfinance for their new businesses.

In the South American nation of Paraguay, the Fundacion Paraguaya – San Francisco Agricultural High School – run by an NGO committed to poverty reduction through supporting entrepreneurship – found that small-scale farmers not only knew how to produce food, they also knew how to make a prosperous living out of it when given the right tools. Taking over a school previously run by a religious order, the NGO had the opportunity to put the concept to the test.

The organization’s head, Martin Burt states, ”It is not a matter of knowing how to grow the crop, or raise the animal; it is a matter of how to make money and then how to be financially successful doing farming in poor countries.”

The Paraguayan school is half way through its five-year plan, and already is covering two thirds of its recurring costs from the production and sale of goods and services, including specialist cheeses.

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.  

Follow @SouthSouth1

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!    

Google Books: https://books.google.co.uk/books?id=f--jXFOkiMMC&dq=development+challenges+may+2007&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsmay2007issue

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Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

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

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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.  

Follow @SouthSouth1

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!    

Google Books: https://books.google.co.uk/books?id=f--jXFOkiMMC&dq=development+challenges+may+2007&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsmay2007issue

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

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

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

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Creative and Inventive Ways to Aid the Global Poor

 

As the saying goes, “necessity is the mother of invention”. Poverty can be a major spur to invention, and invention a route out of poverty – but only if the poor in the developing world can get the recognition, capital and support for navigating the legal and bureaucratic hurdles that will inevitably stand in their way. Thankfully many new initiatives acknowledge this.

Contrary to popular perception, the poor do have buying power, as has been documented by Massachusetts Institute of Technology (MIT) professors Abhijit Banerjee and Esther Duflo in their paper “The Economic Lives of the Poor”. Surveying 13 countries, they found those living on less than a dollar a day, the very poor, actually spent 1/3 of their household income on things other than food, including tobacco, alcohol, weddings, funerals, religious festivals, radios and TVs. The researchers also found that the poor increasingly used their spending power to seek out private sector options when the public sector failed to provide adequate services. As awareness of global poverty has grown in the past decade, a new wave of scientists, inventors and entrepreneurs has started to apply their considerable brain power to tackling the everyday problems of the poor.

Afrigadget, a website celebrating African ingenuity and inventions, serves as a goldmine for small-scale entrepreneurs looking for inspiration. All the inventions on the website share something in common: they are grassroots, homemade and handmade solutions to everyday problems of the poor. Examples of inventions profiled on the website include multi-machines, basically a 3-in-1 machine used as a metal lathe, mill and drill press, all built by hand from old car engine parts; a US $100 bicycle motor that gets 50 kilometres per liter made in Kisumu, Kenya; hand-made African wire toys; do-it-yourself telephone handsets which are then used to run roadside phone booths as a small business; and Malawian homemade windmills used to generate electricity for both home use and as a business to recharge mobile phone and radio batteries.

Another African invention tackles the urgent need for inexpensive or free common toilets that are self-financing. In the Kibera slum of Nairobi, Kenya, where 60 percent of the city’s inhabitants live, the lack of decent toilet facilities has led to the widespread use of so-called “flying toilets”, plastic bags filled with excrement and then flung as far away as possible. The resulting build-up turns the streets into a foul-smelling sludge in the rainy season and causes disease outbreaks like diarrhoea and typhoid fever. Up to now, conventional attempts to provide communal toilets have failed to resolve the problem, because they charge too much to use. But an innovative solution has been developed: bio-latrines that capture the methane gas produced by the toilets for sale as gas for cooking, heating and lighting, and the sludge for fertilizer. A joint initiative between a Kenyan company, Globology Limited, and the NGOs Umande Trust and Ushirika Roho Safi Laini Saba, it is partly funded by the Swedish International Development Agency (SIDA). The toilets are used by 500 people a day and are self-financing from the profits made by the sale of the gas and fertilizer.

In India, social entrepreneurs have stepped in to help the rural poor navigate the Indian government bureaucracy. Drishtee, an internet service provider – offers a fast-track to government services used by the poor in rural villages through its e-government services information kiosk. Using a franchise model, it has branches spread out through 160 locations in the country and serves 1.5 million people. Drishtee’s niche is that it saves the poor the exhausting and draining time and long travel normally required to access any government services. Drishtee’s “ask a government employee” service brings government to the poorest people.

Operating out of New Zealand and South Africa, Ecologics is an engineering company focused on developing appropriate technologies for sustainable livelihoods in developing countries. All their inventions are built around the principles of low maintenance and costs, and ease of use. Its African operations are based in South Africa and run under the Black Economic Empowerment (BEE) scheme. It builds step powered pumps, the Step Action Water Pump which works just like a gym step exercise machine and is a highly efficient way to power the pump – for small scale mining and agricultural irrigation. The pumps can deliver 5,000 to 6,000 litres of water per hour, weigh just 11 kilograms, and have been field tested in Fiji, Lesotho and South Africa.

By David South, Development Challenges, South-South Solutions

Published: April 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.  

Follow @SouthSouth1

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!    

Google Books: https://books.google.co.uk/books?id=T2V2VMuJuQEC&dq=development+challenges+april+2007&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsapril2007issue

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

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

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

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Innovation from the Global South

 

A major study has documented a rising tide of scientific innovation coming from Asia’s fast-developing countries, especially India and China. Conducted over 18 months by UK-based think tank Demos, it challenges the conventional wisdom that scientific ideas come from the top universities and research laboratories of large companies based in Europe or the US. It found ideas emerging in unexpected places, flowing around the world conveyed by a mobile diaspora of knowledge workers from the South.

China has seen its spending on research and development jump by 20 percent each year since 1999. India is now producing 260,000 engineers a year and its number of engineering colleges is due to double to 1,000 by 2010. Research and development in India has grown by threefold over the past decade. There is now a global flow of research and development money to the new knowledge centres of Shanghai, Beijing, Hyderabad and Bangalore.

The study found the greater political and economic emphasis being placed on science and technology was paying dividends. These emerging science powers are now investing heavily in research to become world leaders in information technology, biotechnology and nanotechnology within the next ten to fifteen years. This is also producing a flood of scientific papers from China and India to the world’s prestigious scientific journals.

For India, its knowledge-based industries by the end of this year will be a US $57 billion export industry, accounting for 4 million jobs and 7 percent of Indian GDP. Interestingly, the study also found a new wave of change is underway. Where once it was mostly low-wage manufacturing and call centre jobs that were going to China and India, a new wave of research and development jobs is now moving there. Drawn in by technology clusters in Shanghai and Bangalore, “Microsoft began to realize we can’t find all the talented people in the US. Nowhere in this universe has a higher concentration of IQ power (than India),” said Harry Shun, head of Microsoft’s research in Asia.

By David South, Development Challenges, South-South Solutions

Published: April 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.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=T2V2VMuJuQEC&dq=development+challenges+april+2007&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsapril2007issue

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Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

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

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Carbon Credits Can Benefit African Farmers Thanks to New System

The global carbon credit trading schemes emanating from the Kyoto Protocol are now creating a multi-billion dollar market – the European carbon market was worth €14.6 billion in 2006 – and represents one of the fastest growing business opportunities in the world. Being green has finally come of age. Yet all the benefits of this are largely bypassing Africa despite more than 70 percent of the continent’s inhabitants earning a living off the land.

The World Agroforestry Centre – whose mission is to advance the science and practice of agroforestry to transform the lives and landscapes of the rural poor in developing countries – in partnership with Michigan State University has developed a method using satellite imagery and infrared sensing that measures carbon storage in African farmland. They have completed a pilot programme in western Kenya and are ready to encourage poor farmers to plant trees as soon as the European Union allows carbon credits under the Kyoto Protocol to be awarded for this kind of scheme. Further pilot projects will be rolled out in 2007 in partnership with CARE International and the WWF.

But European Union policies on carbon credits are holding back this significant opportunity to enhance African livelihoods. Europe’s Emissions Trading Scheme (ETS) is at present not willing to recognize the new method of verifying carbon storage in farmland. The ETS is the largest multi-country, multi-sector greenhouse gas emission trading scheme in the world. The issue of carbon storage, or carbon “sinks” as they are known, is very controversial in the world of Kyoto agreement implementation. Non-government organizations that advocate for forests and indigenous people have worked hard to exclude the use of forestry credits to offset fossil fuel burning, arguing that forestry offsets to date have been for big monoculture plantations of fast-growing eucalyptus or pine trees. It is claimed they are net carbon emitters over their lifetimes and also cause additional environmental and social problems.

But the World Agroforestry Centre’s approach is very different from a monoculture plantation. Their scheme is to help rural Africans to integrate more trees into their agricultural production systems, with benefits besides storing carbon. They argue that the right kinds of trees can increase the productivity and resilience of the land. Trees provide food, fuel, fertilizer, and medicine – medicinal trees are the main source of medication for 80 percent of Africa’s population.

Louis Verchon, the lead scientist for climate change at the World Agroforestry Centre, believes that if the EU would put in place a new scheme to credit farmers who capture carbon in their land, “millions of dollars in carbon credits could begin flowing to the world’s rural poor.” At present, Verchon says two-thirds of the carbon credit business is being captured by Asian countries who are mostly offering industrial solutions. “Africa has something to offer on this – it can’t compete with the likes of South Korea on industrial solutions, but it has plenty of land.”

In order to make the scheme work, two things will need to be improved: Africa’s institutional weakness and the paucity of qualified carbon credit verifiers. A network of verifiers would be required to inspect farm sites and make the calculations required to allocate carbon credits to poor farmers. At present, there are no qualified African-born verifiers in Africa according to Verchon.

The WAC are working with WWF and CARE to build up NGO capacity and start demonstration projects to prove it can work – two pilot projects are already up and running in Kenya. They are also automating much of the process by building a web portal.

Verchon says the WAC “are in it for the long-haul and we will see this grow over the next ten years.”

By David South, Development Challenges, South-South Solutions

Published:  January 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.  

Follow @SouthSouth1

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Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

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Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

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

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