Innovations in Green Economy: Top Three Agenda

By David South

southasiadiasters.net December 2013

The transition to a green economy has reached a crossroads: while multilateral global initiatives have been long-running and complex, the idea of a green economy still seems fragile and achieving it far from certain. In the face of the ravages of the global economic crisis that has raged since 2007/2008, countries are now trying to roll back their green pledges or slow the pace of transition.

This exposes a dilemma: a perception that a green economy is in conflict with economic growth, prosperity and the advance of human development, particularly in developing countries seeking to make rapid gains in reducing poverty and building a middle class, consumer society.

Three things need to be foremost in the minds of those who care about creating a global green economy in the 21st century: innovation in design, in market prices and in business models. I think these three factors will be the deciding elements in whether green technologies are taken up quickly and used by large numbers of people to improve their lives.

The green option needs to always be the more appealing, cheaper option that also improves living standards. Happily, many people are doing this all around the world - you just may not have heard of them yet (unless you are reading Southern Innovator magazine that is).

As editor of the magazine Southern Innovator since 2011, I have had the privilege to meet, interview and see first-hand green economy innovators across the global South and profile them in the magazine. What has stood out for me is this: the ones who have achieved sustainable success have put a great deal of effort into design - how the technology is made, what it looks like and how it is used, how efficiently it is made and distributed - while also thinking through the business case for their work and how to make it appealing to others.

We have tried to apply this thinking to the magazine as well, by using clear and modern design with bright, eye-pleasing colours, and by choosing to use 100 per cent renewable energy (much of it from geothermal sources) for the magazine’s design and layout and to have it printed on paper from sustainable forest sources.

The fourth issue of Southern Innovator (www.southerninnovator.org), on cities and urbanization, launched in October at the Global South-South Development Expo 2013 in Nairobi, Kenya. It profiles many practical initiatives and innovators that are currently building green homes, communities and even whole cities. The magazine’s fifth issue will focus on the theme of waste and recycling and hopes to be a one-stop source of inspiration to better use the finite resources of planet earth.

- David South, Editor, Southern Innovator
United Nations Office for South-South Cooperation (UNOSSC)

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Mongolia Looks to Become Asian IT Leader

A Mongolian information technology company founded by a woman has shown a way to thrive in the country’s often-chaotic economic environment. With the global economic crisis moving into its third year, Intec’s strategies to survive and thrive offer lessons for other IT start-ups in the South.

While the global economy’s prospects are still uncertain, on the positive side, many believe the best place to be is in emerging economies like Mongolia, with some foreseeing healthy growth for the next 20 to 30 years. Mongolia’s information technology entrepreneurs are looking to prove this is the case. The country has made great strides in improving e-government – jumping from 82nd place to 53rd in the UN e-government survey 2010 (http://www2.unpan.org/egovkb/global_reports/10report.htm) – and is now aiming to become an Asian software and IT services outsourcing powerhouse.

A Northeast Asian nation (http://en.wikipedia.org/wiki/Mongolia) sandwiched between Russia and fast-growing China, Mongolia grapples with the combination of a large territory, a small population (2,641,216) and limited transport infrastructure connecting it to its neighbours. Historically, it is a nomadic nation with a strong animal herding tradition. But during the Communist period, it industrialized and became more urban. After the collapse of Communism at the beginning of the 1990s, the country experienced a terrible economic and social crisis, with rapidly rising poverty rates and high unemployment.

Despite its infrastructure obstacles, Mongolia has been able to develop a lively information technology sector, often with the assistance of the United Nations. During the late 1990s, as the internet revolution exploded, the UN led on supporting infrastructure, skills development, innovation and legislation.

Information technology consulting and services company Intec (www.itconsulting.mn), founded in 2004, has been able to thrive through the global economy’s ups and downs by identifying an under-serviced niche as a consulting, research and training company. Intec now has five full-time staff and works with a broad network of Mongolian and international consultants.

As is often the case with new businesses, Intec initially found that many doors were closed to start-up enterprises.

“The major challenges which I faced were to make people understand about the consulting services,” said Intec’s founder, Lkhagvasuren Ariunaa. “The consulting services concept was new to Mongolia and Mongolians at that time and not many organizations were willing to work with consulting services. The international and donor organizations were keen to work with consulting services companies; however, they were requiring companies to have a list of successfully implemented projects, which was difficult for a new starter like Intec.

“For example, registering with the Asian Development Bank consulting services database required companies to be operational for at least three years. So, we got registered with ADB consulting services database only in 2008. Meanwhile, personal connections and communication skills helped to find jobs and opportunities for Intec.”

Ariunaa had worked for the Soros Foundation (http://www.soros.org/) but it closed its offices in Mongolia in 2004. Faced with unemployment, Ariunaa went about seeing what she could do next: a dilemma many people face in today’s economy.

“It took me about eight months to develop a business plan and directions of operation of the company. I started in a big room at the national information technology park building with one table, chair and computer.

“It has been quite challenging years for bringing a company to the market and finding niches for us. We have franchised the Indian Aptech WorldWide Training center (http://www.aptech-worldwide.com) in Mongolia – may be one of the few franchising businesses in Mongolia. Currently that center is now a separate entity/company and it has over 20 plus faculty staff and over 300 students.”

Ariunaa had been active in the sector for over 10 years, but while knowing many of the players and organizations, she spent time researching what niche Intec could fill in the marketplace.

“Looking at the ICT market, there were quite a number of internet service providers, mobile phone operators, a few companies started developing software applications, and services etc. However, there were only two to three consulting companies in the ICT sector which to my knowledge at that time were providing consulting services, and still there was a room for Intec.”

Intec then focused on three areas: consulting services, training and skills, and research. Intec found they were pioneering a new concept in Mongolia.

Intec’s first contract was a job with the University of Milwaukee-Wisconsin in the United States to organize a three week course for American students to learn about the digital divide in Mongolia. But the global economic crisis hit Mongolia hard in 2009.

“It was challenging to survive and continue working the same way,” Ariunaa said. “There were few ICT-related jobs in Mongolia at that time, and one of our major clients left Mongolia and we had to find other clients in the market.

“One of the ways of approaching this was that we were not asking for fees, instead we would have a barter agreement – we will deliver them services and they will provide some services for us. For the company itself, we needed to find ways of financing and covering costs for renting of premises, paying salaries for staff on time, paying taxes and other expenses.”

The environment in Mongolia is being helped by the Information and Communications Technology and Post Authority (ICTPA) of Mongolia (http://www.ictpa.gov.mn) , which has been driving forward an e-Mongolia master plan. With 16 objectives, it ambitiously seeks to place Mongolia in the top five of Asian IT nations, competing with South Korea, Singapore, Japan and China.

Ariunaa believes Mongolia has many competitive advantages. “Mongolia is known for a high-literacy rate and math-oriented training and education, and ICT specialists are targeting to become a software outsourcing country for other countries. Another advantage of Mongolians is that they can easily learn other languages: we are fluent in Russian, English, Japanese, Korean, German and we believe that with these two major advantages, we will be able to do a good job with outsourcing of software development.”

While men still dominate the ICT sector in Mongolia, Ariunaa has not found being a woman a disadvantage. “In Mongolia, as gender specialists say, there is a reverse gender situation. Women are educated, well-recognized and well-respected. There were situations, when I was the only women participant in the meeting with about 20 men. But I never felt somewhat discriminated or mis-treated and I think that’s the overall situation towards gender in Mongolia.”

Intec’s success working with Aptech WorldWide Training’s franchising contract brought many advantages for a start-up. “It’s a faster way to do things, and you don’t have to re-invent the wheel.”

As a Mongolian company, Intec has found it best to play to its local strengths. “National companies have knowledge, expertise and experience of local situations, know players and understand about legal, regulatory matters. … partnership or cooperation are one of the means of cooperating with big global players.”

Intec’s success is also down to Ariunaa’s enthusiasm: “It’s fun and I love doing it – just usually do not have enough time!”

By David South, Development Challenges, South-South Solutions

Published: July 2010

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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Popular Characters Re-invent Traditional Carving

The popular cartoon characters from the long-running series The Simpsons are breathing new life into traditional African stone carvings.

A traditional craft in many cultures, carving adds value to local resources and provides an excellent source of income for local artisans and entrepreneurs. While wood or stone carvings are a popular tourist souvenir throughout Africa, Asia and Latin America, most carvers stick to traditional subjects.

However, a group of villagers in western Kenya have transformed their economy by swapping carvings of elephants and Cleopatra for Homer, Marge and Sideshow Bob.

According to the book Carving out a Future by the Centre for International Forestry Research (CIFOR), carving exports from the island of Bali in Indonesia total US $100 million per year. India’s industry is worth US $65 million. In Oaxaca, Mexico, carvings earn US $2,500 per household, increasing access to education and health. In Kenya, carving involves more than 60,000 people and provides household income for more than 300,000. In some communities in South Africa, households can earn between US $500 and US $2,000 per year from carvings – 80 per cent of a household income.

Research into carving has identified several factors that are critical to maximising profits: quality is critical, and the best woods and stone must be used. Diversity is an important element: too much of the same thing being made available damages the market. And sustainability: the wood and stone resources must not be used up.

It is this novelty and diversity that The Simpsons carvings address. By tapping into the global market for official licensed merchandise, the Tabaka carvers of the Abagusi tribe – well-known carvers in western Kenya – have significantly increased their income. And they are cashing in on the global popularity of the first Simpsons movie released this year.

Tabaka is a village three hours by bus from Kenya’s capital, Nairobi. In Nairobi, the carvers would sell their soap stone carvings to middlemen, often for a pittance compared to what they would in turn charge tourists. Negotiations with these vendors could take days and waste the precious income of the carvers as they waited around for the deal to come through.

Craft Village UK has organised the carvers to produce Simpsons statuettes for the worldwide market. The carvers were able to win the official merchandise license from The Simpsons’ owners, Twentieth Century Fox, after its vice-president saw a video of the carvers. They were initially awarded the license to craft 12 of the show’s characters for the US and UK markets, but last month they gained the worldwide license.

Craft Village’s founder, UK-based Paul Young, had the idea three years ago when his sister returned from living in Uganda with soap stone carvings. Impressed by the quality of the workmanship, he thought they would sell better in a western market if they reproduced popular images from films and TV. In 2005, he made contact with the carvers through a crafts company in Nairobi. He sent initial plastic figurine models and photos to help the carvers get the statues right. He flew to Kenya in 2005 to meet the carvers for the first time and video the carving process.

Initial prototypes were too heavy and some would break. And it took 12 months of trial and error to get the quality high enough to approach Twentieth Century Fox.

“Familiarizing the carvers with The Simpsons was difficult,” said Young. “Making the carvers understand the importance of quality control and the need for benchmark standards and uniform carvings was – and still is – a challenge.”

“I don’t know who they are,” said Pauline Kemunto, who helps her husband with the carvings. “But I like them because I earn from them.”

In a community known for growing bananas, David Atang’a, master carver and former soldier, supports five children. “If this Simpsons project succeeds, I hope to educate my children in university,” he said.

Two groups of 15 members each are divided between Tabaka Master Carvers and Tabaka Classic Carvers. Women take over and wash, polish and shine the pieces. Each piece is numbered and signed (Craft Village UK products).

The carvers now make 450 Kenyan shillings per statue (UK £3) – between four and six times what they would have got for a traditional carving. Where work before was sporadic, it is now regular and employs 80 people. The extra income means the carvers can now send their children to secondary school.

Enosh Onsombi grew up with no electricity and no television. But since the community started carving the Simpsons characters, “Life has changed so much,” he told The Independent newspaper. “The Simpsons has changed everything.”

By David South, Development Challenges, South-South Solutions

Published: October 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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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.  

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