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Thursday
Jun252015

Indian Entrepreneur Brings Dignity to Poor Women

 

Driven by the revelation that his wife was torn between spending money on milk for the children and buying commercially manufactured sanitary napkins, Indian innovator and inventor Arunachalam Muruganantham embarked on a long and intensive journey to find a solution. His achievement – a simple machine – is bringing dignity to poor women and providing them with a much-needed income source.

This is a story of a man who was considered crazy for his persistence and made many personal sacrifices to achieve his goal. The innovation is both a technological and a business solution. Muruganantham has come up with a simple machine to manufacture affordable hygienic sanitary napkins for poor women. It works by turning the pulp of pine wood into the flat, white sanitary pads (http://en.wikipedia.org/wiki/Sanitary_napkin) commonly used by women during their monthly menstruation. The machine’s simplicity means it can be expanded easily to other communities and is designed to fit well with the way women’s cooperatives work and help them earn an income.

Muruganantham sees it is a business model that “can deliver livelihood, hygiene and dignity to poor women, and help them strengthen society,” according to his website.

The manufacturing process produces the sanitary napkins in just five steps. This simple intervention is revolutionizing women’s health in India by giving them an alternative to using found and unhygienic rags every month when they menstruate.

It took Muruganantham four years of research to create a patented machine that sells for between US $1,332 and US $5,330. It can make 120 sanitary pads an hour. Each one sells for 10 rupees (US 18 cents). By comparison, the multinational company Procter & Gamble sells its product for 30 rupees (US 54 cents) a packet.

Two multinationals dominate the marketplace for sanitary napkins in India: Procter & Gamble and Johnson & Johnson, with the Stayfree and Carefree brands.

Muruganantham’s machine was awarded the best innovation national award by the former President of India, Prathiba Patil, in 2009.

Like many innovators and inventors, his work at first was little understood by others and meant he had to plough a lonely furrow. But his persistence paid off and is now receiving attention from countries across the global South.

Apart from its technological simplicity, the idea is to make it easy for women to form cooperatives and businesses to boost their incomes. India has seen the concept of so-called Ladies Self Help Groups (SHGs) (http://en.wikipedia.org/wiki/Self-help_group_%28finance%29) become more popular as a source of income. One of the problems they encounter is finding a successful business to undertake. The machine invented by Muruganantham is being seen as a good business model for the SHGs to follow. The key is the simplicity of operating the machine, the growing and stable market for the product, and its affordable and competitive price.

Typical businesses that can be set up using the machine can employ 10 women.

Muruganantham set up his main business, Jayaashree Industries (motto: ‘new inventions… small is beautiful’) (http://newinventions.in/aboutus.aspx), after his education was disrupted due to family problems and he took up a job in a welding shop.

At first, he had a difficult time convincing people of the utility of the machine. He enlisted his wife to help with the marketing of the new napkins to nearby women. He says the advantage of his business model is that it turns the making of the napkins into a sustainable, grassroots activity. It provides an essential commodity for poor women at an affordable price, removing middlemen and using a simple, non-chemical technology.

It also cuts down on expensive transport costs by keeping manufacturing local.

Over 225 machines have been delivered to 14 Indian states and also to Nigeria, Ethiopia, Kenya, Uganda, Nepal and Bangladesh.

And while Muruganantham is focused on making the machine a success, he is already looking forward to working on his next big invention. The only question is: what will it be?

By David South, Development Challenges, South-South Solutions

Published: July 2012

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=9fRcAwAAQBAJ&dq=development+challenges+july+2012&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challenges-july-2012-issue

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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Thursday
Jun252015

Microwork Pioneer Transforms Prospects for Poor, Vulnerable

 

A pioneering technology social enterprise has found a way to connect people around the world to the new digital economy, transforming their lives and providing long-term employment opportunities. It is closing the digital divide in a very practical way, teaching new skills and, most importantly, providing income to the poor and vulnerable.

The San Francisco, USA-based non-profit social enterprise Samasource (samasource.org) uses what it calls microwork – a virtual assembly line of small tasks broken down from a larger project so they can be completed over the Internet – to outsource work to its network of workers around the world.

The tasks in this virtual piecework range from writing to transcribing to organizing online content.

The company organizes the projects using its own online work distribution system connecting workers around the world to the SamaHub in San Francisco. Most of the workers are women, youth and refugees. When they complete their task, it is sent back to the SamaHub in San Francisco where the staff check it and assure its quality. Once approved and completed, the project is returned to the client.

The company was founded in 2008 and draws on experts in “distributed work, economic development, and outsourcing.”

The microwork is divided into three areas: content services, data enrichment and transcription.

Content services can include writing descriptions for online business listings, organizing large databases on information or creating brief descriptions of existing content to make it easier for search engines to find it. “Data enrichment” tackles the vast quantity of information on the Internet that needs to be kept up to date and reliable. It also includes ‘tagging’, where text or images on the Internet need to have appropriate ‘tags’ or labels. And finally, transcription services include digitizing paper documents like receipts or books or transcribing audio and video files for the web.

All these tasks are labour intensive and require high attention to detail. And they are critical to any online business’s success if it wants a reputation for accuracy and consistency.

Samasource is optimistic about its future potential because of the sheer size of the market for business process outsourcing: estimated to be worth over US $100 billion. What Samasource does, called ‘impact sourcing’ – outsourcing to people in the developing world living in poor or remote communities – is a market worth US $5 billion, according to Samasource’s website.

It differs from conventional business process outsourcing in a number of respects, including the educational background of the workers. Most conventional outsourcing goes to college graduates in cities in India, China and the Philippines. Impact outsourcing is done by people with at most a high school education.

The digital economy needs these workers to handle the many millions of detailed tasks required to link together information. It is easy to take this for granted because it is hidden from view, but it is what enables the Internet to function and businesses to thrive. Samasource provides outsourcing services including content moderation and data entry to clients like LinkedIn, Intuit and the US State Department.

“We bring dignified, computer-based work to women, youth, and refugees living in poverty,” said Samasource’s founder and chief executive officer, Leila Janah.

Janah has a background in development studies and formerly worked for the World Bank. This experience convinced her that much foreign aid was failing to target what poor people are really looking for: a job that pays well.

Samasource sees what it does as work, and not handouts.

It also believes it is changing perspectives, proving people from the poorest places on earth can become trustworthy, hard-working knowledge workers.

The Internet is a unique medium because it transcends borders and smooths contact between people with varying linguistic, cultural and educational capabilities.

“The Internet reduces the friction of collaboration across all of these centres and time zones, and with a highly distributed workforce,” said Janah.

Samasource claims to have paid out US $1 million in wages to more than 1,500 workers around the world. Ambitiously, it wants to expand this to reach some of the 144 million youth between 16 and 24 living on less than US $2 a day.

Youth are a particular focus for Samasource. Samasource targets young people who are literate and have received an education but still can’t get a job.

As for the many women employed by Samasource, they were either unemployed or earning poverty-level wages doing precarious work in low-level manufacturing and not building their skills.

Samasource currently has 16 partnerships in Haiti, India, Pakistan, Kenya, Uganda and South Africa. Criteria to work with Samasource includes being in a high-poverty region. Another criteria is for most of the money earned to stay within the region where the work is done and adhere to the standards laid down by Samasource.

Samasource’s success means it has attracted further funding. In December 2011, it was given a US $1.5 million grant from Google.org – the Google.com search engine’s charity. It has also raised US $5 million from non-profit investors, including the Ford Foundation, the Rockefeller Foundation and the eBay Foundation. The challenge for the Samasource model will be to prove, with this new funding, that it can scale its operations to pay out more to its workers than it is taking in to meet its operating costs.

Microwork is turning out to be big work indeed!

By David South, Development Challenges, South-South Solutions

Published: January 2012

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=qLYTxcC8HgcC&dq=development+challenges+january+2012&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsjanuary2012issue

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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Wednesday
Jun242015

Indian City Slum Areas Become Newly Desirable Places to Live

 

 

With India’s urban economy experiencing rapid growth, its slums – once seen as the most undesirable places to live in the country, if not on Earth – are attracting the attention of affluent residents and developers inIndia’s rapidly expanding cities. The prosperity inIndia’s cities has made these areas’ proximity to business and entertainment zones highly desirable. In turn, this has led to slum dwellers either upgrading their homes and in the process boosting their value, or being offered the opportunity to sell their rudimentary dwellings to real estate agents and property developers.

For some, this could be a great leap forward in income and opportunity; for others, it could mean exploitation and hard choices, weighing up the cash boost against moving out of the slum area.

How to best handle slum areas in urban and peri-urban communities will be a major challenge for most countries in the South as they continue to urbanize.

India’s phenomenal economic growth rate – forecast to be 7.9 percent this year by the Asian Development Bank, after averaging 7.7 percent per year over the past decade – has been the force behind an expanding middle class population, now estimated at 50 million people (McKinsey). Forecasts see it swelling from 5 percent ofIndia’s population to 40 percent by 2025.

With 30 percent of the population living in urban areas and cities contributing 60 percent of the country’s GDP and 90 percent of government revenues (Wall Street Journal), city-dwellers’ fate is critical to the functioning of the economy.

According to the 2001 Indian census, slums make up 25 percent of all housing and 26 percent of urban households lack access to sanitation facilities.

But Indu Prakash Vaidya, a 32-year-old housewife, is part of new trend in India’s city slums. Vaidya lives in a small shanty house in Mumbai with no running water, no sewage services and a jerry-rigged electrical connection.

Vaidya’s home is a just a single room for the five people in her family. They sleep on the cement floor and the ‘kitchen’ is a two-burner gas stove. The dwelling is so poorly constructed that they have to move around inside the room when it rains outside to avoid getting soaked.

But her humble home has been valued at US $24,000 by people looking to buy it.

According to real estate agent Hari Ram, the average price of a 91 square metre shanty home in Mumbai is now US $46,000.

“Shanties as small as 120 square feet… are as expensive as US $93,000,” Dinesh Prabhu, a construction company owner, told NDTV television.

Sixty percent of Mumbai’s 21 million people live in slums. And many are now finding themselves the subject of a property boom. This has led to the bizarre spectacle of luxury high-rise buildings sprouting up in a sea of slum housing. The slums are attracting the attention of those with money because many busy city workers face long commutes and are desperate for homes closer to work and entertainment areas.

The value of living close to the action is summed up by one slum dweller:

“People would kill to be in a place like this,” said slum dweller Sundar. “There are four local train stations close by. And the bus stop is a stone’s throw away.”

Some say this real estate boom offers enormous potential for the poor.

“All I can say is, given the current real-estate rates, those slums are invaluable,” said Sharad Mahajan of the Pune-based nonprofit organization Mashal (http://mashalindia.org).  Mashal focuses on the problem of urban shelter and also implements housing projects. It has been working in the Dharavi slum area with theMaharashtra government on its redevelopment. The slum is well-known for its representation in the film Slumdog Millionaire, and the area is next to the Bandra-Kurla Complex business district of Mumbai. Mashal has been mapping the area, home to 60,000 families, to make sure the redevelopment is fair to the families living there.

Land tenure is an issue however. Many slum dwellers do not have official title to the land they live on. Over time, they have become semi-official places to live as governments have hooked many up to electricity and drinking water. Issues of corruption and exploitation are also other problems that need addressing if this real estate windfall is to actually benefit slum dwellers.

Typical slum dwellers are day labourers and poor migrants. But others are people who good easily afford to live somewhere else but don’t want the long commutes to work.

“It is simpler and less expensive to live here,” said Sankaralingam, a plastic merchant, who estimates his annual income at around US $9,300: an amount that could get him a home somewhere nicer.

For Indu Prakash Vaidya, the dilemma – to sell or not to sell – makes for some painful choices. While her current home is prone to flooding during the rainy season, she feels she would have nowhere else to go if she sold the home.

Yet the pressure to sell is great and elemental.

“I have three children, and their education and well-being need to be taken care of. Financial constraints can push me to sell this shanty in the future, then where will I live? I will have nowhere to go,” she told NDTV.

By David South, Development Challenges, South-South Solutions

Published: December 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

Google Books: https://books.google.co.uk/books?id=Ps0RezX0QbAC&dq=development+challenges+december+2011&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsdecember2011issue

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 Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Wednesday
Jun242015

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.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=-k6YBgAAQBAJ&dq=development+challenges+march+2011&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsmarch2011issue

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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This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Tuesday
Jun232015

Açaí Berry Brazil’s Boon

 

A formerly obscure berry from the Amazon rainforest in Brazil has become a global marketing success. The açaí berry – a dark, small fruit similar in appearance to blueberries – has surged in popularity around the world and brought newfound prosperity to poor communities.

The açaí berry (http://en.wikipedia.org/wiki/Açaí_Palm) has seen its popularity take off because of its purported antioxidant properties (http://en.wikipedia.org/wiki/Antioxidants). It is marketed as a way to reduce cancer and heart disease, although hype has sometimes portrayed the benefits to be higher than scientific studies have found. But whatever the truth of the berry’s overall health-giving properties, it has become an economic success story in Brazil.

A rapid success story – açaí was first exported from Brazil after 2000 – the berry is now sought by health-conscious consumers and the diet industry for its antioxidant properties and slimming effects.

Harvesting the berries is providing poor communities with an alternative source of income in the Amazon rainforest (http://en.wikipedia.org/wiki/Amazon_Rainforest). And the successful marketing and selling of the berries offers a good example to others trying to improve profits for agricultural products from the South.

Prior to its global popularity, a bowl of açaí berries was a staple for poor families in some parts of Brazil. The pulp is traditionally eaten as a side dish. It is a common sight in Brazil to see street vendors or shops selling crushed açaí pulp. Trendier places in Rio de Janerio sell sweetened açaí berry smoothies. In Belem, the capital of Para State, two ice cream chains sell açaí flavoured ice cream. A white and purple swirl of açaí and tapioca is a common favourite. Other treats include açaí candy and açaí tarts in bakeries.

Some claim the taste of the berry when sweetened is earthy, while left in a natural state it is more grassy. The berry grows wild on palm trees lining rivers or on farms.

Orisvaldo Ferreira de Souza is an açaí farmer on the island of Itanduba, an hour by boat from the town of Cametá, population 117,000. Açaí harvesting has become the main livelihood for many families in the area. Orisvaldo harvests açaí from 8,000 palm trees on a 14 hectare farm.

“Two or three years ago, we had a lot of trouble selling the product,” he told the New York Times. “We had to bring it to town, and sometimes we came back without selling it.”

But times have changed and the buyers now come to the farmers.
“Just yesterday, six buyers came by,” he said. “We sold 10 baskets each to two of them.”

At the CAMTA cooperative (http://www.camta.com.br/companyE.htm) in Tomé-Açu, a town with a population of 40,000, the berry is a significant source of income. The co-op’s director, Ivan Saiki, notes the boost to local incomes: “Before the boom, the harvest came and the açaí was worth practically nothing. Before, nobody had television, nobody had a motorized canoe. Now many have their own electricity at home. It’s greatly improved the life of the river communities.”

The co-op has a fruit pulp processing factory to improve the profits for the farmers and, by controlling quality, raise the reputation for their products. In order to avoid over-dependence on one commodity, the co-op members grow many other fruits as well, including papaya, mango, lemons, and local favourites abrico, uxi and bacuri.

Another initiative is Sambazon (Sustainable Management of the Brazilian Amazon) (www.sambazon.com). This small company, founded in 2000, combines business with a partnership to ensure local communities benefit from the berry’s success story. Sambazon buys the berries from over 10,000 people in the Amazon and is certified organic (http://www.organicfarmers.org.uk). Through its SAP (Sustainable Amazon Partnership), over 1,100 local family farmers are able to harvest açaí berries as an alternative income source to logging, cattle ranching and monoculture plantations – all of which are threats to the Amazon rainforest. The company sells a range of products, from sorbet to supplements to juices and energy drinks. It also uses athletes to promote the products and encourage a healthy lifestyle.

Other companies like Açaí Roots (www.acairoots.com) – founded by three Brazilians in Rio de Janerio – also associate the product with an overall healthy lifestyle. It sells drinks, smoothies, energy shots and liquid concentrate. Founded in 2005, it is selling the concept of the healthy Brazilian lifestyle and proudly claims its founders “were born and raised on açaí.”

By David South, Development Challenges, South-South Solutions

Published: May 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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