Food Inflation: Ways to Fight It

Food inflation has taken off at the beginning of 2011. As the global economic crisis enters its next phase, both developed and developing countries are experiencing inflation. There are many factors fuelling the rise in prices – inefficient distribution and storage systems, lack of investment in agriculture, devaluing currencies, high demand, natural and man-made disasters, use of food products like corn to make biofuels – but there are also ways to counter the effects of food inflation that have been tried and tested across the South.

The United Nations Conference on Trade and Development (UNCTAD) says the least developed countries spent US $9 billion on food imports in 2002. By 2008, that amount had risen to US $23 billion. Supachai Panitchpakdi, secretary general of UNCTAD, says “the import dependence has become quite devastating.”

Worse, more people had less money to buy the food. The number of individuals living in extreme poverty “increased by 3 million per year during the boom years of 2002 and 2007,” reaching 421 million people in 2007.

For millions of people, it is a matter of life and death that food remains affordable. The poor pay the largest share of their income on food. Raise that cost, and the poor quickly have little money left for other things, like housing, transport, clothing or education.

Approached as a problem needing a solution, it is possible to deal with a bout of food inflation. Every food crisis has its origins and can be resolved. A staggering amount of food goes to waste every year, and a vast quantity can’t get from the farm to the market in time because of infrastructure problems.

An Indian refrigerator – the ChotuKool fridge (http://www.godrej.com/godrej/godrej/index.aspx?id=1) – is designed to stay cool for hours without electricity and to use half the power of conventional refrigerators. Priced at US $69, it is targeted at India’s poor – a population of over 456 million, almost half the total Indian population (World Bank).

Manufactured by Godrej and Boyce and weighing just 7.8 kilograms, it is designed around the stated needs of the poor, who wanted a fridge capable of cooling 5 to 6 bottles of water and 3 to 4 kilograms of vegetables. Portability was crucial as well, since needs to be moved when large family gatherings take place in small rooms.

As a photo shows (http://innovation.hindustantimes.com/summit-photos/godrej/chotukool-3.php), the fridge looks more like a drinks cooler than the typical large refrigerator. It works by replacing the standard compressor motor found in most fridges with a battery-powered heat exchanger.

In Ghana, a mobile phone-driven Internet marketplace is helping to improve efficiencies in farming and selling food. Esoko (esoko.com/#lang=en), tracks products including ground nuts, sesame, tomato, maize and white beans. It offers market information from Afghanistan, Benin, Burkina Faso, Cameroon, Cote d’Ivoire, Ghana, Madagascar, Mali, Mozambique, Nigeria, Sudan and Togo.

India’s e-Choupal is making food distribution more efficient in a country experiencing high inflation. E-Choupal (http://www.echoupal.com) has developed a reputation for both controlling prices and increasing incomes for poor farmers. Started in 2000 by the major Indian company ITC Limited (http://www.itcportal.com), it links farmers to the latest prices for products including soybeans, wheat, coffee and prawns.

E-Choupal works through computers set up in rural areas and has built one of the largest internet initiatives in rural India, reaching 4 million farmers in 40,000 villages.

Brazil, over the last 30 years, has transformed itself from a food importer to one of the world’s major food exporters. It made these impressive achievements with few government subsidies. The agricultural success is down to Embrapa (http://www.embrapa.br/english) – short for Empresa Brasileira de Pesquisa Agropecuária, or the Brazilian Agricultural Research Corporation. A public company set up in 1973, it has turned itself into the world’s leading tropical research institution. It breeds new seeds and cattle and has developed innovations from ultra-thin edible wrapping paper for foodstuffs that turns colour when the food goes off to a nano-tech lab creating biodegradable ultra-strong fabrics and wound dressings.

Another approach can be found with a farmer in Kenya, Zack Matere, who boosted his potato crop by turning to Facebook for help. On his farm in Seregeya, Matere used the internet to find a cure for his ailing potato crop.

He uses his mobile phone to access the internet at a costs of about US 0.66 cents a day. One example of the kind of intelligence Matere is able to glean from the internet is reports of cartels deceiving farmers by buying potatoes in over-large 130 kg bags instead of 110 kg bags. Matere takes this information, translates it into Swahili and posts it on community notice boards.

Another fast-growing solution is bringing farming to urban and semi-urban spaces, where the majority of the world’s population now lives.

Urban farmers can take advantage of their close proximity to consumers, keeping costs down and profits up. They can also solve one of agriculture’s enduring problems – where to find water for irrigation by using existing waste water. Waste water is plentiful in urban environments, where factories usually pump out waste water into streams, rivers and lakes.

In Accra, Ghana, more than 200,000 people depend on food grown with wastewater. In Pakistan, a full quarter of the grown vegetables use wastewater.

Family farms are critical to weathering economic crises and ensuring a steady and secure food supply. The International Fund for Agricultural Development (IFAD) (www.ifad.org) called in 2008 for small family farms – which sustain the livelihoods of more than 2 billion people _ to be put at the heart of the global response to high food prices and uncertain food security.

In Brazil, this call is being answered by a bold initiative to create a “social technology,” combining a house-building programme with diverse family farms.

This is where the Brazilian farmer’s cooperative Cooperhaf: Cooperativa de Habitacao dos Agricultores Familiares (http://www.cooperhaf.org.br/) steps in.

“We see the house as the core issue,” said Adriana Paola Paredes Penafiel, a projects adviser with the Cooperhaf. “The farmers can improve their productivity but the starting point is the house.

“Family farming is very important for the country – 70 percent of food for Brazilians comes from family farming,” said Penafiel. “The government wants to keep people in rural areas.”

Making farming more appealing is being shown as a great way to get ahead in modern Africa. One woman hopes more people will be attracted to farming and boost the continent’s food security and reduce costly imports.

Cynthia Mosunmola Umoru’s company, Honeysuckle PTL Ventures (http://www.tootoo.com/d-c3015227-Honeysuckles_Ptl_Ventures/), is based in Lagos, the business capital of Nigeria.

Leading by example, Umoru has set up a successful and modern agribusiness focusing on high-quality food products using modern packaging and fast delivery. She produces meat products, from seafood like shrimps and prawns to snails, beef, chicken, and birds. Her niche is to deliver the product however the customer wishes: fresh, frozen or processed.

Radical new food sources are also another option over time. The Food and Agricultural Organization (FAO) has explored insect protein as a contributor to better nutrition, the economics of collecting edible forest insects, methods of harvesting, processing and marketing edible forest insects, and ways of promoting insect eating with snacks, dishes, condiments — even recipes.

The range of insects that can be tapped for food is huge, and includes beetles, ants, bees, crickets, silk worms, moths, termites, larvae, spiders, tarantulas and scorpions. More than 1,400 insect species are eaten in 90 countries in the South. Entrepreneurs in the South are making insects both palatable and marketable – and in turn profitable. These innovations are adding another income source for farmers and the poor, and supplying another weapon to the battle for global food security.

By David South, Development Challenges, South-South Solutions

Published: January 2011

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

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Innovation in Growing Cities to Prevent Social Exclusion

As of 2007, the world became a majority urban place. The largest movements of people in human history are occurring right now, as vast populations relocate to urban and semi-urban areas in pursuit of a better quality of life, or because life has become intolerable where they currently live.

A new book launched during this year’s World Urban Forum in Rio de Janeiro, Brazil highlights ways in which people across the South are shaping how their cities evolve, insisting that they will not accept social exclusion and demanding a “right to the city.”

“A lot of social initiatives based on the right to the city are coming from these ‘new cities of the South,’ said one of the book’s editors, Charlotte Mathivet of Habitat International Coalition in Santiago, Chile. “The book highlights original social initiatives: protests and organizing of the urban poor, such as the pavement dwellers’ movements in Mumbai, India where people with nothing, living on the pavements of a very big city, organize themselves to struggle for their collective rights, just as the park dwellers did in Osaka, Japan.”

This first edition of Cities for All: Proposals and Experiences towards the Right to the City, comes in three languages – English (http://www.hic-net.org/document.php?pid=3399) , Spanish ( http://www.hic-net.org/document.php?pid=3400) and Portuguese (http://www.hic-net.org/document.php?pid=3401) – is intended to inspire people to tackle positively this fast-changing urban world.

The book’s chapters span an eclectic mix of topics, from democracy in the world’s future cities to experiences in Africa’s cities, to how the 2008 Beijing Olympics affected the metropolis, to ways of involving children in urban planning.

One innovative case study included in the book is the children’s workshops in Santiago, Chile, which aim to make a more child-friendly city by including children in the planning process.

One example of the success of a child-friendly approach has been the work of the former mayor of Bogotá, Colombia, Enrique Peñalosa (http://www.pps.org/epenalosa-2/) . As mayor of the city of over 6.6 million people from 1998 to 2001, he put children to the fore in planning.

“In Bogotá, our goal was to make a city for all the children,” he told Yes! magazine. “The measure of a good city is one where a child on a tricycle or bicycle can safely go anywhere. If a city is good for children, it will be good for everybody else. Over the last 80 years we have been making cities much more for cars’ mobility than for children’s happiness.”

His term in office saw the establishment or refurbishing of 1,200 parks and playgrounds, the building of three large and 10 neighbourhood libraries and the opening of 100 nurseries for children under five. He also oversaw the creation of 300 kilometres of bike lanes, the largest such network in the developing world, created the world’s longest pedestrian street, at 17 kilometres, and turned land earmarked for an eight-lane highway into a 45 kilometre green belt path.

Cities for All’s publisher, Habitat International Coalition (HIC) (www.hic-net.org) , says it focuses on the link between “human habitat, human rights, and dignity, together with people’s demands, capabilities, and aspirations for freedom and solidarity.”

The group works towards the creation of a theoretical and practical framework for what it calls a “right to the city.”

The cities of Africa and Asia are growing by a million people a week. If current trends continue, megacities and sprawling slums will be the hallmarks of this majority urban world. Currently in sub-Saharan Africa, 72 percent of the population lives in slum conditions. And by 2015, there will be 332 million slum-dwellers in Africa, with slums growing at twice the speed of cities.

“The consequences have produced a deeper gap between the city and countryside and also within the city between the rich and poor,” said Mathivet.

“We must think of the right to the city as a lively alternative proposal,” Mathivet said, “a banner under which social movements, academics, and social organizations are struggling against the perverse effects of neo-liberalism in cities such as the privatization of land, public spaces and services, land speculation, gentrification, forced evictions, segregation, and exclusion.”

Cities for All, recently published by Habitat International Coalition, draws together thinkers and innovators in a compilation of case studies addressing the challenges of inclusive cities in the global South. The book seeks to articulate experiences of South-South cooperation and enhance the links between different regions. David South interviews the co-editor, Charlotte Mathivet.

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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Indonesian Middle Class Recycle Wealth Back into Domestic Economy

The global downturn and economic crisis is now into its third year. Economic growth has dropped across the South, as the knock-on effect of shrinking credit and slowing global markets took its toll.

One solution to re-starting growth and building up domestic industries is to target local products at the existing middle class, which in turn grows the middle class by creating better paying jobs.

Globally, 2009 saw 70 million people join the emerging-market middle class, with incomes between $6,000 and $30,000. And 1 billion people are expected to join the middle class by 2020. It has been called “the story of the decade,” by Goldman Sachs’s chief economist Jim O’Neill, who forecasts their global spending power will outstrip the developed world in two decades.

Indonesia’s middle class first began to grow in the 1980s. But rising prosperity took a heavy blow with the Asian economic crisis of the late 1990s, when the currency was devalued, pitching millions of people back into poverty.

Even so, Indonesia’s middle class is estimated to be between 35 and 40 million people (out of a population of 230 million) and they pay out roughly US $750-1000 on monthly household spending.

They are a mix of people, including professionals in management, banking, accounts, specialized law, bio-technology, engineering and other areas – all skills needed to run the market economy.

Like members of the middle class around the world, increasingly affluent Indonesians forge their identity through consumerism and lifestyle. This desire for goods and services represents a huge business opportunity. Often, this is captured by large multinational companies with long experience of selling branded goods and services.

Indonesia, however, is having great success growing its middle class despite the global economic downturn by building up the domestic market. Millie Stephanie, the director of Indonesia Tatler Magazine, told the BBC that two-thirds of the country’s economy runs on domestic consumption.

New middle class housing is springing up around the capital Jakarta. Home ownership for many, unthinkable a decade go, is now possible as banks make more loans possible. This in turn feeds into more consumption.

By turning to local products – something the Indonesian government is encouraging by increasing its own spending on local goods and services in 2010 by US $21.32 billion, according to Industry Minister MS Hidayat – a cycle is created where middle class wealth creates middle class jobs in local companies.

The department store chain of Matahari (http://www.matahari.co.id/) – the largest local department store in Indonesia – is a good example. Eighty percent of the goods it sells are made in Indonesia. The store targets the middle class with products like jeans that Indonesians can afford. And this strategy has helped Indonesia to get through the downturn.

According to Widia Augustinia, who runs the PT Inti Garmindo Persada jeans factory, the company was able to triple production despite the downturn.

“In the last few years we kept getting calls from our clients saying they had sold all our jeans and they wanted more, so we had to expand our business and had to hire more people,” she told the BBC.

One of the factory’s workers, 37-year-old Miriam, has seen her salary increase annually over the last four years while she has worked in the factory. The increasing wealth means she can now educate her children and buy a TV and a motorcycle.

This matters when half the population are living on less than two dollars a day. This recycling of middle class wealth into the Indonesian economy is making more workers become part of the emerging middle class with the jobs created.

In Africa, the Aureos Advisers (http://www.aureos.com/) private equity firm specializes in investing in African small and medium size enterprises, and is having great success with it despite the downturn. Its niche is finding and investing in companies that sell quality local products.

Run by Sri Lankan-born Sev Vettivetpillai, it raised US $150 million in 2009 to invest in Africa, much of it from pension funds.

“That’s a large sum of money in a market where raising capital is tough,” he told The Guardian newspaper.

Leverage was a game when cheap debt was around,” he says of the old private equity market that went up in flames in 2008. “Today a large chunk of growth is in emerging markets and we have proved you can invest responsibly in these markets and achieve attractive returns while paying attention to building sustainable businesses.”

And the faith in small and medium-sized African businesses has been paying off despite the economic turmoil: since most of the companies have little debt, they have not suffered in the downturn. And since many do not export much to Europe or the United States, they have not suffered from the consumer slump.

“When markets crashed 60 percent, good management teams were making sure they had cash, not much debt,” said Vettivetpillai. “Most banks don’t lend to these SMEs. And that has saved a number of those businesses. So we had an upward lift in earning growth in 2008 when many people showed a drop.”

By David South, Development Challenges, South-South Solutions

Published: March 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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Haiti Earthquake Prompts Tech Aid

The devastating earthquake that hit the Caribbean nation of Haiti on January 12 was a huge tragedy for the country’s people and for the large international aid community, including the United Nations. But the disaster has seen the use of new information technologies – often assembled by volunteers – to bridge the gaps in critical information and bring a semblance of order to the chaos of a large disaster. And many of the technologies being used in Haiti now arose from past disasters and crises in the South.

Remarkable stories from the disaster include a woman who used her mobile phone to text message Canadian officials she was trapped and needed rescue, to a filmmaker who used an application on his iPhone (http://www.apple.com/iphone/) to treat his wounds: “I was able to look up treatment of excessive bleeding and compound fracture, so I used my shirt to tie my leg and a sock on the back of my head and later used it for other things like to diagnose shock,” claimed Dan Woolley to NBC Miami.

Measuring 7.0 in magnitude (http://en.wikipedia.org/wiki/2010_Haiti_earthquake), the quake killed over 212,000 people, injured 300,000 and affected more than 3 million out of Haiti’s population of 9 million. Hundreds of thousands have lost their homes and are now dependent on food aid to survive. Haiti is the poorest country in the western hemisphere, and is ranked 149th of 182 countries on the Human Development Index.

In the aftermath of the earthquake, communications were knocked out and it was difficult to grasp the scale of the disaster. Major infrastructure was either severely damaged or completely destroyed.

The public telephone system went down, and the two largest cell phone providers, Digicel and Comcel Haiti, were both disrupted. Most radio stations went off the air in the immediate aftermath and a week later, just 20 of the 50 stations in Port-au-Prince were back on air.

This represented the worst of all scenarios for disaster response: not only was the scale of the tragedy enormous, but existing government structures and the large international aid mission were equally badly hit. First responders and the government’s infrastructure were paralyzed in the hours after the disaster and it took some time for the aid response to build to significant levels.

But while communications were down in the country, outside it was a different story: people around the world were using the internet and mobile phones to begin piecing together the e-response to the earthquake.

After the disaster, technology-savvy volunteers around the world kicked into action to find ways to help. They have built software to aid in tracking people, using technology to map the disaster area and ways to use mobile phone text messages to find the missing.

Kenya’s Ushahidi (www.ushahidi.com) is a free software mashup (http://en.wikipedia.org/wiki/Mashup_%28web_application_hybrid%29) born after the post-election violence in Kenya in 2007 and 2008. It gathers citizen-generated crisis information – SMS (text messages), email or web resources – and then places the information on a map or timeline. It is put together by volunteers from Kenya, Ghana, South Africa, Malawi, the Netherlands and the United States.

Ushahidi’s founder is Kenyan Ory Okolloh, and the first version of the software for download is called “Mogadishu,” after the capital of Somalia.

It was put to use in Haiti (http://haiti.ushahidi.com/reports/submit) as users populated its online maps and timelines with information on the location of people in need of food and water, those trapped in rubble or those in need of medical attention. It is a real-time reporting system for people in a disaster, offering a way for people in need to broadcast to the outside world.

Sample reports on the timeline look like this (http://haiti.ushahidi.com/reports): ” SOS food, water and care needed in the Bertin Zone of Carrefour S.O.S. for the people of Carefour in the Bertin area, Titus Road, Froide River, these people haven’t recieved anything yet like water, food, care.”

“Alive under the Rubble of Bar Lakay Restaurant, Ave. Christophe 6633. Carole Joseph is alive under the rubble of the Bar Lakay restaurant on Avenue Christophe.”

The UN estimates there are more than 900 non-governmental organizations operating in Haiti. One of the best ways to try and coordinate this large aid response is through innovative information technology.

The Ushahidi software has spawned many creative variations to track a wide range of problems. In the Philippines, TXTpower (http://www.cp-union.com/ushahidi/) is put together by the Computer Professionals’ Union to keep an eye on mobile phone companies and their business practices. In Mexico, a mashup (http://www.cuidemoselvoto.org/) was put together for the 2009 federal elections. Stop Stockouts (http://stopstockouts.org/) keeps track of near real-time pharmacy and medical supplies in health facilities and pharmacies in Kenya, Uganda, Malawi and Zambia.

In San Diego, California, computer programmer Tim Schwartz quickly contacted his network of fellow programmers to address the problem of information being spread too widely across many web sources. In a few hours they put together http://www.haitianquake.com, a way for people to post and locate missing relatives.

It was online in less than 24 hours. It was followed by many other similar services and they were merged into a service eventually put together by Google called PersonFinder two days later. Google’s PersonFinder grew to have more than 32,000 missing people listed.

Another response has been Crisis Camps (http://crisiscampmiami.org/) in London England and cities across the United States. Technology workers got together to brainstorm relevant solutions to help the aid effort, and developed tools including Tweak the Tweet, Port Au Prince Basemap (up-to-date data on what his happening on the ground), The Haiti Timeline (developing a real-time history of events as they unfold), Family Reunification Systems, crisis wikis (http://crisiscommons.org/wiki/index.php?title=Crisis_Wiki), Mobile Applications 4 Crisis Response, translation (Creole to English for example), Mapping NGOs in Action (in the chaos of a crisis, this seeks to track what NGOs are working where), We Need, We Have Exchange (a way to post requests for resources or help).

“It really is amazing the change in the way crisis response can be done now,” Noel Dickover, a Washington, DC-based organiser of the Crisis Camp tech volunteer movement, told The Independent newspaper.

“Developers, crisis mappers and even internet-savvy folks can actually make a difference.”

Josh Nesbit is a co-creator of a text message service for mobile phones that is being used by international organizations like the United Nations and the Red Cross. Haitians are able to send free text messages from mobile phones on the country’s Digicel service. The messages include requests for water and food. The messages are organized and tagged with key words by volunteers in the Haitian community in New York City, and Haitian radio stations promote the service. It was developed based on similar systems already running in hospitals in Malawi.

In Haiti, mobile phone networks were back up and running within a few days – many within 24 hours. Haiti is poor, but it nonetheless has impressive mobile phone ownership rates: one-in-three people has one.

OpenStreetMap (http://www.openstreetmap.org/) is another excellent resource in a disaster and represents a significant step forward in helping people to respond. Real time data is uploaded to satellite photographs of the disaster area and people then can add updates on the location of working hospitals or where infrastructure has been damaged. The information comes in by many forms, from the micro-blogging service Twitter (www.twitter.com) to eyewitness reports.

Reports from Haiti have talked of rescue teams uploading the maps to their GPS (global positioning system) devices for easy access, or printing then in A4 form to carry around.

The utility of this service has been confirmed by many working on helping Haiti. “We have already been using their data in our initial post-disaster needs assessment,” Stuart Gill of the World Bank told The Independent.

Dutch mobile phone maker Intivation (http://www.intivation.nl/) is distributing for free solar-powered mobile phones in Haiti to help with aid efforts and is launching the phones for sale around the world as well.

By David South, Development Challenges, South-South Solutions

Published: February 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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Housing Solution for World’s Growing Urban Population

 

Across the South, cities are expanding and urban populations growing at a phenomenal rate — the cities of Africa and Asia are growing by a million people a week. Megacities and sprawling slums will be the hallmarks of this majority urban world. In sub-Saharan Africa, 72 percent of the population already lives in slum conditions.

How people will be housed is an urgent problem. There are many ways to build a dwelling, from scavenged materials, to labour-intensive and expensive custom-built construction, yet affordable and safe construction techniques for the poor are sorely needed.

The danger of building unsafe housing can be seen in the recent devastating earthquake in Haiti, where many buildings collapsed, killing an estimated 212,000 people. If the rapid growth in urban populations is to be safe and sustainable, then new dwellings will need to be built that meet high standards of durability.

In South Africa, one company believes it has the right technology for an age of rapid urban population growth and the need for quick and safe housing construction.

The Moladi building system (http://moladi.com/) (http://www.moladi.net/default.aspx?AspxAutoDetectCookieSupport=1) developed in 1986 by South African injection mold maker Hennie Botes consists of molded plastic panels, looking like the panels found in children’s construction toys that are screwed together and assembled as a frame for the building. With the frame in place, a concrete mortar mix is poured in and left to dry: depending on local conditions, taking between 12 and 15 hours. When dry, the plastic mold is removed and a fully built house is the result. Because of the use of molds, the home’s walls are smooth and even and the resulting home is tidy to look at.

Moladi doesn’t require professional builders to assemble the frames, and the technique has been tested for strength and for resistance to earthquakes and hurricanes. Since it was developed specifically for the poor, this building method draws on what is called ‘sweat equity’: often the only asset a poor person has to contribute to the cost of building a home is their free labour.

Because the dimensions of the home have already been established when the plastic frames were molded, common on-site mistakes are avoided.

Moladi benefits from South Africa’s Black Economic Empowerment programme (http://www.southafrica.info/business/trends/empowerment/bee.htm) and is certified for its quality with the South African Bureau of Standards (SABS) (https://www.sabs.co.za/). Moladi contractors and developers are working in 15 countries and the technique is distributed in a further seven countries.

The Moladi construction technique was born of frustration with the traditional approach of laying one brick on top of another. This traditional construction method, dating back thousands of years, just doesn’t match the needs of our times. It is slow and requires highly skilled bricklayers to be done right. Across the developing world, it is possible to see poorly constructed brick dwellings – often built unevenly with poor quality mortar holding the bricks together – that are unsafe in an earthquake.

Training in the Moladi technique takes from one to two weeks for unskilled workers depending on the size of the home. Moladi provides handbooks and all the necessary resources to complete the project. Each project has its own custom-built plastic frames made based on the home’s design.

“There is no flat fee for on-site training; the client is only responsible for covering the travel and living expenses for the Moladi representative or training foreman,” said Hennie Botes.

The ideal size for a project is 15 homes. By building a large number of homes, the individual cost comes down and savings increase.

The system “can be reused 50 times, which means that the more Moladi houses you build, the more economical it becomes,” Botes said. “Compared with the exorbitant cost of traditional construction methods and when current market values are considered, the cost savings of building with the Moladi technology are achieved from the first application.”

As the world’s cities grow, and slums become larger and more prevalent, the urgent need for affordable and decent housing will go hand-in-hand with a need for jobs — particularly jobs for unskilled workers. There just won’t be enough skilled workers to go around to build the homes. Even in developed countries, this has become a problem.

“The recent earthquake disaster in Haiti could benefit from the Moladi system,” Botes said. “Job creation for Haitians is desperately needed and Moladi can immediately facilitate an income for family groups, as over 95 percent of the construction team consists of unskilled labourers. There is no requirement for heavy machinery, or even electricity, and remote areas can be easily accessed; Moladi also allows for the utilisation of building rubble resulting from the earthquake in the construction of new buildings.”

The essence of the Moladi system is breaking down the construction process into simple, replicable steps. It is inspired by the American pioneer of mass production, car maker Henry Ford (http://en.wikipedia.org/wiki/Henry_Ford), who achieved efficiency and low costs in production by simplifying production into standardized and modulated steps.

“The Moladi construction process should be viewed as a workflow process similar to that of a vehicle assembly line,” Botes said. “Through the simplification, standardization, modularization, and industrialization of the construction process, efficiency and cost savings are achieved and maintained by managing the continuous flow process on site.

“Contractors must make sure that they have planned their project roll-out and budget well and have clearly defined goals as to what they want to achieve. It is very important to have all team players and professionals on the same page with regards to their roles and responsibilities.”

In the beginning, Botes encountered resistance to his innovative production methods. “I was highly motivated and really believed in my idea, but when I presented it to investors, they’d shoot holes in it. … It’s been a 22-year journey, but I always kept the goal in mind. Moses spent 40 years in the desert … I’m quite happy my desert experience was only 20-odd years, though,” he told Men’s Health magazine.

South Africa is facing a population growth rate of 1.73 percent a year (UNICEF). It also has 61 percent of the urban population trying to live on four percent of the land, according to Botes. This urban population grows at 2.7 percent a year, yet existing housing needs are not being met. There is already a backlog of 2.2 million homes needed to be built, and this grows by 180,000 every year, according to the Banking Association of South Africa (http://www.banking.org.za/default.aspx).

“Even though the need for housing has always been a fundamental requirement to sustain one’s health and welfare, the advances in this area have been seriously lacking,” said Botes. “The brick and mortar method of construction was recorded as early as 1458 B.C, which means that very little has changed in terms of building structures over a period of almost 3.5 millennia.

“We cannot expect to resolve the housing crisis in our age with a technique developed for the requirements of society 3468 years ago.”

With the success of the Moladi building system, Hennie is working on “producing windows, doors, toilet seats, window frames, sinks and washbasins. If I can include these as part of my product, I’ll reduce the total unit cost of the house.”

By David South, Development Challenges, South-South Solutions

Published: February 2010

Moladi is a building and housing solution from South Africa and was featured in Southern Innovator Magazine.

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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