China’s Outsourced Airliner Development Model

Many emerging-market countries in the global South have built up substantial foreign currency reserves. Much of this has been a response to past foreign currency crises, particularly the Asian Crisis in the late 1990s (http://en.wikipedia.org/wiki/1997_Asian_financial_crisis).

But what to do with this often vast wealth? How should it be used to improve economies, human development and people’s lives?

China — whose foreign currency reserves reportedly total US $3.7 trillion — is showing one approach, using the wealth to build industrial capability in sectors traditionally associated with more developed countries, such as aircraft manufacturing.

China is seeking to build a commercial airliner able to compete with the sector’s longstanding giants, Boeing and Airbus. To ensure it can do it to the highest global standards, it is outsourcing much of the parts manufacturing to the best around the world, while keeping the overall design and assembly in China.

Comac, or Commercial Aircraft Corporation of China, Ltd. (http://english.comac.cc/products/ca/pi/), is located outside Shanghai, China’s rapidly growing global business hub. The modern Comac factory is working on building China’s first commercial airliner, the C919. It is also making a smaller jet, the ARJ21.

Comac calls the outsourcing method an “airframer supplier” model. Suppliers provide the components, and Comac designs and assembles the plane.

Countries making the parts include the United States, France, Ireland, the United Kingdom, Austria, Switzerland and Japan.

Comac’s dream is to graduate to the top tier of global aircraft manufacturers alongside Boeing and Airbus, which together account for 70 per cent of the global commercial airliner market (Fortune).

At present, this is just an aspiration, with a detailed life-sized plastic model of the C919 – right down to the intricacies of the cockpit instrument panels — all there is to show for the project.

Founded in 2008, Comac ambitiously aims to be making and selling commercial airliners within a decade. State-owned Comac is an amalgamation of various aviation companies, as previous efforts to make a commercial airliner in China had failed. China has invested US $3 billion in the venture.

The name, C919, breaks down as C for China, 9 because it sounds similar to the Chinese word for forever, and 19 because it will carry 190 passengers.

The idea is to target the city-to-city aircraft market which is dominated by Boeing’s 737 and  Airbus’s A320.

China saw huge aviation growth in the first decade of the 21st century, and is expecting that trend to continue. The country is on track to surpass the United States for airline-passenger traffic by 2032 and is already the world’s second largest market (Fortune).

To feed this fast-growing market, China will need an estimated 5,580 new planes by 2032, costing US $780 billion in today’s prices (Boeing).

China has decided, rather than committing this vast investment to purchasing all the aircraft from overseas manufacturers, to instead use this wealth to build a competitive aircraft manufacturing industry to rival the big leaders. This would create jobs in the country and create a multiplier effect as airline industry investment helps the domestic economy.

China already has years of experience manufacturing aircraft parts for foreign companies. Comac makes the tail section of Boeing’s 737, as well as manufacturing cargo door frames for the Airbus’ A320.

More importantly, since 2009 China has assembled A320s for Airbus under license in Tianjin — 130 of them to date (http://www.airbus.com/company/worldwide-presence/airbus-in-china/).

The C919 is similar in some ways to the Airbus A320. They have similar dimensions and are made from similar materials. Comac has hired over 100 foreign experts to help with the project, to ensure quality control meets global standards.

By trying to compete with the world’s best, China is entering a very competitive and complex marketplace. The complexity of modern aircraft (an average of 4 million parts in a typical commercial airliner) means there is no room for mistakes or cutting corners. And this is where China has to change its reputation. The country has experienced several high-profile manufacturing failures due to corner-cutting and corruption. These have included tainted milk products, poorly constructed buildings that collapsed, and high-speed train crashes.

The C919 is an opportunity to show high standards and high quality can be the norm in Chinese manufacturing.

In the 1970s, China designed and built the Y-10 (http://en.wikipedia.org/wiki/Shanghai_Y-10) in Shanghai, modeled on Boeing’s 707. But it was a failed programme, shut down after the plane flew once.

Those behind the new plane acknowledge that this is a learning experience for China: “Comac must learn how to walk first before running,” Comac chairman Jin Zhuanglong told Fortune magazine.

“I’ve always maintained the point that we won’t be a big challenge for Airbus or Boeing in the short term,” said Jin, who used to work in China’s satellite and spacecraft industry.  “But in terms of some single product, we might be competitive.”

There’s no doubt that China needs planes. China will have constructed 80 new airports between 2011 and 2015 (China Daily). It has already received 1,000 Airbus planes for domestic carriers, quickly bringing fleets to international standards.

State-owned airlines, including China Air, China Southern and China Eastern, dominate 80 per cent of flights. All stand to be a ready market for the C919, which will sell for around US $75 million – US $10 million less than the next generation Boeing 737 and the Airbus A320 (Fortune).

Ireland-based budget airline Ryanair is considering being the first Western airline to purchase the C919.

Ryanair CEO Michael O’Leary is confident people will fly on a Chinese-made plane: “Ninety-nine percent of my passengers don’t know what kind of aircraft they are getting on,” O’Leary told Fortune. “You trust the Chinese to make computers and medical devices, and the question is, Would you get on a Chinese aircraft? Of course!”

Brazil has shown it is possible. The Embraer (embraer.com) aircraft company, based in São José dos Campos, is now a US $6 billion a year success story that has won the public’s trust.

Comac’s C919 project is a risk, but the rewards could be enormous.

By David South, Development Challenges, South-South Solutions

Published: May 2014

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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Brazilian Design for New Urban, Middle-Class World

Countries across the global South are experiencing rapid urbanization as people move to cities for better economic opportunities — and this massive social change is creating new business opportunities. Those who recognize how fundamentally people’s lifestyles are changing will be those who will benefit from this big shift in populations.

Finding ways to live well in urban areas will be critical to determining whether this move repeats past urban failures — from the favelas of Brazil to the slums of India — or introduces a new way of living that is exciting and colorful. Design and designers will be critical to this change.

One young design company in Brazil, Sao Paulo-based furniture studio NUUN  (nuun.nu), is attempting to resolve a dilemma common across the rapidly urbanizing global South: How to create a design aesthetic that fits with the new way of living and being?

The company consists of designer and founder João Eulálio Kaarah and architects Renato Périgo and Carolina Sverner.

Périgo specializes in furniture and interior design, while Carolina Sverner worked with respected Japanese architect, Shigeru Ban (shigerubanarchitects.com), who is well known for designing buildings and houses made from paper and for creating easy-to-build homes for people after a disaster has struck (http://www.ted.com/talks/shigeru_ban_emergency_shelters_made_from_paper).

A collaboration among upcoming artists, designers and architects, NUUN tries to infuse its designs with a sense of “brazilianness”. Brazilianness is a modern aesthetic, made for modern lifestyles in the new urban landscape, that draws on aspects of Brazil’s culture and environment.

The young studio’s first collection of furniture offers simplicity. Called Eos, it tries to blend urban cosmopolitanism with raw nature. Brazil is known for its jam-packed urban cities as well as its vast expanse of Amazon rainforest. In practice, NUUN’s look is a mix of contrasts redolent of what used to be called brutalism: concrete mixed with glass, steel, wood and semi-precious gems. NUUN takes inspiration from NASA’s Earth Observation System (EOS): the collection vibes off of space satellites, antennae and the dry soil of the backwoods. NUUN says that “despite its Martian features, [the collection] is as Brazilian as it comes”. There is the modular Panorama sofa (http://nuun.nu/products/panorama) in five colors, capable of being re-shaped to fit a variety of living arrangements. A glass-topped coffee table with a concrete base and a side table with a carbon steel metallic structure to complement the sofa.

Elsewhere in the world of Brazilian design, footwear brand Grendene S.A. (http://ri.grendene.com.br/EN/Company/Profile) has become one of the world’s largest producers of footwear and made one of its founders a billionaire. And Grendene has boosted its international success by turning to another Brazilian success: supermodel Gisele Bündchen (giselebündchen.com.br).

Grendene began in 1971 and owns various successful shoe brands, including Melissa (melissa.com.br/en/), Grendha, Ilhabela, Zaxy, Cartago, Ipanema, Pega Forte, Grendene Kids and Grendene Baby.

It has six industrial zones with 13 footwear factories and can produce 240 million pairs of shoes a year. It undertakes all areas of production— from making its own moulds for the shoes to creating PVC (polyvinyl chloride) (http://en.wikipedia.org/wiki/Polyvinyl_chloride) – and handles its own distribution.

While Grendene is already a well-known shoe brand in Brazil, it wanted to expand its presence overseas to increase profits. Named after the two brothers who founded the company, Alexandre Grendene Bartelle and Pedro Grendene Bartelle, Grendene started working with supermodel Gisele Bündchen in 2002 to help her launch her own line of affordable flip-flops, iPanema (ipanemaflipflops.co.uk). The brightly colored sandals with elaborate patterns became an instant success.

But do celebrity endorsements really work? In the case of Bündchen and Grendene, the answer is yes. According to Forbes, 25 million pairs of the flip-flops and sandals are sold every year, accounting for 60 per cent of Grendene’s annual exports of about US $250 million.

Brazil was able to produce 864 million pairs of shoes in 2012, up 5.5 per cent from 2011.

Of these, 113 million pairs were exported to the United States, Argentina and France.

Brazil, like many other countries, has had to work out how it could compete with cheaper shoe imports from China. The strategy it chose was to target the growing number of middle-class people both in Brazil and elsewhere, as well as the high end of the market.

In 1979, Grendene created the Melissa brand, which has now become a coveted style leader. It collaborates with top design names such as Karl Lagerfeld and architect Zaha Hadid.

Making a partnership with Bündchen is part of the company’s strategy to reach higher-income buyers.

And it is working: Grendene increased its export revenue by 50 per cent in 2013.

Co-founder Alexandre Grendene Bartelle became a billionaire according to Forbes World’s Billionaires list and is worth US $1.4 billion. He owns 41 per cent of Grendene S.A. and close to 40 per cent of the Dell Anno brand.

This is a critical lesson for manufacturers in the global South. Grendene had achieved strong market dominance at home, and was already benefiting from growing wealth among Brazil’s middle classes. But it was the overseas market that had the potential to clinch even more profits for the company.

Bündchen’s high brand profile has enabled the company to compete head-to-head with the well-known Brazilian flip-flop brand, Havaianas (havaianas-store.com).

Another modern design leader owned by Grendene, Dell Anno (lojasdellanno.com.br), is a maker of modernist cabinets and furniture.

Dell Anno only use wood from renewable forest sources, to protect and preserve the Amazon and other native forests. Dell Anno tries to recycle as much as possible: up to 80 per cent of the water used in manufacturing is recycled, and byproducts from the production process such as a sawdust, wood, plastic and cardboard are also reused.

Dell Anno makes a full range of furniture for kitchens, bedrooms, closets, home theatres, home offices, service areas, restrooms and commercial environments. Dell Anno uses research and development to study trends and advise customers on the best options. The brand offers its staff training to help standardize customer service, and also has an excellent blog covering developments in modern design around the world (http://www.lojasdellanno.com.br/blog/).

By David South, Development Challenges, South-South Solutions

Published: May 2014

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

Follow @SouthSouth1

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Cheap Paper Microscope to Boost Fight Against Diseases

To tackle diseases in the developing world, the most important first step is diagnosis. Without effective diagnosis, it is difficult to go to the next steps of either treatment or cure. While much attention is given to the high costs involved in treating and curing ailments, screening for diagnosis is also expensive, especially if it involves lots of people. Anything that can reduce the cost of diagnosis will free up resources to expand the number of people who can be checked, and help eradicate contagious diseases.

One innovation is an inexpensive microscope that could allow diagnosing diseases such as malaria to be done on a much larger scale. Called the Foldscope (foldscope.com), it is made from paper, comes in a variety of bright colors and resembles the cardboard, three-dimensional cut-and-keep models regularly found in children’s books and magazines.

Foldscope’s designs are developed on a computer and then printed. Foldscopes are made from thick paper, glue, a switch, a battery and a light-emitting diode (LED) (http://en.wikipedia.org/wiki/Light-emitting_diode).

Inspired by the ancient Japanese paper-folding craft of Origami (http://en.wikipedia.org/wiki/Origami), Foldscope’s makers at the Prakash Lab at Stanford University (http://www.stanford.edu/~manup/) are trying to create “scientific tools that can scale up to match problems in global health and science education”, according to their website.

The Foldscope can be put together in less than 10 minutes (http://www.youtube.com/watch?v=rphTSmb-Ux4) using a pair of scissors, packing tape and tweezers.

Once assembled, a user places a standard glass microscope slide in the Foldscope, turns on the LED light and uses their thumbs to guide the lens to view the slide.

Each Foldscope can magnify up to 2000 times with a sub-micron resolution of 800 nm. The battery can last up to 50 hours on a single button-cell battery and requires no further external power. Its makers claim it can survive being stepped on or dropped from a three-storey building.
It can perform a wide variety of microscopy techniques.

Its makers hope to manufacture billions of Foldscopes a year by exploiting the cheapness of the material and the simplicity of construction.

A beta test called “Ten Thousand Microscopes” will enlist 10,000 people to test the Foldscope in the field. Participants will contribute to helping write a field manual for the Foldscope prior to mass manufacturing. The Foldscope costs just US $0.50 to make for the basic model and US $1 for a higher-magnification version.

Field tests are taking place in the United States, Uganda and India.

Foldscope is designed to be used where more sophisticated lab analysis is not possible or affordable. It can also be an educational tool to give students experience in hands-on microscopy, or build awareness in the general population of how infectious diseases are spread by unseen lifeforms.

Foldscope’s makers hope their creation will help diagnose common but devastating diseases including Plasmodium falciparum (malaria), Trypanosome cruzi (Chagas disease), Giradia lamblia (giardiasis), Leishmania donovani (leishmaniasis), Dirofilaria immitis (filariasis), Human Sickle Cell (sickle-cell anaemia), E. Coli and Bacillus and Pine strobilus.

The quantity of people that need to be checked for diseases is vast and means, in countries where incomes and resources are low, it just isn’t possible to undertake diagnostic services using conventional methods.

“There is definitely a huge gap between where we are and where we want to be,” Stanford School of Medicine Assistant Professor for Bioengineering Manu Prakash explained on the university’s website.

“When you do get it (malaria), there is this simple-minded thing ‘forget diagnostics, let’s just get that tablet’ – and that’s what happens in most of the world. But the problem is there is many different strains, there are many different medications, you could potentially make the problem even worse by not realizing that you have malaria. And at the same time, the people who get a severe case – they are not detected at all.

“What is that one thing that you could almost distribute for free that starts to match the specificity of what detection requires? For malaria, the standard is to be able to image, and sit on a microscope and essentially go through slides.

“What we found as a challenge, if you truly want to scale, you should be really testing more than a billion people every year: that’s a billion tests a year. Any platform that you can imagine needs to scale to those numbers to make an impact.

“One of these things that have been shown over and over again – if you can put (in place) an infrastructure to fight malaria that is scalable and sustainable, then you get retraction of malaria in different regions.”

By David South, Development Challenges, South-South Solutions

Published: April 2014

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

Follow @SouthSouth1

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Asian Factories Starting to go Green

Media headlines have recently highlighted the growing air pollution crisis in Asia’s expanding cities. This is caused by a mix of factors – the growing number of vehicles, coal-powered factories, people burning dirty fuels to heat their homes, and poor enforcement of standards – and has severe consequences for human health. If it’s not tackled, more and more countries will see large rises in respiratory problems, cancers and early deaths from pollution-caused illnesses (http://www.nrdc.org/air/).

The World Health Organization (WHO) says air pollution is the world’s largest environmental health risk, killing 7 million people every year. Asia has the largest number of air pollution deaths in the world, with 3.3 million deaths linked to indoor air pollution and 2.6 million deaths related to outdoor air pollution (Clean Air Asia).

While most of the Asian countries where this is a problem are also aggressively growing their economies in order to get richer and raise living standards, there is a rising awareness of the need to balance a modern, industrial economy with human health and the environment.

One solution is to adopt green and sustainable building standards when constructing new factories. This is more than just a public relations exercise: the energy savings possible from building smart pay off in the long run. And green factories not only pollute less, they save lives and the environment.

Asia plays a critical role in producing the world’s consumer products, from the small and simple to the highly complex components used in 21st-century computing technologies.

Intel (intel.com), the manufacturer of electronic devices and the computer chips that go inside them, is trying to lead the way. It has built a US $1 billion manufacturing plant 16 kilometers outside Ho Chi Minh City, Vietnam, and it is designed to exceed Vietnamese environmental and sustainability guidelines and laws.

Opened in 2010, it boasts the country’s largest solar power system. It is also currently working on a water reclamation system to reduce water consumption at the plant by 68 per cent, according to The New York Times. It is hoping to receive certification from the US Green Building Council (usgbc.org).

It is all part of a wider trend that is starting to reverse the damaging, short-termist approach of the past. More and more Western multinationals and their Asian suppliers are building environmentally sound factories in the developing world.

According to the US Green Building Council, around 300 manufacturing facilities in Asia are either certified or are awaiting Leadership in Energy and Environmental Design (LEED) certification. The LEED certification recognizes the building has met certain standards in becoming a ‘green’ building.

Going green is more and more part of corporate policy for companies that want to avoid the bad publicity of disasters such as the garment factory collapse that killed 1,135 people in Bangladesh in April 2013.

But it is not just driven by a desire to avoid bad publicity: large corporations that build factories in the global South are also realizing there are big financial savings to be made.

Intel has been able to reduce its global energy costs by US $111 million since 2008. It did this by investing US $59 million in 1,500 projects to boost sustainability across its facilities worldwide. The projects have reduced carbon dioxide emissions equivalent to the amount produced by 126,000 American households per year.

Intel’s solar array in Vietnam, which cost US $1.1 million, offsets the equivalent of 500 pollution-belching motorbikes every day.

How effective are LEED-certified buildings? The New York Times reported that a 2011 survey compared a typical shoe factory with a LEED factory run by the American sport shoe maker Nike. It found the LEED factory used 18 per cent less electricity and fuel and 53 per cent less water.
And this trend is creating a new economy unto itself. As an example, a new marketplace for industrial efficiency upgrading is developing in India. Power outages are frequent in India, so finding a way to save electricity and alternatives to dependence on the national power grid is attractive to any economic enterprise.

Prashant Kapoor, principal industry specialist for green buildings at the International Finance Corporation (IFC), believes demand for upgrades is strong enough that various companies can specialize in this field and profit from it.

And things are also happening in the notoriously smog-choked cities of China. By the end of 2012, China had certified eight factories and 742 buildings as LEED, according to the China buildings programme at the Energy Foundation (ef.org) in San Francisco.

Damien Duhamel of Solidiance (solidiance.com), a firm that advises businesses on how to grow in Asia, believes avoiding risk caused by environmental accidents or scandals is heightened by the growing presence of social media, which amplifies negative publicity.

“The next battle will be here” for higher corporate environmental standards, Duhamel believes. “This is why some smart companies – Intel, for example – took the steps of being proactive.”

By David South, Development Challenges, South-South Solutions

Published: April 2014

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=ohM9BQAAQBAJ&dq=development+challenges+april+2014&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challenges-published-april-2014

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Reality Television Teaches Business Skills in Sudan

Learning how to thrive in a market economy does not necessarily come naturally. But for young people who have grown up under a different economic system or known nothing but economic chaos, learning business skills can give them the tools to get on in life.

With youth unemployment rates high around the world, it is clear many young people may never get the jobs they expect unless they start businesses themselves.

In 2013, 73.4 million young people were out of work, an increase of 3.5 million from 2007. A report by the International Labour Organization (ilo.org) found persistent unemployment around the world in the wake of the global economic crisis, a proliferation of temporary jobs and growing youth discouragement in advanced economies; and poor quality, informal, subsistence jobs in developing countries. School-to-work transition surveys of developing countries showed that youth are far more likely to land low-quality jobs in the informal economy than jobs paying decent wages and offering benefits.

High youth unemployment often has nothing to do with poor educational achievement (many unemployed youth have high school educations or university degrees), but is often caused by other factors, including lack of access to capital, rigid labour markets, skills mismatched to demand in the economy (for example construction and building trades), or a gap between personal aspirations and the true state of the country’s economic development.

But rather than despair, it is possible to show youth how to turn things around and use business skills to re-shape economies in their favor. Youth tend to bring to the economy energy and drive combined with new ideas and experiences calibrated to the demands of the 21st century. By harnessing this, youth can find a unique space in the marketplace. In turn, young people can lead in reviving damaged economies and making their countries wealthier and healthier. Many youth have grown up around the emerging digital economy and the use of mobile phones. Being comfortable with the 21st century digital economy will unleash many economic opportunities that favor youth.

The British Council says that “creative entrepreneurship is considered the most efficient model for youth in the developing world who are facing huge difficulties in finding employment”. The entrepreneurship or creative investment industry is one of the fastest-growing sectors in the world.

Understanding what works for youth business entrepreneurship has become a specialty in its own right. Using the media to teach skills and inspire youth to action is one proven approach.

One recent example is a successful television programme from the Republic of the Sudan. Called Mashrouy (mashrouy.com), it is modeled on reality TV programmes such as The Apprentice, which features serial U.S. entrepreneur Donald Trump (http://www.bbc.co.uk/programmes/b00q3fkq) and the BBC’s Dragon’s Den (http://www.bbc.co.uk/programmes/b006vq92), where contestants pitch their ideas to a panel of judges to see if they can get funding for their business idea.

In Mashrouy, 12 contestants battled it out to see who had the best business idea. They undertook various challenges and the original 12 were whittled down to three contestants. Live on air in December 2013, viewers voted for their favorite contestant and the winner (https://www.facebook.com/Mashrouy) received a prize of 200,000 SDG (US $35,211), while the second prize winner received 150,000 SDG (US $26,408) and the third prize winner received 100,000 SDG (US $17,605). All three were then taken to London in the United Kingdom to meet other creative entrepreneurs and receive valuable business advice.

The Sudanese show (http://sudan.britishcouncil.org/our-work/mashrouy) is supported by the British Embassy and the British Council, and is working with the Sudanese Young Businessmen Association and major Sudanese companies to spread the idea of entrepreneurship among the youth of Sudan.

Sudan suffered a brutal civil war on and off throughout the 2000s, leading to the partition of the original country into the Republic of the Sudan and the new nation of South Sudan in 2011.

Faced with Sudan’s serious youth unemployment – as high as 34 per cent – and a fragile economy, the TV show’s producers wanted to encourage youth to start businesses.

The contest was aimed at youth between 18 and 40 and appeared on the Blue Nile (http://bnile.tv/blue.html) channel.

“At a time of national economic hardship, it has kindled the imagination of Sudanese youth,” wrote journalist Isma’il Kushkush (https://twitter.com/ikushkush) in The New York Times.

For the show, a panel of experts picked 12 projects out of 2,500 applications. Each of the 12 finalists was given a chance to do a “pitch,” giving a quick summary of their business idea and trying to get the panel excited about the idea and its potential. The idea that generated the most excitement won.
The 12 pitches included an idea for an ostrich farm and a plan to export spicy peanut butter. The winner, 32-year-old Samah al-Gadi, wants to use a locally available weed-like river plant to make bags and furniture. She said she got up the courage to be on the show from a supportive mother.

“Amid ululations, screams and clapping, a jubilant Ms. Gadi raised both hands above her scarf-covered head, flashing victory signs,” The New York Times said. “Her mother, sitting at a dinner table, was brought to tears.”

The women-owned social enterprise Making Cents International (makingcents.com), based in Washington, D.C., USA, has been gathering resources on youth entrepreneurship since 1999. It has put together a custom “curricula to develop the mindset, skillset, and toolset that enable entrepreneurs and enterprises to participate in profitable markets; financial institutions to serve new populations; and individuals to obtain meaningful work”.  This is available in 25 languages. It also hosts the Global Youth Economic Opportunities Conference in Washington, DC, held this year from 6 to 8 October 2014 (http://youtheconomicopportunities.org/conference).

By David South, Development Challenges, South-South Solutions

Published: April 2014

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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