Recycling Waste to Boost Incomes and Opportunities

We all know that green is good, but often the best way to encourage recycling and other environment-improving activities is to put in place economic incentives. It is one thing to admonish people and tell them something is the right thing to do; it is another to make keeping a clean environment pay.

Many initiatives across the global South have proven it is possible to develop an economy of recycling and garbage collection in poor neighbourhoods. These economies take many forms and models.

At the most basic end of the scale are the desperate, survival-driven examples of recycling. In countries likeIndia, recycling can be purely a question of survival – people are so poor they can’t allow anything that might have income potential go to waste. Other countries are very familiar with large numbers of desperately poor people picking through garbage dumps and waste to eke out a living. Or, for example inBrazil, as in many other countries, it’s common to see poor and homeless people picking through garbage on the streets.

These are examples of degrading ‘green’ economies. But there other ways to encourage waste recycling that offer real income benefits and life improvements.

Brazil, a world leader in waste recycling and green technologies, has pioneered the recycling of plastic bottles, aluminum, steel cans, solid plastic waste and glass. And now energy companies inBrazilhave created credit schemes that encourage waste recycling while giving people real economic benefits in return for doing the right thing for the environment. The first scheme went so well, it quickly inspired others to replicate its programme in other poor communities.

Coelce (http://www.coelce.com.br/default.aspx) is a power company in the Ceará State in northeastern Brazil. The company is primarily engaged in the distribution of electrical power for industrial, rural, commercial and residential consumption. In 2007 it set up Ecoelce (http://www.coelce.com.br/coelcesociedade/programas-e-projetos/ecoelce.aspx), a programme allowing people to recycle waste in return for credits towards their electricity bills. The success of the programme led to an award from the United Nations.

The programme works like this: people bring the waste to a central collection place, a blue and red building with clear and bright branding to make it easy to find. In turn they receive credits on a blue electronic card – looking like a credit card – carrying a picture of a child and arrows in the familiar international recycling circle.

These credits are then used to calculate the amount of discount they should receive on their energy bill. The scheme is flexible, and people can also use the credits for food or to pay rent. In 2008, after its first year, the scheme had expanded to 59 communities collecting 4,522 tons of recyclable waste and earning 622,000 reais (US $349,438) in credits for 102,000 people. People were receiving an average of 5 to 6 reais (US $2.80 to US $3.37) every month towards their energy bills.  A clear success leading to an expansion of the scheme.

Now in Ceará’s state capital, Fortaleza (http://en.wikipedia.org/wiki/Fortaleza), – population 3.5 million – there are more than 300,000 people recycling a wide range of materials, from paper, glass, plastics, and metals to cooking oil to get electricity discounts, according to the Financial Times.

In Brazil’s second largest city, Rio de Janeiro, a favela clean-up programme is being run by electricity firm Light S.A. (http://www.light.com.br/web/tehome.asp), which took its inspiration from the success of the Ecoelce experience.

The number of favelas, or informal slum neighbourhoods (http://en.wikipedia.org/wiki/Favela), in Rio is debated: according to the federal government, there are 1,020 favelas, while Rio’s housing department lists 582. The government has been trying to tackle the law and order problems in these neighbourhoods – many are plagued with violent drug gangs – and endemic poverty. It calls this programme “pacification” (http://brazilportal.wordpress.com/2011/10/20/rios-top-cop-talks-public-safety-policy-favela-pacification-program/) as it tries to bring law and order and boost economic development and social gains.

Recycling programmes are helping to bring improvements to life in the favelas by simultaneously cleaning up neighbourhoods and boosting household wealth.

Light S.A. is a Brazilian energy company working in the generation, transmission, distribution and marketing of electricity. It distributes to 31 municipalities inRio de Janeiroand has around 3.8 million customers.

According to the Financial Times, the Light project pays residents 0.10 reais per kilogram of paper and plastic (US .5 cents). It also pays 2.50 reais per kilogram of aluminum and lead (US $ 1.40).

Importantly for community relations, the scheme is open not just to favela residents but to nearby middle class neighbourhoods.

“The idea is to unite the community and the people living around it,” Fernanda Mayrink, Light’s community outreach officer, told the Financial Times.

The project has helped improve theSanta Martafavela ofRio, where police have been working since 2008 to take back the neighbourhood from the control of violent drug gangs. Community police officers can now do their job of taking care of safety for the 6,000 residents.

“You don’t see drugs and guns any more but you do see lots of rubbish,” Mayrink said.

“This project encourages recycling within the company’s concession area and at the same time contributes to sustainable development and the consumer’s pocket. Light wins, the customer wins (and) the environment wins.”

In Vietnam, the NGO Anh Duong (http://www.anhduonghg.org/en/) or “Sun Ray” shows schoolchildren how to collect plastic waste to sell for recycling. In return, their schools receive improvements and the students can win scholarships. It is estimated ruralVietnam is littered with 100 million tons of waste every year. Much of it is not picked up.

The project is operating in 17 communities in Long My and Phung Hiep districts in southernVietnam, mobilising children from primary and secondary schools. School children wearing their uniforms fan out in groups and collect the plastic waste. The money made from selling the plastic waste is being used to improve school facilities and fund scholarships for poor children.

In 2010, the project reported that 10,484 kilograms of plastic waste was collected by 26,015 pupils. This provided for 16 scholarships for school children.

The Anh Duong NGO was set up by a group of social workers with the goal of community development. They target the poorest, bringing together the entire community and seek out “low cost and sustainable actions”. The NGO has a mix of specialties, from agriculture to aquaculture, health, microfinance and social work.

By David South, Development Challenges, South-South Solutions

Published: November 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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Indian Mobile Phone Application Innovators Empower Citizens

With mobile phones becoming ubiquitous across the global South, the opportunity to make money – and possible fortunes – by providing ‘apps’ for these devices is now a reality.

Apps (http://en.wikipedia.org/wiki/Application_software) – applications which allow users of new mobile phones to do everything from running a business to banking to navigating chaotic cities – have quickly become a very creative space and a dynamic market for innovators and entrepreneurs. Because they are pieces of software and are relatively inexpensive to create, requiring only time and hard work, an individual working out of their home can develop an app, introduce it to the online marketplace and see if it will succeed.

The only limit is the imagination.

They are also a great way to solve people’s problems and possibly make some money in the process. As economies and cities grow across the South, many everyday difficulties can be tackled with these apps.

Apps are revolutionary because they solve the problem of how to view websites on mobile phones and smartphones (http://en.wikipedia.org/wiki/Smartphone). Apps are designed for a small screen and have simple functionality and design. They often can function without any constant connection to the Internet, updating themselves sporadically when the phone can connect with phone networks or the Internet. They are also either free or inexpensive, using micro-payments to make a profit. The essence of the micro-payment business model is to charge a small amount and turn this into a large amount by having large numbers of people download the app. It is a successful business formula that has made many vast fortunes throughout the age of the mass consumer market, which began in the late 19th century.

Bart Decrem, co-founder of Tapulous, a maker of apps for the iPhone (http://tapulous.com), told The Economist: “Apps are nuggets of magic.”

Apps are sold in online stores run by companies like Apple (http://itunes.apple.com/us/genre/ios/id36?mt=8), Google, Sweden’s GetJar (http://www.getjar.com), and South Korea’s SK Telecom. Apple’s store has over 425,000 apps and Google’s Android Market has more than 250,000. Other stores include Mobihand, PocketGear, Mobango, Handango, Blackberry App World and Handster (http://www.handster.com).

Research firm Gartner (http://www.gartner.com/technology/home.jsp) estimated that 18 billion apps have been downloaded since Apple opened its first app store in 2008. Remarkably, it forecasts this number could rise to 49 billion by 2013. The most popular topics include games, weather forecasts, social networks, maps, music and news.

The dynamic documented so far for apps seems to follow the way music charts work. A few apps, out of the many on offer, become big sellers and popular favourites, getting the most users. Partly this reflects the difficulty of quickly searching through all the apps available in the world to find the right one, a process that favours well-marketed apps.

The recent TechSparks 2011 App4India (http://www.facebook.com/techspark) contest showcased the creative thinking about apps now happening in India.

One Indian success story is the 1000Lookz (http://www.vdime.com/pro1.htm) app, developed by Vasan Sowriraj (http://www.vdime.com/about.htm), which helps women perform a virtual beauty makeover. A woman can check what shades work best for her skin tone by using her own photos uploaded to the app. The user adds features like foundation, blush, gloss, eye-shadow, eye-liner and lipstick. The app uses facial recognition and skin tone detection technology to assist the virtual makeover. It was developed by VDime Innovative Works headquarterd in Atlanta, Georgia, with its technology developed by its Indian division.

1000Lookz’ mission is to create “innovative products that bring cheer to consumers’ faces.”

Sowriraj got his experience from working as a key member of the team developing special image processing for the Indian Space and Research Organisation (http://www.isro.org).

The same team has also developed another service enabling users to transform standard emoticons – those cartoons used in electronic communications to convey emotions – into emoticons using your own face image. It is called Humecons (http://www.humecons.com), and its slogan is “Emote Yourself”.

The India TV Guide, based in Bangalore, India’s software hub (http://en.wikipedia.org/wiki/International_Tech_Park,_Bangalore), is a mobile phone application developed by Jini Labs (http://www.jinilabs.com) offering programme listings for 150 television channels broadcast in India, and allows viewers to save reminders for favourite shows and build favourites lists.

Jini Labs also makes Jini Books (http://itunes.apple.com/in/app/jinibooks/id404988026?mt=8), a clever app to display books, magazines and journals that are hard to find in conventional shops. It is free and promises to have “indie book authors and publishers – including small size, mid-size independent publishers, university presses, e-book publishers, and self-published authors.”

A very useful app improving people’s lives is the Indian Railway Lite app. India’s railways are a critical part of the country’s economy, and the world’s largest railway system. The complexity of trying to work out the train schedule has been made easier with the app.

Founded by Srinath Reddy, the app’s chief technology officer at RSG Software Services (http://www.rsgss.com), the app enables users to discover train connections between stations, and find which trains pass through stations, while navigating the Indian Railways website. It is a good example of how an app can quickly become a big hit. It became the second most popular on the Apple India app store and is downloaded more than 1,000 times a day.

One of the advantages of the app is its ability to function without access to the Internet. It draws on its own database of information and offers a friendlier user interface than the Indian State Railways website.

“This feature has proved to be very popular as users can access train information even while they are travelling and are out of network range,” Reddy told Yourstory.in. “We update the app at regular intervals and the user has to download a new version of the app to get updated information. Trains are generally added once in a few months and the timetable does not change significantly, so the user can use the same version until the next one is released.”

The app’s creators initially found it difficult to get information and updates from Indian Railways.

“We took around four to five months to build the app,” Reddy said. “Significant effort went into compiling the train and station data as this was not easily available. Refining the UI (user interface) took quite some time as well.”

The company saw a market for the app because there were so many iPhone (http://en.wikipedia.org/wiki/IPhone) users in India. The app was downloaded 45,000 times between June and September, and other versions, including one for Google Android (www.android.com) are in the works to broaden access to people without an iPhone.

The company has its headquarters in Ranchi, India and has four development centers in India located in Delhi, Pune, Ranchi and Hyderabad. Currently, the company has approximately 250 employees with core competencies in Apple, Filemaker and Open Source technologies.

The Tuk Tuk 2 app is a clever and practical application for users of India’s ubiquitous motorized and bicycle rickshaws. They are an important part of the country’s transport infrastructure – but a journey in one can be a stressful experience for many reasons. This app seeks to lesson the stress.

Tuk Tuk 2 app (https://market.android.com/details?id=com.mindhelix.tuktuk2&hl=en) is designed to introduce fairness to the auto rickshaw marketplace. It empowers travellers to track where they are on a journey, check the fare and find the distance covered. It helps to reduce exploitation of travellers and makes sure they know where they are at all times: a powerful resource in crowded, busy and confusing cities.

It was developed by Mind Helix Technologies (http://www.mindhelix.com), founded in 2009 as a dedicated application development company with a mission to empower people with its apps. And that is really what apps are all about!

By David South, Development Challenges, South-South Solutions

Published: October 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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Model City to Test the New Urbanism Concept in India

 

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 of the population to 40 percent by 2025.

India now boasts many fast-growing global companies and booming enterprise zones like the technology hub of Bangalore. But the country still comes in for heavy criticism of the way it has managed the growth of its cities. Poor planning and chaotic growth have left many cities with vast slum areas, congestion, poor hygiene and sanitation services, crumbling infrastructure and poor-quality transportation services. To more and more Indians it has become clear these factors are now serious impediments to economic growth and modernisation of the country and its economy.

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.

And as the middle class grows and its members accumulate savings, their desire to be better housed will also grow. They will be on the hunt for new places to live to realise their dreams. Those who can satisfy this strong urge will be those who will also profit.

This is where the new city concept of Lavasa (www.lavasa.com) comes in. This new community sits nestled in picturesque mountains and features promenades, sidewalk cafes, and ice cream parlours, but none of the clichéd fixtures of today’s Indian cities: rickshaws, noise and pollution, poor sanitation and over-crowding. It has apartment houses in mustard, terra cotta, ochre, olive and beige. It is also going to have a medical campus, luxury hotels, boarding schools, sports academies, a golf course, a space camp, animation and film studios, software-development companies, biotech labs and law and architectural companies. A thoroughly ‘knowledge economy’ mix that India’s aspiring classes wish to see the country embrace for its future development.

The people behind Lavasa see it as a new model of governance and urban development for India in the 21st century.

Lavasa is located in Western Ghats, 200 kilometres southeast of Mumbai, India’s financial and entertainment capital, and 65 kilometres west of Pune, a centre for software programming and computer animation.

Lavasa’s colourful and detailed website boasts it as a “private hill city being developed by Lavasa Corporation Limited where people can live, work, learn and play in harmony with nature.” It’s billed as “an inclusive city, based on the principles of New Urbanism.”

The master plan is to house more than 300,000 people divided in to five linked towns.

The first town, Dasve, will be completed in 2011. Its houses are selling well and are almost sold out, according to its developers.

Lavasa is the concept of Ajit Gulabchand, chairman of Hindustan Construction Company, an Indian company with extensive experience building bridges and dams.

The development is located in the remote hills along the Varasgaon Lake, a reservoir providing water to Pune. Lavasa Hill City covers “25,000 acres with 60 Kms of lakefront” according to its website. The land had originally been designated for holiday homes, but this seemed too small an aspiration.
Lavasa will be governed by a private corporation. It is also being planned according to the principles of New Urbanism (www.newurbanism.org) – a belief in cities built around walkability not cars, where business and residential sit side-by-side, with mixed income housing and lots of green space for parks.

The corporation will take responsibility for providing all major utilities: running water, electricity, sewage treatment, garbage collection and fibre optic connections.

This thoroughly modern approach has startled prospective buyers of homes, puzzled there weren’t water tanks on the roofs and septic tanks for each house: something they had come to expect with current Indian cities.

The Lavasa Corporation has hired an American city administrator, Scot Wrighton, to run the new city.

He told The Atlantic magazine that Lavasa offered him “a chance to build a new governance model for a country where governance at the municipal level does not work.”

The project seeks to exploit a portion of Maharashtra state law that lets corporations assume many of the responsibilities normally provided by, or in the domain of, the state. These do not include police powers or the ability to raise taxes but take in pretty much everything else.

Lavasa has private security guards to watch over its residents and funds itself through home sales, renting, and business deals. The prices for apartments in the development range between US $17,000 and US $36,000. While cheap by Western standards, this is still expensive to middle class Indians.

The project has come in for criticism for being just for the wealthy and being a pipe dream in chaotic India.

In response to criticism, Gulabchand is introducing cheaper apartments targeting young professionals and starter homes that he claims will rent for US $11 a month. This far lower monthly rent could make the development affordable for more people, including domestic servants and laborers.

Gulabchand admitted the plan was not without risks. “We’re worried we’ll still get slums,” he said. “Do we have all the answers yet? No. It is still an experiment, okay?”

As for charges the development doesn’t look much like the ‘real’ India, Gulabchand says: “Why should we look to the past? India is a young society.”

But Gulabchand doesn’t think India has the time to waste pondering these aesthetic questions: the country has a desperate need for better quality living conditions.

“We may not get a perfect Singapore-style model city,” he told The Atlantic. “But this is a model for a more vibrant, inclusive, greener place that still has soul.”

By David South, Development Challenges, South-South Solutions

Published: September 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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Anti-bribery Website in India Inspires Others

An Indian website tackling corruption has been so successful it has inspired a wave of followers in China.

The I Paid a Bribe website – motto: “Uncover the Market Price of Corruption” – was set up by the Janaagraha Centre for Citizenship and Democracy (http://www.janaagraha.org), a non-profit organisation based in Bangalore, India.

Janaagraha is dedicated to working with government and citizens to “improve the quality of life in Indian cities and towns,” according to its website.

Janaagraha’s initiatives strive “to make government departments transparent and accountable,” and the ipaidabribe programme (http://www.ipaidabribe.com) fits in with that goal. It seeks to harness the collective voices of the citizens to report and quantify incidents of corruption. The website will help to paint a picture of the level of corruption in cities and help the NGO in its fight to improve government oversight systems and procedures and to improve law enforcement and adherence to regulations.

The website tackles the “pernicious effect of corruption on destroying city life and disempowering citizens,” according to Raghunandan Thoniparambil, the site’s programme coordinator. “The original idea was that the website could become a simple means of tracking the market price of corruption – a kind of price prediction mechanism.”

He said the original idea was tongue in cheek and propelled by cynicism – but the site’s creators soon realized that “such an effort was indeed a very powerful one.”

The website displays reports and analytics on bribe patterns by city and by transaction amounts, frequency and averages.

The long-term goal is to reduce corruption faced by Indians when they use government services. The website asks users to log both recent and past incidences of bribery. It says: “Please tell us if you resisted a demand for a bribe, or did not have to pay a bribe, because of a new procedure or an honest official who helped you. We do not ask for your name or phone details, so feel free to report on the formats provided.”

Neither accusers nor accused are identified by name – only the incidents are logged. The website is funded by a grant of US $3 million and the NGO is planning to launch a mobile phone application as well.

The website doesn’t pursue individuals because it has found this approach is a distraction to getting systemic improvements by government.

“By not allowing names to be published, we have eliminated any incentive for any individual to make a false or malicious complaint,” said Thoniparambil. “Since nobody will gain anything by reporting a false complaint on our site because we do not act on complaints, we expect that the stories on the site are true.”

The site has been so popular it has spawned imitators in China and elsewhere. Thoniparambil said Janaagraha has been approached by civil society organisations in 13 countries about collaborating.

After a story was published in the Beijing News about I Paid a Bribe, a flurry of ‘tips’ and accusations flooded the Internet in China, and people set up similar websites to gather information on bribery and corruption in their country. One web developer called “Peater Q” set up a Chinese version of I Paid a Bribe, calling it wohuilule.com. Another two websites that popped up included “I Bribe…” (http://www.wxhwz.com) and http://www.tmzg.org. Some of the dozens of websites have been taken down, but others have received official support and encouragement.

“Peater Q” says he is a young Communist Party member and has received government permission for his site. He says the name of his site, wohuilule.com, is a Chinese translation of “I paid a bribe.”

These are still early days as these websites work out how to balance the need to ferret out corruption and bribery and the need to avoid gossip, rumour and slander. It is clear the damage done to a country when corruption and bribery get out of control is significant.

The United Nations’ Global Compact on anti-corruption calls it “one of the world’s greatest challenges.”

A report by the Carnegie Endowment for International Peace on Chinese corruption (http://carnegieendowment.org/2007/10/09/corruption-threatens-china-s-future/g4) found it threatens the country’s future by increasing socioeconomic inequality and social unrest. The report found 10 percent of government spending, contracts, and transactions goes to kickbacks and bribes, or is simply stolen. It also found the indirect costs of corruption to include efficiency losses, waste and damage to the environment, public health, education, credibility and morale.

“Corruption both undermines social stability (sparking tens of thousands of protests each year), and contributes to China’s environmental degradation, deterioration of social services, and the rising cost of health care, housing, and education,” the report said.

I Paid a Bribe is being used to build up an intelligent picture of corruption and bribery in India so that real change can be made.

“Citizens’ reports on the nature, number, pattern, types, locations and frequency of actual corrupt acts and values of bribes will add up to a valuable knowledge bank that will contribute to a reduction in bribe payments,” Thoniparambil said.

Not only does the website raise awareness about the problem and its dynamics, it maps out the path corruption takes through a public service. This, the website hopes, will enable better “more consistent standards of law enforcement and better vigilance and regulation.”

“We believe that every citizen who reports a story on our website about paying a bribe is angry enough to begin to resist it,” explains Thoniparambil.

“Except for using the data that we receive for further analysis, we will not take the complaints and stories forward. We do not intend to invoke the courts.”

But these websites need to be run with caution and care and they do have their critics.

“If you wanted to tarnish the reputation of the government or a department within it, or settle a vendetta, you could just get all of your friends to post claims against them,” Raymond Fisman, a professor at Columbia Business School who has studied corruption, told the BBC.

“There is no way of credibly aggregating the information to assess the magnitude of the problem,” he added.

Thoniparambil, however, remains positive that corruption and bribery are problems that can be tackled.

“I believe that corruption has grown this big only because as citizens, we have tolerated it,” he explains. “If we actively oppose it and there are enough of us, the government has to buckle down and tackle the problem effectively.

“Corruption may be rampant in India, but it is not endemic,” believes Thoniparambil. “Blaming it on our value systems is a poor alibi with no substance in it. I do not believe that Indians are inherently corrupt; our value systems are as good or as bad as anybody else’s. Corruption is not a social trend that arises out of an erosion of value systems; it is born out of systems failure. Corruption flourishes because we have poorly designed governance systems in the country.”

Thoniparambil sites a number of Indian successes to back up his optimism: competition in telephone service providers has reduced corruption; booking of railway tickets online has taken the power away from corrupt ticket sellers; and government departments have been forced to state how long services will take to complete.

Thoniparambil believes it is about changing the relationship between citizens and the public services they receive.

“We would like citizens to begin to realize that public services are our entitlements,” he says. “These are not favours dispensed from above. They ought not to be pessimistic about corruption. Countries have cleaned up very dramatically and the processes by which it has been done have been documented.

“Reduction of bribery in India will improve access to government services, particularly for the poor, reduce the cost of delivery of such services, speed up business and recourse to legal remedies. It will improve the quality of infrastructure and will be deeply empowering for Indian citizens.”

“It is only the collective energy of people that can turn the tables on the corrupt.”

By David South, Development Challenges, South-South Solutions

Published: August 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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Indonesian Food Company Helps Itself by Making Farmers More Efficient

The current global economic crisis is taking place at the same time as a global food crisis. Food inflation took off at the beginning of 2011. This is having a devastating affect on countries dependent on food imports and experiencing decreasing domestic production capabilities. The least developed countries (LDCs) saw food imports rise from US $9 billion in 2002, to US $23 billion by 2008 (UNCTAD), prompting Supachai Panitchpakdi, secretary general of UNCTAD, to say “the import dependence has become quite devastating.”

Garuda Food (www.garudafood.com), one of Indonesia’s leading snack food and drink manufacturers, has been boosting its own productivity by investing in improving the productivity of domestic small-scale farmers. This led to a doubling of crop purchases from peanut farmers between 2007 and 2009. By stabilising the market for peanuts and better guaranteeing income, it has attracted more people into becoming peanut farmers in the region.

This is crucial for the future of feeding the planet: we need more farmers.

Indonesia is the world’s fourth most populous country, with a population of over 238 million, spread out over a network of islands. Peanut farmers in West Nusa Tenggara (http://en.wikipedia.org/wiki/West_Nusa_Tenggara) (one of Indonesia’s poorest places) are a key part of the region’s wealth. Peanuts are the area’s third largest crop after rice, maize and soybeans, and the region supplies six percent of the country’s peanut production and 10 percent of Garuda Food’s needs.

Garuda Food says investing in farmers has raised its own productivity by a third. Turning past practices on its head, this large agri-food company is supporting small-scale farmers and helping them to boost their productivity and incomes. Conventional wisdom had been to view small-scale farmers as an inefficient hold-over from the past – the quicker they were driven out of business, the better.

The Indonesian peanut farmers were using traditional farming methods and local seeds. Knowledge of more sustainable farming methods and land management techniques was poor. The farmers were also beholden to the whims of local buyers and fluctuating market prices.

Then Garuda Food stepped in. The company’s field staff offer the farmers training, and through its subsidiary PT Bumi Mekar Tani, it spreads knowledge about new agricultural practices and provides the farmers with quality seeds and farming equipment.

The company buys crops directly from the farmers, rather than from middlemen, increasing the amount the farmer makes. A premium is also paid if the farmer achieves better quality for their crop.

“We receive substantial supply from peanut farmers in NTB (West Nusa Tenggara) and we hope the arrangement will continue,” Garuda Food’s managing director Hartono Atmadja told the Enchanting Lombok website.

Garuda Food’s initiative, with support from the World Bank’s International Finance Corporation and AusAID, through the Australia Indonesia Partnership, has raised the productivity for 8,000 small-scale farmers by 30 percent: an income boost for the farmers of 3.9 million Indonesian rupiah (US $456) per hectare annually.

Peanut farmer H. Sajidin told the IFC (International Finance Corporation): “My farm’s productivity doubled, my income improved significantly, and I can sleep peacefully at night knowing that Garuda Food will buy my crops at agreed prices.”

Raj Patel, author of Stuffed and Starved: Markets, Power and the Hidden Battle for the World Food System (http://stuffedandstarved.org/drupal/frontpage), has grappled with the conundrum of how to feed a rapidly growing planet. He finds the world is not lacking in food, but distributes its bounty very poorly and wastefully, leaving a planet where some people are literally ‘stuffed’ with too much food (the well-documented global obesity crisis) and others left to starve.

He finds the solution is often local.

“It turns out that if you’re keen to make the world’s poorest people better off, it’s smarter to invest in their farms and workplaces than to send them packing to the cities,” Patel wrote recently in Foreign Policy. “In its 2008 World Development Report, the World Bank found that, indeed, investment in peasants was among the most efficient and effective ways of raising people out of poverty and hunger.”

Patel uses the example of the southern African nation of Malawi, where “according to one estimate, the marginal cost of importing a ton of food-aid maize is $400, versus $200 a ton to import it commercially, and only $50 to source it domestically using fertilizers.”

By David South, Development Challenges, South-South Solutions

Published: May 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=joCYBgAAQBAJ&dq=development+challenges+may+2011&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsmay2011issue

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

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

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

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

This work is licensed under a
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