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Wednesday
Jul012015

Solar Bottle Bulbs Light Up Dark Homes

 

New UNOSSC banner Dev Cha 2013

Finding ways to generate low-cost or free light has captured the imagination of innovators across the global South. The desire for light is strong: Light gives an immediate boost to income-making opportunities and quality of life when the sun goes down or in dark homes with few windows.

More than 1.7 billion people around the world have no domestic electricity supply, of whom more than 500 million live in sub-Saharan Africa (World Bank). Without a source of electricity, it is difficult to use conventional technology to switch the lights on.

While it is possible to run lights using batteries or diesel generators, these are expensive options that are not possible for many poor people. The more of a slim income that is spent on light, heat or cooking fuel, the less there is left for better-quality food, clothing, transport or education and skills development.

Low-cost light is great, but free light is even better – and one Brazilian solution is offering this.

Brazilian innovator and mechanic Alfredo Moser has taken the common plastic water bottle and created a low-cost lighting solution for dark spaces. Often makeshift homes lack decent lighting or a good design that lets the light in during the day. This means it may be a bright, sunny day outside, but inside the home or workplace, it is very dark and reading or working is difficult.

Moser came upon the idea during regular blackouts in his home city of Uberaba (http://www.uberaba.mg.gov.br/portal/principal) in southern Brazil during 2002. During the blackouts, only factories were able to get electricity, leaving the rest of the population in the dark.

The “Moser Light” involves taking plastic bottles, which are usually just thrown away or recycled, and filling them with water and bleach to draw on a basic physical phenomenon: the refraction of sunlight when it passes through a water-based medium.

It is a simple idea: Holes are drilled in the ceiling of a room and the bottles placed in the holes. The liquid-filled bottle amplifies the existing sunlight (or even moonlight) and projects it into the dark room. This turns the plastic bottle into a very bright lightbulb that does not require any electricity.

Moser uses a solution of two capfuls of bleach added to the water to prevent anything growing in the water such as algae because of the exposure to sunlight.

“The cleaner the bottle, the better,” he said.

Polyester resin is used to seal the hole around the plastic bottle and make it watertight from rain.

Moser claims his bottle innovation can produce between 40 and 60 watts of light.

Moser uses recycled plastic bottles, so the carbon footprint is minimal compared to the manufacture of one incandescent bulb, which takes 0.45 kilograms of CO2 (UN). Running a 50 Watt incandescent light bulb for 14 hours a day for a year, around the same light as produced by the bottle bulb, produces a carbon footprint of nearly 200 kilograms of CO2.

“There was one man who installed the lights and within a month he had saved enough to pay for the essential things for his child, who was about to be born. Can you imagine?” Moser told the BBC.

The plan is to try and get as many as a million homes fitted with the lighting system by the end of 2013.

In many poor areas, it is common to live in makeshift or rudimentary dwellings. These are often built to crude designs and, in order to keep costs down and boost security, will have few or no windows. These dwellings will consequently be very dark inside, even on the brightest days. This leaves people having to turn to a source of artificial light if they want to do something indoors like read or work. And this costs money. Be it electricity from a mains, or battery-powered lamps or gas-powered lanterns, the cost will eat into a person’s tight income. This is where Moser’s simple solution saves the day and saves pennies: it is free light once the bottle lamp system is installed.

Placing the bottle lights in the ceiling transforms the ceiling into something akin to the night sky, with many points of light shining down into the room like stars. It also means the occupant of the room does not just have to strain to see with the use of a single light but now has many lights illuminating the room from all angles.

“It’s a divine light,” Moser told the BBC World Service. “God gave the sun to everyone, and light is for everyone. Whoever wants it saves money. You can’t get an electric shock from it, and it doesn’t cost a penny.”

It has not been a road to riches for Moser. He has made some money installing the system in a local supermarket and nearby homes, and he has inspired a charity to install the lighting system and to train people to do the installation and make an income from it.

The MyShelter Foundation in the Philippines was inspired by Moser’s invention and has installed the system in some 140,000 homes there, the BBC reported.

“We want him to know that there are a great number of people who admire what he is doing,” MyShelter Executive Director Illac Angelo Diaz said of Moser.

Using bottle bulbs instead of electricity or generators means families can save US $6 per month, according to Diaz (CNN). The Philippines is reported to have the most expensive electricity in Asia and slum homes usually do not have electricity.

It is estimated 15 other countries also have homes using the Moser system. The MyShelter Foundation believes 1 million homes worldwide have used the Moser system as of 2013.

Liter of Light (http://aliteroflight.org), run by the MyShelter Foundation, offers instructions on how to install the lighting system on its website.

By David South, Development Challenges, South-South Solutions

Published: September 2013

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=bfhcAwAAQBAJ&dq=development+challenges+september+2013&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/september-2013-development-challenges

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

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

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

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

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

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Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Wednesday
Jul012015

China Sets Sights on Dominating Global Smartphone Market

New UNOSSC banner Dev Cha 2013

The rise of smartphones – mobile phones capable of Internet access and able to run ‘apps’ or applications – is the latest wave of the global connectivity revolution. Mobile phones rapidly made their way around the world to become almost ubiquitous – the most successful take-up of a piece of communications technology in history – and now smartphones are set to do the same. The number of mobile phone subscriptions in the world surpassed 6 billion in 2012 (out of a population of 7 billion) and, according to the International Telecommunications Union (ITU), the number of mobile phones will exceed the world’s population by 2014.

Over the last five years, with the increasing popularity of smartphones, the focus of the mobile industry has shifted from voice and messaging to apps and data services.

Smartphones are complex pieces of technology and any country that can develop the capability to make them and innovate is set to make a lot of money.

The high export value potential of designing and making “computer equipment, office equipment, telecommunication equipment, electric circuit equipment, and valves and transistors” was flagged up as a priority for developing nations back in 2005 at a UN meeting looking for “New and Dynamic Sectors of World Trade” (UNCTAD).

At present, smartphones have a long way to go to surpass old-style mobile phones: by the end of 2016, according to Portio Research (portioresearch.com), the number of non-smartphones in the Asia-Pacific region alone will still be bigger than the entire worldwide number of all smartphones. Even so, it’s predicted that by 2016, there will be 555 million active smartphones in China alone, as well as half a billion smartphones in Europe by the end of 2014. By 2013, North America’s smartphones will make up 50 per cent of all mobile phones. All in all, a lucrative market.

The main factor holding back the rise of smartphones is price. Smartphones tend to cost more than a basic mobile phone. But as China gets more heavily involved in the smartphone marketplace with its own smartphone and mobile phone brands, low income consumers will find themselves with a wider choice of affordable and powerful smartphones, each one a mini-computer.

Out of the 10 largest global manufacturers of smartphones, four are Chinese: Lenovo, Yulong, Huawei and ZTE (Gartner).

Huawei (http://www.huawei.com/en/), the world’s biggest smartphone seller (according to research firm Canalys) (canalys.com), has started to move some of its design team to London in the United Kingdom, to better tailor its products for foreign markets. It has revenues each year of US $35 billion.

China’s mobile phone market is vast, accounting for a third of all smartphones sold in the world. Getting a foothold in this marketplace places a company in a very strong position to build the expertise and capital to push into the wider global marketplace. And that is what Chinese brands are starting to do. So far, Chinese exports of branded smartphones make up a fifth of those sold around the world (Canalys).

The big global competitors to date have been South Korea’s Samsung (samsung.com) and the American Apple brand (apple.com). Other large competitors are Canada’s troubled Blackberry and Finland’s Nokia.

To compete with them, popular and successful Chinese brands include Xiaomi (xiaomi.cn), which sells more mobile phones in China than does the American Apple brand, and ZTE (http://wwwen.zte.com.cn/en/).

For years, many of the top global brands have had their phones and the components manufactured in China. This meant Chinese manufacturers were assembling the phones but not benefiting from the high value that can be extracted from being the owner of the brand name and the originator of the innovation and holder of the copyrights and trademarks.

But now China’s Lenovo brand (http://www.lenovo.com/uk/en/), for example, has successfully pulled past U.S. electronics maker Hewlett-Packard (www.hp.com) to become the largest seller of personal computers in the world. It is also selling more mobile phones and tablet computers than personal computers.

Lenovo Chief Executive Yang Yuanqing espouses a two-part strategy to defend market share at home in China while going hard at overseas markets. Lenovo started with so-called emerging markets in Russia, India and Indonesia.

“We have very aggressive plans to explore overseas markets,” Lenovo’s mobile phone division head Liu Jun told China Daily. “We hope the overseas market will contribute more than half of Lenovo’s total smartphone revenue in the long run.”

Xiaomi founder Lei Jun is considered part of a new generation of dynamic Chinese technology leaders. His casual clothing and charismatic public presentations have had some equate him to the late Apple founder Steve Jobs. But Jun is not happy with selling smartphones and instead sees the company’s future in software and that the phones are just a tool to access the software. Xiaomi hopes to make even more money from selling games, running online marketplaces and offering social media.

The Chinese-made smartphone brand Coolpad (http://coolpadamericas.com/) – made by Yulong Computer Telecommunication Scientific Co. – is the third best-selling in the Chinese marketplace, surpassing Huawei and Apple and has global annual revenue of US $1.8 billion, according to Forbes magazine. Sino Market Research found 10.2 per cent of China’s smartphone users own a Coolpad, behind Korean brand Samsung and China’s Lenovo.

Coolpad has succeeded by investing heavily in research and development (R&D) and innovation to make the phones cheap but also powerful.

Innovations include technology that lets users have more than one phone number for the same phone by being able to connect to two different network technologies. The phones also include security and privacy protections that make them popular with businesspeople and government officials.

The Coolpad brand has also been frenetic in launching different models of the phones to appeal to its customers. In 2012, it launched 48 different models, selling for between US $50 and US $500.

Coolpad was launched in 2012 in the US as part of the company’s global expansion plans.

China has placed innovation at the core of its economic development policies. China increased its R&D spending in 2009 to US $25.7 billion, a 25.6 per cent rise over 2008, according to Du Zhanyuan, vice minister of the Ministry of Science and Technology. In 2011, China surpassed South Korea and Europe in total patents filed and was in a neck-and-neck race with Japan and the United States.

China now boasts twice as many Internet users as the United States, and is the main global maker of computers and consumer electronics, from toys to games consoles to digital everything.

China is also on course to become the world’s largest market for Internet commerce and computing.

The drive to change and transform China’s global economic role was promoted in 2011’s Beijing International Design Week (http://www.bjdw.org/en/), with its theme of transforming “Made in China to Designed in China.”

By David South, Development Challenges, South-South Solutions

Published: September 2013

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=bfhcAwAAQBAJ&dq=development+challenges+september+2013&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/september-2013-development-challenges

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

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

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

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

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

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Update: Huawei Loses Millions Of Users As Serious New Threat From China Gets Real

"Make no mistake—Xiaomi intends to entice Huawei consumers with upgraded phones such as the recent Mi 10 Pro, better able to compete with Huawei’s flagships in overseas markets. The company is also making a feature of its “easy access to Google,” as its marketing goes head to head with its larger Chinese rival. Right now, Xiaomi has a unique opportunity to strip away market share with Huawei helpless on the Google front. And it seems that millions of Huawei users outside China who want to maintain Google on their phones are already voting with their wallets."

 

Wednesday
Jul012015

Poorest Countries Being Harmed by Euro Currency Crisis

 

New UNOSSC banner Dev Cha 2013

The ongoing economic crisis in Europe is forecast to harm the economies of the world’s poorest countries if it continues, according to a study by the United Kingdom’s Overseas Development Institute (ODI) (odi.org.uk).

As an example, Kenya’s shilling currency has weakened and increased the cost of imports, leading to a surge in inflation, while the number of European tourists has declined, according to Business Daily.

Raging since 2009 (http://www.bbc.co.uk/news/business-13856580), the eurozone crisis has seen several European countries struggling to pay debts built up during the boom years, and this has threatened the currency compact among countries that use the euro single currency (http://www.ecb.europa.eu/euro/html/index.en.html). Several countries have introduced harsh austerity measures to try and rein in the debts and stabilize economies while keeping countries within the eurozone.

This has had the consequence of dramatically raising unemployment levels, reducing consumption of goods and services and increasing poverty rates in many European countries. Some governments have responded by reducing the amount of legal labour migration allowed into their countries.

The study estimates that the euro crisis could amount to a loss of US $238 billion for poorer countries from 2012 to 2013 as aid, trade, investment and remittance payments sent home to relatives and friends are damaged by the crisis.

This would particularly harm export-dependent, emerging-market countries. The study found demand was weakening for products from low and low-to-middle income countries. This would in turn harm growth in these countries. Growth in the past decade has helped many countries lift millions of people out of poverty and enabled the growth of new middle classes, who in turn use their rising incomes to purchase consumer goods and invest.

The crisis will cause developing countries’ currencies to drop in value if they are pegged to the euro, and for countries to be economically harmed because of austerity policies in European countries, said the study’s author, Dr. Isabella Massa.

“The EU remains the largest single export market for poorer countries, although it is the emerging BRIC economies which are their main source of imports.”

The European Union (EU) (http://europa.eu/index_en.htm) is the biggest market in the world and the largest importer of goods from developing countries. The ODI report found a 1 per cent drop in global export demand has the knock-on affect of reducing growth in poor countries by 0.5 per cent. The countries most at risk from the crisis are Mozambique, Kenya, Niger, Cameroon, Cape Verde and Paraguay.

For example, 17 per cent of Ivory Coast’s exports go to the EU. Mozambique sends 14 per cent of its exports to the EU and Nigeria sends 10 per cent.

Tajikistan in Central Asia was the most highly dependent economy on remittance payments from its workers living outside the country to prop up its GDP (gross domestic product). Remittance payments from Tajik citizens outside the country made up 40 per cent of GDP.

Liberia and the Democratic Republic of Congo were both heavily dependent on foreign direct investment (FDI) from Europe in 2010.

Many countries have also grown used to strong demand for their resources in recent years as China has rapidly developed and urbanized, sucking in more and more resources from around the world, including sub-Saharan Africa.

“Poor countries are vulnerable to the euro crisis not only because of their exposure (due to dependence on trade flows, remittances, private capital flows and aid) but also because of their weaker resilience compared to 2007, before the onset of the global financial crisis,” said Massa.

“The ability of developing countries to respond to the shock waves emanating from the euro area crisis is likely to be constrained if international finance dries up and global conditions deteriorate sharply.

“The escalation of the euro crisis and the fact that growth rates in emerging BRIC economies, which have been the engine of the global recovery after the 2008-9 financial crisis, are now slowing down make the current situation really worrying for developing countries.”

Despite the gloom, there are many positive and powerful antidotes to this economic crisis, including rising South-South trade and innovation, which shows it is possible to reduce dependency on wealthy-developed countries alone for economic prosperity.

By David South, Development Challenges, South-South Solutions

Published: September 2013

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=bfhcAwAAQBAJ&dq=development+challenges+september+2013&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/september-2013-development-challenges

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

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

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

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

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

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

 

Wednesday
Jul012015

Solar-Powered Mobile Clinics to Boost Rural Healthcare in Africa

 

New UNOSSC banner Dev Cha 2013

Around the world, innovative thinking is finding new ways of using solar power technology to bring electricity to underserved areas of the global South. Innovators are experimenting with new technologies, new business models and new ways to finance getting solar power into the hands of the poor.

One recently launched new solution is a solar-powered mobile health clinic that is bringing 21st-century medical diagnostic services to rural areas.

The US $250,000 Solar Powered Health Centre has been built by the Korean technology company Samsung (http://www.samsung.com/africa_en/news/localnews/2013/samsung-launches-solar-powered-health-centre-model-to-bring-quality-healthcare-to-rural-areas).

A truck packed with medical equipment that draws electricity from solar panels, it is traveling to rural, underserved parts of sub-Saharan Africa.

The truck is seven metres in length and comes packed with medical goodies, including a fully equipped eye and blood clinic and a dental surgery. It hopes to make it easier to reach the six in 10 residents of sub-Saharan Africa who live in rural areas, and who are often very far from affordable medical services. There is a blood analyzer, spectacle repair kit, and a non-contact tonometry test to measure the inside of a person’s eye. People can also be tested for HIV, malaria and many other conditions.

Samsung (samsung.com) developed the truck as part of its efforts to create “Built for Africa” technologies. The truck was built in Johannesburg, South Africa, helping create local jobs and skills.

Samsung hopes to scale the initiative to a million people in Africa by 2015.

The clinics were launched in Cape Town at the 2013 Samsung Africa Forum and are being rolled out by Samsung Electronics Africa (http://www.samsung.com/africa_en/#latest-home) as part of what the company calls a “large-scale medical initiative on the continent”.

The roaming trucks will be staffed by qualified medical professionals and will educate people about the importance of preventive medical screening.

Targeted conditions include diabetes, high blood pressure, tooth decay and cataracts. The clinics will also conduct public health education campaigns about the importance of preventive medicine (http://en.wikipedia.org/wiki/Preventive_medicine).

“What many see as minor health issues will not only get worse over time, but will affect other aspects of quality of life. The child that cannot see properly cannot learn properly,” said Dr. Mandlalele Mhinga, a member of the Nelson Mandela Children’s Hospital (http://nelsonmandelachildrenshospital.org/). “Mobile solutions help address this issue by making medical services accessible to more people in rural areas, and educating them about health care at the same time.”

The mobile clinics hope to reduce the vast difference between the quality of health care available to rural residents and people in urban areas.

Even in countries such as South Africa with the highest level of development in the region, medical care coverage is patchy and unreliable. For those who can afford it, 20 per cent of the population, there are private medical schemes. But everyone else must rely on an over-stretched and under-funded public health sector.

Samsung has based this innovation on its first-hand experience with providing medical services to rural areas in Africa.

“This experience has shown us how desperately medical treatment is needed across the continent, and inspired us to develop a sustainable and innovative solution to reach the people who need it most,” said Ntutule Tshenye, Business-to-Government and Corporate Citizenship Lead for Samsung Africa. “While our CSR (corporate social responsibility) strategy in Africa is largely focused on education, our efforts to enrich lives will not be felt if people’s basic needs, such as access to healthcare, are not met.”

Samsung’s “Built for Africa” product range (http://www.samsung.com/africa_en/africancitizenship/home4.html) also has a wide range of other projects and initiatives to boost health and living standards on the continent. These include education programmes, such as the Samsung Electronics Engineering Academy, Samsung Solar Powered Internet Schools, the Samsung Power Generator, and the Samsung eLearning Centres.

Samsung Electronics Co., Ltd. is a consumer electronics multinational and employs 227,000 people worldwide.

By David South, Development Challenges, South-South Solutions

Published: August 2013

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=YfRcAwAAQBAJ&dq=development+challenges+august+2013&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challenges-august-2013-issue

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

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

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

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

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

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This work is licensed under a
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Tuesday
Jun302015

Vietnamese Google Rival Challenging Global Giant

New UNOSSC banner Dev Cha 2013

Information technologies are creating new business opportunities across the global South. As more and more people gain access to the Internet in one form or another, opportunities to offer them services also increase.

A number of key trends show how the Internet’s profile is being reshaped by the growing number of users from the global South. One of those trends is language. English was the first language to dominate the Internet – but this is changing, according to the latest data.

China has the largest number of Internet users in the world (China Internet Network Information Center) and the Chinese language is the second-most often used online, behind English and before Spanish and Japanese (http://www.internetworldstats.com/stats7.htm).

While most English-language users turn to the giant Google search engine to look things up on the Internet, Google also has many rivals chasing its tail. In China, Baidu (baidu.com) offers searches in Mandarin using Chinese characters, making the Internet easier to navigate for Mandarin speakers. Elsewhere, Arabic language Internet users are being offered new services and urls using Arabic characters.

In short, the Internet is becoming multilingual, customized and local, and creating new opportunities with it.

One new business in Vietnam is challenging Google with its own locally tailored search engine. Called Coc Coc (http://coccoc.com/) – Knock Knock in English – it has already spent US $10 million to hire 300 staff at its Hanoi base, according to the Associated Press. Whether Coc Coc is successful or not in the long term, it is clear as a business it is already helping the local economy by hiring so many people and investing in Vietnam. Google currently does not have any staff in Vietnam because of its concerns about legal conflict with the government over censorship of content on the Internet, AP reports.

Coc Coc believes it has developed a system that better understands the grammar, syntax and nuances of the Vietnamese language. Another advantage it believes it has over Google is its large presence on the ground in Vietnam. With a headquarters in Hanoi, it can quickly make marketing deals and agreements with content providers. To further its local advantage, Coc Coc has dispatched camera crews and photographers to film and photograph streets and log the details of shops, cafes and businesses – all to make search results more accurate and richer in detail.

The headquarters is spread out over four floors of a downtown office block in Hanoi, and according to the Associated Press has a relaxed atmosphere similar to that found in many places in California’s technology start-up culture.

Coc Coc is a joint Russian-Vietnamese venture and is hoping to ride the fast-growing Asian Internet market by offering a search tool that understands the nuances of the Vietnamese language online. By using algorithms (https://en.wikipedia.org/wiki/Algorithm) it promises to give a faster and better search experience to Vietnamese-language users. It also uses its knowledge of the local scene to  tailor results to users’ needs.

The plan is to spend US $100 million during the next five years to lure 97 per cent of Vietnamese Internet users to make the switch from Google.

“When I came here, I had some understanding why Vietnam was a good market to beat Google,” said Mikhail Kostin, the company’s chief search expert. “But after living here for one year, I understand the language and market much more deeply. I’m sure it’s right.”

Having a local search engine tool can be a successful approach. The Yandex (http://www.yandex.com/) search engine in Russia beats Google in the Russian-speaking market. In South Korea, there is the Naver (naver.com) search engine.

Google battled it out with the Chinese search engine Baidu in 2010 before leaving the country when Google refused to abide by government censorship guidelines. Baidu in the meantime has become the number one search engine in China and is planning to expand to other markets throughout Asia.

“Google is a foreign company, and they are not here,” said one of the three founders of Coc Coc, Nguyen Duc Ngoc. “We can serve the interests of the local market better.”

Vietnam has been experiencing rapid economic growth since the introduction of the Doi Moi (https://en.wikipedia.org/wiki/Doi_Moi) economic reforms two decades ago in 1986.  Vietnam is fast becoming an Internet success story, with a third of its population of 88 million (World Bank) (http://www.worldbank.org/en/country/vietnam) now online. Many are accessing the Internet through their mobile phones and electronic devices.

Vietnam connected to the Internet in the 1990s and the infrastructure was built up in the mid-2000s. A national plan that kicked off in 2005 accelerated take-up of the Internet in the country as more and more people accessed the Internet through mobile phones, often at home, rather than just in public Internet centres. One study found 71 per cent of users in major cities were accessing the Internet at home (https://opennet.net/research/profiles/vietnam). One in three people in Vietnam now has access to the Internet. Significantly, the Internet has been an overwhelming success with youth in the main cities of Hanoi and Ho Chi Minh City, where 95 per cent of people in the 15-to-22 age group has Internet access.

Optimists point to Vietnam’s large youth population, fast-growing economy and its modern Internet infrastructure as advantages that will boost its Internet economy. This is attracting entrepreneurs and investors from across Asia and around the world working in the field of online content, e-payments systems and other online services.

With Vietnam’s Internet scene on fire, many people and companies are piling in to come up with the Next Big Thing online. Many have failed, but the same is true in every other country where new information technologies have been introduced. The nature of information technology innovation means ideas quickly rise or die depending on whether Internet users find the innovation useful or attractive. Despite great ideas, there are often far too many factors at play to guarantee any one person or company will have a success on their first try. As has happened elsewhere, ideas hatched by small start-ups, if good, are gobbled up by larger companies. Talented and skilled people usually find themselves being chased by other companies.

By David South, Development Challenges, South-South Solutions

Published: August 2013

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

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

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

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

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