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Making the World a Better Place for Southern Projects

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY 

Good ideas are plentiful, but how to fund life-improving projects has always been a thorny issue. Judging how effective a project is can also be fraught with debate and contention. Over the past two decades, the number of NGOs in the global South has exploded (http://lboro.ac.uk/gawc/rb/rb144.html). The best of them offer the local knowledge and understanding required to make development gains. But unlike NGOs in the North, many lack the powerful fundraising capabilities of the big global NGO brands.

An exciting new initiative based in Germany, but already featuring hundreds of projects from across the South, is using the power of the internet to directly connect projects and donors.

Joana Breidenbach, an anthropologist, author and co-founder of betterplace.org (www.betterplace.org), says NGOs are emerging in India and other countries of the South to challenge the big Northern global NGOs.

“Why wouldn’t you want to donate to these Southern NGOs? There are more entrepreneurs and local approaches which are better.

“Betterplace gives local institutions a platform to express themselves.”

Started in 2007, betterplace is an online marketplace for projects to raise funds. It is free, and it passes on 100 percent of the money raised on the platform to the projects. The foundation that runs betterplace supports its overheads by offering additional services that people can pay for if they wish. It works in a way similar to the online marketplace eBay (http://www.ebay.com): NGOs post their project, set up an account, blog about their achievements and successes and needs, and receive donations direct to their bank account when they come in.

Breidenbach points out up to a third of any NGO’s income is spent on fundraising. In Germany, that represents more than Euro 1.3 billion out of over Euro 4 billion in private donations – money that could have gone directly into the hands of the people needing help.

With betterplace, donators can surf through the projects and pick the one they want. Already, more than 100 large corporations trawl through betterplace seeking projects to fund to meet their corporate social responsibility (CSR) obligations (http://en.wikipedia.org/wiki/Corporate_social_responsibility).

“I find it very exciting to introduce a good and innovative NGO to a corporate sponsor,” Breidenbach said.

Breidenbach says betterplace’s ultimate goal is “to transfer the donation market online.” It hopes to change the rules in donation and charity in the same way blogs and the search engine Google changed the way people publish and search for information.

“This provides better transparency, feedback,” Breidenbach said. “Now (with betterplace) donors and organizations can cut out the middlemen. A lot of established organizations do not like this too much.”

Over the past decade, new concepts like social entrepreneurs and venture philanthropy have emerged to straddle the delicate line between social good and private profit. Betterplace joins this wave of new thinking about how to do development better.

In the 20 months since betterplace went online more than 1,500 projects have joined. They are now averaging between 20 to 35 new projects joining every week.

Betterplace is a simple open-plan office on the top floor of a Berlin warehouse beside the city’s Spree river. The small team (http://www.betterplace.org/about_us/team) work on laptop computers. A blackboard on the wall details in bright colours a running tally of the projects that have joined.

Breidenbach gives the example of a mother in Cameroon who is using betterplace to raise the school fees for her children. The mother blogs about the children’s progress and has been able to raise the fees for a year and a half.

“People are now directly connected to somebody in need.”

“Right now the functionality (of the website) does not allow people getting in contact publicly and we want to enable this knowledge transfer in 2010. If you want to build a well in Cameroon then you could search for the best technology and to contact other people who are doing similar projects to learn from them.”

Success on betterplace is by no means certain. “The experience of the project managers has been as varied as development work is – some have done really well, raising thousands of Euros over the website – others have received no funding at all,” Breidenbach said.

But betterplace provides tools to give the projects the best chance possible. “Projects can present their work, breaking it down in a transparent way (in order to let supporters know exactly what is needed for their realization), there are sound payment processes in place and project managers can give feedback through their project blog, supporters can download project widgets etc., all supplied free of charge.”

Breidenbach has other tips for making betterplace work for a project: post details in English when creating a profile, break down the project into much smaller, low-cost goals (few people are willing to make large donations) – this also has the advantage of receiving payments straight away when they are small. Tell a good story about the project, and try and use actual testimonials from the people affected. Blog and update regularly with photos and videos to keep people engaged. Also avoid copying and pasting text from a previous grant application.

“We have the numbers to show that projects which give regular feedback and have a lively web of trust receive more donations than others, which are not very active.”

“Don’t think you can just go on to betterplace and the money starts rolling in,” said Breidenbach.

The betterplace platform places all projects seeking funds on the same level, allowing individuals and small NGOs to compete equally with the big, branded global NGOs with their websites and sophisticated fundraising operations.

“All the big NGOs have their own websites,” continues Breidenbach. “But it is the small initiatives that often don’t have a website or know how to use Pay Pal etc. (http://www.paypal.com). We are very useful for smaller NGOs.”

“Another big advantage is that we are a real marketplace: whatever your interests (as a potential donor), you will find a project tackling this issue on the platform.”

But what about fraud and people seeing betterplace as a coin-making machine rather than a way to make the world a better place?

“We have a feeling for dodgy projects. We check the IP address. We have a number of trust mechanisms in place (and are currently working on enlarging them). Thus projects on betterplace can create trust through their good name … But we also include something which I would call network-trust: In our web of trust different kinds of stakeholders of an organization or a project have a voice and can publicly state what they think of it. Thus beneficiaries of a project can say if the project has done them good or has been counterproductive, people who have visited the project on the ground can describe what they have seen etc. … we hope to give a much denser and more varied impression of social work and give donors (a terribly badly informed group of people), the basis for a much more informed choice.

“If a contributor to a project is dissatisfied with the project’s outcome … she can either directly contact the project manager via betterplace, or openly voice her concern on the project page for other potential donors to see her views.”

For now, betterplace is still only useful to people who have access to the internet and have a bank account (necessary for the money transfers). But in the future betterplace hopes to have mobile phone interactivity and more features to expand who they can reach.

“We are also re-working our site to make it more intuitive and easier to use for people without computer skills,” Breidenbach said. “In the pipeline is also a knowledge backbone, enabling people to access knowhow about development and social innovation issues and exchange views and experiences. This will be very useful for projects in the South as so many people are working on the same issues without knowing about it. They could learn a lot from each other, without the “help” of the north.”

With internet broadband in Africa set to take off, according to the report Africa Connect: Undersea Cables to Drive an African Broadband Boom (http://www.pyr.com/downloads.htm?id=5&sc=PR090309_INSAME1.6), even more people will soon be able to make the most of initiatives like betterplace.

Resources

1) CSR Wire: This is a news service with all the latest news, reports and events and where companies announce their CSR (corporate social responsibility) programmes and how much they are contributing. A great resource for any NGO looking to make a targeted appeal for funds. Website:http://www.csrwire.com/

2) Alibaba: Alibaba.com is an online marketplace started in China but is now global. It allows businesses from all over the world to trade with each other, make deals and find funding. Website: http://www.alibaba.com/

3) More photos from the Betterplace HQ in Berlin, Germany. Website: http://www.flickr.com/photos/15195144@N06/sets/72157622386871044/ and here https://davidsouthconsulting.org/betterplace-photos/ 

Published: September 2009

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=uXWUyfb4MacC&dq=development+challenges+september+2009&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsseptember2009issue

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

“A few weeks ago, David South, Development consultant and author of UNDP’s Development Challenges, South-South Solutions Newsletter, came by the betterplace office to take a look at our work. When I asked him how he had come about betterplace.org, he answered: he found me on twitter! So much for the twitter-scepticts. Read the article about how we can Make the World a Better Place for Southern Projects. (As the UNDP always publishes the newsletter on its South to South Website only months later, here is the link via David South’s blog).”

Photos from inside the Betterplace.org Berlin HQ: Betterplace.org HQ Photos

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This work is licensed under a
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ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021

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Frugal Innovation Trend Meets Global South’s Innovation Culture

There is a trend occurring across the global South that some are calling the next great wave of innovation. It has different names but many are dubbing it ‘frugal innovation’. Frugal innovation is basically innovation done with limited resources and investment. In short, innovation on the cheap but packing a big punch.

The phenomenon has several strands. One involves innovators and companies from the developed world setting up in the developing world and beta testing their inventions and innovations there. Another strand involves innovators in companies and governments in the global South increasingly targeting the so-called ‘BOP’ – bottom of the pyramid – market of the poor.

Another strand is focused on capitalizing on innovations for tackling the problems of the poor that are coming from the poor. Many of these innovations are improvised solutions. They may not be slick but they solve a problem.

And finally, there are companies and entrepreneurs in the global South taking their innovations to the markets of the wealthy, developed countries and finding a welcome reception from price-savvy consumers.

In the global South, frugal innovation is transforming lives – and it is finding its way into developed, wealthy countries too. It has been celebrated in the new book Jugaad Innovation: A Frugal and Flexible Approach to Innovation for the 21st Century (http://jugaadinnovation.com/) by Navi Radjou, Jaideep Prabhu and Simone Ahuja. The authors are innovation experts with a wide mix of backgrounds, from an academic to a Silicon Valley “thought leader and strategic consultant” to the founder of a marketing and strategy consultancy specialising in emerging markets innovation.

The authors propose “jugaad innovation” as a solution to the urgent need to innovate quickly and efficiently in a fast-changing world where little can be taken for granted. This breed of frugal innovation comes from India. Jugaad is a Hindi word (http://en.wikipedia.org/wiki/Jugaad) and basically means a work-around, improvised solution to a problem because it is cheaper. This is commonly used to describe makeshift vehicles people construct in India (http://wheels.blogs.nytimes.com/2011/03/25/jugaad-cheaper-than-a-nanobut-watch-for-splinters/).

As champions of the jugaad philosophy, the authors proclaim the old innovation paradigm is obsolete. The idea that throwing more capital and more resources at a problem will boost innovation, no longer works, they contend. Better results can come from being frugal and flexible. Being more creative allows for a fluid and improvised innovation culture to develop.

“In today’s interconnected world powered by social media, top-down R&D (research and development) systems struggle to open up and integrate the bottom-up input from employees and customers,” the authors say on their website.

“Jugaad on the other hand is flexible, frugal and democratic: it is often bottomup rather than top-down and involves a much larger number of people beyond those who are typically tasked with doing innovation in corporations. The strength of jugaad innovators lies in their ability to get more from less,experiment continually, and creatively engage people who are typically left out of the innovation process.”

And they have a message for the Western, developed nations. They must look to “places like India, China, and Africa for a new, bottom-up approach to frugal and flexible innovation,” if they want to experience continuing prosperity in the 21st century.

For global South inventors, entrepreneurs and manufacturers, this will prove a great opportunity. As debt-laden Western consumers deal with their lower spending power and incomes, they will be looking for products that cost less and yet tackle problems and improve their standard of living with minimal expenditure.

The Indian company Mahindra and Mahindra (http://www.mahindra.com/What-We-Do/automotive) sells its small tractors to American hobby farmers. The Chinese company Haier (http://www.haier.net/en/about_haier/haier_global/china/) has a range of frugal products that have become popular sellers. They include air conditioners, washing machines and wine coolers. Haier is so successful with these products it has been able to capture 60 per cent of the market in these categories in the United States.

Some of the hallmarks of frugal products are their efficient production, rapid development cycle, lower price point, and appeal to poorer customers.

The book argues that adopting a “jugaad” mindset will enable people and companies to innovate “faster, better and cheaper,” “generate breakthrough growth” and “outperform competition.”

“Jugaad innovation has three major benefits. First, it is frugal: it enables innovators to get more with less. Second, it is flexible: it enables innovators to keep experimenting and rapidly change course when needed. Third: it is democratic: it can therefore tap into the wisdom of otherwise marginalized customers and employees.”

“In contrast to the traditional structured approach to innovation, jugaad is inherently more customer-centric rather than technology or product centric.

Because jugaad innovators seek to solve a customer problem first and then develop a suitable solution, jugaad is more market-based than more structured approaches (that may be driven by the motivation to develop technology for technology’s sake) are.”

There are so many of these innovations and inventions happening, a culture has emerged to gather and document them and share them with others.

A good advocate of jugaad innovators in India is the Honey Bee Network (http://www.sristi.org/hbnew/). It has been building a database of grassroots innovation and knowledge (http://www.sristi.org/hbnew/augment_innovation.php).

But this dynamic innovators culture is not limited to India. Across Africa,information technology hubs and start-ups have been sprouting up. One of the more well-known is the iHub in Nairobi, Kenya (http://ihub.co.ke/pages/home.php) but there are centres of information technology innovation in Ghana, South Africa, Uganda and Nigeria.

One of the more outstanding and pioneering chroniclers of this frugal innovation culture in Africa has been the Afrigadget website (afrigadget.com).

It is packed with home-grown inventions. These include a young Kenyan boy using a rigged network of light bulbs to ward of lions from the cattle herd, a mobile phone security system for cars, and a home-made remote control toy car for children. Another great way to see this movement in action is at the Maker Faire Africa (http://makerfaireafrica.com/) which has been bringing together every year “handcrafters from Africa’s tiniest villages to her most expansive urban burgs”.

By David South, Development Challenges, South-South Solutions

Published: May 2012

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

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=m5GYBgAAQBAJ&dq=development+challenges+may+2012&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsmay2012issue

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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Computer ‘Gold Farming’ Turning Virtual Reality Into Real Profits

The rapid spread of the internet around the global South is bringing with it new forms of work. One of these trends is so-called “gold farming”: making money in the virtual world of computer gaming by trading in virtual money, prizes and goods for busy gamers who don’t have time to do it themselves. This work now employs 400,000 people – mostly men and mostly in China, but also elsewhere in the South, according to a new report.

Working out of internet centres where they can get access to high-speed or broadband internet connections, “gold farmers” use the global trade in virtual goods for online computer games in the same way stockbrokers trade shares on the world’s stock exchanges. The trade operates similarly to the stock market, with prices fluctuating based on demand and changing by the minute.

And as the report discovered, this trade is acting as a gateway into the world of information technology employment, where computer-literate young men are able to earn an income they could not have done otherwise.

It is a trade that can provide gold farmers with US $145 a month in income. They are often given free food and accommodation to do it, and many have few other economic choices.

“You can probably think of two models,” said the report’s author, Professor Richard Heeks of Manchester University’s Development Informatics Group. “They could play as an individual at a local cybercafe doing their own in-game farming and then selling to one of the trading sites (that buy from farmers at one price, then sell on to player-buyers at a higher price). Or they could be organized into a small/medium enterprise by an owner, all working together in a room full of computers.”

There is a dark side to gold farming too: there have been reports of youths forced to gold farm by gangs who make them work 12 hour days. Crime gangs sometimes become involved and scams proliferate.

Heeks says the downside is the result of governmental ignorance. “The main problem is a lack of understanding about ICT and ICT enterprise generally in some governments in developing countries and in particular a relative lack of understanding about the spread and implications of computer games.”

Supporters see gold farming as a flourishing Southern economy that is worth hundreds of millions of dollars, and exposes participants both to information technology skills and the wide horizons of the virtual computing world. Its defenders say it shows that those who dismiss the expansion of IT infrastructure as a waste of time are missing the emerging economic opportunities it is creating.

Heeks said we still know too little about this fast-evolving sector, but that “gold farming does seem to be providing income/livelihood for young men who would otherwise be unemployed. There are claims that it has helped mop up youths who had otherwise been involved in crime, but we don’t yet know how generalized such claims are.”

The number of players engaged in online gaming has grown by 80 percent per year, and Heeks sees the rise in gold farming as linked to a bigger trend: “in both North and South, we will spend increasing amounts of work and leisure time in cyberspace. Couple that with the growing penetration of ICTs into developing countries, including into poor communities, and there will be growing opportunities for this kind of ‘virtual outsourcing.’”

Currently, more than 300 million people worldwide have access to the internet through fast broadband connections (mostly in developed countries, although this is changing quickly), and more than 1.1 billion of the world’s estimated 6.6 billion people are online.

China is working hard to capture the economic power of the internet. The country’s economic boom has helped create an affluent urban middle class clamouring for the social aspects of internet access like chat rooms, while the government has been driving the roll-out of internet access in rural areas.

The country’s largest Cyber Park is under construction in Wujin New and High-tech Development Zone of Changzhou. It will be a technology incubator, a research and development centre, and a place for small and medium-sized enterprises to innovate.

China’s most ambitious digital media industry development is the Beijing Cyber Recreation District (CRD), a collection of digital media academies and company incubators spread over 100 square kilometres, creating the world’s largest virtual world development. It is already home to more than 200 game and multimedia content producers in western Beijing.

And even in Africa, where broadband penetration rates are very poor, countries are now looking to the mobile phone companies to provide their populations with access to the internet, as they struggle to find a place at the digital table.

Mauritius, an island in the Indian Ocean strategically close to Africa and better known for tourism and luxury hotels, wants to become the world’s “cyber island”, and Africa’s e-gateway. Armed with the first 3G network in Africa (the third generation of mobile phone technology – offering high-speed internet access and video telephony), Mauritius is moving fast to make good on this advantage. And it is even moving to the next level of mobile-phone speed, High-speed Download Packet Access (HSDPA) – allowing even greater quantities of information to be exchanged.

Mauritius joins a select few countries, including Japan and South Korea, at the forefront of access to 3G. Wireless – or wi-fi – computer access is available in three-quarters of the island.

By David South, Development Challenges, South-South Solutions

Published: September 2008

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

Archive.org: https://archive.org/details/Httpwww.slideshare.netDavidSouth1development-challengessouthsouthsolutionsseptember2008issue

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsseptember2008issue

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

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

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021

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Southern Innovator Issue 3

Launched in May 2011, the new global magazine Southern Innovator (ISSN 2222-9280) is about the people across the global South shaping our new world, eradicating poverty and working towards the achievement of the Millennium Development Goals (MDGs). 

Team | Southern Innovator Phase 1 Development (2010 – 2015)

They are the innovators.

Follow the magazine on Twitter @SouthSouth1. 

Southern Innovator Issue 1

Southern Innovator Issue 2

Southern Innovator Issue 3

Southern Innovator Issue 4

Southern Innovator Issue 5

If you would like hard copies of the magazine for distribution, then please contact the United Nations Office for South-South Cooperation (UNOSSC)(https://www.unsouthsouth.org/2014/12/25/southern-innovator-magazine/).

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021