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Book Boom Rides Growing Economies and Cities

By David SouthDevelopment Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

Along with growing economies, the global South is seeing growing numbers of readers and a newly flourishing publishing industry. The creative economy – of which book publishing is part – is experiencing a jolt from a combination of expanding economies and urbanizing cities. Just as the first settled cities of ancient Mesopotamia (today’s Iraq) spawned literature and learning, so the rapidly urbanizing South is changing dynamics and creating the space and demand for books.

The creative economy is seen as the “interface between creativity, culture, economics and technology in a contemporary world dominated by images, sounds, texts and symbols” (UNCTAD). It has been shown to be an effective way for emerging economies to leapfrog into high-growth areas in the 21st century world economy.

Telling stories about local conditions and people’s rapidly changing lives is proving a commercial success formula. Fast-growing India is forecast to become the largest market for English language books within a decade. India’s economic boom, which saw 6.7 percent growth in 2009, and its expanding middle class are driving demand for books. India saw the number of literate people pass 66 percent by 2007.

“It is a forward-looking generation,” said Manish Singh, country manager for publisher Harlequin Mills and Boon, to The Guardian newspaper.

Estimates of India’s book reading market put the number of readers at just 5 million out of a population of over 1 billion people. But according to Anantha Padmanabhan, the director of sales in India for publisher Penguin, “that is set to increase dramatically.”

A survey by Tehelka (http://www.tehelka.com) found Indians are favouring stories about local conditions and set in the places where they live.

India’s most popular current writer is Chetan Bhagat, a former investment banker. He has sold more than 3 million books in the last five years. His latest, Two States, sold a million copies in four months.

Bhagat writes about the country’s aspiring middle class. His publisher, Rupa (http://www.rupapublications.com/Client/home.aspx), believes he appeals to a “pan-Indian, pan-age group.”

Bhagat puts his success down to the way the stories are written. “This is not like the mature English literature market,” he said. “It needs an English that is highly accessible, simple, and with stories that are still interesting and relevant.”

Book prices in India have stayed affordable for the middle classes. A book can cost from US $1.85 to US $2.65 for a paperback – still a high cost for the poor, however, who live on a dollar a day.

In Egypt, around 30 percent of the population is illiterate and book reading has been historically very low: it has been claimed an average literate Egyptian reads a quarter of a page of a novel per year. From this low base, a best seller only needs to sell a few thousand copies.

However, in Egypt small-scale independent publishers are starting to make an impact. Mohamed Hashem – founder of the Dar Merit publishing house (http://www.zoominfo.com/Search/ReferencesView.aspx?PersonID=1007104230) – has built from scratch in 12 years one of the country’s most critically acclaimed publishers: all from a tiny apartment in a rundown Cairo building.

“We can’t compete with the big firms in terms of profits,” he told The Guardian, “but the new wave of authors will always be sitting here. Yes, we have poverty and limited resources. But we also have the future.”

Launched to counter what Hashem felt was an unimaginative book market, his stable of authors have shaken up the Arabic fiction world. The global success of Alaa al-Aswany’s The Yacoubian Building (http://en.wikipedia.org/wiki/The_Yacoubian_Building) is proof Hashem’s gamble on edgy talent was correct: rejected by two government-run publishing houses, the book went on to be a hit in English and Arabic and has been made into a film.

Hashem is being credited with unleashing a wave of new talented authors that has pushed literature out from being the preserve of a select group.

One of its successful authors, Hamdi Abu Golayyel – winner of the country’s top literary prize, the Naquib Mahfouz medal – believes “Merit has changed the way pioneering literature emerges in Egypt.”

“Before, you had the innovative writers – there are normally no more than five or six in a generation – meeting together in mutual isolation, because popular opinion rejected them.”

Merit “had the drive and ambition to support and distribute new and younger authors properly. Today innovative writing is wanted by the people.”

Hashem’s secret in attracting talented writers has been more than just business savvy: he also gives them “the freedom to write in my own way,” according to writer Ahmed Alaidy.

The writers also have a credibility advantage: they are writing about their circumstances rather than just imagining what it would be like. Writer Hani Abdel Mourid comes from Cairo’s traditional garbage-collecting neighbourhood; another author, Mohamed Salah Al Azab, has written a book named after the folding seats on Egypt’s lively minibuses.

Demographic changes and Cairo’s relentless expansion are being cited as the catalyst for the new writing.

“The fact that the city has grown the way it has,” says Samia Mehrez, a literature professor in Cairo, “the fact that what we used to call the periphery is now the centre, that is very important.”

“The year we started, we published five titles and the number of people interested could be counted in the dozens,” he told The Guardian. “Now we have 600 titles under our belt, and thousands are interested. It’s my duty to try and expand that circle. We’re chipping away at a wall, and slowly we’re making progress.”

Published: May 2010

Resources

1) Creative Economy Report 2008. An economic and statistical assessment of creative industries world-wide as well as an overview of how developing countries can benefit from trade in creative products and services produced by UNCTAD and the Special Unit for South-South Cooperation in UNDP. Website: http://www.unctad.org/en/docs/ditc20082cer_en.pdf

2) Global Creative Economy Convergence Summit 2009: The summit is about the successful and emerging creative technologies and initiatives that are driving economic growth locally, nationally and internationally. Website: http://www.gcecs2009.com/

3) A directory of Indian publishers. Website: http://www.publishersglobal.com/directory/publishers-by-country.asp?publishers-of=India

4) Full Circle Publishing: A successful Indian publishing company. Website: http://www.atfullcircle.com/

5) Jaipur Literature Festival: Described as the ‘greatest literary show on Earth’, the Jaipur Literature Festival is a sumptuous feast of ideas.The past decade has seen it transform into a global literary phenomenon having hosted nearly 2000 speakers and welcoming over a million book lovers from across India and the globe. Website: https://jaipurliteraturefestival.org/

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

© David South Consulting 2022

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South Gets Reading Bug with more Festivals

By David SouthDevelopment Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

There is no better indicator of significant economic progress than the rise and rise of book festivals across the South. These symbols of intellectually curious and globally aware middle classes are also boosting economies and contributing to a bigger, more sophisticated creative economy – something that will drive future growth across many sectors.

The trend is most advanced in Asia, where according to the OECD, “large numbers of Asians are expected to become middle class in the next 10 years” (OECD Working Paper No. 285). But the rising middle class can also be found across the South – and so can the new book festivals.

According to Sanjoy Roy, managing director of New Delhi-based festival producer Teamwork Productions (www.teamworkfilms.com) ,” India’s rising economic growth has ensured that the great middle class is happy to travel and to spend.”

“More and more Indians are taking to tourism both local and international. India’s large middle-aged upper middle class and wealthy sector feeds occasions like the literature festival, ensuring attendance, making it a word of mouth must-be-seen, must-attend occasion on the social season calendar.”

Recognition of the importance of this trend can be seen in the recent growth in book festivals associated with the Hay Festival (www.hayfestival.com) based in Hay-on-Wye, Wales. There are now Hay festivals in Beirut, Lebanon; Bogota and Cartagena, Colombia; Zacatecas, Mexico; Nairobi, Kenya; the Maldives; and the Indian state of Kerala.

The festivals are part of the powerful global creative economy, which is seen as the “interface between creativity, culture, economics and technology in a contemporary world dominated by images, sounds, texts and symbols” (UNCTAD). The cultural sector has been shown to be an effective way for emerging economies to leapfrog into high-growth areas in the 21st century world economy.

Roy also confirms the economic impact of book festivals. He produces India’s Jaipur Literature Festival (www.jaipurliteraturefestival.org) , which attracted over 32,000 visitors this year. The hard numbers show the economic impact of the event: “Approximately 3,000 room nights were booked by visitors during this period at an average of US $100 per night,” Roy said. “Our own spend in Jaipur during this period was approximately US $500,000. Shopping, meals and transport spend I would peg at between US $200,000 and US $300,000.”

The OECD defines the global middle class as those living in households with daily per capita incomes of between US$10 and US$100. It calculates that Asia accounts for less than one-quarter of today’s middle class, but says that share could double by 2020. Within a decade, “more than half of the world’s middle class could be in Asia and Asian consumers could account for over 40 per cent of global middle class consumption.”

The World Bank takes an even more optimistic view, seeing this burgeoning middle class’ spending power as being triggered once people get out of the desperation of a subsistence existence. This means the “developing world’s middle class is defined as those who are not poor when judged by the median poverty line of developing countries, but are still poor by US standards. The “Western middle class” is defined as those who are not poor by US standards.” Although barely 80 million people in the developing world entered the Western middle class over 1990-2002, it found an extra 1.2 billion people joined the developing world’s middle class. Four-fifths came from Asia, and half from China (World Bank).

With the rise of the creative sector, significant innovation will come from the global South, according to the director of the Hay Festival, Peter Florence.

“The digital revolution will be absolutely essential to developing countries,” he told the Associated Press. “They are going to skip two levels of publishing industry tradition. The mobile phone is more important for writers in those societies than pen and paper is. That is a very interesting continuation of oral culture. At the same time the West has decided to start moving from audio editions to digital downloads, oral culture is just moving straight into digital culture in many places around the world.”

The impact of a growing middle class can be seen in fast-growing India, which is forecast to become the largest market for English language books within a decade.

A survey by Tehelka (www.tehelka.com) found Indians favour stories about local conditions and set in the places where they live.

India’s most popular current writer is Chetan Bhagat, a former investment banker. He has sold more than 3 million books in the last five years. His latest, Two States, sold a million copies in four months.

Bhagat writes about the country’s aspiring middle class. His publisher, Rupa (www.rupapublications.com/Client/home.aspx) , believes he appeals to a “pan-Indian, pan-age group.”

For Roy, it is still too early to tell how the new Hay Kerala festival in the state capital, Thiruvananthapuram, will affect the economy of the area (the first one is from November 12 to 14, 2010).

“In the long term we hope this too becomes like Jaipur, attracting an international and national audience from outside the state,” he said. “Kerala has a robust economy. What it may do is increase the total tourist influx into the city and divert some of the annual Goa traffic to its own benefit.”

Roy says the Hay Festival Kerala will follow the programming pattern of other Hay festivals, combining international authors with a strong local flavour.

“India is celebrating its golden age in the creative arts and literature not just in English but across all official and subsidiary Indian languages,” he said. “The depth, scope, extent and range of writing in both fiction and non-fiction is incredible.”

Drawing on his success with the festival in Jaipur, Roy has advice for others in the South looking for creative economy success.

“It’s all about location, location, location,” he said. “A festival city like that of Cannes, Venice, Edinburgh, Avignon, Hay are special. Choose the right location, be inclusive and bring the local community on board and have the power to sustain – and in due course with a strong programming base, the festival will grow.

“Every festival will have its own learning (curve) and those who take these on board will find it easier to be successful.”

Published: June 2010

Resources

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. 

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 2022

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Women Mastering Trade Rules

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

Market trading is a vital lifeline for most people in the South. Plenty of delights usually await people in the market, where live animals, herbs and spices, fresh fruits and vegetables, and life’s necessities compete for customers’ money. The formal and informal food sector plays a crucial role in empowering women and providing food to the poor. Women are often those mostly responsible for selling fresh products and street food, and running small catering operations. By being a vendor and getting food at a lower cost, they are able to contribute to their families’ food security.

Trading and selling in the marketplace can be one of the best options for poor women. By trading, women gain economic independence, learn vital business skills and enjoy the social benefits of interacting with others. But the highly individualistic nature of market trading has its downside: traders must do everything themselves and a day not spent at market is a day’s income lost. They also can only buy in small quantities, and usually pay a higher price. Or don’t know what the competitive price is, so are in a weaker bargaining position with wholesalers.

Making market trading more efficient has huge advantages, the primary one being more money for the trader.

Women market traders in Nigeria are improving their efficiency and income with mobile phones. Rural women market traders in the Obiaruku market are using mobile phones to call their suppliers, access information like commodity prices, and contact customers. A survey of the traders found 95 per cent thought mobile phones had a big impact on their business. This has included fewer trips to suppliers, a quicker way to get help when they have been robbed, and opportunities to top-up incomes by selling airtime, handsets or mobile phone accessories.

In Nigeria, mobile phone use has shot up at a rate of 25 per cent a year. A recent study found that out of a population of 140 million, 12.1 million now have mobile phones and 64 million use mobile phones through street-side phone centres. Phones are also helping women market traders to keep tabs on price fluctuations – giving them an advantage when bargaining with crafty – mostly male – suppliers. A weak bargaining position is a common problem: In Ghana, for example, product producers are forced to sell through “market queens” who take advantage of the lack of price transparency and do not always pay producers fairly (De Lardemelle, 1995).

In the Madurai region in southern India, women market traders are using a system called CAM. It allows them to record all their business transactions. CAM uses a Nokia 6600 mobile phone to record daily transactions. This includes small loans, buying livestock, or operating tiny retail businesses. The phone’s camera takes pictures of bookkeeping forms to identify and track all documents. The phone then asks the user to input numbers to the data fields. At the last key, the data is sent via text message to a central server. According to Tapan Parikh, a professor at the University of California at Berkeley School of Information in the United States, the most successful technological solutions work because they include village leaders, customers, NGOs, and others in the design process. “This is the only way to ensure long-term sustainability and benefit,” he said.

In Soweto, South Africa a simple solution to a chronic problem for women market traders has emerged. After seeing hundreds and sometimes thousands of women selling their goods in the marketplace, it became clear they all had one thing in common: they closed on Mondays. They did this because they needed to go to the wholesaler to buy their goods. And they mostly did this by piling into taxis to get there. It hurt the profitability of their businesses in many ways: there was the cost of the taxi, the fact they could only buy small amounts to squeeze in the taxi, a day’s business was lost, and the lack of a discounted, bulk price.

But the solution to this problem is a bright one: the women place a bulk, wholesale order with a go-between who works with a computer out of a former shipping container. He logs the orders into his computer and sends one big order. The wholesaler is happy with the big order, and delivers it and gives him a 15 per cent discount. This is his profit. The women pay the same price as before, but do not have to pay for the taxi and the goods are delivered directly to them. On top of this, the women can stay open on Monday and make more money!

Published: May 2008

Resources

Creative Commons License

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Food Inflation: Ways to Fight It

By David SouthDevelopment Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Resources

1) The global movement for slow food, which encourages organic production and appreciation of traditional foods and cooking. Website: www.SlowFood.com

2) A video story by CNN on Tradenet/Esoko. Website: http://www.youtube.com/watch?v=s6z0ywkHPPQ

3) Olam: The story of Olam – a global food supply company in ‘agri-products’ that got its start in Nigeria – shows how a Southern brand can grow and go global, and overcome the difficulties of cross-border trade. Website: http://www.olamonline.com/home/home.asp

4) South African company Eat Your Garden: It provides urban dwellers and food businesses with their own food gardens bursting with juicy and tasty foods whilst at the same time reducing carbon footprints, and creating employment and provide training, helping poverty alleviation. Website: http://www.eatyourgarden.co.za/

5) Vertical farming, where hothouses are piled one on top of the other, is an option being promoted as a solution to the food needs of urban dwellers. Website: http://www.verticalfarm.com/

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

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