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Pax Chaotica: A Re-evaluation of Post-WWII Economic and Political Order

Paper delivered to the School of Politics and Government, Birkbeck College, University of London, London, UK, 2000

“The strongest is never strong enough to maintain his mastery at all times unless he transforms his strength into right and obedience into duty…Yielding to force is an act of necessity, not of will; at the very most, it is an act of prudence (Rousseau 1762).” 

By David South

This paper analyses the following proposition: the key post-war institutions were neither an intended, nor an adequate, response to the economic and political challenges of the post-1945 world.

There is ample evidence to show that the plethora of post-war institutions were  intended, and were a deliberate consequence of American policy-makers seeking to control the geo-political fallout of the most catastrophic conflict of human history, World War II.

In many respects institutions such as the United Nations, the International Monetary Fund and the World Bank were a sophisticated and modern approach to a new global order minus the old imperial powers. They were an act of significant imagination and inspiration drawn from a long tradition in asserting the rule of law over the rule of anarchy; the rights of the weak over the tyranny of the strong.

However, these institutions have repeatedly failed to meet the economic and political challenges of the past 55 years. The commitment of the United States to these bodies tailed off after World War II, and America displayed a lack of will to mature them beyond a dependence on American initiative and action.

There is substantial evidence to support the argument that the hegemony of Pax Americana over the last half century undermined the evolution of these institutions, sustaining a chaotic world order that has not delivered prolonged peace or prosperity for a large number of the world’s citizens and that these institutions were ill prepared to confront the collapse of the Soviet Union at the end of the 1980s.

This paper will explore the inadequacies of the global institutions to meet two key aspirations of the post-war world: conflict resolution and avoidance and economic prosperity based on free markets and democratic regimes.

I will argue that, while this period avoided a major conflagration on the scale of the world wars, it was not a period of peace. Regional conflicts, costly both in terms of human life and of finance, plagued every one of the years since World War II. This has been called a period of Pax Americana (Knutsen 1999). I will argue that, rather than a period of global harmony and prosperity anchored by the American hegemon, it has been a period of Pax Chaotica, a “macabre dance of death in which the rulers of the superpowers mobilize their own populations to support harsh and brutal measures directed against victims within what they take to be their respective domains, where they are ‘protecting their legitimate interests,’” as Noam Chomsky describes it (Chomsky 1995: 207). Pax Chaotica is a period in which there is an illusion of stability offered by a hegemon, but in which the hegemon’s military, economic and moral superiority is unable to secure actual peace and prosperity in the world. The hegemon is out of balance, its military and economic superiority in predominance, while its moral superiority and credibility wanes and withers on the vine.

I will analyse how adequate the global institutions were in the context of the concept of hegemony — in particular the hegemony of the United States, which has not relinquished this hegemony to the global institutions it initially set up. I will conclude that the 1990s has been a period of half measures, incremental attempts at bolstering the concept of international security by the community of nations, but that those attempts, as in the case of the Gulf War or in Kosovo, have been still under the direction of the United States.

Making up a master plan: The deliberate development of the institutions

The post-war master plan was comprehensive, and included the International Bank for Reconstruction and Development (World Bank), the International Monetary Fund, the International Trade Organisation (superseded by the General Agreement on Tariffs and Trade as the instrument of freer trade) and the United Nations. A clutch of security organisations was also established after the war, including NATO. As Knutsen aptly puts it:

WITH MEMORIES OF THE INTERWAR RECESSION AND THE NEW DEAL FRESHLY IN MIND, ALREADY, IN THE FIRST YEARS OF THE WAR THEY BEGAN TO DESIGN STABILISING POSTWAR INSTITUTIONS OF INTERNATIONAL FINANCE AND TRADE — THE IBRD, THE IMF AND THE ITO. … THEY SOUGHT TO SET UP THE MOST IMPORTANT POSTWAR INSTITUTIONS BEFORE THE CONDITIONS OF PEACE WERE EVEN RAISED. THEY RUSHED THE CONFERENCES ON THE UN, IBRD, IMF AND ITO INTO SESSION BEFORE GERMANY AND JAPAN SURRENDERED. (KNUTSEN 1999: 203)

The founding of the United Nations and the Bretton Woods institutions (the International Monetary Fund and the International Bank for Reconstruction and Development, later the World Bank) marked a turning point in world history. The United States had been attempting to exert greater control on the global order since the first 14 proposals of President Woodrow Wilson during World War I. As European powers declined at the beginning of the 20thcentury, liberal American policymakers saw an opportunity for the US to assert its hegemony over the world and re-write the rules of economic engagement along American lines. The two world wars only made the US wealthier and wealthier: in World War I, by providing armaments to both sides of the conflict; in World War II by joining with Canada as the armament and resource engine for the allied war effort.

In many ways, the new institutions represented a forward-thinking and idealistic policy compared to a global order marked by imperial rivalries. It captured contemporary ideas on economic theory, projected a universalist Lockean ideal that all men from all nations are equal, and it was injected with the idealism and energy of the world’s largest democracy and the strongest market economy.

Franklin Roosevelt, like Woodrow Wilson, saw America’s engagement in the world  war as a struggle to contain European-style militarism, imperialism and exclusive trade blocs. America’s aim, in both wars, was to preserve the conditions for liberal world order — for a democratic system of politics and an economic system based on free-market principles. Wilson and Roosevelt both sought to liberalize world trade. And they both sought to use America’s leading position in world politics to bring other countries into line with America’s policy. (Knutsen 1999: 193)

These institutions ensured that the US had an influence on every facet of world affairs post World War II. It could merge its political and economic goals and ensure it had a stake in the recovery from the war. This played very well when it came to shoring up domestic support in the United States.

Under a World Bank controlled by Americans, development assistance could be focused precisely where America’s core corporations saw the greatest opportunity. And so long as the recipients of America’s foreign aid used it to buy American exports core corporations could venture into global trade confident of receptive markets. Through such means, the playing field of global commerce was sufficiently tipped in America’s direction so that by the mid-1950s even the National Association of Manufacturers could be persuaded to support tariff reduction. (Reich 1992: 64)

The institutions were philosophically strong, too. Learning from Machiavelli that human relations can be cynical, ruthless and riddled with power agendas, the United Nations offered a peaceful forum to resolve these disputes and a theoretically far more transparent alternative than what had come before. As Weber emphasised, modern states helped to promote capitalist development. With that in mind, the Bretton Woods institutions laid the groundwork for a global financial structure pegged to the US dollar and promoting an American view of free markets.

Hegemony theory and Pax Americana

I argue that these global institutions have shown themselves to be hampered and inadequate when faced with serious political and economic challenges. The root cause is a weakness that is most often cited as their strength: the United States.

Hegemonic stability has been characterised by the emergence of successive dominant liberal powers (Gilpin 1987: 66). What Strange calls “structural power” is essential to the establishment of hegemony over world affairs, since it “confers the power to decide how things shall be done, the power to shape frameworks within which states relate to each other, relate to people, or relate to corporate enterprises (Strange 1998: 25).”

The post-World War II global institutions are an excellent example of the intersection of politics and economy; institutions like the United Nations seek to wield influence in both the political sphere and the economic, most particularly through the Bretton Woods institutions. Hegemonic world order exists, Knutsen suggests, “when the major members of an international system agree on a code of norms, rules and laws which helps govern the behaviour of all. This agreement reflects the rhetorical skills of a particular great power (Knutsen 1999: 49).” This is what happened towards the end of World War II, as the United States wrote the new world order according to its own rules.

As further evidence of US supremacy, the new global rules were constructed so as to force America’s superpower rivals, the USSR and China, to join “its” institutions, not the other way around (though Taiwan stood in for the People’s Republic in the United Nations, against the protests of the USSR, until 1971).

The US became the hegemon because the Soviet Union had very little to offer, either in terms of economic assistance or of political freedoms.

Historians now understand that potential clients encouraged the United States to become a hegemon at the end of World War II: the term “empire by invitation” has come to characterize what happened. The Soviet bid for postwar influence lacked any comparable legitimacy, and so quickly came up against a condition that creates major difficulties for hegemons, which is lack of consent. (Gaddis 1992: 177)

Do as I say, not as I do: The rise and fall of the hegemon’s moral advantage

A large part of the credibility of the US hegemony was bolstered by its moral advantage vis-à-vis other nations. A heady cocktail of democratic freedoms, economic success and military might led many other nations to believe the US and its institutions had got it right where others had failed.

As Strange notes: “President Truman had followed up in his augural address to the Congress with the firm promise of American help to peoples seeking freedom and a better material life. Moral authority based on faith in American intentions powerfully reinforced its other sources of structural power (Strange 1994: 32).”

Supporters of US hegemony, like John G. Ruggie, believe the hegemon must be liberal-minded. Otherwise:

IF THE OTHER STATES BEGIN TO REGARD THE ACTIONS OF THE HEGEMON AS SELF-SERVING AND CONTRARY TO THEIR OWN POLITICAL AND ECONOMIC INTERESTS, THE HEGEMONIC SYSTEM WILL BE GREATLY WEAKENED. IT WILL ALSO DETERIORATE IF THE CITIZENRY OF THE HEGEMONIC POWER BELIEVES THAT OTHER STATES ARE CHEATING, OR IF THE COSTS OF LEADERSHIP BEGIN TO EXCEED THE PERCEIVED BENEFITS. (GILPIN 1987: 73)

The US steadily weakened its credibility and moral advantage in both the areas of conflict resolution and avoidance, and in promoting economic prosperity.

Conflict resolution and avoidance

The US was seen as willing to distort global institutions to fight its ideological — and real — battles with the Soviet Union, and its proxies around the world. The US’s credibility as a promoter of peace and security was severely hampered by the Korean War, the Vietnam War and a dubious record of support for undemocratic regimes and guerrilla movements. These conflicts were intended to “contain” the Soviet Union and the spread of communism and to support regimes that were friendly to free markets. This was played out in a cynical cat-and-mouse game with the Soviet Union, where both sides avoided direct confrontation with each other and used third countries to wage their ideological battles.

Gaddis takes an overly generous view of the Cold War high-wire act, but it is worth being reminded:

BUT THE 1950S AND 1960S DID SEE A REMARKABLE SEQUENCE OF POTENTIALLY DANGEROUS CONFRONTATIONS — DIENBIENPHU, 1954; QUEMOY-MATSA, 1955; HUNGARY-SUEZ, 1956; LEBANON, 1958; BERLIN, 1958-59; THE U2 INCIDENT, 1960; CUBA, 1961; BERLIN, 1961; LAOS, 1961-62; THE CUBAN MISSILE CRISIS, 1962 — EVERYONE OF WHICH WAS RESOLVED WITHOUT MAJOR MILITARY INVOLVEMENT BY EITHER SUPERPOWER. THE SAME COULD NOT BE SAID OF KOREA IN 1950, OR OF VIETNAM AND AFGHANISTAN LATER ON. (GADDIS 1992: 33)

Other than actually being drawn in as a combatant, as in the case of the Korean War, the UN became more of a sideline observer and critic than a robust resolver of conflicts. The UN was critically flawed from the beginning and abrogated its commitment to collective security. It also proved ineffective when confronted with crisis. As Strange points out, one of the biggest weaknesses in the founding of the UN was the Charter. In Article 2, Paragraph 7, all matters of domestic consideration were the business of a state, and in Article 51 states were allowed to form alliances for individual or collective self-defence, “thus reopening the door to a security structure based on alliances and counter-alliance rather than on collective responsibilities for the maintenance of peace between states (Strange 1994: 52).”

The UN was also hampered from developing a collective security maturity by the Security Council. The five permanent members used the veto to control resolutions, with the USSR and the US the most prolific abusers. The US had a total of 69 vetoes from 1945 to 1994; the USSR had 116.

The fall of the Soviet Union at the end of the 1980s marked the beginning of a new period of instability in large parts of the world. The spotlight is once again on the UN to become an arbiter of conflict; once again it is most active when it is pushed by the United States to act when the US feels there is an interest to be served. This has been the case in the major UN missions in the 1990s, from the Gulf War (oil reserves), to the former Yugoslavia (European security). The UN proved to be ineffective where there was no naked US interest putting pressure on the organisation to act, as in the case of Rwanda. Strange remarks that this has had a demoralising effect on those who seek a security structure upholding international law and the universal rights of man.

The fear that either the world organization would merely be the tool of one or other great power (as indeed it was the tool of the United States in the early 1950s) or that it would be ineffectual — as both the League and the UN have proved to be in the face of grave threats to international peace and order — have been enough to kill any realistic hopes of managing a transition from the present security structure to a multilateral or confederal one. (Strange 1994:52)

Economic prosperity

The second half of the 20th century has been hailed as a period of unprecedented global prosperity. Global gross national product rose from US $300 billion to US $2 trillion from 1945 to 1970 (Reich 1992: 64), though much of this was concentrated in a handful of countries. The major challenge of the 20th century has been the task of spreading prosperity around the world; to more evenly distribute the gains than can be reaped from advances in science and technology. The collapse of the colonial powers left large numbers of underdeveloped nations grappling with independence.

With the collapse of the Bretton Woods arrangements in the early 1970s, and the emergence of deregulation in financial flows in the world, the US abrogated much of its responsibility for micro-managing global development. The market was now to do all the work, and being the modern age, rapid capital flows were to make the market work efficiently.

Like the experience with conflict resolution and avoidance, the economic project has been mixed. A dependence on the market has not avoided a dependence on the economic fortunes of the global hegemon. As the US ship rises and sinks, so does the rest of the world. The Global economic system, Panic notes:

WAS RUN BY THE DOMINANT ECONOMIC POWER AFTER THE SECOND WORLD WAR: THE UNITED STATES. IN THAT SENSE, ITS FORTUNES, LIKE THOSE OF THE CLASSICAL GOLD STANDARD, WERE DIRECTLY LINKED TO THOSE OF THE RELATIVE ECONOMIC PERFORMANCE AND POLICIES OF THE COUNTRY RESPONSIBLE FOR THE LARGEST SHARE OF WORLD INDUSTRIAL PRODUCTION, TRADE, AND FINANCE AT THE TIME — PRECISELY THE OUTCOME THAT THOSE ATTENDING THE BRETTON WOODS CONFERENCE HAD BEEN ANXIOUS TO AVOID. (PANIC 1995: 46)

By 1994, total world exports were more than 14 times greater than in 1950; output was five times greater than in 1950 (Dicken 1999: 24). But the economic achievements ring hollow if the well-being of the whole planet is taken into consideration. By 1995, 60 percent of the manufacturing in the world occurred in three countries — the United States, Japan and Germany (UNIDO 1996). While manufacturing in developing countries had quadrupled to 20 percent of global output, it was concentrated in a few developing countries with strong ties to the US.

There is a direct connection between US interests and who does well economically. Western Europe was reconstructed rapidly with US money, and Germany became an industrial powerhouse again. The defeated Japan was restored as Asia’s wealthiest nation with American investment and advice. In 1945, 71 percent of world manufacturing was concentrated in four countries. Developed countries were host to 2/3 of foreign direct investment (Dicken 1999: 21). Most FDI is now concentrated in industrial, developed countries.

There is a direct link between the failures of the UN and the global economy. The weakness of the international security arrangements also have an impact on economies. Vast sums of money are re-directed towards weapons purchases and away from human needs. For many smaller economies, this is a punishing drain on national resources and the funds are often borrowed from elsewhere. As Chomsky noted in the 1980s, “The fact is that both of the superpowers — and many lesser powers as well — are ruining their economies and threatening world peace, indeed human survival, by a mindless commitment to military production for themselves and for export (Chomsky 1995: 209).”

There are concrete examples of developing countries that have achieved significant development gains, reaping the gains of peace and freer world trade. A group of 18 developing countries enjoyed growth rates in the 1990s of over five percent (DFID 2000: 66). This is attributed to more open trade policies compared to other developing countries (though many other countries have been equally open to trade, like Mongolia, but have not reaped the same benefits). China has enjoyed unprecedented growth, but it also has increasing rates of unemployment and violent unrest in its western regions. Sub-Saharan Africa’s 600 million population generates exports no greater than Malaysia’s 20 million (DFID 2000: 67).

In regard to the World Trade Organization (WTO), the majority of its 140 members are developing countries. Not a perfect organisation, its agenda is dominated by a few wealthy nations, but the alternative of a world of bilateral trade deals hangs as a spectre if it fails. As the DFID report, Eliminating World Poverty: Making Globalisation Work for the Poor, points out:

DESPITE PROGRESS OVER THE LAST 50 YEARS, DEVELOPED COUNTRIES MAINTAIN SIGNIFICANT TARIFF AND NON-TARIFF BARRIERS AGAINST THE EXPORTS OF DEVELOPING COUNTRIES…TOTAL DEVELOPING COUNTRY GAINS FROM A 50 PER CENT CUT IN TARIFFS, BY BOTH DEVELOPED AND DEVELOPING COUNTRIES, WOULD BE IN THE ORDER OF $150 BILLION — AROUND THREE TIMES AID FLOWS. (DFID 2000: 69)

Conclusion

The postwar world order and the use of global institutions to build it, was a deliberate policy of the United States. It, however, proved only a half measure and the over-dependence on the United States ensured that these institutions were hampered when confronted with economic and political crises. As I have argued, a state of Pax Chaotica was the result.

For Pax Chaotica to end, there needs to be a renewed effort by the United States to shore up global institutions and to develop a concrete plan to ensure that the global institutions become the global hegemon in every sense of the word. There have been incremental moves in this direction, including attempts to pay dues owed by the US to the UN.

There needs to be a complete shift from the realist American interests of Pax Chaotica to the interests of the community of nations. In fact, there is an opportunity for a convergence of core American values — respect for individual liberty, freedom of expression, democracy — with the goals of the global institutions.

As for international institutions, they must show themselves to not only be just, but also to be seen to be just. Institutions can no longer work in the shadows as they have in the past. Well-educated, wealthy protesters in Western countries will no doubt continue to demand transparency.

In The Interests Of The Exploited?: The Role Of Development Pressure Groups In The UK

A Steppe Back?: Economic Liberalisation And Poverty Reduction In Mongolia

The Sweet Smell Of Failure: The World Bank And The Persistence Of Poverty

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

© David South Consulting 2017

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Peaceniks Questioning Air-Raid Strategy In Bosnia

Muslims say peaceful alternatives will aid cleansing

By David South

Now Magazine (Toronto, Canada), May 13-19, 1993

While Bosnian Muslims continue to demand either airstrikes against the Serbians or weapons to defend themselves, there is little consensus among Canadian peace groups and political parties that these measures are the key to a long-lasting peace.

The differences are as graphic as those between Washington and Ottawa. While president Bill Clinton is asking European nations to support air strikes, prime minister Brian Mulroney has publicly opposed such bombing raids as an answer to the brutal ethnic cleansing of Muslims being carried out by the Serbs.

“We are still developing our position in terms of support for military intervention,” says Roxanne Dube, assistant to Liberal foreign policy critic Lloyd Axworthy.

Dube says, “We need something more comprehensive than just airstrikes, which alone could jeopardize our troops.”

NDP foreign affairs critic Svend Robinson is more willing to consider military action under UN auspices. But first he wants “a vice-like embargo on Serbia and the establishment of safe havens and humanitarian corridors.

“If the slaughter continues, I personally would not exclude the posibility of further military action,” he says.

“The response of the United Nations, and NATO in particular, has been appallingly inadequate. It has allowed the Bosnian Serbs to consolidate their territorial position. And their latest sabotage of the Vance/Owen proposal has left the international community with no alternative but to isolate Serbia.

“The Bosnian Serbs are just continuing their widespread rape of Muslim women, ethnic cleansing, torture – the world has got to say, stop.”

Among peace groups there is a feeling that military intervention is not a longterm solution.

“We don’t have a position,” says Tamara Storic of Greenpeace Canada, a response echoed by the Toronto Disarmament Network. “We’re in much the same situation as the UN. Nobody knows what to do.”

No position

The Canadian Peace Alliance’s Gideon Forman understands the frustration that fuels calls for bombing, but doesn’t believe it is a longterm solution.

“Those who say go in there and bomb are not all crazy,” he says. “They hear about ethnic cleansing, they hear about rape camps – and they see bombing as a way to stop that. But our position is that a little more restraint has to be shown.”

He advocates a combination of sanctions and diplomacy for a longterm peaceful solution.

Maggie Helwig of ACT for Disarmament says she has little to offer in the short term, pointing out, “Maybe at this point there is little anyone can do.” She is also sympathetic to those who want to arm Bosnian Muslims, but feels it wouldn’t help the situation.

She says, “I believe they are the legitimate government. But providing weapons is not going to contribute to a lasting peace.”

Helwig favours targeted sanctions that would allow opposition organizations in Serbia to receive supplies while the government wouldn’t, combined with international support for peace and opposition groups.

“The only way we can end the Serbian aggression to to support the opposition in Serbia, the peace movement and the women’s movement. The reason they aren’t having much influence is that they aren’t getting any international support.”

Fatima Basic, spokesperson for the Canadian Bosnian refugee groups, says that while she supports Helwig’s plans for helping opposition and women’s groups, she is angry that it is being put out as an alternative to military intervention and air strikes. She says the West “should have done something before we lost half a million people.”

Imam Tajib Pasanbegovic, religious leader of Canadian Bosnian Muslims, says of Helwig’s thoughts, “It’s a ridiculous idea by itself. It will take several years, and by then there will be no Bosnian Muslims left. There is not time. Imagine if we gave this chance to Hitler in the second world war – another 5 million Jews would have disappeared.”

Both he and Basic are bitter that while Clinton seeks European support for bombing, “Prime minister Brian Mulroney is going behind his back telling the world not to interfere.”

Life embargo

Pasanbegovic says if the West will not intervene with at least half the bombing if did in the Gulf War, “They should life the arms embargo and return things to a starting point. If the West is not going to defend us, at least let us defend ourselves.”

However, Carolyn Langdon of Voice of Women, a peace group working with peace and women’s organizations in the former Yugoslav republics, says, “Our position is against intervention, including limited military strikes. We are supporting the civil society groups, the opposition against the nationalism and war policies of their governments.”

Her group sets up rape crisis centres and sponsors women to come to Canada to raise awareness.

David Isenverg, a senior research analyst at the left-leaning Washington-based Center for Defense Information, says sources tell him that the Clinton administration believes air strikes are only a means of levelling the playing field for the Muslims.

He says a Pentagon report released this Wednesday will discredit the claims of air strikes’ accuracy, citing failures during the Gulf War. Clinton will decide on air strikes after Saturday’s referendum in Bosnia, when Serbs will vote on whether to accept a Western peace plan.

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Development Challenges, South-South Solutions Newsletter | 2011-2014

2011 Development Challenges

NEW: A new design template has been launched for the e-newsletter (see below). The Southern Innovator website archive of Development Challenges stories is also now online: southerninnovator.org

New magazine Southern Innovator has launched: Read and download the magazine here: Southern Innovator Issue 1

December

Mapping to Protect Kenya’s Environment: the eMazingira Solution Development Challenges: Powerful new grassroots crowd-mapping tools have sprung up in the past few years across the global South, from Brazil’s Wikicrimes (www.wikicrimes.org) real-time crime mapping technology to the now famous Ushahidi (http://ushahidi.com) – a non-profit company making the free and open source Ushahidi software for information collection, visualization and interactive mapping – from its base in Kenya. They share some common features. All draw on the widespread use of mobile phones in the global South combined with growing access to the Internet, either through 3G mobile phone services, WiFi wireless connections, Internet centres or increasingly available broadband Internet services.

Building an Interactive Radio Network for Farmers in Nigeria Development Challenges: As solar power technology has improved, new pioneers have emerged to exploit this innovation. Several decades ago, solar power was seen as too expensive for wide-scale roll out in poor countries and communities. But today, an army of solar technology pioneers has fanned out across the world to show the new wave of innovations and how they make solar power affordable.

African Manufacturing Pioneers Proving it is Possible to Thrive Development Challenges: Africa’s paradox is that it is home to the greatest share of the world’s unexploited resources, yet has some of the world’s lowest per capita incomes. History has shown that exploiting the continent’s resources alone for export markets does little to improve incomes and living conditions in Africa, which in turn does nothing to improve human development. The key to resolving this paradox is made-in-Africa jobs, in particular high-value jobs that make products.

Indian City Slum Areas Become Newly Desirable Places to Live Development Challenges: With India’s urban economy experiencing rapid growth, its slums – once seen as the most undesirable places to live in the country, if not on Earth – are attracting the attention of affluent residents and developers in India’s rapidly expanding cities. The prosperity in India’s cities has made these areas’ proximity to business and entertainment zones highly desirable. In turn, this has led to slum dwellers either upgrading their homes and in the process boosting their value, or being offered the opportunity to sell their rudimentary dwellings to real estate agents and property developers.

November

New African Film Proving Power of Creative Economy Development Challenges: A new movie is generating excitement around life in the war-torn, chaotic and impoverished Democratic Republic of the Congo (http://en.wikipedia.org/wiki/Democratic_Republic_of_the_Congo) – the central African nation – and proving how versatile and resilient a creative economy can be in a crisis.

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

Virtual Supermarket Shopping Takes off in ChinaDevelopment Challenges: An ingenious use of technological innovation and savvy trend-spotting is radically transforming the way people do their grocery shopping in China. Busy urban dwellers with time-poor lifestyles can now do their grocery shopping as they pass through Shanghai’s subway system and have their weekly shopping delivered to their home.

Bolivia Grabs World Media Attention with Salt HotelDevelopment Challenges: Tourism is a great way to attract foreign currency to a country and build local economies, especially in remote or isolated places. But the catch is finding a way to get people to go the distance and come and visit and spend their money.

October

Indian Mobile Phone Application Innovators Empower Citizens Development Challenges: With mobile phones becoming ubiquitous across the global South, the opportunity to make money – and possible fortunes – by providing ‘apps’ for these devices is now a reality.

Mapping Beirut Brings City to Light Development Challenges: As cities in the global South grow ever larger, their often-chaotic evolution can create sprawling urban mazes that would confuse even the brightest brains.

Putting Quality and Design at the Centre of Chinese Fashion Development Challenges: Awareness of the sourcing of materials for fashion has been on the rise in the past decade. Concerns about how the global fashion industry functions and its impact on the environment have given rise to savvy retailers who take care over the sourcing of their materials and the working conditions of their employees.

Cheap Indian Tablet Seeks to Bridge Digital Divide Development Challenges:India has had many false starts in innovating in information technology. While the country and its talented army of software engineers have a global reputation for innovation, the fits and starts that have accompanied attempts to create new hardware and devices have drawn a range of emotions, from amusement to frustration.

September

Filipino Architect wants to Transform Slum with New Plan Development Challenges: A clash is occurring across the global South over the future of urban planning and the ever-growing slums of the world’s megacities. This will be a decisive clash of visions: should cities flatten slums and relocate their residents, or work with slum dwellers, acknowledge the role they play in city economies and improve their lives with better dwellings?

Model City to Test the New Urbanism Concept in India Development Challenges: India’s phenomenal economic growth rate – forecast to be 7.9 percent this year by the Asian Development Bank, after averaging 7.7 percent per year over the past decade – has been the force behind an expanding middle class population, now estimated at 50 million people (McKinsey). Forecasts see it swelling from 5 percent of the population to 40 percent by 2025.

Pulque: Aztec Drink Ferments New Economy Development Challenges:Reviving traditional foods and drinks can be an income-boosting source of new economic activity. Many cultures can benefit from looking again at their rich traditions to find new ways to increase enterprise. This can be difficult at first. Big global brands have many initial advantages: they are backed by wealthy and experienced international companies and can deploy aggressive marketing and distribution power to get products into the hands of consumers. The power of Coca Cola to reach all corners of the earth is legendary.

Ghana: Oil-rich City Sparks Entrepreneurs and Debate Development Challenges: Commodity booms can seem like the answer to a poor nation’s prayers, a way to fulfil all their development dreams and goals. The reality, however, is far more complex. More often than not, the discovery of resources sparks a mad scramble for profits and patronage, as politicians and politically connected elites carve out their slice of the new resource boom before anyone else.

August

Anti-bribery Website in India Inspires Others Development Challenges: An Indian website tackling corruption has been so successful it has inspired a wave of followers in China. The I Paid a Bribe website – motto: “Uncover the Market Price of Corruption” – was set up by the Janaagraha Centre for Citizenship and Democracy (www.janaagraha.org), a non-profit organisation based in Bangalore, India.

Turning African Youth on to Technology Development Challenges: An African NGO believes the Internet is the single biggest key to rapid development in Africa – and it is working to connect youth, women and rural populations to the web, and in turn, switch them on to the vast resources stored across the world’s Internet sites.

Pakistan Simplifies Job-matching Services Development Challenges: An innovative job-matching service from Pakistan is trying to bring together people who normally live separate lives. It is eliminating the middlemen who gouge both employers and employees for job-seeking fees and opening up a new world of opportunities for the poor.

Data Surge across Global South Promises to Re-shape the Internet Development Challenges: The deluge of data gathered by the digital revolution underway in the global South continues to offer a significant economic opportunity. How this data is harvested will forge the successful Internet business models of the future.

July

Bringing the Invention and Innovation Mindset to Young Kenyans Development Challenges: A highly innovative new way to teach the basics of electronics, computing and technological innovation is being pioneered in the slums of Nairobi, Kenya. Driven by the desire to counter perceptions of apathy among young people, NGO Kuweni Serious is running a training course for girls aged over 8 years in some of the poorest parts of the city to turn on a new generation to the power of technology to make change.

Arab World Domain Name Opportunity Huge Economic Help Development Challenges: With the so-called Arab Spring still unfolding across much of the Arabic-speaking world, it is easy to miss a rising new economic opportunity: The introduction of an Arabic domain name system for the Internet.

African Youth Want to do Business in Fast-growing Economy Development Challenges: Africa’s growing economy is meeting head-on an optimistic young population keen to start businesses. At least that is what a new poll of African youth says, finding that one in five Africans between the ages of 15 and 24 without a current business wants to start one in the next 12 months.

Kenyan Safari Begins Minutes from Airport Development Challenges: Many people find the prospect of staying in airport hotels dreary at best. They tend to be located in industrial parts of cities or far from city centres. They can be surrounded by roads and highways and are built to move lots of people, not to look nice. The surrounding areas can be very common to all nations – warehouses, office parks, nondescript restaurants and hotels – and give few clues to where you are apart from the weather and the languages on the sign boards.

June

Brazilian Restaurant Serves Amazonian Treats Development Challenges: The vast Amazon rainforest has inspired a cuisine pioneer in Brazil. Combining the sensual pleasures of fine dining and the joy of tasting new flavours with a pursuit of sustainable and profitable local farming, a chef is inventing a new Brazilian cuisine and showing the way to create sustainable incomes.

Civet Cat Coffee Brews Filipino Opportunity Development Challenges: In the Philippines, one animal’s call of nature has become a business opportunity.The civet cat, a member of the mongoose family, ingests the fruit of coffee plants, and expels the beans. This has created an unexpected by-product – a prized beverage for the world’s savvy coffee drinkers seeking the next taste sensation. The partially digested coffee beans are gathered from the faeces of the cat and used to make a much-coveted, smooth-flavoured cup of coffee.

Indonesia Best for Entrepreneurs Development Challenges: A global survey has unearthed hotspots across the global South for start-up businesses and private enterprise. It shows there are now many places in the South where people are actively encouraged to start businesses and engage in innovation and enterprise. The top place in the world for entrepreneurship, according to the survey for the British Broadcasting Corporation (BBC), is Indonesia.

The e-Reader Battle Reaches India Development Challenges: The rise and rise of e-books and electronic publishing has prompted the development of e-readers: handy, portable devices that try to mimic the reading experience of paper books while offering the storage and navigation capability of computers.

May

African Botanicals to be used to Boost Fight against Parasites Development Challenges: More than 1 billion people in the developing world currently suffer from tropical diseases, which leave a trail of disfigurement, disability and even death. Yet only 16 out of 1,393 – 0.01 percent – of new medicines marketed between 1975 and 1999 targeted tropical diseases (International Journal of Public Health).

Floating Bank Floats New Dreams for Brazilian Middle Class Development Challenges: Brazil’s booming economy has seen a dramatic increase in the size of its middle class. More and more people have been lifted out of poverty as a growing, stable economy overcomes years of political and economic instability. In 2010, Brazil’s economy grew by a record 7.5 percent, surpassing a previous peak in 1986 (Brazilian Institute of Geography and Statistics) (IBGE) (www.ibge.gov.br/english). The country’s gross domestic product (GDP) reached 3.67 trillion reais (US $2.21 trillion) in 2010, making it Latin America’s largest economy.

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

Indian Toilet Pioneer Champions Good Ideas Development Challenges:Access to adequate sanitation and toilet facilities is critical to making development gains. Yet this simple fact of life often gets overlooked, especially in fast-growing cities where populations are on the rise or in transit. Out of an estimated 2.6 billion people in the world without toilets, two-thirds are in southern and eastern Asia (World Toilet Organization).

April

Solar Sisters Doing it for Themselves: Tackling African Light Famine Development Challenges: A social enterprise is seeking to capture the power of the sun to bring light and economic opportunity to women in Africa. Using a direct-marketing distribution system, it sells solar lamps and lanterns to some of Africa’s remotest communities. Solar Sister (www.solarsister.org), launched in Uganda in 2010, is hoping to do for power generation what mobile phones have done for communication in Africa: make a technological leap to a model of grassroots power generation, rather than waiting for large-scale power schemes to eventually reach the poor and rural.

South Africa Innovates Healthcare with Prepay Phone Vouchers Development Challenges: Pioneers in Africa are experimenting with new ways to fund the delivery of healthcare that is affordable and sustainable and not dependent on foreign aid and donations. A South African company is prototyping the selling of pre-payment healthcare services through mobile phones with a range of vouchers that can be bought and downloaded at the tap of a keypad.

Indian ID Project is Foundation for Future Economic Progress Development Challenges: India is in the midst of the biggest national identification project in the country’s history. The aim is for every Indian to receive a voluntaryelectronic identification card containing his or her details and a unique number. Called an Aadhaar, it is a 12-digit unique number registered with the Unique Identification Authority of India (http://uidai.gov.in) (UIDAI). The project joins a growing trend across the global South to map populations in order to better achieve development goals.

Ghana’s Funeral Economy Innovates and Exports Development Challenges: The West African nation of Ghana’s funeral economy is attracting innovation and grabbing attention outside the country. The nation’s elaborate – but expensive – funeral rituals provide craftsmen with a good income. And new products are being introduced to handle the financial consequences of this unavoidable fact of life.

March

Bolivian Film School’s Film Scene Paying Off Development Challenges: A film school in Bolivia shows how a creative hub can become the start of something much bigger. The school is inspiring a new generation of young people to get into filmmaking. And one of its lecturers is already experiencing global success acting in an award-winning new Spanish film.

Happy Nigeria: West African Nation Has Good Attitude Development Challenges: In the last 10 years, an increasing amount of attention has been paid to the concept of national happiness. The notion was first developed in the tiny Asian Kingdom of Bhutan (http://en.wikipedia.org/wiki/Bhutan), whose advocacy of ‘gross national happiness’ (http://www.grossnationalhappiness.com/) as a measure of national achievement just as important as Gross National Product (GNP), has been met with equal parts ridicule, respect and research.

Cambodian Bloggers Champion New, Open Ways Development Challenges: The Southeast Asian nation of Cambodia has had a very difficult history over the past few decades. In the 1950s and 1960s, it was seen as a glamorous and vibrant place. Dynamic, ambitious and newly independent from French colonial rule, Cambodia embarked on an extensive programme of building that is now called “New Khmer Architecture.” It is the most visible legacy of this modernizing time.

China Consumer Market: Asian Perspective Helps Development Challenges:The rise of China since 1989 has been the most remarkable development story of our times. The number of people lifted out of poverty is historically unprecedented: 65 percent of Chinese people lived below the poverty line in 1981; in 2007 it was 4 percent (World Bank).

February

Disaster Recovery, Ten Years After: The Gujarat, India Experience Development Challenges: In the past decade, there have been many devastating natural disasters, from Iran’s 2003 Bam earthquake and the Asian tsunami of 2004 to Hurricane Katrina in the United States in 2005 and the earthquakes in Chile and Haiti in 2010. All of these events received extensive media attention and drew a large aid response. Those who track natural disasters have noticed a serious increase in frequency over the past decade (http://www.marketoracle.co.uk/Article26290.html).

Chilean Eco-Buildings Pioneering Construction Methods Development Challenges: Across the global South, the search is on for new ways to build without extracting a high price from local environments.More and more people are recognizing the advantages of energy-saving methods like prefabrication. Prefab building techniques involve assembling a structure from pre-assembled parts or modules made in a factory, or transporting a completed, factory-made structure to a site (http://en.wikipedia.org/wiki/Prefabricated_building).

Model Cities Across the South Challenge Old Ways Development Challenges: Pioneering thinking about how resources are used and how people live their lives is taking place in the dynamic economies of the global South. Facing a vast population surge to urban areas, these include attempts to build “green” cities and low-waste, smart and digital communities.

Indian Newspapers Thrive with Economy Development Challenges: The onslaught of digital media in the developed countries of the world regularly brings pronouncements of the death of the traditional newspaper. But this assumption of digital triumph misses out on the reality in countries across the global South.

Extra story: 2011 Trends for the South Development Challenges: The world has been through a dramatic and fascinating period since the global economic crisis erupted in 2008. While the wealthy, developed nations of the North have been pitched into one crisis after another, the countries of the global South (many of whom are well accustomed to crises) have been part of a powerful new economic phenomenon: the rapid growth of South-South trade, investment and exchange. Its effects include stronger ties between Asia and South America and between China and Africa.

Download the February 2011 issue from Scribd: http://www.scribd.com/doc/49693714/Development-Challenges-South-South-Solutions-February-2011-Issue

January

Africa’s Consumer Market in Spotlight for 2011 Development Challenges:While other parts of the world will spend 2011 worrying about their debt levels and how to spur economic growth, many factors are pointing to Africa potentially following a different story. A frenzy of activity has been building around Africa’s market opportunities and its growing middle class consumer population.

China’s Booming Wine Market Can Boost South Development Challenges: A great South-South opportunity has emerged with the recent boom in wine drinking in China and the pursuit of quality tastes. Matching high-quality wine producers from the global South – including South Africa, Chile, Morocco, and Lebanon – with China’s thirsty wine drinkers could deliver a major income boost.

Food Inflation: Ways to Fight It Development Challenges: 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.

Turning Animal Waste Into Paper Development Challenges: Animal waste is a messy fact of daily life in rural communities across the global South. This byproduct of life has many uses – but an ingredient for making writing paper is probably not the first that springs to mind.

2012 Development Challenges

By David South, Development Challenges, South-South Solutions

New UNOSSC banner Dev Cha 2013

SOUTH-SOUTH CASE STUDY 

ISSN 2227-3905

The  third issue of Southern Innovator  magazine  has launched. Order advance copies now for distribution. Email: southerninnovator@yahoo.co.uk.

 The second issue of Southern Innovator magazine has launched: Read and download the magazine here:Southern Innovator Issue 2.

December

New Cities Offering Solutions for Growing Urban Populations Development Challenges: Across the global South, new cities are being dreamed up by architects, city planners and governments, or are already under construction. Two new urban areas being built offer lessons for others in the global South. They both deploy intelligent solutions to the combined demands of urbanization, growing populations and rising expectations.

Creating Green Fashion in China Development Challenges:China is the world’s largest manufacturer (Euromonitor) and the largest clothing maker, producing a quarter of all textiles and clothing. It is a global fashion production hub, and many major global clothing brands have their products made there – whether they admit it or not.

Biogas Digester-in-a-Bag Brings Portability Development Challenges: Securing energy sources that are cheap (or free) and renewable can significantly reduce the cost of living for the world’s poor. The cost of fuel for essentials such as cooking and lighting can quickly eat up household incomes.

Powerful Solar Light Spurring Income-Making Opportunities Development Challenges:  A clever innovator from India has built a highly durable solar lantern that also doubles as a mobile phone charger.

Global South Urbanization Does Not Have to Harm Biodiversity Development Challenges: How to balance fragile ecosystems with rapid urbanization will be the challenge for planners and governments across the global South in the coming years. The urbanization trend is clear: the world’s total urban area is expected to triple between 2000 and 2030, with urban populations set to double to around 4.9 billion in the same period (UNEP). This urban expansion will draw heavily on water and other natural resources and will consume prime agricultural land.

November

All-in-One Solar Kiosk Business Solution for Africa Development Challenges: Kiosks are ubiquitous throughout commercial areas in the global South. These highly efficient little business outlets enable small-scale entrepreneurs to sell necessary products without the expense of renting and running a shop.

Ugandan Fish Sausages Transform Female Fortunes Development Challenges: What to do when your food production enterprise is just not making much money? It is a common problem in the global South, where farmers and fishers often struggle to survive and can face the threat of bankruptcy and destitution when trying to provide essential food for their communities.

Woman Restaurant Entrepreneur Embraces Brand-Driven Growth Development Challenges:  The journey of Zhang Lan is the tale of an entrepreneur who exemplifies the story of globalization. She has gone from working many part-time jobs while studying overseas, to becoming one of China’s most successful food entrepreneurs.

Better by Design in ChinaDevelopment Challenges: In recent decades, China has been known more for its inexpensive manufactured goods than as a producer of high quality products. But this is changing as the country seeks to move up the economic chain.

Energy-Efficient Wooden Houses are also Earthquake Safe Development Challenges:In Argentina, an innovative housing project has married good design with energy efficiency, earthquake resilience and the use of local materials and labour. As energy resources continue to be stretched around the global South, innovative building designs will be critical to the creation of sustainable housing for the future.

October

Chinese Building Solution for Rapidly Urbanizing Global South Development Challenges:The global South is currently experiencing the biggest surge in urban population ever seen in human history. This transformation from urban to rural is happening in many different ways across the global South. Some countries have highly detailed plans and are building new cities from scratch, while other countries feel overwhelmed by their booming urban populations.

Diaspora Bonds to Help Build up Infrastructure Development Challenges: Many people are aware of the significant role played in global development by remittance payments from migrant workers working in the wealthy North to the global South. But they may not be aware of the significant sums migrant workers have saved in bank accounts in these wealthy countries. Across the global South, efforts are underway to lure these sums back to home countries to boost development efforts.

African Supercomputers to Power Next Phase of Development Development Challenges:Information technology developments in Africa have long lagged behind those in other parts of the world. But the transformation being brought about by the widespread adoption and use of mobile phones – each one a mini-computer – and the expansion of undersea fibre optic cable connections to Africa are creating the conditions for an exciting new phase of computing growth on the continent.

Africa to Get Own Internet Domain Development Challenges:  Africa is in the midst of an Internet revolution that is set only to accelerate. The continent is one of the last places to experience the information technology revolution that has swept the world in the past two decades.

Geothermal Energy to Boost Global South’s Development Development Challenges: The geothermal heat produced by the earth’s molten core is a resource receiving more and more attention across the global South.

September

Free Magazine Boosts Income for Rickshaw Drivers Development Challenges:In the bustling, congested cities of Asia, rickshaws and auto-rickshaws are common forms of transport. Smaller, cheaper and more nimble than cars, they play a key role in the transit infrastructure, helping to get people to work and to get around.

Design Collaborations Revitalize Traditional Craft Techniques Development Challenges:Keeping alive traditional craft techniques and methods in the age of globalization is a tricky balance to get right. As countries seek to increase living standards and income, traditional craft-making methods are often jettisoned in favour of attracting manufacturing and other high-value activities – meaning rich and potentially lucrative skills can be lost.

Profile of African Innovators Continues to Rise Development Challenges:A mix of developments is proving that African innovators no longer need to see themselves as lone operators working in isolation.

The Water-Free South African Bathing Solution Development Challenges: As the world’s population grows from its current 7 billion to a projected 9 billion in 2050 (UN), competition for access to the Earth’s resources will become fiercer. The most essential resource for life on the planet – and an increasingly precious resource – is water. Water is necessary for the very survival of humans, animals and plants, and is also used in vast quantities by industries and farms.

August

Mobile Phone Shopping to Create Efficient Markets across Borders Development Challenges: An anticipated game-changing revolution in African trading set for 2013 is getting one innovative business very excited.

Egyptian Youth Turns Plastic Waste into Fuel Development Challenges: The challenge of finding alternate fuel sources is capturing the imagination of innovators across the global South. As the world’s population increases – it recently reached 7 billion (UN) – and the number of people seeking a better life grows in turn, the energy demands on the planet are pushing up competition for existing conventional fuel sources.

Shopping and Flying in Africa’s Boom Towns Development Challenges: As economies across Africa grow, the continent still has a long way to go to create infrastructure to match people’s rising expectations of what a modern, prosperous life looks like.

Teenager Uses Technology to Protect Livestock from Lions Development Challenges: In Kenya, a teenage Maasai (http://en.wikipedia.org/wiki/Maasai_people) inventor has developed a way to chase lions away from livestock that doesn’t harm the lions. It is a common practice to kill lions when they threaten or kill livestock, and this has led to a precipitous drop in the local lion population at Nairobi National Park (http://www.kws.org/parks/parks_reserves/NANP.html/), near the country’s capital, Nairobi. Lions are a significant tourist attraction for Kenya and the population decline is a threat to the future of the tourist industry.

July

African Innovation Eco-system Taking ShapeDevelopment Challenges: How to increase the rate of innovation in Africa? And specifically, innovation that actually improves people’s lives and reduces poverty. It is a hard  question to answer, but some are putting in place the building blocks of a 21st century innovation culture by riding the information technology revolution as it rolls across Africa.

African Fuel Pioneer Uses Crisis to InnovateDevelopment Challenges: Crisis, as the old saying goes, is also a window of opportunity. And there is one African entrepreneur who knows this better than most. Daniel Mugenga has been on a journey of innovation that has led him to become a pioneer in the emerging new field of algae technologies. The story of how he got there is a testament to the power of using business to both solve problems and make profits.

Indian Entrepreneur Brings Dignity to Poor WomenDevelopment Challenges: Driven by the revelation that his wife was torn between spending money on milk for the children and buying commercially manufactured sanitary napkins, Indian innovator and inventor Arunachalam Muruganantham embarked on a long and intensive journey to find a solution. His achievement – a simple machine – is bringing dignity to poor women and providing them with a much-needed income source.

Turning Human Waste to Fertilizer: An African Solution Development Challenges: While South Africa has been free of the racist Apartheid regime since the mid-1990s, the expected boost to living standards for the majority black population has not been as widespread and as quick as many had expected.

East Africa to get its First Dedicated Technology CityDevelopment Challenges: An ambitious scheme is underway to create a vast technology city on the outskirts of Nairobi, Kenya.

June

Indonesian Wooden Radio Succeeds with Good DesignDevelopment Challenges: One Indonesian industrial designer has pioneered an innovative business that has rejuvenated the economy of a farming village and improved the sustainability of local forests – and he’s doing it all with wood.

Gobi Desert Wine to Tackle Poverty and Boost Incomes Development Challenges: In the arid Gobi desert spanning the two Asian nations of China and Mongolia is a bold attempt to make wine and reduce poverty. The environment is harsh, with temperatures swinging from sub-zero winter cold to sweltering summer heat. The desert is also home to high winds and notorious dust storms that plague China’s capital Beijing every year.

Mauritanian Music Shop Shares Songs and Friendship Development Challenges: Around the world, traditional music stores selling vinyl records, tapes and CDs (compact discs) are closing down. Digital downloads distributed over the Internet and mobile phones make it unnecessary to build a music collection in these hard formats.

Global South Eco-cities Show How the Future Can Be Development Challenges: The world is currently undergoing a high-stress transition on a scale not seen since the great industrial revolution that swept Europe in the 19th and 20th centuries. Today’s urban and industrial transition involves many more people and is taking place on a greater proportion of the planet. With rapid urbanization comes a demand for middle class lifestyles, with their high-energy usage and high consumption of raw materials.

New Journal Celebrates Vibrancy of Modern Africa Development Challenges: Africa has seen huge changes to its communications and media in the past five years. The rise and rise of mobile phones, the expansion of the Internet and the explosion in African blogging and social media, on top of flourishing print and broadcast media, all bring an increasing range of options for telling African stories and increasing dialogue.

May

An Innovator’s ‘Big Chicken Agenda’ for Africa Development Challenges: Increasing the quantity and quality of food in Africa will be critical to improving the continent’s human development. And a key element in giving Africa a more secure food supply will be boosting science and knowledge on the continent and making sure it is focused on Africa’s needs and situation.

New Swimwear for Plus-size Women in Brazil Development Challenges: Brazil is well known for its stylish swimwear, with styles usually targeted at young women and those with more conventional, media-friendly body shapes. But now a company is making visiting the beach more comfortable and empowering for plus-size women.

Havana’s Restaurant Boom Augers in New Age of Entrepreneurs Development Challenges: Cuba, the Caribbean island nation known for its 1959 revolution and its tourism industry, is undergoing a shift in its economic strategy. The country has had heavy state control of its industries and business activities since the country adopted the official policy of state socialism and joined the Communist economic sphere headed by the Soviet Union.

Global South’s Rising Megacities Challenge Idea of Urban Living Development Challenges:The world crossed the threshold from being a majority rural world to a majority urban one at the end of the first decade of the 21st century. The reason for this is the fast-growing urban areas of the global South. And this is having a profound affect on how the world’s people live.

Frugal Innovation Trend Meets Global South’s Innovation Culture Development Challenges: 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.

April

Battery Business Brings Tanzanians Cheap Electricity Development Challenges: Access to electricity is critical for making substantial development gains. With steady supplies of electricity, it is possible to read and study at night, to run modern appliances, to better use the latest information technologies and to work using time- and labour-saving devices. A home with electricity literally
switches the light on modern life and gives a family huge advantages compared to those without electricity.

Global South’s Rising Economies Gain Investor Spotlight Development Challenges: A new book is arguing that the world’s attention should switch away from BRICS countries – Brazil, Russia, India, China and South Africa – and take another look at nations and regions elsewhere across the global South. It argues many are lodestones of future growth and prosperity in the making and will see dramatic changes over the next decade.

Hip-driven Pump Brings Water to Parched Fields Development Challenges:Finding ways to increase agricultural productivity is key to expanding food supplies and making farming pay. With the world’s population continuing to rise and becoming more urban, there is a pressing need to improve both the quantity and quality of food supplies.

Cooking Bag Helps Poor Households Save Time, Money Development Challenges: For millions of poor people around the world, life is lived on the economic margins and household and personal budgets are tight. There were 1.29 billion people in the world living on less than US $1.25 a day as of 2008 (World Bank), and 1.18 billion living on US $1.25 to US $2 per day. There was only a modest drop in the number of people living below US $2 per day – the average poverty line for developing countries – between 1981 and 2008, from 2.59 to 2.47 billion.

Help is at Hand for India’s Beleaguered Bus-riders Development Challenges:The website is a simple affair: a distinctive logo sits above a lean-looking booking system that allows users to enter their journey start and end destination, date and then click for available buses and prices. Its simplicity is deceptive: redBus is a smart technological solution to a very complicated problem in India: booking and buying a bus ticket. The service it offers – relief from a chaotic, frustrating and time-consuming task – is transforming the experience of travel in India.

March

China Looking to Lead on Robot Innovation Development Challenges: Since the 1950s, science fiction has been telling the world we will soon be living with robots. While robots have emerged, they have been mostly kept to heavy industry, where machines can perform dangerous, hot and unpleasant repetitive tasks to a high standard.

New Cuban Film Seeks to Revive Sector Development Challenges: Since Cuba’s 1959 revolution, the country’s film sector has largely survived on the largesse of the state. The switch to Communism as the guiding economic model of the country after the revolution led, at first, to generous support to filmmakers. The government ranked cinema ahead of television seeing both cinema and television as the two most important forms of artistic expression in the country. But as state funding has dwindled in recent years, adventurous independent filmmakers have tried to keep the Cuban film tradition going using other sources.

India’s Modernizing Food Economy Unleashing New Opportunities Development Challenges: Increasing prosperity in India is reshaping the country’s relationship to its food. A number of trends are coming together that point to significant improvements to India’s long-running problems with food supply and distribution. This matters because India, despite its two-decade economic boom – and increasing middle-class population – is still home to about 25 per cent of the world’s hungry poor, according to the World Food Programme (WFP).

Kenya Turns to Geothermal Energy for Electricity and Growth Development Challenges: In an effort to diversify its power supply and meet growing electricity demand, Kenya is looking to increase its use of geothermal energy sources (http://en.wikipedia.org/wiki/Geothermal_electricity). Tapping the abundant heat and steam that lurks underground to drive electric power plants offers a sustainable and long-term source of low-cost energy.

February

African Afro Beats Leads New Music Wave to Europe Development Challenges: A surge in interest in African music in Britain is creating new economic opportunities for the continent’s musicians. The new sound heating up the U.K. music scene is “Afro Beats” – a high energy hybrid that mixes Western rap influences with Ghanaian and Nigerian popular music.

Venture Capital Surge in Africa to Help Businesses Development Challenges: Africa’s potential economic powerhouse lies in its small and medium enterprises (SMEs). Foreign direct investment (FDI) into Africa ebbs and flows based on the state of the global economy – and most of it is directed towards large enterprises and multinational companies.

Business Leads on Tackling Violence in Mexican City Development Challenges: The damaging affects of crime and violence can ruin a city. They act as a drag on efforts to increase wealth and improve living conditions, and a city that gets a bad reputation, especially in the age of the Internet, will lose investment opportunities.

Africa’s Tourism Sector Can Learn from Asian Experience Development Challenges:Africa continues to be seen as new territory for global tourism, yet it still is not even close to meeting its potential, according to a report by a South African think tank. In fact, many resorts and tourist areas are failing to fill up with visitors. This contrasts with the booming world tourism industry, which broke records in arrivals in 2011 (UNWTO).

Designed in China to Rival ‘Made in China’ Development Challenges: Harnessing the power of design to improve products and the way they are manufactured is a critical component of successful economic development. And the high export value 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 meeting looking for “New and Dynamic Sectors of World Trade” (UNCTAD).

January

Microwork Pioneer Transforms Prospects for Poor, Vulnerable Development Challenges: A pioneering technology social enterprise has found a way to connect people around the world to the new digital economy, transforming their lives and providing long-term employment opportunities. It is closing the digital divide in a very practical way, teaching new skills and, most importantly, providing income to the poor and vulnerable.

African Farming Wisdom Now Scientifically ProvenDevelopment Challenges:Increasing the agricultural productivity of Africa is critical for the continent’s future development, and the world’s. Two-thirds of Africans derive their main income from agriculture, but the continent has the largest quantity of unproductive – or unused – potential agricultural land in the world.

Vietnam Launches Low-cost, High-Quality Video Game Development Challenges: The creative economy offers huge opportunities to the countries of the global South. With the proliferation of new technologies – mobile phones, digital devices, personal computers with cheap or free software, the Internet – the tools to hand for creative people are immense. This begins to level the playing field and allows hardworking and talented people in poor countries to start to compete directly with those in wealthy countries.

Lagos Traffic Crunch Gets a New SolutionDevelopment Challenges: Around the world, traffic congestion is often accepted as the price paid for rapid development and a dynamic economy. But as anyone who lives in a large city knows, there comes a tipping point where the congestion begins to harm economic activity by wasting people’s time in lengthy and aggravating commuting, and leaving commuters frazzled and burned out by the whole experience.

New Kenyan Services to Innovate Mobile Health and Farming Development Challenges:Kenya is home to a vibrant innovation culture centred around mobile phones. While not all the services launched will be successful, the flurry of start-ups shows the country has the right combination of technical skills, bright ideas and cash to make a go of new services.

2013 Development Challenges

By David South, Development Challenges, South-South Solutions

New UNOSSC banner Dev Cha 2013

SOUTH-SOUTH CASE STUDY 

ISSN 2227-3905

The  fourth issue of Southern Innovator has launched online and in print. Order copies now for distribution. Email: southerninnovator@yahoo.co.uk.

December

Baker Cookstoves – Designing for the African Customer Development Challenges: An innovative social enterprise is using design to create an energy-efficient cookstove for Kenya. By turning to an experienced Swedish architecture and design firm, the people behind the Baker cookstove wanted to make sure the stove’s design was as efficient as possible and relevant to the customers’ needs, while also making sure it is visually appealing and something a person would proudly want in their home.

Texting for Cheaper Marketplace Food with SokoTextDevelopment Challenges: An international group of graduate-social entrepreneurs from the London School of Economics (LSE) is pioneering a way to reduce food prices in Kenya using mobile phones.

Ethiopia and Djibouti Join Push to Tap Geothermal Sources for Green Energy Development Challenges:Ethiopia and Djibouti are the latest global South countries to make a significant commitment to developing geothermal energy – a green energy source that draws on the heat below the earth’s surface (http://en.wikipedia.org/wiki/Geothermal_energy) – to meet future development goals.

Tackling China’s Air Pollution Crisis: An Innovative Solution Development Challenges: China reached an undesired landmark in 2013. While the country’s impressive economic growth has amazed the world, it has come at a price: pollution. China recorded record levels of smog in 2013, with some cities suffering air pollution many times above what is acceptable for human health.

November

Ghana Wants to Tap Global Trendy Party SceneDevelopment Challenges: Tourism is big business – and one of the most resilient parts of the global economy. Despite the international economic crisis that has wreaked havoc and increased unemployment and poverty in many countries since 2007, tourism is still going strong.

China Pushing Frontiers of Medical ResearchDevelopment Challenges: Cutting-edge medical research in China is promising to boost human health and development. Futuristic science is being conducted on a large scale and it is hoped this will increase the pace of discovery.

Latin American Food Renaissance Excites DinersDevelopment Challenges: Food is essential for a good life and plays a critical part in overall human health and development. The better the quality of food available to the population, the better each individual’s overall health will be, and this will have a direct impact on mental and physical performance (http://www.sciencedirect.com/science/article/pii/S2213453012000055).

Perfume of Peace Helps Farmers Switch From Drug Trade Development Challenges: A tragedy in a time of war has led to a social enterprise that is creating jobs – and making the world smell a little better, too.

US $450 Million Pledged for Green Economy Investments at Kenyan Expo Development Challenges:Innovators working in the global green economy could benefit from over US $450 million in investment recently pledged at the UN’s Global South-South Development Expo held in Nairobi, Kenya.

October

African Fashion’s Growing Global Marketplace ProfileDevelopment Challenges: Tales of African global fashion successes have multiplied in the last few years. African fashion is seeing its profile rise as more and more shows and festivals boost awareness of the continent’s designs, designers and models. In turn, African fashion and design is being taken more seriously as an income and job generator, and as a sector able to weather the ups and downs of the global economy: people always need to wear clothes.

Cuban Entrepreneurs Embracing Changes to EconomyDevelopment Challenges: The Caribbean island of Cuba has gone its own way economically and socially since its revolution in 1959. The country has seen significant gains in its human development in the decades since, and can boast impressive education levels and good public health care.

Radical Drone Solution to Woeful Infrastructure in Poor Countries Development Challenges: Drones – unpiloted aircraft, formally called Unmanned Aerial Vehicles (UAV) or Unmanned Aircraft Systems (UAS) – have long been used for military purposes. The U.S. military claims to have 7,500 drones – a massive growth from just 50 a decade ago – and has used them for surveillance and combat in conflicts from Afghanistan to Iraq.

Pioneering African Airlines Help to Expand RoutesDevelopment Challenges: The last decade has seen a revolution in African air travel. The number of air routes has grown and this has paralleled the economic growth across the continent. As demand has been strong for Africa’s resources, it has also fueled a consumer boom that is benefiting an increasing number of people.

September

Affordable Space Programmes Becoming Part of South’s Development Development Challenges: Space: the final frontier. At least that was how heading off into the stars was portrayed in cult television and film series Star Trek. While many countries are working to raise living standards and eradicate poverty on earth, some are also looking to space for solutions to earth-bound problems.

Solar Bottle Bulbs Light Up Dark Homes Development Challenges: 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.

China Sets Sights on Dominating Global Smartphone Market Development Challenges: 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.

Poorest Countries Being Harmed by Euro Currency Crisis Development Challenges: 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).

August

Solar-Powered Mobile Clinics to Boost Rural Healthcare in Africa Development Challenges: 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.

Vietnamese Google Rival Challenging Global GiantDevelopment Challenges: 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.

More Futuristic African Cities in the WorksDevelopment Challenges: It has been well documented that China is undergoing the largest migration in human history from rural areas to cities. But this urbanization trend is occurring across the global South, including in Africa, as well. According to the UN, more than half the world’s population already lives in cities, and 70 per cent will live in urban areas by 2050. Most of the world’s population growth is concentrated in urban areas in the global South.

Haitian Coffee Becoming a Hit with American Connoisseurs Development Challenges: The Caribbean country of Haiti has had to deal with the twin challenges of recovering from a devastating earthquake in 2010 while also pulling itself out of the economic and social chaos that has resulted in its status as the poorest place in the Western hemisphere.

New 3D Technology Makes Innovation Breakthrough and Puts Mind over Matter Development Challenges:Revolutions in technology are placing more and more power into the hands of the individual, and 3D printing and fabrication machines are opening a whole new chapter. These devices come in many forms, but they all do one thing: they can manufacture pretty well any three-dimensional object on the spot, from digital plans. These machines come in many sizes, from factory scale to smaller, home versions which are no bigger than personal computer printers, such as the well-known MakerBot Replicator 2 (makerbot.com).

July

African Infrastructure Dreams Back on AgendaDevelopment Challenges: Africa’s patchy infrastructure is not keeping pace with the continent’s economic growth. Satellite photos of Africa at night show a place where light is concentrated overwhelmingly in the South – primarily South Africa – and in the North, with a sprinkling of lights on the west and east coasts (http://geology.com/articles/satellite-photo-earth-at-night.shtml).

Mobile Phone Microscopes to Revolutionize Health Diagnostics Development Challenges: Mobile phone usage has increased hugely across the global South in the past five years. In Africa, the number of mobile phone subscribers reached 545 million in 2013, while there are 3.5 billion mobile phone users in Asia and the Pacific (ITU). Some 93 million people in Africa and 895 million in Asia and the Pacific have mobile phone Internet access (ITU).

Small Fish Farming Opportunity Can Wipe Out Malnutrition Development Challenges: Pioneering work to boost diets across the global South is turning to the smallest of fish. While small in size, tiny fish are packed with nutrition when eaten whole, as they are in many cultures. Often these fish come packed with vitamin A, iron, zinc, calcium, protein and essential fats – all necessary elements to eradicate malnutrition and hidden hunger, especially among women and children.

Burgeoning African E-commerce Industry Full of Opportunity Development Challenges: Africa has seen huge change since 2000 in the way people access information and do business electronically. The most championed accomplishment has been the widespread take-up of mobile phones. This has given birth to countless entrepreneurs and innovators who are using  phones to help people, do business and sell goods and services.

Staple Foods Are Becoming More Secure in the SouthDevelopment Challenges: Finding ways to ensure food security in countries experiencing profound economic and social change and stress is critical to achievement of development goals. Food security is crucial to ensuring economic development is sustainable, and it is vital to long-term human health. Just one bout of famine can damage a generation of youth, stunting brain development and leaving bodies smaller and weaker than they should be.

June

African Innovators Celebrated in Prize Development Challenges: Innovation is increasingly being recognized as the key to tackling long-standing development problems in Africa, as well as across the developing and developed world. While it is easy to draw up a list of challenges facing the global South, it takes a special person to see not problems but solutions.

New Beer Helping to Protect Elephants Development Challenges: How to match the often conflicting goals of protecting animal habitats and supporting local economies? One clever solution may draw amusement but is actually a sharp marketing strategy to get attention for a product that is helping to preserve the elephants of Thailand’s Golden Triangle (http://en.wikipedia.org/wiki/Golden_Triangle_(Southeast_Asia).

Solar Solution to Lack of Electricity in AfricaDevelopment Challenges: Electricity is critical to improving human development and living standards. Yet, for many in the global South, electricity is either non-existent or its provision is patchy, erratic, unreliable or expensive.

Time-Tested Iranian Solutions to Cool and RefrigerateDevelopment Challenges: Keeping food cool is critical for human health. No matter what the climate, a cool environment will prolong food preservation, stave off spoilage and lower the risk of food poisoning. This is crucial for the poor because it means they can reduce food waste and avoid illnesses caused by food poisoning. Diarrhea is a common problem when people do not have access to refrigeration for their food.

May

US $1 Trillion Opportunity for Africa’s Agribusinesses Says Report Development Challenges: As the world’s population continues to grow – surpassing 9 billion people by 2050, the United Nations estimates – and more and more people move to urban areas, producing enough food to feed this population will be one of the biggest economic challenges and opportunities in the global South.

Ambitious Schemes Hope to Advance Economic Development Development Challenges: Sometimes it takes a bold, fresh start to speed up economic and human development goals. Taking a large-scale approach has been used around the world, either establishing new trade zones or even a new city.

Indian Initiatives to Make Travel Safer for WomenDevelopment Challenges: Shocking assaults on women traveling in India have galvanized innovators to find solutions. One solution that is proving successful is to establish specialist taxi services for women. As a happy additional benefit, these taxi innovators are transforming the taxi experience, introducing more ethical practices such as honest fares, professional and safe driving habits and clean, hygienic and comfortable taxis.

Kenya Reaches Mobile Phone Banking LandmarkDevelopment Challenges: Financial transactions and banking with mobile phones have been a Kenyan success story.

April

Online Education Could Boost African Development
 
Development Challenges: Education is recognized as a major catalyst for human development. During a high-level meeting on the Millennium Development Goals (MDGs) (http://www.undp.org/content/undp/en/home/mdgoverview.html) in 2010, UNESCO – the United Nations Educational, Scientific and Cultural Organization – pointed out the necessity of making rapid gains in education if all the MDGs are to be achieved. The goals deadline is 2015 – just two years away.

African Digital Laser Breakthrough Promises Future Innovation Development Challenges:
 
For decades many African countries have experienced low investment in research and development (R&D) and scientific innovation. One of the few nations to benefit from a sophisticated university network and research and development sector was South Africa. It still ranks top on the continent for funding R&D and its high number of scientific journals.

Preserving Beekeeping Livelihoods in MoroccoDevelopment Challenges: The clever combining of tourism and long-standing beekeeping skills has revived a local craft and is also helping to preserve the ecology of Morocco. Beekeeping, or apiculture (http://en.wikipedia.org/wiki/Beekeeping), has two clear benefits. Bee products, including honey, beeswax, propolis, pollen and royal jelly can be a valuable source of income. The other benefit is the critical role bees play in the ecology by pollinating flowers and plants as they go about their daily business.

A New African Beer Helps Smallholder FarmersDevelopment Challenges: Africa’s growth in the past decade has held steady despite the trauma of the global economic crisis and the tumult of the “Arab Spring” in several countries of North Africa. African economies are growing because of a number of resilient trends. These include growing regional trade links, greater investment in infrastructure and the remarkable rise of China to become Africa’s number one trade partner, pushing the United States to second place (Technology + Policy). This has given birth to a growing consumer marketplace and consumer class – some 300 million people earning about US $200 a month (Africa Rising).

Boosting Tourism in India with Surfing CultureDevelopment Challenges: Tourism has experienced decades of growth and diversification and is now considered one of the fastest-growing economic sectors in the world. According to the UNWTO – the United Nations World Tourism Organization – modern tourism is “a key driver for socio-economic progress.”

March

Made-in-Africa Fashion Brand Pioneers Aim for Global Success Development Challenges: African fashion brands have not always been the first place fashionistas turned to when shopping for new clothes or shoes in developed economies. While Africa has long been a source of inspiration in contemporary and traditional fashion, the continent has had a weak reputation for manufacturing and selling mass market global fashion brands.

Kenyan Book Company Brings Online Sales to East Africa Development Challenges: The Internet has revolutionized retail sales in many developed countries – and nowhere more so than for booksellers. The ability to offer an almost unlimited supply of books through a website is revolutionizing the way people shop and giving life to books long out of print or by unknown authors.

African Innovation Helps Make Banking Transactions Safer Development Challenges: As economies grow in Africa, more and more people are conducting their financial transactions electronically. This can be either through mobile phones and digital devices, or through the hole-in-the-wall of the automatic teller machine, or ATM.

New Apps Make Driving and Travelling in Egypt Easier, Safer Development Challenges: Mobile phones are ubiquitous across the global South. They have spawned whole new business opportunities and changed the way people solve problems and find solutions.

Bangladesh Coffin-Maker Offers an Ethical EndingDevelopment Challenges: Few people want to think about death, and many are ill-prepared when it happens to a loved one or friend. But it will happen to us all – and growing ethical and environmental concerns are reshaping the way many deal with the inevitable event. More and more people are seeking a lower-cost option for being disposed of that also does not harm the environment.

February

Thai Organic Supermarkets Seek to Improve Health
 Development Challenges: 
A Thai business is working hard to expand access to organic food in the country. It sees this as part of a wider campaign to improve health in the country – and its success has caught the attention of the government, which wants to turn Thailand into a global health destination.

Global South Experiencing Transportation Revolution
 
Development Challenges: Away from the news headlines, a quiet revolution has been taking place in public transportation across the global South. As cities have expanded and grown, they have also been putting in place public transport systems to help people get around and get to work.

Global South’s Middle Class is Increasing ProsperityDevelopment Challenges: The global middle class is on the rise – and this is creating both challenges and opportunities. As poverty rates have come down across the global South, many countries have seen a rise in the proportion of their population categorized as “middle class”. Globally, being middle class is defined as a person able to consume between US $4 a day and US $13 a day (ILO).

Angolan Film Grabs Attention at Film Festival
 
Development Challenges: The power of the creative economy to transform lives, livelihoods – and perceptions – should never be underestimated. Creativity can transform the image of places and situations often seen in a negative light. A film from Angola is shining a light on the country’s music scene and showing the vitality of the nation in the wake of a long-running civil war.

2014 Development Challenges

By David South, Development Challenges, South-South Solutions

New UNOSSC banner Dev Cha 2013

SOUTH-SOUTH CASE STUDY 

ISSN 2227-3905

The fifth issue of Southern Innovator has launched online and in print. Order copies now for distribution. Email: southerninnovator@yahoo.co.uk.

Issue six will be on science, technology and innovation. This issue will be different from previous issues and will be including supplements and inserts to boost the impact of the magazine. Southern Innovator is seeking sponsors to fund this and also to help us expand the print run (currently 5,000 copies for global distribution).

July

3D Home Printing Landmark: 10 Houses in a DayDevelopment Challenges: The global South is experiencing urban growth on a scale unprecedented in human history, far outstripping the great urbanization wave that swept across Europe and North America during the 19th and 20th centuries.

Old Boats Become New Furniture in SenegalDevelopment Challenges: Every country has its fair share of waste and the remnants of past economic activity. Old cars nobody wants, discarded tins of food, old plastic bags, spare copper wire, cast-off clothing – all can have a new life in the right hands.

Innovative Solutions Celebrated in Ashden AwardsDevelopment Challenges: The world’s population is heading towards 9.6 billion by 2050 (UN). Combined with a growing middle class and rising living standards across the global South, that means ever-greater demand on the world’s finite resources. This raises a crucial question: Where will the energy to power rising living standards come from, and how much damage will be done to the planet’s environment by pollution created generating it (https://www.un.org/en/development/desa/news/population/un-report-world-population-projected-to-reach-9-6-billion-by-2050.html)?

Innovative Ways to Collect Water from AirDevelopment Challenges: World water resources are being depleted quickly as populations grow, urbanize and demand better living standards. Many scientists believe we are reaching peak water – the point at which fresh water is consumed faster than it is replenished.

June

Caribbean Island St. Kitts Goes Green for TourismDevelopment Challenges: Going green may sound like the right thing to do but it can also be associated with being a costly burden and boring. But, as one island nation is proving, being green is a great selling point for attracting tourists and investors – especially in a world where many places are grappling with pollution and resource depletion.

Big Data Can Transform the Global South’s Growing Cities Development Challenges: The coming years will see a major new force dominating development: Big Data. The term refers to the vast quantities of digital data being generated as a result of the proliferation of mobile phones, the Internet and social media across the global South – a so-called ‘data deluge’ (UN Global Pulse). It is an historically unprecedented surge in data, much of it coming from some of the poorest places on the planet and being gathered in real time.

Indian Business Model Makes Green Energy Affordable Development Challenges: The technology already exists to provide renewable energy and electricity to all the world’s poor. The trick is finding a way to pay for it and to make it sustainable. Many innovators are experimenting with business models to reach the so-called Bottom of the Pyramid (BOP) cohort, and the 1.2 billion poorest people in the world who do not have access to electricity (World Bank) (http://tinyurl.com/n9p3f5x). A further 2.8 billion have to rely on wood or other biomass materials to cook and heat their homes.

South-South Trade Helping Countries During Economic Crisis Development Challenges: Weathering the global economic crisis is testing the stability of countries across the global South. But many countries are finding South-South trade and catering to their domestic middle classes can lift incomes and maintain growth rates despite the global turmoil.

May

3D Printing Gives Boy a New Arm in SudanDevelopment Challenges: 3D printing is rapidly going mainstream and is now starting to make a big impact in health care. One innovative solution is using the technology to manufacture artificial arms for amputees harmed by war in Africa.

African Hotel Boom Bringing in New Investment and Creating Jobs Development Challenges: Africa is experiencing a boom not seen for decades. The IMF forecasts economic growth in sub-Saharan Africa of 6 per cent in 2014, compared to global growth of 3.6 per cent.

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

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

April

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

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

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

Popular Chinese Social Media Chase New MarketsDevelopment Challenges: China has a vast and growing market for the Internet and mobile devices. Over the past decade that market has been largely confined to China –  most businesses have had enough domestic demand and opportunities inside the country to keep them busy.

The BRCK: Kenyan-Developed Solution to Boost Internet Access Development Challenges: Using the Internet in Africa has its challenges, as anyone who has worked there knows. Issues can include weak Wi-Fi signals, slow Internet service providers, electricity outages and power surges that can damage or destroy sensitive electronic devices.

March

Women Empowered by Fair Trade ManufacturerDevelopment Challenges: There is sometimes a great deal of negativity surrounding the issue of manufacturing in Africa. Some claim the risks of doing business are too high or that the workers are not motivated enough. But one garment manufacturer is out to prove the skeptics wrong. It pays decent wages and gives its mostly female workforce a stake in the business in a bid to drive motivation and make it worthwhile to work hard.

Global South Trade Boosted with Increasing China-Africa Trade in 2013 Development Challenges: It was announced in January 2014 that China has surpassed the United States to become the world’s number one trading nation, as measured by the total value of exports and imports. This new economic behemoth also continued to grow its trade relationships with Africa.

India 2.0: Can the Country Make the Move to the Next Level? Development Challenges: With the global economic crisis threatening to cause turmoil in the emerging markets of the global South, it is becoming clear that what worked for the past two decades may not work for the next two.

“Pocket-Friendly” Solution to Help Farmers Go Organic Development Challenges: Interest in organic food and farming is high, and organics have become a growing global industry. The worldwide market for organic food grew by more than 25 per cent between 2008 and 2011, to US $63 billion, according to pro-organic group the Soil Association. That is an impressive accomplishment given the backdrop of the global economic crisis, and evidence that people value quality food, even in tough times.

Cheap Farming Kit Hopes to Help More Become Farmers Development Challenges: Food security is key to economic growth and human development. A secure and affordable food supply means people can meet their nutrition needs and direct their resources to improving other aspects of their lives, such as housing, clothing, health services or education.

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Mongolia Looks to Become Asian IT Leader

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

A Mongolian information technology company founded by a woman has shown a way to thrive in the country’s often-chaotic economic environment. With the global economic crisis moving into its third year, Intec’s strategies to survive and thrive offer lessons for other IT start-ups in the South.

While the global economy’s prospects are still uncertain, on the positive side, many believe the best place to be is in emerging economies like Mongolia, with some foreseeing healthy growth for the next 20 to 30 years. Mongolia’s information technology entrepreneurs are looking to prove this is the case. The country has made great strides in improving e-government – jumping from 82nd place to 53rd in the UN e-government survey 2010 (http://www2.unpan.org/egovkb/global_reports/10report.htm) – and is now aiming to become an Asian software and IT services outsourcing powerhouse.

A Northeast Asian nation (http://en.wikipedia.org/wiki/Mongolia) sandwiched between Russia and fast-growing China, Mongolia grapples with the combination of a large territory, a small population (2,641,216) and limited transport infrastructure connecting it to its neighbours. Historically, it is a nomadic nation with a strong animal herding tradition. But during the Communist period, it industrialized and became more urban. After the collapse of Communism at the beginning of the 1990s, the country experienced a terrible economic and social crisis, with rapidly rising poverty rates and high unemployment.

Despite its infrastructure obstacles, Mongolia has been able to develop a lively information technology sector, often with the assistance of the United Nations. During the late 1990s, as the internet revolution exploded, the UN led on supporting infrastructure, skills development, innovation and legislation.

Information technology consulting and services company Intec (www.itconsulting.mn) , founded in 2004, has been able to thrive through the global economy’s ups and downs by identifying an under-serviced niche as a consulting, research and training company. Intec now has five full-time staff and works with a broad network of Mongolian and international consultants.

As is often the case with new businesses, Intec initially found that many doors were closed to start-up enterprises.

“The major challenges which I faced were to make people understand about the consulting services,” said Intec’s founder, Lkhagvasuren Ariunaa. “The consulting services concept was new to Mongolia and Mongolians at that time and not many organizations were willing to work with consulting services. The international and donor organizations were keen to work with consulting services companies; however, they were requiring companies to have a list of successfully implemented projects, which was difficult for a new starter like Intec.

“For example, registering with the Asian Development Bank consulting services database required companies to be operational for at least three years. So, we got registered with ADB consulting services database only in 2008. Meanwhile, personal connections and communication skills helped to find jobs and opportunities for Intec.”

Ariunaa had worked for the Soros Foundation (http://www.soros.org/) but it closed its offices in Mongolia in 2004. Faced with unemployment, Ariunaa went about seeing what she could do next: a dilemma many people face in today’s economy.

“It took me about eight months to develop a business plan and directions of operation of the company. I started in a big room at the national information technology park building with one table, chair and computer.

“It has been quite challenging years for bringing a company to the market and finding niches for us. We have franchised the Indian Aptech WorldWide Training center (http://www.aptech-worldwide.com) in Mongolia – may be one of the few franchising businesses in Mongolia. Currently that center is now a separate entity/company and it has over 20 plus faculty staff and over 300 students.”

Ariunaa had been active in the sector for over 10 years, but while knowing many of the players and organizations, she spent time researching what niche Intec could fill in the marketplace.

“Looking at the ICT market, there were quite a number of internet service providers, mobile phone operators, a few companies started developing software applications, and services etc. However, there were only two to three consulting companies in the ICT sector which to my knowledge at that time were providing consulting services, and still there was a room for Intec.”

Intec then focused on three areas: consulting services, training and skills, and research. Intec found they were pioneering a new concept in Mongolia.

Intec’s first contract was a job with the University of Milwaukee-Wisconsin in the United States to organize a three week course for American students to learn about the digital divide in Mongolia. But the global economic crisis hit Mongolia hard in 2009.

“It was challenging to survive and continue working the same way,” Ariunaa said. “There were few ICT-related jobs in Mongolia at that time, and one of our major clients left Mongolia and we had to find other clients in the market.

“One of the ways of approaching this was that we were not asking for fees, instead we would have a barter agreement – we will deliver them services and they will provide some services for us. For the company itself, we needed to find ways of financing and covering costs for renting of premises, paying salaries for staff on time, paying taxes and other expenses.”

The environment in Mongolia is being helped by the Information and Communications Technology and Post Authority (ICTPA) of Mongolia (http://www.ictpa.gov.mn) , which has been driving forward an e-Mongolia master plan. With 16 objectives, it ambitiously seeks to place Mongolia in the top five of Asian IT nations, competing with South Korea, Singapore, Japan and China.

Ariunaa believes Mongolia has many competitive advantages. “Mongolia is known for a high-literacy rate and math-oriented training and education, and ICT specialists are targeting to become a software outsourcing country for other countries. Another advantage of Mongolians is that they can easily learn other languages: we are fluent in Russian, English, Japanese, Korean, German and we believe that with these two major advantages, we will be able to do a good job with outsourcing of software development.”

While men still dominate the ICT sector in Mongolia, Ariunaa has not found being a woman a disadvantage. “In Mongolia, as gender specialists say, there is a reverse gender situation. Women are educated, well-recognized and well-respected. There were situations, when I was the only women participant in the meeting with about 20 men. But I never felt somewhat discriminated or mis-treated and I think that’s the overall situation towards gender in Mongolia.”

Intec’s success working with Aptech WorldWide Training’s franchising contract brought many advantages for a start-up. “It’s a faster way to do things, and you don’t have to re-invent the wheel.”

As a Mongolian company, Intec has found it best to play to its local strengths. “National companies have knowledge, expertise and experience of local situations, know players and understand about legal, regulatory matters. … partnership or cooperation are one of the means of cooperating with big global players.”

Intec’s success is also down to Ariunaa’s enthusiasm: “It’s fun and I love doing it – just usually do not have enough time!”

Resources

1)  Advice on starting a business and succeeding in tough economic times. Website:http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073858805

2) Changing Dynamics of Global Computer Software and Services Industry: Implications for Developing Countries: A report from UNCTAD on how computer software can become the most internationally dispersed high-tech industry. Website:http://www.unctad.org/templates/webflyer.asp?docid=1913&intitemid=2529&lang=1

3) Afrinnovator: Is about telling the stories of African start-ups, African innovation, African made technology, African tech entrepreneurship and entrepreneurs. Their mission is to ‘Put Africa on the Map’ by covering these kinds of stories from all over Africa. As their website says, “if we don’t tell our own story, who will tell it for us?” Website:http://afrinnovator.com

4) TechMasai: Pan-African start-up news and reviews. Website: www.techmasai.com

5) Ger Magazine Project: Mongolia’s first online magazine pioneered communicating on the web. Website: http://en.wikipedia.org/wiki/Ger_magazine

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

Launched in 1997 in a major crisis, the UN Mongolia Development Portal (www.un-mongolia.mn) became the country’s largest online bilingual publisher and an award-winning pioneer of web content. It proved Mongolia had the potential to innovate in digital.
Story featured in the UN E-Government Knowledgebase and E-Government Survey in Media.