David South Consulting

Category: Development Challenges, South-South Solutions Newsletters

The Development Challenges, South-South Solutions e-newsletter was published by the United Nations Office for South-South Cooperation (UNOSSC) from 2006 to 2014.

  • Indian Newspapers Thrive with Economy

    Indian Newspapers Thrive with Economy

    By David South, Development Challenges, South-South Solutions

    SOUTH-SOUTH CASE STUDY

    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.

    As incomes rise and literacy levels go up, so does the desire to consume news and information. And while many are jumping straight to online and mobile phone sources, just as many are enjoying more traditional print media offerings like magazines and newspapers.

    India boasts both a fast-growing economy and the largest number of paid-for newspapers in the world. The print media industry in India has seen phenomenal growth since 2005, with the number newspaper titles increasing by 40 percent to 2,700 (World Association of Newspapers). The two factors driving this growth in newspapers are rising literacy and a booming economy

    The World Association of Newspapers found China leads the world for newspaper subscribers, with 93.5 million readers a day. India is second. It is estimated the Indian newspaper industry will generate US $3.8 billion in revenues in 2010, a 13 percent growth rate over the last five years.

    Estimates place growth in the newspaper industry in the next four years at 9 percent a year, to US $5.9 billion (KPMG).

    Part of the reason India is defying the decline in newspaper numbers and readership seen in developed countries is poor internet penetration across the country. Because of this, only 7 percent of the population uses the web for information. And the country’s high number of illiterates (just 65 percent of the population can read) means even if many could afford a newspaper, they couldn’t use it.

    According to Amar Ambani, head of research at India Infoline Group, “Unlike the West where the internet publishing and advertising has significantly hit the print media, the Internet threat to print media is still in its nascent stage in India, given the low penetration of computers and adequate bandwidth across the country.”

    Newspapers are also growing in a highly competitive market exploding with new television channels on cable and satellite and other media distractions like mobile phone applications.

    The newspapers (http://www.world-newspapers.com/india.html) are a strong reflection of how much the economy has changed in the past decade. They contain advertisements for property, mobile phones, cars and dating services.

    Cost is also a critical element in their success: at only four rupees each (US $0.09 cents), many Indians buy several newspapers at a time for their home. The publications are able to charge so little because of the health of the advertising revenue coming in. Newspaper advertising in India increased by 30 percent between January and Match 2010 alone, the quickest jump in ads for the Asia-Pacific region (Nielsen India).

    There is a hierarchy in the newspaper industry: English-language newspapers attract wealthier readers and can charge the most for advertising. But rising literacy rates combined with increasing personal wealth is fuelling growth in regional papers written in local languages. India has 22 official languages and English as an associate language. The country as a whole has about 33 different languages and over 2,000 local dialects. Hindi newspaper circulation rose from 8 million in the early 1990s to over 25 million in 2009.

    The Times of India (http://timesofindia.indiatimes.com) is now the world’s largest circulation English-language newspaper, with 4 million readers. It uses this success to charge 10 times what regional papers can for advertising. At present, the regional newspapers’ bread-and-butter is mostly government-paid advertising.

    But if trends continue as they are, then the tables will turn on big beasts like the Times of India. Regional papers will grow as people look for an opportunity to read in their own local language.

    Flush with cash and confidence, Indian newspapers are also innovating new ways to advertise untried in other countries. Talking ads attached to the actual newspaper’s back pages caused a great stir when they were trialled in India recently (http://www.guardian.co.uk/media/greenslade/2010/sep/28/newspapers-advertising). The talking ads for a car company delivered a sales pitch but also alarmed and annoyed many people because the talking ad wouldn’t stop talking.

    Ambani puts the success of the Indian newspaper industry down to five factors: the economic boom in semi-urban and rural India; growing local content; more opportunity to grow the number of readers; rising advertising spending; and rising literacy as a result of rising secondary school enrolment. He believes students aged between 10 and 15 are getting the newspaper habit and they represent huge future growth in newspaper readers.

    Published: October 2010

    Resources

    https://davidsouthconsulting.org/2022/11/17/book-boom-rides-growing-economies-and-cities/

    https://davidsouthconsulting.org/2022/09/29/cheap-indian-tablet-seeks-to-bridge-digital-divide/

    https://davidsouthconsulting.org/2022/10/20/the-e-reader-battle-reaches-india/

    https://davidsouthconsulting.org/2022/10/12/free-magazine-boosts-income-for-rickshaw-drivers/

    https://davidsouthconsulting.org/2022/05/26/kenyan-book-company-brings-online-sales-to-east-africa/

    https://davidsouthconsulting.org/2022/10/12/rickshaw-drivers-prosper-with-new-services/

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

    https://davidsouthconsulting.org/2021/03/05/southern-innovator-issue-1/

    Creative Commons License

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

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

    © David South Consulting 2024

  • Innovative Mobile Phone Applications Storm South

    Innovative Mobile Phone Applications Storm South

    By David South, Development Challenges, South-South Solutions

    SOUTH-SOUTH CASE STUDY

    The pace of change in information technology in the South is impressive, and nowhere has it been more rapid than in the take-up of mobile phones. In the past three years China has become the world’s largest exporter of information and communications technology (ICT), and home to the same number of mobile-phone users (500 million) as the whole of Europe. According to India’s telecoms regulator, half of all urban dwellers now have mobile- or fixed-telephone subscriptions and the number is growing by eight million a month. In Tanzania, mobile phone use grew by 1,600 percent between 2002 and 2008. In Nigeria it grew by almost 7,000 percent over six years, from 5 percent of the population 140 million in 2002, to a predicted 34.3 percent by the first quarter of this year.

    But it is the Philippines that has become a global leader in mobile phone commerce. A whole panoply of banking tasks can now be done by mobile phone: transferring funds from one person to another, making small purchases, or paying fees.

    “The most significant lesson learned so far,” said Shawn Mendes, lead author on a report titled The Innovative Use of Mobile Applications in the Philippines Lessons for Africa. “Is that m-Banking, rather than more altruistic applications such as m-Health and m-Education, has delivered the greatest benefits to people in developing countries.”

    Access to basic banking services is vital for the world’s poor: The Consultative Group to Assist the Poor (CGAP) found that over 3 billion poor people lack access to even the most minimal banking services to manage their lives.

    But mobile phones have come to the rescue as the fastest growing consumer product in history. Portio Research estimates that between 2007 and 2012 the number of mobile subscribers will grow by another 1.8 billion, mostly in emerging economies like India and China.

    The Philippines is not alone in introducing so-called m-Banking (mobile phone banking) Africa’s leaders include the Democratic Republic of the Congo (CelPay), Kenya (M-PESA), South Africa (MTN MobileBanking and WIZZIT) and Zambia (CelPay).

    “Safari-Com’s M-Pesa in Kenya has grown rapidly from start-up in early 2007 to well over 1 million accounts today,” said Mendes, the report author. “In May of this year Vodacom launched M-Pesa in Tanzania for their 4 million subscribers in that country. I expect very rapid growth of this service in Tanzania where less than 10 per cent of the adult population have conventional bank accounts. There are numerous other examples such as CelPay in Zambia and the Congo but I have been watching the success of M-Pesa in East Africa most closely.”

    But the Philippines has taken m-Banking the furthest, with two great models for other countries: G-Cash and Smart Money. And the country has shown that it is possible to make these services attractive to the poor, not just the wealthy.

    A combination of a good regulatory environment and an atmosphere of innovation brought mobile phone costs down, and made this possible. The mobile phone innovations were also successful because they mimicked existing consumer habits of the poor, piggy-backing on the extensive retail network of small village shops or “sari sari” stores. Poor Filipinos usually buy “tingi” or “sachets” of products like shampoo, fish sauce or soap. And it is in these shops that credit top-up centres were set up and prepaid phone cards sold.

    Cleverly, mobile phone operators in the Philippines at first offered free SMS (short message service) text messaging. This was key to how m-Banking took off. As Smart Money’s Napoleon Nazareno said: “there must be an existing SMS habit.”

    This should bode well for Africa, where an SMS habit has taken hold because it is so much cheaper than voice calls. Another important habit was prepayment. People learned how to use prepay cards, call numbers and how to enter codes into phones to purchase credits. They learned how to check their credit balance and to electronically load credit on to their phone. This habit made m-Commerce much easier and fuelled its growth.

    In South Africa, m-Banking services are revolutionizing daily life. Hair salon owner Andile Mbatha in Soweto used to have to travel for two hours by minibus to a bank to send money to his relatives. But by setting up a bank account with a service called Wizzit, he no longer needs to keep stacks of cash in his salon (and risk robbery), can send money to his sister in Cape Town by phone, and receive payment for hair cuts by phone from his customers. “This has taken out a lot of stress,” said Mr Mbatha.

    For Southern entrepreneurs looking to get the most from mobile phones, another recent development will help. Mobile phone companies are following developments with computers and turning away from using only proprietary software, to allowing open source software. Over the next six months, this will mean small-scale entrepreneurs can get in on making applications for mobile phones on a massive scale. Two software companies are now involved: Symbian, which provides the operating system for most of the new generation mobile phones with web access, and Google’s Android open source operating system for mobiles. In Sub-Saharan Africa and East Africa, these applications will help to bypass the lack of internet bandwidth.

    In India, poor rural farmers are using mobile phone text messaging to get an advantage over the commodity markets. With so-called “agflation” and “rising prices for food ” it is crucial farmers keep on top of fluctuating commodity prices. Over 250 million Indians rely on farming for survival. But the pressure on farmers is severe and suicide rates are high.

    Banana farmer Kapil Jachak is using a text messaging service to get the latest on the weather and daily market prices. The service, Reuters Market Light, costs a dollar a month. It’s a for-profit business venture by the global business news service, but helps farmers make money too. It already has 15,000 customers signed up.

    This market knowledge gives the farmers a huge advantage when they compete with the traders in the wholesale markets of the city of Pune. “By getting the weather reports we can see exactly how much water our banana plants need,” said Kapil to the BBC. “I keep my cost down, and get the best crop I can.”

    “This has increased my profit. I don’t have to make some headache, and go to any market, any shopkeepers, and wholesalers. I can do my marketing easily and get more and more money.” The service has already armed him with the knowledge to fight off banana stem weevils when they were attacking crops. The text recommended a pesticide.

    Published: July 2008

    Resources

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

    Creative Commons License

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

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

    © David South Consulting 2022

  • Rainforest Rubbers Save Lives

    Rainforest Rubbers Save Lives

    By David South, Development Challenges, South-South Solutions

    SOUTH-SOUTH CASE STUDY

    Two development goals are being achieved with one innovative business in Brazil. By using natural rubber tapped from trees in the Amazon rainforest to make condoms, Brazil is able to afford the cost of distributing condoms to tackle its HIV/AIDS crisis. Brazil currently imports more than 120 million condoms every year from China, Republic of Korea and Thailand, making it the world’s biggest single buyer of condoms. The government gives them away for free as part of a national campaign to combat HIV. More than 620,000 people in Brazil are living with HIV out of a population of more than 186 million (UNAIDS, 2005).

    The Natex company, co-owned by the public health ministry and the north-western state government of Acre, has established a factory to turn rubber from the world’s biggest rainforest into condoms. The business has created 500 jobs at the factory and 150 jobs for the local indigenous population – the Xapuri – who are traditional rubber tappers.

    The factory hopes to produce 100 million condoms a year from local rubber – just 20 million shy of all the condoms the country currently has to import – and could even reach 270 million at full capacity.

    “This product will allow people to make love with security and to better plan their futures,” said Raimundo Barros, vice president of the local agricultural association.

    The 15,000 Xapuri people who live on the Chico Mendes reserve – named after a conservationist and rubber tapper murdered by ranchers in 1988 – tap seringai trees, which produce rubber that is said to be a more effective barrier to the transmission of sexually transmitted diseases (STDs), than synthetic rubber condoms.

    The factory’s 500 employees will earn a total of Reais $2.2 million (US $1.3 million) while the tappers will see their income increase by 250 per cent as demand goes up for the rubber, according to Natex.

    “Because of this I’ve managed to buy a few cows and give my family a better life,” rubber tapper Hugo Paz de Souza, 43, told local newspaper Pagina 20. Paz de Souza said the factory will double his income to US $394 a month.

    The fact the trees will be saved because of their value as sources of rubber is a great boon to the world’s environment. The trees in the Amazon rainforest – the “world’s lungs” as some call it – face the threat of being chopped down to make way for Brazil’s booming agricultural economy. Official figures released in January 2008 showed that between August and December 2007, about 2,700 square miles were chopped down illegally in the Amazon rainforest. It was the first increase in deforestation after three years of declines and coincided with a rise in global food prices.

    Marina Silva, Brazil’s environment minister, told the Guardian newspaper the Natex condom would help create “a new pattern of production and a new process of inclusion that would value the forest being left standing”.

    Published: May 2008

    Resources

    https://davidsouthconsulting.org/2020/12/17/lamas-against-aids/

    https://davidsouthconsulting.org/2020/12/17/philippine-conference-tackles-asias-aids-crisis/

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

    https://davidsouthconsulting.org/2021/03/05/southern-innovator-issue-2/

    Creative Commons License

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

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

    © David South Consulting 2022

  • Rainforest Gum Gets Global Market

    Rainforest Gum Gets Global Market

    By David South, Development Challenges, South-South Solutions

    SOUTH-SOUTH CASE STUDY

    Mexico is home to the second largest rainforest in the Americas after the Amazon jungle. But the country’s forests face serious threats from logging, cattle ranching and agriculture. As much as 80 percent of Mexico’s original forests have already been lost.

    A group of Mexican farmers is now using sophisticated product marketing to preserve their income, and the 1.3 million hectares of rainforest as well. They are called chicleros and they harvest the gum needed to make natural chewing gum, a once-booming industry laid waste by the arrival of synthetic chewing gum in the 1950s. Their story is an excellent example of how a declining industry can turn things around with a smart plan and sophisticated marketing.

    A collection of 56 cooperatives comprising 2,000 chicleros – called Consorcio Chiclero – is now making, marketing and selling its own brand of chewing gum: Chicza (http://www.chicza.com/index.php). The chicleros are supporting a community of 10,000 people across the three states of Yucatán, Campeche and Quintana Roo.

    Gum has been chewed in Mexico to clean teeth as far back as the ancient Mayan people in the second century AD.

    The gum harvesting business was dying out and young people, put off by the low pay, were leaving for jobs elsewhere. The adminstrators of the chiclero co-operative created Chicza Rainforest Gum brand to save the industry. They made a deal with Britain’s Waitrose supermarket chain, which specializes in fair trade products, and the gum is being launched in 100 stores.

    The brightly coloured packages of chewing gum are now being sold as organic and a way to preserve the forest. Frustrated by the decades of decline and attendant poverty and community decay, the chicleros decided to take matters into their own hands. Five years ago they decided to avoid the middlemen who would buy their raw gum products, and instead manufacture and market the chewing gum themselves. And it is paying off: by adding value to the raw product, each farmer’s income has grown six times higher than he would earn as a mere provider of raw material.

    The gum comes in three flavours: wild mint, heirloom lime and spearmint. Future flavours will blend tropical fruits, herbs and spices.

    The Consorcio Chiclero coordinates the production, the logistics, the trade and the finances for the manufacture of gum from the chicozapote tree (Manilkara zapota).

    Certified organic, the Chicza gum is completely natural and free of synthetic ingredients and also biodegrades when it is discarded – a boon to city governments who hate the mess and cost of traditional gum left on sidewalks.

    The farmers work in the rainforest at the southern end of Mexico’s Yucatan peninsula (http://en.wikipedia.org/wiki/Yucat%C3%A1n_Peninsula), bordering Guatemala and Belize. It is a place with one of the most bio diverse ecosystems in the world, and an environment the farmers are in harmony with. The chicle gum (http://en.wikipedia.org/wiki/Chicle) is harvested from chicozapote trees – some living for more than 300 years – by hacking z-shaped cuts into the bark of the 100 foot trees. The harmless cuts zig zag down the tree and a bucket is placed at the bottom to collect the dripping sap.

    Once collected, the sap is boiled, dried and made into a sticky paste, which is then kneaded and shaped into bricks called marquetas. Each marqueta is carefully marked by its maker. Since the sustainable management of their rainforests is certified by FSC (Forest Stewardship Council) (http://www.fsc.org/), these marks contain relevant information that tells the name of the chiclero who harvested it, and the exact location of the harvested tree in the rainforest. Few products offer such perfect traceability.

    “I started following my dad around the rainforest when I was 10 and working when I was 12,” farmer Porfirio Banos told The Guardian newspaper. “I am a chiclero to my core.”

    Working in a remote area of rainforest jungle with just spider monkeys for company, the chicleros are paid by the amount of chicle harvested

    “We don’t kill the trees like farmers do when they clear land to grow corn or graze cattle,” says Roberto Aguilar, 60. “We leave a wound, it’s true, but eight years after it is healed and producing chicle again.”

    The chicleros face two main risks while doing the job: falling from the trees if their rope gives out; and being bitten by poisonous snakes.

    Chicle was once the basis of all commercial chewing gum. Beginning in New York 141 years ago, it was the only source for chewing gum until the 1950s, when synthetic substitutes destroyed the industry.

    It was the economic desperation of a Mexican general, Antonio Lopez de Santa Anna, living in exile in the United States in 1869, that gave birth to gum-chewing as a global practice. Working with a local inventor, Thomas Adams, he tried to use the chicle to make a rubber substitute. But when this failed, Adams added sugar and flavouring, making chewing gum.

    Apart from being a great chew, the natural gum’s unique selling point is saving money: local governments tight for cash are looking for other ways to deal with the menace of chewing gum on pavements. A small fortune is spent every year trying to keep streets clean of gum. The British alone spend over UK £150 million every year trying to clean their streets of chewing gum.

    And despite the global recession, the chicleros are optimistic they can do well: during the Great Depression of the 1930s, chewing gum was an affordable treat and sold well.

    Published: April 2009

    Resources

    https://davidsouthconsulting.org/2022/11/10/acai-berry-brazils-boon/

    https://davidsouthconsulting.org/2022/11/10/brazilian-restaurant-serves-amazonian-treats/

    https://davidsouthconsulting.org/2022/10/17/connoisseur-chocolate-from-the-south-gets-a-higher-price/

    https://davidsouthconsulting.org/2022/11/01/indonesian-food-company-helps-itself-by-making-farmers-more-efficient/

    https://davidsouthconsulting.org/2022/10/24/latin-american-food-renaissance-excites-diners/

    https://davidsouthconsulting.org/2022/10/31/rainforest-rubbers-save-lives/

    https://davidsouthconsulting.org/2022/11/10/saving-the-amazon-forest-while-making-a-living/

    https://davidsouthconsulting.org/2022/10/17/west-african-chocolate-success-story/

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

    https://davidsouthconsulting.org/2021/03/05/southern-innovator-issue-3/

    Creative Commons License

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

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

    © David South Consulting 2022