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.
Since the global economic crisis erupted in 2008, the world’s poor have seen prices fluctuate wildly as the international financial system fights the effects of the turmoil. In 2008, this led to the Food and Agriculture Organization sounding the alarm about the harmful effects of rising food inflation.
Increasing hunger led to civil unrest and rioting that year.
Anything poor people can do to make their slim daily budgets go a little bit further means more money left over for better quality food and other expenses, like clothing, shelter, fuel and education. One clever invention from South Africa is trying to tackle household cooking costs and shave the cost of fuel required to prepare the family meal. The Wonderbag (http://nbwonderbag.com/) is a brightly coloured, puffy cooking bag that slow cooks a meal in a pot – be it a stew, curry, rice, soups – to save energy.
“The cost and savings per household are significant,” according to the Wonderbag’s inventor, Sarah Collins.
It has many other advantages, too: it is a time-saver, allowing people to spend the time doing something other than just tending the cooking pot. It can also reduce cooking accidents because less time is spent around the stove or fire.
It is an efficient cooking method that uses less water to cook meals. And it even avoids the risk of burning – and wasting – food.
“20 per cent of all staple food in Africa is burned, due to pots being placed on open fires and unregulated stove tops. With the Wonderbag, no burning happens,” confirms Collins.
To date, the Wonderbag has created 1,000 jobs and is looking to increase this to 7,000 jobs in the next five years.
Wonderbag bills itself as “eco-cooking that’s changing lives.”
Eco-cooking seeks to use every joule (http://en.wikipedia.org/wiki/Joule) of energy from the cooking fire or heat source to maximum effect. A pot is placed on the stove and brought to the temperature required for cooking the dish. Then the pot is placed in the Wonderbag. Since the bag is heavily insulated, it reflects back the existing heat in the dish and allows it to continue cooking for up to 12 hours. It can cook rice in one hour and lamb in two to three hours.
It works in four easy steps, summed up on the Wonderbag website: “boil it, bag it, stand it, serve it”.
The Wonderbag claims to use 30 per cent less energy than other cooking methods. According to cost breakdowns on the Wonderbag website, someone with a Wonderbag would use 2.4 litres a week of paraffin – a common fuel for cook stoves – compared to 4 litres without. This works out to a cost of US $2.40 a week with a Wonderbag and US $4.00 a week without.
The trade-off with the savings in money and energy is time – Wonderbag is not suitable for those looking for a quick meal. According to Wonderbag, meat that cooks in 20 minutes on the stove will take five hours in the Wonderbag.
Chicken that takes 15 minutes on the stove takes three hours in the Wonderbag. Vegetables that take five minutes on the stove will cook in an hour in the Wonderbag.
South African entrepreneur and inventor Collins originally developed the Wonderbag for people living in the townships of Durban (http://en.wikipedia.org/wiki/Durban). She found many of the residents spent up to a third of their income on fuel for cooking. They would either use paraffin or spend many hours gathering wood or dung.
These common fuel sources for cooking give off toxic fumes and are a health hazard if used for long periods. The Wonderbag means households spend less time inhaling fumes from a stove.
“The Wonderbag will always be a work in progress for me as I look to adapt the bag in line with my consumers’ feedback,” confirms Collins. “For example, we are now about to launch Wonderbag 2, which has an even more efficient insulator than polystyrene and is more readily available and easier to recycle following feedback earlier in the year.”
In South Africa, the bags sell for R170 (US $22) and there are discounts for the very poor. Collins estimates that a family of four could save US $80 a year if they used the Wonderbag two or three times a week.
Collins has used clever marketing strategies to get the Wonderbags out to the public, and 150,000 have been sold so far. One promotion gave away a Wonderbag with every purchase of boxes of curry powder.
Wonderbag has also partnered with local communities. Swartland Municipality (swartland.org.za) purchased 5,000 Wonderbags and distributed them to 4,700 of “the most indigent and deserving households – the poorest of the poor.”
It is also running a promotion in the United Kingdom where, for every Wonderbag bought, one is given to a family in the developing world.
The popularity and success of the Wonderbag prompted the multinational food company, Unilever – one of the world’s leading suppliers of fast-moving consumer goods – to purchase 5 million bags for distribution. According to the Wonderbag website, this could lead to savings of US $1.35 billion on fuel for the users.
“The partnership has also enabled us to scale up and test the Wonderbag in different markets,” explains Collins.
Wonderbag hope to expand to 12 or 15 developing countries in Africa in 2012.
The company says it plans to target developing countries with high poverty, fuel supply shortages, high incidence of health problems from air pollution, and high incidence of injuries from fuel fires.
And for Wonderbag’s success so far, Collins has this advice: “Immerse yourself in your product and the way of life of your consumers. Understand it and them inside out so you can be your best advert. Word of mouth is by far the best form of advertising and the truth out of your own mouth is a great start.”
Published: April 2012
Resources
1) Haybox: Haybox is another variation on the concept of heat retention for efficient cooking. Website: http://haybox.co.uk/
3) Solar ovens and cookers are another way to cut costs when making meals.This website has many designs and plans on how to build a solar cooker. Website: http://solarcooking.org/plans/
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 SokoText Development 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 EnergyDevelopment 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 SolutionDevelopment 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 Scene Development 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 Diners Development 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 ExpoDevelopment 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 Profile Development 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 Economy Development 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 CountriesDevelopment 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 Routes Development 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 DevelopmentDevelopment 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 HomesDevelopment 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 MarketDevelopment 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 AfricaDevelopment 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 Giant Development 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.
Story cited in Beyond Gated Communitiesby Samer Bagaeen and Ola Uduku, Taylor & Francis, ISBN 9781317659051, 2015
Haitian Coffee Becoming a Hit with American ConnoisseursDevelopment 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 MatterDevelopment 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 Agenda Development 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 DiagnosticsDevelopment 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 MalnutritionDevelopment 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 OpportunityDevelopment 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 South Development 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 PrizeDevelopment 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 ElephantsDevelopment 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 Refrigerate Development 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 ReportDevelopment 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 DevelopmentDevelopment 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 Women Development 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 Landmark Development 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 InnovationDevelopment 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 Morocco Development 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 Farmers. Development 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 Culture Development 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 SuccessDevelopment 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 SaferDevelopment 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, SaferDevelopment 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 Ending Development 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 HealthDevelopment 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 Prosperity Development 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.
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.
The transition to a green economy has reached a crossroads: while multilateral global initiatives have been long-running and complex, the idea of a green economy still seems fragile and achieving it far from certain. In the face of the ravages of the global economic crisis that has raged since 2007/2008, countries are now trying to roll back their green pledges or slow the pace of transition.
This exposes a dilemma: a perception that a green economy is in conflict with economic growth, prosperity and the advance of human development, particularly in developing countries seeking to make rapid gains in reducing poverty and building a middle class, consumer society.
Three things need to be foremost in the minds of those who care about creating a global green economy in the 21st century: innovation in design, in market prices and in business models. I think these three factors will be the deciding elements in whether green technologies are taken up quickly and used by large numbers of people to improve their lives.
The green option needs to always be the more appealing, cheaper option that also improves living standards. Happily, many people are doing this all around the world – you just may not have heard of them yet (unless you are reading Southern Innovator magazine that is).
As editor of the magazine Southern Innovator since 2011, I have had the privilege to meet, interview and see first-hand green economy innovators across the global South and profile them in the magazine. What has stood out for me is this: the ones who have achieved sustainable success have put a great deal of effort into design – how the technology is made, what it looks like and how it is used, how efficiently it is made and distributed – while also thinking through the business case for their work and how to make it appealing to others.
We have tried to apply this thinking to the magazine as well, by using clear and modern design with bright, eye-pleasing colours, and by choosing to use 100 per cent renewable energy (much of it from geothermal sources) for the magazine’s design and layout and to have it printed on paper from sustainable forest sources.
The fourth issue of Southern Innovator (www.southerninnovator.org), on cities and urbanization, launched in October at the Global South-South Development Expo 2013 in Nairobi, Kenya. It profiles many practical initiatives and innovators that are currently building green homes, communities and even whole cities. The magazine’s fifth issue will focus on the theme of waste and recycling and hopes to be a one-stop source of inspiration to better use the finite resources of planet earth.
Good ideas are plentiful, but how to fund life-improving projects has always been a thorny issue. Judging how effective a project is can also be fraught with debate and contention. Over the past two decades, the number of NGOs in the global South has exploded (http://lboro.ac.uk/gawc/rb/rb144.html). The best of them offer the local knowledge and understanding required to make development gains. But unlike NGOs in the North, many lack the powerful fundraising capabilities of the big global NGO brands.
An exciting new initiative based in Germany, but already featuring hundreds of projects from across the South, is using the power of the internet to directly connect projects and donors.
Joana Breidenbach, an anthropologist, author and co-founder of betterplace.org (www.betterplace.org), says NGOs are emerging in India and other countries of the South to challenge the big Northern global NGOs.
“Why wouldn’t you want to donate to these Southern NGOs? There are more entrepreneurs and local approaches which are better.
“Betterplace gives local institutions a platform to express themselves.”
Started in 2007, betterplace is an online marketplace for projects to raise funds. It is free, and it passes on 100 percent of the money raised on the platform to the projects. The foundation that runs betterplace supports its overheads by offering additional services that people can pay for if they wish. It works in a way similar to the online marketplace eBay (http://www.ebay.com): NGOs post their project, set up an account, blog about their achievements and successes and needs, and receive donations direct to their bank account when they come in.
Breidenbach points out up to a third of any NGO’s income is spent on fundraising. In Germany, that represents more than Euro 1.3 billion out of over Euro 4 billion in private donations – money that could have gone directly into the hands of the people needing help.
With betterplace, donators can surf through the projects and pick the one they want. Already, more than 100 large corporations trawl through betterplace seeking projects to fund to meet their corporate social responsibility (CSR) obligations (http://en.wikipedia.org/wiki/Corporate_social_responsibility).
“I find it very exciting to introduce a good and innovative NGO to a corporate sponsor,” Breidenbach said.
Breidenbach says betterplace’s ultimate goal is “to transfer the donation market online.” It hopes to change the rules in donation and charity in the same way blogs and the search engine Google changed the way people publish and search for information.
“This provides better transparency, feedback,” Breidenbach said. “Now (with betterplace) donors and organizations can cut out the middlemen. A lot of established organizations do not like this too much.”
Over the past decade, new concepts like social entrepreneurs and venture philanthropy have emerged to straddle the delicate line between social good and private profit. Betterplace joins this wave of new thinking about how to do development better.
In the 20 months since betterplace went online more than 1,500 projects have joined. They are now averaging between 20 to 35 new projects joining every week.
Betterplace is a simple open-plan office on the top floor of a Berlin warehouse beside the city’s Spree river. The small team (http://www.betterplace.org/about_us/team) work on laptop computers. A blackboard on the wall details in bright colours a running tally of the projects that have joined.
Breidenbach gives the example of a mother in Cameroon who is using betterplace to raise the school fees for her children. The mother blogs about the children’s progress and has been able to raise the fees for a year and a half.
“People are now directly connected to somebody in need.”
“Right now the functionality (of the website) does not allow people getting in contact publicly and we want to enable this knowledge transfer in 2010. If you want to build a well in Cameroon then you could search for the best technology and to contact other people who are doing similar projects to learn from them.”
Success on betterplace is by no means certain. “The experience of the project managers has been as varied as development work is – some have done really well, raising thousands of Euros over the website – others have received no funding at all,” Breidenbach said.
But betterplace provides tools to give the projects the best chance possible. “Projects can present their work, breaking it down in a transparent way (in order to let supporters know exactly what is needed for their realization), there are sound payment processes in place and project managers can give feedback through their project blog, supporters can download project widgets etc., all supplied free of charge.”
Breidenbach has other tips for making betterplace work for a project: post details in English when creating a profile, break down the project into much smaller, low-cost goals (few people are willing to make large donations) – this also has the advantage of receiving payments straight away when they are small. Tell a good story about the project, and try and use actual testimonials from the people affected. Blog and update regularly with photos and videos to keep people engaged. Also avoid copying and pasting text from a previous grant application.
“We have the numbers to show that projects which give regular feedback and have a lively web of trust receive more donations than others, which are not very active.”
“Don’t think you can just go on to betterplace and the money starts rolling in,” said Breidenbach.
The betterplace platform places all projects seeking funds on the same level, allowing individuals and small NGOs to compete equally with the big, branded global NGOs with their websites and sophisticated fundraising operations.
“All the big NGOs have their own websites,” continues Breidenbach. “But it is the small initiatives that often don’t have a website or know how to use Pay Pal etc. (http://www.paypal.com). We are very useful for smaller NGOs.”
“Another big advantage is that we are a real marketplace: whatever your interests (as a potential donor), you will find a project tackling this issue on the platform.”
But what about fraud and people seeing betterplace as a coin-making machine rather than a way to make the world a better place?
“We have a feeling for dodgy projects. We check the IP address. We have a number of trust mechanisms in place (and are currently working on enlarging them). Thus projects on betterplace can create trust through their good name … But we also include something which I would call network-trust: In our web of trust different kinds of stakeholders of an organization or a project have a voice and can publicly state what they think of it. Thus beneficiaries of a project can say if the project has done them good or has been counterproductive, people who have visited the project on the ground can describe what they have seen etc. … we hope to give a much denser and more varied impression of social work and give donors (a terribly badly informed group of people), the basis for a much more informed choice.
“If a contributor to a project is dissatisfied with the project’s outcome … she can either directly contact the project manager via betterplace, or openly voice her concern on the project page for other potential donors to see her views.”
For now, betterplace is still only useful to people who have access to the internet and have a bank account (necessary for the money transfers). But in the future betterplace hopes to have mobile phone interactivity and more features to expand who they can reach.
“We are also re-working our site to make it more intuitive and easier to use for people without computer skills,” Breidenbach said. “In the pipeline is also a knowledge backbone, enabling people to access knowhow about development and social innovation issues and exchange views and experiences. This will be very useful for projects in the South as so many people are working on the same issues without knowing about it. They could learn a lot from each other, without the “help” of the north.”
With internet broadband in Africa set to take off, according to the report Africa Connect: Undersea Cables to Drive an African Broadband Boom (http://www.pyr.com/downloads.htm?id=5&sc=PR090309_INSAME1.6), even more people will soon be able to make the most of initiatives like betterplace.
Published: September 2009
Resources
1) CSR Wire: This is a news service with all the latest news, reports and events and where companies announce their CSR (corporate social responsibility) programmes and how much they are contributing. A great resource for any NGO looking to make a targeted appeal for funds. Website:http://www.csrwire.com/
2) Alibaba: Alibaba.com is an online marketplace started in China but is now global. It allows businesses from all over the world to trade with each other, make deals and find funding. Website:http://www.alibaba.com/
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.
“A few weeks ago, David South, Development consultant and author of UNDP’s Development Challenges, South-South Solutions Newsletter, came by the betterplace office to take a look at our work. When I asked him how he had come about betterplace.org, he answered: he found me on twitter! So much for the twitter-scepticts. Read the article about how we can Make the World a Better Place for Southern Projects. (As the UNDP always publishes the newsletter on its South to South Website only months later, here is the link via David South’s blog).”
David South Consulting 
You must be logged in to post a comment.