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Reality Television Teaches Business Skills in Sudan

By David South, Development Challenges, South-South Solutions

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.

With youth unemployment rates high around the world, it is clear many young people may never get the jobs they expect unless they start businesses themselves.

In 2013, 73.4 million young people were out of work, an increase of 3.5 million from 2007. A report by the International Labour Organization (ilo.org) found persistent unemployment around the world in the wake of the global economic crisis, a proliferation of temporary jobs and growing youth discouragement in advanced economies; and poor quality, informal, subsistence jobs in developing countries. School-to-work transition surveys of developing countries showed that youth are far more likely to land low-quality jobs in the informal economy than jobs paying decent wages and offering benefits.

High youth unemployment often has nothing to do with poor educational achievement (many unemployed youth have high school educations or university degrees), but is often caused by other factors, including lack of access to capital, rigid labour markets, skills mismatched to demand in the economy (for example construction and building trades), or a gap between personal aspirations and the true state of the country’s economic development.

But rather than despair, it is possible to show youth how to turn things around and use business skills to re-shape economies in their favor. Youth tend to bring to the economy energy and drive combined with new ideas and experiences calibrated to the demands of the 21st century. By harnessing this, youth can find a unique space in the marketplace. In turn, young people can lead in reviving damaged economies and making their countries wealthier and healthier. Many youth have grown up around the emerging digital economy and the use of mobile phones. Being comfortable with the 21st century digital economy will unleash many economic opportunities that favor youth.

The British Council says that “creative entrepreneurship is considered the most efficient model for youth in the developing world who are facing huge difficulties in finding employment”. The entrepreneurship or creative investment industry is one of the fastest-growing sectors in the world.

Understanding what works for youth business entrepreneurship has become a specialty in its own right. Using the media to teach skills and inspire youth to action is one proven approach.

One recent example is a successful television programme from the Republic of the Sudan. Called Mashrouy (mashrouy.com), it is modeled on reality TV programmes such as The Apprentice, which features serial U.S. entrepreneur Donald Trump (http://www.bbc.co.uk/programmes/b00q3fkq) and the BBC’s Dragon’s Den (http://www.bbc.co.uk/programmes/b006vq92), where contestants pitch their ideas to a panel of judges to see if they can get funding for their business idea.

In Mashrouy, 12 contestants battled it out to see who had the best business idea. They undertook various challenges and the original 12 were whittled down to three contestants. Live on air in December 2013, viewers voted for their favorite contestant and the winner (https://www.facebook.com/Mashrouy) received a prize of 200,000 SDG (US $35,211), while the second prize winner received 150,000 SDG (US $26,408) and the third prize winner received 100,000 SDG (US $17,605). All three were then taken to London in the United Kingdom to meet other creative entrepreneurs and receive valuable business advice.

The Sudanese show (http://sudan.britishcouncil.org/our-work/mashrouy) is supported by the British Embassy and the British Council, and is working with the Sudanese Young Businessmen Association and major Sudanese companies to spread the idea of entrepreneurship among the youth of Sudan.

Sudan suffered a brutal civil war on and off throughout the 2000s, leading to the partition of the original country into the Republic of the Sudan and the new nation of South Sudan in 2011.

Faced with Sudan’s serious youth unemployment – as high as 34 per cent – and a fragile economy, the TV show’s producers wanted to encourage youth to start businesses.

The contest was aimed at youth between 18 and 40 and appeared on the Blue Nile (http://bnile.tv/blue.html) channel.

“At a time of national economic hardship, it has kindled the imagination of Sudanese youth,” wrote journalist Isma’il Kushkush (https://twitter.com/ikushkush) in The New York Times.

For the show, a panel of experts picked 12 projects out of 2,500 applications. Each of the 12 finalists was given a chance to do a “pitch,” giving a quick summary of their business idea and trying to get the panel excited about the idea and its potential. The idea that generated the most excitement won.
The 12 pitches included an idea for an ostrich farm and a plan to export spicy peanut butter. The winner, 32-year-old Samah al-Gadi, wants to use a locally available weed-like river plant to make bags and furniture. She said she got up the courage to be on the show from a supportive mother.

“Amid ululations, screams and clapping, a jubilant Ms. Gadi raised both hands above her scarf-covered head, flashing victory signs,” The New York Times said. “Her mother, sitting at a dinner table, was brought to tears.”

The women-owned social enterprise Making Cents International (makingcents.com), based in Washington, D.C., USA, has been gathering resources on youth entrepreneurship since 1999. It has put together a custom “curricula to develop the mindset, skillset, and toolset that enable entrepreneurs and enterprises to participate in profitable markets; financial institutions to serve new populations; and individuals to obtain meaningful work”. This is available in 25 languages. It also hosts the Global Youth Economic Opportunities Conference in Washington, DC, held this year from 6 to 8 October 2014 (http://youtheconomicopportunities.org/conference).

Published: April 2014

Resources

1) Khartoum Teaching Centre: The British Council is a world leader in English language training and teaching. It offers general English courses for adult learners of all levels, totaling 60 hours of tuition over 10 weeks. Website: http://sudan.britishcouncil.org/learn-english/courses

2) Start-up Chile innovation fund: Start-Up Chile is a program created by the Chilean Government, executed by Corfo via InnovaChile, that seeks to attract early stage, high-potential entrepreneurs to bootstrap their startups in Chile, using it as a platform to go global. Website: startupchile.org

3) Global Youth Economic Opportunities Conference 2014: From 6 to 8 October Youth entrepreneurship conference in Washington, D.C., USA. Website: youtheconomicopportunities.org/conference

4) Making Cents International: The Youth Economic Opportunities learning platform is the first community of practice and knowledge exchange portal developed by and for the youth economic opportunities sector. Website: youtheconomicopportunities.org

5) Mongolian Rock Pop book: A book published by UNDP in the Mongolian language on how the country’s rock and pop musicians led on business innovation using creative marketing and publicity during the country’s turbulent transition during the 1990s. Website: http://tinyurl.com/p25scqq

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/

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Global South’s Middle Class is Increasing Prosperity

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

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).

According to the Organization for Economic Cooperation and Development (OECD), most of this growth will be in Asia and the region will soon make up 66 per cent of the world’s middle class. Historical experience shows that members of the middle class quickly become absorbed in spending their accumulated capital on housing, equipment, industry and business, health and education. In countries with a growing middle class, policy makers need to show a strong interest in creating stable economic conditions to encourage this expanding consumption and domestic demand, the OECD advises.

Growth of the world’s middle class took off after 2001, with an additional 400 million workers joining this group. The McKinsey group of consultants found the total number reached 2 billion in a dozen “emerging nations” in 2010, collectively spending US $6.9 trillion every year (McKinsey).

Forecasters predict a further increase in the middle class across the global South will bring with it a surge in consumption (a combination of spending and demand). Areas being highlighted by various studies and reports include China’s small and mid-size cities, other areas of East Asia and Africa.

Middle class spending in these dozen emerging nations could reach US $20 trillion during the next decade – twice the amount of consumption occurring in the United States right now (McKinsey).

The result is a re-shaping of populations, with growing numbers of people now neither rich nor desperately poor, but landing in the middle of the income distribution.

And local competitors in the global South are fighting hard for these consumers on their own turf.

The Hangzhou Wahaha (http://en.wahaha.com.cn/) beverage maker in China has been able to compete against multinationals such as Coca-Cola and PepsiCo, according to McKinsey. It has turned itself into a US $5.2 billion business using a multi-pronged strategy: targeting rural areas, catering to local needs, keeping costs low and positioning itself as the patriotic choice.

And this change is also occurring in Africa, where a growing middle class is fuelling sales of refrigerators, television sets, mobile phones, motors and automobiles across the continent, according to the OECD. In Ghana, for example, car and motorcycle ownership has risen by 81 per cent since 2006.

According to the African Development Bank (AfDB), Africa’s middle class has reached 34 per cent of the population, or 350 million people. In 1980, it was 126 million people, or 27 per cent of the population.

Countries with the largest middle classes in Africa include Tunisia and Morocco, while Liberia and Burundi have the smallest number of people in the middle class.

The economic growth that is fuelling this middle-class surge is coming from a combination of increasing investment in the services sector, the tapping of the natural resource sector and better economic policies in the past two decades. Africa’s middle class is driving growth in the private sector and boosting demand for goods and services, most often also provided by the private sector.

“The liberalization of African economies has resulted in improved efficiencies and led to a rapid growth in the service sector, which has spurred the growth of the middle class,” Lawrence Bategeka, a principal researcher at the Uganda-based Economic Policy Research Centre, told The East African newspaper.

How important the middle class is to increasing consumption levels can be seen in the cases of Brazil and South Korea.

According to the OECD, both countries had similar income levels and growth rates in the 1960s. But by the 1980s, high income inequality in Brazil capped the middle class at 29 per cent of the population. In South Korea in the 1980s, the middle class population reached 53 per cent. This larger middle class population enabled South Korea to switch from an export-driven growth strategy to domestic consumption.

While Brazil wasn’t able to do this at the time, it has since made impressive gains in reducing poverty – from 40 per cent of the population in 2001 to 25 per cent in 2009. This has seen the middle class grow to 52 per cent of the population and boosted domestic consumption.

While a rising middle class in the global South is good news for improving human development and living standards, the OECD found much of the new middle class was vulnerable and could easily slip out of that category. They also often lacked enough income to purchase more expensive durable goods such as automobiles (OECD Yearbook 2012).

The success of this fragile but growing middle class will be key to how well the global economy fares in the coming years.

A new report by the UN’s International Labour Organization (ILO) argues that the global South’s growing middle classes are just the thing to spur growth across the wider world economy.

“Over time, this emerging middle-class could give a much needed push to more balanced global growth by boosting consumption, particularly in poorer parts of the developing world,” said Steven Kapsos, one of the authors of the report.

In Indonesia, an example of the economic impact of the middle class trend in action can be seen in the surging life insurance business.

Association of Indonesian Life Insurance Companies (AAJI) chairman Hendrisman Rahim believes the growing middle class are potential customers for the country’s thriving life insurance industry.  “They are the ones who have the need to be insured and can afford to purchase a policy. Extremely rich people are financially capable [of buying], but may not have the need. Extremely poor people have the need, but require financial assistance to be insured,” he said to the Jakarta Post.

As the Indonesian middle class increases, the life insurance industry is expecting to see revenue rise by 30 per cent in 2013.

Published: February 2013

Resources

1) The $10 Trillion Dollar Prize by Michael J. Silverstein. Website: amazon.com

2) The Middle of the Pyramid: Dynamics of the Middle Class in Africa. Website: http://www.afdb.org/en/blogs/afdb-championing-inclusive-growth-across-africa/post/the-african-consumer-market-8901/

3) McKinsey Quarterly: Capturing the world’s emerging middle class. Website:http://www.mckinseyquarterly.com/Capturing_the_worlds_emerging_middle_class_2639

4) OECD Observer: An emerging middle class by Mario Pezzini. Website:http://www.oecdobserver.org/news/fullstory.php/aid/3681/An_emerging_middle_class.html