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Social Networking Websites: A Way Out of Poverty

By David SouthDevelopment Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

Social networking websites also known as, Web 2.0 – the name given to the new wave of internet businesses and websites such as YouTube and MySpace that are transforming the way people interact with the Web – has been dubbed the social web for its power to bring people together. The label has been derided as a marketing gimmick by some, but many argue there are a number of characteristics to Web 2.0 that make it something different and a valuable tool for entrepreneurs seeking ways out of poverty.

The new Web 2.0 applications offer many free software tools stored online, from accounting and business related tools, to new multimedia ways to communicate for free. Unlike Web 1.0 sites, which offered information to passive users, Web 2.0 sites allow interaction and comment. These qualities have meant Web 2.0 can be used to build communities and social and business networks. By being able to store vast quantities of information online, it becomes faster to work and reduces the painful delays brought on by slow connections.

All these new tools are making it easier and easier for entrepreneurs to work from home, in internet centres, or anywhere there is a wireless connection, and is slashing the costs of managing a business. All the applications are online so there is no need to be hidebound by one operating system or hardware capability. The number of internet centres has increased significantly all over Asia and Africa, bringing the power of Web 2.0 to millions more people.

Linking mobile phones and the internet is also remarkable. It is becoming more and more possible in Africa to send messages to weblogs via text messaging, to post photos and videos, or to stay connected with a community, advocacy or business group via messaging to its website.

“Web 2.0 is a pre-occupation of ours that can be beneficial in fighting poverty,” said Tobias Eigan, founder and co-executive director of Kabissa.org, a web portal dedicated to promoting Web 2.0 in Africa. “It is really relevant for Africa. It makes the internet a read and write function, it is more user-friendly – that dynamic is going to make a big difference. It is so much easier to upload content with Web 2.0. It will build the capacity of local institutions and society and that will improve the lives of people – it will be much easier to fight poverty with this connectivity.”

Two other champions of the Web 2.0 way out of poverty are Waleed al-Shobakky, science and technology reporter for alJazeera.net, and Jack Imsdahl, a consultant and technology commentator. While they admit subsistence farmers and the illiterate will not directly benefit, those who are students or are working in proximity to computers will definitely benefit. They point out how rapidly mobile phones have been taken up by the poor and that this is being driven by the new services they offer.

There are still profound obstacles to more rapid take-up, however. Internet connection speeds will have to get better and more will need to be invested in this area. Web 2.0 tools will also need to be adapted to local languages if they hope to get past those who speak major web languages like English.

Entrepreneurs in the global South can now easily sign up to a vast array of e-newsletters that are sent to email accounts and keep on top of trends and innovations in their field. The relative anonymity of these email lists mean subscribers are less likely to be judged on their physical circumstances.

Published: March 2007

Resources

Afriville is a Web 2.0 service and an African Caribbean social network started by two Nigerian web entrepreneurs in their twenties, Folabi Ogunkoya and Lawrence Bassey-Oden.

Afriville is a community website along the lines of the famous MySpace. Users are free to message and post profiles. The difference is that the user is able to choose how closed or open the networks are. The site features a state of the art music management system which allows African and Caribbean artists to get straight in touch with their fans.

“We have created a solid app(lication) with features that will give the big players a run for their money,” said Ogunkoya.

African entrepreneurs have already stepped in with other Web 2.0 offerings. These include: Mooziko.com (an African YouTube), Afribian.com (news sharing), Afriqueka.com (social networking), Yesnomayb (online dating).

Both Yahoo! And Google offer extensive free online tools for entrepreneurs and businesses that integrate seamlessly with their email services.

Kabissa: Space for Change in Africa: An online African web community promoting and supporting the transition to Web 2.0 services in Africa. Offers lots of opportunities to meet people throughout Africa and learn more.

Alexa: Here can be found a detailed break down by country in Africa of web use and site popularity and trends.

Digital Divide Network: A website linking together initiatives and offering opportunities to debate current issues and problems.

Global Voices: An initiative from the Reuters news agency to aggregate the global conversation online from countries outside the US and Western Europe.

Free Web 2.0 tools for entrepreneurs:

Wikis: Here is a detailed article on wikis – collaborative websites that allow authorised users to rapidly and easily change the content of pages – and a detailed list of free or low-cost wiki services.

>> Blogging (an online diary):

Blogger.com – A free, easy-to-use, online service owned by Google.

BlogPlanet.net – Blog from your mobile phone, free.

Blogsome.com – An easy-to-use, free service with good support for photos.

Movable Type – An open-source, free, easy to use, online publishing system popular with bloggers.

WordPress – Another easy, free, and popular online publishing system popular with bloggers.

>> Aggregators (these are programmes that gather links and resources off the web):

AmphetaDesk – One of the first news aggregators to really catch on, it’s still popular.

Bloglines – Allows bloggers and webmasters to search, subscribe to, publish, and share RSS news feeds online.

Del.icio.us – Aggregate content from your favorite Web sites and share them with others.

Feed Demon – The news you want delivered to your desktop.

Technorati – A real-time search engine that keeps track of what is happening in the world of blogs.

Techsoup.org is an excellent resource for all the latest developments in Web 2.0 and how to access free or low-cost resources. Being based in the US, it gets the inside scoop on cutting edge developments in Silicon Valley.

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

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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 2023

Categories
Archive data Development Challenges, South-South Solutions Newsletters digital ID Southern Innovator magazine

The e-Reader Battle Reaches India

By David SouthDevelopment Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

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.

A good example is the very popular e-reader from Amazon, the Kindle (http://en.wikipedia.org/wiki/Amazon_Kindle). The latest version boasts the ability to store up to 3,500 books.

The utility of these e-readers for people in the global South is clear: they can enable people to bypass the lack of local library facilities to store vast, personal archives of books. This is a powerful educational tool: imagine a village doctor with easy access to thousands of medical texts and papers, or a child preparing for university exams no longer having to worry they can find study texts. It also is a cost-effective way to publish in many local languages and break the stranglehold English-language publishing has had on delivering e-books.

Over the past decade, India has developed a reputation for its fast-growing information technology industries, making software and providing IT-related services.

Now India has produced a rival to the Kindle. The Wink (https://www.thewinkstore.com/ereader/index) is designed to accommodate 15 common Indian languages. (The 2001 census in India found 29 languages with at least a million native speakers). It comes in an eye-catching design and is complemented by a sleek website stuffed with e-books ready for download. The entire package is very well-thought-out and marketed.

The Wink was developed and built by EC Media International and retails, according to its website, for Rs 8,999 (US $200). It looks similar to the Kindle, but where the Kindle is grey the Wink is white. This Indian rival has some impressive capabilities: it can not only support 15 Indian languages, it can also access an online library of more than 200,000 book titles. They range from arts and entertainment to biography, newspapers and science topics. There is also a large archive of free books for download.

But it has come in for criticism for its price, which some say is far too high for the Indian market.

The Tech 2 website also criticized the Wink for its “frustrating performance, which actually detracts from the pleasure of reading.” Overall it found the reader “a decent first attempt, but there are many issues that need to be ironed out.”

It can be a rocky road to information technology hardware innovation. And maybe this first attempt at a made-in-India e-reader still has a way to go to get it right. There have been a number of high-profile, over-hyped disappointments in the last few years. One was the pledge to make a US $35 tablet computer. The project was launched in 2010 with much fanfare, but by January 2011 the Indian government had dropped manufacturers HCL Technologies for failing to honour its 600 million rupee (US $13 million) contract.

It joins the disappointing attempt at rivalling the One Laptop Per Child (www.onelaptop.org) computer from MIT (Massachusetts Institute for Technology) with an Indian version for US $10. What was offered instead in 2009 was a device with no screen or keyboard, requiring an additional laptop and paper to access its stored files. It was also made in Taiwan, rather than India.

What these first steps show is the complexity of hardware development and how challenging it is to get the user experience right for customers while keeping the price affordable.

But from these tries comes experience, and in time better products will be developed as lessons are learned.

Published: June 2011

Resources

1) How to build your own personal computer: This guide helps to demystify computing hardware and shows how to build a computer at home. Website:http://www.buildeasypc.com/

2) Hardware design and architecture: An archive of free e-books on all aspects of computer hardware and architecture design. An outstanding resource to get anyone started in computer engineering. Website: http://www.e-booksdirectory.com/listing.php?category=38

3) Jonathan Ive is the man behind the highly successful and user-friendly modern design that has turned the Apple computer brand into such a global success story. He provides tips on how to design usable computer hardware and shares the secrets of his success. Website:http://www.wired.com/culture/design/news/2003/06/59381

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

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This work is licensed under a
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ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2023

Categories
Archive Development Challenges, South-South Solutions Newsletters

Indians Fighting Inflation with Technology

By David SouthDevelopment Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

Despite the global economic downturn, many countries of the South are seeing rapid economic growth. That can have a down side: inflation (http://en.wikipedia.org/wiki/Inflation). Inflation can be caused by variety of factors – too much money chasing too few goods, deliberate government policies to increase demand for goods and services, environmental disasters creating scarcity, or poor investment in infrastructure straining against rapid economic growth. But when it gets out of control for life-essential goods like food, then people need solutions to survive.

In India – home to more poor people than all of sub-Saharan Africa – rising inflation has prompted the Reserve Bank of India to raise interest rates, which in turn leads to more expensive loans and credit, just when funds need to be borrowed to invest in infrastructure improvements for the country.

India’s finance minister, Pranab Mukherjee, has warned that the rising interest rates necessary to fight inflation will hurt India’s economic growth.

India has seen inflation jump from single digits in 2008 to double digits this year. Consumer price inflation for industrial and farm workers in India rose by 14 percent, government data show – up from 5.51 percent in January 2008 (It hit 16.22 percent in January 2010, according to the Indian Ministry of Labour).

And it is the poorest who suffer the most from inflation. Inflation in India has led to worker protests for wage increases and rising prices for essentials like food: a life-and-death issue for the poor.

Other countries across the South are also experiencing high inflation, the worst being Venezuela. India has the highest inflation after Venezuela’s 32 percent rate, according to Bloomberg data compiled from 82 countries.

The UN’s trade and development body, UNCTAD, has called for new measures to tackle inflation. “In the past few decades, monetary policies have been more and more gradually based on inflation targeting,” said Supachai Panitchpakdi, secretary-general of UNCTAD. “I see there should be other instruments to contain inflation rather than monetary policies.”

Frustration with inflation has even been taken up by India’s vibrant entertainment industry, Bollywood (http://www.bollywoodworld.com).

The song “Mehangayi Daayan” (“The Inflation Witch”) in a film produced by acting star Aamir Khan has the lyrics, “my husband’s earnings are good but his second wife — inflation — is eating them up.”

Indian marketing consultant Suhasini Sakhare (http://www.suhasinisakhare.com/index.php?option=com_content&view=section&layout=blog&id=2&Itemid=12) from Nagpur has called for Indian consumers to be empowered, just as farmers are with the successful e-Choupal web portal.

E-Choupal (http://www.echoupal.com) has developed a reputation for both controlling prices and increasing incomes for poor farmers. Started in 2000 by the major Indian company ITC Limited (http://www.itcportal.com), it links farmers to the latest prices for products including soybeans, wheat, coffee and prawns.

E-Choupal works through computers set up in rural areas. It has built one of the largest internet initiatives in rural India, reaching 4 million farmers in 40,000 villages. It does this through 6,500 computer kiosks located in the homes of farmer-coordinators called Sanchalaks. The kiosks offer weather reports and the latest market prices, important scientific developments, risk management advice, and help with sales and marketing. The computer is in the Sanchalak’s house and connects to the internet by telephone. Each computer can serve around 600 farmers in the surrounding area.

Indian agriculture suffers from being very fragmented, with poor infrastructure and an army of middlemen looking to get the best price for themselves at the expense of farmers and consumers. Indian farmers are heavily in debt and plagued by a very high suicide rate as a result (http://en.wikipedia.org/wiki/Farmers’_suicides_in_India). This agricultural crisis has a direct impact on India’s ability to meet its development goals and lift many millions more out of poverty in the future.

E-Choupal sees itself as creating a “virtuous circle of higher productivity, higher incomes, enlarged capacity for farmer risk management, larger investments and higher quality and productivity.”

E-Choupal has increased yields for farmers, reduced transaction costs, and raised the quality of output leading to rising farmer incomes.

It is clear from experience in other countries that better access to price information helps control price inflation. E-Choupal has the advantage of providing both information and the means to access it: a big problem in rural India. Most poor Indian consumers do not have access to the internet and make food purchases from small vendors, whom they must trust to set the right price for products.

Online, there are plenty of price comparison websites for Indians (http://explore.oneindia.in/internet/portal/comparisonsites): computers, electronics and household goods (http://compareindia.in.com) for example. But this is of no use to poor Indians without access to the information.

Economic commentator Paranjoy Guha Thakurta told AFP of the political dangers: “There’s a huge amount of discontent and anger across the country and certainly among the poor. Speak to the person on the street and their biggest problem is inflation.”

Published: August 2010

Resources

  • Olam: A global food supply company in ‘agri-products’ that got its start in Nigeria. It shows how a Southern brand can grow and go global, and overcome the difficulties of cross-border trade. Website: www.olamonline.com
  • Model Village India: A pioneering initiative is reviving impoverished rural villages. Drawing on self-organizing methods used in India since 1200 BC, the Model Village India is based around India’s democratic system of Panchayats: a village assembly of people stemming back to pre-colonial times. Website: www.modelvillageindia.org.in
  • e-Choupal: Hope or Hype? By Neeraj Dangi and Harjit Singh, American Journal of Economics and Business Administration 2 (2): 179-184, 2010. Website: http://tinyurl.com/3682r3p
  • A book on the consequences of inflation when it gets out of control: When Money Dies: The Nightmare of the Weimar Hyper-Inflation by Adam Fergusson. Website: http://www.amazon.co.uk/When-Money-Dies-Nightmare-Hyper-Inflation/dp/1906964440
  • The American National Inflation Association: A website with educational videos and resources on inflation. Website: http://inflation.us

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

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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 2023

Categories
Archive Development Challenges, South-South Solutions Newsletters Southern Innovator magazine

Wireless Internet Culture Helping Zimbabwe Economy Recover

By David SouthDevelopment Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

Zimbabwe’s turbulent descent into hyperinflation at the beginning of the 2000s – and the food crisis it caused as prices soared and purchasing power shrank – captured the world’s attention. From refugees fleeing the country to widespread hunger and poverty, the impact of hyperinflation was stark and distressing. Since the country’s economy stabilized in 2009, various signals are showing that Zimbabwe is slowly making its way back to growth and stability.

The scale of the hyperinflation is summed up by Zimbabwe’s eye-popping inflation rate. By December 2008, inflation was estimated at 6.5 quindecillion novemdecillion percent (or 65 followed by 107 zeros — 65 million googol) (Forbes Asia).

One recovery strategy is emerging in Zimbabwe’s booming eating and drinking establishments. It seems the urge to socialize and network has become the source of economic vitality where so much else has been damaged.

The proliferation of coffee shops with wi-fi (wireless internet access) (http://en.wikipedia.org/wiki/Wi-Fi) has spawned a new, connected business culture that is flexible and entrepreneurial.

Zimbabwe’s unity government was formed in September 2008. By the beginning of 2009, the government relented on the crippling hyperinflation and allowed business to be conducted in the US dollar. This made it possible to save again and do business with greater predictability. At this time, the country had the world’s highest inflation rate and the central bank printed a 100 trillion Zimbabwe dollar note.

The economic result of greater stability has been new shopping malls opening and a boom in new eating and drinking establishments.

During the hyperinflation, eating out was the last thing on most people’s minds. Just surviving was the paramount daily task.

In the capital, Harare (http://en.wikipedia.org/wiki/Harare), the shopping mall Sam Levy’s Village (http://samlevysvillage.com), in the prosperous Borrowdale area of the northern suburbs, is full of thriving coffee shops, restaurants and pubs.

Outside of the wealthy enclaves, coffee shops have sprung up in the city’s art gallery, in sports clubs and a local supermarket chain.

While the coffees are still expensive relative to local wages, the Zimbabwe Online Hotspots (ZOL) (http://www.zol.co.zw) in the coffee shops have proved a big attraction. Most people in Zimbabwe have unreliable or non-existent electricity or, if lucky, poor-quality phone and internet dial-up in their homes.

ZOL Hotspots typically offer the first half hour of internet use for free. To surf longer, users must buy a voucher.

The damage done to the economy from hyperinflation and the political crisis means the country is still on the mend. But people have now resorted to what they call “networking,” according to Bryony Rheam in the Daily Telegraph newspaper. The functioning economy is all about making deals. And coffee shops with wi-fi are the perfect place to meet with a potential business partner.

But while the coffee shops are buzzing with people doing business, the proprietors still need to work out how to make better profits. Sales are still poor as people are mostly fixated on the wi-fi. One owner told the Telegraph: “We need to start charging people who sit here all day surfing the net.”

It is the restaurants who seem to be enjoying the boost in incomes and better spirits after the economic troubles. Zimbabwe’s black middle class are enjoying big occasions and celebrating with friends and family in restaurants.

“We went without for so long, that a lot of people almost see it as their right to spend money on eating out,” one patron told the Telegraph.

More good news has come from outside investors as well: Amstel Securities NV (http://www.amstelsec.com), based in Amsterdam, Netherlands calls Zimbabwe’s economy “the final frontier market in Africa”. It believes the country has the potential to grow its GDP (gross domestic product) to US $12 billion by 2015. The International Monetary Fund says the economy jumped from US $4.4 billion in 2009 to US $9 billion now.

In Amstel Securities’ report, it pegs the dollarization of the economy as the reason for stability: “These improvements have made Zimbabwe a much more vibrant economy with good further recovery potential.”

And these good vibes are contagious: it has been reported that the American hamburger chain McDonald’s is revisiting the idea of setting up in Zimbabwe. McDonald’s is currently present in a handful of African countries: South Africa has 132 restaurants.

Published: September 2010

Resources

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

Creative Commons License

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

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

© David South Consulting 2023