Tag: South-South News

  • Popular Chinese Social Media Chase New Markets

    Popular Chinese Social Media Chase New Markets

    By David SouthDevelopment Challenges, South-South Solutions

    SOUTH-SOUTH CASE STUDY

    China has a vast and growing market for the Internet and mobile devices. Over the past decade that market has been largely confined to China –  most businesses have had enough domestic demand and opportunities inside the country to keep them busy.

    But now companies in China’s dynamic Internet and mobile sector are seeking out new markets outside the country. Both online shopping service Alibaba (alibaba.com) and Weibo (weibo.com), the Chinese version of Twitter (twitter.com), are seeking to list on the New York Stock Exchange. The excitement this news has generated shows how many people want to get a piece of the large Chinese market for technology, social networks and online shopping. It is also sending a chill through America’s Silicon Valley – home to the country’s innovative high technology sector – that they are missing out on China’s fast-growing marketplace. Many American services are banned from operating in China. Even more worrying for Silicon Valley, these home-grown Chinese companies, with the market sewn up at home, are now set to compete globally for customers using their increasingly deep pockets.

    One example is Tencent (http://www.tencent.com/en-us/index.shtml), owner of popular Chinese social messaging application (app) Weixin (weixin.qq.com), known as WeChat (wechat.com) outside China. Used on mobile phones and smartphones, Weixin has gained 300 million users in just three years, becoming the dominant social messaging service in the world’s largest smartphone market. Its has been so successful that many rivals are trying to chip away at its customer base.

    Weixin, pronounced way-shin, allows smartphone users to send messages and share news, photos, videos and web links with friends. One of its selling points is its claim to not store messages on its servers.

    Building on its success in social networking in China, it is looking to expand in other markets, including Southeast Asia, Europe and Latin America. It also wants to grow its offerings in online payment and e-commerce.

    One factor in Weixin’s success is the ability to send messages by recording a voice message rather than just typing in characters: very useful for non-Latin script users, and especially for Chinese-language users, who use thousands of characters in everyday communication.

    One ambitious forecast claims Weixin could reach 400 million users and make US $500 million revenue within a year.

    Cosmetics marketer Jenny Zhao, who uses an iPhone 5, told The New York Times: “I’m probably on Weixin six hours a day. A lot of what I do revolves around it.”

    “I use Weixin every day,” said Zhang Shoufeng, a food and drinks seller. “My friends are on it and my boss is on it. We are talking about where to eat, where to hang out and where to meet for company conferences. This is how we communicate.”

    Analysts believe Weixin has benefitted from not having to compete with banned-in-China American company Facebook (facebook.com).

    “Even if Facebook had permission, it’s probably too late,” said Wang Xiaofeng, an analyst at Forrester Research. “Weixin has all the functionality of Facebook and Twitter, and Chinese have already gotten used to it.”

    Tencent is an example of a wider trend: As Chinese companies and offerings have become stronger, wealthier and more innovative, they increasingly look to build their customer base outside China.

    Founded in November, 1998, Tencent, Inc. has grown into China’s largest and most used Internet service portal. Its most popular services include QQ (QQ Instant Messenger), WeChat, QQ.com, QQ Games, Qzone, 3g.QQ.com, SoSo, PaiPai and Tenpay, as well as Weixin.

    The company claims to put innovation at the heart of its business, with more than half of its employees devoted to research and development. The Tencent Research Institute, established in 2007 with RMB 100 million (US $16 million), calls itself “China’s first Internet research institute, with campuses in Beijing, Shanghai, and Shenzhen.” It has patents for technologies it has developed for instant messaging, e-commerce, online payment services, search, information security, and gaming.

    Tencent was driven to innovate by a fear it could quickly become irrelevant in the information technology space. Weixin is also pioneering ways to book taxis, hotels and airline flights through the service and even ways to control home appliances.

    “Chinese Internet companies are no longer behind,” said William Bao Bean, a managing director at the venture capital firm SingTel Innov8 (http://innov8.singtel.com/). “Now in some areas, they’re leading the way.”

    Published: April 2014

    Resources

    1) Weibo: Sina Weibo is a Chinese microblogging (weibo) website. Akin to a hybrid of Twitter and Facebook, it is one of the most popular sites in China, in use by well over 30 per cent of Internet users, with a market penetration similar to what Twitter has established in the USA. Website: weibo.com

    2) Laiwang: A variation on the WeChat service, its biggest competitor. Website: laiwang.com

    3) WhatsApp: WhatsApp Messenger is a cross-platform mobile messaging app which allows you to exchange messages without having to pay for SMS. Website: whatsapp.com

    4) Southern Innovator Issue 1: Mobile Phones and Information Technology: Pioneering and innovative ways to deploy mobile phones and information technology to tackle poverty. Website: http://www.scribd.com/doc/57980406/Southern-Innovator-Magazine-Issue-1 and here: http://tinyurl.com/q6bfnpz

    https://davidsouthconsulting.org/2022/10/20/china-consumer-market-asian-perspective-helps/

    https://davidsouthconsulting.org/2020/12/10/china-sets-sights-on-dominating-global-smartphone-market/

    https://davidsouthconsulting.org/2021/03/20/computer-gold-farming-turning-virtual-reality-into-real-profits/

    https://davidsouthconsulting.org/2021/01/26/designed-in-china-to-rival-made-in-china/

    https://davidsouthconsulting.org/2022/10/26/tackling-chinas-air-pollution-crisis-an-innovative-solution/

    https://davidsouthconsulting.org/2020/04/17/virtual-supermarket-shopping-takes-off-in-china/

    Citation

    Qianyu, Ji (2014) “Exploring the Concept of QR Code and the Benefits of Using QR Code for Companies,” Lapland University of Applied Sciences, School of Business and Culture Degree Programme in Business Information Technology, 2014.

    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 2025

  • Cheap Indian Tablet Seeks to Bridge Digital Divide

    Cheap Indian Tablet Seeks to Bridge Digital Divide

    By David SouthDevelopment Challenges, South-South Solutions

    SOUTH-SOUTH CASE STUDY

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

    India faces an urgent problem: the country is falling behind others in the global South in access to the Internet. Based on 2009 data, there are 5.1 Internet users for every 100 Indians. This compares poorly with Brazil at 39.2 per 100 and China at 28.5.

    The challenge is to find inexpensive devices that allow people to access the Internet through mobile phone networks. With 37 percent of India’s 1.21 billion people living below the official poverty line – and some estimates placing the number at up to 77 percent – cheap devices are urgently needed to reach the poor. A study developed by the Oxford Poverty and Human Development Initiative (OPHI),  found eight Indian states account for more poor people than the 26 poorest African countries combined. The Indian states had 421 million “poor” people, compared to 410 million poor in the poorest African countries, it concluded.

    The World Bank recently criticised India for lacklustre results in addressing poverty levels.

    Five years ago, the Indian government launched a competitive search for an inexpensive device for the masses. The government has been supporting the development of these devices through its National Mission on Education through Information and Communication Technology (Sakshat) (http://www.sakshat.ac.in). It aims to link 25,000 colleges and 400 universities in India in an e-learning program.

    The motivation behind these attempts is a good one: to try and find an affordable device to bridge the digital divide (http://en.wikipedia.org/wiki/Digital_divide) and reach the majority of the population living on less than US $2 a day.

    But the search has had mixed results.

    Low points included a failed attempt to make a rival to the One Laptop Per Child (http://www.onelaptop.org) computer from MIT (Massachusetts Institute for Technology) with an Indian version selling 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.

    Another first stab at making a US $35 tablet computer 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.

    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 India recently relaunched what it is calling the world’s cheapest tablet computer, selling for US $35. It is called Aakash (http://www.akashslate.com) (http://www.aakashcomputer.co.in), meaning “sky” in the Sanskrit language, and is being sold as an e-learning tool to bridge the digital divide in the country.

    The utility of tablets (http://en.wikipedia.org/wiki/Tablet_personal_computer) and e-readers (http://en.wikipedia.org/wiki/Comparison_of_e-book_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.

    Aakash will be sold for US $35 to educational institutions and marketed for private sale for US $61 under the UbiSlate brand name (http://www.ubisurfer.com). It is also hoped the tablet can be sold in the UK and the USA.

    Jointly developed by engineers in India, Canada and the UK, it will be assembled at DataWind’s manufacturing plant in Hyderabad, India (http://datawind.com/products.html). Datawind also makes other low-cost, portable devices like the PocketSurfer3 (http://www.pocketsurfer.co.uk).

    The project is run by two Indian-born Canadians, DataWind chief executive officer Suneet Singh Tuli and his brother Raja Singh Tuli.

    Based in Montreal, Canada, DataWind bills itself as “a leading developer of wireless web access products and services.”

    Suneet Singh Tuli wants to sell 1 million tablets a month. The first 100,000 tablets are being bought by the Indian government and then sold to university students.

    The Aakash uses the Google Android operating system (http://www.android.com) and has a WiFi capability, 17.78 centimetre wide screen, two USB ports (http://en.wikipedia.org/wiki/USB) and battery that can last three hours. It can stream high-definition videos, read e-books and run Microsoft Windows Office applications.

    The components in the device are a mix, including parts DataWind has designed itself to save costs.

    “This is not a one-time opportunity,” Suneet Singh Tuli told the Toronto Star newspaper. “There are 2½ to 3 million students entering university every year, as well as 80 million students in Grades 9 to 12, and the government is very serious about making mobile products available to this age group.

    “I could tell you a romantic story about two Indian brothers who arrive in Montreal to get a great Canadian education, become citizens, and then go back to India to bring Internet to the masses,” says Tuli.

    “But the reality is, this is all about profit – my investors and board wouldn’t want it any other way.”

    To compare, the Amazon Kindle Fire device (http://www.amazon.com/Kindle-Fire-Color/dp/B0051VVOB2), which launched recently, sells for US $199 and has fewer features.

    “The rich have access to the digital world; the poor and ordinary have been excluded. Aakash will end that digital divide,” Kapil Sibal, India’s education minister told the Financial Times.

    India’s initiatives are heating up competition with the One Laptop Per Child project set up by MIT professor Nicholas Negroponte (http://one.laptop.org). The colourful OLPC laptop sells for around US $200, and 2 million have been distributed to Latin America, Africa elsewhere.

    While many companies and entrepreneurs are developing products for the poor and the bottom of the pyramid (BOP) markets, it is still a difficult thing to get right. A big issue is aspiration: consumers are still attracted to products they perceive as aspirational and quality, despite a higher price.

    “(Aakash) might suffer the Nano syndrome,” Shashi Bhusan, technology analyst at brokerage Prabhudas Lilladher, told the Financial Times, referring to the cheap made-in-India car that failed to catch on (http://tatanano.inservices.tatamotors.com/tatamotors). “It is always difficult to predict the market’s reaction to a product, but what we have learnt from the Nano is that people don’t want to buy the ‘car-like’ product, they want the real thing … I feel the same will probably happen with this ‘laptop-like’ product.”

    And others strongly disagree that gadgets can transcend the deep-seated social problems that need radical change.

    “It is charity of a very superficial nature,” said George Mathew, director of Delhi’s Institute of Social Sciences. “It has nothing to do with the structure and permanency of our society and our system – you have to work for systemic change.”

    Earlier this year an Indian company produced a rival to Amazon’s Kindle (http://www.amazon.co.uk/Kindle-Store/b?ie=UTF8&node=341677031). The Wink (http://www.thewinkstore.com/ereader/index) is designed to accommodate 15 common Indian languages, 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.

    As has been shown by the information technology experience in other countries, it is constant innovation and trial and error which will eventually create successes. But with persistence, this is one space to keep watching.

    Published: October 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.  

    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

  • African Fuel Pioneer Uses Crisis to Innovate

    African Fuel Pioneer Uses Crisis to Innovate

    By David SouthDevelopment Challenges, South-South Solutions

    SOUTH-SOUTH CASE STUDY

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

    Kenyan entrepreneur Daniel Mugenga has found a solution to the problem of high fuel costs for the transport sector in his country. He has been making money from turning waste cooking oil and inedible vegetable oil into biodiesel (http://en.wikipedia.org/wiki/Biodiesel). He then discovered that he could boost his production of biodiesel by using marine algae as a source for oil.

    According to the body that represents the algae fuel industry, Oilgae (oilgae.com), algae are “plant-like organisms that are usually photosynthetic and aquatic, but do not have true roots, stems, leaves, vascular tissue and have simple reproductive structures. They are distributed worldwide in the sea, in freshwater and in wastewater. Most are microscopic, but some are quite large, e.g. some marine seaweeds that can exceed 50 m in length.”

    The U.S. Department of Energy has been investigating algae as a fuel source since 1978, and it is being investigated as a potentially transformative fuel source around the world. His business, Pure Fuels Ltd. (http://www.purefuels.co.ke/), is currently seeking venture capital funding for expansion and innovation. Pure Fuels is “a commercial producer of biodiesel and also manufactures biodiesel processors, which we sell to budding entrepreneurs,” says Mugenga.

    The Pure Fuels website educates readers on biodiesel as well as offering opportunities for investors and news updates. Pure Fuels was registered as a business in Kenya in 2010.

    The business was born out of crisis: in 2008 there were frequent fuel shortages in Kenya and prices were volatile. That was bad news for Daniel Mugenga’s job, working for a transport company with a fleet of trucks. Rising or volatile fuel prices can destroy businesses in areas like trucking, where the biggest expense is fuel.

    Mugenga began to do research into fuel alternatives in the crisis and came upon biodiesel. He then set about training in how to produce biodiesel. A period of testing, trials and research ensued between 2008 and 2010, which enabled Pure Fuels to build confidence they had something that was high  quality. The company started producing 120,000 litres of biodiesel in 2010 and increased production to 360,000 litres in 2011 and 700,000 so far in 2012. In 2011, Pure Fuels had revenue of US $230,000 from selling biodiesel.

    “We started off using jatropha oil, but when its price went up it was no longer profitable,” Mugenga told the VC4Africa website blog. “Having invested in the machinery, we switched to the next quickest alternative which is used cooking oil. We source it from several of the tourist hotels along the Kenyan coast.”

    Turning to cooking oil for biodiesel at first was a good idea. The company was able to get enough waste cooking oil from Kenya hotels and tourist resorts to meet demand. But as demand rose, the thorny problem of Kenya’s tourism business being seasonal arose.

    “For about five months of the year, many hotels in Mombasa temporarily shut down or operate at lower capacity. Of course this is affecting the amount of waste cooking oil,” Mugenga said. This is where algae (http://en.wikipedia.org/wiki/Algae) comes in.

    Pure Fuels found a biotechnologist in Kenya to help develop a solution using algae as a source for fuel. While the company is keeping details of its innovation secret, it is currently hunting for investors to help increase the quantity of biodiesel it can make – and in turn, revenues.

    Investor funds would be used to import non-edible vegetable oil and also to continue the company’s work on extracting oil from marine algae.

    Pure Fuels make a bold statement on algae fuel development: it “may actually be Kenya’s next cash crop.”

    Pure Fuels sells several products: there is the biodiesel itself, as well as a processing machine called the GXP-200, which can turn customers into biodiesel manufacturers themselves. The company also builds large, industrial-scale processors that can produce between 1,000 litres and 5,000 litres a day.

    Pure Fuels currently sells fuel to truck, bus and tuk-tuk companies, and also operates biofuel stations.

    The firm has patented its biodiesel and makes all its fuel go through seven quality checks for purity. An in-house laboratory ensures adherence to international standards, and the company is certified by the Kenya Bureau of Standards (http://www.kebs.org/).

    Mugenga is a passionate advocate of biodiesel’s advantages: he believes it is cheaper, and better for engines and for the environment. He admits it does have a disadvantage: it gels below 13 degrees Celsius and must be mixed 50-50 with conventional diesel to stay fluid.

    Pure Fuels encourages others to use biofuels for business, throwing in a home training kit with the biodiesel processors it manufactures and sells, complete with DVDs, manuals and a business plan. The GXP-200 biodiesel processor was developed after years of experience, and Pure Fuels hopes it will be bought by people who then set up businesses – especially youth, women and the disabled. As a further incentive, Pure Fuels promises to buy the biodiesel produced. The GXP-200 was recently awarded “Most Innovative Product 2012” at a small and medium business entrepreneurs event in Nairobi.

    In Israel, there are a number of pioneers working on further developing algae as a biofuel source too. Isaac Berzin of Seambiotic (seambiotic.com) sees algae as a good source for biofuel because it does not compete with food crops like other biofuel sources (sugar, potatoes, corn etc.). Algae is among a group of so-called second-generation biofuels that includes jatropha, wood and castor plants.

    The disadvantage of plant-based fuel sources is they need arable land and water. This seriously holds back their ability to meet the world’s demand for fuel since they would just take up too much land and water. Algae takes up less space and produces a higher yield per acre than conventional crops.

    Seambiotic makes marine microalgae using the CO2 from electric power plant flue gas. It pioneered making large quantities of fuel algae in the United States, creating the first gallons of bio-diesel and bio-ethanol from marine microalgae.

    Seambiotic is also working on a US $10 million commercial microalgae farm in China, partnering with China Guodian (http://www.cgdc.com.cn/), one of the country’s largest power companies. Another Israeli company in this field is UniVerve (http://www.univervebiofuel.com/). Its CEO, Ohad Zuckerman, runs the10-person company in Tel Aviv, Israel. It is developing a new biofuel from a special strain of algae that can grow quickly in a wider range of temperatures.

    Published: July 2012

    Resources

    1) A website with all the details on biodiesel and how to make it. Website: http://www.biodiesel.org/

    2) How to make your own biodiesel. Website: http://journeytoforever.org/biodiesel_make.html

    3) Oilgae is the global information support resource for the algae fuels industry. Website: http://www.oilgae.com/

    4) Algae as a superfood and cancer-fighter: Chlorella. Website: http://en.wikipedia.org/wiki/Chlorella

    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

  • Poorest Countries Being Harmed by Euro Currency Crisis

    Poorest Countries Being Harmed by Euro Currency Crisis

    By David SouthDevelopment Challenges, South-South Solutions

    SOUTH-SOUTH CASE STUDY

    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).

    As an example, Kenya’s shilling currency has weakened and increased the cost of imports, leading to a surge in inflation, while the number of European tourists has declined, according to Business Daily.

    Raging since 2009 (http://www.bbc.co.uk/news/business-13856580), the eurozone crisis has seen several European countries struggling to pay debts built up during the boom years, and this has threatened the currency compact among countries that use the euro single currency (http://www.ecb.europa.eu/euro/html/index.en.html). Several countries have introduced harsh austerity measures to try and rein in the debts and stabilize economies while keeping countries within the eurozone.

    This has had the consequence of dramatically raising unemployment levels, reducing consumption of goods and services and increasing poverty rates in many European countries. Some governments have responded by reducing the amount of legal labour migration allowed into their countries.

    The study estimates that the euro crisis could amount to a loss of US $238 billion for poorer countries from 2012 to 2013 as aid, trade, investment and remittance payments sent home to relatives and friends are damaged by the crisis.

    This would particularly harm export-dependent, emerging-market countries. The study found demand was weakening for products from low and low-to-middle income countries. This would in turn harm growth in these countries. Growth in the past decade has helped many countries lift millions of people out of poverty and enabled the growth of new middle classes, who in turn use their rising incomes to purchase consumer goods and invest.

    The crisis will cause developing countries’ currencies to drop in value if they are pegged to the euro, and for countries to be economically harmed because of austerity policies in European countries, said the study’s author, Dr. Isabella Massa.

    “The EU remains the largest single export market for poorer countries, although it is the emerging BRIC economies which are their main source of imports.”

    The European Union (EU) (http://europa.eu/index_en.htm) is the biggest market in the world and the largest importer of goods from developing countries. The ODI report found a 1 per cent drop in global export demand has the knock-on affect of reducing growth in poor countries by 0.5 per cent. The countries most at risk from the crisis are Mozambique, Kenya, Niger, Cameroon, Cape Verde and Paraguay.

    For example, 17 per cent of Ivory Coast’s exports go to the EU. Mozambique sends 14 per cent of its exports to the EU and Nigeria sends 10 per cent.

    Tajikistan in Central Asia was the most highly dependent economy on remittance payments from its workers living outside the country to prop up its GDP (gross domestic product). Remittance payments from Tajik citizens outside the country made up 40 per cent of GDP.

    Liberia and the Democratic Republic of Congo were both heavily dependent on foreign direct investment (FDI) from Europe in 2010.

    Many countries have also grown used to strong demand for their resources in recent years as China has rapidly developed and urbanized, sucking in more and more resources from around the world, including sub-Saharan Africa.

    “Poor countries are vulnerable to the euro crisis not only because of their exposure (due to dependence on trade flows, remittances, private capital flows and aid) but also because of their weaker resilience compared to 2007, before the onset of the global financial crisis,” said Massa.

    “The ability of developing countries to respond to the shock waves emanating from the euro area crisis is likely to be constrained if international finance dries up and global conditions deteriorate sharply.

    “The escalation of the euro crisis and the fact that growth rates in emerging BRIC economies, which have been the engine of the global recovery after the 2008-9 financial crisis, are now slowing down make the current situation really worrying for developing countries.”

    Despite the gloom, there are many positive and powerful antidotes to this economic crisis, including rising South-South trade and innovation, which shows it is possible to reduce dependency on wealthy-developed countries alone for economic prosperity.

    Published: September 2013

    Resources

    1) UNRISD: United Nations Research Institute for Social Development: The United Nations Research Institute for Social Development (UNRISD) is an autonomous research institute within the UN system that undertakes multidisciplinary research and policy analysis on the social dimensions of contemporary development issues. Website: unrisd.org/

    2) The Global Urbanist: News and analysis of cities around the world: planning, governance, economy, communities, environment, international. Website: globalurbanist.com

    3) OECD: The global economic crisis is entering a new phase amid signs of a return to positive growth in many countries. But unemployment is likely to remain high and much still needs to be done to underpin a durable recovery. This website will track the recovery. Website: http://www.oecd.org/general/tacklingthecrisisastrategicresponse.htm

    4) African Union: This vision of a new,  forward looking, dynamic and integrated Africa will be fully realized through relentless struggle on several fronts and as a long-term endeavor. The African Union has shifted focus from supporting liberation movements in the erstwhile African territories under colonialism and apartheid, as envisaged by the OAU since 1963 and the Constitutive Act, to an organization spear-heading Africa’s development and integration. Website: http://www.au.int/en/

    5) Youth-Inclusive Financial Services (YFS-Link) Program website: The first space for financial services providers (FSPs) and youth-service organizations (YSOs) to gather, learn and share about youth-inclusive financial services. Website: http://www.makingcents.com/ourWork/yfsLink.php

    6) Triple Crisis Blog: Global Perspectives on Finance, Development and Environment: Website: http://triplecrisis.com/

    7) African Economic Outlook: A unique online tool that puts rigorous economic data, information and research on Africa at your fingertips. A few clicks gives access to comprehensive analyses of African economies, placed in their social and political contexts. This is the only place where African countries are examined through a common analytical framework, allowing you to compare economic prospects at the regional, sub-regional and country levels. Website: africaneconomicoutlook.org/en

    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