“I think you [David South] and the designer [Solveig Rolfsdottir] do great work and I enjoy Southern Innovator very much!”
Ines Tofalo, Programme Specialist, United Nations Office for South-South Cooperation
Southern Innovator in Tianjin, China.Issue 5 of Southern Innovator at the Global South-South Development Expo (GSSD Expo) 2014 held in Washington, D.C.Volunteers in Nairobi, Kenya pose with Southern Innovator Issue 4 at the Global South-South Development Expo (GSSD Expo) in 2013.Southern Innovator Editor and Writer David South in Australia.Southern Innovator Graphic Designer and Illustrator Sólveig Rolfsdóttir in Iceland.
Some comments that have come in so far about SI’s first issue:
“What a tremendous magazine your team has produced! It’s a terrific tour de force of what is interesting, cutting edge and relevant in the global mobile/ICT space… Really looking forward to what you produce in issues #2 and #3. This is great, engaging, relevant and topical stuff.”, to “Looks great. Congratulations. It’s Brill’s Content for the 21st century!”
What they are saying about SI on Twitter: From @CapacityPlus Nice job RT @ActevisCGroup: RT @UNDP: Great looking informative@SouthSouth1 mag on South-South Innovation; @UNDP Great looking informative @SouthSouth1 mag on South-South Innovation; @JeannineLemaireGraphically beautiful & informative @UNDP Southern Innovator mag on South-South Innov.
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 pace of change in information technology in the South is impressive, and nowhere has it been more rapid than in the take-up of mobile phones. In the past three years China has become the world’s largest exporter of information and communications technology (ICT), and home to the same number of mobile-phone users (500 million) as the whole of Europe. According to India’s telecoms regulator, half of all urban dwellers now have mobile- or fixed-telephone subscriptions and the number is growing by eight million a month. In Tanzania, mobile phone use grew by 1,600 percent between 2002 and 2008. In Nigeria it grew by almost 7,000 percent over six years, from 5 percent of the population 140 million in 2002, to a predicted 34.3 percent by the first quarter of this year.
But it is the Philippines that has become a global leader in mobile phone commerce. A whole panoply of banking tasks can now be done by mobile phone: transferring funds from one person to another, making small purchases, or paying fees.
“The most significant lesson learned so far,” said Shawn Mendes, lead author on a report titled The Innovative Use of Mobile Applications in the Philippines Lessons for Africa. “Is that m-Banking, rather than more altruistic applications such as m-Health and m-Education, has delivered the greatest benefits to people in developing countries.”
Access to basic banking services is vital for the world’s poor: The Consultative Group to Assist the Poor (CGAP) found that over 3 billion poor people lack access to even the most minimal banking services to manage their lives.
But mobile phones have come to the rescue as the fastest growing consumer product in history. Portio Research estimates that between 2007 and 2012 the number of mobile subscribers will grow by another 1.8 billion, mostly in emerging economies like India and China.
The Philippines is not alone in introducing so-called m-Banking (mobile phone banking) Africa’s leaders include the Democratic Republic of the Congo (CelPay), Kenya (M-PESA), South Africa (MTN MobileBanking and WIZZIT) and Zambia (CelPay).
“Safari-Com’s M-Pesa in Kenya has grown rapidly from start-up in early 2007 to well over 1 million accounts today,” said Mendes, the report author. “In May of this year Vodacom launched M-Pesa in Tanzania for their 4 million subscribers in that country. I expect very rapid growth of this service in Tanzania where less than 10 per cent of the adult population have conventional bank accounts. There are numerous other examples such as CelPay in Zambia and the Congo but I have been watching the success of M-Pesa in East Africa most closely.”
But the Philippines has taken m-Banking the furthest, with two great models for other countries: G-Cash and Smart Money. And the country has shown that it is possible to make these services attractive to the poor, not just the wealthy.
A combination of a good regulatory environment and an atmosphere of innovation brought mobile phone costs down, and made this possible. The mobile phone innovations were also successful because they mimicked existing consumer habits of the poor, piggy-backing on the extensive retail network of small village shops or “sari sari” stores. Poor Filipinos usually buy “tingi” or “sachets” of products like shampoo, fish sauce or soap. And it is in these shops that credit top-up centres were set up and prepaid phone cards sold.
Cleverly, mobile phone operators in the Philippines at first offered free SMS (short message service) text messaging. This was key to how m-Banking took off. As Smart Money’s Napoleon Nazareno said: “there must be an existing SMS habit.”
This should bode well for Africa, where an SMS habit has taken hold because it is so much cheaper than voice calls. Another important habit was prepayment. People learned how to use prepay cards, call numbers and how to enter codes into phones to purchase credits. They learned how to check their credit balance and to electronically load credit on to their phone. This habit made m-Commerce much easier and fuelled its growth.
In South Africa, m-Banking services are revolutionizing daily life. Hair salon owner Andile Mbatha in Soweto used to have to travel for two hours by minibus to a bank to send money to his relatives. But by setting up a bank account with a service called Wizzit, he no longer needs to keep stacks of cash in his salon (and risk robbery), can send money to his sister in Cape Town by phone, and receive payment for hair cuts by phone from his customers. “This has taken out a lot of stress,” said Mr Mbatha.
For Southern entrepreneurs looking to get the most from mobile phones, another recent development will help. Mobile phone companies are following developments with computers and turning away from using only proprietary software, to allowing open source software. Over the next six months, this will mean small-scale entrepreneurs can get in on making applications for mobile phones on a massive scale. Two software companies are now involved: Symbian, which provides the operating system for most of the new generation mobile phones with web access, and Google’s Android open source operating system for mobiles. In Sub-Saharan Africa and East Africa, these applications will help to bypass the lack of internet bandwidth.
In India, poor rural farmers are using mobile phone text messaging to get an advantage over the commodity markets. With so-called “agflation” and “rising prices for food ” it is crucial farmers keep on top of fluctuating commodity prices. Over 250 million Indians rely on farming for survival. But the pressure on farmers is severe and suicide rates are high.
Banana farmer Kapil Jachak is using a text messaging service to get the latest on the weather and daily market prices. The service, Reuters Market Light, costs a dollar a month. It’s a for-profit business venture by the global business news service, but helps farmers make money too. It already has 15,000 customers signed up.
This market knowledge gives the farmers a huge advantage when they compete with the traders in the wholesale markets of the city of Pune. “By getting the weather reports we can see exactly how much water our banana plants need,” said Kapil to the BBC. “I keep my cost down, and get the best crop I can.”
“This has increased my profit. I don’t have to make some headache, and go to any market, any shopkeepers, and wholesalers. I can do my marketing easily and get more and more money.” The service has already armed him with the knowledge to fight off banana stem weevils when they were attacking crops. The text recommended a pesticide.
Published: July 2008
Resources
Twitter: a way to communicate linking mobile phone communications of up to 140 characters with the web. These free applications help users to set up the service and link with all their other internet applications. Website:http://twitter.pbwiki.com/Apps
The innovative use of mobile applications in the Philippines Lessons for Africa: A paper from the Swedish International Development Cooperation Agency (Sida) on mobile phone innovation. Website:http://www.sida.se/sida/jsp/sida.jsp?d=118&a=33306&language=en
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.
Two development goals are being achieved with one innovative business in Brazil. By using natural rubber tapped from trees in the Amazon rainforest to make condoms, Brazil is able to afford the cost of distributing condoms to tackle its HIV/AIDS crisis. Brazil currently imports more than 120 million condoms every year from China, Republic of Korea and Thailand, making it the world’s biggest single buyer of condoms. The government gives them away for free as part of a national campaign to combat HIV. More than 620,000 people in Brazil are living with HIV out of a population of more than 186 million (UNAIDS, 2005).
The Natex company, co-owned by the public health ministry and the north-western state government of Acre, has established a factory to turn rubber from the world’s biggest rainforest into condoms. The business has created 500 jobs at the factory and 150 jobs for the local indigenous population – the Xapuri – who are traditional rubber tappers.
The factory hopes to produce 100 million condoms a year from local rubber – just 20 million shy of all the condoms the country currently has to import – and could even reach 270 million at full capacity.
“This product will allow people to make love with security and to better plan their futures,” said Raimundo Barros, vice president of the local agricultural association.
The 15,000 Xapuri people who live on the Chico Mendes reserve – named after a conservationist and rubber tapper murdered by ranchers in 1988 – tap seringai trees, which produce rubber that is said to be a more effective barrier to the transmission of sexually transmitted diseases (STDs), than synthetic rubber condoms.
The factory’s 500 employees will earn a total of Reais $2.2 million (US $1.3 million) while the tappers will see their income increase by 250 per cent as demand goes up for the rubber, according to Natex.
“Because of this I’ve managed to buy a few cows and give my family a better life,” rubber tapper Hugo Paz de Souza, 43, told local newspaper Pagina 20. Paz de Souza said the factory will double his income to US $394 a month.
The fact the trees will be saved because of their value as sources of rubber is a great boon to the world’s environment. The trees in the Amazon rainforest – the “world’s lungs” as some call it – face the threat of being chopped down to make way for Brazil’s booming agricultural economy. Official figures released in January 2008 showed that between August and December 2007, about 2,700 square miles were chopped down illegally in the Amazon rainforest. It was the first increase in deforestation after three years of declines and coincided with a rise in global food prices.
Marina Silva, Brazil’s environment minister, told the Guardian newspaper the Natex condom would help create “a new pattern of production and a new process of inclusion that would value the forest being left standing”.
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.
Mexico is home to the second largest rainforest in the Americas after the Amazon jungle. But the country’s forests face serious threats from logging, cattle ranching and agriculture. As much as 80 percent of Mexico’s original forests have already been lost.
A group of Mexican farmers is now using sophisticated product marketing to preserve their income, and the 1.3 million hectares of rainforest as well. They are called chicleros and they harvest the gum needed to make natural chewing gum, a once-booming industry laid waste by the arrival of synthetic chewing gum in the 1950s. Their story is an excellent example of how a declining industry can turn things around with a smart plan and sophisticated marketing.
A collection of 56 cooperatives comprising 2,000 chicleros – called Consorcio Chiclero – is now making, marketing and selling its own brand of chewing gum: Chicza (http://www.chicza.com/index.php). The chicleros are supporting a community of 10,000 people across the three states of Yucatán, Campeche and Quintana Roo.
Gum has been chewed in Mexico to clean teeth as far back as the ancient Mayan people in the second century AD.
The gum harvesting business was dying out and young people, put off by the low pay, were leaving for jobs elsewhere. The adminstrators of the chiclero co-operative created Chicza Rainforest Gum brand to save the industry. They made a deal with Britain’s Waitrose supermarket chain, which specializes in fair trade products, and the gum is being launched in 100 stores.
The brightly coloured packages of chewing gum are now being sold as organic and a way to preserve the forest. Frustrated by the decades of decline and attendant poverty and community decay, the chicleros decided to take matters into their own hands. Five years ago they decided to avoid the middlemen who would buy their raw gum products, and instead manufacture and market the chewing gum themselves. And it is paying off: by adding value to the raw product, each farmer’s income has grown six times higher than he would earn as a mere provider of raw material.
The gum comes in three flavours: wild mint, heirloom lime and spearmint. Future flavours will blend tropical fruits, herbs and spices.
The Consorcio Chiclero coordinates the production, the logistics, the trade and the finances for the manufacture of gum from the chicozapote tree (Manilkara zapota).
Certified organic, the Chicza gum is completely natural and free of synthetic ingredients and also biodegrades when it is discarded – a boon to city governments who hate the mess and cost of traditional gum left on sidewalks.
The farmers work in the rainforest at the southern end of Mexico’s Yucatan peninsula (http://en.wikipedia.org/wiki/Yucat%C3%A1n_Peninsula), bordering Guatemala and Belize. It is a place with one of the most bio diverse ecosystems in the world, and an environment the farmers are in harmony with. The chicle gum (http://en.wikipedia.org/wiki/Chicle) is harvested from chicozapote trees – some living for more than 300 years – by hacking z-shaped cuts into the bark of the 100 foot trees. The harmless cuts zig zag down the tree and a bucket is placed at the bottom to collect the dripping sap.
Once collected, the sap is boiled, dried and made into a sticky paste, which is then kneaded and shaped into bricks called marquetas. Each marqueta is carefully marked by its maker. Since the sustainable management of their rainforests is certified by FSC (Forest Stewardship Council) (http://www.fsc.org/), these marks contain relevant information that tells the name of the chiclero who harvested it, and the exact location of the harvested tree in the rainforest. Few products offer such perfect traceability.
“I started following my dad around the rainforest when I was 10 and working when I was 12,” farmer Porfirio Banos told The Guardian newspaper. “I am a chiclero to my core.”
Working in a remote area of rainforest jungle with just spider monkeys for company, the chicleros are paid by the amount of chicle harvested
“We don’t kill the trees like farmers do when they clear land to grow corn or graze cattle,” says Roberto Aguilar, 60. “We leave a wound, it’s true, but eight years after it is healed and producing chicle again.”
The chicleros face two main risks while doing the job: falling from the trees if their rope gives out; and being bitten by poisonous snakes.
Chicle was once the basis of all commercial chewing gum. Beginning in New York 141 years ago, it was the only source for chewing gum until the 1950s, when synthetic substitutes destroyed the industry.
It was the economic desperation of a Mexican general, Antonio Lopez de Santa Anna, living in exile in the United States in 1869, that gave birth to gum-chewing as a global practice. Working with a local inventor, Thomas Adams, he tried to use the chicle to make a rubber substitute. But when this failed, Adams added sugar and flavouring, making chewing gum.
Apart from being a great chew, the natural gum’s unique selling point is saving money: local governments tight for cash are looking for other ways to deal with the menace of chewing gum on pavements. A small fortune is spent every year trying to keep streets clean of gum. The British alone spend over UK £150 million every year trying to clean their streets of chewing gum.
And despite the global recession, the chicleros are optimistic they can do well: during the Great Depression of the 1930s, chewing gum was an affordable treat and sold well.
Published: April 2009
Resources
Design that Matters: Timothy Prestero, CEO (Cambridge, MA): Design that Matters (DtM) was founded to help social enterprises in developing countries scale up enterprises more quickly by providing them access to better products designed specifically for their business needs. Website:http://www.designthatmatters.org/
The Fairtrade Labelling Organization sets the standards for fair-trade and is the place to go to receive official certification. Website:www.fairtrade.org.uk
International Cooperative Agricultural Organisation: The ICAO is the democratic organisation representing agricultural co-operatives and farmers worldwide. Website:http://www.agricoop.org/
Waitrose Supermarket: It regularly sources fair trade and organic food products from the global South. Website:http://www.waitrose.com/index.aspx
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.
David South Consulting 
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