Making predictions is hazardous business. After all, who would have forecast with any accuracy the Soviet defeat in Afghanistan and the fall of the Berlin wall in late 1980s, or the terrorists attacks of September 11, 2001, or the near-collapse of the US financial markets in 2008, the kind of events that fundamentally changed the world. This new decade of 2010-2020 could also bring long-lasting but hard to predict events that are described by Nassim Taleb as rare but high-impact Black Swan Events. However, I do think this new decade is likely to be defined by the fundamental issues of access to food and water, in addition to the continuing concerns about terrorism and security. Each of these challenges has the potential to precipitate major events that could bring about fundamental yet unpredictable changes in the world order.
Asia in today’s world face the main challenge of the combined adverse effects of A combination of population explosion, water scarcity, and climate change.
The problems arising out of it and the probable solution may be discussed as under:
1. Food:
A combination of population explosion, water scarcity, and climate change are causing serious concerns about access to affordable and reliable food supply in many nations. Climate change in parts of India has resulted in multiple crop failures after seven or eight bad years in a row, putting local people deeper and deeper in debt. An estimated 200,000 Indian farmers have ended their lives since 1997.
There has been a rush by some of the rich but food-poor nations to buy up farmland to grow food in poor nations, raising concerns about the potential for food riots. New ideas and technologies are required to bring about a new "Green Revolution" to feed the growing population of the world.
In June, news agency Reuters reported that the government of Pakistan had offered 404,700 hectares (ha) of farmland for sale or lease to foreign investors. It is the usual suspects of the Gulf states and South Korea who are the likely targets of the government's drive for investment. Oil rich, food poor states from the Middle East and food deficit prone South Korea have been spurred by the high food prices of 2007 and 2008 to increase their food security by investing in agricultural land abroad.
Also in June 2009, Swedish multi-national food company Tetra Pak announced the signing of an memorandum of understanding with local company Engro Foods to create a dairy hub in the Sahiwal district of the Punjab. The hub will serve 15 villages in the district and aims to promote more efficient production and bring smallholders into the formal dairy market chain.
In July, the Pakistani minister for investment said that the country would be happy to provide land for Korean companies to build food and dairy processing facilities, according to Pakistan Agribusiness Report. Also in July, the chief minister of the Punjab said that there was a large amount of interest in investing in the province's agriculture from Qatar.
2. Water:
The year began with an ominous warning by Sardar Aseff Ali, Deputy Chairman of the Planning Commission, about the potential for a water war between India and Pakistan. Such warnings clearly reinforce the gravity of the water situation, requiring creative solutions.
Water is becoming more scarce, and water wars are likely to erupt in several regions of the world. Among the 25 most populous countries in 2009, South Africa, Egypt and Pakistan are the most water-limited nations. India and China, however, are not far behind with per capita renewable water resources of only 1600 and 2100 cubic meters per person per year. Major European countries have up to twice as much renewable water resources per capita, ranging from 2300 (Germany) to 3000 (France) cubic meters per person per year. The United States of America, on the other hand, has far greater renewable water resources than China, India or major European countries: 9800 cubic meters per person per year. By far the largest renewable water resources are reported from Brazil and the Russian Federation - with 31900 and 42500 cubic meters per person per year.
According to the United Nations' World Water Development Report, the total actual renewable water resources in Pakistan decreased from 2,961 cubic meters per capita in 2000 to 1,420 cubic meters in 2005. A more recent study indicates an available supply of water of little more than 1,000 cubic meters per person, which puts Pakistan in the category of a high stress country. Using data from the Pakistan's federal government's Planning and Development Division, the overall water availability has decreased from 1,299 cubic meters per capita in 1996-97 to 1,101 cubic meters in 2004-05. In view of growing population, urbanization and increased industrialization, the situation is likely to get worse. If the current trends continue, it could go as lows as 550-cubic meters by 2025. Nevertheless, excessive mining of groundwater goes on. Despite a lowering water table, the annual growth rate of electric tubewells has been indicated to 6.7% and for diesel tubewells to about 7.4%. In addition, increasing pollution and saltwater intrusion threaten the country's water resources. About 36% of the groundwater is classified as highly saline.
Water connects us in the most fundamental way . We cannot survive without it. Moreover, water is intrinsically linked to the most immediate challenges we face today, including food security, health, climate change, economic growth, and poverty alleviation . Water problems in Asia today are severe—one out of five people (700 million) does not have access to safe drinking water and half of the region’s population (1 .8 billion people) lacks access to basic sanitation . As population growth and urbanization rates in the region rise, the stress on Asia’s water resources is rapidly intensifying . Climate change is expected to worsen t he situation. According to the Inter-governmental Panel on Climate Change, by 2050, more than one billion people in Asia alone are projected to experience negative impacts on water resources as a result of climate change . Experts project that reduced access to fresh water will lead to a range of consequences, including impaired food production, the loss of livelihood security, large-scale migration within and across borders, and increased geopolitical tensions and instabilities . Over time, these effects will have a profound impact on security throughout the region. In an effort to address this emerging crisis, Asia Society—working in partnership with the Earth Institute’s Water Center at Columbia University, the Asia Pacific Water Forum and the Woodrow Wilson International Center for Scholars—launched a Leadership Group on Water Security to examine decreased access to a safe, stable supply of water as a driver of political and socioeconomic instability in Asia . Th rough this report, the Leader ship Group focuses attention on some of the most significant current and future water-related challenges facing Asia and puts forward an agenda in support of cooperative approaches to prevent, manage, and respond to water scarcity and its impacts .
While Asia and the world is in the grips of an economic crisis, it is clear that common efforts to solve water-related challenges are needed now more than ever. Access to clean water and sanitation is a necessity, not a luxury. With effective planning and leadership, this resource crisis can be transformed into a catalyst for la sting cooperation between countries and across communities.
The solution to the water crisis lies in better management of water resources to conserve water and new technologies to economically recycle or produce fresh water from sea water. For example, about 98% of the water in Pakistan is used in farming through a very inefficient flood irrigation method, leaving only two percent for other consumers and commercial-industrial users. A California study recently found that water use efficiency ranged from 60%-85% for surface irrigation to 70%-90% for sprinkler irrigation and 88%-90% for drip irrigation. Potential savings would be even higher if the technology switch were combined with more precise irrigation scheduling and a partial shift from lower-value, water-intensive crops to higher-value, more water-efficient crops. Rather than flood irrigation used in Pakistani agriculture, there is a need to explore the use of drip or spray irrigation to make better use of nation's scarce water resources before it is too late. As a first step toward improving efficiency, Pakistan government has launched a 1.3 billion U.S. dollar drip irrigation program that could help reduce water waste over the next five years. Early results are encouraging. "We installed a model drip irrigation system here that was used to irrigate cotton and the experiment was highly successful. The cotton yield with drip irrigation ranged 1,520 kg to 1,680 kg per acre compared to 960 kg from the traditional flood irrigation method," according to Wajid Ishaq, a junior scientist at the Nuclear Institute for Agriculture and Biology (NIAB).
3. Low-Cost Housing:One of solution
Housing construction by traditional methods has failed to keep pace with the rising demand, particularly in the developing countries like India and Pakistan experiencing rapid urbanization. New, cheaper and faster construction methods are needed to address the basic shelter needs of the people. There are a number of modular, pre-fabrication and rapid on-site assembly methods are being explored in developing nations.
4. Mass Literacy will prove to be a mile tone:
Literacy has become as fundamental a need as food and water in this day and age. And yet, UNESCO data indicates that 770 million adults around the world remain illiterate, over 35% of them in India. New focus and methods are needed to reach out to the illiterate masses of the world as part of a worldwide mass literacy campaigns.
Low levels of literacy continue to hobble many developing nations, limiting the productivity and economic opportunities for the growing young populations, and causing concerns about social and political instability and growth of international terrorism.
5. Health Care Needs urgent attention:
Access to healthcare in South Asia, particularly due to the wide gender gap, presents a huge challenge, and it requires greater focus to ensure improvement in human resources. Though the life expectancy has increased to 66 years in Pakistan and 63 years in India, it is still very low relative to the rest of the world. The infant rate remains stubbornly high, particular in Pakistan, though it has come down down from 76 per 1000 live births in 2003 to 65 in 2009. With 320 mothers dying per 100,000 live births in Pakistan and 450 in India, the maternal mortality rate in South Asia is very high, according to UNICEF.
6.International Terrorism:
The threat of global terrorism is likely to gain strength and spread with new bases in new geographies. A new and more creative and comprehensive strategy will be necessary to counter this growing threat in the realm of ideas and policies. Any new strategy must take into account the following facts to be effective:
1. Al Qaeda was an organization with central leadership, command and control located in Afghanistan prior to 911. But that is no longer true. According to former State Department official Mathew Hoh who served in Afghanistan, al Qaeda is an elastic, amorphous entity, one based not on geography but ideology. “Al Qaeda is a collection of ideas, of independent, autonomous cells,” Hoh says. “They don’t need a lot of funding. They need an apartment with an Internet connection.”
2. Even the 911 hijackers were not all recruited and trained in any one country. They came from different nations and were educated and trained mostly in the United States and Western Europe. What they shared in common was an ideology rather than a geography.
3. Hundreds of al Qaeda members, including many top leaders, have been captured or killed by Pakistani and US military in the region since 911. And yet, the violence is worse than ever before.
4. There have been multiple reports of al Qaeda popping up in several countries around the world such as Yemen and Somalia, confirming Mathew Hoh's arguments that al Qaeda is not confined to a particular geography in central or south Asia.
7. Security: A major concern
With the increasing carnage in several countries, including Pakistan, and growing fears of terrorism, there is an urgent need to develop and use new tools, technologies and methodologies to anticipate and prevent acts of terror resulting in mass casualties.
8. Counter-insurgency:
There are many insurgencies growing around the world, including South Asia, in response to real or perceived injustices. In addition to the Afghan Taliban insurgency against foreign forces, other examples include Taliban and Baloch insurgencies in Pakistan, and Maoists and Kashmir insurgencies in India.
In addition to the political dialog to understand and address genuine grievances of the insurgents, there is a great need to develop techniques and training for counterinsurgency.
9. Green Energy:
Clearly, conservation alone will not suffice when it comes to the world's growing energy needs. There will continue to be significant research and development into exploiting energy from water, wind and sun, as well as innovation in safer and greener nuclear technology such as thorium nuclear reactors.
10. Extreme Affordability:
The incredible success of relatively inexpensive mobile telephones in poor nations, such as Bangladesh, India and Pakistan, has created the awareness among the big corporations and the entrepreneurs that the poor can be a very lucrative market.
Understanding the need to design for extreme affordability with scarce resources is giving birth to a new generation of entrepreneurs. These are entrepreneurs with a social conscience who are motivated by the desire to do good and do well at the same time. They are finding new ways to empower the poor by satisfying their basic needs, such as water, electricity and telephones.
11. Conclusion:
Regardless of any forecasts of the future, it is extremely important for all nations of the world, particularly the United States, China, the United Kingdom, Israel, Iran, India, North Korea and Pakistan to learn from the mistakes of the last decade to try and make the new decade a better stretch of ten years for the entire humanity. This will require sincere efforts and creative energies of the people from the aforementioned countries and the help of the rest of the world.
Saturday, August 21, 2010
Wednesday, August 18, 2010
Climate Change Worsens Poverty In India
At 8 feet below sea level, Pakistan's financial capital Karachi shows up on the list of world's mega-cities threatened by global warming. Other South Asian cities likely to come under rising sea water in the next 100 years include Mumbai, Kolkata and Dhaka.
However, it's not just the big cities in South Asia that will feel the brunt of the climate change. The rural folks in India are already seeing rising crop failures, increasing poverty and frequent farmer suicides.
Addressing a regional conference in Islamabad earlier this year, Dr Rajendra Kumar Pachauri, chairman of the Inter-governmental Panel on Climate Change (IPCC), said Pakistan was witnessing severe pressures on natural resources and environment.
He said: “Climatic changes are likely to exacerbate this trend.Water supply, already a serious concern in many parts of the country, will decline dramatically, affecting food production. Export industries such as fisheries will also be affected, while coastal areas risk being inundated, flooding the homes of millions of people living in low-lying areas.”
“The fact that global warming was unequivocal and there is no scope for scientific questioning, Pakistan faces potential environmental catastrophe,” said Dr Pachauri, who has been awarded the Nobel Peace Prize (on behalf of the IPCC) along with former US vice-president Al Gore.
Here's a recent LA Times report on the vicious cycle of poverty in rural India:
India has long been plagued by unscrupulous moneylenders who exploit impoverished farmers. But with crops failing more frequently, farmers are left even more desperate and vulnerable.
Reporting from Jhansi, India - She stops for long stretches, lost in thought, trying to make sense of how she's been left half a person.
Sunita, 18, who requested that her family name not be used to preserve her chance of getting married, said her nightmare started in early 2007 after her father took a loan for her sister's wedding. The local moneylender charged 60% annual interest.
When the family was unable to make the exorbitant interest payments, she said, the moneylender forced himself on her, not once or twice but repeatedly over many months.
"I used to cry a lot and became a living corpse," she said.
Sunita's allegations, which the moneylender denies, cast a harsh light on widespread abuses in rural India, where a highly bureaucratic banking system, corruption and widespread illiteracy allow unethical people with extra income to exploit poor villagers, activists say.
But here in the Bundelkhand region in central India that is among the nation's more impoverished areas, the problem is exacerbated by climate change and environmental mismanagement, they say, suggesting that ecological degradation and global warming are changing human life in more ways than just elevated sea levels and melting glaciers.
"Before, a bad year would lead to a good year," said Bharat Dogra, a fellow at New Delhi's Institute of Social Sciences specializing in the Bundelkhand region. "Now climate change is giving us seven or eight bad years in a row, putting local people deeper and deeper in debt. I expect the situation will only get worse."
An estimated 200,000 Indian farmers have ended their lives since 1997, including many in this area, largely because of debt.
A 2007 study of 13 Bundelkhand villages found that up to 45% of farming families had forfeited their land, and in extreme cases some were forced into indentured servitude. Tractor companies, land mafia and bankers routinely collude, encouraging farmers to take loans they can't afford, a 2008 report by India's Supreme Court found, knowing they'll default and be forced to sell their land.
"While a few people borrow for social status or a desire to buy a new motorcycle, in most cases it's for sheer survival," Dogra said. "When they see their children starving after several years of crop failures, many feel they have no choice."
Recent amendments to a 1976 law in Uttar Pradesh state have increased the maximum punishment for unauthorized money-lending to three years in jail, up from six months, but many loan sharks are well-connected and elude prosecution. The law specifies that lenders must obtain a state license, but the requirements for obtaining it can be vague, a situation that critics say gives bureaucrats significant leeway to enact arbitrary rules and exact questionable fees.
"I take occasional loans when we're desperate," says Jhagdu, 50, a farmer in Barora, 60 miles south of Jhansi, sitting on his haunches with teeth stained red from chewing betel nut. "When there's no rain, like now, you can't repay for a year, so the amounts can double."
The South Asian governments are sufficiently concerned about potential effects of global warming to warrant a meeting to hammer out a regional response. South Asian experts on climate change held two days of talks in Dhaka last year, ahead of a meeting of environment ministers from countries of the South Asian Association for Regional Cooperation (SAARC). According to Reuters, Bangladesh has proposed the creation of a fund to fight climate change in densely populated South Asia, which experts say is vulnerable to rising seas, melting glaciers and greater extremes of droughts and floods. For the rich South Asians thinking of fleeing to real estate in Dubai, the forecast for the GCC countries is no better. Experts believe the Palm and the World projects in Dubai will disappear underwater in 50 years if the issue of climate change fails to be addressed by governments.
According to a report by the Associated Press, the nonprofit Worldwatch Institute has compiled a list of 21 "mega-cities" of 8 million people or more that are in direct danger as a result of global warming and rising seas: They include Dhaka, Bangladesh; Buenos Aires, Argentina; Rio de Janeiro, Brazil; Shanghai and Tianjin in China; Alexandria and Cairo in Egypt; Mumbai and Kolkata in India; Jakarta, Indonesia; Tokyo and Osaka-Kobe in Japan; Lagos, Nigeria; Karachi, Pakistan; Bangkok, Thailand, and New York and Los Angeles in the United States, according to studies by the United Nations and others.
More than one-tenth of the world's population, or 643 million people, live in low-lying areas at risk from climate change, according to U.S. and European experts. Most at risk, in descending order, are China, India, Bangladesh, Vietnam, Indonesia, Japan, Egypt, the U.S., Thailand and the Philippines.
As a nation, Bangladesh has the most to worry about the effects of climate change in South Asia. A recent story in the Guardian talks about Bangladesh as "flood-prone" because of its geography. Situated across a vast delta where three great rivers join, Bangladesh is known to be flood-prone. Not only does it have monsoon rain to deal with, but the slow warming of the earth's atmosphere is releasing more water from Himalayan glaciers above the flatlands of Bangladesh. Climate change, say scientists, also means higher tides in the Bay of Bengal. The result is trillions more liters of water sloshing over the country, depositing billions of tons of sediment. Experts say a third of Bangladesh's coastline could be flooded if the Bay of Bengal rises three feet in the next 50 years, displacing 20 million Bangladeshis from their homes and farms, according to Reuters. Across the region, warmer weather could cause more intense and more frequent cyclones and storm surges, leading to more salt water fouling waterways and farmlands, the experts said. Corp yields in South Asia could decrease up to 30 percent by the mid-21st century, they added.
Bangladesh has taken the initiative by proposing a SAARC fund for climate change and allocated US$44 million for this purpose in its current fiscal year budget. "We want to find a common stand among the South Asian countries and will raise our voice together against the perils of climate changes," said Raja Devasish Roy, head of the Environment and Forest Ministry of Bangladesh, after opening the experts' meeting in Dhaka. Devasish said industrialized countries were the most to blame for global warming and should compensate poorer nations by providing them grants -- not loans -- to fight the effects of climate change.
While Bangladesh is admirably leading the charge to address the impact of climate change, it is important that the rest of South Asians, particularly India and Pakistan, join it to protect the planet in this noble effort. As part of this challenge, it is time for SAARC leaders to think of structural changes needed for a world without oil. The SAARC nations owe it to their future generations and the rest of the planet.
However, it's not just the big cities in South Asia that will feel the brunt of the climate change. The rural folks in India are already seeing rising crop failures, increasing poverty and frequent farmer suicides.
Addressing a regional conference in Islamabad earlier this year, Dr Rajendra Kumar Pachauri, chairman of the Inter-governmental Panel on Climate Change (IPCC), said Pakistan was witnessing severe pressures on natural resources and environment.
He said: “Climatic changes are likely to exacerbate this trend.Water supply, already a serious concern in many parts of the country, will decline dramatically, affecting food production. Export industries such as fisheries will also be affected, while coastal areas risk being inundated, flooding the homes of millions of people living in low-lying areas.”
“The fact that global warming was unequivocal and there is no scope for scientific questioning, Pakistan faces potential environmental catastrophe,” said Dr Pachauri, who has been awarded the Nobel Peace Prize (on behalf of the IPCC) along with former US vice-president Al Gore.
Here's a recent LA Times report on the vicious cycle of poverty in rural India:
India has long been plagued by unscrupulous moneylenders who exploit impoverished farmers. But with crops failing more frequently, farmers are left even more desperate and vulnerable.
Reporting from Jhansi, India - She stops for long stretches, lost in thought, trying to make sense of how she's been left half a person.
Sunita, 18, who requested that her family name not be used to preserve her chance of getting married, said her nightmare started in early 2007 after her father took a loan for her sister's wedding. The local moneylender charged 60% annual interest.
When the family was unable to make the exorbitant interest payments, she said, the moneylender forced himself on her, not once or twice but repeatedly over many months.
"I used to cry a lot and became a living corpse," she said.
Sunita's allegations, which the moneylender denies, cast a harsh light on widespread abuses in rural India, where a highly bureaucratic banking system, corruption and widespread illiteracy allow unethical people with extra income to exploit poor villagers, activists say.
But here in the Bundelkhand region in central India that is among the nation's more impoverished areas, the problem is exacerbated by climate change and environmental mismanagement, they say, suggesting that ecological degradation and global warming are changing human life in more ways than just elevated sea levels and melting glaciers.
"Before, a bad year would lead to a good year," said Bharat Dogra, a fellow at New Delhi's Institute of Social Sciences specializing in the Bundelkhand region. "Now climate change is giving us seven or eight bad years in a row, putting local people deeper and deeper in debt. I expect the situation will only get worse."
An estimated 200,000 Indian farmers have ended their lives since 1997, including many in this area, largely because of debt.
A 2007 study of 13 Bundelkhand villages found that up to 45% of farming families had forfeited their land, and in extreme cases some were forced into indentured servitude. Tractor companies, land mafia and bankers routinely collude, encouraging farmers to take loans they can't afford, a 2008 report by India's Supreme Court found, knowing they'll default and be forced to sell their land.
"While a few people borrow for social status or a desire to buy a new motorcycle, in most cases it's for sheer survival," Dogra said. "When they see their children starving after several years of crop failures, many feel they have no choice."
Recent amendments to a 1976 law in Uttar Pradesh state have increased the maximum punishment for unauthorized money-lending to three years in jail, up from six months, but many loan sharks are well-connected and elude prosecution. The law specifies that lenders must obtain a state license, but the requirements for obtaining it can be vague, a situation that critics say gives bureaucrats significant leeway to enact arbitrary rules and exact questionable fees.
"I take occasional loans when we're desperate," says Jhagdu, 50, a farmer in Barora, 60 miles south of Jhansi, sitting on his haunches with teeth stained red from chewing betel nut. "When there's no rain, like now, you can't repay for a year, so the amounts can double."
The South Asian governments are sufficiently concerned about potential effects of global warming to warrant a meeting to hammer out a regional response. South Asian experts on climate change held two days of talks in Dhaka last year, ahead of a meeting of environment ministers from countries of the South Asian Association for Regional Cooperation (SAARC). According to Reuters, Bangladesh has proposed the creation of a fund to fight climate change in densely populated South Asia, which experts say is vulnerable to rising seas, melting glaciers and greater extremes of droughts and floods. For the rich South Asians thinking of fleeing to real estate in Dubai, the forecast for the GCC countries is no better. Experts believe the Palm and the World projects in Dubai will disappear underwater in 50 years if the issue of climate change fails to be addressed by governments.
According to a report by the Associated Press, the nonprofit Worldwatch Institute has compiled a list of 21 "mega-cities" of 8 million people or more that are in direct danger as a result of global warming and rising seas: They include Dhaka, Bangladesh; Buenos Aires, Argentina; Rio de Janeiro, Brazil; Shanghai and Tianjin in China; Alexandria and Cairo in Egypt; Mumbai and Kolkata in India; Jakarta, Indonesia; Tokyo and Osaka-Kobe in Japan; Lagos, Nigeria; Karachi, Pakistan; Bangkok, Thailand, and New York and Los Angeles in the United States, according to studies by the United Nations and others.
More than one-tenth of the world's population, or 643 million people, live in low-lying areas at risk from climate change, according to U.S. and European experts. Most at risk, in descending order, are China, India, Bangladesh, Vietnam, Indonesia, Japan, Egypt, the U.S., Thailand and the Philippines.
As a nation, Bangladesh has the most to worry about the effects of climate change in South Asia. A recent story in the Guardian talks about Bangladesh as "flood-prone" because of its geography. Situated across a vast delta where three great rivers join, Bangladesh is known to be flood-prone. Not only does it have monsoon rain to deal with, but the slow warming of the earth's atmosphere is releasing more water from Himalayan glaciers above the flatlands of Bangladesh. Climate change, say scientists, also means higher tides in the Bay of Bengal. The result is trillions more liters of water sloshing over the country, depositing billions of tons of sediment. Experts say a third of Bangladesh's coastline could be flooded if the Bay of Bengal rises three feet in the next 50 years, displacing 20 million Bangladeshis from their homes and farms, according to Reuters. Across the region, warmer weather could cause more intense and more frequent cyclones and storm surges, leading to more salt water fouling waterways and farmlands, the experts said. Corp yields in South Asia could decrease up to 30 percent by the mid-21st century, they added.
Bangladesh has taken the initiative by proposing a SAARC fund for climate change and allocated US$44 million for this purpose in its current fiscal year budget. "We want to find a common stand among the South Asian countries and will raise our voice together against the perils of climate changes," said Raja Devasish Roy, head of the Environment and Forest Ministry of Bangladesh, after opening the experts' meeting in Dhaka. Devasish said industrialized countries were the most to blame for global warming and should compensate poorer nations by providing them grants -- not loans -- to fight the effects of climate change.
While Bangladesh is admirably leading the charge to address the impact of climate change, it is important that the rest of South Asians, particularly India and Pakistan, join it to protect the planet in this noble effort. As part of this challenge, it is time for SAARC leaders to think of structural changes needed for a world without oil. The SAARC nations owe it to their future generations and the rest of the planet.
India and Pak : A Great Farm For Social Entrepreneurs
Understanding the need to design for extreme affordability is giving birth to a new generation of entrepreneurs. These are entrepreneurs with a social conscience who are motivated by the desire to do good and do well at the same time. They are finding new ways to empower the poor by satisfying their basic needs for safe water and electricity in emerging markets.
According to Wikipedia definition, a social entrepreneur is someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change. Unlike a business entrepreneur who typically measures performance in profit and return, a social entrepreneur assesses success in terms of the impact s/he has on society. While social entrepreneurs often work through nonprofits and citizen groups, many work in the private and governmental sectors.
The main aim of a social entrepreneurship as well as social enterprise is to further social and environmental goals. This need not be incompatible with making a profit, but social entrepreneurs are often non-profits. Social enterprises are for ‘more-than-profit’.
In addition to their inner desire to help others while also helping themselves, what has encouraged such entrepreneurs is the successful penetration of the mobile phones among the poor in India and Pakistan, many of whom subsist on less than a dollar a day. The rapid growth of cell phones among the rural poor in South Asia has shown that even the poorest of the poor are willing to offer several months' earnings for the benefit of connectivity. By doing so, they have demonstrated their potential as consumers of affordable products that offer them real benefits, such as a glass of safe drinking water and a bright source of light at night.
Safe, Clean Water for the Masses
Saafwater, Inc. is a startup helping people in Karachi, Pakistan with access to safe drinking water. The company founders, Sarah Bird, Saira Khwaja and Khalid Saiduddin, emerged as finalists in Massachusetts Institute of Technology’s 100k Entrepreneurship Competition in 2007, and received $10,000 to put the concept of SaafWater into practice.
The company's first product is SaafWater Daily Capsule - a simple capsule of chlorine solution that can treat one family’s daily supply of drinking water. SaafWater’s mission is to provide affordable clean water to low-income communities in urban areas. Their goal is to create a profitable distribution network that can supply billions of people with clean water.
The company has worked closely with the US Centers for Disease Control’s Safe Water System which has been responsible for pioneering this technology and reaching an estimated 16 million users worldwide. With their help the company has learned from their experiences and to ensure that it meets all the relevant World Health Organization Guidelines for Drinking Water Quality.
Going door-to-door, SaafWater representatives sell daily chlorine capsules, which can be immersed in a family’s water container rendering the supply free of contaminants in 30 minutes. Sales representatives offer a week’s supply for about 30 rupees, the rough equivalent of U.S. 40 cents. SaafWater also plans to launch independent programs with existing NGOs to help create self-sustaining water purification programs throughout Pakistan.
Saafwater's vision is to build and extend this network to include many other life-saving and life-enhancing products such as clean-burning fuels, sanitation, renewable electricity, refrigeration, eye-glasses, multi-vitamins for mothers and children, and construction materials to name but a few.
Bright Light for Night
D.light, founded by two Stanford graduates, marries next-generation light-emitting diodes (LEDs), proprietary power-management tools, and increasingly cheap solar panels. The founders, Nedjip Tozun and Sam Goldman, attended Professor Jim Patell's Stanford Business School class called Entrepreneurial Design for Extreme Affordability, highlighted recently by Fortune Magazine.
As a result, D.light is able to offer poor communities an affordable alternative to kerosene, which is ubiquitous but hazardous. The quality of the kerosene lamp light isn't good, it emits pollutants, and it's just plain dangerous. "You travel around these villages, and everyone has a story of a child being burned or a house destroyed by fire," says Tozun, speaking to Fortune by phone from his office in Shenzhen, China. "And yet in some places we found that people were spending 15% to 20% of their income on light." The world's poor spend about $38 billion a year on kerosene for lighting, according to the International Finance Corp.
According to Fortune magazine, the D.light lamps sell for about $25, steep for someone earning $1 per day, but the D.light team quickly found that the quality of light was so good that people with the D.light lamps were able to do more work at night and increase their income. Two families in New Keringa, a village of 47 families in southern India, took the plunge on D.light lamps. Says Tozun: "All of a sudden the two families were able to work at night," mostly weaving banana leaves into plates. "Their average monthly income increased from $12 to $18, and they could save the time spent traveling to buy more kerosene." Within a few days the entire village had sprung for the lights. "These people are great customers if you give them a clear value proposition," Tozun says.
In November, D.light raised $6 million in venture capital funding from Draper Fisher Jurvetson and Garage Technology Ventures, among other venture capital firms, to ramp up production and get its lamps into markets, initially in India and Africa.
Empowering would-be customers is one of the mantras of Patell's class at Stanford. Each year some students, like Goldman and Tozun, take their ideas and try to build businesses. Patell doesn't expect every student to start a company, but he does demand that every product in the class offer poor consumers tools for their own microenterprises. "We want to design things so that a farmer can decide to leave his farm and support his family selling water pumps or drip-irrigation tubing," Patell says. "We want things to be sold at a price that covers the cost of manufacturing and distribution."
The need and the opportunity for social entrepreneurs have never been greater. Both SaafWater and D.light are examples of what the institutions of higher learning can do to encourage such entrepreneurship catering to the needs of the billions of poor people in Africa, Latin America and South Asia who can potentially become a huge new lucrative market. What is needed is for the budding entrepreneurs to recognize such opportunities to offer highly useful and essential products at extremely affordable prices. Educational institutions in Pakistan and India can and should play a leading role to encourage and prepare them to do good and do well, and investors should open their minds to see the great opportunities that lie ahead for them to make good returns on such investments.
According to Wikipedia definition, a social entrepreneur is someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change. Unlike a business entrepreneur who typically measures performance in profit and return, a social entrepreneur assesses success in terms of the impact s/he has on society. While social entrepreneurs often work through nonprofits and citizen groups, many work in the private and governmental sectors.
The main aim of a social entrepreneurship as well as social enterprise is to further social and environmental goals. This need not be incompatible with making a profit, but social entrepreneurs are often non-profits. Social enterprises are for ‘more-than-profit’.
In addition to their inner desire to help others while also helping themselves, what has encouraged such entrepreneurs is the successful penetration of the mobile phones among the poor in India and Pakistan, many of whom subsist on less than a dollar a day. The rapid growth of cell phones among the rural poor in South Asia has shown that even the poorest of the poor are willing to offer several months' earnings for the benefit of connectivity. By doing so, they have demonstrated their potential as consumers of affordable products that offer them real benefits, such as a glass of safe drinking water and a bright source of light at night.
Safe, Clean Water for the Masses
Saafwater, Inc. is a startup helping people in Karachi, Pakistan with access to safe drinking water. The company founders, Sarah Bird, Saira Khwaja and Khalid Saiduddin, emerged as finalists in Massachusetts Institute of Technology’s 100k Entrepreneurship Competition in 2007, and received $10,000 to put the concept of SaafWater into practice.
The company's first product is SaafWater Daily Capsule - a simple capsule of chlorine solution that can treat one family’s daily supply of drinking water. SaafWater’s mission is to provide affordable clean water to low-income communities in urban areas. Their goal is to create a profitable distribution network that can supply billions of people with clean water.
The company has worked closely with the US Centers for Disease Control’s Safe Water System which has been responsible for pioneering this technology and reaching an estimated 16 million users worldwide. With their help the company has learned from their experiences and to ensure that it meets all the relevant World Health Organization Guidelines for Drinking Water Quality.
Going door-to-door, SaafWater representatives sell daily chlorine capsules, which can be immersed in a family’s water container rendering the supply free of contaminants in 30 minutes. Sales representatives offer a week’s supply for about 30 rupees, the rough equivalent of U.S. 40 cents. SaafWater also plans to launch independent programs with existing NGOs to help create self-sustaining water purification programs throughout Pakistan.
Saafwater's vision is to build and extend this network to include many other life-saving and life-enhancing products such as clean-burning fuels, sanitation, renewable electricity, refrigeration, eye-glasses, multi-vitamins for mothers and children, and construction materials to name but a few.
Bright Light for Night
D.light, founded by two Stanford graduates, marries next-generation light-emitting diodes (LEDs), proprietary power-management tools, and increasingly cheap solar panels. The founders, Nedjip Tozun and Sam Goldman, attended Professor Jim Patell's Stanford Business School class called Entrepreneurial Design for Extreme Affordability, highlighted recently by Fortune Magazine.
As a result, D.light is able to offer poor communities an affordable alternative to kerosene, which is ubiquitous but hazardous. The quality of the kerosene lamp light isn't good, it emits pollutants, and it's just plain dangerous. "You travel around these villages, and everyone has a story of a child being burned or a house destroyed by fire," says Tozun, speaking to Fortune by phone from his office in Shenzhen, China. "And yet in some places we found that people were spending 15% to 20% of their income on light." The world's poor spend about $38 billion a year on kerosene for lighting, according to the International Finance Corp.
According to Fortune magazine, the D.light lamps sell for about $25, steep for someone earning $1 per day, but the D.light team quickly found that the quality of light was so good that people with the D.light lamps were able to do more work at night and increase their income. Two families in New Keringa, a village of 47 families in southern India, took the plunge on D.light lamps. Says Tozun: "All of a sudden the two families were able to work at night," mostly weaving banana leaves into plates. "Their average monthly income increased from $12 to $18, and they could save the time spent traveling to buy more kerosene." Within a few days the entire village had sprung for the lights. "These people are great customers if you give them a clear value proposition," Tozun says.
In November, D.light raised $6 million in venture capital funding from Draper Fisher Jurvetson and Garage Technology Ventures, among other venture capital firms, to ramp up production and get its lamps into markets, initially in India and Africa.
Empowering would-be customers is one of the mantras of Patell's class at Stanford. Each year some students, like Goldman and Tozun, take their ideas and try to build businesses. Patell doesn't expect every student to start a company, but he does demand that every product in the class offer poor consumers tools for their own microenterprises. "We want to design things so that a farmer can decide to leave his farm and support his family selling water pumps or drip-irrigation tubing," Patell says. "We want things to be sold at a price that covers the cost of manufacturing and distribution."
The need and the opportunity for social entrepreneurs have never been greater. Both SaafWater and D.light are examples of what the institutions of higher learning can do to encourage such entrepreneurship catering to the needs of the billions of poor people in Africa, Latin America and South Asia who can potentially become a huge new lucrative market. What is needed is for the budding entrepreneurs to recognize such opportunities to offer highly useful and essential products at extremely affordable prices. Educational institutions in Pakistan and India can and should play a leading role to encourage and prepare them to do good and do well, and investors should open their minds to see the great opportunities that lie ahead for them to make good returns on such investments.
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