Solutions for a Sustainable World

Vote Now for Your Favorite App in World Bank Competition

2011-02-06T11:32:00.000-08:00

The World Bank announced on 31 January 2011 that it has opened public voting on the applications submitted to the Apps for Development Competition, a challenge issued to software developers by the World Bank to get new perspectives in identifying solutions to development problems. The Popular Choice Award will be determined by public vote and the winner will receive a cash award and a feature on the World Bank website. The competition is part of the Bank’s Open Data Initiative, which last year released for free and for the first time the Bank’s catalogue of development data.

Applications were submitted from 36 countries across every continent with more than half came from Africa, Asia, and Latin America. The apps use a wide variety of World Bank data, including information about health, the environment, children out of school, agricultural land data, gender statistics, population growth, and mortality rate, among other datasets. The 107 apps came in response to the World Bank’s global call for apps in October 2010 to help find solutions to today's development challenges and to raise awareness of the Millennium Development Goals.

The 107 eligible entries are now available for use, review and voting on the Apps for Development website through 28 February 2011. The apps created range from SMS services to apps for the Apple iPhone, and include games aimed at children, as well as educational and statistical modeling tools. The winners will be announced at the joint World Bank/International Monetary Fund Spring Meetings in April 2011.

Aside from the Popular Choice Award, an expert judging panel will select winners for the First, Second, and Third Prizes, five Honorable Mentions, and a Large Organization Recognition Award. A total of $45,000 is available in prizes. The expert judging panel includes such technology gurus as Craig Newmark of Craigslist, Kannan Pashupathy from Google, and Ory Okolloh, co-founder of Ushahidi. Apps were also submitted by large technology companies, although these cannot be considered for prizes.

So go ahead, vote for your favorite and share in the comment section below what which app you voted for and why.

Competition Connects University Students to Emerging Capital Markets in Africa

2011-02-01T01:58:00.000-08:00

University or college students located worldwide may participate in the African Stock Investment Competition (ASIC). Sponsored by Afribiz, Africa investor, South African Chamber of Commerce in America, and Universal Creativ Solutions, the ASIC offers students who are at least 18 years of age the opportunity to learn firsthand about African capital markets. For the 2011 competition, U.S. students will have their first opportunity to gain an inside look at emerging market stock exchanges in Africa, while competing to win cash and prizes by building the best performing stock investment portfolio.

The ASIC website explains the two levels of competition. In the ASIC Level 1 Individual Competition, a series of quizzes are conducted February 2011 through May 2011. For each quiz, students who take the quiz and score 100 percent will be placed in a pool to receive a prize. Awardees are chosen randomly from the pool of students who scored 100 percent on the quiz. At least one awardee will be chosen for each quiz.

In the ASIC Level 2 Team Trading Competition, teams of students consisting of two to four students compete against each other by developing high growth stock portfolios of six months (March 1 through September 30, 2011) on a virtual trading platform (university.jse.co.za), which shadows the Johannesburg Stock Exchange. No real currency or assets are involved. The teams that have the three best performing portfolios (based on rules guiding the virtual trading platform) as of September 30, 2011 will be awarded first, second, and third place respectively.

For each quiz competition in ASIC Level 1 Individual Competition, awardee(s) will receive an undisclosed prize with a value of less than $100.00. For ASIC Level 2 Team Trading Competition, winning teams receive the following cash prizes:

1st Place Team – $1,500.00
2nd Place Team – $1,000.00
3rd Place Team – $500.00

Registration deadlines for the ASIC Level 1 Individual Competition and ASIC Level 2 Team Trading Competition are 20 February 2011 and 26 February 2011, respectively. Additional information may be found at www.africanstockcompetition.com/competition-registration.

The Makings of a Responsible Business

2010-12-24T19:51:00.000-08:00

During a recent trip to Washington, DC, I had the pleasure of serving as a panelist at the Global Social Entrepreneurship Forum hosted by the Carey International Business Career Club at Johns Hopkins University. Moderated by James Calvin, Ph.D., Associate Professor at the Johns Hopkins Carey Business School, my fellow panelists included Drew Durban, Co-Founder of Anza Technologies, Neelima Grover, Founder and Chairman of The QED Group, and Barbara Moller, President and Founder of Paper to Pearls. I enjoyed the conversation with the attendees and my fellow panelists and while several good points were made during the course of the forum, there are a few worth mentioning in this blog.

As a result of the difficult economic climate, many business students are considering starting their own business ventures upon graduation. While it may be obvious to most people, it is important to focus a business on an area where the entrepreneur is passionate and finds motivating. Many people have the misconception that business is not personal. They are grossly incorrect. When you immerse yourself in your venture by working 16 hours a day, seven days a week and sacrifice your time with your friends and family, business IS personal. An entrepreneur will fail if they cannot find the passion and motivation to sustain their energy, efforts, and carry themselves through the tough times (and there will be a lot of rough spots where you question the reasons for starting your venture, finding value in your efforts or managing the stress caused by unforeseen viability and success of the venture).

Since the focus of the forum was on social entrepreneurship (I prefer the term “responsible business”), the panelists were asked about the challenges of doing business in developing nations, some of which have serious corruption problems and lack of governance or physical infrastructure. Uniformly, the panel replied the importance of a vast knowledge of the local culture and unique nuances. I have conducted business worldwide and I learned early in my career that every country possesses an uniqueness about it. As an entrepreneur, my operational strategy, product or service and value proposition must take the unique cultural nuances into consideration.

The financial bottom line is not always the primary focus of doing business in developing markets; social return on investment (SROI) often takes an essential role in defining the value of a business venture. The Wikipedia definition of SROI “is a principles-based method for measuring extra-financial value (i.e., environmental and social value not currently reflected in conventional financial accounts) relative to resources invested. It can be used by any entity to evaluate impact on stakeholders, identify ways to improve performance, and enhance the performance of investments.” While businesses adhering to responsible practices are mindful of the SROI, they tend to neglect the financial ROI. In other words, businesses, for-profit and nonprofits alike, must establish a revenue model that will produce a steady stream of cash flow to sustain operations and promote business growth.

A key mistake many businesses make is their failure to differentiate themselves from the competition or invest in a comprehensive branding and marketing strategy. I am in the early stages of launching a business venture where their currently exists little competition; however, I have to assume that the marketplace will see an influx of competitors and I have to convince my customer that my service is superior. This cannot be done through innovation alone. It is essential to create brand value and effectively market this brand to current and potential customers alike.

Lastly, it takes a highly motivated and well-organized team for any venture to succeed. From my experiences with for-profit and nonprofit ventures, I learned the importance of having the right people involved who believes in the business mission, supports the objectives, assists in the creation of the product or service, and understands the value proposition. In addition to leading the right team, it is essential to having good mentors and advisors whom an entrepreneur can receive feedback to their ideas or provide objective advice that will help the entrepreneur succeed. Furthermore, in my ventures, not only have I learned to utilize my strengths, it is equally important to realize my weaknesses and find people (mentors, managers or support staff) that will provide a unique value to the business team.

I invite you to contribute your own ideas or share your experiences in the comment section below.

Haïti’s First Mobile Money Service

2010-12-13T17:46:00.000-08:00

Approximately 85 percent of Haïtians households own a mobile phone, but very few have access to banking or lending services. On December 3, 2010, wireless operator Voilà, a subsidiary of Bellevue, Washington-based Trilogy International Partners, and Haïti-based Unibank has launched T-Cash, Haïti’s first mobile money solution. The press release says that this service is a “first-of-its-kind service in Haiti” serving hundreds of thousands of the unbanked Haïtians in regions unreached by traditional financial service providers. Accessible through their Voilà mobile phone, Haïtians will now have access to a full suite of banking and m-commerce services. “By leveraging Unibank’s nationwide network of merchants and tapping into Voilà’s base of over 1 million subscribers, this partnership creates a valuable financial ecosystem with the potential to impact millions of Haitians throughout the country. In partnership with applications service provider MoreMagic, Voilà and Unibank have delivered their mobile payment solutions in a secure, hosted, and fully managed environment.”

With T-Cash, Voilà subscribers throughout Haïti now have the ability to complete domestic peer-to-peer money transfers, bill pay, payroll services, and expanded mobile commerce capabilities. An initial and unique feature of the T-Cash service will be a ‘mini wallet.’ The mini wallet allows Voilà subscribers to immediately activate the T-Cash service and store up to 2500HTG (US$62.50) by entering a code on their Voilà mobile phone. This easy to use, mini wallet feature will allow for rapid, widespread adoption and access nationwide. By January 2011, Voilà and Unibank are preparing to establish over a thousand affiliated merchants and cash in/cash out locations throughout the country.

In a country that has been ravaged by natural disasters such as hurricanes and flooding, and the devastating earthquake on January 12, 2010, I am very encouraged to see the private sector implement a solution to provide banking services for Haïtians through mobile technology. Households with access to savings accounts are more likely to invest in education, increase productivity and income, and reduce vulnerability to illness and other unexpected events. Through a mini wallet and other m-commerce services, Haïtians have access to safe and affordable savings accounts, credit facilities, and the ability to conduct commercial transactions, which are necessary to achieving sustainable development.

Global Savings Forum Outlines Sustainable Solutions to Financial Inclusion

2010-11-23T15:39:00.000-08:00

My previous entry presented various statistics explaining that while very few poor people have access to savings accounts, there is a strong desire to utilize such financial schemes. It is estimated that 3 out of 4 adults in developing and middle income countries do not have bank accounts and worldwide, it is the poor, women, and rural residents who are the least banked. Only about 10 percent of the 2.5 billion people living on less than $2 per day have access to a bank account. Rather than illustrating a dire picture, these statistics demonstrate the opportunity that exist in broadening savings services to a large segment of the most underserved people worldwide; otherwise known as financial inclusion. (Photo: Bill & Melinda Gates Foundation)

At the Global Savings Forum in Seattle, the first global gathering focused on the role of savings in the developing world, the Bill & Melinda Gates Foundation pledged $500 million over the next five years to expand savings. Foundation co-chair Melinda French Gates noted that a package of six new grants totaling $40 million are part of the $500 million pledge. The grants support projects and partnerships to improve access to savings and other financial services, including:

Expansion of bank and microfinance services to include savings accounts;
Implementation of new approaches to reach the poor with savings, such as branchless banking and mobile money; and
Research to identify how people use formal and informal financial tools, including savings, credit, insurance, and payment services, and to analyze the impact of financial services on the lives of the poor.

“Savings doesn’t just help people mitigate the risks posed by a medical emergency or a bad crop,” said Mrs. Gates. “It also gives them the ability to marshal their resources to build something better for themselves and their children. It allows them to fund their own businesses, to look ahead with confidence. Savings helps families to take the giant leap from reacting to events to planning for a healthier, happier future.”

Explained by a Gates Foundation press release, “Technologies such as mobile phones are already providing safe, reliable, and easy options for people to access financial services. Sixty-nine percent of the developing world already has a mobile connection, and this number is expected to climb to 98 percent within five years.”

Emerging technologies such as mobile phones and innovations that enable banking services to be provided in post offices, neighborhood shops, and other convenient locations are creating a historic opportunity to deliver affordable, quality financial services to the doorsteps of the world’s poor. In Kenya, a service called M-PESA allows nearly 12 million people to transfer money and link to bank accounts using mobile phones. In Mexico, a network of government-operated convenience stores is serving as a platform to offer banking services to the rural poor. In Malawi, a bank is reaching thousands of first-time banking customers by mounting mobile banks on the back of pickup trucks. Here is a video detailing the Foundation’s program of promoting financial inclusion in Mexico:

Savings Accounts are in High Demand by People in Poverty

2010-11-17T19:36:00.000-08:00

From November 16-17, 2010, the Seattle, Washington-based Bill and Melinda Gates Foundation hosted the Global Savings Forum, the first global gathering focused on the role of savings in the developing world urging urged leaders in government, banking, mobile communications, and international development to work together to build a new kind of financial infrastructure to bring savings to the poor. The conference produced several interesting statistics about the unbanked—people who do not have access to a savings account.

It is estimated that 3 out of 4 adults in developing and middle income countries do not have bank accounts and worldwide, it is the poor, women, and rural residents who are the least banked. Only about 10 percent of the 2.5 billion people living on less than $2 per day have access to a bank account. Sub-Saharan Africa is the least banked region in the world with 80 percent of its population lacking access to a bank account. This is followed by the Middle East/North Africa and Latin America/Caribbean at 68 and 65 percent, respectively.

There is a misconception that poor people do not save. The truth is that poor people actively save in cash and through informal mechanisms, but these tools inadequately meet their specific needs. According to a series of studies, over the course of a year, a typical poor household in Bangladesh, India or South Africa uses no less than four and typically closer to ten types of financial instruments. Rotating Savings and Credit Association (ROSCA) membership rates among adults have been estimated at between 50 and 95 percent of adults in Cameroon, Côte d'Ivoire, Democratic Republic of Congo, Gambia, Liberia, Nigeria, and Togo and similar group savings schemes are widespread outside of Africa as well. (ROSCA is a group of individuals who agree to meet for a defined period of time in order to save and borrow together.) Furthermore, a study of 1,500 people in Uganda showed that 99 percent of respondents failed to reach their savings goals when using informal methods, either because the money was stolen or lost, or because they were too tempted to spend the money when it was stored as cash in their home.

The conference presented overwhelming evidence that savings accounts are in high demand by poor people. Interestingly, savings accounts are being engaged at rates up to 12:1 compared to loans, even when both services are available from the same institution. In Uganda, for example, 43 percent of people said a savings account is their greatest financial need compared to 31 percent who cited credit. A Consultative Group to Assist the Poor (CGAP) study of six microsavings-focused institutions also found rapid growth in savers. During a six-year time period, 20 million new accounts and $4.3 billion in savings volume were added, representing an increase of 87 percent and 71 percent respectively.

Several participants noted that safe savings options help people to manage risks, like illness, increase investment in livelihoods, and empower women. A study in the Philippines showed that access to certain savings products increased women’s economic empowerment, including decision-making power over purchases, family planning, and children’s education. Farmers who were given the option to put aside money toward the next planting season increased productivity, enhancing investments in farming inputs by 32-39 percent. A randomized control trial in Western Kenya found that women who had access to a formal savings account were able to save and invest 45 percent more in their businesses after six months, leading to increased purchasing power for food and personal expenditures. The same study revealed that women with formal savings accounts were better able to afford emergency health services without depleting the money invested in their businesses. For most poor households, using savings to pay for large expenditures is cheaper and more efficient than taking a loan. For instance, even microfinance institutions (MFIs) often charge over 50 percent annual interest on loans. Fees for small deposit accounts, however, often equate to zero or positive interest payments to savers.

Poor households with access to savings accounts are more likely to invest in education, increase productivity and income, and reduce vulnerability to illness and other unexpected events. The challenge remains that very few MFIs offer savings accounts, and more than 90 percent of the world’s poor still lack access to financial services and resort to risky, expensive, and inefficient ways to save. In my next blog entry, I will present a number of solutions discussed during the two-day forum that will increase savings mechanisms to a large underserved market.

Number of Internet Users to Surpass Two Billion by End of 2010

2010-10-20T03:31:00.000-07:00

On October 19, 2010, the eve of World Statistics Day, the Geneva, Switzerland-based International Telecommunication Union (ITU) released a report, The World in 2010: ICT facts and figures, explaining the number of Internet users worldwide doubled in the past five years and will surpass the two billion mark in 2010. There will be an estimated 226 million new Internet users in 2010, with a majority, 126 million, coming from developing countries. China is the largest Internet market in the world with more than 420 million Internet users.

Where people are accessing the Internet is different when comparing industrialized and developing countries. For example, the number of people with Internet access at their residence increased from to 1.6 billion this year from 1.4 billion in 2009, with 65 percent of these in developed countries and only 13.5 percent in developing countries where access to the Internet in schools, at work and public locations is crucial. By the end of 2010, 71 percent of the population in industrialized nations will be online, compared to 21 percent in developing countries. Regional differences are significant: 65 percent of Europeans are on the Internet compared to only 9.6 percent of Africans.

There is a growing demand for higher-speed broadband connections to access rapidly increasing high-bandwidth content and applications on the Internet. The press release explains that the ITU, the leading United Nations agency for information and communication technology issues, “considers broadband as a catalyst for growth. Recently, ITU and UNESCO launched the Broadband Commission for Digital Development that aims to promote the adoption of broadband-friendly practices and policies worldwide. ITU Secretary-General Hamadoun Touré says, ‘Broadband is the next tipping point, the next truly transformational technology. It can generate jobs, drive growth and productivity, and underpin long-term economic competitiveness. It is also the most powerful tool that we have at our disposal in our race to meet the Millennium Development Goals, the deadline for which is now just five years away.’”

Moreover, according to ITU, “Over the past year, there has been strong growth in fixed broadband subscriptions. By the end of 2010, fixed broadband penetration will reach 8 percent globally. But penetration levels in developing countries remain low: 4.4 subscriptions per 100 people compared to 24.6 in developed countries.”

While high-speed Internet is still out of reach for many people in low-income countries, mobile telephony is becoming ubiquitous, with access to mobile networks now available to over 90 percent of the global population. ITU’s new data indicate that among the estimated 5.3 billion mobile subscriptions by the end of 2010, 3.8 billion will be in the developing world. Furthermore, 940 million of the 5.3 billion subscriptions will be for 3G services.

Access to mobile networks is now available to 90 percent of the world population and 80 percent of the population living in rural areas and people are moving rapidly from 2G to 3G platforms, in both developed and developing countries. In 2010, 143 countries were offering 3G services commercially, compared to 95 in 2007.

The ITU report says mobile cellular growth is slowing worldwide. In developed countries, the mobile market is reaching saturation levels with on average 116 subscriptions per 100 inhabitants at the end of 2010 and a marginal growth of 1.6% from 2009-2010. At the same time, the developing world is increasing its share of mobile subscriptions from 53 percent of total mobile subscriptions at the end of 2005 to 73 percent at the end of 2010. In the developing world, mobile cellular penetration rates will reach 68 percent at the end of 2010 - mainly driven by the Asia and Pacific region. India and China alone are expected to add over 300 million mobile subscriptions in 2010. In the African region, penetration rates will reach an estimated 41 percent at the end of 2010 (compared to 76 percent globally) leaving a significant potential for growth.

An Ambitious New Initiative to Reduce Smoke Exposure in Developing Nations

2010-09-25T03:40:00.000-07:00

According to the World Health Organization (WHO), nearly two million people die prematurely each year because of exposure to smoke from traditional cookstoves and open fires; that is nearly one death every 16 seconds. Furthermore, three billion people, nearly half of the world’s population, are affected by exposure to smoke from traditional cookstoves and open fires and WHO estimates that exposure to smoke from traditional cookstoves accounts as one of the top five worst overall health risk factors in developing countries. Given the adverse impact of cookstoves and open fires predominately on women and children, I am encouraged by the formation of the Global Alliance for Clean Cookstoves, a US$60 million dollar public-private partnership to save lives, improve livelihoods, empower women and combat climate change by creating a thriving global market for clean and efficient household cooking solutions.

The announcement of the Alliance’s formation was made by United States Secretary of State Hillary Rodham Clinton at the Clinton Global Initiative’s 2010 Annual Meeting. Outlining the problem, Secretary Clinton said, “As many as three billion people are gathering around open fires or old and inefficient stoves in small kitchens and poorly ventilated houses. Many of the women have labored over these hearths for hours, often with their infant babies strapped to their backs, and they have spent many more hours gathering the fuel. The food they prepare is different on every continent, but the air they breathe is shockingly similar: a toxic mix of chemicals released by burning wood or other solid fuel that can reach 200 times the amount that our EPA considers safe for breathing.” Moreover, explained Mrs. Clinton, “As the women cook, smoke fills their lungs and the toxins begin poisoning them and their children. The results of daily exposure can be devastating: Pneumonia, the number one killer of children worldwide, chronic respiratory diseases, lung cancer, and a range of other health problems are the consequence.”

The Alliance’s ‘100 by 20’ goal calls for 100 million homes to adopt clean and efficient stoves and fuels by 2020, which will be achieved by a collaborative effort among public, private, and non-profit partners to help overcome the market barriers that currently impede the production, deployment, and use of clean cookstoves in the developing world. Led by the United Nations Foundation, the Alliance will bring together leading foundations, non-profit organizations, academic institutions, corporate leaders, governments and UN agencies to help overcome current barriers and stimulate a thriving global market for clean cookstoves.

Why launch this initiative in 2010? The Alliance explains that several factors are aligning as never before to put the sector within reach of a “tipping point” for adopting clean cookstoves at scale. These factors include:

Recent advances in clean cookstove design, testing, and monitoring;
Compelling new research on the health and environmental benefits of clean cookstove;
Recent commercial success and development of a number of business models in the field;
The advent of national cookstove programs in India, Mexico, Peru and elsewhere;
The increasing need for effective near- and long-term action to address climate change at the local and regional level; and
The potential for carbon finance to fund stove initiatives at greater scale.

What can Governments and NGOs Learn from Coca-Cola?

2010-09-21T02:36:00.000-07:00

The purpose of the TEDxChange forum was to promote public awareness of and support for the Millennium Development Goals (MDGs), which range from halving extreme poverty to halting the spread of HIV/AIDS and providing universal primary education, all by the target date of 2015. The MDGs are to be achieved by a collaboration of all the world’s governments and nongovernmental organizations (NGOs). The September 20, 2010 forum included a few speakers and a performance by Bajah + The Dry Eye Crew, a hip-hop group originally from Sierra Leone that is known for speaking out against political and social injustices. Melinda Gates, co-chair of the Seattle, Washington-based Bill and Melinda Gates Foundation, was one of the speakers and there are certain aspects of her speech worth discussing on this blog.

Mrs. Gates spoke about the worldwide presence of Atlanta, Georgia-based Coca-Cola Company, even in most underdeveloped regions of the world. This is in stark comparison to the items underserved populations are lacking such as condoms, vaccinations for curable diseases, and educational materials for malaria prevention and prenatal care. “Coke is everywhere,” said Mrs. Gates, “in fact, when I travel in the developing work, Coke feels ubiquitous.” She continued to say that “Coke’s success makes you wonder how they are able to get to these far-flung places.” If Coke is so successful in delivering their product worldwide, “then why can’t governments and NGOs do the same thing?”

Mrs. Gates explained that if the international development community wishes to achieve the Millennium Development Goals prescribed by the United States by 2015, “we need to learn from the innovators and those innovators come from every single sector. I feel that if we can understand what makes Coke ubiquitous, we can apply those lessons to the public good. Coke’s success is relevant because if we can analyze and learn from it, then we can save lives.” Mrs. Gates continued to explain that there are three things the international development community can learn from Coca-Cola: “Real-time data and immediate feed it back into the product, tap into local entrepreneurial talent, and they do incredible marketing.”

Coca-Cola takes immediate data to measure progress. This is different to development organizations where evaluation comes at the very end of the project and by then, it is too late to use the data. Mrs. Gates uses bowling in the dark as an example of the flawed system governments and NGOs use, “You roll the ball, you hear some pins go down, it’s dark and you cannot see which pins go down until the lights come on, then you see your impact. Real-time data turns on the lights.”

In order to reach distant markets in developing nations, Coca-Cola recognized that it had to change its distribution model that worked so effectively in industrialized nations. Observing that some people in Africa were buying Coca-Cola products in bulk and reselling it in rural villages, the beverage company created 3,000 created micro-distribution centers in Africa since 1990, which now employs 15,000 entrepreneurs. In Tanzania and Uganda, micro-distribution centers represent 90 percent of Coka-Cola sales.

How can governments and NGOs learn from Coca-Cola? “Governments and NGOs need to tap into that local entrepreneurial spirit as well because locals know how to reach the very hard to serve places and they also know their neighbors and what motivates them to make changes,” remarked Mrs. Gates. She cites Ethiopia’s new health extension program as an example where the Ethiopian government noticed that so many people resided long distances from medical centers that prevented them from seeking immediate medical care. In 2003, using a similar model used in the Indian state of Kerala, the Ethiopian government trained 35,000 health extension workers to deliver medical care directly to the people in rural areas. In five years, this program increased the number of workers from one per 30,000 to one worker for every 2,500 Ethiopians.

Mrs. Gates continued to explain that “health extension workers can help with so many things whether it is family planning, prenatal care, immunizations for the children, or advising the woman to get to the facility on-time for an on-time delivery. That is having real impact in a country like Ethiopia and it’s why you see their child mortality numbers coming down 25 percent from 2000 to 2008. In Ethiopia, there are hundreds of thousands of children living because of the health extension program.”

With respect to marketing, Coca-Cola’s successful strategy lies in localizing their brand and advertising on a country or region basis. I have witnessed this during my travels. Whether it is in Uganda, Brazil or China, Coca-Cola creates advertisements using local people and in the local language, which gives the impression that the beverage company is locally-based. Everyone knows that Coca-Cola is a large American conglomerate, but their marketing strategy reflects a localized feel to the product. Governments and NGOs need to incorporate similar marketing strategies whether it is condom distribution to eradicate AIDS/HIV or promoting sanitary behavior like washing hands after defecating or linking toilets to courtship like a northern India state did to save lives caused by dysentery. Mrs. Gates said that if governments and NGOs “begin to understand what people want in health and development, then we can change communities and whole nations.”

You can watch the entire TEDxChange event in the video below (Mrs. Gates’ speech begins at the 22:03 mark):

Observations from the 12th Annual Seattle University Business Plan Competition

2010-09-03T03:26:00.000-07:00

This past spring, I observed the tradeshow and final round of the 12th Annual Harriet Stephenson Business Plan Competition hosted by my alma matter, Seattle University (SU). 23 teams competed for over $20,000 in prize money. I was very impressed by the broad spectrum of sectors represented and the creativity of the business strategies presented. There are certain observations from the presentations that are worth discussing.

I receive plans from businesses at different stages looking for funding and many of these plans lack a comprehensive competitive strategy. The contestants at this year’s competition are no exception. Too many businesses outlined competitive strategy by saying “there are no competitors.” As an entrepreneur and business advisor, I promise you that no matter how unique a business idea may be, someone out there in the world is thinking the same thing. I recall when Yahoo! Inc. launched its web portal in 1995 when very few competitors existed. When Yahoo became a publicly-traded company in 1996, the Sunnyvale, California-based company was in the position to be the market leader for years to come. Then a little unknown company called Google Inc. was launched in 1998 and within just a few years, Yahoo quickly lost its competitive advantage to the Mountain View, California-based company. Yahoo continues to struggle in finding its niche in the marketplace. (For disclosure purposes, I am a shareholder of Google.)

Another example I like to use in how a market leader can find itself in trouble by losing sight of its competitive advantage is Palm, Inc. While Palm was not the first to introduce touchscreen smartphones, it was the first to produce this innovative product at a competitive price. When I purchased my Palm Treo in 2005, there no product such as the Apple iPhone or Google Droid (Research in Motion’s BlackBerry was Palm’s primary competitor in the smartphone sector at the time). Fast forward five years and not only did Palm not stay ahead of the competition, but the Sunnyvale, California-based company was acquired by Hewlett-Packard on July 1, 2010.

The point here is that while an entrepreneur may think his or her business idea is truly unique, the reality is that a comparable service or product will enter the market sooner than most entrepreneurs realize or anticipate. How will your company remain a leader as competitors enter the market?

Another common mistake is that some competitors possessed gaps in their management team. I was mystified to see a few contestants lacking people in key roles such as Chief Executive Officer or General Manager. I understand that some people may be the creative leader of the company, how can they expect to receive financial support from an investor if there is no one to lead the company? I can attest that value of any company is not the service or product per se, but the people leading the day-to-day operations. One point I often stress in my entrepreneurship seminars is that investors invest in people more than they invest in ideas. Whether we realize it or not, each one of us has million (or billion) dollar ideas. However, very few people in the world have the ability (and a little luck) to implement their ideas.

Each team presenting at the tradeshow provided a one-page handout outlining the company’s mission, deliverable, value proposition, financial strategy including amount sought from investors, and other pertinent information. This is a small issue, but I am surprised by the number of competitors who failed to provide their contact information (phone number, email address or website) on their handout.

I am pleased to see Seattle University support entrepreneurs through this worthwhile competition. Information about the 2011 competition may be found here. Any enrolled SU students or alumni can participate in the competition and a team participating in the competition can consist of one or more contestants and include non-students. However, there must be at least one SU student or alumnus on each team. The winners of the 2010 competition are:

Grand prize ($10,000): Greenstone International (pictured above);
First runner-up ($2,500): Safety Innovation;
Second runner-up ($1,250): Sweet Stache Brewery & Alehouse;
Second runner-up ($1,250): Broadspeak;
Social Impact Award ($2,500): Authentic-i;
Small Business Award ($2,500): Past & Present; and
Community Choice Award ($250): Past & Present.

USAID-Funded Apparel Center to Provide Training to Thousands of Haïtians

2010-08-14T13:38:00.000-07:00

The U.S. Agency for International Development (USAID) is an independent agency that provides economic, development and humanitarian assistance around the world in support of the foreign policy goals of the United States. The Washington, DC-based agency provides assistance in sub-Saharan Africa, Asia and the Near East, Latin America and the Caribbean, and Europe and Eurasia. Many people, for justifiable reasons, criticize the effectiveness of USAID’s programs and policies aimed at helping the world’s most underserved population. While I can write a book about many of USAID’s failures, and several have been written, I wish to discuss an initiative that has the potential of being one of USAID’s successes.

On August 11, 2010, USAID announced the opening of the Haïti Apparel Center (HAC). The new facility will help Haïti grow its private sector workforce by training more than 2,000 professionals per year to help meet the need for skilled workers in Haïti’s garment industry. In addition to providing vocational training, the center will further enable Haïti to maximize the benefits of the Haïtian Economic Lift Program (HELP) Act signed into law in May 2010, which improves U.S. market access for Haïtian apparel exports.

According to the USAID announcement, “In the 1980s there were about 150,000 garment workers in Haïti; now there are around 20,000. The value of Haïtian apparel exports to the United States in 2009 amounted to roughly $512 million, employing more than 25,000 Haïtians. The HELP Act, which has been widely supported by Congress, significantly expands Haïti’s trade preferences to the U.S. It also promotes investment in Haïti and supports the rebuilding of the garment sector which was significantly damaged over the years due to political unrest and more recently by the earthquake. According to a Congressional Research Service report issued in June, rebuilding costs for the industry are estimated at $38 million to refurbish damaged buildings, replace machinery and train new employees.”

The HAC is part of “Konbit Ak Tet Ansanm” (KATA), a four-year, $104.8 million USAID designed and financed job-creation initiative. In partnership with CHF International, it provides training and improves manufacturing skills of workers involved in the textile industry -- including sewing machine operators and mechanics and quality-control supervisors. The facility also offers executive seminars to senior managers, factory owners and leaders in the business community.

All applicants take a test on dexterity, color blindness, basic literacy and numeracy. Students who are accepted as sewing machine operators are then enrolled for a six-week course that includes training on how to work in a formal work environment and a curriculum developed by [TC]2, one of the leading associations that represents garment buyers. After graduating from the program, students will be highly sought after by employers. In advance of its formal opening, the HAC has trained more than 50 sewing machine operators, and 13 operator trainers have already graduated. All of these students are now employed -- and the operators now rank among the top performers in local garment assembly plants.

The more than 6,000-square-meter HAC facility was provided by the Government of Haïti and renovated and operated by USAID partner CHF International-Haïti. It is located in the SONAPI industrial park -- minutes from the garment factories in and around Haïti’s capital of Port-au-Prince and close to workers’ residential neighborhoods.

Eating a Balanced Meal on a Tight Budget

2010-08-09T02:29:00.000-07:00

Having traveled to developing countries worldwide, I routinely see people of all ages malnourished as a result of a poor diet. Moreover, given the current economic climate, poor nutrition is a systematic problem in industrialized nations as well with the primary obstacle caused by the high cost of food. To help people overcome this obstacle, Gopal Kapur launched FamilyGreenSurvival™, which according to his website, “is designed to build a deep commitment to green living, develop knowledge and empathy for the world’s low income and poor population, deliver a program of healthy nutrition practices to combat obesity, and to provide education scholarships for students from low income families nationally and internationally.” The organization’s goals are:

Deliver a program of personal practices designed to develop deep commitment to ‘green living’ to save energy and reduce packaging waste;
To help develop knowledge and empathy for the world’s low income and poor population;
Deliver a program of nutrition education, smart food shopping, healthy cooking and eating skills to help combat obesity, diabetes, heart disease, and cancer;
Deliver a national and international program of school, college, and university scholarships for students from low-income families; and
Partner with local, national, and international organizations, communities, and government agencies in support of green living, nutrition education, healthy cooking and eating, and financial support for low-income families.

FamilyGreenSurvival offers a variety of programs for good nutrition at a very low cost. For example, the EatingGreen™ program is based on the adage: “Think Globally, Act Locally,” and asks people to pledge to eat only raw ‘green’ foods one day a month. ‘Raw’ foods such as vegetables, fruits, nuts, seeds, honey—all of which have been minimally processed after harvesting—and water from the tap. The guidelines for Eating Green include:

All food is eaten raw, choose foods that have been minimal processed and shipped after harvesting; visit local or nearby farmer’s markets;
No wood or charcoal fires, gas burners, or barbeques;
No electrical appliances – micro wave oven, blender, juicer, coffee maker, stove, or oven. Use only mortar, pestle, and manually operated devices;
No disposable plates, cups, napkins, paper towels, or plastic utensils;
No bottled water, no soft drinks, no alcohol, no coffee or tea; this is the opportunity to drink just water or hand squeezed juices; and
Minimal TV, telephone, and computer use; it’s a day to reflect, talk, walk, exercise, garden, sing, dance, relax, and frolic.

FamilyGreenSurvival’s EatingRightWhenOurBudget’sTight™ program consists of healthy, tasty, and easy to prepare breakfast, lunch, and dinner dishes where the cost of the daily menu averages around $6 per person. When this shopping and cooking program is followed diligently, it will go a long way in helping to reduce the obesity problem and related chronic diseases such as diabetes, heart disease, and cancer. The following program components are provided free of cost to program participants:

Nutrition education, smart shopping, and recipe tasting sessions conducted through churches, food banks, and similar public service organizations;
Selected recipe ingredients distributed to session participants;
Recipes featuring breakfast, lunch, dinner, and snack dishes, with cost per serving and nutrition analysis information; and
Nutrition education and cooking demonstration videos (DVD/CD).

Here is an interview of Mr. Kapur about the EatingRightWhenOurBudget’sTight™ Program on Sacramento, California’s KTXL-TV:

Center Opens to Help Develop Renewable Energy Solutions in West Africa

2010-08-05T18:32:00.000-07:00

Among the many challenges facing Africa is having regular access to electricity, which is necessary for commerce, education and general development purposes. While Africa possesses vast sources of renewable energy, the current sources of energy for millions of Africans stem from fossil fuels or large-scale hyrdo dams that dramatically disrupt fragile ecosystems. Therefore, I was pleased to read the United Nations Industrial Development Organization (UNIDO) announcement that a regional center to help develop the renewable energy potential for West Africa opened in Cape Verde. (Photo of a wind farm in Cape Verde: Martin Lugmayr/UNIDO)

Based in the Cape Verde capital of Praia and supported by UNIDO and the Government of Austria, Cape Verde and Spain, the Centre for Renewable Energy and Energy Efficiency (ECREEE), a specialized agency of the Economic Community of West African States (ECOWAS) “will help develop renewable energy and energy efficiency markets in West Africa, in policy and capacity development and quality assurance, in designing financing mechanisms, and implementing demonstration projects with potential for regional scaling-up.”

“The current energy systems in the ECOWAS region are failing to support the growth prospects of the over 262 million inhabitants, especially the needs of the poor. The creation of ECREEE is a central milestone in efforts to accelerate the deployment of renewable energy and energy efficient technologies and services in the region,” said Yoshiteru Uramoto, Deputy to UNIDO’s Director-General. “Investing in renewable energy systems and introducing energy efficient technologies will contribute to the region’s economic and social development without harming the environment,” he added.

I am familiar with Spain’s advances in renewable energy and it is encouraging to see countries like Austria and Spain provide financial and technical assistance to programs such as ECREEE, and their willingness to export technology to developing countries. Technology sharing from industrialize nations is vital to achieve sustainable development in the world’s most underserved countries. (Photo of wind farm in Andalucía, Spain: Beatriz Feichtenberger/EXTENDA)

UNIDO’s July 6, 2010 announcement further explains, “Estimates suggest that a total of 23,000 MW of large and small hydroelectric potential is concentrated in five of the ECOWAS Member States, of which only 16 per cent has been exploited. There is good potential for all forms of bioenergy. Traditional biomass is already the main source of energy for the poor majority and accounts for 80 per cent of total energy consumed for domestic purposes. There are also considerable wind, tidal, ocean thermal and wave energy resources available. The region has vast solar energy potential. UNIDO has a number of projects in Africa where renewable energy sources like small hydro, biomass gasification, wind energy, solar thermal and photovoltaic, are used to promote the development of small industries, particularly in rural areas, that contribute to growth and poverty reduction.”

Google Makes Direct Purchase of Wind Energy in its Effort to Become Carbon Neutral

2010-07-21T01:53:00.000-07:00

On July 20, 2010, through its official blog, Google announced it “just completed a substantial 20-year green Power Purchase Agreement that allows us to take responsibility for our footprint and foster true growth in the renewable energy sector. On July 30 we will begin purchasing the clean energy from 114 megawatts of wind generation at the NextEra Energy Resources Story County II facility in Iowa at a predetermined rate for 20 years.” This deal is the first by Google Energy LLC, an entity formed in December 2009 that allows Google to procure large volumes of renewable energy by participating in the wholesale market. This is a significant step in the Google’s effort to voluntarily become carbon neutral. (Photo: Google)

In explaining the complex deal, Google says, “Buying renewable energy directly from the developer impacts the development of renewable energy projects in ways that are more meaningful than the purchase of Renewable Energy Certificates (RECs) from third parties. RECs allow energy consumers to identify and track power made from eligible sources of renewable energy. They have value and are typically bought and sold independently of the electricity from which they are generated.”

Specifically to this deal, Google is purchasing renewable energy directly from the wind farm. Since they cannot use this energy directly, they will resell “it back to the grid in the regional spot market – but retiring the RECs associated with the power,” according to Mountain View, California-based company. “By obtaining RECs through the purchase of green power, our deal has a greater impact on the renewable industry than simply buying ‘naked’ RECs from third parties; our long-term commitment directly frees up capital for the developer to build more wind projects.” This deal will allow Google to obtain enough power to supply several data centers.

It will be interesting to see how successful Google will be in achieving their goal of becoming carbon neutral. This could be a model for other tech companies that use large amounts of power to run their data centers. Is this a sustainable model for Google? What methods are other companies using to reduce their carbon footprint?

Manufacturing Ethical Clothing in Africa

2010-07-14T02:42:00.000-07:00

PRI’s “The World” produced a report about a fair-trade clothing factory is the West African country of Liberia, which is recovering from a 14 year civil war. With an estimated unemployment rate to be as high as 80 percent, there is a great for job growth should Liberia maintain peace in the long-term. The World’s Jason Margolis visited a sewing factory in Liberia’s capital of Monrovia that is making t-shirts bound for the United States. With a high unemployment rate, it is easy to take advantage of people by employing them in sweatshops with working hours beyond reasonable limits and paying low wages. (Photo: PRI)

Chid Liberty, who owns the t-shirt factory, was born in Liberia, but his family fled to the United States after a military coup in 1980. With Liberia’s civil war over, Mr. Liberty “decided he wanted to return to his native country and help it rebuild,” explains Mr. Margolis. “Two years ago, Mr. Liberty decided it was finally safe to return. And when he started his apparel company, he was determined to make it good for the workers. He says he’ll take no profits from the Monrovia sewing project. He earns his living through a trading business back in the States. Liberty says all future earnings in Monrovia will be put into a fund.” Mr. Liberty says that “these women actually decide where that money goes in terms of building schools, roads, health clinics in their communities.”

There is value in placing a fair trade label on these t-shirts, which makes good business sense. Most of the women being trained at the factory used to be tailors. “But like Eliza Jones, they left the freedom of their shops for the shackles of 9 to 5 employment,” Mr. Margolis reports. “Now she gets paid every month, $100. That’s $30 dollars more than an average civil servant makes in Liberia. The women also get medical insurance and a monthly bag of rice.”

In order for Mr. Liberty’s factory to have the “fair trade” designation, it must comply with 90 standards prescribed by TransFair USA, a 501(c)(3) nonprofit organization based in Oakland, California. TransFair USA’s standards address child labor, forced labor, health and safety, working hours, and wages. According to its website, TransFair USA is one of twenty members of Fairtrade Labelling Organizations International (FLO), and the only third-party certifier of Fair Trade products in the United States. They audit transactions between US companies offering Fair Trade Certified™ products and the international suppliers from whom they source, in order to guarantee that the farmers and farm workers behind Fair Trade Certified goods were paid a fair, above-market price. In addition, annual inspections conducted by FLO ensure that strict socioeconomic development criteria are being met using increased Fair Trade revenues. Regarding Mr. Liberty’s factory, a full West African supply chain is utilized where the cotton is grown in Mali and Burkina Faso, it is shipped to Morocco where it is spun into yarn and fabric, and then sewn in Liberia.

The challenge in manufacturing or growing fair trade products is that meeting the standards often translates to higher costs in producing the product. These costs are almost always passed along to consumers and while many consumers would pay more for a fair trade product, their purchasing habits may not represent their standards during tough economic times. TransFair USA’s founder and president Paul Rice says that people were skeptical when he began his organization a decade ago selling fair trade bananas and coffee. Mr. Rice notes that grocery stores like Whole Foods has created a niche providing fair trade products to their consumers who are willing to pay a higher price and this concept has expanded to other retailers not typically known for selling fair trade products. “But who thought that fair trade would work in Dunkin Donuts and Walmart? Well lo and behold, Dunkin Donuts, Walmart and bunch of others have put fair trade products out there. And they’re selling very, very well.”

I would like to hear from you: Are you willing to pay a high price for a fair trade product? Has the economic recession changed your purchasing habits for fair trade products?

Doing Business in a Poor South African Neighborhood

2010-07-06T23:34:00.000-07:00

PBS Newshour aired a segment on July 5, 2010 about the efforts of a South African company, Dabba Telecom, which is selling mobile phone and Internet services in one of Johannesburg’s poor neighborhoods. Dabba’s Rael Lissoos says less than one percent of households in South Africa can afford landlines. Given the high cost, people are forced to use prepaid cell phones at rates three times what Americans pay for a similar service, even though South African earn significantly less. Moreover, as explained by Newshour’s Fred de Sam Lazaro, “Lissoos says the huge fees to connect or terminate calls to even local phone networks hurt South Africa’s competitiveness against countries with much lower telecom rates, like India and China.”

Beyond becoming more competitive with other emerging or developing nations, broadening access to cheaper mobile and Internet services helps bridge the digital divide that prevents people from gaining the skills required to compete in a global economy. In addition, companies are formed and jobs created that help stimulate the economy for individuals and entire communities including those living in poverty. The news segment highlights a South African entrepreneur, Collins Moyo, who owns two Internet cafes. Mr. Moyo claims that without Dabba’s lower connection rates, he would have no profit. “If, say, I can pay 10 rand to telecom, maybe Dabba, I can pay two rand, so I’m saving eight rands.” He says the 80 percent savings is allowing him to expand to a third store.

The most remarkable point of the story is the fact the private sector, not the government, is increasing the Internet footprint to an underserved population. For developing countries like South Africa, people must have regular access to modern information and communication technology devices and services. Efforts like Dabba Telecom should be replicated in other developing countries. You can watch the Newshour segment by clicking on the link below:

Post-Disaster Recovery through Art

2010-06-12T01:52:00.000-07:00

When people ask me about Haïti, I often respond that the Caribbean country possesses a great uniqueness in its history (gained independence as a free slave nation in 1804), language (Creole) and culture (art, religion, fashion, etc.). While I can never claim to be an art critic, I certainly have an appreciation for the different art genres that make each country unique and the art I have seen during my visits to Haïti are some of the most unique pieces I have encountered during my travels around the world. (Photo: Maggie Steber for The New York Times)

Ms. Kate Taylor wrote an article for The New York Times about restoring murals in the Episcopal Holy Trinity Cathedral, which is located in Haïti’s capital of Port-au-Prince. “Haitian artists and cultural professionals have been conducting informal salvage operations for the past four months,” explains Ms. Taylor. “But the Americans are bringing conservation expertise — there are few if any professionally trained art conservators in Haiti — and special equipment, much of it paid for by private money.”

Conservators “visited the ruins of the Musée d’Art Nader, a private museum that before the earthquake housed 12,000 paintings and sculptures by 20th-century Haitian masters like Hector Hyppolite and Préfète Duffaut, thousands of which were either destroyed or badly damaged when the museum collapsed. They also saw what was left of the Centre d’Art, a workshop where many of those artists trained in the 1940s and 1950s, which also collapsed. In the weeks after the earthquake, volunteers pulled thousands of paintings from the wreckage, which were stashed inside two storage containers parked in the sun in front of the ruined building.”

A recent news-magazine program, “UN 21st Century,” also highlighted the earthquake’s impact on Haïtian artists. Not only did thousands of dollars worth of art get destroyed in the January earthquake, but the ability to export the art to global markets has greatly diminished. You can watch the episode in its entirety below:

However, all is not lost and there is an opportunity for you to help Haïtians by purchasing their unique artwork. My friend, Alyssa Johnson, wrote an entry on this blog about the uniqueness of Haïtian art and how artists are able to sell their work and generate income. Alyssa is owner of Splash of the Caribbean, a Seattle-based Caribbean art import company that purchases art directly from artists located in Haïti and throughout the Caribbean. You can make your purchase to help Haïtian artisans by clicking here or emailing oroazulllc@gmail.com. For disclosure purposes, I am not receiving compensation or commission on any art sales. (Photo: Alyssa Johnson)

Should I Buy a Drink or Send my Child to School?

2010-06-03T03:24:00.000-07:00

“There’s an ugly secret of global poverty, one rarely acknowledged by aid groups or U.N. reports. It’s a blunt truth that is politically incorrect, heartbreaking, frustrating and ubiquitous: It’s that if the poorest families spent as much money educating their children as they do on wine, cigarettes and prostitutes, their children’s prospects would be transformed. Much suffering is caused not only by low incomes, but also by shortsighted private spending decisions by heads of households.” This comes from Nicholas D. Kristof’s op-ed in The New York Times on May 22, 2010.

Mr. Kristof cites examples of parents unable to pay their housing rent, mosquito nets that help combat malaria or school fees for their children, but they are spending scarce financial resources on alcohol, cigarettes, and prostitutes. His also op-ed refers to a study by two Massachusetts Institute of Technology economists, which claim that “the world’s poor typically spend about 2 percent of their income educating their children, and often larger percentages on alcohol and tobacco: 4 percent in rural Papua New Guinea, 6 percent in Indonesia, 8 percent in Mexico. The indigent also spend significant sums on soft drinks, prostitution and extravagant festivals.”

I know this issue extends beyond the developing world to industrialized nations. The global solution lies within financial education. Furthermore, social services must be offered for people to overcome their addictions to drugs and alcohol. With respect to financial education, there is evidence that women tend to be more responsible when it comes to money management and initiatives implemented by nongovernmental organizations, government agencies, and the private sector should be tailored to further support this trend.

Another solution lies within microsavings, which are small deposit accounts. Microsavings accounts operate similar to a conventional savings account, but the former are designed for smaller amounts of money. Pairing microsavings accounts with financial education programs will promote wiser spending decisions by parents, which will result in long-term sustainable development.

iGorilla: A Mobile App to Help Save African Gorillas

2010-05-22T21:12:00.000-07:00

What if there was a way to help save the African gorillas with your mobile phone? iGorilla, available for the iPhone and iPad, allow users to follow the lives of gorilla families in Virunga National Park’s remote forests. Through the Apple App Store, iGorilla costs $4.00, with $2.80 going toward supporting the efforts of preserving the natural habitat of the park, which is located in the Democratic Republic of Congo and declared a UNESCO World Heritage Site in 1979. Upon downloading the app, users are able to choose a gorilla family, learn more about individual members and follow their lives through reports, photographs and videos. (Photo: gorillacd.org)

AppleiPhoneReview.com provides a thorough review of the iGorilla app. The review notes that a mobile device app is a great way for nonprofits to engage with their donors who are on the go. “Although not the first charity-based iPhone app, iGorilla is a good model for savvy organizations that see the increasing relevance of the mobile web.” In addition to engaging with donors, mobile apps provide an opportunity for nonprofits to tell their story and promote operational transparency and financial accountability.

The review also notes a few shortcomings of iGorilla. “What is sorely missing from this app is social media integration. The Gorilla.cd website gives visitors the opportunity to share blog posts, videos and pictures on Facebook and via email, but the iPhone app lacks this social sharing capability. It would also be great to see the park add features to give users more opportunities/reminders to donate. What if I was able to get a pop-up notification each time a post relating to my gorilla family was added? What if blog posts outlined the problem and exactly what materials are needed to fix it, then offered a chance to donate funds for these specific items. This would contribute to the transparency that the park has already cultivated on its website, where people can pitch in to specifically purchase petrol, sacks, and support for gorilla orphans as well as park rangers.” (Photo: Juan Pablo Moreiras/UNESCO)

I invite readers of this blog to share their ideas on how can a nonprofit organization broaden its footprint through mobile apps. What are some of the other organizations using mobile apps?

The Linkbook: South Africa's Latest Low-Cost Compact Computer

2010-05-13T22:55:00.000-07:00

South Africa-based Vodacom announced the launch of the Linkbook, a low-cost compact computer designed specifically to provide users with simple and affordable Internet access. According to company’s press release, “The Linkbook’s operating system is geared primarily towards a user-friendly web experience; from email to social networking and browsing, as well as basic Open Office - everything a business entrepreneur, student or first-time PC user could need in a computer. Everything works off the desktop - including shortcuts to popular local online content and e-commerce websites - making it the most intuitive, simple to operate device of its kind available anywhere in the world.” (Photo: Vodacom)

The Linkbook, which has an embedded SIM card, as well as two USB ports, will be available on a 24-month contract at a subscription fee of R199 per month, including a monthly 300 MB data bundle, from participating Vodacom outlets, nationwide. The Linkbook website explains, “With an embedded HSDPA module for totally wireless internet connectivity, the attractively designed Linkbook is compact in size, has advanced design functionality, a user-friendly interface and the fact that everything works off the desktop - including easy-to-navigate shortcuts to popular online content and e-commerce web sites - makes it the most intuitive, simple to operate device of its kind.”

The Linkbook is targeted for markets where low PC penetration rates exist. While I have not tested the low-cost computer, I support any product that focuses on increasing Internet accessibility, thus closing the digital divide that exists in emerging and developing countries. In order to become a productive participant as an industrialized nation, low-cost computers and smartphones are essential for people to connect with a vital service, the Internet, which is used as an educational, economic, and health care tool to promotes sustainable development.

South Africa Finally Recognizes its AIDS Crisis

2010-05-02T12:08:00.000-07:00

For too long, the South African government has largely ignored the humanitarian and economic problems caused by AIDS. While the African continent in segmented in clearly defined regions, each having its own prescribed strengths and weaknesses, South Africa is widely considered the continent’s leader as the wealthiest country, both in gross domestic capita (GDP) per capita and in total GDP. However, as the country that produces 22 percent of Africa’s GDP, according to the International Monetary Fund, South Africa has historically failed to take a leading role in addressing its AIDS problem. Therefore, it gives me great encouragement to learn about that the South African government is increasing its efforts to combat AIDS. (Photo: Pieter Bauermeister for The New York Times)

Celia Dugger’s New York Times article published on April 15, 2010 explains that South Africa’s “undertaking will be expensive and difficult to pull off, but in the past month alone the government has enabled 519 hospitals and clinics to dispense AIDS medicines, more than it had in all the years combined since South Africa began providing antiretroviral drugs to its people in 2004, South African health officials said. To accomplish this, the government has trained the hundreds of nurses now prescribing the drugs — formerly the province of doctors — and will train thousands more so that each of the country’s 4,333 public clinics can dispense AIDS medicines, a step Health Minister Aaron Motsoaledi called essential to combating ‘this monster amongst us’ in a country short of physicians.”

By hosting the 2010 FIFA World Cup, South Africa will attempt to demonstrate itself as a strong player in today’s increasing global world. More important than the hosting one of world’s largest sporting events, South Africa is finally making significant efforts to fight the deadly disease that has caused South Africa to serve as a country to be “most severely affected by the AIDS epidemic, with the largest number of HIV infections in the world,” according to the South Africa 2010 Country Progress Report.

The Country Progress Report further explains, “Heterosexual sex is recognized as the predominant mode of HIV transmission in the country followed by mother-to-child transmission, and drivers of the epidemic include migration, low perceptions of risk, and multiple concurrent sexual partnerships.” While I do not want to diminish the essential efforts of South Africa’s strategy to treat AIDS, there must be an equally concentrated effort to teach prevention among adults and children alike. In order for emerging countries like South Africa to have a significant role in the global economy, it must maintain an educated and healthy workforce. South Africa has a great incentive to reduce its HIV infection rate, which now occurs at 1,500 per day, according to the health minister, before treatment costs rise further.

IBM and Saudi Arabia Government to Collaborate on Developing New Technology to Reduce Water and Energy Costs

2010-04-18T00:44:00.000-07:00

On April 8, 2010, IBM and the King Abdulaziz City for Science and Technology (KACST), Saudi Arabia’s national research and development organization, “announced a research collaboration aimed at creating a water desalination plant powered by solar electricity, which could significantly reduce water and energy costs.” (Photo of a concentrated photovoltaics unit at IBM Research courtesy of IBM)

IBM’s announcement explains that “a new, energy efficient desalination plant with an expected production capacity of 30,000 cubic meters per day will be built in the city of Al Khafji to serve 100,000 people.” Moreover, “KACST plans to power the plant with the ultra-high concentrator photovoltaic (UHCPV) technology that is being jointly developed by IBM and KACST; this technology is capable of operating a CPV system at a concentration greater than 1,500 suns. Inside the plant, the desalination process will hinge on another IBM-KACST jointly developed technology, a nanomembrane that filters out salts as well as potentially harmful toxins in water while using less energy than other forms of water purification.”

Reverse osmosis and thermal technology, operating at a cost ranging from 2.5 to 5.5 Saudi Riyals per cubic meter, are the two most commonly used methods for seawater desalination, according to KACST scientists. The goal of this project is to significantly reduce the cost of desalinating seawater at these plants by combining solar power with the new nanomembrane.

“Because over 97 percent of the world’s water is in the oceans, turning salt water into fresh water cost effectively and energy efficiently offers tremendous potential for addressing the growing worldwide demand for clean water. One of the most efficient means of desalination is reverse osmosis. But there are obstacles to unlocking this reserve -- principally bio-fouling, degradation by chlorine and low flux challenges. The KACST / IBM joint research focuses on improving polymeric membranes through nanoscale modification of polymer properties to make desalination much more efficient and much less costly.”

AT&T ZERO Charger Helps End Wasted Electricity and Reduce Landfill Waste

2010-04-06T04:05:00.000-07:00

According to the United States Department of Energy, the total amount of electricity that flows through internal and external power adapters is nearly 470 billion kWh per year or about 12 percent of the nation’s annual electricity consumption. During the process these devices consume about 120 billion kWh per year of electricity and turn it into heat, costing the nation over $12 billion in electric bills. Continuing the theme of energy conservation in this blog, AT&T announced that it will make available in its U.S. stores in a mobile phone charger that “does not waste power when left plugged in, and improves charging efficiency when powering a device.” (Photo: AT&T)

According to a March 17, 2010 press release, “The AT&T ZERO Charger will also make life easier for customers, with a ‘block and cable’ design for maximum interchangeability, allowing them to use the same charger for future handsets and will, over time, cut the number of chargers produced, thus reducing future landfill waste.” Partnering with Irwindale, California-based Superior Communications, “the AT&T ZERO charger works by automatically sensing when a mobile phone is not plugged up to the charger and cutting the power supply from the wall socket. The charger will be sold in packaging with 100% recycled paper. AT&T recently announced a transition to smaller and more eco-friendly packaging for the wireless device accessories sold in AT&T stores. This change will eliminate more than 60 percent of the paper and more than 30 percent of the plastic previously used for AT&T’s accessory products.”

AT&T notes that when conventional chargers are left plugged in, even when not actively charging a mobile device, can draw as much as 5 to 20 times more energy than stored in the battery. “Adding to its efficiency, the AT&T ZERO Charger can be used to charge many existing and future handheld devices — all from one outlet,” explains a Superior Communications press release. “Over time, this will help reduce the number of chargers produced and discarded to minimize impact on the environment.” This innovative device has a 5-star efficiency rating, which exceeds the standards set by GSMA and the ZERO charger is AT&T’s first step toward full GSMA compliance. (Photo: Superior Communications)

Social Responsibility: One Tasty "Peace" at a Time

2010-03-27T01:30:00.000-07:00

As I discussed in the previous blog entry, I had the pleasure of attending the Social Venture Capital/Social Enterprise Conference in Miami Beach, Florida. Among the approximately 110 panels during the three-day conference, there was a session titled “Women Social Entrepreneurs in Latin America,” featuring three successful entrepreneurs. One panelist, Sarah Endline, gave a presentation about sweetriot, a New York City-based company that retails natural cacao nibs sourced directly from Latin America. These cacao nibs or “peaces” are genetically modified organism-free, dairy-free, kosher, and gluten-free.

During her presentation, Ms. Endline’s stated that sweetriot is not focused on financial returns, per se, but her company is guided by a social mission that people can change the world. She explained that sweetriot’s social responsibility is composed of three key areas: Product, People, and Partnerships. In addition to using premium, high quality, and all-natural ingredients, the socially responsible company’s values include fair trade with developing countries, celebrating culture and diversity through their products, and creating sweet experiences among customers, partners, and employees. In Ms. Endline’s words, “sweetriot is a joyful celebration of culture, diversity, and understanding — it is the opposite of a civil riot, which is dangerous, violent, and oppressing.”

It is also worth noting that sweetriot is offsetting all of its employee travel and office emissions by partnering with Carbonfund.org. Moreover, customers can join the effort by offsetting their shipment’s CO2 emissions by selecting an option through the ordering process that will make a $.50 contribution toward climate-friendly projects such as energy efficiency, renewable energy, and reforestation. “This effectively offsets the carbon dioxide emitted by delivery vehicles when shipping from our warehouse to your front door,” explains sweetriot’s website. Through the Carbonfund.org’s CarbonFree® Partner program, sweetriot claims to be “the first chocolate retailer to offer customers a chance to improve the world through carbon offsets.”

At the conclusion of the panel, Ms. Endline distributed samples of sweetriot’s flavor 50—roasted cacao nibs covered with 50 percent dark chocolate packed in one-ounce tins. The recyclable and reusable tins feature with works from various artists and my tin features the work of Callie Danae Hirsch, an artist residing in Brooklyn, New York. What about the taste? I find that the cacao nibs are tasty and with each tin holding a serving size of one once (or two spoons), I consumed mine very quickly. For disclosure purposes, except for the one complimentary tin, I am not receiving any compensation for this blog entry nor do I have a business relationship with sweetriot.

A Three-Day Discussion Regarding Social Venture Capital and Social Enterprises

2010-03-22T23:44:00.000-07:00

Through the efforts of the Florida Association for Volunteer Action in the Caribbean and the Americas, Inc. (FAVACA), a Florida-based nonprofit organization serving the needs of the people in Haïti and throughout the Caribbean for over 25 years, I had the pleasure of attending the Social Venture Capital/Social Enterprise Conference Miami (SVC/SE, Miami 2010), which was held in Miami Beach, Florida from March 17-19, 2010. Part of the SVC/SE, Miami 2010 conference was the Sustainable Haïti conference, referred as a “conference within a conference,” which brought together social entrepreneurs and social investors, U.S. government officials, nongovernmental organizations (NGOs), Haïtian Diaspora, Haïtian government officials, faith-based groups, and corporations with a presence in Haïti. The purpose of SVC/SE, Miami 2010 was to promote economic development within Latin America and the Caribbean by utilizing social venture capital and social enterprise. Over 700 people attended from 30 plus countries and approximately 240 speakers participated on 110 panels and workshops during the three day event. I participated on two panels: Social Entrepreneurship in Post-Earthquake Haïti and Social Venture Capital as a Tool for Growth.

There were several excellent discussions that took place as a result of well-planned presentations or through side conversations during session breaks. I made several points during my two presentations, but the one that garnered the most responses is the failure of the NGOs’ ability to achieve long-term solutions. (I recognize that not all NGOs are ineffective, but those operating with clearly defined deliverables and benchmarks for success are too few in the world.) While many NGOs attending the conference agree that the aid model is largely ineffective, I find their reluctance to reform their respective operating model very disturbing. To become effective in eradicating poverty in the developing world, NGOs should partner with the private sector in implementing a long-term sustainable solution. For small and medium-sized enterprises (SMEs) with operations in a developing country, I recommend that NGOs collaborate with these businesses by providing job training, education, health and essential life skills that will ensure that workers remain healthy and properly trained to participate in a formal economy. These skills will pass from generation to generation, thus breaking the cycle of poverty.

While I have addressed my criticisms of the microfinance model implemented by most microfinance institutions (MFIs) in this blog, I focused my presentations on the need for job creation in addition to supporting entrepreneurship through microfinance. I recognize there are several benefits of microfinance in some of the world’s most undeveloped regions, but there are not enough measured results to justify the amount of money invested into MFIs. Microloans provide short-term debt financing, but does not necessarily create long-term enterprises. In addition to providing working capital to entrepreneurs, investments in developing nations should focus on job-creation through equity financing (microcapital). Moreover, I recommend that MFIs work with businesses in industrialized markets by creating a partnership strategy to open an office or plant with local populations in developing nations, thereby establishing a partnership that many underserved entrepreneurs. (Photo: Benjamin Wilkinson/HAITI ONWARD)

SMEs in industrialized markets should receive microcapital from MFIs to help stimulate business expansion into developing nations. Three conditions must be stipulated with these investments: SMEs must use local populations and provide fair compensation, implement microsavings mechanisms for the employees, and establish a health insurance program with NGOs or for-profit insurance providers. The number of employment opportunities in developing nations will grow exponentially with strategic partners located in industrialized markets.

Other speakers and panelists talked about the need to establish a bond market in countries like Haïti to finance infrastructure development, credit ratings for investment instruments to help developing countries modernize their financial systems and compete globally, and establish full currency convertibility measures. One of my fellow panelists noted that every developing country has a blue-chip company. More collaboration among the governments of developing nations, NGOs, and the local population should take place to attract additional blue-chip enterprises. Furthermore, there should be a better focus on establishing business incubators to create small and medium-sized enterprises and NGOs and the private sector must work together in establishing a legal framework that includes a judicial process for business disputes, fair employment laws, and regulations to protect natural resources.

I want to publicly thank FAVACA for their generous sponsorship of the SVC/SE, Miami 2010 and I want to express my gratitude and appreciation to John Rosser of DVK L3C for organizing this important event, which was very timely considering Haïti’s devastating earthquake that occurred this past January. I am pleased to be a participant and honored to share the podium with a distinguished group of speakers with a wide array of knowledge and experiences.

2010 Global Social Entrepreneurship Competition Presents Innovative Solutions

2010-03-15T23:15:00.000-07:00

I had the pleasure to serve as a judge in the 2010 Global Social Entrepreneurship Competition (GSEC) organized by the University of Washington's Global Business Center at the Michael G. Foster School of Business. The purpose of GSEC is to engage “creative minds around the world to encourage bolder and less conventional business solutions to global poverty.” US$18,000 in prize money was available for the sixth annual competition. (Photo: Nuru Light)

GSEC plans are judged on three criteria: (1) effect on the quality of life and poverty alleviation in the developing economies, (2) financial sustainability, and (3) feasibility of implementation. 161 applications were submitted from 36 countries and this year’s five finalist teams traveled from Bangladesh, Canada, China, India, Rwanda, and the United States. Unlike my role of judging the semi-final round in 2009, I participated in this year’s GSEC as a judge in the Investor’s Choice Award, evaluating each team’s brief elevator-pitch and trade show exhibit.

The Grand Prize of $10,000, sponsored by Microsoft, was awarded to Nuru Light, which provides a solution to the lighting crisis in Rwanda. Through the POWERCycle, the Nuru Light (Nuro means light in Swahili) provides an affordable, safe, and clean lighting solution to replace kerosene in households without electricity. Nuru lights can be recharged quickly via the world’s first pedal generator. In addition to the Grand Prize, Nuru Light was the winner of the Investor’s Choice Award of $500, People’s Choice Award, and the second place Global Health prize of $2,000 for the health benefits of POD lights including decreased exposure to particulate matter and lowering the risk of kerosene burning. Team Nuru was represented by Charles Ishimwe from Adventist University of Central Africa in Rwanda and Max Fraden of the University of Massachusetts Medical School. (Photo: University of Washington)

The University of Washington’s Department of Global Health sponsored the Global Health Prize of $5,000, which was awarded to TouchHb, an affordable, prick-less anemia scanner used by low-skilled village health workers in rural India that measures, helps diagnose, monitors and screens for anemia. Team TouchHb consists of two doctors, Yogesh Patil and Abhishek Sen, from the Maharashtra University of Health Sciences in India. (Photo: University of Washington)

For this year's GSEC, judges spontaneous created an award and personally donated a total of $3,000 for the Judges’ Choice Award, which Malo Traders received for their business plan that provides technological consultation that minimizes risks of post-harvest losses for small-scale rice farmers in the West Africa nation of Mali. Team Malo consists of two brothers who grew up in Africa and are now studying in the United States: Mohamed Ali Niang is a student at Temple University Fox School of Business in Philadelphia, Pennsylvania and Salif Romano Niang, a doctorate student in political science at Purdue University in West Lafayette, Indiana. (Photo: University of Washington)

Here is a video with the 2010 winners introducing their projects:

The Peepoo: A Biogradable Single-Use Toilet for Urban Slums

2010-03-11T07:33:00.000-08:00

The New York Times published an article written by Sindya N. Bhanoo about the Peepoo, “a biodegradable plastic bag that acts as a single-use toilet for urban slums in the developing world. Once used, the bag can be knotted and buried, and a layer of urea crystals breaks down the waste into fertilizer, killing off disease-producing pathogens found in feces.” (Photo: Peepoople)

Developed, produced, and distributed by Stockholm, Sweden-based Peepoople AB, “The Peepoo is in the form of a slim elongated bag size 14 x 38 cm,” explains the company’s website. “Within the bag there is a thinner gauze that measures 26 x 24 cm. The inside of the Peepoo bags is coated with a thin film of urea. Without sacrificing ergonomic function the bag’s design is adapted in every way so that it might be manufactured at as low a price as possible and sold to the groups with [the] weakest purchasing power in the world.” After successfully testing in Kenya and India, the Peepoo toilet is scheduled to be mass produced and available for delivery in summer 2010 with a price point of 2 or 3 cents each, which is comparable to the cost of an ordinary plastic bag.

One benefit of the Peepoo toilet is its portability and small size, weighing less than ten grams. Peepoo bags are odor free for at least 24 hours after use and can thus be stored in the immediate environment. Moreover, the Peepoo is one of few sanitation solutions which require no water and the only water required is to wash the hands after use. This means that the traditional link between water and sanitation has been cut. A used Peepoo bag is clean to handle. It has become a waste that neither smell nor is dirty to handle and collect.

The bag is made of a high performance degradable bioplastic which meets European Union standards. This means that the plastic not only disintegrates, but also that the molecules are broken down into carbon dioxide, water and bio-mass. 45 percent of the plastic used in the Peepoo is produced using renewable materials and through research and development, the company intends to find a solution that is 100 percent renewable. The bioplastic comprises a mixture of aromatic co-polyesters and polylactone acid (PLA), with small additives of wax and lime. PHB represent alternative bioplastics. (Photo: Peepoople)

This innovative product does not require infrastructural solutions for implementation (i.e., the construction of buildings or pipes), therefore reducing investment costs. The company explains that the “Peepoo can be simply distributed and can thus meet the enormous demand in a highly efficient manner.” Comparing investment costs for different sanitation solutions are listed below to illustrate the product’s financial value.

Local costs for installation (not including use, maintenance costs, water costs and emptying):

Flush toilet connected to sewer or septic tank, 400-1,500 USD
Urban dry or wet Eco San, 675-1,500 USD
Condominal sewers, 75-600 USD
Dry vault urine diversion, 35-400 USD
Improved pit latrine or pour flush toilet, 40-260 USD
Basic pit latrine, 10-50 USD
Soil composting ecosan, 10-40 USD
Communal toilet/latrine (50 persons per seat), 12-40 USD
Peepoo bag, 0 USD

The need for proper sanitation is greatly needed in the developing world where, according to United Nations figures, an estimated 2.6 billion people, or about 40 percent of the earth’s population, do not have access to a toilet. This creates a public health crisis where open defecation contaminates drinking water, “and an estimated 1.5 million children worldwide die yearly from diarrhea, largely because of poor sanitation and hygiene,” explains The New York Times article. “To mitigate this, the United Nations has a goal to reduce by half the number of people without access to toilets by 2015.”

Student Loans as Development Aid

2010-03-07T22:18:00.000-08:00

While I am a supporter of the microfinance concept, namely, the access of basic financial services such as loans, savings, money transfer services and microinsurance by underserved populations, I am critical of the application strategies employed by microfinance institutions (MFIs). I am pleased, however, to discuss the workings of an organization that is effectively administering small loans to help students in the developing world achieve a college education or vocational training.

Vittana recognizes that the students benefiting from microloans ordinarily could not receive loans to finance their education from local banks. The Seattle, Washington-based nonprofit organization partners with local microfinance organizations to establish student loan programs—often providing the only access to college loans. Through Vittana’s website, individuals are able to lend $25 and $50 at a time to individual students. Currently, Vittana, which is an Indian word for “seed,” has active partnerships in five countries: Mongolia, Nicaragua, Paraguay, Peru and Vietnam.

I had the opportunity to attend an event organized by SeaMo in November 2009 that featured Vittana’s co-founder and chief executive officer, Kushal Chakrabarti. One issue Mr. Chakrabarti discussed was the focus to provide student loans rather than scholarships. He said, “Students do not want a hand-out, they want a hand up. A loan enables them to go to school without feeling beholden.” He explained that small monthly payments provide an easy way for students (borrowers) to repay the money. In fact, many students actually begin repaying ahead of schedule, which represents their personal drive for financial responsibility.

Recognizing the impact of education, Mr. Chakrabarti said, “Education is income generating; more than microfinance (small loans for entrepreneurs).” In the developing world, a college graduate can earn 200-300 percent more than they would have otherwise. However, there are less quantifiable measurements that have an equal impact to the college graduate, their family and surrounding community. Single mothers gain self-confidence by receiving a college education or vocational training. Not only is she acquiring the skills to obtain a skilled job with a higher income, but she is becoming a role model to her children and perhaps other single mothers in the community. Moreover, communities become stronger by having some of its residents possess an education in high-valued professions such as teaching, medicine, engineering or law.

During his presentation, Mr. Chakrabarti noted that the typical borrowers are 18-25 years old, loan amounts range from $500-$1,500 and repayment periods last from 6-24 months with a successful repayment rate of 97-98 percent. While the interest rates vary from region to region, Vittana’s partners usually charge a 10-15 percent annual rate. And to mitigate the loss of the loan, most partners require that a close relative co-sign on the loan. It is rare that a student is unable to repay the loan him or herself, but in the case that the student has difficulty making a payment, a parent, grandparent, or spouse will ensure that the student repays on schedule.

It is important to note that donors providing funds (loans) to students through Vittana are not making a charitable donation; the loan will be returned to the donor upon repayment by the student. Upon repayment, the donor will have the option keep their money or make a loan to another student. How does Vittana generate revenue? Although not required, many people make a donation beyond the loan amount help Vittana cover their costs. Vittana also received direct financial support from individuals and foundations such as the Peery Foundation, the Mitchell Kapor Foundation, and the Crystal Springs Foundation.

Here is a video that highlights Vittana’s operations through testimonials of students receiving loans through this innovative application of microlending:

The World’s First Bio-Sourced SIM Cards

2010-02-27T13:56:00.000-08:00

Gemalto, a digital security company, announced at the Mobile World Congress in Barcelona, Spain, the launching of a pilot of bio-sourced SIM (subscriber identity module) cards for SFR, a French mobile phone company with 20 million clients. Gemalto’s press release dated February 16, 2010, explains, “The bio-sourced SIM card is made from a new renewable material derived from corn, sugarcane or potato starch. This material is easily recyclable and compostable through small scale industrial units and reduces the global ecological footprint of the production process.”

The recyclable and compostable card body is made from plant-based bioplastics, which can be incinerated without emission of toxic fumes. The Amsterdam-based company says it also supplied SFR with packaging made from recycled paper and plant-based inks and SFR will begin distribution of the bio-sourced SIM cards to its customers this spring. This program is the first trial of bio-sourced cards in the world.

Worth noting is Gemalto’s effective tactics of incorporating environmental sustainability into the product’s value proposition. From the company’s website, here is a list of the product’s Operator Benefits and End-User Value (emphasis added):

Operator Benefits

Security: Ensuring SIM card safety

Eco-friendly: Fully committed to environmental protection

Brand: the perfect company brand and image booster

Competitive: Improving cost saving packaging solutions

Peace of mind: Gemalto manages complex logistic processes

End-User Value

Security guaranteed to the access of the PIN and PUK code

Simplified end user access and understanding to maximize the use of mobile services

2nd life for your product with re-usable packaging and card body: the gift concept!

E-Waste: A Small Component of the 2010 Olympic Medals

2010-02-23T21:09:00.000-08:00

Like many of you, I am enjoying watching the 2010 Olympic Winter Games that are taking place in Vancouver, British Columbia. There are reports about the unique design of the medals awarded at the 2010 Winter Games, but a sustainable component to these reports is worth discussing on this blog. Making Olympic and Paralympic history, the medals will be the first to contain metals recovered from end-of-life electronics (e-waste) otherwise destined for the landfill. The medals are comprised of metals provided by Teck Resources Limited (Teck). (Photo: VANOC)

In describing the process of making the metal into medals, Teck says, “Historically, metal for the medals has been sourced only from mineral deposits that are mined from the earth and refined for commercial use. Teck has created a recycling process to recover metal from end-of-life electronics (e-waste) such as TVs, computers and keyboards. This process provides a practical solution to the challenge of reducing the amount of e-waste material destined for landfills and is part of the company’s pursuit of sustainability—a core value that drives its approach to business.”

Furthermore, according to the Vancouver-based mining, mineral processing and metallurgical company, “Metal can be sourced from many manufactured metal products, including household appliances, electronics or cables. Teck’s process involves recovering metals contained in cathode ray tube glass, computer parts and circuit boards through smelting. The process involves shredding, separating, and heating of the various electronic components to recover a variety of metals.”

The gold, silver and copper used in the medals were recovered from e-waste and then combined with the metal from other sources for the medal production. The content of recovered metal from the e-waste material in the specific metals is: Gold: 1.52%; Silver: 0.122%; Copper: 1.11%. While the percentages of reused metals are minimal, manufacturing the medals with recycled metals creates an inspiring initiative to reducing the Olympic Games' carbon footprint.

In addition to providing the metals, Teck worked with Vancouver Olympic Committee (VANOC) and the Royal Canadian Mint in the development and production of the medals. Click here to watch a video, “The Making of the Vancouver 2010 Medals.”

EatWell: Building a Community through Mobile Phones to Live a Healthier Lifestyle

2010-02-20T19:53:00.000-08:00

A researcher at the Georgia Institute of Technology has created a system that allows community members to build a support system and live a healthier lifestyle by using mobile phones. According to news release dated February 17, 2010, “The system, known as EatWell, uses mobile phones to record and share audio stories with other members from their community. The idea is that people working together can encourage each other with their stories of how they’ve successfully overcome temptation in an effort to live a healthier lifestyle.” (Photo of Andrea Grimes courtesy of Rob Felt/Georgia Tech)

Presenting her research at the Conference on Computer Supported Work in Savannah, Georgia, Andrea Grimes, Ph.D. candidate in Georgia Tech’s College of Computing, said, “I wanted to make a system that was able to harness the community-held expertise, not just bringing in outside expertise. With mobile phones, I saw an opportunity to use technology to make that information even more visible.” Ms. Grimes conducted her pilot study with 12 participants from a working class background in Southwest Atlanta.

Georgia Tech’s announcement explains that Ms. Grimes “decided to create the system on a mobile platform because she knew it was a pervasive device that is owned by people from all income levels. She also knew that people could leave messages much faster than typing into a desktop computer or into the mobile phone would allow.”

“People talk about being engaged with the content in EatWell because they actually hear the emotion in people’s stories,” Ms. Grimes said. “They could hear the pride and excitement people felt when they tried a new smoothie recipe, or when this guy talks about trying out the veggie burger at Burger King and coming back later that day bringing his girlfriend.”

Ms. Grimes’ research produced some surprising results. One result is people reported feeling a connection with others in the study, although though they did not know the other participants. Another result is the transcriptions contained very little in the way of statements of encouragement or talk of collective action. Ms. Grimes explains, “Most of the research says that for you to have a strong thriving community there needs to be a lot of interaction between the community members. But from our study, we saw that people felt a sense of community even though there wasn’t a lot of interaction.”

Free Mobile Health Service for Pregnant Women, New Mothers Launches in U.S.

2010-02-09T23:27:00.000-08:00

Pregnant women and new mothers in the United States are now able to receive health information delivered to their mobile phones by text message at no charge through a public service program by a coalition of mobile phone service providers, health professionals, and federal, state, and local agencies. The White House Office of Science and Technology Policy’s (OSTP) press release explains, “The new program, called text4baby, is a free mobile information service that provides timely health information to women from early pregnancy through their babies’ first year. The service sends important health tips that are timed to the mother’s stage of pregnancy or the baby’s age.”

One of the primary objectives of text4baby is to improve prenatal and infant care by providing pertinent information to pregnant women and new mothers. OSTP says that “in the United States more than 500,000 babies – 1 in every 8 – are born prematurely and an estimated 28,000 children die before their first birthday, a rate among the highest in the industrialized world. Premature babies can face lifelong health and intellectual development problems.”

Providing women with information about prenatal care through text messages will, hopefully, reduce the risk of delivering premature babies. OSTP says that “medical expenses for babies born prematurely average about ten times those for babies born after a full-term pregnancy. All told, premature births cost the Nation tens of billions of dollars—at least $26.2 billion in 2005, according to the U.S. Centers for Disease Control and Prevention.”

How does text4baby work? Women who sign up for the service online or by texting BABY to 511411 (or BEBE for Spanish) receive three free SMS text messages each week timed to their due date or baby’s date of birth. The messages focus on topics critical to the health of moms and babies, which include: immunization, nutrition, seasonal flu, prenatal care, emotional well being, drugs and alcohol, labor and delivery, smoking cessation, breastfeeding, mental health, birth defects prevention, oral health, car seat safety, exercise and fitness, developmental milestones, safe sleep, family violence, and more. Text4baby messages also connect women to public clinics and support services for prenatal and infant care.

The OSTP announcement notes that several “U.S. government agencies are involved in the design, outreach, and evaluation of text4baby, and will serve women and babies who learn about their services through the program. These include the Department of Health and Human Services, the Department of Defense Military Health System, and the Office of Science and Technology Policy. Participating carriers include: Alltel, Assurance Wireless, AT&T, Boost Mobile, Cellular South, Cellcom, Centennial Cellular, Cincinnati Bell, Metro PCS, N-Telos, Sprint Nextel, T-Mobile, U.S. Cellular, Verizon Wireless and Virgin Mobile USA.” This represents a majority but not all mobile operators in the United States. Approximately 90 percent of all mobile subscribers in the United States are able are to receive the free text4baby messages.

The text messages were developed by the National Healthy Mothers, Healthy Babies Coalition with support from the Centers for Disease Control and Prevention and the Health Resources and Services Administration. Following message development, they underwent a vigorous review process by several government organizations including the Centers for Disease Control and Prevention, the Health Resources and Services Administration, the Center for Disease Control and Prevention, Health Resources and Services Administration, the Department of Health and Human Services, the Office on Women’s Health and the National Institute on Child Health and Human Development. Text4baby is an educational program of the National Healthy Mothers, Healthy Babies Coalition (HMHB), made possible through a public-private partnership that includes more than 100 entities.

The Gates Foundation claims that 10 million kids under the age of five died in 2005 and the United Nations International Telecommunications Union reported that the number of mobile cellular subscribers worldwide reached the four billion mark by the end of 2008, which represented over 60 percent of the global population. Given these statistics, I see great value in implementing a similar text message system to reduce the global infant mortality rate.

People in Burkina Faso to Receive Food Vouchers via Text Message

2010-02-04T22:43:00.000-08:00

On November 5, 2009, I wrote about United Nations World Food Programme (WFP) launching a pilot project that allows Iraqi refugees in Syria to receive food vouchers electronically via mobile phone text messages. Another example of using information and communications technology in delivering sustainable solutions to underserved populations may be found in a report by Voice of America’s Kate Thomas. Ms. Thomas writes about a joint project between the WFP and The Vodafone Foundation, which is the charitable division of the UK-based mobile telecommunications company “that will allow shopkeepers in” two towns “in Burkina Faso to manage food vouchers by text message.” (Photo: WFP/Eva Stoffels)

Approximately 30,000 people receive food vouchers in Burkina Faso. “Until now,” explains Ms. Thomas, “the hologram-imprinted vouchers were distributed to families who need them. They are then exchanged for goods in shops and shopkeepers are reimbursed in cash by the World Food Program once a month. If the pilot is successful,” she added, “shopkeepers will be able to validate the vouchers by cell phone on the spot. In theory the World Food Program would then be able to reimburse them the next day, either by bank transfer or by check.”

It would be useful to know how much money the WFP will save in using text messages for food vouchers rather than traditional paper vouchers. Shopkeepers having the ability to instantly validate vouchers via mobile phones will see a reduction of fraud and misuse of the vouchers. Furthermore, shopkeepers, getting reimbursed more quickly by the WFP, will be able to manage their inventory and control costs more effectively. Click here to listen to Ms. Thomas’ report.

Decade of Vaccines: Gates Foundation Pledges $10 Billion to Fight Childhood Diseases

2010-02-02T00:32:00.000-08:00

At the 40th annual World Economic Forum held in Davos, Switzerland, the Bill and Melinda Gates announced “that their foundation will commit $10 billion over the next 10 years to help research, develop and deliver vaccines for the world’s poorest countries,” according to a Gates Foundation press release. “The Gateses said that increased investment in vaccines by governments and the private sector could help developing countries dramatically reduce child mortality by the end of the decade, and they called for others to help fill critical financing gaps in both research funding and childhood immunization programs.”

The Seattle, Washington-based philanthropic organization said that it “used a model developed by a consortium led by the Institute of International Programs at the Johns Hopkins Bloomberg School of Public Health to project the potential impact of vaccines on childhood deaths over the next 10 years. By significantly scaling up the delivery of life-saving vaccines in developing countries to 90 percent coverage—including new vaccines to prevent severe diarrhea and pneumonia—the model suggests that we could prevent the deaths of some 7.6 million children under 5 from 2010-2019. The foundation also estimates that an additional 1.1 million children could be saved with the rapid introduction of a malaria vaccine beginning in 2014, bringing the total number of potential lives saved to 8.7 million.”

An article by Seattle Times writers Sandi Doughton and Kristi Heim says that the Gateses’ pledge “ranks as the biggest philanthropic pledge ever to a single cause….The $10 billion pledge represents a doubling of Gates Foundation spending on vaccines. The Chronicle of Philanthropy said the amount is more than the entire assets of the Ford Foundation, America's second wealthiest foundation — after Gates.”

The foundation’s announcement notes that the new funding “is in addition to the $4.5 billion that the Gates Foundation has already committed to vaccine research, development and delivery to date across its entire disease portfolio since its inception.” The foundation's initial vaccine investments created an organization called the Global Alliance for Vaccines and Immunisation, or GAVI, which was launched at the World Economic Forum ten years ago.

The GAVI Alliance, the Gates Foundation explained, “has reached 257 million additional children with new and underused vaccines, and prevented 5 million future deaths. In the coming years, GAVI will focus on rapidly introducing vaccines to tackle diarrhea and pneumonia.” Billions more are needed, however, “from other donors to achieve the goal of 90 percent coverage of childhood immunization. Critical funding gaps exist at GAVI and in the global polio and measles programs, and more support is needed for the research and development necessary to produce new vaccines.”

The Gates Foundation occasionally receives criticism for not doing enough to help impoverished adults in the developing world. Responding to this issue during the January 29, 2010 press conference, Melinda Gates said that the foundation, with the help of Warren Buffet’s financial support, contributed to the “Green Revolution” in Africa that increases the productivity of small farms, moving tens of millions of people out of extreme poverty and significantly reducing hunger. In addition, said Mrs. Gates, the foundation is supporting innovative microsavings programs to help those who do not have access to traditional financial services to deposit funds in safe and secure bank accounts. For additional information about the foundation’s support of microsavings, please read “Gates Foundation to Help Poor People Save Money.” The press conference may be viewed in its entirety in the video below:

worldeconomicforum03 on livestream.com. Broadcast Live Free

“Global Challenge” Competition to Reward Graduate Students for Developing Business Solutions that Support International Development

2010-01-30T23:32:00.000-08:00

College students worldwide are receiving an education not to solely benefit financially in a future career, but to make a social difference as well. Aspiring business leaders are reevaluating success not on the basis of a financial return on investment, but on the social return on investment and the impact on the environment and surrounding communities. And more than ever are we seeing the need to understand the critical role of the private sector in international development. The Global Challenge, a collaborative effort by the University of Maryland’s Robert H. Smith School of Business and the U.S. Agency for International Development (USAID), will reward graduate students from across the United States to employ their creativity, research skills, business acumen and passion for seeking solutions that advance growth and reduce poverty.

According to a press release dated January 28, 2010, the Global Challenge is “a first-of-its-kind competition that challenges teams of MBA (Master of Business Administration) and other graduate students to develop business solutions that support international development. Teams will be tasked with devising a new public-private alliance that allows a private enterprise to meet its long-term business goals while contributing to international development initiatives in a specified region.”

G. “Anand” Anandalingam, dean of the Robert H. Smith School of Business, said, “We invite MBA and graduate students from across the nation to employ their creativity, research skills, business acumen and passion for seeking solutions that advance growth and reduce poverty. It is our hope that future business leaders balance profit-making with social impact and take all stakeholders into account when making decisions, values we are committed to fostering at the Smith School.”

In describing the format of the innovate competition, the Smith School’s announcement explains, “In round one of the competition, teams will submit written proposal in response to a specified Global Challenge prompt, then up to eight groups will be invited to compete in the oral presentation final-round competition at USAID’s headquarters at the Ronald Reagan Building and International Trade Center in Washington, D.C. on April 23, 2010. Judges will include representatives from USAID, industry-leading private sector companies, and academia.”

Teams will compete for $8,500 in cash prizes: $5,000 for first place, $2,500 second place, and $1,000 third place. Furthermore, students will have the opportunity to establish relationships and receive guidance from business leaders, international development experts, and other students. Winners of the Global Challenge will have their work published and distributed to international development professionals worldwide. Teams may register online through February 5, 2010.

The Global Challenge is sponsored by USAID’s Business Growth Initiative and the Smith School’s Center for International Business Education and Research (CIBER) and Center for Social Value Creation. Launched in 2009, the Center for Social Value Creation’s mission is to engage students in courses and experiential learning programs to enable them to become global leaders who understand how to use business as a vehicle for both economic prosperity and transformative social change, and to support faculty research in related areas.

U.S. Government Allocates $320 Million for Rural Broadband Projects

2010-01-28T19:11:00.000-08:00

I occasionally blog about the digital divide that exists in developing nations; namely, the issue of that many people in the world’s financially impoverished nations do not have access to the Internet. While the United States is certainly not financially impoverished, a digital divide does exist when comparing Internet access by remote or rural communities to those residing in urban areas. Many people and businesses located in rural America are increasingly becoming dependent on modern information and communications technology (ICT) services to obtain education, financial, and health services. Therefore, I was pleased to read a recent announcement by the United States Department of Agriculture (USDA) to improve the ICT infrastructure in specific rural areas located throughout the United States. (Photo of Cherryvale, Kansas (population 2386) courtesy of U.S. Department of Agriculture)

In a press release dated January 25, 2010, USDA Secretary Tom Vilsack “announced the selection of fourteen Recovery Act Broadband Infrastructure projects that will receive $309,923,352 through funding made available by the American Recovery and Reinvestment Act (ARRA). An additional $3,551,887 in private investment brings the total to $313,475,239. Altogether, Congress awarded USDA $2.5 billion in Recovery Act funding to help bring broadband services to rural un-served and underserved communities.”

Here is a sampling of the 14 projects receiving grants and loans: Providing middle mile connectivity to 65 communities in Southwestern Alaska, expanding high speed DSL broadband service to remote, unserved households in rural Alabama and fiber-to-the premises broadband service to unserved homes and businesses in North Dakota. Furthermore, people residing in remote and rural communities in Tennessee will see an upgrade to the infrastructure that provide advanced voice, video, and data services exceeding 20 megabytes per second (Mbps), an expansion of fiber-based broadband access to approximately 1,500 households, local businesses and anchor institutions in central California, and extending existing fiber network by building out from the nearest fiber splice point through the funded service area in Oregon, which will provide broadband connectivity to residential and business end users.

USDA explains that “funding of individual recipients is contingent upon their meeting the terms of the loan, grant or loan/grant agreement.” While I continue to be concerned with the increase debt the U.S. government is incurring, I am encouraged to see some the funds provided by ARRA invested in ICT infrastructure to close the digital divide that exists in rural America.

EpiSurveyor: A Data Collection Tool Transforming Public Health for Underserved Populations

2010-01-26T02:24:00.000-08:00

Mobile phones are widely used throughout the African continent and we are seeing unique services in health care, banking, and education. This blog has presented different telemedicine services and I think there is value in discussing an innovative solution that uses mobile phone technology and the Internet “to deliver more effective public health services throughout the developing world,” according to a Voice of America (VOA) report by Natalia Ardanza. This report provides another prime example of using information and technology (ICT) solutions in providing essential services for the world’s underserved populations. Click here to watch Ms. Ardanza’s video report. (Photos: DataDyne.org)

Joel Selanikio and Rosa Donna co-founded DataDyne.org, a nonprofit dedicated to providing sustainable information technologies in poor areas. Ms. Ardanza says that with financial support from the United Nations Foundation and the Vodafone Foundation, Selanikio developed EpiSurveyor -- a free, mobile, Web-based and open-source data collection tool that is transforming the way public health is practiced in under-served areas of the world.” EpiSurveror was developed in collaboration with the Kenyan Ministry of Health and DataDyne’s website notes that its “multiple-award-winning EpiSurveyor.org is the first web 2.0 application for international development and global health.”

Furthermore, according to Ms. Ardanza, “EpiSurveyor replaces cumbersome and costly paper-based data collection that can take months, and sometimes years to produce results. ‘Instead of collecting data today to plan for a campaign next year, changing from that to collecting data today to plan for what we do tomorrow,’ Selanikio explained. ‘That is a pretty radical change.’ Public health relies on the rapid collection of accurate data to track disease outbreaks, monitor vaccine supplies and other similar functions.” Watch a demonstration video of EpiSurveyor on YouTube at http://www.youtube.com/watch?v=5aS6R1fUCBU.

DataDyne provides consulting services combining information technology, mobile phones, epidemiology, public health, and clinical medical care into a valuable service in treating underserved populations in developing nations. According to DataDyne’s website, the Washington, D.C.-based organization creates and implements ICT solutions for a clinical setting, evaluating a public health program, or building a SMS-based drug notification system.

DataDyne’s EpiSurveyor is now used as a World Health Organization (WHO) standard method of data collection. In addition, more than 500 organizations in over 100 countries are using EpiSurveyor in areas such as agriculture and public opinion polling. In 2009, Dr. Selanikio was the recipient of the $100,000 Lemelson-MIT Award for Sustainability.

Gates Foundation to Help Poor People Save Money

2010-01-24T02:57:00.000-08:00

In my blog post, Microfinance 101, I explain the different components of microfinance, which include loans, savings, money transfer services and microinsurance. From my experiences working in the developing world, microloans to help economically impoverished people climb out of poverty are the most common microfinance vehicle. While it exists in a few markets, I rarely see savings mechanisms in place to help underserved populations. Therefore, I was pleased to read that the Bill & Melinda Gates Foundation is helping “microfinance institutions (MFIs) provide the poor with safe, affordable places to save their money” by allocating $38 million in new grants, according to a press release dated January 13, 2010.

The Gates Foundation’s announcement explains that “six grants will help 18 MFIs, which currently focus on microcredit, expand their portfolios and make savings accounts available to an initial 11 million poor people across 12 countries in Africa, Asia, and Latin America over five years. The grants will create new ways for the poor to make deposits and withdrawals, expand the availability of existing savings products, and fund savings-focused marketing campaigns.”

Why is the promotion of financial savings among the world’s poor important? Citing a National Bureau of Economic Research report, the Gates Foundation announcement says “that poor households with access to savings accounts are more likely to invest in education, increase productivity and income, and reduce vulnerability to illness and other unexpected events.” The challenge remains that very few MFIs offer “savings accounts, and more than 90 percent of the world’s poor still lack access to financial services and resort to risky, expensive, and inefficient ways to save.”

“Providing access to safe, affordable savings accounts has been a challenge because of the high costs for both banks and customers,” says the Seattle, Washington-based philanthropic organization. “For banks, the costs of physical buildings, with dedicated bank tellers, are expensive, especially in remote areas or where there is a limited number of clients with small deposits. Poor clients often live far from banks so the cost to reach a branch may exceed the amount of their deposits.”

Allocating to a diverse group of international MFIs, “the grants will use a variety of approaches to offer savings accounts to poor people. ShoreBank International, for example, will broaden its reach by sending staff on motorbikes with handheld devices to rural clients in India. Women’s World Banking will revamp its savings products to make them better fit the needs of the poor and fund marketing campaigns in the Dominican Republic. The Grameen Foundation will work with its partner MFIs to ensure they have the business systems and staff to manage emerging client savings programs.”

All Nonprofits Helping Haïti are Not the Same

2010-01-19T02:47:00.000-08:00

It has been one week since a massive earthquake shook the Republic of Haïti, which has killed an estimated 200,000 people and left 1.5 million homeless. It is with great sorrow that this entry follows the previous two entries outlining excellent examples to facilitate sustainable development in Haïti through innovation initiatives. While I am following the rescue and recovery efforts closely, I am also amazed by global response in financial contributions to assist the Haïtian victims. I commend the overwhelming positive response from people worldwide, but we must also be mindful to which charities to support and that our generous donations are properly allocated.

According to The Chronicle of Philanthropy article dated January 18, 2010, donors have contributed more than $210 million to major U.S. relief groups within six days after the massive earthquake struck Haïti. Despite the troubled economy, “The pace of giving for Haiti is running ahead of the amount donated in the same period after the Asian tsunamis in 2004, but slower than the outpouring of gifts after the flooding caused by Hurricane Katrina in 2005. In the six days after the flooding started in New Orleans, Americans gave at least $457-million for relief efforts. In the nine days after the Asian tsunamis, major U.S. relief groups raised $163-million.”

In PBS Newshour’s Ray Suarez interview on January 18th with Stacy Palmer, Editor of The Chronicle of Philanthropy, Ms. Palmer discusses what questions a donor should ask about a nonprofit organization when considering making a financial donation. “One of the most important things to look at is, does the charity have experience working in a place like Haiti? And that's the most important research thing you can do. Have they already done things? Do they have a track record?”

Ms. Palmer then talked about the importance of a nonprofit’s experience and accomplishments. “There are plenty of Web sites that say, how much overhead cost does the charity provide? But, really, you want to look at results. What is it that the charity has accomplished? Have they been there before? This is not a tragedy where people can just come in and parachute in and do good, no matter how experienced they are. They have to have relationships with the community. And that's probably the most important thing that experienced aid workers say to look at.”

Donors should also question organizations who claim 100 percent of your donation goes to the charity. “Sometimes, that is too good to be true,” says Ms. Palmer. “And links in e-mail, people you don't know, go to the Web site, Google it yourself. A lot of people try to do copycat kinds of things. They will play on the name of the charity. So, be very careful about that. Do your research. And if you're being pressured into giving, don't give. That's a sign, again, of a charity that's not doing the right thing.” Ms. Palmer’s interview in its entirety may be found in the video below:

Recognizing my professional experiences in Haïti, many people have asked for my recommendation on which organizations to support. The American Institute of Philanthropy (AIP) posted its top-rated list of charities involved in Haitian earthquake relief efforts. While not on the AIP list, I highly recommend the Florida Association for Volunteer Action in the Caribbean and the Americas, Inc. (FAVACA), a Florida-based nonprofit organization serving the needs of the people in Haïti and throughout the Caribbean for over 25 years. Funds raised will go to support medical programs, disaster assistance, recovery and rebuilding programs in Haïti.

I am pleased to announce that I am participating in a fundraising event on January 21, 2010 hosted by Casuelitas Caribbean Café in Seattle, Washington. Casuelitas will be serving spicy Caribbean bites and Haïtian Rum Punch with 100 percent of the profits from food and beverage sales going to FAVACA for Haïti earthquake relief.

A Splash of the Caribbean, a Seattle-based unique triple bottom line Caribbean art import company that supports artists by purchasing directly and selling online and at restaurants throughout the Puget Sound region, will feature a Haïtian Steel Oil Drum Art Sale with 50 percent of net proceeds going to Haïti earthquake relief. Click here to view the official press release for the fundraising event. (Photo coutesy of Alyssa Johnson/A Splash of the Caribbean)

Why FAVACA? I have a relationship with the organization's executive staff and board of directors and as I stated above, the nonprofit organization has 25 years of working in Haïti. During these years, FAVACA has established a strong track record in delivering tangible results to thousands of underserved people. Having advised FAVACA on fundraising and strategic planning strategies, I am familiar with FAVACA's financial statements and I can attest that the nonprofit organization has kept their overhead expenses to a minimum leaving a large majority of funds raised to be used on effective programming.

For those who reside outside of Seattle, you can donate directly to FAVACA at http://www.favaca.org/?q=node/30. Thank you for your support.

An Innovative, Sustainable Art Form Helping to Alleviate Poverty in Haïti

2010-01-11T01:53:00.000-08:00

By Alyssa Johnson

Haïti is full of talented internationally renowned artists and some of the most beautiful artwork found in the Caribbean from paintings and beadwork to steel oil drum sculptures and hand sewn accessories. The innovative recycled steel oil drum sculptures are some of most popular and unique pieces found in Haïti. Used 55-gallon oil drums are purchased from the port and transported to Croix-des-Bouquets, Haïti, a small town with the largest concentration of steel oil drum metal artists resides located just 45 minutes outside of the capitol, Port au Prince. The art form started in the mid 20th century by blacksmith, Georges Liautaud, from Croix-des-Bouquets. (Photo of roadside stand of painted recycled steel oil drum sculptures in Petionville, Haïti courtesy of Alyssa Johnson)

Artists start with old oil drums and remarkably, they use every piece of the oil drum used in different art pieces including the cap and edges. Several homes and workshops in Croix-des-Bouquets are lined with fences made from unused edges of the oil drums. (Photo of Jean Emelie and Jean Pierre Richard negotiating a metal art purchase in Cap-Haïtian, Haïti courtesy of Alyssa Johnson)

The drums are stuffed with straw or banana leaves and lit on fire to burn off the residues. Once cooled off, the flattened drum becomes a rectangular sheet approximately four by six foot wide. They are flattened and designs are chalked out on and then cut out with a mallet and chisel. Different textures sculptures are created by hammering in "bumps" of different heights. Some are finalized with brightly painted designs, others are left in raw form.

In a country where, according to the U.S. Central Intelligence Agency's World Factbook, 80 percent of the population live under the poverty line and 54 percent in abject poverty, this small art industry has allowed families to build their own businesses, export internationally and earn higher wages. Formal unemployment in Haïti, the Western hemisphere's poorest nation is at approximately 66 percent. This labor intensive art form allows skilled craftspeople to earn fair wages in Haïti and makes a direct positive impact of poverty alleviation. (Photo of remnants of the oil drums are used for fencing in Croix-des-Bouquets, Haïti courtesy of Alyssa Johnson)

Alyssa Johnson is founder of A Splash of the Caribbean, a Seattle-based unique triple bottom line Caribbean art import company that supports artists by purchasing directly and selling online and at restaurants such as La Isla and Casuelitas Caribbean Café, among others throughout the Puget Sound region. Ms. Johnson may be contacted at oroazulllc@gmail.com. (Photo of the Musical Mermaid Screen by Atelier D’Art of Croix-des-Boquets, Haïti is courtesy of Alyssa Johnson. In Haïtian culture, the mermaid depicts La Siren, the Vodou spirit or lwa with power under the sea who enchants sailors with the melodies of her trumpet.)

Cleaning Up Haïti: Converting Human Waste to Fertilizer through Innovation

2010-01-07T04:35:00.000-08:00

On January 4, 2010, CNN posted an article on its website written by Eliott C. McLaughlin, "Group seeks answers to Haiti's woes in its toilets," about an organization that is implementing a sustainable solution of proper sanitation by composting human waste through public dry toilets. Founded by Sasha Kramer and Sarah Brownell in 2006 and based in Cap-Haïtien, Haïti, Sustainable Organic Integrated Livelihoods (SOIL) is a nonprofit organization dedicated to protecting soil resources, empowering communities and transforming wastes into resources in Haïti. By facilitating the construction of dry toilets that compost human waste to be used as fertilizer, the results include greater access to clean water, greater agricultural output, and reduction of human mortality by preventable diseases.

During my visits to Haïti during the past few years, I have witnessed the impact poor or nonexistent sanitation in the urban areas has on the natural environment and local population. Traveling through Haïti's rural areas, I observed low agricultural output caused by poor soil fertility, soil erosion and lack of fertilizers, which are often cost prohibitive to the impoverished farmer. In identifying the problem further, according to SOIL's website, "16% of rural Haitians and 50% of those in cities have access to adequate sanitation facilities, by far the lowest coverage in the Western Hemisphere. People are forced to find other ways to dispose of their wastes, often in the ocean, rivers, ravines, plastic bags, or abandoned houses."

Why soil? The nonprofit organization explains, "Maintaining soil is the essence of sustainability from both environmental and social perspectives. The basic elements that make up living matter all come from, and return to, the soil. Nutrients from the soil are constantly flowing through all living organisms. Healthy soil retains and cleanses water resources and protects communities from natural disasters. All of humanity is dependant on soil, biologically, economically, socially, and spiritually. Human health, livelihood, and wellbeing are inextricably linked to the soil."

Here is a video that provides additional details about the workings of the dry toilets:

"Toilets are one example of SOIL's outreach," writes Mr. McLaughlin. "The group also holds contests urging children to recycle garbage into something useful and Brownell's husband, Kevin Foos, spearheads a photo empowerment project called 'Looking Through Their Eyes,' which allows children to capture what they love and hate about their communities on film. SOIL also supports special centers in Shada, Milot and Le Borgne where Haïtians can present and test technologies for improving their health, environment and economic independence."

Nicholas Kristof of The New York Times posted a video, "American Ingenuity in Haiti," on his YouTube channel about SOIL's worthwhile efforts to resolve a problem that each individual contributes: human waste.

A Time to Reflect

2009-12-31T18:00:00.000-08:00

2009 served as the first full year of this blog and I want to thank all of you for taking the time visit. I appreciate your comments, whether they are made publicly and privately, and your suggestions for future blog topics. Starting with the first entry posted on August 10, 2008 about creating sustainable solutions in resolving the crisis in Sudan, this blog continues to serve a resource for understanding the problems people and companies face, both manmade or naturally occurring, and formulating solutions through innovative products and services. (Photo of the Space Needle in Seattle courtesy of Jim Bates/The Seattle Times)

Over the past year, we have witnessed great advancements in information and communications technology, renewable energy, and clean technology. Mobile phones and inexpensive portable computers are bridging the digital divide in industrialized and developing nations alike. We are seeing great advancements in mobile applications in education, telemedicine, and agriculture, and the improvement of renewable energy technologies that will provide the energy needs for millions, or perhaps billions, of people.

Several events will take place in 2010 that will focus on the intrinsic value of the individual and highlight the power of collaboration. Sports often bring together individuals with start physical or ideological differences to focus on a common element. Vancouver, Canada will host the Winter Olympic Games from February 12-28, 2010 and South Africa will host the 2010 FIFA World Cup, which I hope the latter will highlight the positive attributes of the host country and the entire African continent. Furthermore, Shanghai, China will host Expo 2010 from May 1 through October 31, focusing on the theme “Better City, Better Life.”

Lastly, according to a United Nations press release dated December 21, 2009, Secretary-General Ban Ki-moon "called on world leaders to attend a summit next September to boost efforts to achieve the Millennium Development Goals (MDGs), which seek to slash a host of social ills, ranging from extreme poverty and hunger to maternal and infant mortality to lack of access to education and health care, all by 2015." The MDG summit will take place at the UN headquarters in New York. And the world will look for tangible results at the next annual climate conference to be held in Mexico City in November 2010.

Lest we forget the ongoing conflicts in Afghanistan, Democratic Republic of Congo, Guinea, Haiti, Honduras, Iraq, Myanmar, Pakistan, Somalia, Sudan, Venezuela, and Yemen. As you read this entry, millions of innocent people continue to suffer as the result of armed conflict or environmental strife. We should remain optimistic, however, that as technology has enabled people to connect in ways unimaginable just a few years ago, we can continue to develop innovative ways to educate and empower the most vulnerable populations.

May 2010 bring peace and prosperity to all people worldwide.

Solar Cookers: An Essential Tool for Better Health and Economic Benefits

2009-12-28T02:22:00.000-08:00

During my travels to developing nations such as Haiti, Peru and Uganda, I witness the challenges and negative impact of cooking with fires fueled by wood or dung. The impact also applies to people who walk long distances to collect wood or spend their limited income on fuel. A solution to satisfying the need for cooking without breathing toxins or wasting time searching for cooking fuel lies within solar cookers. This entry provides a summary of this amazing tool.

"Solar cooking is the simplest, safest, most convenient way to cook food without consuming fuels or heating up the kitchen," according to Solar Cookers International, a nonprofit organization based in Sacramento, California and with an office in Nairobi, Kenya. "For millions of people who lack access to safe drinking water and become sick or die each year from preventable waterborne illnesses, solar water pasteurization is a life-saving skill. There are numerous reasons to cook the natural way — with the sun."

Solar Cooker International explains, "The three most common types of solar cookers are heat-trap boxes, curved concentrators (parabolics) and panel cookers. Hundreds — if not thousands — of variations on these basic types exist. Additionally, several large-scale solar cooking systems have been developed to meet the needs of institutions worldwide."

Box cookers, the most common solar cooker used worldwide, are made of cardboard, metal or plastic, with glass lids and aluminum foil or metal reflectors that trap heat from sunlight inside a sealed, insulated box and cook food in 2-3 hours at 250-350 F. Some box cookers can accommodate multiple pots. There are several thousand box cookers used in India and all solar cookers work with varying degrees of efficiency in hot or cool weather as long as the sun is shining. (Photos courtesy of Solar Cooker International)

Panel cookers incorporate elements of box and curved concentrator cookers. They are small, lightweight, foldable, portable and relatively inexpensive to purchase or manufacture by hand. They work like a crock-pot, with temperatures ranging between 225 and 275 F. Most panel cookers are made from cardboard and aluminum foil and they require a lightweight cooking pot painted black with non-toxic paint. Raw food is placed in the pot, which is put inside a heat resistant plastic bag and placed in the cooker. Panel cookers can cook food in 2-3 hours.

Curved concentrator cookers or "parabolic cookers," cook fast at high temperatures and are excellent for boiling and drying. Especially useful for large-scale institutional cooking, they require frequent adjustment and supervision for safe operation. Curved cookers may be used for indoor cooking by focusing sunlight through a hole in the wall.

Solar Cooker International provides a comprehensive list of health and nutritional benefits of using solar cookers:

Moderate cooking temperatures in simple solar cookers help preserve nutrients;
Those who otherwise could not afford the fuel to do so can cook nutritious foods — such as legumes and many whole grains — that require hours of cooking;
At times many families must trade scarce food for cooking fuel. Solar cooking helps them to keep more food and improve their nutrition;
Smoky cooking fires irritate lungs and eyes and can cause diseases. Solar cookers are smoke-free;
Cooking fires are dangerous, especially for children, and can readily get out of control — causing damage to buildings, gardens, etc. Solar cookers are fire-free;
Millions of women routinely walk for miles to collect fuel wood for cooking. Burdensome fuel-gathering trips can cause injuries, and expose women to danger from animals and criminals. Solar cooking reduces these risks and burdens, and frees time for other activities; and
With good sunlight, solar cookers can be used to cook food or pasteurize water during emergencies when other fuels and power sources may not be available.

In addition to the health and nutritional benefits, solar cookers provide a variety of economic benefits. Many poverty-stricken families worldwide spend 25 percent or more of their income on cooking fuel. Sunlight — solar cooker "fuel" — is free and abundant. Money saved from purchasing cooking fuel may be used for food, education, health care, etc. Furthermore, solar cooker businesses can provide extra income. Business opportunities include cooker manufacturing, sales and repair, as well as solar food businesses like restaurants and bakeries.

Benefits to developing governments include reducing imports of — and subsidies on — biomass and fossil fuels. Where forests are disappearing and many people suffer from fuel shortages, solar cookers reduce families' fuel wood needs by 30-50 percent. Electric companies that have trouble meeting peak hour demand because of heavy use of stoves and air conditioners can reduce that demand by promoting use of solar cookers.

I support funding by industrialized governments or nongovernmental organizations to programs that help deliver solar cookers to the world's most vulnerable populations. Not only is delivering solar cookers important, but providing the necessary training to manufacture, use, and repair the devices is essential.

A Call for a New Microfinance Model

2009-12-22T18:08:00.000-08:00

The blog entry dated December 7, 2009 provided a summary of microfinance and the entry posted on December 20, 2009 outlined microfinance's benefits and provided a few success stories. The focus of this post is to discuss microfinance's shortcomings and begin a discussion on how the service that offers poor people access to basic financial services may be improved. (Photo of an outdoor market was taken during my visit to Pisac, Peru in June 2009)

I appreciate the way microfinance provides an opportunity to individuals whom seek to improve their lives and become better providers for their family through entrepreneurship; however, I am concerned that microfinance fails to achieve its primary objective of eradicating poverty for millions, perhaps billions, of people worldwide. Additional problems I have observed of microfinance operations in the developing world include little or no access for goods or services produced by entrepreneurs to reach global markets, debt rather than equity financing, exorbitant interest rates for loans, and lack of scalability and sustainability.

Microfinance institutions (MFIs) should take a more proactive role in assisting borrowers (entrepreneurs) gain access to lucrative markets for their services or products. During my extensive travels to developing nations, I observed recipients of microloans manufacturing small crafts or clothing items. The consumer market for these entrepreneurs is limited to nearby villages or passing tourists and MFIs should help rural entrepreneurs gain access to large population centers. Furthermore, I recommend that MFIs take a more proactive role in assisting borrowers to gain access for their goods in lucrative industrialized markets in North America or Europe. To facilitate liberal access to the United States market, the U.S. government enacted legislation such as the African Growth and Opportunity Act (AGOA), Haiti Hemispheric Opportunity through Partnership Encouragement (HOPE) Act or the Central America-Dominican Republic-United States Free Trade Agreement (CAFTA-DR).

Microloans create a revolving door of debt by requiring entrepreneurs to take subsequent loans in order to grow their business operations. In the preceding blog entry, I use Bayamma Neerudi's experience to highlight the benefits of microfinance. Not to diminish the impact microcredit has made on Ms. Neerudi or individuals like her worldwide, but Ms. Neerudi has obtained three loans in order to grow her business. Where is the savings or reinvestment mechanism? While I recognize this information may be missing from Ms. Neerudi’s story, too many MFIs are not working with borrowers in implementing savings strategies. Technically, microfinance includes microsavings, but the latter is often missing when it comes to the operations of MFIs. I encourage MFIs to make a stronger effort to incorporate savings as a means to promote business scalability.

I propose a different type of microfinance model. As stated above, traditional microfinance models support debt rather than equity financing. I recommend that MFIs reevaluate their lending model by providing private equity financing to entrepreneurs. An equity "fund" should operate similarly to a traditional microlending operation with one of the objectives to provide initial or early development funding to a variety of private enterprises to stimulate social and economic development. The differences between my recommendation and traditional microcredit vehicles are: (1) Rather than immediately repay the principal and interest, entrepreneurs are required to save a portion or reinvest initial revenue to maximize sustainable growth opportunities, (2) entrepreneurs are required to implement a revenue-sharing plan for all employees, (3) entrepreneurs are required to operate with complete transparency including providing every employee a copy of the business plan and the opportunity to provide input regarding the business strategy and operations, (4) all recipients of the fund will receive support and technical expertise from MFIs and their contributors, and (5) the size of the loans should range from $5,000 to $500,000. $100 loans will not eradicate poverty.

When I taught my first seminar on entrepreneurship at the CFDE University in Port-au-Prince, Haiti in 2007, my students’ greatest need to become successful entrepreneurs was access to capital. I was astonished to learn that lending rates from the black market, MFIs, and government-owned banks were 15, 18, and 20 percent respectively. I have met with MFIs in Africa that charge borrowers up to 30 percent interest for loans. I understand that MFIs incur vast costs in administering small loans to several borrowers, but charging high interest rates is wrong. While I am not an expert in finance, I know from my experience as an entrepreneur in developing markets that through a different lending model, borrowers will no longer need to be punished with excessive interest rates.

With the current model, entrepreneurs find it difficult to scale or sustain their business operations. I see an immediate need to change to microfinance model. In principle, I support microfinance and the positive benefits realized by people striving to break the bonds of poverty. However, how does a MFI define success? Increased gross domestic product? Increased per capita income? Increased personal spending? Can we say that the results of microfinance are reflective of the hundreds of millions of dollars invested? Microfinance is mostly a good thing as it often helps keep borrowers from even greater catastrophes. However, microfinance fails if judged by the number of borrowers whom overcome the barriers of poverty.

As always, your comments are appreciated.

Benefits of Microfinance

2009-12-20T23:28:00.000-08:00

The preceding post, "Microfinance 101," provided a brief overview of microfinance. In addition to discussing the componenets of microfinance during my presentation to the Japanese Students Business Association (JSBA) at Bellevue College in Bellevue, Washington on December 2, 2009, I outlined the benefits of the scheme that offers poor people access to basic financial services. The benefits include increasing access to capital for individuals, increasing personal income and reducing poverty, enabling people to build assets, reducing vulnerability to economic stress, and development of basic life skills (e.g., literacy, personal health care, and financial education).

Unitus, a Seattle, Washington-based international nonprofit organization dedicated to advancing innovative, market-based solutions to global poverty, highlights several individuals whom have benefited from microfinance. Susan Wangui, 30, is a single woman living in Nairobi, Kenya with her son and daughter who are 13 and 9 years old, respectively. Susan, who is HIV-positive, was working as a prostitute when her husband left her when he learned about his wife's medical condition. (Photo of Susan Wangui courtesy of Unitus)

Susan "learned about Jamii Bora, a Nairobi-based microfinance institution, from neighbors in her slum. She completed their business training, which improved her business skills and gave her the confidence to begin her clothes mending and sales business. Jamii Bora's microfinance services enabled her to quit prostitution and move her family from a shack in their crime-and disease-ridden slum into a safer house."

With each increasing loan, Susan, "buys more raw materials in bulk at lower costs, thus increasing her business's profitability. She is convinced she would not be alive without Jamii Bora’s medical insurance and access to HIV medication, and can't imagine what would become of her children, as there is no one else to care for them. Susan has savings for the first time and is striving to earn enough to ensure her children's educations so they can break free from the chains of poverty."

Another example Unitus provides is Bayamma Neerudi, 49, of Medak, India, a married woman with seven children. Bayamma worked "as a seasonal agricultural laborer, earning 32 cents per day for only 150 days each year. Her husband was a mechanic in the nearby town of Jogipet, earning only 50 cents per day. One of her sons also worked as an agricultural laborer, while her other son was sold into bonded labor, often working 13 hours or more each day. For much of the year, Bayamma’s family survived on starch as their only food source." (Photo of Bayamma Neerudi courtesy of Unitus)

Bayamma's first loan of $150 was used to purchase a buffalo. "By selling milk and other dairy products from the buffalo, she was able to save an average of $2.75 each week after paying her loan installment and buying feed for the buffalo. She used subsequent loans of $64 and $128 to pay for a buffalo and to have cart made, which she rented out to transport sugarcane and other produce from the fields to the factories. With this income, Bayamma was finally able to release her son from bonded labor, whose wages are now added to the family's income. She recently received her third loan of $150, with which she has leased six acres of land for growing rice."

Unitus' website explains that "Bayamma is happy now that she and her family have stable sources of income. Her family eats more nutritious food that includes milk, rice, vegetables and, occasionally, meat. With her future loans, Bayamma hopes to begin repairing houses and also plans to purchase irrigation equipment to increase her crop yield."

Seattle, Washington-based Global Partnerships, a nonprofit organization that expands opportunities for people living in poverty by supporting microfinance and other sustainable solutions in Latin America, provides another success story. Gregorio Francisco Perez of Ocotal, Nicaragua, a married man with two sons, is a street vendor selling enchiladas, taquitos and fresh fruit juice from his pushcart. "Gregorio's business is funded by microloans provided by Global Partnerships microfinance partner” Fundación para el Desarrollo de Nueva Segovia (FUNDENUSE), "and the income from it supports his entire family. The business itself is a family affair. Gregorio staffs the cart selling the product, his wife of 14 years cooks the food and prepares the juice at home, and their older son brings fresh supplies to restock Gregorio when he runs out. Together they prepare and sell more than 350 enchiladas every day." With the earnings from his business, Gregorio and his wife are able to pay for their boys' school uniforms and books. (Photo of Gregorio Francisco Perez is courtesy of Global Partnerships)

The three examples above illustrate the benefits of microfinance and while I do not want to diminish the impact microfinance has made on the lives of Susan, Bayamma or Gregorio, there are significant problems within the microfinance mechanism that prevents maximizing the benefits for a greater number of people living in poverty worldwide. I will discuss these challenges in a December 22, 2009 blog entry.

Microfinance 101

2009-12-07T16:14:00.000-08:00

On December 2, 2009, I had the pleasure of making a presentation about microfinance to the Japanese Students Business Association (JSBA) at Bellevue College in Bellevue, Washington. My presentation focused on providing an overview, and outlining the benefits and challenges of microfinance. Upon sharing the highlights of the presentation with friends and colleagues, I learned that while many of us have heard the term "microfinance," very few understand its components. This post will provide a summary of microfinance and the people it serves. In a subsequent posts, I will discuss microfinance's benefits and challenges. (Photo of me with members of the JSBA is courtesy of Mr. Takahara Tsuyoshi)

I find the Washington, DC-based Consultative Group to Assist the Poor, CGAP, an independent policy and research center dedicated to advancing financial access for the world's poor, a great resource by explaining microfinance as a mechanism that "offers poor people access to basic financial services such as loans, savings, money transfer services and microinsurance." Having traveled around the world, whether in industrialized or developing countries, I agree with CGAP's assertion that people living in poverty, like everyone else, need a diverse range of financial services to run their businesses, build assets, smooth consumption, and manage risks."

Microfinance facilitates the accessibility of financial services to economically underserved populations. CGAP explains, "Poor people usually address their need for financial services through a variety of financial relationships, mostly informal. Credit is available from informal moneylenders, but usually at a very high cost to borrowers. Savings services are available through a variety of informal relationships like savings clubs, rotating savings and credit associations, and other mutual savings societies. But these tend to be erratic and somewhat insecure. Traditionally, banks have not considered poor people to be a viable market."

Many microfinance schemes are administered through a microfinance institution (MFI), an organization that provides financial services to the poor. MFIs include small nonprofit organizations that provide small loans, to commercial banks that, according to CGAP, "have large existing branch networks, vast distribution outlets like automatic teller machines, and the ability to make significant investments in technology that could bring financial services closer to poor clients." CGAP adds, "While this is a very broad definition that includes a wide range of providers that vary in their legal structure, mission, and methodology...all share the common characteristic of providing financial services to clients who are poorer and more vulnerable than traditional bank clients."

Ownership structures of MFIs vary from government-owned entities to member-owned credit unions or socially minded shareholders to profit-maximizing shareholders. In its summary about MFIs, CGAP says the types of services offered by MFIs "are limited by what is allowed by the legal structure of the provider: non-regulated institutions are not generally allowed to provide savings or insurance."

Who are the clients of microfinance? Most surveys report two-thirds of microfinance clients are women, which is very important considering women often have difficulty in accessing basic services. Microfinance clients, men and women alike, seek loans across for a variety of reasons including working capital for small provide businesses, larger loans for durable goods, student loans, and to cover emergencies. Microfinance clients work on farms or work for themselves in fishing, carpentry, vegetable selling, small shops, transportation, etc.

Microfinance offers a great opportunity for people to overcome the challenges of living in poverty. There are some benefits that are worth exploring, which include increasing personal income, enabling individuals to build assets, and reducing the vulnerability to economic stress. There are significant problems, however, with the application of microfinance such as little or no access for goods or services produced by borrowers to reach global (and more profitable) markets, extraordinarily high interest rates, and creating a cycle of debt as the entrepreneur attempts to manage (micro)enterprise growth. I will provide details and examples of the benefits of microfinance in a blog post on December 20, 2009 and I will discuss the challenges of microfinance on a posting dated December 22, 2009.

The Expected Benefits of the Korea-U.S. Free Trade Agreement

2009-12-02T09:00:00.000-08:00

After eight rounds of negotiations over a ten month period, the Republic of Korea and the United States signed the Korea-U.S. Free Trade Agreement (KORUS FTA) on June 30, 2007. Sponsored by The National Bureau of Asian Research, a Seattle-based nonprofit organization that conducts advanced independent research on strategic, political, economic, globalization, health, and energy issues affecting U.S. relations with Asia, Jong-hyun Choi, Minister for Economic Affairs at the Embassy of the Republic of Korea in the United States, gave a presentation, "KORUS FTA: Action or Inaction?" in Seattle about the benefits of the free trade agreement with Asia's 4th largest economy. (Photo of Korea President Lee Myung-bak and U.S. President Barack Obama courtesy of the Korean Ministry of Foreign Affairs and Trade)

Mr. Choi addressed the strong trade relationship between Korea and the United States. "Korea is already America's 7th largest trading partner and 6th largest importer of U.S. agriculture goods. Moreover, every U.S. state has a stake in the Korea-U.S. trade and investment relationship. A Free Trade Agreement with Korea will be America’s largest and commercially most significant FTA in more than a decade," explained Mr. Choi.

With respect to real economic benefits to both the United States and Korea, the United Sates International Trade Commission (USITC) issued a 2007 report, "U.S.-Korea Free Trade Agreement: Potential Economy-wide and Selected Sectoral Effects," saying if fully implemented, the KORUS FTA "is expected to affect the U.S.-Korea trade and investment relationship substantially, including bilateral trade in goods and services, procedures governing trade and investment, and the regulatory environment." Estimated benefits of the KORUS FTA include:

U.S. GDP would likely increase by $10.1–11.9 billion as a result of tariff and tariff-rate quota (TRQ) provisions related to goods market access;
Merchandise exports to Korea would likely increase by an estimated $9.7–10.9 billion as a result of tariff and TRQ provisions;
Merchandise imports from Korea would likely increase by an estimated $6.4–6.9 billion as a result of tariff and TRQ provisions;
U.S. services exports would likely increase as a result of the FTA, given the increase in levels of market access, national treatment, and regulatory transparency that would be afforded by the FTA in excess of the current General Agreement on Trade in Services (GATS) regime; and
Aggregate U.S. output and employment changes would likely be negligible, primarily because of the size of the U.S. economy relative to that of the Korean economy.

Realizing many Americans are concerned the FTA with Korea will result in a negative impact on the U.S. automotive sector, Mr. Choi says the agreement will actually "eliminate Korea's eight percent automotive tariff, the United States will immediately eliminate its 2.5 percent passenger tariff for vehicles with engines up to 3,000 cc and over three years for larger vehicles, and U.S. pick-up truck tariffs, currently at 25 percent, will be phased out over ten years."

Furthermore, explained Mr. Choi, "Korea will provide special treatment of U.S. automakers with regard to emission standards and Korea will grant U.S. automakers a two-year grace period to apply new safety standards." Mr. Choi added that the agreement provides a special expedited dispute process with 'snap-back' reinstatement of the pre-FTA tariff mechanism and the formation of an Auto Working Group to address future regulatory issues.

Addressing the U.S. auto trade deficit, Mr. Choi notes that Korea is not the main source of this deficit. "According to the U.S. Department of Commerce 2006 statistics," said Mr. Choi, "the United States recorded an automotive trade deficit of $43.2 billion with Japan, $25.1 billion with Canada, and $22.9 billion with the European Union, compared to $8.5 billion with Korea. Korean manufacturers are opening state-of-the-art automobile manufacturing plants in the United States. The Hyundai plant in Alabama is a $1.1 billion investment and has created 3,000 new jobs. The Kia plan in Georgia is a $1.2 billion investment that will generate around 2,500 new jobs."

Regarding the Pacific Northwest, Mr. Choi said the KORUS FTA will eliminate tariffs on Washington state wine currently imposed by the Korean government. (Chile and Australia have significantly increased their exports of wine to Korea.) He also explained that in 2006, Korean companies invested over $615 million in Washington enterprises and Washington agriculture exports to Korea in 2007 were valued at $2.6 billion, which supported 27,710 jobs.

The United States Congress and South Korean National Assembly have to separately ratify the KORUS FTA before it can be enter into force. Neither legislative body has yet to execute this action. Given the crowded U.S. domestic agenda on health care and stimulating the economy, and mid-term elections coming in November 2010, it is highly unlikely Congress will make any progress in approving the KORUS FTA in 2010. When I asked Mr. Choi about his strategy for the coming year, he responded that he will continue to talk with business and civic leaders around the United States, work with the Korean-American community to promote the KORUS FTA's benefits, and continue building relationships with Congressional leaders. "I have already received equal bipartisan support from several members of Congress," said Mr. Choi.

"The Proposed U.S.-South Korea Free Trade Agreement (KORUS FTA): Provisions and Implications," a report prepared by the Congressional Research Service, says, "The United States and South Korea entered into the KORUS FTA as a means to further solidify an already strong economic relationship by reducing barriers to trade and investment between them and to resolve long festering economic issues." For this and the reasons outlined above, I support the KORUS FTA and despite the pressing issues such as health care reform and international issues the U.S. faces in Afghanistan and Iraq, I encourage Congress to ratify this legislation, which will increase access of American goods and strengthen U.S.-Korean relations.

Iraqi Government Creates YouTube Channel to Increase Engagement to a Larger Audience

2009-11-28T13:14:00.000-08:00

In order to promote its message and engage with Iraqis at home and abroad, the Iraqi government launched a dedicated channel on Google's video website YouTube (www.youtube.com/iraqigov). In a video message, Iraq's Prime Minister Nuri al-Maliki explains, "The Iraqi government is committed to using this technology to connect to various international communities and to those who follow the issues of Iraq." Mr. Maliki continued, "Iraq today is experiencing great developments, and we have great ambitions to achieve in regard to communicating with people around the world." Mr. Maliki's message about the Iraqi government's latest initiative may be viewed below:

I hope other developing governments follow Iraq’s lead in using the Internet to connect with international investors, nongovernmental organizations, and most importantly, citizens living in-country or abroad. As Hunter Walk, Google's Director of Product Management, wrote on The Official Google Blog regarding Iraq's initiative, "We hope that by launching on YouTube, the Iraqi Government and their citizens will also find it easy to use YouTube to engage in such conversations, and bring their proceedings, policies and ideas to a larger audience around the world." One criticism I have regarding the Iraqigov Channel is the inability to post comments by YouTube viewers.

Here is a video message from Eric Schmidt, Google's Chief Executive Officer and Chairman, about Iraq's YouTube initiative:

There is another initiative that is worth discussing regarding Google and Iraq. According to a Embassy of the United States in Iraq press release, "The CEO and Chairman of Google Inc., Eric Schmidt, and members of the Iraq Technology Task Force announced...in Baghdad a project to create a virtual tour of the Iraq National Museum using state of the art Google technology. The project, the first of its kind at any museum, will digitize and electronically catalogue artifacts at the Iraq National Museum, allowing global access to the collection. It is part of an ongoing commitment by U.S. institutions to partner with Iraqis under the Strategic Framework Agreement to help support and showcase Iraq's rich cultural heritage and history."

The press release further says Mr. Schmidt "is the first CEO of one of the world's leading technology companies to visit Iraq; the trip marks Google’s third visit to Iraq to collaborate on U.S. Government-led technology initiatives. This public-private partnership fosters U.S.-Iraq cultural diplomacy and exemplifies twenty-first century statecraft—the U.S. government serving as a convener, and facilitator of initiatives and programs that are driven by the Iraqi people in partnership with private companies. This is the first private-sector delegation to meet with the recently established Iraq Technology Task Force (ITTF), which is a multi-stakeholder body created by Iraqis to build the country’s IT capacity. The delegation's visit demonstrates how public private partnerships are about more than contributing traditional resources, they are also about leveraging expertise itself."

Transatlantic Trends 2009: A Survey of European and American Opinions

2009-11-23T10:00:00.000-08:00

On November 19, 2009, I attended a briefing, sponsored by the Trade Development Alliance of Greater Seattle, featuring Zsolt Nyiri, Ph.D., Director of Transatlantic Trends at the German Marshall Fund of the United States in Washington, DC. Dr. Nyiri's presentation on Transatlantic Trends 2009, a project of the German Marshall Fund and the Turin, Italy-based Compagnia di San Paolo, with additional support from the Fundação Luso-Americana (Portugal), the Fundación BBVA (Spain), and the Tipping Point Foundation (Bulgaria), "measures broad public opinion in the United States and 12 European countries and gauges transatlantic relations through interviews with more than 13,000 people." There are a few highlights that are worth discussing in this post.

For the eighth consecutive year, participants were asked their views on each other and on global threats, foreign policy objectives, world leadership, and multilateral institutions. During this time, Europeans took a very negative view of U.S. President George W. Bush. According the Transatlantic Trends, "U.S. President Barack Obama had nearly reversed the collapse in public support for the United States witnessed across much of Europe under his predecessor, President George W. Bush." In fact, my mid-2009, Mr. Obama "enjoyed far more support in Germany, Britain, and even France, than he did in the United States. Such sentiments provide a popular foundation for a revitalization of U.S.-European ties."

Statistically speaking, 77 percent respondents in the European Union and Turkey supported Mr. Obama’s handling of international affairs, compared to just 19 percent who approved of Mr. Bush’s foreign policy in 2008. Furthermore, according to the report, “People of the EU and Turkey (77%) were considerably more likely to approve of Obama than were his fellow Americans (57%). However, segmenting the EU and Turkey stats paints a different picture: Central and East Europeans (60%) were significantly less enthusiastic about Mr. Obama's handling of international affairs than were people in Western Europe (86%), and were less likely (53%) to see America in a positive light than were West Europeans (63%). Lastly, "Fewer Central and Easter Europeans (25%) than West Europeans (43%) believed that relations between the United States and Europe had improved over the past year."

During the presentation discussing the economy, which Dr. Nyiri called "The Dog that Did Not Bark," Americans and Europeans share the belief "that managing international economic problems should be the top priority for the American president and European leaders, trumping concerns over international terrorism, climate change, or the Middle East." The Obama effect is evident in Europeans' attitudes where 79 percent approved of Mr. Obama's handling of international economic affairs during his first months in office; whereas, only 53 percent of U.S. respondents felt the same as their European counterparts.

With respect to the economic crisis, "More Americans (69%) were very concerned about the economic situation than were people in the European Union (47%). This difference reflected a more intense personal economic experience with the crisis. Three-in-four Americans (74%) compared to just over half of Europeans (55%) said their families had been impacted by the recession." Dr. Nyiri attributed the difference as a result of strong social programs Europeans benefit from their respective governments.

Dr. Nyiri further discussed the "overwhelming majorities of respondents in the United States (75%) and in the European Union (82%) thought the current crisis could only be solved with fundamental changes in the way the economy is run." He then noted when separating the responses by political affiliation in the United States, Democrats (85%) and Independents (80%) supported major reform more than Republicans (69%). "In Europe, support for change was more equally shared by respondents of all political persuasions."

And 79 percent of Europeans and 67 percent of Americans believe "that government has an important part to play in regulating the economy. In the United States, however, significantly more Democrats (80%) than Independents (65%) and Republicans (61%) believed in such a governmental role. In Europe, conversely, there was almost no ideological disagreement on this issue."

Regarding climate change, "people on both sides of the Atlantic were concerned about climate change, but respondents in the European Union (48% very concerned) were more intensely worried than Americans (40% very concerned). The most anxious were the Portuguese (62% very concerned), while the least apprehensive were the Dutch (just 23% very concerned) and the Poles (29% very concerned)."

69 percent of European respondents supported policies to combat climate change even if it stymied economic growth. "The French (79%) were the most willing to sacrifice economic advantage for a cooler planet. The Slovaks (53%) were the least willing among Europeans. Only a plurality of Americans (43%) would make such a tradeoff."

I found Dr. Nyiri’s presentation informative regarding the "Obama Bounce" and its positive affect on Europeans attitudes regarding the United States. However, this positive sentiment does not transcend to supporting the wars in Iraq or Afghanistan, or using military force to halt Iran from acquiring nuclear options. And while Mr. Obama has enjoyed vast support from the European Union and Turkey, the honeymoon could end very abruptly if the economy does not rebound at a reasonable rate.

Moreover, as Mr. Obama recently indicated, the United Nations climate change conference scheduled for December 7-18, 2009 in Copenhagen, Denmark, the United States is not prepared to enter into a new global climate-change treaty on limiting emissions of greenhouse gases that would replace the 1997 Kyoto Protocol. I suspect this will adversely affect Mr. Obama's support from Europeans and perhaps, American Democrats.

Japan's Plan to Grow their Green Economy

2009-11-16T12:33:00.000-08:00

The Japan Business Association of Seattle and Trade Development Alliance of Greater Seattle sponsored an event on November 12, 2009 featuring Mr. Toshiki Takahashi, Director of Japan External Trade Organization's (JETRO) International Economic Research Division. JETRO is a Japanese government-related organization that works to promote mutual trade and investment between Japan and the rest of the world. Mr. Takahashi's presentation, "World Economic Development and the Japanese Economy," focused on the Japanese economy as it relates to the broader global economy. Mr. Takahashi also discussed the investment opportunities that exist in Japan's environmental sector and the country's desire to grow its green economy.

According to a JETRO publication printed in 2007 discussing Japan's environmental sector, "Japan's economic development has so far been supported by a society based on mass production, mass consumption, and mass disposal. Currently, approximately 450 million tons of waste is generated every year, putting waste treatment facilities under unrelenting strain." The publication further explains, "As global environmental problems grow more acute, a concerted effort towards a recycling-based society has begun, and Japan's ecobusiness market is rapidly expanding in both size and range." Japan's Ministry of the Environment predicts the ecobusiness sector will be valued at 47.2 trillion yen (US$530 billion) by 2010.

Moreover, "Ecobusinesses that provide technology, products, or services that contribute to the protection of the environment play a vital role in the creation of a sustainable socioeconomic system with a low environmental impact, and the government will continue to actively promote and foster these businesses in the future." Japanese businesses are "currently developing environment technology under the banner of the '3 R's': Reduce, Reuse and Recycle."

JETRO segments the environmental sector into five key areas conducive for foreign direct investment:

Clean energy: According to the Environment Ministry's "Market Size and Employment in Japan's Environmental Business Sector: Present Condition and Forecast for the Future," the scale of the market for green energy, which includes renewable energy facilities and energy conservation and management, was 890 billion yen (US$10 billion) in 2000, no more than about 3 percent of all environmental business. Due to technological development and reforms, however, the market size is predicted to increase 6.5 times, to 5.812 billion yen (US$65.3 million), by 2010, and grow further, to 9.9 times this size, or 8.798 billion yen (US$98.9 million), by 2020. The clean energy sector includes solar power generation, fuel cells, and energy service company (ESCO) businesses, which provides comprehensive services relating to energy conservation in factories and buildings;
Waste treatment: While the waste treatment and recycling sector market is already large and is expected to grow further, it is supported by small businesses. This industry does not require large-scale existing facilities or huge initial outlays and so small and medium-size businesses, as well as venture companies that are yet to be established, can enter the industry. Studies by the Ministry of the Environment predict the market for waste disposal to grow from 3.614 billion yen (US$40.6 million) in 2000, to 7.736 billion yen (US$86.9 million) in 2010, and still further, to 11.126 billion yen (US$125 million), by 2020;
Recycling: Recycling laws for key items have already been introduced in Japan, beginning with enforcement of the Containers and Packaging Recycling Law in 1997, followed by recycling laws for food, construction material, and furniture, and then, in 2005, the Automobile Recycling Law. With the enforcement of each of these new recycling laws, the trajectory was set for a new recycling sector. A variety of business opportunities have been created in the recycling sector, including development of new technologies, that take advantage of regional government schemes enabled by national government policies, such as "eco-towns" and "designated structural reform districts";
Soil and water remediation: According to the Ministry of the Environment, the size of the soil and water remediation market, including equipment and services provided, was 84.8 billion yen (US$964 million) in 2000. However, it is forecasted that soil and subterranean water pollution controls in Japan will become stricter, and the market will grow to 6.8 times its 2000 size, to 582.8 billion yen (US$6.5 billion), by 2010; and
Air pollution prevention: The number of business opportunities related to air pollution prevention is increasing due to the introduction in 2000 of an ordinance requiring the use of exhaust purifiers in Tokyo, Kanagawa, Saitama and Chiba. In addition, the climate change policies are expected to bring about the full-scale initiation of greenhouse gas emissions trading. Apart from international emissions trading based on the Kyoto Mechanism, domestic trading is also anticipated, allowing every business to fulfill its pollution reduction targets.

(1 JPY=0.0112 USD)

The Philippines: An Assessment of Business Opportunities

2009-11-13T19:35:00.000-08:00

One of my primary responsibilities as a consultant is advising my clients on expanding their international operations to profitable markets. From small businesses to multinational corporations, the term "globalization" is often thrown around the boardroom and business executives know they need to expand into other, sometimes risky, markets in order to stay ahead of the competition and maximize profitability. The problem is, however, that many executives do not know which markets to enter or how to enter effectively. I had the opportunity to attend a seminar, "Doing Business in the Philippines," sponsored by the Urban Enterprise Center of the Greater Seattle Chamber of Commerce and the Philippine Department of Trade and Investments. There are a few highlights from the November 9, 2009 event that are worth sharing if you are considering doing business in the Philippines.

The purpose of the forum is, according to the event's program, to "introduce small and medium size businesses to the opportunities and considerations (government regulations, processes, cultural influences and situational nuances) in doing business with Philippine enterprises for buying, selling or joint venturing purposes." Ms. Josephine Romero, Trade Commissioner of the Philippine Department of Trade and Investments – Western USA Region made a presentation outlining the business opportunities that exist in this Southeast Asia country of 89 million people.

Ms. Romero noted several attributes of choosing the Philippines as a business destination such as the country's strategic location being three to four hours of flight time from key Asian cities, establishment of a regional hub for logistics that include FedEx, UPS, and Lufthansa Technik, and good access to the 500 million people living in the Association of Southeast Asian Nations (ASEAN). In describing the quality human resources, the Trade Commissioner said the Philippines offers an educated labor force of 32 million whom possess a fast learning curve and very competitive labor rates. Furthermore, 95 percent of Filipinos are literate with English being taught in all schools, making the Philippines the world’s third largest English-speaking.

Regarding the business environment, Ms. Romero explained that the Philippines government deregulated the telecommunications and other key industries and services, the country has strong capital markets and banking system, market-oriented foreign exchange services, and proactive assistance for investors. Other key points made during the presentation include the how the Foreign Investments Act (FIA) of 1991, the law that governs foreign investments in the Philippines, opened domestic market to 100% foreign investment except those in the Foreign Investment Negative List (FINL), redefined "export enterprise" to mean at least 60 percent for export, and 100 percent foreign ownership of business activities are allowed outside the FINL, but without incentives. It was suggested, however, that foreign businesses work with a local partner in navigating the challenges that exist.

Profitable business sectors in the Philippines include customer service, manufacturing (home furnishings, textiles, construction materials, and motor vehicle parts and components), food importation, organic and natural products, information technology and IT-enabled services, renewable energy, and tourism. While the corporate income tax is 32 percent, companies operating in the Special Economic Zones (ecozones) are subject to only 5 percent overall tax rates. Multinationals looking for regional headquarters, said Ms. Romero, are entitled to incentives such as tax exemptions and tax and duty-free importation of specific equipment and materials.

Mr. Sanjay Kumar, Chief Executive Officer of Kirkland, Washington-based V-Customer Corporate Services, spoke about his successful experiences in establishing business operations in the Philippines. He talked about the ease of registering a business entity, working with a qualified labor force, low cost of doing business, and the liberalized and business-friendly environment.

When asked about the challenges of doing business in the Philippines, Ms. Romero responded that e-commerce and wide use of the Internet is not prevalent throughout the country. While Filipinos have access to the Internet, they do not use the technology for commercial purposes. She did explain, however, the national government is focus on building an IT economy and making the Philippines the e-services hub of Asia. Regarding intellectual property rights, Ms. Romero said piracy is a problem in the Philippines, which is a share problem throughout ASEAN; however, the national government is working on a legal framework to enact and enforce IP laws.

I invite readers of this blog to post comments detailing their successes (or failures) of doing business in the Philippines.

Microsoft Executive Talks about the Future of Computing

2009-11-10T10:40:00.000-08:00

Prior to his retirement from Microsoft, Bill Gates traveled around the country speaking at college campuses about how Microsoft's innovative technologies are providing the tools to help people resolve the problems of today, and tomorrow. Since Mr. Gates' departure from the Redmond-Washington company, Craig Mundie, Microsoft’s chief research and strategy officer, has led the Microsoft College Tour speaking to faculties and students in the United States. From November 2-5, 2009, Mr. Mundie visited four college campuses, Cornell University, Harvard University, the University of Illinois at Urbana-Champaign, and the University of Washington, discussing how the new capabilities in computing will help solve some of the planet’s toughest challenges, from environmental change, to growing the global economy, to improving healthcare and education. These visits provide an opportunity to show the leading-edge work taking place at Microsoft. (Photo of Craig Mundie courtesy of Patrick Riley/The Daily of the University of Washington)

I had the opportunity to attend Mr. Mundie's presentation, "Rethinking Computing," which was part of the University of Washington’s Computer Science and Engineering Distinguished Lecturer Series. He demonstrated future-looking technologies created by the Computational Science Group at the Microsoft Research Cambridge (U.K.) that show how computer science is changing scientific exploration and discovery. He also discussed the role of new science in solving the global energy crisis such as a state-of-the-art global carbon-climate model that allows scientists to study forests in ways not previously possible. With the carbon model, and another model created by Microsoft researchers showing how populations of trees actually grow, scientists can study how deforestation in the Amazon basin can affect forests worldwide.

Mr. Mundie talked about how machines will respond to gestures through new natural user interfaces, deploy the power of new microprocessors, migrate data to the cloud, and use live data to drive new simulations and visualizations. "We think computing is in its infancy," said Mr. Mundie, noting many people view computer technology has become passé and invisible. "It's going to be important to continue investing in computing. Without it, we'll have difficulty solving these problems." Explaining that the benefits of computing will have to scale as the planet's population increases, Mr. Mundie said, "we will need to move beyond the tradition point-and-click of the graphical-user interface."

The next big change we will see is in display technology, where "we will have a richer way to interact with the computers." The natural user interface (NUI) will create an interface enabling computers to work for you and search using human-like interaction technologies like ink, eye tracking, and voice. Mr. Mundie provided a demonstration of the latest NUI designed by Microsoft's Cambridge research group. Below is a video of a similar demonstration Mr. Mundie gave at Harvard University on November 3, 2009:

On the topic of cloud computing, Mr. Mundie "sees the cloud as a high scale, often data driven computing assets that are being built now and I think the next big thing will be to think the cloud and the intelligent clients as one big distributive system, not two heterogeneous things that we are forcing to talk to one another."

I enjoyed listening to the presentation and I feel that Microsoft is producing innovative computing technologies that will provide a great benefit and new experiences to users worldwide. One important area where we will see these benefits is in the policy making arena. As Mr. Mundie demonstrated, a new method of computing will become an essential tool for policy makers in making informed decisions. While I see the technical value in the natural user interface, cloud computing will revolutionize the way people access, store, and use information, which I will discuss in greater detail in this blog.

Iraqi Refugees Now Receive Food Vouchers Via Text Message

2009-11-05T07:13:00.000-08:00

Part of the United Nations system and voluntarily funded, the World Food Programme (WFP) is the world's largest humanitarian agency fighting hunger worldwide. The international aid agency launched a pilot project in Damascus, Syria that allows Iraqi refugees to receive food vouchers electronically via mobile phone text messages. According to WFP's announcement on October 28, 2009, "As part of a ground-breaking pilot project, [an Iraqi refugee] is receiving food vouchers electronically over her phone, which she can then spend in selected government-run shops. Instead of travelling to a distribution centre and struggling back with a two-month ration of food, she can now pick and choose to buy what she wants, when she wants." WFP claims this is the first project of its kind in the world. (Photo of Iraqi refugees in Damascus courtesy of WFP/Selly Muzammil)

In describing the details of this innovative initiative, WFP says that "refugees can buy items such as cheese and eggs that are difficult to transport and could not normally be included in a conventional aid basket." Every two months, participants of this innovative project "receive a coded message on a special SIM card, entitling them to a voucher worth US$22 per person. They take their phone along to state-run stores where they can cash in all or part of the 'virtual voucher.'"

"Around one thousand families are involved in the four-month pilot phase, which will be extended if it is successful. The project has been developed in cooperation with the Syrian government, enabling the refugees to redeem their vouchers in state-run stores in the Jaramana and Sayeda Zeinab neighbourhoods of Damascus. The mobile phone service provider MTN has donated SIM cards for the project."

According to government estimates, approximately 1.2 million Iraqis reside in Syria, "and, of those, around 130,000 regularly receive food assistance from WFP," explains the Rome, Italy-based humanitarian agency. "Over the last two years, the agency has been texting refugees with the times and locations of food distributions."

While other aid agencies have used phone messages and ATM cards to transfer cash to those in need, "this is believed to be the first time mobiles have been used to deliver food vouchers. Schemes involving vouchers are particularly useful in urban settings where food is available but those in need are unable to afford it."

African Union Ambassador Visits Seattle Promoting Business Opportunities

2009-11-02T10:00:00.000-08:00

I had the pleasure of meeting Amina Salum Ali, Ambassador of the African Union (AU) to the United States, during her visit to Seattle. Hosted by the Trade Development Alliance of Greater Seattle and the Africa Chamber of Commerce of the Pacific Northwest on October 27, 2009, Ambassador Ali gave a presentation titled "An Integrated Africa: An Overview of African Economies and the African Union." Since her appoint as the AU ambassador in 2007, this was the Ambassador's first trip outside of Washington, DC that focused primarily on promoting Africa as an investment opportunity. (Photo of Ambassador Ali courtesy of the Trade Development Alliance of Greater Seattle/Allison Peterson)

Ambassador Ali gave an excellent presentation outlining the economic benefits of investing in the African continent. Specifically, she noted the opportunities that exist in manufacturing, agriculture, mining, health care, transportation, and information and communications technology including using mobile phones for banking, education, and medicine. While Africa is not immune to the economic recession, said Ambassador Ali, many investors in Africa are seeing a positive return on their investment. She also encouraged investors to focus on establishing processing operations, which are greatly lacking throughout Africa. Not only is De Beers mining diamonds in Africa, Ambassador Ali noted, the diamond conglomerate is the only company processing its product (diamonds) locally.

Ambassador Ali highlighted the benefits of the African Growth and Opportunity Act (AGOA), which was signed into U.S. law in 2000. According to a website maintained by the U.S. Department of Commerce, http://www.agoa.gov/, AGOA "provides beneficiary countries in Sub-Saharan Africa with the most liberal access to the U.S. market available to any country or region with which we do not have a Free Trade Agreement. It reinforces African reform efforts, provides improved access to U.S. credit and technical expertise, and establishes a high-level dialogue on trade and investment in the form of a U.S.-Sub-Saharan Africa Trade and Economic Forum."

While acknowledging the humanitarian and military conflicts that exist in Africa, she reminded the attendees, who included several members of the African Diaspora that conflicts will dissipate as standards of living increase and people improve their lives through access to education, job training, medical services, and economic development support. She encouraged the African Diaspora to help promote the benefits of doing business in Africa by speaking positively about their home continent noting Africa's abundance of natural resources, vast landscapes, and diverse cultures.

I had the opportunity to ask Ambassador Ali two questions: (1) What is AU's strategy for combating corruption and properly training local government officials to eliminate corrupt practices that often impede economic development and (2) what legal recourse do investors have to resolve business disputes? In responding to the former, Ambassador Ali noted that many African nations have taken significant steps to combat corruption, which is evident by the regular media reports discussing the latest arrests or convictions. The broad media attention on Africa's corruption, she explained, is not about a failed system, but representative of effective actions and policies aimed to eradicate corrupt practices. She also noted the adoption of the "African Union Convention on Preventing and Combating Corruption" in 2003 and ongoing collaborative efforts between the AU and the World Bank.

With respect to second question, Ambassador Ali said that many local and regional courts have the capacity of handling legal cases to resolve business disputes. Moreover, some parties have opted to seek arbitration or have their cases heard in jurisdictions outside of the AU. I prefaced my question saying that many American investors may take the risk of investing in Africa where infrastructure may be limited, but their concerns reside in not understanding the options available to resolve business disputes.

Having traveled extensively throughout Africa, I know the benefits the continent has to offer for investors. While Ambassador Ali is correct in listing energy, health care, mining, agriculture, transportation, and manufacturing as ideal business opportunities, I favor the opportunities that exist in information and communications technology. As I often discuss on this blog, ICT and specifically mobile communications are producing substantial financial returns for investors and making a social difference for all of Africa.

I commend Ambassador Ali for making Seattle her first U.S. destination outside of Washington, DC to promote the business opportunities that exist in Africa. It is important that other diplomats and government officials representing developing nations take a more proactive approach in attracting foreign direct investment. Feel free to contact me if you are interested in learning more about the investment opportunities that exist in Africa. I am happy to share my experiences of doing business in one of the world's most diverse markets.

GE Launches $250 Million Fund to Invest in High Potential Healthcare Technology

2009-10-29T06:08:00.000-07:00

I strongly support any initiative from the private sector that provides financial support to emerging companies designing innovative solutions to current or preventing future problems. Investments made by Microsoft, Boeing, IBM, Intel, and Cisco Systems, just to name a few, have allowed other companies to create, market, and launch innovative products and services that millions, or perhaps billions, of people use daily.

GE is one such company that has created a fund to support healthcare technology companies. On October 21, 2009, GE announced "the formation of the 'GE Healthymagination Fund', a new equity fund that will make investments in highly promising healthcare technology companies. The fund will invest in companies globally that have innovative diagnostic, IT, and life sciences technologies aligned with the strategic objectives of GE's Healthymagination initiative. The fund will also support healthcare companies developing innovative and unique business models and services."

Furthermore, according to the Fairfield, Connecticut-based company, "The formation of the fund is part of GE’s $6 billion Healthymagination initiative, a global commitment to deliver better healthcare to more people at lower cost." Creating a global footprint, the fund will draw on capabilities from across GE Healthcare, GE Capital and GE Global Research. Moreover, the fund will target three areas for investment:

Broad-based Diagnostics, including imaging, home health, patient monitoring, molecular diagnostics, pathology, novel imaging agents and other technologies for disease diagnosis;
Healthcare Information Technology, including electronic medical records, clinical information systems, healthcare information exchanges and value-added data services; and
Life Sciences, including tools for research and development in biopharmaceuticals and stem cells, and technologies for manufacturing of biopharmaceuticals and vaccines; and

Here is an advertisement for GE Healthymagination:

Cloud Computing: Revolutionizing the Way People Access Hosted Services

2009-10-27T00:05:00.000-07:00

This is the first of several entries that will address the topic of "cloud computing." According to the National Institute of Standards and Technology (NIST), "Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction."

In other words, cloud computing is a general term for anything that involves delivering hosted services, over the Internet and the name cloud computing was inspired by the cloud symbol that is often used to represent the Internet in flow charts and diagrams. Hosted services include software (word processing, spreadsheets, presentation slides, etc.) that you would have ordinarily purchased a hard-copy or downloaded through an online vendor. From across a variety of sectors including government, nonprofit, academic, and the private sector, cloud computing will revolutionize the way people access software and Internet services.

Even the U.S. government is engaging in the benefits of cloud computing. On September 15, 2009, the Obama Administration "announced the launch of the General Services Administration's (GSA) cloud storefront Apps.gov. This online storefront enhances how the government leverages technology by enabling federal agencies to acquire and purchase cloud computing services in an efficient, effective manner." Furthermore, according to GSA's press release, "The new Apps.gov, a one-stop shop to purchase cloud computing services, is part of the government's push to improve the cost-effectiveness of IT services and sustainability of IT infrastructure. It is one element of a multi-pronged cloud computing program that is addressing not only acquisition, but also related policy, security, training, coordination, architecture and standards....Apps.gov will also offer free social media and web 2.0 tools such as wikis and blogs to federal agencies."

Here is a brief list of the features and benefits of cloud computing as provided by Apps.gov:

Significant Cost Reduction: Cloud computing is available at a fraction of the cost of traditional IT services, eliminating upfront capital expenditures and dramatically reducing administrative burden on IT resources;
Increased Flexibility: Cloud computing provides on-demand computing across technologies, business solutions and large ecosystems of providers, reducing time to implement new solutions from months to days;
Access anywhere: You are no longer tethered to a single computer or network. You can change computers or move to portable devices, and your existing applications and documents follow you through the cloud;
Elastic scalability and pay-as-you-go: Add and subtract capacity as your needs change. Pay for only what you use;
Easy to implement: You do not need to purchase hardware, software licenses or implementation services;
Service quality: Cloud service providers offer reliable services, large storage and computing capacity, and 24/7 service and up-time;
Delegate non-critical applications: Cloud computing provides a way to outsource non-critical applications to service providers, allowing agency IT resources to focus on business-critical applications;
Always the latest software: You are no longer faced with choosing between obsolete software and high upgrade costs. When the applications are web-based, updates are automatic and are available the next time you log into the cloud; and
Sharing documents and group collaboration: Cloud computing lets you access all your applications and documents from anywhere in the world, freeing you from the confines of the desktop and facilitating group collaboration on documents and projects.

Cloud computing is the platform of the (near) future and this blog will address other forms, products, services and benefits of cloud computing. I will also discuss the benefits cloud computing provide in bridging the digital divide in developing nations and thus, promoting sustainable social and economic development.

Shelterbox: Providing Immediate Relief to Victims of Natural and Other Disasters

2009-10-24T12:36:00.000-07:00

I recently attended a STAR-TIDES research demonstration at the Pentagon, located just outside of Washington, D.C. STAR-TIDES is an acronym for Sustainable Technologies, Accelerated Research-Transportable Infrastructures for Development and Emergency Support, which is geared to organize inexpensive and effective solutions for humanitarian emergencies or post-war reconstruction. Several companies demonstrated fascinating technological products, which have an immediate impact in the developing world or in any humanitarian emergency. One such product is the Shelterbox, a large, rugged, green plastic container that holds a 10-person tent and a range of other equipment necessary in providing immediate relief to victims of natural and other disasters anywhere around the world.

Lakewood Ranch, Florida-based Shelterbox USA, Inc. is a nonprofit organization that provide victims of disaster with shelter and oversees the assembly and delivery of the Shelterbox. For disclosure purposes, this post is not a public endorsement of Shelterbox USA but a review of the Shelterbox and its components.

The nonproft organization explains, "Shelterboxes are sponsored by service clubs, (Rotary Clubs), school and church groups, businesses and individuals, etc. Materials are ordered from a range of suppliers selected for general use, long-life, quality and price. Shelterboxes are prepared and packed using all new materials as delivered from manufacturers, at the Shelterbox warehouse based in Helston, Cornwall. The standard Shelterbox weighs 110 lbs. and has approximate dimensions 2'3" x 1'4" x 11". They are sealed and banded for transit and security. Box contents vary depending on the nature of the disaster requiring their use. Boxes are sometimes packed with two 10-person tents in them, (to the exclusion of some smaller items, to maximize shelter capacity)."

Some of the selected items that are available for inclusion in the Shelterbox are:

One 49 gallon box (The Shelterbox) initially the container for delivery of the materials listed below. Once delivered, can be used as water tank, food store, cot, table, etc.;
One ten-person tent, including two fabric interior privacy partitions, outer fly-sheet and repair kit. These tents are considered 'winter suitable' by international relief standards;
Vinyl insulated sleeping mats and lightweight thermal blankets. More compact than sleeping bags, these mats and blankets have multiple uses. The blanket can also be fashioned to catch water, as a tarp, etc. while the mat also serves as a ground 'table' for meals, or tent rugs;
One pack of 180 water purification tablets or a water purification kit; and one 5 gallon flat-pack water container (each tablet will purify a full container of water providing 1,800 gallons of clean drinking water, which should be sufficient for a family of ten for up to three months);
Two 2.1 gallon, collapsible, plastic water carriers;
One collapsible trenching shovel;
Rope, 164 foot;
Repellant-treated mosquito netting;
Ten PVC Ponchos/ten HD plastic bags;
Tool kit in canvas bag: hachet, jack-knife, screwdriver, hammer, hoe head etc.;
Multi-fueled cook stove;
Eating utensils: enamel plates/cups; and
Children's activity kit-simple school supplies, stickers and coloring book.

The contents are under continuous review. A small stock of wind-up radios (short-wave and FM) has been obtained to substitute a sleeping bag in every tenth box should such a requirement arise. For shipping purposes, a large container (40 feet) can accommodate up to 240 Shelterboxes, smaller containers would typically be half the size and quantities. The Shelterbox is designed to enable a family of up to ten people survive for at least six months. (Photo from Myanmar courtesy of Shelterbox USA)

According to the nonprofit's website, the first 140 Shelterboxes were sent to Gujarat in India following a devastating earthquake in 2001. Since then, ShelterBox has responded to more than 80 disasters in over 50 countries, sending out nearly 75,000 boxes worldwide – providing emergency accommodation for more than 500,000 disaster victims.

U.S. Energy Department Supports Solar Energy Technologies with $87 Million Investment

2009-10-23T11:30:00.000-07:00

On October 8, 2009, United States Department of Energy (DOE) Secretary Steven Chu "announced up to $87 million will be made available to support the development of new solar energy technologies and the rapid deployment of available carbon-free solar energy systems. Of this funding, $50 million comes from the American Recovery and Reinvestment Act. The 47 projects with universities, electric power utilities, DOE's National Laboratories, and local governments have been selected to support use of solar technologies in U.S. cities, help address technical challenges, ensure reliable connectivity with the electrical grid, and train a new generation of solar workers to install and maintain solar energy systems."

While I am concerned with the expansive spending created under the American Recovery and Reinvestment Act, I am encouraged to see investments made in developing solar energy technologies. As I have written in this blog, clean tech research and development is quickly becoming a driving force in the American economy.

DOE's press release further explains, "The selected projects will help accelerate the commercialization of solar technologies in an effort to achieve cost-competitive solar electricity by 2015, in addition to developing advanced solar technologies for the future. Projects focus on both technology improvements and the elimination of market barriers to help make solar electricity accessible to a wide variety of consumers."

The projects selected for negotiation of awards are in four categories:

High Penetration Solar Deployment. Seven projects will model, test, and evaluate the impact of large amounts of photovoltaic (PV) electricity on the reliability and stability of the electric power system. These projects will help pave the way for broader adoption and growth of grid-tied solar energy systems by improving understanding of the impact of PV electricity on the grid;
Solar America Cities Special Projects. As the load centers of energy use across the nation, cities play a strategic role in accelerating solar technology adoption at the local level. Sixteen cities have been selected for projects that will address specific barriers to solar adoption in urban settings and support innovative approaches that can be widely replicated. Many cities will use this funding for multiple efforts;
Solar Installer Training. Nine colleges, universities, and local organizations have been selected to lead regional solar installation "train-the-trainer" programs. The projects will support a national ramp-up and coordinated network of training programs. This funding will help address the critical needs for qualified solar energy system installers; and
Research projects at DOE National Laboratories. Fifteen projects at DOE National Laboratories will seek to improve technologies, devices and processes for both the PV and Concentrating Solar Power (CSP) industry. PV projects focus on development of next generation devices and processes, as well as supply chain technologies for the entire PV system. CSP projects focus on improved energy storage technologies to enable consistent and reliable energy generation.

Win $10,000 in "Apps for Innovation" Contest

2009-10-09T11:35:00.000-07:00

The Consumer Electronics Association (CEA)®, an Arlington, Virginia-based trade association promoting growth in the $172 billion U.S. consumer electronics industry, "launched the new Innovation Movement 'Apps for Innovation' contest and opened an online portal for submissions of software applications for judging by a panel of industry experts. The grand prize winner will receive $10,000 and a free trip to the 2010 International CES®" in Las Vegas, Nevada from January 7-10.

According the CEA's press release dated October 7, 2009, "The contest is looking for developers to build apps that demonstrate how innovation and entrepreneurship are making an economic impact in the United States. The contest will also accept submissions from developers that create apps to help consumers advance policy goals that support innovation."

Furthermore, "The contest is part of the Innovation Movement, the grassroots campaign launched in June by CEA to mobilize Americans in support of public policies such as broadband, alternative energies and international trade that will play a key role in the global economic recovery and U.S. job creation. The mission of the Innovation Movement is to encourage the U.S. government to reward innovation and investment and support policies that foster entrepreneurship in a free-market system. More than 35,000 Americans have already joined the Innovation Movement."

Applications must qualify in one of two categories: apps that illuminate with data how innovation and entrepreneurial activity are at work across America or apps that will help the members of the Innovation Movement advance policy goals that support innovation. Contestants may choose any application platform such as client applications, web-based applications, Java applications, applications for Facebook, the Apple iPhone, the Android phone, etc. Lastly, membership of the Innovation Movement, which is free to join, is required for all contestants. Developers may submit more than one application, but can win only once.

CEA's press release further explains that "in addition to the grand prize winner, judges will award a second place of $5,000 and a third place of $3,500. The best apps will be included in the 'Apps for Innovation' library, where apps will be available for free to the public as a way to help them learn about the innovation economy." The following is the list of judges:

Leslie Harris, president and CEO, the Center for Democracy and Technology;
John Zogby, president and CEO, Zogby International;
Michael Masnick, founder & CEO, Floor64, and editor, Techdirt blog;
Jonah Seiger, co-founder and managing partner, Connections Media; and
Michael Petricone, senior vice president of Government Affairs, CEA

Judging criteria will include:

Potential for furthering the mission of the Innovation Movement;
Potential usability of the app for participatory democracy;
Originality of the app; and
Usefulness to constituents for advocating positive economic, scientific and technological change with their members of Congress.

Submissions must be received before midnight Pacific Standard Time on November 6, 2009 and winners will be announced on November 10, 2009 at a CES Press Event in New York City. For those of you who will be submitting an application for the contest, I invite you to describe your application in the comment section below.

Green Living: Avoiding Asbestos

2009-10-05T12:19:00.000-07:00

By James O’Shea

Going green used to be considered expensive and a luxury for those who could afford the trend. Now it appears that we are learning that not only is adopting more environmentally conscious attitudes good for our economic situation, but also our….health? Yes, if we dig a bit deeper we can see that dirty industries and backwards policy is actually harming the health of the earth for our children and the health of her inhabitants today.

There are two levels of health consequences associated with dirty industry, both direct and indirect. The direct consequences are examples like increased asthma rates in areas with high smog indices. Chlorofluorocarbon release into the atmosphere has shown to decrease the filter of direct sunlight on the planet, resulting in more concentrated ultraviolet light reaching the surface of the earth. Perhaps it is no surprise then that in countries with depleted atmospheric gas, skin cancer rates are among the highest in the world.

The indirect health consequences are harder to see immediately, but closer examination reveals that these are, in fact, perhaps the most hazardous. Bi-products of dirty and backwards industries, such as coal and oil processing, include cancer causing substances like asbestos and benzene. A U.K. study conducted in 2002 indicated that coal and oil industry workers are at a much higher risk of developing mesothelioma and leukemia.

Can we really afford to continue on the path we were on before? Investment in clean industry means not a healthier planet for our children and grandchildren, but also a healthier place for us to live today.

James O' Shea is a public outrach coodinator with the Syracuse, New York-based Mesothelioma and Asbestos Awareness Center (www.maacenter.org), the web's leading resource for asbestos exposure. The opinions expressed in this commentary are solely those of Mr. O'Shea.

Japanese Company Develops Mobile Phone Using Surplus Wood

2009-09-25T07:48:00.000-07:00

NTT DOCOMO, a Tokyo, Japan-based mobile operator and provider of advanced mobile services, announced "it has developed the mobile phone prototype made with the surplus wood of trees culled during thinning operations to maintain healthy forests." The TOUCH WOOD, the prototype's body is made from cypress wood, making it resistent to water, insects, and mildew, which is a result of "three-demensional compression molding developed by Olympus Corporation. Conventional natural wood is not suitable for use as mobile phone bodies because they tend to wear out quickly." According to the press release dated September 24, 2009, "The prototype was created in collaboration with Sharp Corporation, Olympus Corporation and 'more trees,' a reforestation project founded by musician Ryuichi Sakamoto and others." (PHOTO ABOVE: TOUCH WOOD mockup featuring ergonomic design; PHOTO BELOW: TOUCH WOOD prototype based on existing SH-04A model)

Made from surplus wood of trees culled during forest-thinning operations, "each TOUCH WOOD handset features its own distinctive grain patterns and natural coloring. No artificial colors or paints are used, so the cypress retains its original natural appearance and aroma. The wood also has an attractive shine that is created during the compression process."

NTT DOCOMO further explains, "This new commercial use for thinned wood, which traditionally has only limited applications, helps to preserve other wood resources while strengthening the health of overgrown forests. So far, TOUCH WOOD production has used wood culled from the Shimanto forest in Japan's Kochi Prefecture. The forest is managed by the more trees project."

Workshop Focuses on Mobile Innovations in Developing World

2009-09-22T15:47:00.000-07:00

Via webcast, I attended a workshop, "Mobile Innovations for Social and Economic Transformation," organized by the World Bank e-Development Thematic Group (e-TG), whose mission is to "promote the efficient use of ICT in development and World Bank operations by facilitating knowledge sharing on good practices in e-development, and an ongoing dialogue amongst a large and diverse community of practitioners." e-TG said the aim of this event was "to raise awareness of the transformational role mobile technologies can play in improving service delivery, efficiency and transparency by show-casing mobile-enabled innovations in a number of sectors and identifying emerging lessons learned and ways to scale up for achieving operational efficiencies and development impact." (Photo courtesy of Mobiles for Malawi)

This workshop addressed essential topics such as the mobile innovations in financial services, health, education, and governance, and mobile applications in agriculture and rural development. A detailed summary of the presentations may be found on ICT4D.at's blog. (I understand that Florian Sturm of ICT4D.at was providing the summary remotely from an Internet cafe in Ghana. Thank you, Florian.)

While the workshop covered a variety of topics, there were a few common conclusions. Although the capacity to utilize mobile broadband may be cost prohibitive in certain markets, mobile technology is a sustainable solution to educating people, providing medical diagnosis and increasing access to medical treatments, and developing an e-commerce solution to access financial capital and facilitate private sector development. Many of the presentations suggested increased investments to teach people the skills necessary to use and capitalize on the benefits of mobile technology and build the technological capacity required for a vastly expanding marketplace. As human and system capacity grows, the cost of mobile content delivery and devices required to utilize the content will continue to drop. In my opinion, developing nations must continue to deregulate the telecom sector and encourage private sector development including fair and equitable private-public partnerships.

The presenters agreed that the technology currently exists for mobile solutions, but there must be a focus on developing applications and refining business models. Although several successful projects were presented, there were general complaints that often such projects do not bypass the "pilot" stage and accordingly, do not achieve sustainability. Project scalability is another challenge people are encountering in implementing mobile solutions. According to the presentations and subsequent audience questions, impact evaluations and information sharing on project failures can help overcome these problems. Lastly, there is a need to further develop private-public partnerships and identifying viable and committed partners for implementing mobile solutions.

As the Internet has become a regular component to the daily lives of people living in developed countries, a digital divide has grown wide for those living in developing nations. However, over the past few years, I have seen innovative solutions to bridging the digital divide in the world’s most undeveloped nations. While there continues to be challenges in scalability, mobile technologies have and will continue to provide sustainable solutions. I commend the World Bank e-Development Thematic Group for organizing this relevant and informative workshop.

Electronic Medical Records in Clinical and Forensic Practice: A New Pandora’s Box?

2009-09-14T01:38:00.000-07:00

By Jonathan A. Dudek, Ph.D.

Editor's Note: This post is part of a series that addresses the opportunities and challenges of using technological innovation in health care management and electronic health records.

In August, 2009, the U.S. Government announced that $1.2 million in grants would be provided to help hospitals and healthcare providers implement and use electronic medical records (EMRs), to include a system to facilitate the exchange of this information. The benefits of this technology have been well outlined in previous blog entries, such as permitting immediate access to records during a crisis, empowering the patient, and allowing family members to both monitor and assist with a loved one’s medical care. However, the use of EMRs raises a host of clinical, legal, human capital, and even criminal justice issues warranting thoughtful attention and caution.

In medical and psychological practice, there is a morass of applicable federal and state laws governing various aspects of personal health information, such as the Health Insurance Portability and Accountability Act (HIPAA; addressing the disclosure, protection, and electronic transaction of confidential patient information), the Americans with Disabilities Act (ADA; prohibiting discrimination against persons with disabilities with respect to employment practices), and state laws regarding confidentiality and doctor-patient privilege and exceptions thereof. In the latter regard, physicians, licensed psychologists, and other healthcare professionals are bound ethically and legally to keep a patient's healthcare information confidential, although there are exceptions, (e.g., when obtaining insurance reimbursement or when there is a duty to protect a third party threatened by a patient). In a legal context, the patient holds the so-called privilege (his or her right to prevent the clinician from disclosing this information in legal proceedings). Healthcare personnel will, in most cases, release confidential healthcare information only with the patient’s written consent. A critical question is who actually “owns” the information contained in EMRs. Is it the patient, their healthcare provider, their insurance company, the owner of the information management system, or some combination of these? How does this impact the laws governing confidentiality and privilege?

With respect to psychological records, licensed psychologists are required to maintain records in accordance with federal and state laws and professional ethics. They are also ethically and legally bound to protect proprietary psychological test information. Such testing data, when shared, is typically provided to another professional who is trained to understand and interpret the information. Providing such information directly to a patient, examinee, or defendant may be clinically (as well as ethically and legally) contraindicated because this data could be easily misinterpreted and even traumatic. Some specific personal healthcare information (e.g., HIV status and alcohol and drug abuse treatment information) may have special protection under state and/or federal statutes. How will such data be safeguarded electronically, to include accommodating variations among state laws with respect to releasing this information? Will patients have complete access to their medical records in this regard? Who is liable if proprietary information becomes part of an EMR? How will the use of EMRs impact psychologists' tangible record-keeping requirements?

Clearly, as has been observed, safeguards must be in place to protect information contained in EMRs, but the presence of confidential, personal data in an accessible, electronic format, in-and-of-itself, seems problematic. With such global transparency, who has access to this data (e.g., in a medical office, insurance company, data management center, etc.)? Are their different levels of access? Who makes these decisions? There is always the potential for unauthorized access to EMRs, to include identity theft, sabotage, and other forms of cybercrime, such as cyberextortion (e.g., threatening to release embarrassing patient information unless a ransom is paid). There is also an increased potential for external and internal healthcare fraud. An internal case of fraud would involve, for instance, an insurance company employee fabricating and/or altering claim information so that it is paid for personal gain, for a friend or relative filing the claim, etc. An external case of fraud would involve direct collaboration with a medical provider on the "outside," altering claims (e.g., making inappropriate claims appear legitimate, embellishing a claim to increase the amount paid by the insurance company, etc.) for illicit profit.

The use of electronic medical records further raises a host of legal and psycholegal questions. For instance, when processing a "first report of injury," an insurance company may scan a medical document after which it is codified into an electronic format. Employees then examine the scanned document, extract relevant data germane to the claim, and enter this information into an electronic record. There may be restrictions on the number of characters allowed in any given data entry field, so, inevitably, the data is summarized, shortened, etc. As such, the original information is modified while other important information may be omitted. From a legal standpoint, this altering of the original document as well as the potential for error in extrapolating information creates a real potential for heresay (in this case, written statements created by a party outside of a court of law or other legal jurisdiction who is therefore not present in the respective legal setting to make these assertions under oath while also being subjected to cross-examination). Heresay is generally excluded as evidence in U.S. courts, although there are exceptions (see the Federal Rules of Evidence).

In forensic psychological work, the "Devil's often in the details," and the use of EMRs has implications in this regard. During a recent pre-employment evaluation for a police department client, pursuant to a signed release of information from the examinee, I obtained a set of electronic medical records for review. The printed documents were extremely choppy to read to the point of being almost useless. Extraneous and "canned" data fields and descriptions were provided, making interpretation difficult along with the real possibility of drawing invalid conclusions. In essence, one may be creating heresay from heresay. In a courtroom setting, these mistakes would inevitably be drawn out during cross-examination. In such instances, forensic examiners might extract data they could understand and incorporate ethically while being at risk for omitting useful or even critical data. The latter problem is confounded given the time constraints inherent in such evaluations as well as the real difficulty of pursuing due diligence with an out-of-state medical facility (e.g., tracking down the actual provider who entered the data into the electronic record). Recently, a physician informed me about the negative impact of electronic medical records on her busy practice, having to now peruse volumes of irrelevant and poorly organized medical data (again, attributable to the software utilized) to find the same information that was better organized, more clearly written, and more easily retrieved in a written file. She now wastes considerable time reviewing charts. Clearly, such limitations could impact a provider's overall time spent with patients, increase stress, and, most significantly, increase the likelihood of error (e.g., missing critical information during a chart review). Given the sensitive nature of the stored data and the numerous, aforementioned concerns, EMR software producers should be expected, if not required, to maintain the highest quality standards.

The introduction of electronic medical records also impacts the "human side" of medical practice. My internist's medical group recently made the switch, and during appointments I have noted multiple effects of concern. First of all, errors and omissions were made in my EMR during the conversion from printed records to electronic format. Had I not noticed these while being interviewed by a nurse, it is questionable whether or not they ever would have been rectified. More significantly has been the negative impact on the doctor-patient relationship. Nurses and physicians alike now tote laptop computers and, understandably, are preoccupied with the accuracy of data entry and asking mandated prompts, resulting in an awkward conversation while looking at the machine. My physician - a wonderful, empathic person embodying the best qualities of the profession - now seems circumscribed by the dictates of computer software. In making the switch to EMR , the programmers have introduced an elephant into the examining room. Losing the critical bond between doctor and patient because of this new technology would be a travesty; the challenge lies in modifying the technology and/or its application so as to preserve this relationship. To maintain the status quo would seemingly continue a sea change toward McMedicine.

In summary, despite the best of intentions, the creation of electronic medical records has inadvertently opened a new Pandora's Box. The introduction of EMRs impacts the doctor-patient relationship; raises significant questions about the confidentiality, ownership of, and access to these records; creates the potential for a host of related criminal activities (e.g., healthcare fraud, identity theft, and cybercrime); raises questions about the accuracy and interpretation of recorded electronic information, to include its admissibility in court; and unnecessarily complicates the responsibilities of healthcare personnel who must read and interpret sometimes cumbersome and, possibly, inaccurate electronic records, increasing the likelihood for further human error and related liability. Software designers, legislators, and jurists would be well advised to consider these real human and legal implications.

Jonathan A. Dudek, Ph.D. is a forensic psychologist with a national security and law enforcement background. He maintains an international consulting practice assisting developing countries, corporations, and other public and private sector entities with business and program development; human capital and systems-based risk management, risk mitigation, and problem-solving; identifying strategic opportunities; and forensic and investigative consultation. Dr. Dudek may be contacted at jonathan_dudek@hotmail.com. The opinions expressed in this commentary are solely those of Dr. Dudek.

Mobile Phones and Applications Become More Prevalent in Law Enforcement and Investigative Services

2009-09-12T13:16:00.000-07:00

This blog often addresses the opportunities mobile applications create in various sectors such as economic and trade development, telemedicine, and education. Mobile phones and applications are also used investigative services and law enforcement. Sprint Nextel recently announced that the Overland Park, Kansas-based company is collaborating with US Investigations Services, Inc. (USIS) in developing smartphones and applications that help Falls Church, Virginia-based USIS conduct background investigations for the federal government.

According to Sprint's press release dated September 2, 2009, "USIS is the largest commercial provider of security investigation services to the federal government, a leading provider of global commercial employment and drug screening solutions, and a top provider of information services to the insurance industry. Partnering with Sprint, USIS supplies its field staff with Treo™ PRO by Palm® smartphones as part of a program dubbed 'iCompass' to increase efficiencies in coordinating case work in a real-time environment."

In explaining the value of using smartphones for investigative services, Bill Mixon, Chief Executive Officer for USIS, said, "Not only does the Treo PRO streamline the investigative work conducted on our current contracts, it lays the groundwork for future opportunities. Functions like production control and master scheduling give USIS a tangible advantage when handling its varied contracts. This device provides a single interface for existing case management tools and is scalable for growth."

Another example of using mobile phones in law enforcement may be found within the Baltimore, Maryland Police Department. Ben Nuckols of the Associated Press wrote an article explaining that Baltimore's police department will become one of the first agencies in the nation to issue every patrol officer a BlackBerry that allows for instant warrant checks."

The city's police department will use $3.5 million provided by the federal stimulus to purchase 2,000 BlackBerries, known as "Pocket Cops." According to Mr. Nuckols' article, "The devices allow officers to run warrants, check vehicle registrations, and pull up criminal histories and suspect photos." The objective of using the Pocket Cop is to get officers to be more efficient and spend more time outside of their cars. Baltimore Police Commissioner Frederick H. Bealefeld III said, "In the last 15 years in domestic law enforcement, we've trained cops around their vehicle. We've made their vehicle their mobile office. Except that now, they don't leave the office. This Pocket Cop will help move them away from that car and break that tether." Getting police officers to be more mobile outside of their cars will help "repair relationships with residents of the city's poorest and most dangerous neighborhoods, who are often reluctant to cooperate with police."

Already using 100 Pocket Cops, the Baltimore Police Department said, according to the AP article, "the 2,000 additional devices should be enough to equip every regular patrol officer with one, police said. There are more than 3,000 officers in the department. Early reviews for the devices have been positive. Officers using Pocket Cops made twice as many arrests over a 3-month period than those equipped with radios or laptops, according to statistics provided by the department. They also hauled in more offenders on outstanding warrants."

Furthermore, the BlackBerry devices will allow officers the ability to pull up photos of wanted individuals, which make it easier to obtain suspect descriptions and confirm identities should a suspect provide a false identification. Sgt. Shawn Edwards of the department's Violent Crime Impact Division said, "In several instances, it's been great with just identifying people."

Pocket Cops will also allow the City of Baltimore to save money. With an annual service plan, the purchase price of a BlackBerry is $1,700, Mr. Nuckols writes, "compared with $7,800 to install a laptop computer and software in a police car, city officials said. BlackBerries, which are made by Research in Motion Ltd., are likely to take the place of computers for officers who don't have them in their cars, and laptops may not be replaced after they become obsolete, Bealefeld said. The devices are also equipped with global positioning software that will allow commanders to pinpoint exactly where officers are."

Nokia Money Increases Accessibility of Mobile Financial Services

2009-09-08T09:45:00.000-07:00

On August 26, 2009, Nokia introduced "a new mobile financial service offering consumers with mobile device access to basic financial services." Through Nokia Money, many consumers in developing and emerging markets will have access to such financial services for the first time. Services such as Nokia Money are essential since gaining access to financial services is a significant problem for individuals and small and medium-sized enterprises (SMEs) in developing nations. Mobile devices will improve the access of mobile financial services for individuals through money transfer services, which will give consumers a sense of empowerment. SMEs will benefit by improving inventory control, paying vendors electronically rather than mailing or hand-delivering payments, which is not a productive use of time, and gaining improved access to financial services necessary to meet the needs of business growth.

The Finland-based company explains that "Nokia Money has been designed to be as simple and convenient as making a voice call or sending an SMS. It will enable consumers to send money to another person just by using the person's mobile phone number, as well as to pay merchants for goods and services, pay their utility bills, or recharge their prepaid SIM cards (SIM top-up). The services can be accessed 24 hours a day from anywhere, meaning savings in travel costs and time. Nokia is building a wide network of Nokia Money agents, where consumers can deposit money in or withdraw cash from their accounts."

Mary McDowell, Executive Vice President and Chief Development Officer, Nokia says that "with more than 4 billion mobile phone users and only 1.6 billion bank accounts, global demand for access to financial services presents a strong opportunity to combine mobile devices with simple but powerful financial services such as Nokia Money." Nokia is capitalizing on a great opportunity to increase its market share in mobile devices by providing an essential service desired by consumers worldwide. "Mobile payments will be the next step for delivering financial services to hundreds of millions of people, both urban and rural, who are underserved by existing payment means, especially in emerging economies."

The mobile telecommunications company's press release further explains, "The Nokia Money service will be operated in cooperation with Obopay, a leader in developing global mobile payment solutions, which Nokia invested in earlier this year. The service is based on Obopay's mobile payment platform, with unique and newly developed mobile elements. Nokia intends the service to be open and interoperable with other payment services as well."

Nokia Money was created through a collaboration of different partners in different markets around the world. "It is designed to work in partnership with mobile network operators and financial institutions, involving distributors and merchants in a dynamic ecosystem to seamlessly provide the new services." The Nokia Money service was shown for the first time at Nokia World on September 2-3, 2009 in Stuttgart, Germany, and the service will be gradually implemented in select markets in early 2010.

Microsoft OneApp Creates Access to Mobile Apps for Feature Phones in Emerging Markets

2009-08-27T21:28:00.000-07:00

On August 24, 2009, Redmond, Washington-based Microsoft Corporation "announced Microsoft OneApp, a new software application that enables feature phones — commonly found in emerging markets — to access mobile apps such as Facebook, Twitter, Windows Live Messenger, and other popular apps and games." Through OneApp, according to the software, services and solutions company, "people around the world who own feature phones will be able to do more and enjoy a better mobile experience with their existing phones." OneApp is available in South Africa through Blue Label Telecoms and their mibli service and Microsoft plans to launch OneApp in more countries within the next year.

Designed to run on the most popular feature phones, OneApp appears as a single application that allows users to easily access all of their mobile apps. Microsoft explains that OneApp appears on a customer phone as a single application where they can then easily access all of their mobile apps. Here is a list of additional features:

The OneApp lightweight on-phone footprint of just 150 KB makes the initial installation easy and fast;
OneApp dynamically launches just the parts of a mobile app that a person wants to use, eliminating additional installation time and the need for a person to store all of the mobile apps on the phone;
OneApp includes cloud services that help offload processing and storage from the phone to the Internet, improving overall performance; and
OneApp uses data networks efficiently to reduce data access charges, saving money for the customer.

Microsoft's press release says, "Software developers can write new apps for OneApp using industry standards such as JavaScript and XML. The OneApp software developer kit is expected to be available for developers by the end of 2009." OneApp was created under Microsoft Unlimited Potential, which combines advanced technologies and strong partnerships with governments, international organizations, nongovernmental organizations, educational institutions, and technology and service partners into making technology more affordable, relevant and accessible for the five billion people around the world who do not yet enjoy its benefits.

Here is a good demonstration video of OneApp produced by Todd Bishop, co-founder and managing editor of TechFlash and author of a blog on Microsoft:

Win $100,000 for Solving Humanity's Most Pressing Problems

2009-08-24T08:12:00.000-07:00

On August 17, 2009, The Buckminster Fuller Institute announced "the call for entries to the 2010 Buckminster Fuller Challenge, an annual $100,000 prize program to support the development and implementation of a solution that has significant potential to solve humanity's most pressing problems." The Brooklyn, New York-based nonprofit organization explains, "Winning the Buckminster Fuller Challenge will require more than a great stand-alone innovation. If for example, your solution emphasizes a new design, material, process, service, tool, technology, or any combination, it is essential that it be part of an integrated strategy dealing with key social, economic, environmental, policy and cultural issues."

Founded in 1983, "The Buckminster Fuller Institute is dedicated to accelerating the development and deployment of solutions which radically advance human well being and the health of our planet's ecosystems." Their objective is "to deeply influence the ascendance of a new generation of design-science pioneers who are leading the creation of an abundant and restorative world economy that benefits all humanity."

Regarding the 2010 challenge, "The winning solution should exemplify the trimtab principle. Trimtabs are small steering devices used on ships and airplanes which demonstrate how relatively small amounts of leverage, energy, and resources strategically applied at the right time and place can produce maximum advantageous change. Entrants must put forward a bold, visionary, tangible initiative that is focused on a well-defined need of critical importance. Proposed solutions must represent a preferred state model – one that aims to optimize conditions from inception in order to create the most desirable, sustainable, future outcome. Entries should be regionally specific yet globally applicable, and backed up by a solid plan and the capability to move the solution forward."

Entries must be:

Comprehensive — applies a whole systems approach to all facets of the design and development process; aims to simultaneously address multiple goals, requirements, conditions and issues;
Anticipatory — factoring in critical future trends and needs as well as projected impacts of implementation in the short and long term;
Ecologically responsible — reflecting nature's underlying principles while enhancing the Earth’s life-support systems;
Feasible — relying on current know-how, technology and existing resources;
Verifiable — able to withstand rigorous empirical testing;
Replicable — able to scale and adapt to a broad range of conditions.

The winning strategy will integrate all these criteria into a powerful catalyst having the potential to play a significant role in the transition to an equitable and sustainable future for all. Here is a video about the Buckminster Fuller Challenge:

The Buckminster Fuller Challenge from Buckminster Fuller Institute on Vimeo.

Sprint Launches Samsung's Eco-Friendly Phone and Launches New Environmental Initiatives

2009-08-12T17:25:00.000-07:00

According to Greenpeace International, electronic waste (e-waste) "is now the fastest growing component of the municipal solid waste stream because people are upgrading their mobile phones, computers, televisions, audio equipment and printers more frequently than ever before." Despite the several, Greenpeace claims "mobile phones and computers are causing the biggest problem because they are replaced most often." A mobile phone contains 500 to 1000 components including toxic heavy metals such as lead, mercury, cadmium and beryllium and hazardous chemicals, such as brominated flame retardants. Polluting PVC plastic is also frequently used. Considering the wide availability of mobile phone recycling programs, several studies report that only 3-5 percent of mobile phones are actually sent to recycling facilities by consumers. This creates a need to manufacture mobile phones with eco-friendly products and recyclable materials.

On August 16, 2009, Overland Park, Kansas-based Sprint Nextel launched the Samsung Reclaim™, the first phone available in the United States constructed from eco-friendly bio-plastic materials. According to Sprint's news release, "Made from 80 percent recyclable materials, Samsung Reclaim is a feature-rich messaging phone that offers environmentally conscious customers a perfect blend of responsibility without sacrificing the latest in network speeds and must-have features."

The Samsung Reclaim from Sprint is designed with environmentally-responsible components and fully recyclable packaging, which will gain the attention of eco-conscious consumers. Some of the added-value components of the Reclaim include:

Its bio-plastic material, made from corn, makes up 40 percent of the Reclaim's outer casing. Samsung Reclaim is free of polyvinyl chloride (PVC), phthalates, and nearly free of brominated flame retardants (BFR): three materials commonly targeted on green electronics guidelines;
The outer packaging and the phone tray inside the box are made from 70 percent recycled materials. The images and text on the box as well as the phone warranty information are printed with soy-based ink;
The typical thick paper user manual has been replaced with a virtual manual that users can access at www.sprint.com/reclaimsupport; and
The charger is Energy Star approved for meeting the highest energy efficiency standards set by the U.S. Environmental Protection Agency and the U.S. Department of Energy. It consumes 12 times less power than the Energy Star standard for standby power consumption and is equipped with a visible notification to alert the user to unplug the handset once it’s fully charged.

With the release of the Reclaim, Sprint is also expanding its Corporate Social Responsibility program. "When customers purchase Samsung Reclaim from Sprint, $2 of the proceeds will benefit The Nature Conservancy's Adopt an Acre program, which supports land conservation across the United States and protects some of the world's most beautiful and important natural habitats."

Sprint press release also explains the launching of several new environmental initiatives in an effort to support the company's aggressive long-term environmental goals:

Sprint is the first U.S. wireless carrier to establish a set of environmental design criteria for future devices and accessories;
Sprint is implementing a series of new environmentally-responsible retail initiatives including adding a dedicated display area in stores that highlights Sprint's commitment to eco-friendly products and accessories; and
Sprint is committing to reduce paper usage by 30 percent during the next five year.

The Samsung Reclaim will come with Sprint's One Click, a "customizable user interface with quick access to such social networks as Facebook, MySpace, Twitter and YouTube. A new green One Click tile makes its debut on Reclaim providing the gateway to several green applications." These applications include:

Five Simple Steps from Discovery Channel provides five simple changes you can make to be more eco-friendly, from how you commute to what you eat for dinner;
Green Guides from Discovery Channel offers handy guides to help you green your lives with ease, and understand why;
Green Glossary from Discovery Channel provides words and explanations about the Earth and Climate Change; and
All Things Green, a Sprint Web category contains dynamic green headline and links to downloadable content.

Below is a video produced by IntoMobile about the new and innovative Samsung Reclaim.

First look at Sprint's Samsung Reclaim from IntoMobile on Vimeo.

Apply Now for 2010 University of Washington Global Social Entrepreneurship Competition

2009-08-06T15:43:00.000-07:00

I participated as a judge in the 2009 Global Social Entrepreneurship Competition (GSEC) organized by the University of Washington's Global Business Center at the Michael G. Foster School of Business. According to its website, GSEC "engages creative minds around the world to encourage bolder and less conventional business solutions to global poverty." I am pleased to announced that applications for the 2010 competition are being accepted until November 11, 2009. I encourage you to share this information to those who may be interested in applying for this innovative social entrepreneur competition. (Photo courtesy of the University of Washington)

GSEC explains, "Students from around the world—and across fields of study—are invited to find innovative, commercially-sustainable business solutions to problems of poverty in the developing world. GSEC plans are judged on the quality of life in the developing world, financial sustainability, and implementation feasibility." GSEC plans must clearly demonstrate the Social Return on Investment (SROI) in addition to the financial return on investment. In addition, GSEC plans must be for a low or lower-middle income country and need to address poverty alleviation in the developing world.

The application deadline consists of an executive summary and team registration. Executive summaries must conform to the executive summary format as detailed in the GSEC Submission Requirements. Applications go through two rounds of reviews to determine the semi-finalist GSEC teams. In mid-December, semi-finalist teams are selected from the applicant pool and are invited to attend GSEC Week, March 1-5, 2010 at the University of Washington in Seattle, Washington. Once semi-finalist teams are confirmed, they are paired and work with mentors to develop the full business plan. GSEC teams are required to submit a full business plan draft by January 19, 2010 and the final full business plan by February 16, 2010.

During GSEC Week, teams attend exclusive company visits, receive feedback on their presentation and pitch their business ideas to judges as they compete for prize money totaling up to US$17,000. SROI includes the social good of improved health and, in addition to the GSEC grand prize, two prizes in global health will be offered. Please refer to the GSEC global health plan guidelines for more information.

In the 2009 competition, 14 teams from around the world presented their business ideas to judges and the UW community where they competed for US$20,000 in prize money. The 2009 GSEC team members came from nine countries and 15 different academic institutions. Their double-bottom line business plans seeked to create commercially sustainable solutions to issues of poverty in the developing world. The 2009 business ideas included water sanitation in Nepal, solar ovens in Africa, networks for NGO donors, microfinance in Ghana, healthcare and biofuel programs in India, education in Rwanda, and pedal-powered phones in Nicaragua.

Palau's President Creates Blog to Promote Transparency

2009-08-02T22:34:00.000-07:00

In this blog, I often discuss the need for governments, at all levels, to operate more transparently when it comes to formulating public policy or implementing public projects. I am happy to learn that Johnson Toribiong, President of the Pacific island nation of Palau, launched a blog to promote government transparency. Bernadette Carreon wrote an article for the Marianas Variety, a newspaper based in the Commonwealth of the Northern Mariana Islands, saying "the Belau Blog was established to promote direct access to government information and address misinformation." (Photo of President Toribiong courtesy of the ROP)

In an interview given by President Toribiong, according to Ms. Carreon's article, "the blog contains information regarding the executive branch including laws that needed to [be] explained." The Belau Blog will allow Palauans living outside their native country "to access information about the executive branch" and will offer all readers the opportunity to comment on President Toribiong's activities. Posted on July 29, 2009, President Toribiong's first entry said, "Welcome to the Official Blog of the Republic of Palau. As much as we can, we will publish as much news, executive, orders and such on this Blog. Please feel free to comment on this blog but please keep it polite. Thank you very much and hope you visit the blog often."

I commend President Toribiong's efforts in using technology to promote transparency and, I hope, government accountability. I recommend all nation leaders to follow the President of Palau's lead in using the Internet to engage citizens at home and residing abroad. Using blogs and social media services will allow citizens to become better informed on various issues and engage constituents to help formulate solutions to their nation's most pressing problems.