Published on NextBillion.net - Development Through Enterprise (http://www.nextbillion.net)

Month of May in Review


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NextBillion News vol.15 June 4, 2006
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Where Business and Development Meet

[Contents]

1. A New Model for Rural Connectivity

2. World Bank’s Development Marketplace Results

3. Featured Activities: Development Marketplace Winners

4. Featured Blog: Microfinance and IT--Glass Half Full or Glass Half Empty?

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1. A New Model for Rural Connectivity


What if the ultimate Internet access device turned out to be a phone? Despite all the efforts to spread Internet access, it is the mobile phone that has so far gone farther and faster into developing countries. Use of text messaging, a data service that costs less than voice, has exploded where it is available. Now three disruptive technologies working together may bridge the divide even more effectively: fixed wireless networks (WiFI and WiMax) that are optimizied for data and are cheaper than mobile wireless; Voice-Over Internet Protocol (VOIP), that uses bandwidth efficiently; and WiFi phones (or mobiles with WiFi chips added on) that can provide local "walk-around" service within a local WiFi network.

This combination, described in more detail in a work-in-progress paper called A New Model for Rural Connectivity, can make local-to-local calls almost free. And phones don't require tech support or pose literacy and language barriers--other aspects of the divide. Yet they can provide a growing list of phone and voice-based Internet services.

To learn more, check out http://www.nextbillion.net/files/A_New_Model_for_Rural_Connectivity.pdf [1]


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2. World Bank Development Marketplace Results

The World Bank Development Marketplace (DM) competition took place this year the second week of May. DM is “a competitive grant program that funds innovative, small-scale development projects that deliver results and show potential to be expanded or replicated.” This year’s competition, entitled, "Innovation in Water, Sanitation, and Energy Services for Poor People," drew together some highly enthusiastic, dedicated entrepreneurs with business models that screamed practicality and triple-bottom-line profits. There was $5 million in grants at stake—yet, how effective is a competition like DM in reality? John Paul finds hope and disappointment in the atrium of the World Bank. Read his perspective and lend your own:

missed-opportunity... [2]


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3. Development Marketplace Winners

This year, 30 projects nabbed a grant from Development Marketplace’s $5 million pot. They were culled from 2525 entries from 154 countries, and 118 finalists from 55 countries. They represent some of the most exciting and freshest solutions for providing water, sanitation, and energy services to the poor. NextBillion’s Activity Database features DM projects from 2006 and previous years that integrate economic sustainability into their project designs, for example:

Kamworks Solar Products—Cambodia
Founded by three Dutch men in 2005, Kamworks is a Cambodian company that aims at the production and sales of solar energy and other off-grid systems to promote rural development through commercial activity in Cambodia.
http://www.nextbillion.net/activitycapsule/2675 [3]

DESI Power—India
Decentralised Energy Systems India (DESI) runs a "Village EmPower Partnership project" to help provide energy and jobs in rural villages of India in an environmentally sustainable way. Each small biomass power plant (100kw) built by DESI is owned by a village cooperative and creates at least 50 direct and indirect jobs per village. The increased income particularly helps improve the health and overall quality of life for women, while also increasing farm output and incomes.
http://www.nextbillion.net/activitycapsule/2682 [4]

Information on all DM finalists and winners is available at:
http://www.developmentmarketplace.org/ [5]


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4. Featured Blog: Microfinance and IT--Glass Half Full or Glass Half Empty?

Rob Katz, from NextBillion.net and a presenter at USAID’s Microfinance Technology Fair in early May, wrote back from the event with reservations and optimism for microfinance projects that strategically leverage technology:

Optimists often cite microfinance as a "development success story," but realists know the truth--it suffers from high interest, misrepresentation of repayment rates, poor risk management, and insufficient scale…Similar unrequited optimism is often true for information technology--there's a lot of talk about the benefits of computers, PDAs, cell phones, the Internet, etc. when it comes to development. Take off the rose-colored glasses, however, and you'll notice a slew of defunct telecenters and failing IT-for-development projects, where the absence of business plans/models couldn't overcome the innovative application(s) of technology…

Read more, and add your perspective:
lf-full-or-glass-half-empty... [6]


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NextBillion News vol. 15 June 4, 2006

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Thank you,
Development Through Enterprise Team
World Resources Institute

http://www.nextbillion.net [11]
http://www.wri.org [12]
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