Crowdfunding for development: fad or future?

19 Sep 2014 by Benjamin Kumpf, Knowledge Management Specialist

Children picking olives from a treeChildren picking olives at Ostrog Primary School which was made energy independent, through a crowfunding campaign supported by UNDP and the Kaštela Energy Cooperative. Photo: Marina Kelava/UNDP Croatia
Steady growth and, for now, no end of the trend in sight: the crowdfunding market keeps expanding across the globe. Crowdfunding describes the practice of securing funding for a specific project or business venture by a dispersed group of people with some shared interests, “the crowd”. Most crowdfunding initiatives are dependent on whether they raise the targeted amount from the crowd. If the funding goal is not met, the project will not take off. It thus differs to charitable donations which usually support the respective organization’s general mission without knowing exactly how the money will be spent. UNDP has been experimenting with philanthropic crowdfunding and has had some early successes. For example, colleagues in Croatia successfully raised $10,000 for an energy-independent school in Croatia. The sum might be fairly small but the experience showed: crowdfunding can create a buzz for development work and social causes as the unwritten rules of crowdfunding require development organizations to communicate constantly and in a non-technical jargon what concretely was achieved. UNDP has also had some experience ‘failing’ with crowdfunding initiatives. As the saying goes: “Failure is only the opportunity to begin again more intelligently”. Based on lessons thus far, we developed guidance document for UNDP … Read more

Overcoming Barriers to Poverty Reduction: A greater role for the private sector

02 Sep 2014 by Suliman Al-Atiqi, Programme Analyst

Female artisan from the Mosuo community in southwest ChinaLuru-Dashima, a female artisan from the Mosuo community in southwest China, participated in a UNDP/private sector project focusing on improving market access and recognition for traditional ethnic minority handicrafts. Photo: UNDP/China
From C.K. Prahalad’s thought provoking call for eradicating poverty through profits to the newly coined words ‘reverse innovation’, various schools of thought have emerged recently to make a case as to why the private sector could and should do more towards poverty alleviation. Naturally, that case was incubated in business schools—a case for the business community to do more to eradicate poverty needs to be commercially viable. But we, at UNDP’s global policy center for private sector in development (IICPSD), opened the dialogue further and looked outside of the business schools to tap into the wealth of knowledge developed by poverty experts and learn more about various factors that lead to and perpetuate a life in poverty. Our efforts culminated in a recent conference about “The Role of the Private Sector in Poverty Reduction and Social Inclusion”, where we disaggregated poverty data to a basic set of tangible disadvantages that sustain and perpetuate socioeconomic exclusion. We identified five overarching barriers to poverty reduction: Early Developmental, Health, Skill, Social, and Decision-making barriers. The rationale behind this approach is based on the premise that private companies first gather in-depth understanding of the needs and challenges facing their potential consumers before presenting innovative solutions … Read more

Teamwork crucial to accelerate progress on MDGs

15 Aug 2014 by Magdy Martinez-Soliman, Deputy Assistant Administrator and Director Ad Interim of the Bureau for Development Policy

Tanzania: Sustainable forest management helps to improve communities livehoodsTanzania: Sustainable forest management helps to improve communities livehoods. Photo: UNDP in Tanzania
Concerted efforts are being made by governments, the United Nations, a host of development partners and civil society organizations to accelerate progress towards achieving the Millennium Development Goals, established 14 years ago to transform and save the lives of millions who are subject to poverty, hunger and disease. Since 2000, tremendous progress has been made and several MDG targets met — both globally and in many countries. These are impressive achievements, but the road ahead still runs uphill. Many of these successes are unevenly distributed across and within countries, and slow progress on several goals means they may not be met by 2015. The challenges are daunting: global emissions of carbon dioxide keep growing, millions of hectares of forest are lost every year, maternal mortality is still too high, basic sanitation remains out of reach for millions, and many of those infected with HIV go without treatment. It may seem like the list goes on, but what is reassuring is that it is getting shorter. What seemed like a tall order in 2000 to unite governments, the international community, civil society and the private sector to change lives for the better, has accomplished much. With each passing day, the lives of … Read more

Financing Post-2015: A quick run-down of the expert committee’s report

13 Aug 2014 by Gail Hurley: Policy Specialist, Development Finance

The UN’s inter-governmental committee of experts on sustainable development financing met for the last time this month to put the final touches to their much anticipated report on how the world should finance the post-2015 Sustainable Development Goals – or SDGs. I’ve had the opportunity to attend many of the committee’s sessions, and they’ve had a mammoth task. So what have they come up with? You can read the full report here, but below is a quick heads-up. The range of issues they’ve had to cover is massive: from assessing how much cash is needed to finance sustainable development to thinking about where the cash could come from and where these funds should be directed. The report draws up a ‘menu of options’ for the financing of sustainable development. This allows policymakers in different countries to make choices as to what policies and financial instruments are most suited to them. That makes perfect sense of course; the strategy that will be best for a climate-vulnerable small island state such as the Maldives won’t necessarily be the same for a larger resource-rich country such as Kazakhstan. On the other hand, it could also lead governments to ‘cherry-pick’ among the ideas presented, and … Read more

Africa is transforming itself: How do we turn intentions into reality?

08 Aug 2014 by Juergen Nagler, Programme Specialist

Children in DRC help a stuck carBetter investment in infrastructure could help Africa's transformation. Photo: Benoit Almeras Martino/UNDP DRC
Recently I attended an event from the Global Compact, a UN initiative to encourage businesses to adopt sustainable and socially responsible policies. Entitled "Advancing Partnerships and Responsible Business Leadership", it was held for the first time in Africa, bringing over 300 participants together from businesses, Global Compact networks, UN agencies and governments. Africa's economic transformation with various partners from China, Europe and the US was among the key topics discussed. But, while multinational companies do play a role, it is increasingly clear that African policy makers and business people are setting the continent’s agenda. Participants largely agreed that Africa’s transformation requires investment in better infrastructure, education, skills, jobs, policies and more. The WHAT was better articulated than the HOW. Africa is expected to be one of the world's fastest growing regions, with 4.8 percent growth in 2014 and over 5 percent in 2015, according to the recent African Economic Outlook 2014. However, this transformation goes well beyond economic growth. Development practitioners talk more and more about ‘inclusive growth’, agreeing that businesses should go beyond philanthropy and corporate social responsibility towards making their core activities better suited for societies and the environment.  As UNDP's Resident Coordinator in Ethiopia, Eugene Owusu stated: "Inclusive … Read more

Making sense of the world we live in: The development contribution

08 Aug 2014 by Helen Clark, UNDP Administrator

South Sudanese refugees in a Refugee Settlement in Northern UgandaSouth Sudanese refugees in a Refugee Settlement in Northern Uganda. Photo: F. NOY/ UNHCR
It’s hard to remember a time when more crises were jostling for space in the headline news, or when the world’s leading diplomats, like Secretary of State John Kerry and the UN Secretary General, were engaged in shuttle diplomacy on so many issues simultaneously. Top of mind by late last month were the conflicts in Gaza and eastern Ukraine, Syria, Iraq, Libya, South Sudan, Central African Republic and Mali, Nigeria. Meeting the costs of humanitarian relief is proving overwhelming. By the end of June this year, UN coordinated appeals for humanitarian crises had already reached $16.4 billion. This was before the latest conflict in Gaza began, and before a lot of the fighting in eastern Ukraine.  Could more be done to anticipate, prevent, or mitigate these traumatic events? The short answer is – yes and there is a compelling need to try to get ahead of the curve of future crises and disasters, to avert huge and costly development setbacks and lives lost.   Rough estimates suggest that for every dollar spent in disaster preparedness and mitigation, seven dollars will be saved when disaster strikes. It is also true that spending in fragile states which have been or still are immersed in conflict does … Read more

A new global framework for disaster risk reduction

08 Aug 2014 by Carl Mercer, Communications Specialist

Barbados: Members of the community doing practical exercises in disaster management. Photo: UNDP in Barbados & the OECSBarbados: Members of the community doing practical exercises in disaster management. Photo: UNDP in Barbados & the OECS
It is well recognized that disasters are an impediment to the eradication of poverty, so it is no surprise that the upcoming Sustainable Development Goals (SDGs) include indicators related to disaster risk reduction. However, while most attention is on the post-2015 development framework, momentum is also building towards a new framework for disaster risk reduction – a successor to the Hyogo Framework for Action (HFA). Adopted by 168 countries in 2005, the HFA pledges to reduce the impact of disasters through prevention, preparedness, and capacities for emergency response. Over the last nine years, the HFA has been instrumental in galvanizing global support for tackling disasters. And the results during this time have been significant. Countries in all regions have made progress and some have truly transformed the way they undertake development, mainstreaming risk reduction throughout institutions, policies and programmes. However, while a great deal of progress has been made, especially in disaster preparedness, other areas, such as risk-governance, still require a concerted push. In July, I had the opportunity to participate in the first preparation meeting for the successor of the HFA (dubbed ‘HFA2’), and its adoption in March 2015 at the World Conference on Disaster Risk Reduction. Organized by UNISDR … Read more

Turning subsistence farmers into market suppliers in Africa

18 Jul 2014 by Pascale Bonzom, Programme Specialist

woman farmer in UgandaDespite agriculture being a major source of income in Africa, smallholder farmers face many challenges. Photo: Benoit Almeras-Martino/UNDP DRC
As I sat down for my first dinner in Kinshasa, Democratic Republic of Congo (DRC), after a bit more than one year since my last visit, I suddenly remembered that something is very wrong with food prices here. How can a simple margarita pizza with only cheese, tomato, oil and flour, be USD 20? How can local fish be USD 30? Admittedly I did not eat in the cheapest local restaurant, yet the prices are 4 to 5 times more expensive in comparison to similar dishes in Addis Ababa, where I live. Indeed, food in the DRC is at least twice as expensive as the average world food price for basic commodities. Why is that? A combination of poor farmer productivity, lack of infrastructure and a difficult business environment, mean that the cost of producing goods and taking them to markets is high, and imports are often more readily available or cheaper than local products. In 2008, Bralima, one of DRC’s leading brewers, sourced 16% of its rice from outside the country, due to its inability to source it from the local market. With 80 million ha of arable land and 90 percent of it not cultivated, DRC offers huge untapped … Read more

How can we promote peace and development at the same time?

11 Jul 2014 by Ozonnia Ojielo, Coordinator for Conflict Prevention and Recovery

A woman greets members of the technical committeeA woman greets members of the Technical Support Committee of the Peace, Security and Cooperation Framework in Mugunga IDP camp near Goma, DR Congo. Photo: Sylvain Liechti/UN
The 2014 Global Peace Index, which was released last week, revealed that the world has become less peaceful every year since 2008. It also showed that the global economic impact of violence is USD 9.8 trillion – or 11.3 percent of global GDP. While many developing countries have made tremendous progress in reducing poverty over the last decade, these are depressing numbers. However, they reiterate that peace and stability – and the prevention of violent conflict — are inherently tied to sustainable development. A less peaceful world is a much more challenging place to fight inequality and want. Countries experiencing repeated cycles of violence face poverty at significantly higher rates. People in unstable and conflict-affected countries are more than twice as likely to be under-nourished as those in other developing countries; and children in conflict zones are more than three times less likely to be able to attend school, and twice as likely to die before the age of five. Nine out of 10 countries with the lowest human development index have experienced conflict within the past 20 years. We must double down on efforts to mitigate risk and prevent the loss of development investment when conflict strikes. Success today depends … Read more

In Africa, grassroots women tackle climate change

12 May 2014 by Karen Dukess, Communications Adviser

Member of Gatundu Mwirutiri Women Cooperative in KenyaOrganic vegetables grown for sale by members of the Gatundu Mwirutiri Women Cooperative in Kenya. Photo: UNDP in Kenya
Small, portable stoves that require only one piece of wood to prepare a meal, bio-gas digesters that turn cow dung into gas for cooking, and drip irrigation techniques to save water were among innovations shared by grassroots women leaders from Africa during a recent policy dialogue and learning exchange in Nairobi on building resilience to combat climate change and disaster.   Organized by UNDP, Huairou Commission and GROOTS Kenya, the event brought together grassroots women leaders from 11 countries with policy makers from throughout Africa and representatives from the international community. Throughout the three-day workshop, it became evident that grassroots women in communities in Africa are not waiting to be told how to cope with climate challenges, but are initiating, adapting and sharing innovations themselves. “We have seen women mobilizing themselves before being mobilized,” said Isaac Kabongo, executive director of the Ecological Christian Organization in Uganda.  “Women are becoming the drivers of change in the communities in which they live, and are showing that they are very much willing to work together with all partners and institutions to move forward on the journey to resilience.” The need for reliable, sustainable energy was a cross-cutting, common need, and was voiced by women … Read more