IA3M Group

Welcome!

This is the blog project “Innovations applied to the 3º world”
First of all, we will show the working group. We are Ana, Duarte G, Duarte N, Luís and Vasco.
The main purpose of the blog is to become a dynamic local for the discussion of ideas.
Here we are going to reveal the advances of our project, news and curiosities related with our theme. We hope you enjoy it.

The project

The purpose of this Project is to search innovations that could be applied on third world countries. The main goal of these advances is to drive development forward on these countries, whose possess less both economical and technological capacities. We want these innovations to be an important poverty fighter “weapon” and, at the same time, to allow an environmentally sustainable development, in order not to repeat the mistakes of the past.
We’ll make even more evident that these innovations don’t need to be necessarily new, what will be new is the way of appliance in order to create rentable economies for undeveloped countries as well as for the developed ones.
We hope that, by this way, it could be possible the opening to a new mentality for the existing problems and the possible solutions.

Microcredit - A major example

Financial support in the set up of a water pump factory is a hopeful example that causes a great impact in the developing countries.
In water shortage zones (in poor countries, unfortunately, this has been a growing problem) water pumps gain an important role allowing the exploitation of subterranean water. New designs and concepts make possible the construction of some devices that can be named as appropriated technology, since they bring together some characteristics that make them applicable in countries with few resources. They are mechanisms of high durability, easy use, and have low production and maintenance costs and are easy to reproduce. So, people can make the pumps themselves, creating a positive impact in the local economy.
With a low loan, a craftsman can set up a little manufacture (possibly employing other people) where he will produce and repair the water pumps which will be used by the surrounding population, assuring his own income source and thus improving the daily life of the communities as well.

Microcredit - A real solution

The microcredit can be seen as a true example in which the poverty fight ideals can, in practice, be applicable overcoming the old utopias that by economic, technical or political reasons cannot emerge although they are full of good will. .

Here, the microcredit should be faced as low capital loans to low income people in order to eradicate poverty. The users don’t have access to the traditional bank loans due to the scarce guarantees shown. This way, it’s impossible to start a family business making daily survival a hard job. So, the microcredit appears as a hopeful alternative to these families.

The amount of money involved is low ( in developing countries it usually don’t pass the 220 dollars) and the rates of interest still high when compared with the conventional bank rates but are an alternative to the money lenders (people that lend money with 120% to 300% of rate of interest)
The microcredit rates also support a pack of services included in a microcredit context as technical advertisement (since the main goal is the small businesses), sanitary and nutritional education, basic skills training and also promote an integration in a beneficiary group that help each other improving the chances of success.



We must note that most of the microfinance programs in the developing countries point directly to women, because they are the majority of the under poverty line population and get socially excluded. Although, they show great capacities and the necessary will to manage and expand a business.
Having a stable income source makes possible to pay the loans (the repayment rate is between 95% and 98%) to improve the family lifestyle and also creates conditions that allow children to attend school. These small loans work like a stone in the lake causing a positive impact in the people surrounding the beneficiaries. Small amounts of money produce bigger capitals which make even possible to contract employees helping other families.

The institutions that provide these services work totally or almost in a self-sustainable way because the return loans are reinvested in other loans and services, although sometimes other help is needed like the one provided by organizations, governs and philanthropists.


To guarantee the future of the services, it is considered that poverty, especially in small communities, it is predictable. Sop, it is possible to calculate the associated risk in each business dependent on the kind of activity created, owner’s experience, age, gender, lifestyle etc. This way not only the repayment rates get more secure but also the users trust do.

As we can see, the microfinance’s centers are actual development associations giving back hope and creating valuable opportunities.


For further information please visit:
Grameen Foundation
MicroFinance
Grameen Foundation(Real Example)

EXEMPLE OF ONE BUSHPROOF'S APLICATION

BUSHPROOF

Bushproof is a social privet company registered in Madagascar and in the United Kingdom, founded in 2004 by Adriaan Mol and Eric Fewste, both with working experience in non Parliamentary organisations (ONG), with humanitarian goals and simultaneously with the finality of gathering financial and social profits of their efforts and investments. Their main activities are:
- Low cost perforation and well construction;
- Fabrication of water bombs and water treatment technologies that are able to be utilized on the spot
- Consultation in the water and sanitation sector

Bushproof produced and promoted innovative and effective products characterizes by their low cost, great efficiency, simple use and maintenance, materials of easy access leading to a greater reach by the populations, and by a measurable impact on health and well being as well as a reduction on poverty.. These products are bio-sand and pottery filters, Canzee bombs, SODIS bags, methods of well perforation and micro-solar applications.
In 2005 the company received a Development Marketplace Award from a global contest it entered with the innovation that involved the use of a low cost technique of launching water jets to the construction of holes of little depth equipped with Canzee bombs, so that the production costs would enable the local availability of those bombs.
In 2006 Bushproof used that prize to build 150 wells in Madagascar collaborating with the local ONGs.
The company is already gaining the reconnection of great financers but it still has to give more attention to the production, marketing and negotiation to convince that their products represent an efficient and low cost answer.