Your VITA newsletter for May.

DevelopNet News (mailto:dnn@VITA.ORG)
Tue, 30 Apr 1996 20:14:37 EDT

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Date:         Tue, 30 Apr 1996 20:14:37 EDT
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Subject:      Your VITA newsletter for May.
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       May 1996                                   Volume 6, No. 5

IN THIS ISSUE

NARCOTICS CONTROL

Crop Substitution and Alternative Development

LITERATURE REVIEWS

A War on Childhood Pneumonia

Building Technology: A One-Stop Source

ORGANIZATIONS Systems Group on Forests

Water and Sanitation

VITA PROJECTS

Chad: Targeting Handicapped Borrowers

ANNOUNCEMENTS Computers in Agriculture

Habitat II

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DevelopNet News is published monthly by Volunteers in Technical Assistance (VITA) in Arlington, Virginia, USA. For additional information, please see the end of this newsletter.

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N a r c o t i c s C o n t r o l

CROP SUBSTITUTION AND ALTERNATIVE DEVELOPMENT

Narcotics abuse and production have become international issues. A cou- ple of decades ago people thought that narcotics were primarily produced in developing countries but consumed in developed countries. We now know this is false. Developing countries have been facing abuse problems for some time. Iran, Pakistan, and Thailand have become importers of opium produced in the neighboring countries of Afghanistan, Laos, and Myanmar. The United States and some other developed countries are major producers of marijuana and other illicit narcotics.

The notion that narcotics production and use bring local benefits has also been proven wrong. Statistics show that the average coca or poppy farmer lives in poverty without access to basic health, education, and sanitation services. On a national level, coca cultivation and produc- tion breed an environment of violence which directly harms communities in coca growing areas as well as the narcotics producing countries on a whole.

Can anything be done to stop the cultivation of illicit narcotics? Is there an effective way to halt the adverse developmental, social, and health effects that go hand-in-hand with narcotics production and processing?

To answer these questions, we first need to appreciate the economic importance of narcotics to the country that produces them. Consider Peru, now the world's largest producer of coca leaf, supplying 70% of the worldwide demand for cocaine. In 1994 the Peruvian government esti- mated that the country grew 224,000 tons of coca leaf which it sold for $313 million. Although there is no reliable information on the economic impact of the industry, the US Agency for International Development (USAID) estimates that in 1994 Peru generated between $700 (about 17% of total exports) and $860 million in foreign exchange from the sale of coca. Finally, it estimates that the coca industry employs 120,000 far- mers to cultivate the plant and another 110,000 persons for processing, trafficking, and financial operations, compared with the country's agri- cultural labor force of three million. From the Peruvian example it is clear that any interventions face a difficult task in helping producer economies break their reliance on illegal drug production.

Over the last three decades such large donors as USAID and the UN Fund for Drug Abuse Control have employed a number of techniques to reduce illicit narcotics production and use. The best known are called crop substitution and alternative development.

Crop Substitution

Crop substitution focuses on new or improved crop varieties which, at the very least, must have an equal or greater net economic return rela- tive to the illicit crop that they are intended to replace. The crop plants must adapt to local conditions.

Growers choose illicit narcotics over alternative crops because of their greater profitability and their lower labor requirements. In one area of Pakistan in the mid 1970s, the average net profit from poppy cultivation was Rs. 8,079 (around $700) per hectare. The suggested alternative crop (sugarbeet) that came closest in profit yielded only Rs. 564. Further- more, such crops as coca in Peru often can be harvested three or four times a year, thus providing a continuous flow of income. Although some crops can bring a higher average net profit (like cacao over coca) they tend to be much more labor-intensive and have a lower turnover, making them less attractive than coca or poppy. Only in Thailand did crop substitution efforts find alternative crops (arabica coffee and certain fruits) that met tests of profitability and income flow.

Alternative Development

Alternative development programs aim to reduce illicit narcotics culti- vation by stimulating broader-based development opportunities. They assume that (1) poverty and underdevelopment are the underlying reasons for a farmer's decision to continue narcotics production, and (2) a sig- nificant reduction of narcotics production and processing requires not only the effective employment of crop substitution and marketing strat- egies but also effective law enforcement and education efforts. Thus, programs are usually made up of several components, including the erad- ication of transitional and illegal coca and the suppression of proces- sing and trafficking, incentives for farmers to eradicate their existing stands, and drug awareness education programs. This approach comes clo- ser to compensating a country for foreign exchange losses, assisting its government in maintaining economic stabilization and reactivation of the economy, and generating replacement jobs.

Such projects as the one USAID is currently implementing in Peru usually have an employment and income generating component, an essential servi- ces / community development component, and an environmental protection and awareness component.

Lessons Learned

Unfortunately, most crop substitution and alternative development pro- grams have fallen far short of expectations. Crop substitution programs have failed to introduce crops that yielded an adequate financial return or were easy to cultivate. Alternative development efforts have failed to consider such factors as law enforcement or have failed to incorpo- rate flexible project management that allows them to effectively respond to unexpected local circumstances and have thus significantly compro- mised their performance. In Bolivia, for example, where USAID has been engaged in crop substitution and alternative development activities since 1975, no significant progress was made until a decade later. Then, crop substitution programs helped to increase coca eradication from roughly 200 hectares in 1986 to 8,000 hectares in 1990. However, net coca production increased by 37%! Similarly, in Pakistan, USAID's crop substitution and alternative development efforts were successful within the country's North West Frontier Province, but poppy production merely migrated to bordering areas and no overall reduction was achieved.

Despite some disappointments, three decades of experience with crop sub- stitution and alternative development projects have yielded lessons that may improve future efforts to control illicit narcotics production and use. The most important lessons are listed below:

-- Viable economic opportunities must be available outside of the coca- growing areas for labor employed in the coca sector, along with alterna- tive agricultural inputs to transitional coca growers who remain on the land.

-- No crop can compete with the prices, markets, and added value of poppy and coca unless the prices paid to primary producers are kept down by effective law enforcement.

L i t e r a t u r e R e v i e w s

A WAR ON CHILDHOOD PNEUMONIA

B. R. Kirkwood, S. Gove, and others, 1995. "Potential Interventions for the Prevention of Childhood Pneumonia in Developing Countries: A Syste- matic Review." Bulletin of the World Health Organization, Volume 73, No. 6, pages 793-798.

Acute respiratory infections are the leading cause of death among young children in developing countries. In 1993, 2.6 million children died of acute lower respiratory infections. How can this massive problem be solved? Kirkwood (London School of Hygiene and Tropical Medicine) and his colleagues are developing a systematic plan to reduce the impacts of pneumonia. They found 28 potential areas (categories) of treatment, each with its benefits, risks, and costs. Each treatment area was then stud- ied by international experts, who tried to predict its public health effects.

The 28 areas fall into these groups: immunization, improving nutrition, reducing environmental pollution, case management and chemoprophylaxis, reducing transmission of pathogens, and improving child-care practices. Child-care practices, for example, include care seeking, avoiding chil- ling, maternal education, and child spacing.

The first set of review papers is now being completed. The next step will be to publish the review papers to reach as wide an audience as possible. The authors hope that this will focus attention on a small number of preventive strategies which, in turn, will influence health policy for developing countries and international organizations.

BUILDING TECHNOLOGY: A ONE-STOP SOURCE

Jeremy Ascough, 1995. "Buildings for Low Income-Earners in Zimbabwe." Zimbabwe Science News, Volume 29, no. 1 (January / March), pages 5-7.

With many housing techniques readily available, how does an individual person decide the best way to meet her or his basic shelter need? Jeremy Ascough (University of Zimbabwe, Harare) says, "Over the centuries in Zimbabwe, people have used caves, rock overhangs, dry stone walling, thatched huts of poles and mud, brick houses and [now the] engineered structures of the Harare central business area. Each technique in its time satisfies a specific kind of user with their specific needs and available research base."

But, in practice, adequate shelter is difficult to provide. In many pla- ces, the cost is rapidly outstripping the income of ordinary people. Fortunately, owner-built housing still uses affordable methods that can be managed by the owner-builder.

How can the information on techniques be disseminated? In Zimbabwe, a "Building Forum," established in 1948, is a permanent exhibition of materials and information. Several colleges now include low-cost housing in their courses of study. A "rural homestead," provided with Danish collaboration, is a demonstration unit that combines traditional and modern technology. And the nongovernmental organization Intermediate Technology Zimbabwe has a workshop for women workers, in addition to assisting in setting up production units for roof tile and building blocks. Zimbabwe needs a nongovernmental organization that can coordi- nate these efforts for the consumer, and campaign for better building codes. Government can provide budgetary support such an effort, but cannot easily do the developmental part.

O r g a n i z a t i o n s

SYSTEMS GROUP ON FORESTS

The group is a joint project of two nonprofit organizations: the Rocky Mountain Institute (Old Snowmass, Colorado) and the Global Futures Foundation (Sacramento, California). Its purpose is to define, assess, and recommend ways to promote the most ecologically, economically, and culturally sustainable ways to meet the human needs now met by forest products. It aims to

-- identify the systemic roots that lead to the depletion of forest resources, and to conflicts over forest utilization;

-- conduct independent research on existing and optimal forestry prac- tices, taking into account both present and future needs;

-- design detailed and specific policies that can be readily adopted and through which corporations and governments can adhere to those princi- ples in practice; and

-- pinpoint specific investment and business opportunities to develop, market, and use resource efficient practices, alternative fibers, infor- mation systems and other substitutes that reduce consumption of wood products.

Information: The Global Futures Foundation, 3090 Fite Circle, Suite 203, Sacramento, California 95827; tel. +1 (916) 368-5200; fax +1 (916) 368- 5250; e-mail <mailto:sgforest@aol.com>.

WATER AND SANITATION

WaterAid is a nongovernmental organization that supports water, sanita- tion, and hygiene education projects in developing countries. It works with partner organizations to ensure that they take the lead in the development process. Technology transfer to these organizations involves not only sound engineering, financial, and management skills, but skills in raising funds for their own work. WaterAid gets its funds through public subscription, notably funding drives involving school and civic organizations in the United Kingdom. It has an annual income of UKL 7.7 million.

Projects are located in Africa and South Asia. WaterAid's methods have been admired and emulated by larger organizations, some of which have assumed responsibility for efforts started by WaterAid.

Information: WaterAid, 1 Queen Anne's Gate, London SW1H 9BT; tel. +44 (171) 233-4800, fax +44 (171) 233-3161.

V I T A P r o j e c t s

CHAD: TARGETING HANDICAPPED BORROWERS

VITA's private enterprise development project in Chad, known as VITA/PEP, has been addressing the credit needs of that African country's medium, small and microenterprise sectors for twelve years. Project clients have typically included market vendors, owners of small shops, and small producers of goods and services.

Just two years ago the project began targeting certain entrepreneurs who have even more difficulty getting credit from Chad's formal financial sector: the handicapped. The opportunity came to VITA when the Chadian government and a nongovernmental organization asked VITA/PEP to manage an $8,000 fund for extending credit to handicapped persons.

What can be done with such a small fund? VITA/PEP's director, Evariste Kebba, replies, "First of all, per capita income in Chad is $220, so $8,000 can go a long way. Furthermore, the purpose of the fund is to cover potential loan defaults. Based on an anticipated default rate of ten percent, the fund's estimated coverage is ten times its actual value; in 1994 it was $80,000. Today, with accumulated interest the guaranty fund can cover about $88,000 worth of loans."

Commenting on the social value of the fund for handicapped businessmen and women Kebba says "in countries like Chad it is very difficult for small and microentrepreneurs to get any type of credit. It is almost impossible for the handicapped to be independent business people. Prior to VITA/PEP's intervention, there was no credit available to help them get started and certainly no one to give them business advice tailored to their level of activity."

Building on this experience, VITA/PEP now works with four nongovern- mental organizations that oversee benefits, including training, for the physically handicapped, the visually impaired, and the hearing impaired. With their help, the project has been able to extend its outreach to handicapped entrepreneurs even further.

"To date we have disbursed 193 loans for a total value of $23,244 to 15 groups of handicapped borrowers" says Kebba. "Three of these groups have already obtained second loans. The borrowers are involved in many dif- ferent activities including sewing, embroidery, making doughnuts and spaghetti noodles, operating small restaurants, and selling grains, spi- ces and various items in the market. All of the loan fund is provided by the project which also absorbs all of the costs of training the borrow- ers and disbursing the loans."

The project makes an entire group responsible for managing and repaying the loan. Supervision of the loans rests with two of the project's loan officers.

"The whole disbursement process is time-consuming and sometimes tests the creativity of the loan officers," says Kebba. "Nonetheless, when all the process has been finalized and these entrepreneurs receive their loans, they are very excited at having been given this opportunity and have frequently expressed how happy they are to be more independent, to be able to contribute to their family income and to be relieved from begging for a living. For them, operating their own business removes the typical stigma of being handicapped and better integrates them into society and the local economy. As for the project, we have found the opportunity to work with these groups a rewarding experience, especially as we watch these disadvantaged people gain confidence and experience."

Information: Vicki Tsiliopoulos <mailto:vickit@vita.org>

A n n o u n c e m e n t s

COMPUTERS IN AGRICULTURE

Food, and Biological Systems will host an international conference on computers in agriculture in Cancun, Mexico. The event, which is cospon- sored by the Instituto Mexicano de Tecnologia del Agua, is the seventh in a series of conferences that provide for an exchange of information on applications and use of computers in all agricultural disciplines. The conference will include presentations on the use of computers in agricultural engineering, farm management, dairy / animal science, and aquaculture. It will also feature presentations on various information delivery systems, geographic information systems, appropriate software development, and knowledge-based systems.

Information: Susan J. Buntjer, Meetings and Conferences Manager, Society for Engineering in Agricultural, Food, and Biological Systems, 2950 Niles Road, St. Joseph, Michigan 49085-9659; tel. +1 (616) 428-6327; fax +1 (616) 429-3825; e-mail <mailto:buntjer@asae.org>.

HABITAT II

Today almost half of the world's population lives in cities; projections for the year 2025 show that more than two-thirds will be city dwellers. City dwelling can offer such significant advantages as economies of scale in the provision of jobs, housing and services. But the rapid urbanization that the world is experiencing puts tremendous stress on urban infrastructures and results in poverty rates that often exceed 60%. Furthermore, despite growing investments in housing, more than a third of the world's urban population lives in substandard housing. Forty percent do not have access to safe drinking water or adequate sanitation. These are all concerns of both developed and developing countries.

In response to such problems, the UN will be holding Habitat II, a Conference on Human Settlements, in Istanbul, Turkey, from 3 to 14 June 1996. It will address key issues facing the world's urban areas during the next two decades with a special focus on remedial action in the next five years. Participants will represent local governments, the private sector, nongovernmental organizations, and the academic and scientific communities.

Information: UN Centre for Human Settlements (Habitat), P.O. Box 30030, Nairobi, Kenya; tel. +254 (2) 623033; fax +254 (2) 623080; e-mail mailto:<Habitat2@unep.no>.

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DevelopNet News is an electronic newsletter published monthly by Volun- teers in Technical Assistance (VITA), a private, nonprofit, interna- tional development organization located in Arlington, Virginia. The newsletter needs your stories: you are invited to send them to the edi- tor in electronic form. Your redistribution of DevelopNet News is encouraged. Kindly send us a message on the approximate size of your mailing list; it will be helpful in our planning. Back issues can be downloaded gratis from VITA's BBS and gopher addresses.

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