Business Magazine

Crossing the “Valley of Death:” Green Growth in Developing Countries

Posted on the 12 June 2012 by Center For International Private Enterprise @CIPEglobal
Crossing the “Valley of Death:” Green Growth in Developing Countries

(Photo: Tony Karumba/AFP/Getty Images)

Green growth brings various images to mind, from wind turbines to smart cars to solar panels. While these manifestations of green growth connote innovation, advanced technology, and expensive start-up costs, developing countries with limited means can also participate in and reap the benefits of green growth.

In essence, green growth is about making economic growth stable, efficient, and effective in the long-term by taking into account environmental and social factors. It is also about sustainability, and finding the intersection between public goals and profitable investments.

Businesses around the world have begun making green investments. For example, in Ghana, West Africa’s largest per capita consumer of charcoal, Toyota employs over 200 people to manufacture and sell more efficient cook stoves to 35,000 households, offsetting 15,000 tons of carbon dioxide emissions. In Bangladesh, WasteConcern, a social enterprise that converts roadside organic waste into agricultural compost, estimates that between 2001 and 2006 it created 986 jobs annually and generated $1.10 million USD in compost sales whilst providing an alternative to expensive foreign fertilizers.

Although inspirational, these examples of success are few and far between. However, exploring the opportunities in green growth gets at the questions of how to promote innovation in development, address access to energy, and create jobs.

Given the significance of these challenges, development agencies such as the World Bank are engaging the private and public sectors to address green growth challenges. For example, in 2011 infoDev, a partnership program in the Financial and Private Sector Development Network of the World Bank Group, worked with the Kenyan government to capitalize on Kenya’s tremendous entrepreneurial spirit to open the first Climate Innovation Center (CIC). The CIC aims to support local capacity, particularly in the private sector, to develop climate and clean energy solutions and promote local green innovation. Similar CIC’s are planned or opening in India, Ethiopia, South Africa, Morocco, Vietnam, and the Caribbean.

Even when donors are at their side, however, private sector businesses still face numerous obstacles in bringing a green product to market. Among those in the industry, this phenomenon is known as the “valley of death.”  Exhausting registration processes, lack of seed funding, poor manufacturing capacity, and unstable supplies of basic necessities such as electricity and clean water all jeopardize products on their way from inception to the marketplace.

In order for green growth to become a reality in developing countries, they must have institutions that support private sector development and innovation. Brookings Institution scholar Nathan Hultman argued at a recent event that these institutions include a healthy culture for entrepreneurship, accessible and low cost financing, and capacity building programs for people who do not have access to capital.

These are institutions that will build a better business environment for all private sector actors, not just those in green industries. Given the history of economic development, however, they require both time and political will to establish.


You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • Emojis Can Be Used to Show Intent ?

    There has been a lot of talk about emojis when it comes to domain names. It now seems that they are moving their way to be used in court proceedings. Read more

    14 hours, 4 minutes ago by   Worldwide
    BUSINESS, TECH
  • French Onion Chicken

    French Onion Chicken

    I have long been a huge fan of the flavours of French Onion Soup . . . caramelised onion, sweet and succulent . . . cheese . . . toast . . . garlic . . .... Read more

    15 hours, 4 minutes ago by   Mariealicerayner
    FOOD & DRINK, RECIPES
  • Suffer the Little Children - Manchester Monday

    Suffer Little Children Manchester Monday

    As on other occasions recently, I find myself unable to write to theme for this week's blog. In fact I have been sitting here for over an hour trying to find a... Read more

    16 hours, 32 minutes ago by   Ashleylister
    BOOKS, CREATIVITY, CULTURE, SELF EXPRESSION
  • Pandan Chiffon (cooking Method)

    Pandan Chiffon (cooking Method)

    这是我吃过的最好吃的班兰戚风!不夸张,没骗你。这个戚风蛋糕体真的是鬆软到可以做瑜伽,忍不住要小心翼翼地捧在手心。一口一口吃到班兰和椰奶的香,太棒了!Pandan Chiffon (cooking method)(recipe adapted from Wen's Delight)Ingredients:5 egg... Read more

    18 hours, 23 minutes ago by   Cathysjoy
    FOOD & DRINK, RECIPES
  • Chris Blue Winner of The Voice Debuts at No. 1 on Hot Gospel Songs Chart

    Chris Blue Winner Voice Debuts Gospel Songs Chart

    ChristianNews You better let your light shine Chris Blue!!!!!! The  12th season of NBC’s The Voice winner Chris Blue — a worship leader at Cokesbury United... Read more

    The 24 May 2017 by   Firstladyb
    SPIRITUALITY
  • Movie Review: ‘Guardians of the Galaxy Vol. 2’ (Second Opinion)

    Movie Review: ‘Guardians Galaxy Vol. (Second Opinion)

    Movie Review: 'Guardians of the Galaxy Vol. 2' (Second Opinion) Plot: Set several months after the events of the first film, the Guardians of the Galaxy are o... Read more

    The 24 May 2017 by   House Of Geekery
    ENTERTAINMENT, TV & VIDEO
  • Bravery is an Option, Not an Obligation

    It’s interesting to note that in a world where people constantly claim anyone with a conscience or a complaint is being a “special snowflake”, stoicism is... Read more

    The 24 May 2017 by   The Guyliner
    DATING, LGBTQ, LOVE & SEX