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       April 1996                                 Volume 6, No. 4
                     ** Fifth Anniversary Issue **


                             IN THIS ISSUE

     TECHNOLOGY WATCH

                 Biotechnology: Africa's Wake-Up Call

     LITERATURE REVIEWS

                        Participative Forestry

                        Doctors' Prescriptions

     ORGANIZATIONS
                           Pueblo to People

                           The Carter Center

     VITA PROJECTS

          How Microcredit Programs Can Become Self-Sufficient


     ANNOUNCEMENTS

                  International Development Conference

             Advanced Technology in The Environmental Field

                              *    *    *


    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.


                              *    *    *

T e c h n o l o g y   W a t c h

BIOTECHNOLOGY: AFRICA'S WAKE-UP CALL

Biotechnology has made a small but exciting start in Africa. Efforts to
develop it further may pay off, but only if needed infrastructure can
grow at the same time. For better understanding, we first examine bio-
technology in a few industrialized countries.

France, Germany, Japan, and the United States have developed biotechnol-
ogy because of the successes of genetic engineering and the promise of
getting new products on the market. Each country has its interests:
Germany primarily invests in pharmaceutical research and development
(R&D) and biochemical processing, while U.S. priorities are human thera-
peutics, diagnostics, and chemicals.

In these countries, biotechnology has grown as large companies develop
their own R&D capacities or take over smaller ones that have scientific
capabilities but lack the needed risk protection that a large organiza-
tion can provide. Larger firms tend to work out beneficial relationships
with governments and universities.

Importantly, developed nations often have policies that encourage and
support basic and applied research and the training of a national man-
power base in science and engineering.


Biotechnology in Africa

Biotechnology offers Africa great potential for development, can provide
basic assistance to agriculture, and can change the fundamental nature
of international trade. Biotechnology research is scattered across the
Continent and mainly carried out in international research institutions,
national research institutions, and universities.

Most biotechnology R&D is directed toward agricultural productivity.
Research goals are traditional: higher yields of plant crops and live-
stock and improved resistance to disease and drought. In Uganda, for
example, R&D at Makerere University and several research stations use
plant tissue culture to develop high-yielding and stress-tolerant
strains of local crops. In Ethiopia, R&D has been limited to crop
improvement and conserving plant genetic material; tissue-culture
research has been delayed by interruptions of funding.

In Kenya too, plant tissue culture is a favorite R&D tool. The Kenya
Agricultural Research Institute sponsors work aimed at the improvement
of the botanical insecticide pyrethrum (an important export) and other
crops, while the control of viral diseases of potato and cassava is the
goal in the National Plant Quarantine Station. The University of
Nairobi, the National Potato Research Centre, the Genebank of Kenya, and
the Jomo Kenyatta University of Agriculture and Technology also have
programs in biotechnology. Cattle breeding, vaccine development, and
disease diagnosis are important R&D areas for Kenya, and projects to
develop vaccines for the cattle diseases rinderpest, anaplasmosis, and
babesiosis have given Kenyan scientists valuable experience in molecular
biology. Human medicine benefits from projects on bilharzia and malaria.

A most important resource is the International Livestock Research Insti-
tute (ILRI) in Nairobi. It is an international center of the Consulta-
tive Group on International Agricultural Research, with access to the
latest techniques in biotechnology. ILRI is developing vaccines against
diseases of cattle; these diseases historically have prevented the
establishment of animal husbandry over vast areas. In addition, mono-
clonal antibodies against livestock diseases have been developed, and
diagnostic methods based on molecular biology have advanced basic know-
ledge of parasites and of epidemiology, especially of diseases caused by
microscopic parasites called trypanosomes. Mapping of the genes of one
important trypanosome has put ILRI in the forefront of world R&D in
molecular genetics.

Zimbabwe had done more to establish biotechnology R&D and to define tar-
get areas than most sub-Saharan countries. Here, tobacco is intensively
studied not just as a local crop, but as a model plant for research, and
Zimbabwean scientists have access to the latest techniques. The country
has a well-developed research infrastructure and coordinates a formal
framework for technology transfer among countries of Southern Africa.
The University of Zimbabwe offers a master's degree in biotechnology.

All of these major efforts are agriculture related. Africa does indeed
have agricultural problems that biotechnology can solve. But there are
good reasons why the nations should diversify their biotechnology inter-
ests. Policy analysts in Nairobi say, "By paying less attention to [non-
agricultural areas], Africa may be limiting its ability to draw from
fundamental advances in other sectors. . . The direction of research in
Africa . . . does not reflect areas with highest potential for long-term
participation in the global economy." Because of the global emphasis on
chemicals and pharmaceuticals, "Africa's traditional cash crops are cur-
rently threatened by biotechnology products, and the Continent must pre-
pare to adjust production to new crops and products." International
trade is vital to every nation and Africans must find new ways of doing
things if they are to compete internationally.


Problems and issues

Many of the important biotechnology R&D institutions in Africa were con-
ceived and developed by non-Africans. The main directions of research
were designed for broad regional and international benefits. Many of
these organizations developed without the primary intent to solve local
socioeconomic problems, develop infrastructure, or engage in policy dia-
log with host governments.

The African manpower base is weak compared to the biotechnology tasks at
hand. The institutions are staffed by undertrained people. In most sub-
Saharan countries, less than eight percent of local scientists have
doctoral training and less than half have postgraduate training. The
impact of low expertise is worsened by lack of equipment. Finally, most
R&D institutions spend too little on research compared with support
activities. In Kenyan national R&D institutions, less than 10% of the
funding goes for research manpower.

Importing scientific information from industrialized nations is a major
problem. African governments generally do not encourage the flow of
information across borders and some countries (Kenya, for example) dis-
courage it. Foreign-exchange and tax policies often hinder the movement
of equipment and information. In most countries, there is no encourage-
ment or infrastructure for technical training, joint research, informa-
tion acquisition, and scientific exchange in the national interest.

Finally, the difficulty of access to genetic resources (in wild popula-
tions of plants and animals) for research presents important issues.
These issues concern scientific access to and conservation of biological
diversity, contrasted with local interests that restrict access and
often destroy diversity. In addition, countries do not sufficiently pro-
tect intellectual property rights to technologial innovation. Only large
organizations can afford the scientific and legal expertise to deal with
these issues. Until they are addressed, it will not be easy to develop
biotechnology in ways that benefit from genetic biodiversity.

Source: Calestous Juma and John Mugabe, 1995. "'Get Up, Stand Up,' . . .
Keep Up." Ceres (Rome), volume 153 (May-June), pages 34-40. The authors
of the paper are with the African Centre for Technology Studies,
Nairobi.


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

PARTICIPATIVE FORESTRY

K.C. Malhotra and M. Poffenberger, 1994. "When the 'Tribes' Protect and
Regenerate the Forest: Experiments in Western Bengal." African Environ-
ment (Dakar), Volume 9, pages 223-236.

The gradual disappearance of tropical forests threatens the existence of
human populations that surround and depend on them. A special issue of
African Environment summarizes remedies and proposed solutions from
Africa, Asia, and Latin America. The world over, 42% of the original
area of tropical forest has disappeared. The figures are a little lower
in Latin America and Southeast Asia. In East and West Africa, 72% has
been destroyed.

Malhotra and Poffenberger, like many other recent authors, believe that
today's predicament is largely the result of forestry practices estab-
lished over 100 years ago. Drawing on experiences in the Indian state of
West Bengal, they show how popular participation in forest management
that truly involves the villagers can save the forests and arrest the
decline in the villagers' economic security. Popular forest management
is successful in spite of the harmful impacts of the "old" forestry,
developed in an age of abundance, when the demographic pressure on the
forests was low.

The concept of participative forestry is barely ten years old and imple-
mentation is considered to be far from easy, according to the authors.
But they find that "poor forest communities want concrete actions to
obtain more dignified living conditions through the sustainable use of
forest resources." It is not difficult to organize forest protection
committees and actively design and participate in the activities that
will save the forests.


DOCTORS' PRESCRIPTIONS

Eduardo Zarate Cardenas and Lucia Llosa Isenrich, 1995. "Prescribing
Habits of Peruvian Physicians and Factors Influencing Them." Bulletin of
the Pan American Health Organization, Volume 29, no. 4 (December), pages
328-337.

How do doctors decide what prescriptions to write? The behavior of
recent medical graduates and established doctors, both groups practicing
in poor sections of Lima, were studied. Their practices were found to be
irrational and inadequate.

Knowledge acquired in medical school had little influence on the pre-
scriptions. Two-thirds of the respondents claimed that the most impor-
tant influence was information from medical periodicals. But the study
showed that advertising materials from pharmaceutical companies are a
key source of information that, in turn, promotes irrational drug use.

Zarate Cardenas (Universidad Nacional Mayor de San Marcos, Lima) and
Llosa Isenrich (Universidad Peruana Cayetano Heredia, Lima) put some of
the blame on Peruvian medical schools, where pharmacology is taught
early in the curriculum, before clinical theory and practice. There is
not enough attention to the rational use of drugs. Thus, "when it comes
time to prescribe, the student will typically consider only the effec-
tiveness of a particular drug, without stopping to consider its adverse
effects, interactions with other drugs, and cost." This shortcoming is
important in Peru (and in many developing areas of the world) where the
production and distribution of drugs are inadequate for actual health
needs.


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

PUEBLO TO PEOPLE

Pueblo to People is a nonprofit "alternative trading organization," or
"fair trade organization". It is thus part of a growing movement of for-
profit and nonprofit organizations dedicated to using international
trade to benefit those that need it the most: poor artisans and farmers
struggling to survive.

Since its incorporation in 1979, the organization has been marketing
high-quality handicrafts and organic food items from over 100 coopera-
tives and production groups in Latin American countries, including
Mexico, Guatemala, El Salvador, Honduras, Nicaragua, Colombia, Peru,
Bolivia and Chile. Pueblo to People believes that buying products from
cooperatives that are owned and democratically controlled by the poor
themselves enhances these groups' confidence and gives them the resour-
ces to address such community needs as health care, education, agricul-
ture, and housing. Many of the cooperatives that the organization works
with have already started their own schools and built community health
facilities.

Pueblo to People also informs and educates Americans and Canadians about
the culture and economics affecting the people who make the products,
and how their action as consumers and citizens affects the poor in Latin
America and the Third World.

Information: Pueblo To People, 2105 Silber Road, Suite 101, Houston,
Texas 77055; tel. +1 (713) 956-1172; e-mail <info@pueblo-to-people.com>.


THE CARTER CENTER

This nonprofit center is dedicated to fighting disease, hunger, poverty,
conflict, and oppression through collaborative initiatives in interna-
tional democratization and development, global health, and urban revi-
talization. It operates 13 core programs and initiatives in more than 30
countries, including the United States. The Carter Center was founded by
former U.S. president Jimmy Carter and his wife, Rosalynn, in 1982.

In support of international democratization and development, the center
has successfully monitored multiparty elections in the Dominican Repub-
lic, Ghana, Guyana, Haiti, Mexico, Nicaragua, Panama, Paraguay, and
Zambia to assure fairness. It also has formed an International Negotia-
tion Network to help resolve civil conflicts peacefully in Bosnia,
Ethiopia, the Korean peninsula, Liberia, and Sudan.

In global health, the center has led a worldwide campaign to eradicate
Guinea worm disease in Africa, India, Pakistan, and Yemen. It is also
leading an effort to increase the worldwide immunization rate for child-
ren from 20% to 80%. Finally, it is coordinating the distribution to 12
million people in Africa and Latin America of a drug that prevents river
blindness. And in urban revitalization, the center's Atlanta Project has
collaborative initiatives in these areas: children, youth, and families;
health; housing; education; public safety; and economic development.

Information: Office of Public Information, The Carter Center, One
Copenhill, Atlanta, Georgia 30307; e-mail <carterweb@emory.edu>.


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

HOW MICROCREDIT PROGRAMS CAN BECOME SELF-SUFFICIENT

Projects for developing private enterprise in poor countries often
include extending small loans to craftspersons and business people. Can
such microcredit programs become self-sufficient? The "reality of shrink-
ing resources available for development" and the urgency of the question
pushed VITA to hold a special conference in February, in the capital
city of N'Djamena, Chad. Participants included bankers on VITA's Board
of Directors, VITA staff, and field staff members; the discussion was
based on VITA's 37 years of experience, the experience of other organi-
zations, and the expectations of donors and investors. Here are the main
conclusions of the conference:

--- If a microcredit project is to achieve self-sufficiency and have an
economic impact, it must reach a critical mass of loans that generate
sufficient income to cover its costs.

--- If the interest rates are set too low in an effort to attract the
poorest of small entrepreneurs, a microcredit project will inevitably
bleed to death financially unless the total mass of loans is very high.

--- To increase their chances of success and attract local capital, pro-
jects should establish a board of volunteer directors. Each of them  has
a commitment to microenterprise development and would work with the
institution to enhance its outreach and diversify its resources.

--- Projects may have to redefine their mission. Unfortunately, this is
not an easy process because it is loaded with philosophical, economic,
political, financial, and social implications that often lead in contra-
dictory directions. Donors want programs to accomplish social and devel-
opment purposes, but also want them to achieve self-sufficiency rapidly.
Governments want programs that help reduce social unrest among the poor,
the unemployed, and discharged bureaucrats. Nongovernmental organiza-
tions want projects that are adequately funded so they can carry out
their multiple obligations.

Henry Norman, VITA's president, asked: "Can such programs become self-
sufficent without sacrificing the social and development benefits that
originally motivated their creation? Will programs be able to continue
offering nonfinancial services such as training or will the goal of
self-sufficiency require a minimalist strategy in which credit and a
short orientation is all that is offered? Does self-sufficiency preclude
offering credit services to more dispersed rural populations because of
the greater cost of administering loans? These and many other similar
questions must be addressed satisfactorily if the transformation process
is to be successful."

A survey showed that few microcredit programs anywhere in the world have
attained commercial self-sufficiency, independent of subsidies, despite
many years of operation. Can such programs as VITA's, which have become
highly successful as social and development efforts, be converted to
unsubsidized credit programs that can generate income sufficient to
cover operations, cost of capital, and depreciation? The Chad partici-
pants concluded that financial and nonfinancial program components may
need to be separated: the financial services can achieve self-
sufficiency, but the nonfinancial ones may have to be subsidized over a
longer period.

Information: Vicki Tsiliopoulos <vickit@vita.org>


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

INTERNATIONAL DEVELOPMENT CONFERENCE

After 50 years of experience in international development, there seem to
be more questions than answers, and more differences of opinion than
consensus on many basic issues. What models of development have worked
and where have they worked? Do successful models in one place and cul-
ture apply to other places and cultures? What are the impacts of rapid
technological, social, and political changes? How can the people and
institutions that are devoted to development respond to the new environ-
ment and provide effective leadership? All these and other issues will
be addressed at the 1997 International Development Conference. The con-
ference will be held 13 to 15 January 1997 in Washington, D.C.

Information: Kathy Morrell & Associates, Inc., P.O. Box 11276,
Alexandria, Virginia 22312; tel. +1 (703) 642-3628, fax +1 (703) 941-
4299, e-mail <74117,324@compuserve.com>, <kmaplan@aol.com>.


ADVANCED TECHNOLOGY IN THE ENVIRONMENTAL FIELD

From 6 to 9 May 1996 the International Association of Science and Tech-
nology for Development is holding a conference in Gold Coast, Australia,
on the use of advanced technology in the environmental field. This con-
ference will act as an interdisciplinary forum for researchers, academ-
ics and practitioners interested in the advances, applications and
effects of technology in the conservation and rehabilitation of the nat-
ural environment and its renewable and nonrenewable resources.

The conference will be divided into several distinct themes. They will
include, but are not limited to the following: water resource management,
hazardous waste (organic, inorganic, radioactive) detection and manage-
ment, environmental data management and analysis, biotechnology, sus-
tainable development, and power and energy systems.

Information: IASTED Secretariat -- ATEF'96, 4500 16th Avenue N.W., Unit
80, Calgary, Alberta, Canada  T3B 0M6; tel. +1 (403) 288-1195, fax: +1
(403) 247-6851, e-mail <iasted@istd.cuug.ab.ca>, URL:
http://www.cuug.ab.ca:8001/~warwodad/iasted.html


                              *    *    *

HOW TO JOIN VITA'S ELECTRONIC FORUM

VITA's free, public, online discussion forum, DEVEL-L, provides for the
exchange of ideas and information on a wide range of issues and topics
related to technology transfer in international development; for exam-
ple, technologies, communications in development, sustainable agricul-
ture, women in development, the environment, small enterprise develop-
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SUB DEVEL-L (your real name, without parentheses)

to this address: <LISTSERV@AUVM.BITNET> or <LISTSERV@AMERICAN.EDU>. You
can receive the same benefits by joining the newsgroup
bit.listserv.devel-l. Recent postings to DEVEL-L are archived on the
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You can subscribe to this newsletter, DevelopNet News, without joining
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Please do not send these messages to VITA or to DEVEL-L.

                               *   *   *

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
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downloaded gratis from VITA's BBS and gopher addresses.

             President: Henry R. Norman <hnorman@vita.org>
              Editor: Vicki Tsiliopoulos <vickit@vita.org>
  Editorial Assistant: Rafe Ronkin, VITA Volunteer <rronkin@vita.org>

VITA specializes in information dissemination and communications tech-
nology. It offers services related to sustainable agriculture, food
processing, renewable energy applications, water sanitation and supply,
small enterprise development, and information management. It has pro-
jects in 6 African countries.

VITA's publications, on a variety of practical subjects, are designed to
assist persons and organizations in developing countries. You can
request a descriptive publications list by postal mail, phone, or fax.
You also may download the list by anonymous ftp or gopher.

VITA's on-line information services: 24-hr BBS: +1 (703) 527-1086 [9600,
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