TWEEK - The Topic of the Week
THE COP SERIES
ENTREPRENEURSHIP CAN BREAK THE ECONOMIC IMPASSE
Nikhil Bramdaw-South Africa 9 December 2011
The culmination of the UN Congress of the Parties (COP) 17 on climate change has further revealed the complex nature of relations between the developed and developing worlds. It has also revealed the extent to which such a neat divide between countries is actually a fallacious one. This emerged in stark relief as South Africa, as the host country for the discussions, faced accusations on the penultimate day of abandoning Africa in favour of aligning with developed countries to address climate change. The idea of advanced developing nations has brought a further dimension to the elusive consensus being sought. A significant constraining factor in Durban has been the global economic context in which the discussions were held. Uncertainty in Europe and the real possibility of a double-dip recession have loomed large over deliberations. Job-shedding globally has also been a concern with some emphasis on how climate change interventions could benefit employment numbers. Ironically, it is because of these factors that entrepreneurship can be seen as a key enabler through the impasse.
Creating work
As jobs are shed, there is an increasing appreciation of the role of entrepreneurship in creating employment, not just in addressing climate change, but in other sectors as well. While some high-tech solutions were covered in the last report from COP17, low-tech solutions also have an acknowledged place in entrepreneurship. In South Africa, the modern rag and bone warrior is a common sight, threading a path through suburban traffic with a trolley full of other people’s waste. This new incarnation, however, discriminates between plastic, paper, glass and metal often specialising in just one of the recyclable waste products. These materials are often sold by the picker to a trader before volumes justify approaching a mass recycling operation. This informal, though organised, system provides a number of obvious environmental advantages. The key advantage, however, is the assurance provided by buyers that a regular (if small) income lies at the end of the waste collection efforts of the day. It is not a model that can claim the creation of sustainable work, but it goes some way to addressing the extreme poverty that bedevils parts of the developing world. COP 17 also saw the unveiling of South African technology that turns waste matter into energy. Developed jointly by South Africa’s Wits University and the SA Nuclear Energy Corporation, this solution is claimed to be able to provide enough power for 10 000 households at full capacity. To do so, the plant will require 91 000 tonnes of waste per annum. The technology is capable of delivering diesel from agricultural waste and should also create about 200 jobs.
Multiplier effects
While the idea of waste-to-energy technology is not new, the model delivers obvious environmental benefits and enjoys enormous potential to enter mainstream energy generation efforts. Much of the debate on work-creation has focused on the shedding of jobs as a consequence of climate change. It is quite clear that there is space for entrepreneurial interventions which can actually create jobs that address mitigation of and adaptation to the consequences being anticipated. In addition, different initiatives bring with them different multiplier effects which have repercussions for local economies and the environments on which they impact. Entrepreneurs will not, however, be encouraged to focus on job creation out of sheer altruism. Incentives which stimulate the entry of small business into the economy and the employment of skills and labour have to be introduced or strengthened as necessary. The challenge lies in identifying and developing these incentives alongside regulators in what is emerging as relatively new terrain. Have your say……