Lacking stability in politics and social structure, Libya is a state susceptible to widespread volatility. Its economy is no exception. Developing infrastructure in Libya is key to rebuilding its economy.
Before the 2011 Arab Spring Revolution, Libya exported large quantities of oil to China, Italy, Germany, Spain and Turkey, among other countries. In 2010, Libya had a GDP of $74.76 billion, while Tunisia, a bordering state, had a GDP of $44.43 billion. Following the death of Muammar Gaddafi in late 2011, the country’s GDP fell to $34.7 billion, almost half that of the previous year.
While Libya exported 1.6 million barrels of oil per day before the revolution in 2010, in August 2016, just over 200,000 barrels per day were exported. This dramatic fall can be traced to considerable damage to oil infrastructure in Libya as a result of rival factions and militias feuding after the Revolution. The power struggles were not only the result of seemingly endless internal instability but also the ongoing proxy wars in the Middle East.
The struggle for control over Libya’s oil continues even within the high levels of government, especially between the United Nations-backed Libyan Government of National Accord (GNA) and the Libyan National Oil Corporation (NOC). NOC chairman, Mustafa Sanalla, warned the GNA that the new government had overstepped its bounds by closing the oil ministry and by commandeering some of the NOC’s role.
Without an agreement between the rivaling political parties, the future of oil in Libya remains bleak. In an Op-Ed piece penned for the New York Times, Libyan oil boss Mustafa Sanalla suggests that the only way to “save Libya from itself” is to keep oil and politics separate. However, even as Sanalla has been urging investors to have confidence in the oil infrastructure in Libya, it has continually proved to be turbulent.
The Petroleum Facilities Guard, charged with protecting oil infrastructure in Libya, has fallen into a network of local fiefs. The tension between these competing pockets of power has blockaded nearly all of Libya’s main oil ports, costing the country over $120 billion in lost revenue.
A Brookings Institution report on Libya’s economy recommends that the country “drastically change the management of revenues to ensure they are used in the best interests of the population, for example by using revenues to finance large infrastructure investments, creating productive jobs for Libyans in the process.” Sanalla agrees with this sentiment.
According to the NOC, oil production will reach one million barrels per day for the first time since 2013. This milestone, says Sanalla, would give the NOC the opportunity to “restart the economy” using “oil-sector investment to help develop local industry.”
Stabilizing oil infrastructure in Libya could lead to sustained exports and a more stable economy, and country, for all of its citizens.
– Richa Bijlani
Photo: Flickr
The Success of Humanitarian Aid to Georgia
The country of Georgia is conveniently tucked between the Black Sea and the Caucasus mountain range separating Europe and Asia. For centuries, Georgia’s strategic location has made it a focal point for competition among the Kingdom of Persia, the Ottoman Empire and the Russian Empire and then again by their modern counterparts. In the 18th century Georgia fell under the control of the Russian Empire and then fell again to the Soviet Union. Modern-day Georgia gained its independence in 1991 after the fall of the Soviet Union.
After the fall of the Soviet Union, conflict broke out due to the instability in Georgia. In 1992, a civil war began and Russia sent peacekeepers to the Abkhazia region of Georgia; it has kept a presence there to this day. Following tensions in 2008, the five-day Russo-Georgian war was waged between Georgian rebels, Georgia and Russia. The end resulted in Russia occupying both territories, which are internationally recognized as Georgian territory.
After the end of the war, many western nations reached out to provide humanitarian aid to Georgia. At the time, U.S. President George W. Bush saw an opportunity to both provide humanitarian aid to Georgia and seek a new ally in the region. The U.S. assisted over 275,000 internally displaced persons and refugees from the war, most notably in the city of Gori, where 56,000 people had fled to from South Ossetia.
Over the next several months, international aid organizations and the United Nations also helped to aid internally displaced people, whether through medical aid or through family reunification programs. Due to the humanitarian aid provided by the international community, Georgia was able to mitigate the disastrous damage to its economy.
Perhaps one of the most important things saved in Georgia was its democracy. Almost unique among ex-soviet states, Georgia has been able to sustain a democracy with peaceful government transitions of power between government leaders and political parties.
This stable government has allowed Georgia to fight corruption and slowly grow its economy. Although it has yet to return to its pre-war level and unemployment remains high, the government has signed a trade agreement with the European Union and seeks to negotiate a trade deal with China. Georgia is seeking other international agreements to bolster its economy and its security. Georgia is seeking membership to both the European Union and NATO.
The success of humanitarian aid to Georgia may seem more dramatic than in other countries, but it is a prime example of how aid, over time, can improve the stability of a country.
– Nick DeMarco
Photo: Flickr
Improving Women’s Empowerment in Zimbabwe
The United Nations established 17 goals under its initiative known as the Sustainable Development Goals (SDGs). A major tenet of the SDGs is to promote gender equality. In Zimbabwe, the U.N. has consolidated its efforts to promote women’s and girls’ empowerment through the establishment and implementation of laws, policies and frameworks.
While a push for greater women’s empowerment in Zimbabwe has been codified into law, the practice is oftentimes overshadowed by the actions of traditional society. Despite setbacks such as gender-based violence and limited financial opportunities, a couple of key steps in women’s empowerment have been made in Zimbabwe.
Supporting Women in Leadership
According to the U.N., women’s representation in politics and decision-making positions in Zimbabwe is still below those benchmarked in the SDGs. The UNDP, in collaboration with U.N. Women, held the Zimbabwe Gender Commission and the Women Parliamentary Caucus in support of a High-Level Political Dialogue regarding the upcoming 2018 elections.
Promoting Financial Independence
In 2012, the first Zimbabwe Market Fair was held in its second-largest city, Bulawayo. This two-day fair focused on empowering women and youth and equipped the 134 participants with “pre- and post-market fair training aimed at enhancing their capacity to exhibit and interact with customers.” This targeted instruction not only benefited women but caused a ripple effect on families, communities and the country as a whole.
There is still progress to be made in regards to women’s empowerment in Zimbabwe, but continued efforts through programs and dialogue are paving the way to a more gender-equal future.
– Belén Loza
Photo: Flickr
Expanding Credit Access in Comoros
Improving access to finance is one way to boost economic activity and lift people out of poverty. Looking at recent changes in credit access in Comoros offers clues as to where the country’s economy is headed.
Business Reforms in Comoros
Over the past few years, the government of Comoros has instituted several reforms that make doing business easier. These reforms have made it easier to start a business by reducing the minimum capital requirement. In turn, this has made resolving insolvency easier for small companies and made trading across borders easier with an automated customs data management system.
The International Finance Corporation reports that these reforms have reduced the number of procedures and days needed to start a business. Comoros has also improved its investment potential by offering political risk insurance to foreign investors, which may mitigate fears over Comoros’ recent decades of instability.
Credit Access in Comoros: Looking Ahead
At the 21st session of the Intergovernmental Committee of Experts, in November 2017, participants adopted the final report of best practices and research results for catalyzing growth in East Africa. It clears a path for more cooperation between the United Nations Economic Commission for Africa and member states, like Comoros.
Topics emphasized included investment in infrastructure and renewable energy, as well as the need to improve credit access in Comoros, which will support the private sector. The goal is to make Comoros an emerging country by the year 2030, if not sooner.
The Takeaway on Financing in Comoros
Comoros is finally beginning to establish political calm after decades of political strife and coups, initially ushered in by its vote for independence from France in 1974. Time will tell whether peace lasts, but, if it does, business activity and good credit in Comoros will likely continue to grow.
With a better business environment, Comoros will have the funds to address poverty factors like hunger and malnutrition, and, hopefully, it will continue to make gains in the U.N.’s Human Development Index.
– Chuck Hasenauer
Photo: Flickr
Five Development Projects in El Salvador
Here are five development projects in El Salvador designed to help in all facets from economic to social.
El Salvador Competitive Project
The International Capital Market Association (ICMA) is giving specialized help to districts in El Salvador as a feature of a five-year venture with the essential target of increasing the competitiveness of key economic sectors. The venture is financed by the U.S. Organization for International Development (USAID) and expands on lessons gained from improvements in previous activities.
The project will enhance the national and subnational business conditions to support private-segment speculation, development and business extension to encourage financial development and employment creation.
El Salvador Cacao Alliance
Despite the significance of the cacao harvest in pre-provincial Mesoamerica, cacao bean harvest is practically non-existent today in El Salvador.
A $29.4 million Cacao Alliance, with $10 million provided by USAID and the Howard Buffett Establishment, seeks to help roughly 6,000 little ranchers reactivate the cacao harvest in El Salvador.
The movement hopes to support the horticulture economy and financial development in 83 districts by situating El Salvador as a net maker and exporter of cacao. The reactivation of cacao will improve the livelihoods of agriculturists and create up to 13,000 occupations within the cacao production chain.
USAID Bridges to Employment
Presently, Salvadoran youth living in regions with high crime rates have double the possibility of being unemployed than the rest of the population. Through training and effectively incorporating youth into the workforce, there is a chance to utilize the untapped potential of youth to support financial development in El Salvador.
USAID’s $42.2 million Bridges to Employment Project will enhance frameworks and organizations in order to connect at-risk youth, between the ages of 16 and 29, to employment opportunities.
USAID Higher Education for Economic Growth
USAID created the Higher Education for Economic Growth program in order to increase the education of Salvadoran youth. It plans to create partnerships between industries and academics, so students will be trained to contribute to economic and industrial growth. The program will also train faculty members to create educational programs that will implement these plans.
USAID plans to give scholarships to 1,000 Salvadoran students in priority academic programs, like STEM subjects (Science, Technology, Engineering and Math). Universities will receive support through a scholarship seed fund to develop student financial aid.
SME Development Program
Census statistics show that small and medium enterprises (SMEs) generate 99 percent of business and 36 percent of jobs in El Salvador. The SME Development Program seeks to partner with the government and the private sector to help SMEs have greater success through increased access to business services and expansion into newer markets.
Since 2012, USAID has helped fund over 9,000 SMEs in El Salvador. These SMEs have gone on to generate over $140 million in domestic sales and exports and have created 21,000 new jobs. In 2015 alone, USAID has helped provide $5.2 million in financing to 185 SMEs.
El Salvador is currently addressing the issue of poverty in all parts of its country. With the help of these five development projects, El Salvador will create growth in its economy, effectively providing opportunities for people, and bettering the country.
– Nick McGuire
Photo: Flickr
Strides Made for Women’s Empowerment in Kosovo
Following a civil war from 1998-99, Kosovo was subjected to a decade of international observance, culminating in the country’s unilateral independence in 2008. During this period of change, they instituted an egalitarian law package in 2004, which was demanded by the United Nations Interim Administration Mission in Kosovo (UNMIK). These laws fulfill all European Union requirements and include laws on gender equality, inheritance law and family law.
Women’s empowerment in Kosovo is assumed to be at an all-time high: it has a female president, two female former Deputy Ministers and several other female high-level officials. In addition to this, the Assembly of Kosovo has the second-highest representation of women in the region.
In practice, women still struggle to gain access to property, social resources, personal security and cultural equality. Women’s empowerment in Kosovo has struggled, as women continue to live within the confines of a rigidly patriarchal society, a system in which men have the final say in all family matters, as well as having primary access to all social and economic resources. Many of the main structures of women’s oppression in Kosovo stem from cultural norms that link women’s social value to men.
Another problem facing women in Kosovo is domestic violence. Many women are often at the mercy of a justice system that fails to protect them. Kosovo is unique in the fact that it is cut off from key instruments of European justice due to the unresolved political situation in the country.
Despite the struggles being faced, there are many strides being made for women’s empowerment in Kosovo. The most significant of these is being made by the Organization for Security and Co-operation in Europe (OSCE) Mission in Kosovo.
The OSCE promotes women’s empowerment, gender equality and women’s rights by supporting the development and implementation of non-discriminatory legal frameworks and policies. It also focuses on women’s participation in public decision-making and gender-responsive budgeting, ensuring the interests of women and men are equally considered. Additionally, they raise awareness of the need to eliminate gender-based and domestic violence.
With the work of other initiatives that seek to impact women’s empowerment in Kosovo, the situation is constantly improving and positive strides are being made.
– Drew Fox
Photo: Flickr
Five Development Projects in Fiji
Community Youth Empowerment Project (CYEP)
The Community Youth Empowerment Project is an initiative by the Peace Corps. The program seeks to focus on the promotion of behavior change and empower youth to live more productive lives. CYEP also includes activities that are targeted towards parents and youth service providers to promote positive youth development. The volunteers who carry out the project often serve as teachers of life skills and health classes in a middle or high school setting. The volunteers also work outside of schools performing community-based development.
One volunteer, Kelli Maddock, uses music as a method of teaching life skills to youth. “Most of the time, I use music therapy techniques such as lyric analysis to enhance critical thinking skills in regards to life skills, singing to boost self-esteem or songwriting to increase confidence,” wrote Maddock in her article for the Peace Corps. One song that Maddock has used is “Blurred Lines” by Robin Thicke and Pharrell to address the topics of consent, rape culture and victim-blaming.
Fiji Development Bank Project
Seeking to create innovative financial solutions for businesses in Fiji, the Fiji Development Bank Project provides loans for various industries. These loans include commercial loans, bus loans, small and medium business loans and agricultural loans. The project has been established for 50 years this year.
Fiji Community Development Program (FCDP)
Funded by the Australian government, one of the development projects in Fiji is the Fiji Community Development Program. The FCDP seeks to mitigate the social and economic hardships faced by vulnerable and poor communities. It does so by funding community development work and improving the Civil Society Organization’s (CSO) capacity to provide necessary programs for vulnerable communities. The FCDP also focuses on promoting enhanced communication between the government and CSOs and increasing the resilience of the communities by giving them the tools and knowledge needed to deal with hardships when they arise.
United Nations Development Programme (UNDP)
The United Nations Development Programme aims for effective governance, inclusive growth, resilience and sustainable development and gender equality in roughly 170 countries and territories. Their initiatives in Fiji include promoting sign language as a method of acquiring equal access to services and advocating for rights. The UNDP also provides aid to neighboring countries like the Solomon Islands by conducting safety drills for students in preparation for tsunamis and other natural disasters.
Australian Centre for International Agricultural Research (ACIAR)
The Australian Centre for International Agricultural Research seeks to improve the development of the Pacific region islands by working with their civil societies and government. The ACIAR believes in the importance of agriculture, forestry and fisheries sustaining households across the Pacific islands, including Fiji. The ACIAR also aims to invest in and empower women, as women play a key role in household food gardening, tree production and the marketing of horticultural and fisheries products. The ACIAR seeks to reduce poverty by transforming agricultural, fisheries and forestry into income-generating activities.
With these development projects in Fiji, the country will be able to continue to grow and reduce its poverty rates.
– Blake Chambers
Photo: Flickr
The Success of Humanitarian Aid to Haiti
Since the 2010 earthquake, there has been an increased focus on humanitarian aid to Haiti. Many argue that not enough has been done when it comes to providing humanitarian aid to the country.
In an Op-Ed written for The Guardian, Unni Karunakara, the former International President of Médecins Sans Frontières, stated that there was an inadequate response to the cholera outbreak that struck Haiti following the earthquake. At the time he wrote the article, his colleagues had already treated over 75,000 cases of cholera.
In another article for the Huffington Post, Cynthia Kao wrote that Haiti is one of the poorest countries in the world and that a lack of partnership by international organizations has led to the unaccounted use of aid money.
Some organizations, such as USAID, have been striving to make a positive impact and address the persisting challenges of providing humanitarian aid to Haiti. In 2017, St. Boniface Hospital in Haiti was able to build an additional surgical ward through a grant provided by USAID’s Office of American Hospitals. The new surgical ward was put to immediate use, saving many lives in the process.
USAID also served as one of the primary relief organizations in the aftermath of the 2010 earthquake. The organization provided emergency food assistance, emergency shelter, search and rescue, rubble removal, classroom construction and assistance with the cholera outbreak, among other things. USAID has also made efforts in combating corruption within the public sector along with improving the transparency of financial management.
After the disastrous effects of Hurricane Matthew in October 2016, USAID deployed a Disaster Assistance Response Team to Haiti to lead the United States’ response efforts. USAID’s humanitarian aid to Haiti following Hurricane Matthew included shelter assistance, food assistance, healthcare and sanitation. It also provided a joint task force for the movement of emergency relief supplies and humanitarian personnel, with a total of 98 flights delivering aid to 13 hard-to-reach communities.
Key advancements have been made in health services, agriculture, municipal governance and legal protections for vulnerable populations. Within the agriculture sector, positive results include improved seeds, provision of fertilizer, innovative farming technologies and $12 million private sector funds that were allocated to creating more than 13,000 jobs.
Despite the problems in ensuring adequate humanitarian aid in Haiti over the past few years, organizations like USAID seem to be making strong efforts in helping the country. While challenges remain, the ongoing improvements and positive impacts will continue to make a difference in Haiti.
– Blake Chambers
Photo: Flickr
Credit Access in Haiti is Growing
The credit financial system allows one party, typically a bank, to provide money as a loan to another party who is obliged to repay and return those resources at a later date. The process of obtaining credit is relatively easy in places such as the United States. However, credit access in Haiti and other small countries is not as simple.
Credit is beneficial to entrepreneurs because it offers a way of obtaining funds that is not illegal. It is also convenient as it offers a system for repaying the loan in the future, when funds are available or when people have a higher income. People can do this as a one-time payment, or they can pay off their credit in a developed installments plan.
For micro and small businesses, especially, credit access in Haiti is very limited. This makes it all the more difficult to establish any sort of entrepreneurial endeavor. The reality of the situation can actually be rather tough: very few individuals can afford to start a practice entirely from their own savings. This is why loans or other forms of investment are necessary.
The Multilateral Investment Fund (MIF) has been working to improve access to new economic opportunities to the over 50,000 micro and small businesses in Haiti (2013). The MIF strategically plans to expand financial services beyond the capital city of Haiti, which is Port-au-Prince.
Fortunately, there are companies that are working to improve access opportunities for those who need it most. For example, in 2010, Technoserve and its partners initiated the Haiti Hope Project. The projected goal was to double the incomes of 25,000 mango farmers within five years of joining. This goal would be accomplished by creating relationships between the mango farmers located in rural areas and investors in the capital.
Many of these farmers were previously excluded from financial programs, making it difficult to kick start and fund any sort of business. This fact is exacerbated given the environmental and economic competition also occurring in the country. The results of the Haiti Hope Project show that 44 percent of the participants now have access to credit.
While credit access in Haiti is still limited, in comparison to other countries, there is a lot of progress being made. Thousands of rural farmers and micro-entrepreneurs are being offered credit and other financial resources. Once adequate incomes are generated, and businesses are steadily entering and competing in the market, the loans can be paid off.
Credit, while seemingly complex, can be a simple way to change the market and economy of countries in need of growth and development.
– Caysi Simpson
Photo: Flickr
Oil Infrastructure in Libya: The Key to Rebuilding its Economy
Lacking stability in politics and social structure, Libya is a state susceptible to widespread volatility. Its economy is no exception. Developing infrastructure in Libya is key to rebuilding its economy.
Before the 2011 Arab Spring Revolution, Libya exported large quantities of oil to China, Italy, Germany, Spain and Turkey, among other countries. In 2010, Libya had a GDP of $74.76 billion, while Tunisia, a bordering state, had a GDP of $44.43 billion. Following the death of Muammar Gaddafi in late 2011, the country’s GDP fell to $34.7 billion, almost half that of the previous year.
While Libya exported 1.6 million barrels of oil per day before the revolution in 2010, in August 2016, just over 200,000 barrels per day were exported. This dramatic fall can be traced to considerable damage to oil infrastructure in Libya as a result of rival factions and militias feuding after the Revolution. The power struggles were not only the result of seemingly endless internal instability but also the ongoing proxy wars in the Middle East.
The struggle for control over Libya’s oil continues even within the high levels of government, especially between the United Nations-backed Libyan Government of National Accord (GNA) and the Libyan National Oil Corporation (NOC). NOC chairman, Mustafa Sanalla, warned the GNA that the new government had overstepped its bounds by closing the oil ministry and by commandeering some of the NOC’s role.
Without an agreement between the rivaling political parties, the future of oil in Libya remains bleak. In an Op-Ed piece penned for the New York Times, Libyan oil boss Mustafa Sanalla suggests that the only way to “save Libya from itself” is to keep oil and politics separate. However, even as Sanalla has been urging investors to have confidence in the oil infrastructure in Libya, it has continually proved to be turbulent.
The Petroleum Facilities Guard, charged with protecting oil infrastructure in Libya, has fallen into a network of local fiefs. The tension between these competing pockets of power has blockaded nearly all of Libya’s main oil ports, costing the country over $120 billion in lost revenue.
A Brookings Institution report on Libya’s economy recommends that the country “drastically change the management of revenues to ensure they are used in the best interests of the population, for example by using revenues to finance large infrastructure investments, creating productive jobs for Libyans in the process.” Sanalla agrees with this sentiment.
According to the NOC, oil production will reach one million barrels per day for the first time since 2013. This milestone, says Sanalla, would give the NOC the opportunity to “restart the economy” using “oil-sector investment to help develop local industry.”
Stabilizing oil infrastructure in Libya could lead to sustained exports and a more stable economy, and country, for all of its citizens.
– Richa Bijlani
Photo: Flickr
Infrastructure in Bangladesh
Bangladesh has long been considered a country approaching middle-income status. Economically, it has been slowly improving poverty levels throughout the nation. However, one major issue stands in the way of further progress: infrastructure in Bangladesh.
Obstacles to Improving Infrastructure in Bangladesh
Under the Sixth Five Year Plan, which was in operation between 2010 and 2015, the government hoped to achieve eight percent GDP growth by the end of the plan. However, the poor infrastructure development was a major obstacle. Infrastructure includes physical and organizational structures, like access to efficient water sanitation and transportation systems, both which greatly contribute to reducing poverty and improving the economy.
At a five-day meeting on infrastructure, hosted by Bangladesh in 2008, officials said it would take $20 billion in investments to develop a high-quality infrastructure system in the country. Most of this money would come from organizations like the Asian Development Bank.
The Asian Development Bank (ADB) has other projects set up in Bangladesh, such as the Urban Governance and Infrastructure Improvement Project, which takes a community-driven approach to improving infrastructure. Though these organizations contribute to the growth of infrastructure in Bangladesh, it is ultimately up to the government to implement concrete goals and achieve tangible results. The funds committed are vital to the success of such projects, however, there must also be an organized and transparent method of spending these funds.
Current Infrastructure Improvements
Recently, the government of Bangladesh took steps towards improving the infrastructure of its own country.
In March 2017, $2 billion of Bangladesh’s foreign reserves were poured into an infrastructure fund. Further, a legal framework was drafted in order to make this monetary contribution an annual occurrence. While this is a positive improvement, it is not nearly enough to create a completely effective infrastructure system.
In order to successfully improve infrastructure in Bangladesh, there must be an increased commitment from the government, in addition to foreign investments. This will ensure that large-scale projects will be funded continuously and in a transparent manner. These changes will result in further improvements in the future and help the development of Bangladesh.
– Liyanga de Silva
Photo: Flickr