Beginning in 2012 and concluding in 2016, the Battle of Aleppo has been a major war of attrition in the fight against the so-called Islamic State as well as served as a major impediment to the Astana Peace Process. Often dubbed ‘Syria’s Stalingrad’, the city of Aleppo is still reeling from the social, economic, and political ramifications of the offensive since the ceasefire deal reached last year in 2016.
With the death toll currently standing at over 31,000, many individuals continue to face the threat of internal displacement, diseases, and other human rights violations.
Aleppo in the Syrian Economy
Aleppo, an important city with a population of 2.3 million individuals, used to make up a notable part of Syria’s GDP in the past with its economic potential. Approximately, 60 percent of the city has been devastated — a significant proportion of that destruction being landmark cultural and heritage sites. As if infrastructure mistreatment wasn’t enough, the Battle of Aleppo was also infamously known for the rebels’ use of civilians as human shields and other forms of modern slavery.
According to the World Bank Group, the economic cost of the war comes to €200 billion so far. Over 1 million people were forced to flee the city — an influx to Europe that contributed significantly to the 2015 European Migrant Crisis. Consequently, since the beginning of 2017 alone, 300,000 people residing in Aleppo were forced to leave the city.
Humanitarian Aid
During the Battle of Aleppo, a significant number of humanitarian aid initiatives were spearheaded by the United Nations Office for the Coordination of Humanitarian Affairs (UNOCHA). The United Nations Security Council Resolution 2165 was instrumental in ratifying the supply of aid to the country, particularly across border crossings and other obstacles.
In October 2017, the International Committee of the Red Cross (ICRC) reported casualties that amounted to the hundreds. Many schools and hospitals were destroyed in the crossfire of the combat against the Islamic State and other extremist groups in the country. Rural areas in the country faced especially damaging impacts since over 27 percent of Syrian homes were destroyed during the course of the Battle of Aleppo.
The U.N. has recommended that over $3.5 billion is needed to cover the social, economic and human costs of the Syrian Civil War. This figure means that Aleppo will hopefully be given a greater focus and priority in the future through the globe’s increased channeling of funding and resources.
Humanitarian aid is taking on a pivotal role in order to address the situation’s immediate needs. Russian military officers have delivered a batch totaling 1.3 billion tons of aid and, as a part of the initiative, 300 sets of food were also provided. Similarly, Iran also delivered humanitarian aid to rural areas of Aleppo with an aid convoy of 200 tons of food, clothing and medicine for affected civilians.
Aid Efforts
Various aid organizations currently address water and sanitation needs by equipping households with water tanks as full supply has still not been restored in many communities. Moreover, UNICEF has delivered water to over 700,000 individuals in Aleppo and aids in the maintenance of water storage tanks in the city.
Currently, the reconstruction of the city and resettlement of civilians in the future remains top priorities for various stakeholders, as many returning civilians come home to a city in ruination. To date, over 332,000 individuals have returned to Aleppo so far.
Based in the city of Budapest is the humanitarian program of the Aleppo Project, which acts as a large collaboration between various refugees, students and experts. The organization is active in Lebanon and Turkey and works concertedly to restore the city to order. Their focus on the Geographic Information Systems (GIS) is the establishment of a participatory planning system that will help continue the present post-crisis restoration of the entire city. Within the city, the UNHCR is providing returning civilians with items like protective equipment to help them regain control of their lives.
With the city of Aleppo continuing to act as a major epicenter of the Syrian civil war, safe passages and avenues are needed for the affected and the vulnerable to remain protected. At this juncture, sustainable aid is thus required in order to have an effective solution to the crisis and mitigate negative impacts.
– Shivani Ekkanath
Photo: Flickr
The Success of Humanitarian Aid to Serbia
Due to poor leadership and an increase in nationalism in the late 1980s and early 1990s, the Federation of Yugoslavia began to disintegrate. Member states began to declare independence, and by 1992, conflicts began to break out all over Yugoslavia. For the next 15 years, the Balkans would be associated with political and cultural strife, creating a need for international assistance and eventually leading to the success of humanitarian aid to Serbia.
In 1992, the International Rescue Committee (IRC) began work in Serbia. The modern goal of the IRC is to provide humanitarian assistance to those affected by conflict. The IRC assisted the people of Serbia though conflict until 2004 and has been a major indication of the success of humanitarian aid to Serbia.
In response to the migrant crisis that affected the Balkan region in March 2016, the Serbian government, European Commission, the IRC and other international and Serbian-based charities initiated a response to provide those stranded with humanitarian aid. The European Commission allocated €25 million in funding for the Serbian government to assist refugees and fund other humanitarian aid projects. Much of the money allocated for refugees has been spent on government-run reception centers. The goal of these centers is to track and assist the over 4,000 refugees in Serbia.
Refugee Aid to Serbia (RAS) is a charity located in Belgrade, the capital of Serbia. This local charity works in conjunction with international charities such as NGO North Start and the International Women’s Club, to provide food, education, clothing and legal aid to those stranded throughout the country.
While the number of refugees in Serbia may seem small in comparison to other European nations, the impact on the local economy of Serbia has been significant. This is due to its smaller national economy and population.
– Nick DeMarco
Photo: Flickr
Women’s Empowerment in Liberia
Liberia experienced 14 years of civil war between the years 1989 to 2003, which totaled in more than 250,000 casualties. After 2003, the country spent several years undergoing reconstruction and since then, progress has been made in achieving women’s empowerment in Liberia.
In 2006, Liberia became the first country in Africa to democratically elect a woman president, Ellen Johnson Sirleaf. Along with Leymah Gbowee, the leader of the women’s peace movement, President Sirleaf quickly became a symbol for women’s empowerment in Liberia.
In an interview she gave in April 2017, Leymah Gbowee explains that the real beauty of the fight for women’s empowerment in the country is “in the number of young women who have seen a future beyond what they had” and in particular before the end of the war in 2003. She highlighted President Sirleaf’s role in raising an entire generation of young women to look themselves in a mirror and believe that they can achieve anything. Gbowee views President Sirleaf as the female version of Nelson Mandela, a real trailblazer for women’s empowerment in Liberia.
Through her organization, Gbowee Peace Foundation USA, Leymah Gbowee is working on promoting peace, security and reconciliation in the country, as well as lobbying for girl’s and women’s rights and leadership.
Women in Liberia are aiming to achieve equal political and economic rights. Despite having the right to vote since 1946, it is still a predominantly patriarchal society in Liberia. As such, most positions of authority are occupied by men. The disproportionate number of men in these positions can be explained by the lack of education girls and women receive in Liberia, as well as the high rate of child marriage, all which impact future opportunities for women.
As a result of efforts made to increase access to education and the personal development of girls and women, women represent half of the country’s workforce. The poverty level dropped by 10 percent between 2007 and 2010: according to the United Nations Development Programme, empowering women is central to fighting extreme poverty.
Many associations have been created by women, for women, in an effort to continue the progress for women’s empowerment in Liberia. One example is the Association of Women in Cross Border Trade, created in 2010, which teaches women how to manage their financial resources.
With continuous efforts by these organizations, the progress made for women’s empowerment in Liberia is sure to continue. In the words of Karin Landgren, the Coordinator of United Nations Operations in Liberia, “When women are empowered, nations are transformed.”
– Lea Gorius
Photo: Flickr
Crucial Steps Towards Alleviating Poverty in Saudi Arabia
In a country as resourceful as Saudi Arabia and where there is an abundance of wealth, oil and money, it is simply hard to believe that an area known for its riches faces economic disadvantages with millions of its residents.
Poverty
Poverty in Saudi Arabia is a hidden problem that many Saudis hesitate to recognize. The Saudi Arabian government rarely releases data about its poorest people, making it difficult for the nation (and globe) to address the problem.
With the overall population at just over 32 million, the media has reported that an estimate of about 2 to 4 million of the country’s residents live on less than $530 a month ($17 a day) — a figure that analysts consider below the poverty line. In order for the government to tackle these issues at the source, there must be extensive programs that are proposed, including increasing development aid.
Education
Education is the key to eradicating the underlying issues of poverty. Understanding and comprehending basic skills, such as reading and writing, improve the productivity of individuals in their daily lives which thereby bolsters industrialization.
This economic and social progression increases income distribution that has the potential to restore the people living in poverty in Saudi Arabia to their full potential livelihoods. In short, investment in education can result in big returns.
In 2013, Saudi Arabia’s King Abdullah approved a $21.33 billion (80 billion riyals) five-year education plan that is set to develop Saudi Arabia’s education sector. This plan includes: the construction of 1,500 nurseries, training for approximately 25,000 teachers, and the establishment of educational center and other projects related to the cause.
Influence of Education
Saudi has had difficulties producing employers in the science and engineering fields because of the education system’s concentration on religious and Arabic studies. In order to ease the influence of religion on education and expand the economy, King Abdullah has launched an excess of state schools and universities as a part of his education plan.
The reality for many families living in poverty in Saudi Arabia is a pattern that has impacted several generations — unstable surroundings that lead to poor academic preparation. Nonetheless, the situation can be improved if certain proposals, like the one implemented by King Abdullah, can continue to be enacted.
– Zainab Adebayo
Photo: Flickr
5 Major Development Projects in Bosnia and Herzegovina
Bosnia and Herzegovina returned to international news in recent weeks with the conviction and sentencing of Ratko Mladić. The former Bosnian Serb general was sentenced to life in prison for genocide and other war crimes of the early 1990s. These acts occurred during the wars following the breakup of the former country of Yugoslavia, of which Bosnia and Herzegovina emerged as an independent state in late 1995 following ratification of the Dayton peace accords.
Years of war and refugee crises in the early 1990s left the new country in need of extensive assistance from the international community. Despite considerable success in rebuilding and integration, many development efforts continue to be needed there today. Below is a summary of five ongoing development projects in Bosnia and Herzegovina.
Banking Sector Strengthening Project
The World Bank is currently leading a $60 million initiative to increase the resilience of Bosnia and Herzegovina’s banking sector. The project comprises five phases and is set to be complete in December 2020. The project’s objective is to enhance the supervision, regulation and resolution capacity of the banking agencies already present in Bosnia and Herzegovina’s federal government.
Modernizing the banking sector in Bosnia and Herzegovina and bringing it to current international standards is an essential result for any future attempt by Bosnia and Herzegovina to apply for admission to the European Union (EU), an eventuality that could accelerate improvements in the Balkan nation’s quality of life.
Employment Support Program
Parallel to the banking sector project, the World Bank is also funding a program to combat persistent unemployment in Bosnia and Herzegovina. The program began in early 2017 and will last through 2021. The program will focus on increasing the effectiveness and scale of governmental programs to place citizens into matching private sector employment. The program will include wage subsidies, job training and support for self-employment. It also has a component to improve management systems and information technology related to employment efforts.
EU-Sponsored Development Programs
Germany and the EU recently awarded $1.2 million in grants to a collection of development projects in Bosnia and Herzegovina. Among other objectives, these grants will fund technical support for entrepreneurs, particularly in metallurgy and agribusiness. According to the EU delegation to Bosnia, the grants are specifically intended to bring the nation closer to the European Union.
USAID Flood Relief Programs
Steep mountainous terrain covers the majority of Bosnia and Herzegovina, making the country vulnerable to torrential rains that caused extensive damage from landslides and flooding in 2014. The United States Agency for International Development (USAID) responded to the disasters with dozens of small-scale grants for development projects in Bosnia and Herzegovina.
These projects included both infrastructure repair and direct assistance grants to affected farmers and communities. Repairs and upgrades included numerous drainage system projects and the rebuilding of municipal buildings that were damaged in the flooding.
Road Connectivity and Safety Initiative
Finally, the World Bank is also involved in an extensive $64 million program to improve road safety and the continuity of Bosnia and Herzegovina’s transportation network. The European Investment Bank co-financed the program, and it is also directed towards the eventual accession of Bosnia and Herzegovina into the EU.
The funds will finance the rehabilitation of a planned 178 km of roads, including tunnels and bridges. World Bank officials expect these projects to improve employment and commercial opportunities and to stimulate tourism and exports through the country’s access to the Adriatic coast.
These five, coupled with other development projects in Bosnia and Herzegovina, are helping to bring stability to this diverse nation after a war that started nearly a generation ago. If progress continues as expected, Bosnia and Herzegovina will meet their goal to join the EU and be fully integrated into the mainstream of Western Europe in a few short years.
– Paul Robertson
Photo: Flickr
The Battle of Aleppo and its Continued Significance in Syrian Civil War
Beginning in 2012 and concluding in 2016, the Battle of Aleppo has been a major war of attrition in the fight against the so-called Islamic State as well as served as a major impediment to the Astana Peace Process. Often dubbed ‘Syria’s Stalingrad’, the city of Aleppo is still reeling from the social, economic, and political ramifications of the offensive since the ceasefire deal reached last year in 2016.
With the death toll currently standing at over 31,000, many individuals continue to face the threat of internal displacement, diseases, and other human rights violations.
Aleppo in the Syrian Economy
Aleppo, an important city with a population of 2.3 million individuals, used to make up a notable part of Syria’s GDP in the past with its economic potential. Approximately, 60 percent of the city has been devastated — a significant proportion of that destruction being landmark cultural and heritage sites. As if infrastructure mistreatment wasn’t enough, the Battle of Aleppo was also infamously known for the rebels’ use of civilians as human shields and other forms of modern slavery.
According to the World Bank Group, the economic cost of the war comes to €200 billion so far. Over 1 million people were forced to flee the city — an influx to Europe that contributed significantly to the 2015 European Migrant Crisis. Consequently, since the beginning of 2017 alone, 300,000 people residing in Aleppo were forced to leave the city.
Humanitarian Aid
During the Battle of Aleppo, a significant number of humanitarian aid initiatives were spearheaded by the United Nations Office for the Coordination of Humanitarian Affairs (UNOCHA). The United Nations Security Council Resolution 2165 was instrumental in ratifying the supply of aid to the country, particularly across border crossings and other obstacles.
In October 2017, the International Committee of the Red Cross (ICRC) reported casualties that amounted to the hundreds. Many schools and hospitals were destroyed in the crossfire of the combat against the Islamic State and other extremist groups in the country. Rural areas in the country faced especially damaging impacts since over 27 percent of Syrian homes were destroyed during the course of the Battle of Aleppo.
The U.N. has recommended that over $3.5 billion is needed to cover the social, economic and human costs of the Syrian Civil War. This figure means that Aleppo will hopefully be given a greater focus and priority in the future through the globe’s increased channeling of funding and resources.
Humanitarian aid is taking on a pivotal role in order to address the situation’s immediate needs. Russian military officers have delivered a batch totaling 1.3 billion tons of aid and, as a part of the initiative, 300 sets of food were also provided. Similarly, Iran also delivered humanitarian aid to rural areas of Aleppo with an aid convoy of 200 tons of food, clothing and medicine for affected civilians.
Aid Efforts
Various aid organizations currently address water and sanitation needs by equipping households with water tanks as full supply has still not been restored in many communities. Moreover, UNICEF has delivered water to over 700,000 individuals in Aleppo and aids in the maintenance of water storage tanks in the city.
Currently, the reconstruction of the city and resettlement of civilians in the future remains top priorities for various stakeholders, as many returning civilians come home to a city in ruination. To date, over 332,000 individuals have returned to Aleppo so far.
Based in the city of Budapest is the humanitarian program of the Aleppo Project, which acts as a large collaboration between various refugees, students and experts. The organization is active in Lebanon and Turkey and works concertedly to restore the city to order. Their focus on the Geographic Information Systems (GIS) is the establishment of a participatory planning system that will help continue the present post-crisis restoration of the entire city. Within the city, the UNHCR is providing returning civilians with items like protective equipment to help them regain control of their lives.
With the city of Aleppo continuing to act as a major epicenter of the Syrian civil war, safe passages and avenues are needed for the affected and the vulnerable to remain protected. At this juncture, sustainable aid is thus required in order to have an effective solution to the crisis and mitigate negative impacts.
– Shivani Ekkanath
Photo: Flickr
Entrepreneurship Boosting Women’s Empowerment in Moldova
Domestic violence is also an issue. About 22 percent of women in Moldova claim that they have been abused at the hands of a partner. This number can increase as the parties get older, according to a report by Promundo Global.
Like many countries, Moldova strains against a predominantly patriarchal society. There are women who own businesses, but they have to struggle to find resources. Women are often unable to obtain loans and lack control of their capital. In this male-dominated political society, women are not favored.
Despite these circumstances, there is hope for women’s empowerment in Moldova. The country has pledged to encourage gender equality. The biggest commitment is the ratification of the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW). Highlighting the state of women’s rights is the primary purpose of CEDAW.
Another way the country has promoted gender equality is via the Women in Politics initiative. This initiative “works to increase women’s participation in Moldova politics and decision-making,” according to U.N. Women. It also supports women in media.
While women in politics and media are important, a big focus of organizations such as the World Bank is women entrepreneurship. Women-owned businesses make up 25 percent of all businesses in Moldova.
There is evidence that shows that productivity is higher when a business is owned by a woman. This is important for Moldova’s economy, as female-owned businesses employ more people, specifically women.
Women can generally outperform men in Moldova if they are given the chance to do so. In order for women’s empowerment in Moldova to be progressive, the restrictions that limit women need to be removed. The programs that are already underway are providing many opportunities to make that goal a reality.
– Dezanii Lewis
Photo: Flickr
How Much Does it Cost to End Poverty?
Today the world produces enough food for everyone on the planet. So why are more than a billion people still dying of hunger? Why is life itself tenuous for so many families while the eight richest people in the world have as much wealth as the poorest 50 percent of people in the world?
The answer is poverty. But poverty can be stopped, and this raises the question, “how much does it cost to end poverty?”
Poverty can be categorized as moderate, relative or extreme. Here we will try to define the cost needed to end extreme poverty. But first, what is extreme poverty? It refers to the state of the poorest people in the world. They are barely able to meet their minimal needs for survival, as they live on less than $1.90 per day, according to the World Bank.
But poverty is more than just very low incomes. It is hunger, high mortality rates, conflicts, a lack of education or health services and a lack of a future for hundreds of thousands of women, men and children.
Broadly, poverty affects most of the people in the world. In 2005, 71 percent of the world’s population lived on an income below $10 a day. To eradicate poverty is possible, but at what cost?
In his book End of Poverty, Jeffrey Sachs, director of the Earth Institute at Columbia University, provides one answer to the question “how much does it cost to end poverty?”
He argues that poverty could be eliminated by the year 2025 thanks to “well-placed development aids”. Investment in local farms to boost capital and productivity, education for both children and adults, enhancing access to health services and leveraging renewable energy resources are the best ways to end poverty.
So, how much does it cost to end poverty?
Jeffrey Sachs, as one of the world’s leading experts on economic development and the fight against poverty, stated that the cost to end poverty is $175 billion per year for 20 years. This yearly amount is less than 1 percent of the combined income of the richest countries in the world, and only four times the United States’ military budget for one year.
Ending poverty is possible and at a low cost. Now we just need ordinary citizens as well as multinational corporations to start meeting their responsibilities to help the poor and the left behind.
– Léa Gorius
Photo: Flickr
Infrastructure in Ukraine Slowly Becoming Modernized
The local energy sector, in particular, is in a poor state. Earlier this year, radical politicians blockaded coal from the unrecognized People’s Republic of Donetsk region of Donbass from delivery to the rest of the country, exacerbating the issue of underdeveloped infrastructure in Ukraine. This threw the country into turmoil, as Ukraine does not have enough resources to serve its power plants without the coal, leading to a downward economic spiral and state of emergency.
Currently, Ukraine is working on modernizing its infrastructure with a focus on making it more energy-efficient. Konstantin Grigorishin, owner of Energy Standard Group and vast assets in the energy sector of Ukraine, stated in an interview with RealClearEnergy, “We should not reconstruct the old infrastructure but introduce complete modernization of the Ukrainian energy system in line with the latest industry trends.”
The World Bank ranks infrastructure in Ukraine at 80 out of 160 countries in its annual Logistics Performance Index. This is mediocre at best, and its transportation systems are out of date with respect to speed, safety, and efficiency. To remedy this issue, Ukraine came out with a plan, Ukraine’s Transport Strategy 2030, that focuses an updating all its internal transportation systems until it is on par with the rest of Europe.
Ukraine is strategically located between the E.U., Russia and the Black Sea, forming a critical point for maritime trade. Its position, and the Dnipro River linking its coast to the interior of the country, makes it uniquely capable of both international and regional trade. The only thing required to make this trade plan possible is a viable route along the Black Sea and the Dnipro River, and this is where issues arise.
Infrastructure in Ukraine requires an investment of at least $2 billion from private investors for maritime trade to be a viable option. To increase investments, the Ministry of Infrastructure intends to establish private-public partnerships (PPPs) with businesses. The Ministry signed a Memorandum of Understanding with the International Finance Corporation (IFC) on November 14, 2017, declaring their intention of mobilizing infrastructure development through PPPs.
The Minister of Infrastructure, Volodymyr Omelyan, has stressed the importance of these partnerships, stating, “Ukraine’s infrastructure needs are enormous. We need to crowd-in private investment to modernize the country’s infrastructure and upgrade it. IFC’s support and technical expertise will help ensure we are implementing the best possible solutions efficiently and transparently.”
Ukraine’s economy is relying on the success of these investments and the jobs they will create. With continued cooperation between the government and the PPPs, the country will steadily overcome its obstacles to infrastructure development.
– Kayla Rafkin
Photo: Flickr
Reducing Poverty in Southwest China
Poverty in Southwest China results from several major factors: the development of transportation is relatively slow, communication and technology often fall behind and large areas of mountain and plateau restrict the growth of the economy and education in this region.
Conventional views are aimed at “treating poverty by education.” Hence, the government in impoverished areas tried to get rid of poverty with the aid of intellectual support provided by education. In spite of the severe hardships of financial budgeting, it still did their best to develop education and even at the cost of heavy debts. However, the data suggests that education levels in impoverished areas have not effectively changed the status of poverty even after a large amount of investment.
Nevertheless, there has been progress in the fight against poverty in Southwest China. The Tibet Poverty Alleviation Office announced that last year, 150,000 rural residents rose out of poverty in Tibet. In its thirteenth five-year plan, China aims to help Yunnan, Guizhou and Sichuan to release about one million people from poverty each year. The ultimate goal is to eradicate poverty in Southwest China by 2020.
It is well recognized that improving transportation is a prerequisite for gaining wealth. As part of the thirteenth five-year plan, the city of Chongqing will see the investment of $60 billion toward constructing the transport hub in southwest China. Besides dozens of new projects in other southwest provinces, local governments have also been installing new solar street lamps and water heaters, upgrading roads, houses and cultural activity rooms. Such measures create conditions for the acceleration of economic developments in rural, remote areas in Southwest China.
A further measure is reinforcing vocational education in poor counties and paying more attention to the economic growth and education of ethnic minorities. In the Yunnan province, a project was launched by the World Bank and provincial government in 2012, which was oriented to improve the quality and relevance of technical and vocational education and training, in order to produce skills matching the demand of labor markets.
Nine vocational schools were implemented, where 6,000 teachers and school managers were trained. As a result, more than 24,000 students benefited from training in crucial economic sectors, 80 percent of whom were from poor, rural areas and about 30 percent of whom belonged to ethnic minorities.
In order to achieve the comprehensive alleviation of poverty in Southwest China by 2020, governments and international organizations are working hard with specific, feasible and staged plans toward this goal.
– Xin Gao
Technology Boosts Credit Access in Brazil for Small Business
Small businesses have driven tremendous growth in the Brazilian economy in the 21st century, raising millions of Brazilians out of poverty, but these businesses still face numerous difficulties in their daily operations. For example, credit access in Brazil has historically been expensive and difficult to obtain. This poses a challenge for small businesses and sole proprietors wishing to borrow modest amounts to cover inventory or to invest in new ventures.
Among the 20 largest world economies, Brazil has had the highest interest rates for commercial lending in recent decades, and banking fees are similarly high. Brazil’s financial system is highly concentrated, with a few large banks handling the vast majority of assets and transactions.
In recent years, however, new players have entered the market for consumer and small business finance in Brazil. Financial technology (FinTech) firms are making inroads into the largely untapped market for credit access in Brazil and giving many small businesses in the large South American nation new opportunities for growth. A 2017 report by Goldman Sachs noted that the unusually high-interest rates and bank fees in Brazil increase the incentives for upstart financial companies to compete with large established banks. Because of the unusual concentration of banking in just a few small firms, FinTech stands to have a much larger impact by increasing credit access in Brazil than it does in other nations where the financial system is already more diverse.
By September 2017, Brazil had the largest number of operating FinTech startup companies in Latin America, topping even strong growth in Mexico, the region’s next most populous country. NuBank, Brazil’s most visible new financial technology company, has received more than 10 million applications in the past three years for new credit accounts. NuBank offers small business loans as well as personal credit in Brazil and the firm has recently seen growth as fast as 10 percent per month.
Some of the circumstances fueling these changes have been readily apparent on the streets of Rio de Janeiro and other large Brazilian cities for years. In the busiest urban blocks there, dozens of young people chat with each other using Internet-connected smartphones, and strangers exchanging information for the first time often offer a WhatsApp account or Facebook handle instead of a traditional phone number. FinTech firms are taking advantage of this phenomenon by developing a strong mobile presence and enthusiastically engaging with mobile and internet commerce.
Small enterprise is everywhere in Brazil’s large cities as well. Sidewalk kiosks and small local businesses make up the vast majority of retail establishments on every block of Rio’s densely packed downtown and its historical and beachfront neighborhoods. The scene is similar in Salvador and São Paulo, Brazil’s largest and third-largest cities, respectively.
Small business is an essential element to developing the economic potential of Brazil, the world’s sixth most populous country. Expanding employment and commercial opportunities can raise the standard of living for millions of low-income citizens who have not yet been fully helped by Brazil’s robust economic growth in the past few decades. With millions of Brazilians employed by these ubiquitous small businesses and the access to personal capital expanding at a rapid rate, the FinTech revolution in Latin America’s largest economy promises to be a winning story for economic development and poverty reduction for years to come.
– Paul Robertson
Photo: Flickr