Growing up, Mona Kareem was not a victim of childhood torment because of her nationality—but, rather, her absence of nationality. She is a member of Kuwait‘s stateless population. From an extremely young age, Kareem knew she did not quite belong. Her fellow students, and even her teachers in Kuwaiti’s free, public schools seemed to treat her more as an apparition than an individual.
One could imagine why Kareem accepted an academic scholarship in 2011 to study in the United States at SUNY Binghamton. Though this decision came with a measure of arduous ambiguity concerning how and when she may see her family again—the act of leaving her ‘home’ country of Kuwait did not weigh heavily of Kareem, given that this ‘home’ refuses to recognize her existence. She is just one of many that fall under Kuwait’s stateless population.
According to the CIA World Factbook, Kuwait is an extremely wealthy country with little measurable poverty. Bordering the Persian Gulf, lodged between Iraq and Saudi Arabia, this tiny country—slightly smaller than the state of New Jersey—holds more than 6 percent of the globe’s crude oil reserves. This asset accounts for more than 50 percent of its GDP, and 92 percent of its export revenue.
Sitting on such an expansive source of wealth allows Kuwait to take care of its citizens. Earlier this year, Business Insider placed Kuwait sixth on their ranking of richest countries based on GDP per capita. With a population of just above 4 million, the country brings in the equivalent of an annual $71,263 per person.
Each resident has access to free healthcare, education up to (and including) the university level, and monetary allowances from the government for major life occasions. If a Kuwaiti was to be married, for example, they would receive $19,000 American dollars for their doing so—half acting as an interest free loan, and the other half as a complimentary gift toward their future.
In 2004, Oprah Winfrey interviewed Princess Zain Al Sabah on her nationally-viewed show, confirming the extravagant lifestyle embraced by her and the majority of her ‘friends.’ She went on to explain that this lifestyle is accessible not only to royalty, but the ‘common,’ everyday citizens of Kuwait.
However, the contention with Kuwaiti’s government does not lay with the Kuwaiti common, nor the royal ‘friends’—but those that perhaps aren’t recognized as ‘friends’ at all. Unfortunately, there is a large proportion of individuals living in Kuwait that do not qualify for the benefits the Princess emphasized. In fact, they do not qualify as citizens; according to the Kuwaiti government, they do not exist. This is Kuwait’s stateless population.
Kareem and her family are known to the Kuwaiti people as ‘Bedoons,’ translating to mean ‘without’ in Arabic. They are descendants of Bedouin tribes, nomadic groups who have raised cattle and tended to crop across the Middle East and Arabian peninsula for centuries.
Traditionally, the Bedouin tribes have led self-sufficient lives, migrating at the turn of the season and rejecting modernity. Of course, tradition changes with the time, and descendants of this nomadic lifestyle have begun to seek more than perpetual exodus to fulfill their lives.
In the late 1950’s, before declaring sovereignty 1961, Kuwait’s government declared that all citizens must formally register before the country is recognized. To qualify for nationality one must meet the following requirements: one must have had settled in Kuwait prior to 1920 and maintained residence in the region; one must be a person in or outside Kuwait whose father is a Kuwaiti national; or one that can prove to have been born in Kuwait, even if their parents are unknown.
At the time of registry, however, a large proportion of Kuwaiti inhabitants lived in rural regions, lacking both the necessary paperwork and literary skills necessary to understand the weighty context of this request. Consequently, around 300,000 Kuwaiti people, including the ancestors of Kareem, did not become citizens.
Today, this would equate to one-third of the native population living in Kuwait. Those that had forgone the process of citizenship were left ‘without’ nationality. Thus, the majority of descendants remain without nationality—otherwise known as Kuwaiti’s ‘Bedoons.’
For several years post-independence, Kuwait’s stateless population continued to live unchallenged by their lack of nationality. Most kept to their tribal traditions, living outside of urban areas and seeking government assistance only on rare, emergency occasions. If public education was sought for a child, the Kuwaiti government allowed schooling for the Bidoon—despite their statelessness.
It was only after heightened tensions in the Middle-East in the late eighties that xenophobia began to emerge as a weapon against the Bidoon people. After a large portion of Kuwait’s people fled during the Iraqi invasion in 1991, only about half of the Bedoons were allowed re-entry.
Of course, Kuwait’s stateless population returned to a different world. Suspicions of Iraqi alignment ran rampant throughout the nation. Consequently, the Bidoon’s lack of formal nationality often receiving the brunt of this hostility.
To this day, over 100,000 Bedoons live without recognition in the only country they have ever called home. Most dwell in rural areas, exposed to unsuitable living conditions. Regardless of their ability to trace back their native roots, they are repeatedly denied citizenship and are unable to qualify for basic government subsidies on healthcare, education and housing/food allowances. On top of this, there still exists an equal number of stateless individuals in neighboring countries, perceived as refugees and denied access to their home altogether.
In a nation that can afford not only to meet the needs of their citizens, but encourage wealthy and prosperous lives—it is unfortunate that such a great number of its native people are living in a way that threatens their basic security.
In order for the world to understand the demographic of the Kuwaiti people and the true ‘wealth’ of this small nation, the government must first open its doors to Kuwait’s stateless population.
– Briana Fernald
Photo: Flickr
Education in the Bahamas
The quality of education in the Bahamas has been improving since the late 1950s. These improvements have been spurred on by leaders of the Bahamas Union of Teachers (BUT), which has recognized the failures of the previous education system.
The Education Act, which was revised in 1996, is the primary education law governing the Bahamas today. It guarantees free education for all residents between five and 16 years of age. About 75% of children attend public primary schools, but most nurseries and pre-schools are run by churches. There are 170 educational institutions in the Bahamas, which is a great number considering the population of the archipelago. In 2014, the Bahamas introduced the National High School Diploma, to create a standard for minimum basic education for every child. This was a big step in improving the education system by ensuring equal education for all children.
In the nation, over 100% of children received primary education in 2006 and this trend has been continuing into the present. This is a very impressive rate, especially given that there is no disparity between access to education between boys and girls. In 2003, the literacy rate for adults ages 15 and over was 95.5%. This percentage was even higher for young adults aged 15 to 24. Most of the population in the Bahamas is under 60 years old, meaning that the education system in the country has been relatively successful in having literate citizens since the 1960s.
A few years ago, the Minister of Education, Science and Technology gave a statement about recognizing the need for a larger skilled workforce. The government invested $4 million in Information and Communications Technology in public schools to better prepare students for a technologically advancing world. Career Academies were implemented in high schools to allow students to gain specific skills for the job market. These skills include hospitality management and business studies, which should help them get jobs in the Bahamian tourism industry.
The Minister also indicated that the Bahamas would focus on developing better quality teachers. An In-Service Professional Development Institute was opened to provide standardized and more effective training for teachers and other educators in the country. These programs are still in development but have proven to be valuable steps forward for the nation.
Ultimately, education in the Bahamas is on the right track, as the government is prioritizing high-quality education for all. They should continue to implement new and improved programs, as well as start focusing on increasing the number of residents who have access to, and attend, higher education institutions. With these current programs and a steady plan for improvement in the future, the Bahamas can surely create an excellent education system for it citizens.
– Liyanga De Silva
Photo: Flickr
Education in Armenia
In Armenia, the law requires schooling from the ages of six to 16. Education plays a central role in the lives of Armenian families, with students receiving abundant amounts of homework and classes lasting between four and six hours. Teachers are said to become a type of extended family, as parents give them a lot of respect for working with their children. Despite being a fairly small country, there are 25 higher education institutions with a variety of undergraduate and graduate programs. While education is an important facet of childhood in Armenia, it is becoming increasingly unaffordable for many families.
Education in Armenia is officially guaranteed for all citizens, but the education system is becoming more and more privatized. Some parents have trouble affording textbooks and other supplies for their children, and the system is also very corrupt, creating additional unnecessary expenses. There have been cases where parents are forced to provide supplemental income for teachers or large sums of money to ensure that their children will pass examinations. This corruption has lead to a significant decrease in the number of students enrolling in Armenian higher education institutions.
Another issue facing Armenian education is the disparity between male and female secondary school enrollment rates. Unlike many other parts of the world, there are many more females than males enrolled in secondary education. In 2014, about 112 percent of females were enrolled in upper secondary education, while only 89 percent of males were enrolled.
While Armenia does need to reduce the corruption in its education system and should increase funding to make education more accessible to low-income families, the quality of the education provided here is very high. Of Armenians who are age 15 and over, 100 percent are literate, placing Armenia near the 99th percentile for access and literacy across the world.
Armenia has clearly done something right by providing good quality education to all, but it needs to work on making that education equally affordable with less corruption. Despite their favorable statistics, there is much work to be done, but with the implementation of better standards and increased funding, the education system in Armenia can surely become one of the best in the world.
– Liyanga De Silva
Photo: Flickr
How to Address Education for Rohingya Children
Hundreds of thousands of ethnic Muslims from Myanmar’s Rakhine State have been fleeing to Bangladesh with the hope of finding shelter from the extreme violence they have had to endure. As the minority group of Myanmar, the Rohingya Muslims are the populations facing discrimination and persecution from the Buddhist majority, which is defined by U.N. human rights officials as “ethnic cleansing.”
Rohingya refugees were therefore forced to escape their country to find safety in neighboring Bangladesh, which already housed almost 430,000 of those refugees. With the increasing influx of refugees fleeing into Cox’s Bazar, Bangladesh, the country has announced that it will create the world’s largest refugee settlement with the capacity to shelter 800,000 displaced Rohingya Muslims, including children.
According to UNICEF, 250,000 Rohingya children have escaped from Myanmar to the host community of Bangladesh, making up at least 60% of all refugees. According to the research-based advocacy project — the Arakan Project — education for Rohingya children has always been at risk, as most of them did not have the chance to attend school due to poverty factors and lack of schools. Additionally, Rohingya students are being barred access from universities in Burma. Now living in refugee camps in Bangladesh, some of the students are missing out on proper education, as secondary schools in camps are not allowed by the Bangladeshi government.
However, UNICEF has been working toward providing proper education for Rohingya children within the camps. On September 29, the organization announced that it will build new learning centers for Rohingya children in addition to the 182 existing centers in the camps. In total, UNICEF is planning to increase its numbers to 1,300 learning centers in order to provide education to the expected 200,000 child refugees coming to Bangladesh.
These learning centers will only provide education to children ranging from ages four to 14. Therefore, education for Rohingya children older than 14 is still compromised, leading to illiteracy for the majority of those students. Currently, there is an estimated total of 80% of Rohingya people being illiterate. UNICEF is working on developing additional educational opportunities for the future of Rohingya children.
– Sarah Soutoul
Photo: Flickr
What Is PATH and How Does it Improve Global Health?
The Program for Appropriate Technology in Health (PATH) is an international, nonprofit organization that is a leader in innovating global health solutions. The program’s aim is to bring about effective and cutting edge technologies and products to underserved areas of the world and to work toward providing major healthcare needs. PATH works closely with partners around the world to bring passion and innovation to solving these problems and to scale them on a global level.
PATH has five primary vehicles of innovation, being:
PATH works hard to take the most innovative medical solutions available to countries that need it most, and in many cases, develops its own solutions to issues as well. By strengthening methods that give people access to important medical supplies, medicine, newer technologies and practices, PATH is an important ally in underserved areas.
– Rebekah Covey
Photo: Flickr
Why is Cabo Verde Poor?
Cabo Verde, or Cape Verde, is a former Portuguese colony made up of 10 islands and five islets located just over 300 miles off Africa’s west coast. Why is Cabo Verde poor? Severe droughts during the 1900s killed 200,000 people and caused many to leave the islands.
Cabo Verde does not have many natural resources, and only 10% of the land can sustain crops. This makes the nation vulnerable to poor economic growth. Although the poverty rate has been reduced significantly, one-quarter of the population is still poor.
The national poverty rate in Cabo Verde fell from 37% to 27% between 2003 and 2008, according to the World Bank, and the extreme poverty rate went from 21% to 12%.
Tourism is a major source of economic growth in Cabo Verde and is credited as the main reason for the drop in poverty rates. Still, one is compelled to ask: why is Cabo Verde poor?
The Congressional Research Service reported that slow economic growth in Europe has fostered slow growth in Cabo Verde. This is because Europe is a major trading partner and source of foreign investment, and Cabo Verde is also a major tourist destination for many Europeans.
Despite all this, growth has recovered due to a resurgence in tourism and foreign investment. Gross domestic product grew from .93% to 3.63% between 2012 and 2016. Unemployment is now estimated to be at nine percent, which is a significant drop from 16.8% in 2012. Yet, one must still ask: why is Cabo Verde poor?
Public debt in Cabo Verde was 130% of the GDP at the end of 2016, according to the World Bank. It is also estimated that growth was above four percent which is 1.5% more than in 2015 but still not enough to bring down debt levels. The World Bank predicts that debt will continue to increase in 2017 because of a state-owned airline (TACV) and social housing.
Modest growth is predicted for Cabo Verde’s major trading partners which may slow foreign investment in the small nation as well.
– Fernando Vazquez
Photo: Flickr
The Promising Goals of the South African Development Plan
The South African Development Plan (NDP) was created by the National Planning Commission (NPC), a South African group responsible for detailing a long-term vision and strategy for the country. The NPC includes 24 part-time members, along with a chairperson and deputy chairperson appointed by the President, based on their experiences and skills. The Commission is chaired by the Deputy President of the Republic of South Africa, Cyril Ramaphosa.
The South African government adopted the National Development Plan as the foundation for a projected financial and socio-economic advancement strategy for the nation in December 2012.
The NPC built the NDP on six pillars:
The central issues addressed in the South African National Development Plan address the country’s economic growth and the ability of that growth strategy to deliver a socioeconomic transformation for the country by 2030. The NPC aims to build consensus on the key obstacles to achieving objectives and what is necessary to overcome these obstacles. Implementing a shared long-term strategic framework within which more detailed planning can take place to advance the long-term goals set out in the NDP is a major goal. Furthermore, the plan hopes to create a basis for making choices about how best to use limited resources.
The purpose of the plan is to outline and achieve a decent standard of living for all citizens through the eradication of poverty and inequality. The components of a “decent standard of living,” as identified in the NDP, are: housing, water, electricity and sanitation; safe and dependable public transport; quality education and skills development; safety and security; quality healthcare; social protection; employment; recreation and leisure; a clean environment; and adequate nutrition.
If implemented successfully, the South African Development Plan will enable the country to reach an employment near 90%, no poverty and an annual economic growth rate of 5.4% by 2030.
– Heather Hopkins
Photo: Flickr
Women, Peace, and Security Act Becomes Law
The Women, Peace, and Security Act (S. 1141) became a public law at the beginning of October 2017. The purpose of the bill is to ensure that women play meaningful roles in diplomacy and leadership, especially in regions of violent conflict.
The bill recognizes the importance of women as peacemakers in their communities and the power they have in promoting inclusive, democratic societies. If signed into law, this bipartisan legislation would establish gender equality as a priority in U.S. foreign policy.
Sen. Jeanne Shaheen (D-NH) first introduced the bill to the Senate in May. It then passed the Senate body without amendment in early August. The bill is the Senate-companion bill to H.R. 2484, which passed the House earlier this session.
The Women, Peace, and Security Act is really a culmination of years of bipartisan work throughout the course of several administrations. Versions of this bill have been presented in past sessions; in fact, a hallmark of the Obama administration’s foreign policy was the implementation of the National Action Plan on Women, Peace, and Security. Like the S. 1141, the executive order was established to promote global gender integration as a means of conflict prevention and peace-building.
A wealth of research demonstrates the successful outcomes gleaned from the participation of women in leadership roles. Women in conflict-affected areas have been shown to be effective in combatting violent extremism, countering terrorism and resolving disputes through nonviolent negotiation. Furthermore, the presence of women in government is critical in the creation of sustainable, democratic policies in post-conflict relief scenarios.
When women are invited to participate in decision-making, the whole community is elevated. Studies suggest a positive correlation between a country’s gender equality and the strength of its economy. Thus, not only would women in leadership promote global security, but it would also fight poverty.
Representative Eliot L. Engel, Ranking Member of the House Committee on Foreign Affairs, stands firmly behind the Women, Peace, and Security Act. He is concerned, however, about the current foreign aid budget. The new budget would see funding reduced by more than one third.
He said of the proposed cuts, “The Administration’s budget proposal would slash funding for diplomacy and development to dangerous levels, and a current redesign effort at the State Department might strip out initiatives like women, peace, and security. I hope that won’t happen.”
Indeed, with mounting evidence to verify the importance of female leaders, programs that endorse the progress of women cannot afford to be forgotten in a time of such global upheaval. Were this bill to pass into law, it would reaffirm the United States’ stance on gender equality. Furthermore, it would pave the way for comprehensive global policies that sustain peace and economic security.
– Micaela Fischer
Photo: Flickr
Kuwait’s Stateless Population
Growing up, Mona Kareem was not a victim of childhood torment because of her nationality—but, rather, her absence of nationality. She is a member of Kuwait‘s stateless population. From an extremely young age, Kareem knew she did not quite belong. Her fellow students, and even her teachers in Kuwaiti’s free, public schools seemed to treat her more as an apparition than an individual.
One could imagine why Kareem accepted an academic scholarship in 2011 to study in the United States at SUNY Binghamton. Though this decision came with a measure of arduous ambiguity concerning how and when she may see her family again—the act of leaving her ‘home’ country of Kuwait did not weigh heavily of Kareem, given that this ‘home’ refuses to recognize her existence. She is just one of many that fall under Kuwait’s stateless population.
According to the CIA World Factbook, Kuwait is an extremely wealthy country with little measurable poverty. Bordering the Persian Gulf, lodged between Iraq and Saudi Arabia, this tiny country—slightly smaller than the state of New Jersey—holds more than 6 percent of the globe’s crude oil reserves. This asset accounts for more than 50 percent of its GDP, and 92 percent of its export revenue.
Sitting on such an expansive source of wealth allows Kuwait to take care of its citizens. Earlier this year, Business Insider placed Kuwait sixth on their ranking of richest countries based on GDP per capita. With a population of just above 4 million, the country brings in the equivalent of an annual $71,263 per person.
Each resident has access to free healthcare, education up to (and including) the university level, and monetary allowances from the government for major life occasions. If a Kuwaiti was to be married, for example, they would receive $19,000 American dollars for their doing so—half acting as an interest free loan, and the other half as a complimentary gift toward their future.
In 2004, Oprah Winfrey interviewed Princess Zain Al Sabah on her nationally-viewed show, confirming the extravagant lifestyle embraced by her and the majority of her ‘friends.’ She went on to explain that this lifestyle is accessible not only to royalty, but the ‘common,’ everyday citizens of Kuwait.
However, the contention with Kuwaiti’s government does not lay with the Kuwaiti common, nor the royal ‘friends’—but those that perhaps aren’t recognized as ‘friends’ at all. Unfortunately, there is a large proportion of individuals living in Kuwait that do not qualify for the benefits the Princess emphasized. In fact, they do not qualify as citizens; according to the Kuwaiti government, they do not exist. This is Kuwait’s stateless population.
Kareem and her family are known to the Kuwaiti people as ‘Bedoons,’ translating to mean ‘without’ in Arabic. They are descendants of Bedouin tribes, nomadic groups who have raised cattle and tended to crop across the Middle East and Arabian peninsula for centuries.
Traditionally, the Bedouin tribes have led self-sufficient lives, migrating at the turn of the season and rejecting modernity. Of course, tradition changes with the time, and descendants of this nomadic lifestyle have begun to seek more than perpetual exodus to fulfill their lives.
In the late 1950’s, before declaring sovereignty 1961, Kuwait’s government declared that all citizens must formally register before the country is recognized. To qualify for nationality one must meet the following requirements: one must have had settled in Kuwait prior to 1920 and maintained residence in the region; one must be a person in or outside Kuwait whose father is a Kuwaiti national; or one that can prove to have been born in Kuwait, even if their parents are unknown.
At the time of registry, however, a large proportion of Kuwaiti inhabitants lived in rural regions, lacking both the necessary paperwork and literary skills necessary to understand the weighty context of this request. Consequently, around 300,000 Kuwaiti people, including the ancestors of Kareem, did not become citizens.
Today, this would equate to one-third of the native population living in Kuwait. Those that had forgone the process of citizenship were left ‘without’ nationality. Thus, the majority of descendants remain without nationality—otherwise known as Kuwaiti’s ‘Bedoons.’
For several years post-independence, Kuwait’s stateless population continued to live unchallenged by their lack of nationality. Most kept to their tribal traditions, living outside of urban areas and seeking government assistance only on rare, emergency occasions. If public education was sought for a child, the Kuwaiti government allowed schooling for the Bidoon—despite their statelessness.
It was only after heightened tensions in the Middle-East in the late eighties that xenophobia began to emerge as a weapon against the Bidoon people. After a large portion of Kuwait’s people fled during the Iraqi invasion in 1991, only about half of the Bedoons were allowed re-entry.
Of course, Kuwait’s stateless population returned to a different world. Suspicions of Iraqi alignment ran rampant throughout the nation. Consequently, the Bidoon’s lack of formal nationality often receiving the brunt of this hostility.
To this day, over 100,000 Bedoons live without recognition in the only country they have ever called home. Most dwell in rural areas, exposed to unsuitable living conditions. Regardless of their ability to trace back their native roots, they are repeatedly denied citizenship and are unable to qualify for basic government subsidies on healthcare, education and housing/food allowances. On top of this, there still exists an equal number of stateless individuals in neighboring countries, perceived as refugees and denied access to their home altogether.
In a nation that can afford not only to meet the needs of their citizens, but encourage wealthy and prosperous lives—it is unfortunate that such a great number of its native people are living in a way that threatens their basic security.
In order for the world to understand the demographic of the Kuwaiti people and the true ‘wealth’ of this small nation, the government must first open its doors to Kuwait’s stateless population.
– Briana Fernald
Photo: Flickr
Common Diseases in Saint Lucia
Saint Lucia is a small island nation in the Caribbean with a population of about 165,000 people. The citizens have a life expectancy of about 78 years. Although life expectancy is comparable to Jamaica and the United States, common diseases in Saint Lucia still have an impact on the population.
Noncommunicable Diseases
The most common noncommunicable diseases that plague Saint Lucia are cardiovascular diseases, contributing to about 42.3 percent of deaths in Saint Lucia. Stroke and ischemic heart disease are currently the two deadliest cardiovascular diseases in Saint Lucia.
A stroke occurs when blood supply to the brain is interrupted. For example, a blocked artery or damaged blood vessel can cause a stroke. The signs of a stroke include numbness (often on one side of the body), trouble speaking, and loss of balance. Strokes can lead to serious disabilities or death. Both tobacco use and high blood pressure can cause a person to have a stroke. About 14,800 citizens in Saint Lucia use tobacco, which is likely a contributing factor for strokes in the country.
Ischemic heart disease is not only one of the common diseases in Saint Lucia, it is also a contributing factor to strokes. Ischemic heart disease occurs when plaque forms in major blood vessels in the heart, blocking blood flow. This can cause both heart attacks and strokes.
Although stroke and ischemic heart disease are the deadliest cardiovascular diseases in Saint Lucia, incidences of both are actually on a decline. Since 1990, stroke has had a four percent decrease in mortality rate, and ischemic heart disease has had a 16 percent decrease. Although these are small decreases, they are encouraging signs of improvement in Saint Lucia.
Communicable Diseases
Although the situation with noncommunicable diseases has improved, communicable diseases have had an increase in problems. More specifically, Saint Lucia is currently plagued with the zika virus.
Zika is a mosquito-borne disease that is spread through the bugs’ bites. Common symptoms of Zika are fever, headache, red eyes and joint pain. If a pregnant woman contracts Zika, it can cause developmental complications in infants born from the infected mother. Infected patients can also become paralyzed, as Zika can cause the immune system to attack the nervous system.
As of August 29th, 2017 the Centers for Disease Control and Prevention has issued an alert level two in regards to the Zika virus in Saint Lucia. This means that although travel is not recommended, travelers can go to Saint Lucia so long as they use enhanced precautions.
Thanks to the Olympic Games in Rio 2016, the entire world put a spotlight on Zika. Consequently, this has led researchers to compete to find a vaccine or a cure for the virus. Although there is currently no cure or vaccine yet, there are many reports coming out saying researchers are getting a better understanding of the proteins which is essential to finding a cure. Once researchers find a cure, Zika will not be one of the common diseases in Saint Lucia.
– Daniel Borjas
Photo: Flickr
Causes of Poverty in San Marino
San Marino is a small, landlocked country located within Italy. It is a remnant from a time when city states dotted the European landscape. San Marino is believed to be the world’s oldest surviving republic, and tourism plays the largest role in the economy. More than three million people visit the republic each year. However, the nation still struggles with poverty. Here is a look at causes of poverty in San Marino.
One of the causes of poverty in San Marino was the recession of 2008. San Marino‘s economy is heavily reliant on tourism, and the recession incited a drop in tourism rates.
Although tourism is a large part of the economy, San Marino also acted as a tax haven for the wealthy people of Europe. This changed when the European Union and Italy pressured San Marino into going along with a crackdown on tax evasion and money laundering.
The United States Department of State reported that the strict regulations placed on the financial sector has led to a decrease in money laundering. There is not a large enough market for illegal goods, so most money laundering was done on the behalf of people outside of the country looking to avoid higher tax rates in their own countries.
A number of top executives at the Cassa di Risparmio della Repubblica di San Marino were arrested on money laundering charges. This was the nation’s top bank, so the arrests dealt a heavy blow to the nation’s economy. Thus, while it is good for the global economy, the inability to launder money is another one of the causes of poverty in San Marino.
The government of San Marino has taken actions in order to combat the economic downturn, which includes subsidized credit for businesses. San Marino has also taken steps to move its economic growth model away from a dependence on bank and tax secrecy.
Due to its low corporate taxes compared to other nations, the economy can profit from foreign investment as well. San Marino’s income tax is also about one-third the amount compared to other nations in the EU.
The Organization for Economic Cooperation (OECD) removed the small nation from its list of tax havens that have not fully complied with global tax standards in 2009. San Marino also signed tax information exchange agreements with most major nations in 2010.
Causes of poverty in San Marino are largely due to the loss of tourism and its strict regulations on the financial sector, but with its advantages for foreign investments, the small nation hopes to turn its economic woes around.
– Fernando Vazquez
Photo: Flickr