Many Americans are wary about investing in emerging markets simply because they do not know how international investments help the U.S. economy as well as the developing world. Below is a list of the top three ways that global investments can positively influence the United States and beyond.
Job Creation
According to a study by the U.S. Chamber of Commerce, American companies that invest overseas create a greater number of higher paying jobs within the United States than those that only invest domestically.
These jobs tend to be high-skilled and provide financial stability for American citizens. U.S. exports to Africa reached a record-high of over $50 billion in 2013, supporting 250,000 U.S. jobs.
During the 2008-09 financial crisis, 50 percent of global growth came from economic progress of emerging markets in developing countries.
The World Bank invested $3 billion in international labor programs and social protection in order to improve employment rates that year. In fact, 172 different cooperatives were able to offer jobs to those in the developing world throughout 85 different countries.
New Markets and Consumers
According to the U.S. Global Leadership Coalition (USGLC), 1 out of every 5 American jobs is export-based, with half of our exports going to developing nations. Once a company invests overseas, that nation’s economy strengthens, which leads to new markets for those in the developing world to participate in as consumers.
Since 95 percent of potential consumers live overseas, Americans should return investments so that those in the developing world have the chance to become more than just consumers, but also small business owners and professionals who will be able to invest in different American markets.
This growth in consumers will lead to larger sales figures, boosting markets back at home. Jim Yong Kim, President of the World Bank Group, explains how investing in the quality of life overseas is possible.
He writes, “We need to find economic growth strategies that will help all segments of society in emerging markets – reaching even fragile states striving to put years of conflict behind them and create good jobs for the people.”
Poverty Solutions
Investing in the emerging markets of developing countries offers social solutions to the world’s poor who are struggling to survive due to limited access to food and water – two basic human needs.
One can look at the experience of Salman Khan, a former hedge fund analyst turned teacher who created the One Acre Fund in order to serve farming families in Eastern Africa, as an example of such social change can be made through foreign aid.
Over 203,000 farm families were helped just last year in sustainable cropping techniques and food supply. Not only does this program create jobs for farmers living in these regions, but the profits also allow for consumer activity within the American market.
In 2013, Kenya’s One Acre Fund resulted in a 70 percent increase in farm income; Burundi’s fund wasn’t far behind with a 65 percent income growth.
These farmers represent the base of the framework of One Acre’s model to success. Once farmers are able to support themselves financially, they have the opportunity to invest more valuable assets via the American market.
Investments overseas lead to more jobs in America and in the developing world. These jobs allow for new products and markets to emerge, creating a larger customer base. To maintain that these jobs and markets positively affect the economy, the developing world needs to be provided the tools to succeed as consumers.
– Kelsey Lay
Sources: One Acre Fund, Social Impact Investment Taskforce, The White House, The World Bank, U.S. Chamber of Commerce, U.S. Global Leadership Coalition
Photo: Forbes
Pope Francis Supports Global Education for Refugee Children
Pope Francis announced his support for global education for refugee children at the Jesuit Refugee Service’s 35th anniversary ceremony.
The ceremony included 15 refugees along with friends and staff of the Jesuit Refugee Service (JRS). Pope Francis stressed the importance of education for refugee children and youth in order to build peace and improve societies. “To give a child a seat at school is the finest gift you can give,” said the Pope.
Pope Francis has formally recognized and pledged support for the JRS Global Education Initiative to increase the number of refugees served by JRS’s educational program by 100,000 by the year 2020.
“Your initiative of ‘Global Education’ with its motto ‘Mercy in Motion,’ will help you reach many other students who urgently need education which can keep them safe,” Pope Francis said.
Today there are more than 60 million people who have had to flee their homes.
The Initiative helps refugees overcome barriers to education such as overcrowding in schools and being accepted into host communities. Education can keep children safe from gender-based violence, child labor and early marriage. It can also prevent them from joining armed groups.
Only 36 percent of refugee children attend secondary school and less than 1 percent have the opportunity to pursue higher education.
“For children forced to emigrate, schools are places of freedom… Education affords young refugees a way to discover their true calling and to develop their potential,” said the Pope.
JRS works in 45 countries and 10 different regions across all faiths and nationalities to help the most vulnerable in the hardest to reach areas.
According to Independent Catholic News, JRS was founded in 1980 by the Superior General of the Society of Jesus to meet both the human and spiritual needs of refugees. JRS is currently focused on helping refugees from Syria, Afghanistan, the Central African Republic and the Eastern part of the Democratic Republic of Congo.
JRS is continuing to grow and expand in order to accommodate for refugee children and their need for education.
– Jordan Connell
Sources: Independent Catholic News, Jesuit Refugee Service, Vatican Radio
Photo: Flickr
Empowering Female Entrepreneurs to Escape Poverty
The World Bank recently established a line of credit for female entrepreneurs in the world’s poorest nations. The program has already helped more than 3,000 female entrepreneurs in Ethiopia start their own businesses and escape poverty.
In poor communities, women are far less likely than men to own valuable assets to use as collateral to get a loan. Without these loans, many business ventures never make it off the ground.
An estimated 70 percent of women who own small or medium-sized businesses are unable to stabilize and improve them because of a lack of funding credit. This challenge creates a huge loss in potential income within a community.
According to World Bank economists Francesco Strobbe and Salman Alibhai, investing in female-owned businesses results in one of the “highest return opportunities available in emerging markets.”
The World Bank is helping to put an end to this opportunity loss and stagnation of female business opportunities by offering female entrepreneurs loans through the International Development Association and several international development organizations in Canada and the United Kingdom.
Between January 2014 and September 2015, Ethiopia’s Women’s Entrepreneurship Development Project disbursed 768 million birr (about $38 million) worth of credit to 3,227 female entrepreneurs. Currently, nearly $2 million in credit is being disbursed each month with an average individual loan size of approximately 219,605 birr (approximately $11,000).
Research shows that female entrepreneurs are more likely to hire other women to work in their businesses, opening up employment opportunities in communities where positions for women were scarce before.
Thus far, 76 percent of the women who have taken advantage of the program are first-time borrowers, unlocking untapped capital and opening up a new route to closing the gendered financial gap.
Despite the majority being first-time borrowers with little to no collateral, the repayment rate is 99.4 percent. Besides the success of the small loans, the program also offers entrepreneurship training to inspired women throughout the nation.
So far, more than 5,000 women have taken advantage of training and hope to enter into the exciting realm of business ownership. This trend is likely to drive down the overall rate of unemployment throughout Ethiopia, which currently stands at 17 percent.
– Claire Colby
Sources: CIA World Factbook, World Bank
Photo: Flickr
Addressing the Global Water Crisis
The statistics concerning the global water crisis are staggering, especially in developing countries.
These are just a few of the shocking statistics that highlight the seriousness of the global water crisis. However, by donating and investing in initiatives that are environmentally safe and cost-effective it is possible to turn back the tide of the growing global water crisis.
Students, especially girls, who no longer have to focus time and effort on collecting water, can devote more time to attending school. With the addition of safe and sanitary latrine areas, girls can also stay in school throughout their teenage years following puberty.
With access to water, food security can become a reality in developing countries. Fewer crops will be lost and schools can begin to feed their students through the use of their own gardens, which will slash costs.
Access to clean water also means clean hands which lead to healthier bodies. People can focus on ending the cycle of poverty instead of succumbing to water-related sicknesses.
Clear cut access to clean water can also help alleviate conflicts over 276 transboundary river basins. An improved understanding of proper sanitation can increase access to clean water and significantly reduce pollution through unsanitary practices such as waste dumping into these river basins.
According to The Water Project, access to clean water alone can go a long way towards breaking the cycle of poverty for millions of people. All that is needed is to act upon this knowledge.
– Drusilla Gibbs
Sources: World Water Council, Water, The Water Project
Photo: Occupy For Animals
Reaching Millions Through Feed the Future
In 2014 alone, the organization reportedly reached nearly 19 million households and helped nearly seven million farmers gain access to new tools and technologies.
New data demonstrates that through Feed the Future and other U.S. government efforts, childhood stunting rates have declined in Ethiopia, Ghana and parts of Kenya. These rates have dropped between 9 and 33 percent in recent years while areas in Uganda have seen a 16 percent drop in poverty.
In Honduras, Feed the Future is helping to reduce both poverty and stunting for its program participants.
Led by the U.S. Agency for International Development (USAID), the organization is working towards pioneering a comprehensive approach to ending hunger and creating global change. Feed the Future draws on the resources and expertise of 10 other U.S. government partners.
The organization currently focuses on small farm holders, particularly women, across 19 countries globally.
“Through Feed the Future, the United States is partnering across borders and across sectors to unlock the transformative potential of agriculture,” Eric Postel, the Associate Administrator for USAID, said.
“This global effort is empowering rural farming families to lift themselves out of poverty and hunger, and the results are clear. From Asia to the Caribbean to Africa, Feed the Future is helping raise crop yields and incomes, reduce stunting and poverty, and improve child nutrition.”
With nearly 800 million people suffering from chronic hunger, and with the world’s population projected to increase to more than nine billion by 2050, ensuring that everyone has enough nutritious food to eat will require a 60 percent increase in agricultural production without adversely affecting the environment.
According to Postel, “Going forward, USAID and our partners will continue working to ensure everyone has the nutritious food they need to lead full, healthy lives.”
– Kara Buckley
Sources: Feed the Future 1, Feed the Future 2, USAID
Photo: Flickr
Maternal Death Rates Plummet Worldwide
Maternal deaths have been cut nearly in half since 1990 according to a new report by the United Nations and World Bank. Thanks to increased access to reproductive and family planning health services, mortality rates have shrunk to 216 per 100,000 live births in 2015 from 385 in 1990.
East Asia made especially notable progress, reducing its mortality rate from 90 to 27. Nine countries: Bhutan, Cambodia, Cape Verde, East Timor, Iran, Laos, The Maldives, Mongolia and Rwanda have cut rates by up to 75-90 percent.
While optimistic, experts warn that progress has been inequitable among developing countries and has fallen well short of the Sustainable Development Goal to achieve a worldwide reduction of maternal deaths of 75 percent.
“Many countries will make little progress, or even fall behind, over the next 15 years if we don’t make a big push now,” said Executive Director for the United Nations Population Fund (UNPF), Dr. Babatunde Osotimehin.
Nearly all maternal deaths occur in developing countries, 70 percent in sub-Saharan Africa alone, and most cases occur in rural and remote communities where women face inadequate access to medical care.
Common causes of maternal death include infections, severe bleeding, high blood pressure during pregnancy and complications during delivery – risks that health officials urge are entirely preventable.
That’s why the World Health Organization (WHO), within the framework of the newly launched UN Global Strategy for Women’s, Children’s and Adolescent’s Health, has begun a vigorous campaign to address the disconnect between expectant mothers and well-trained healthcare providers in impoverished communities.
Under the mandate of the Global Strategy, the WHO will partner with local governments to ensure that every mother has access to prenatal and antenatal care, that health care providers are performing at globally set standards, and that healthcare systems are receiving the resources and funding they need to respond to the patient needs.
The organization has designed and implemented training materials and is offering public policy guidance and progress tracking programs.
To achieve the Sustainable Development Goal, however, the U.N. and WHO acknowledge that their strategy will need to couple delivery of care with educational initiatives.
They will engage women in marginalized communities, teaching them practices to maintain their health and the health of their babies – lessons that the organizations believe will challenge traditional and cultural modes of thinking about healthcare.
The World Bank has expressed confidence in these efforts and has reported receiving increasingly reliable birthing data from local governments. “Ending maternal deaths by 2030 is an achievable goal if we redouble our efforts,” said World Bank Senior Director of Health, Nutrition and Population, Dr. Tim Evans.
– Ron Minard
Sources: Reuters, UN, WHO, World Bank
Photo: Pixabay, Flickr
Why Should Americans Invest in Emerging Markets?
Many Americans are wary about investing in emerging markets simply because they do not know how international investments help the U.S. economy as well as the developing world. Below is a list of the top three ways that global investments can positively influence the United States and beyond.
Job Creation
According to a study by the U.S. Chamber of Commerce, American companies that invest overseas create a greater number of higher paying jobs within the United States than those that only invest domestically.
These jobs tend to be high-skilled and provide financial stability for American citizens. U.S. exports to Africa reached a record-high of over $50 billion in 2013, supporting 250,000 U.S. jobs.
During the 2008-09 financial crisis, 50 percent of global growth came from economic progress of emerging markets in developing countries.
The World Bank invested $3 billion in international labor programs and social protection in order to improve employment rates that year. In fact, 172 different cooperatives were able to offer jobs to those in the developing world throughout 85 different countries.
New Markets and Consumers
According to the U.S. Global Leadership Coalition (USGLC), 1 out of every 5 American jobs is export-based, with half of our exports going to developing nations. Once a company invests overseas, that nation’s economy strengthens, which leads to new markets for those in the developing world to participate in as consumers.
Since 95 percent of potential consumers live overseas, Americans should return investments so that those in the developing world have the chance to become more than just consumers, but also small business owners and professionals who will be able to invest in different American markets.
This growth in consumers will lead to larger sales figures, boosting markets back at home. Jim Yong Kim, President of the World Bank Group, explains how investing in the quality of life overseas is possible.
He writes, “We need to find economic growth strategies that will help all segments of society in emerging markets – reaching even fragile states striving to put years of conflict behind them and create good jobs for the people.”
Poverty Solutions
Investing in the emerging markets of developing countries offers social solutions to the world’s poor who are struggling to survive due to limited access to food and water – two basic human needs.
One can look at the experience of Salman Khan, a former hedge fund analyst turned teacher who created the One Acre Fund in order to serve farming families in Eastern Africa, as an example of such social change can be made through foreign aid.
Over 203,000 farm families were helped just last year in sustainable cropping techniques and food supply. Not only does this program create jobs for farmers living in these regions, but the profits also allow for consumer activity within the American market.
In 2013, Kenya’s One Acre Fund resulted in a 70 percent increase in farm income; Burundi’s fund wasn’t far behind with a 65 percent income growth.
These farmers represent the base of the framework of One Acre’s model to success. Once farmers are able to support themselves financially, they have the opportunity to invest more valuable assets via the American market.
Investments overseas lead to more jobs in America and in the developing world. These jobs allow for new products and markets to emerge, creating a larger customer base. To maintain that these jobs and markets positively affect the economy, the developing world needs to be provided the tools to succeed as consumers.
– Kelsey Lay
Sources: One Acre Fund, Social Impact Investment Taskforce, The White House, The World Bank, U.S. Chamber of Commerce, U.S. Global Leadership Coalition
Photo: Forbes
Digital Technology Offers Solutions to Ending Global Poverty
Though digital technology often seems out of reach in developing countries where some people are struggling to find clean water and food, one can look to Digital India—an initiative by the Government of India to integrate digital technology into society—to see how such technologies offer solutions toward ending global poverty.
The initiatives of Digital India include creating digital infrastructure, delivering government services to citizens digitally, improving digital literacy, and expanding high-speed internet access for rural areas.
According to news site DNA India, the Government of India hopes to reach nationwide information frames by March 2017. By 2020, the government has plans to train over 150,000 students to work in the IT sector. Wi-fi access will be digitally accessible by all universities, country-wide.
According to H.C. Hong, president and CEO of Samsung India, the popularity of smartphones and mobile social media has caused a large growth in online activity and technology adaptation of young people in India.
For digital technology to become a success in developing countries, a high-skilled workforce needs to exist in the sector. This opens up the job market, allows for professional training, and expands business growth that all help to reduce poverty.
This year, Burkina Faso became the first African nation to use cloud networking technology thanks to French telecommunications company Alcatel-Lucent.
According to the African Media Agency (AMA), the Danish government will be funding the project with a $19.9 billion investment that will provide for digital public service development and the training of 100 employees.
In Burkina Faso, digital services for health, education, justice, services will be provided by the network and assist the country in facilitating economic growth. Danish Ambassador to Burkina Faso, Bo Jensen, explains the region’s digital technology solution to ending poverty:
He states, “The objectives pursued by the project are in line with the national development strategy and sectorial strategies. It is an innovative approach using state of the art technology to pursue poverty alleviation and good governance…We strongly believe that this project will lead to more transparency and improved public financial management.”
Cloud access in poor, rural areas offers information and services that may not have been accessible in certain regions of the world ever before. People have access to endless information, such as weather reports, research and stock market news—consumer information that can lead to market activity and stimulate the economy.
– Kelsey Lay
Sources: African Media Agency, Alcatel-Lucent, DNA India
Photo: Flickr
Gender Equality in Rwanda Ranks in Top 10
When people think of gender equality they often do not associate it with Rwanda. But, according to the World Economic Forum’s (WEF) annual report, people should.
Gender equality in Rwanda outperformed many expectations, scoring high in the graded categories of economics, health, education and politics. Additionally, the country placed in the top ten for the second year in a row. They even improved their spot by one, coming in at sixth place.
As a continent, Africa has some of the worst performing countries in the world. Numerous African countries scoring in the bottom 20 supplement that fact. Chad, Mali and Guinea are some of the countries that have yet again found themselves in the bottom 20.
Impressively, Rwanda beat out many well-developed countries. They boast better scores than France (15th) Germany (11th) and even the United States (28th).
The country has continued to see success in bridging the gender equality gap. According to WEF’s Global Gender Gap Report, an impressive 88 percent of women in Rwanda hold jobs. Comparatively, the percentage of women in the United States who have jobs is only 66 percent.
While Rwanda’s placement on the index is certainly praiseworthy, the question remains – how did the country outperform 139 others?
Saadia Zahidi, a member of the WEF, explains: “There are quite a few theories for this and certainly one of them is that after the genocide there has been much lower numbers of men who are able and willing to be working. So, that has changed the dynamics.”
The genocide that Zahidi talks about occurred in 1994. It was aimed at the country’s minority group, the Tutsi’s, and claimed the lives of over one million civilians. Many women became widowed as a result.
After the genocide ended, women came together and demanded change. They successfully re-wrote parts of the constitution and ensured that 30 percent of political roles would be held by women. They also called for marriage equality and land ownership rights.
In terms of political opportunities, Rwanda has the highest percentage of women in Parliament, something that remains to be celebrated.
Of course, there is still much that needs to be done in order to continue to eliminate the gap between genders. However, Zahidi remains confident that the divide in gender equality in Rwanda will continue to close.
– Alyson Atondo
Sources: The World Economic Forum 1, Huffington Post, QZ.com, Washington Post, The World Economic Forum 2
Photo: Flickr
Democratic Growth in Burkina Faso
Burkina Faso’s recent presidential election marks a turning point for the West African country, which has been locked in a power struggle for decades.
November 29 marked the first truly democratic election in Burkina Faso in 30 years. Roch Marc Christian Kabore won the presidential election in a significant statement of democratic promise for the long-suffering country.
However, the election did not go off without a hitch. Presidential guard forces, led by General Gilbert Diendéré, staged a coup in September by taking the transitional president and prime minister hostage, pushing the election back two months. Fortunately, the popular movement successfully shut down the attempt according to U.N. Dispatch.
Newly elected President Kabore founded the Movement of People for Progress (MPP), a social democratic party that opposes former president Compaore’s Congress for Democracy and Progress party (CDP).
This election brings much-needed change that will lift Burkina Faso out of its period of civil strife. Between power struggles and economic downfall, this country has seen it all in the past few decades.
“A poor country even by West African standards, landlocked Burkina Faso has suffered from recurring droughts and military coups,” the BBC said.
Poor, indeed, Burkina Faso ranks 181 out of 187 in the United Nations Development Programme’s (UNDP) 2014 Human Development Index.
The election not only brings the promise of democratic growth, but also socio-economic growth in the country. Ethiopia is another country which is benefitting from socio-economic and democratic transformation, as Sudanese government officials reportedly commended its federal system for guaranteeing sustainable peace and economic development.
“The Sudanese delegates said the Ethiopian federal system was the foundation for stability and socio-economic development achieved following the constitutional-based introduction of the system,” the Sudan Tribune said.
Now that democratic rule has been established in Burkina Faso, President Kabore can focus on building the country’s economy and a sustainable future.
– Ashley Tressel
Sources: UN Dispatch 1, UNDP, UN Dispatch 2, Reuters, BBC, Sudan Tribune
Photo: Flickr
Innovative Ways to Keep Children in Poverty in School
Education around the world is imperative, but especially in developing countries where education can improve communities and the lives of people who are a part of them.
In 2015, 91 percent of children across the developing world were enrolled in primary school. Although there are more children in school now than ever before, there are still millions of children around the world that are not enrolled in school.
The best ways improve enrollment rates for children in poverty is to focus on the issues that cause children to drop out of school, which includes social, economic and health issues.
According to Dr. Cantor, a psychologist who specializes in childhood trauma, students in schools can do well if the issues they face are dealt with head on.
In addition to fundraising campaigns that provide for school buildings, supplies and uniforms it is also important to target the underlying issues above. Here are some innovative ways to help keep children in poverty enrolled:
These innovative ways to keep children in poverty in school focus on issues children may face outside of school, but they can make a huge difference in students’ attendance and ability to stay in school.
– Jordan Connell
Sources: Huffington Post, A Life You Can Save, The New York Times
Photo: Flickr