On July 26, 2015, the Senate voted to revive the federal Export-Import Bank, a substantial tool in promoting development and reducing poverty. Authorization for the bank expired on June 30, 2015.
The Export-Import (Ex-Im) Bank, an independent federal agency, is the official export credit agency of the United States. Since the Ex-Im Bank’s founding in 1934 by an executive order issued by President Franklin D. Roosevelt, it has provided financial support for American businesses exporting goods overseas when private sector financiers are unable or unwilling to step in.
The financial instruments the Ex-Im Bank provides include direct loans, guarantees and insurance. These instruments supported an estimated $27.5 billion in U.S. exports of goods and services in 2014. Interestingly, the bank operates at no cost to the taxpayers – it offsets collections to cover the cost of its operations. Just as interesting, in 2014, the bank reported a default rate of 0.175 percent.
In recent years, the financial services that the Ex-Im Bank offers have increasingly helped American businesses export to emerging markets as opposed to advanced economies. More than two-thirds of the projects financed by the bank occurred in relation to emerging markets in 2014, which the bank attributes to worldwide demand for infrastructure rising in emerging markets.
Creating infrastructure in the developing world is crucial for development. For those in poverty, access to electricity, telecommunications, clean water and transportation saves crucial time and resources. In 2014 the bank authorized $11.6 billion to support U.S. exports in infrastructure projects, more than half of its total financing for the year.
Looking at Sub-Saharan Africa, in the past five years the Ex-Im Bank has approved more than $6.3 billion to finance U.S. exports to that region, including $2.1 billion in 2014. That same year, Ex-Im Bank supported exports accounted for approximately 8 percent of an estimated more than $25 billion of total manufacturing exports to the region.
While these numbers ideally would be higher, they are still significant, likely affecting hundreds of thousands of African lives directly and millions indirectly. Facilitating the capacity of U.S. businesses to invest in developing regions of the world not only reduces poverty in those regions but also stimulates the U.S. economy. For example, the bank contends that for the fiscal year 2014, it supported 164,000 U.S. jobs by authorizing $20.5 billion for 3,746 financial transactions.
Looking at the bank holistically, it operates at no cost to the taxpayer, helps develop the developing world and stimulates the U.S. economy. However its detractors, many of who are Tea Party members, do not see the bank in such a light. They assert that the use of taxpayer’s funds for private benefit, whether for large or small businesses, distorts the market since, ideally, the private sector is more efficient in financing exports.
Yet the entire Republican Party does not see it this way. A bipartisan vote to attach a measure to a highway and infrastructure bill included almost half of the Republicans in the Senate, and a majority in the House supports resurrecting the agency.
Ultimately though, it will be up to the Republican leadership in the House whether to pass the bill with the measure or not. Unfortunately for proponents of the bank, the House majority leader, the majority whip, the Ways and Means Committee chairman and the Financial Services Committee, all opponents of the bank, stand in the way.
– Connor Bohannan
Sources: Congressional Research Service, Export Import Bank 1, Export Import Bank 2, Las Vegas Sun, The New York Times
Photo: Flickr
Nigerian Startup Heads to MIT Workshop
This August, MIT will host the 2015 MITx Global Entrepreneur Bootcamp, where students from all around the world are brought together in the spirit of entrepreneurship. Within a week, each student will create a business and pitch their idea to a panel of professionals, giving the visiting students a taste of the fast-paced, competitive MIT atmosphere.
MITx selected 50 candidates from 24 countries to participate in the boot camp. Chris Kwekowe from Nigeria is among the 50 to be accepted at the MIT workshop with his startup, Slatecube.
Chris Kwekowe is from southeastern Nigeria. He comes from a family of five, which are all boys. He currently studies Computer Science at the Nnamdi Azikwi University, Awka. He believes “the average African youth is the driving force for global impact,” which inspired the start of Slatecube.
Slatecube balances current knowledge with skill acquisition in a system of free, cloud-based learning courses. It focuses on “employability and social development”. It enables its users to learn and collaborate with professionals while developing relevant skills to give them an edge in the working world.
Kwekowe explains, “Essentially, what we do at Slatecube is really simple but very important. We help individuals develop new knowledge or build on already existing knowledge and then expose them to industry-relevant skills with hands-on training from real organisations in order to make them more employable and improve their social and economic relevance.”
Slatecube is designed to help students gain skills and obtain experience, both of which will help young, aspiring professionals when applying for a job. The courses are self-paced and the instructors are free-lanced.
With knowledge this accessible to young Nigerian students, Slatecube would empower the workforce and decrease the unemployment rate. In 2015, Nigeria’s unemployment rate is seven point five percent, an astonishing decrease since 2012, when the unemployment rate was 23 percent. Slatecube could further this decline in unemployment while empowering young professionals.
Kwekowe will attend MITx Global Entrepreneur Bootcamp at the end of August, ready and armed with Slatecube. Back with his newfound knowledge from MITx, Kwekowe and Slatecube could have a large impact on young, aspiring professionals around the world.
– Hannah Resnick
Sources: IT News Africa, MITx, Slatecube, Trading Economics
Photo: IT News Africa
Beijing’s Ban on Smoking
Though the June 1st ban on smoking wasn’t the first of its kind in Beijing, it may be one of the most effective. The ban comes at a time when China has the highest number of male smokers. It is estimated that one-third of all cigarettes sold globally are produced by China National Tobacco Corporation, with 43% of tobacco produced in China.
The high rates of smoking in China, and in particular Beijing, are especially concerning. About 60% of male doctors smoke and few associate the habit with health problems other than vascular ones. Without the widespread knowledge and dissemination of the risks associated with tobacco smoking, people often have little incentive to stop.
China’s smoking problem is also largely a cultural one, concentrated in masculinity. While an estimated 45% of men smoke, only about 2.1% of Chinese women do. However, when looking at the plethora of health problems that stem from smoking, men, women, and children are all affected. The high volume of smokers combined with the thick covering of smog cloaking entire cities creates a pocket of pollution where the effects of second-hand smoke are exacerbated.
The latest ban introduced in Beijing bans all smoking in indoor places with an added level of severity-fines. People who act against the ban are subject to fines of $32 and businesses that allow people to smoke on their premises will be fined $1,600. In the past two months, about $16,000 has been collected in fines from the ban, but in the coming months that amount may rise. The Beijing Municipal Commission of Health and Family Planning has discussed the possibility of increasing fines for individuals to $800. What’s more is that any person who violates the law three times is subject to being publicly named on a government website, a clause that aims to shame.
Upon the initial implementation, support was strong and people seemed excited. However, as is the case with most past similar bans, the popularity fades and as the attention slips away so does the people’s enthusiasm and commitment. On the contrary, this particular ban has shown more promise. Almost two months post-implementation, the ban still sees support from pop culture icons and a visible decline in indoor smoking. With Beijing getting a little extra focus from the Chinese government for being the capital, perhaps this particular ban will see greater success than past ventures. If the abstinence continues, Beijing will be able to serve as an example to other cities around the country, and the overall rate of smoking will likely decline.
Although such a decline in vast numbers of Chinese smokers will affect the nation’s economy slightly, the overall benefits to health seen in both men and women will create a healthier working class that will reciprocate any losses by boosting the workforce and spending. Also as smoking rates decline, women will face fewer health risks imposed by their male counterparts, which will make for a more fair environment for women, although China continues to struggle in gender equality, it is a step. Like all newly implemented programs and policies, the ban can only restrict smoking so far, but it is a very positive step for Beijing and for China. In order for China to fully reap all of the rewards from smoking reduction, a cultural change is needed, which is often times the harder of the two to enact.
– Emma Dowd
Sources: BBC, CNN, FP
Photo: Flickr
The Modern Slavery Act and What It Means
There are more slaves in the world now than any other period of time in human history. These slaves range from young children captured by warlords to do their bidding, to men and women captured to be used as sex slaves. For many years these individuals have been forced to live hidden lives, ashamed of past actions and often worried of facing prosecution for actions carried out while they were enslaved. The United Kingdom has taken the first step of providing solace to these victims with the passing of the Modern Slavery Act of 2015.
The United Kingdom is estimated to house between 10,000 to 13,000 slaves working as prostitutes, servants and workers who live on meager or no wages. These individuals live in constant fear of the traffickers who brought them to the UK and have witnessed atrocities beyond what most have endured. For several years, the laws have been unclear as to how to handle victims of trafficking and this has led to arrests and harsh treatments of several victims rather than their traffickers.
The Modern Slavery Act will effectively protect trafficking victims and prosecute perpetrators.
As the main supporter of the bill, Home Secretary Theresa May said, “This landmark legislation sends the strongest possible signal to criminals that if you are involved in this vile trade you will be arrested, you will be prosecuted and you will be locked up. And it says to victims, you are not alone – we are here to help you.”
This bill proposes increasing traffickers’ jail time from the current 14 years to a lifetime sentence instead. It also provides trafficked workers with overseas domestic work visas, protection and counseling for anything that might have occurred while they were enslaved. While legislation and increased presence from law enforcement may only be the start, it is a step in the right direction. The UK has become the first country to make strict laws and regulations regarding trafficking; for years, traffickers have been using loopholes in the system in order to keep their businesses alive.
Most of the people who are trafficked into the system come from poor families in developing nations who are in desperate need of money. Traffickers promise individuals jobs in outside countries that would allow them to support their families, and while they may get jobs none of the money they earn goes back to their families. If people instead were promised education in local areas, if they no longer had to worry about being stolen away in the night, imagine the innovation that would come with that peace of mind.
While there are a few issues with the bill, time and experience will determine if the bill will be successful.
The developing world needs all the help it can get in order to succeed in becoming a competitor in the global market. This act allows people to stay in their home countries, get the counseling and education they need in order to prosper and ensures that traffickers will be prosecuted to the best of the ability of the law.
– Sumita Tellakat
Sources: Gov.UK, BBC
Photo: IB Times
Save the Children: Healing Through Art
The practice of art has the power to help young children who have faced emotional trauma and devastating tragedies. In countries where severe poverty is persistent, children experience life events that can delay their development and affect their mental health.
Save the Children’s HEART, Healing and Education through the Arts, program has positively impacted the lives of many young children. The concept is that art forms such as drawing, painting, music, drama, and dance can help children express their emotions and experiences in order to improve their emotional well-being and ability to learn.
The program exists in Haiti, Malawi, Mozambique, and Nepal. It has reached thousands of preschoolers and school children. It is often incorporated into existing after school child development programs.
Children in these regions of the world experience stress from their life circumstances of poverty and traumatic events. The following are the stories of three children who have benefited from the HEART Project.
The video of this Save the Children program portrays the stories of some of these young children and how art allowed them to work through feelings that they could not express verbally.
– Iliana Lang
Sources: Save the Children, Save the Children, YouTube
Photo: Save the Children
Eddie Izzard Visits Yemeni Refugees in Djibouti
Stand-up comedian, actor, writer, and self-proclaimed travesti exécutif, Eddie Izzard, traveled to Djibouti in July 2015.
Izzard, a UNICEF UK Ambassador, met with child refugees who escaped the ongoing civil war in Yemen, Izzard’s country of birth. The children he spoke to fled their homes with nothing, traveling across the Red Sea by boat.
According to UNICEF UK, more than 20,000 people, including 10,000 Yemenis, have taken the journey across the Red Sea into Djibouti since March. Many of these Yemeni refugees are living in Markazi, a refugee camp outside the city of Obock.
“For decades, the children of Yemen have been living in fear and danger. They are now living through the hell of civil war and many have had to flee across the Red Sea, to Djibouti via Bab-El-Mandeb – the Gate of Tears” Izzard explains.
“The harrowing stories from Yemenis, particularly those from Aden, the city of my birth, will stay with me forever. I have a responsibility to highlight this crisis to the world, and I hope I can persuade the UK public to help the 10 million Yemeni children that are in danger right now.”
Izzard wishes to help the many children caught within the turbulence of conflict—products of what he calls a “forgotten civil war”.
In his appearance for Sky News, he highlights UNICEF’s efforts, stating that with any donations the organization would be able to provide a week’s worth of nutritious food or even 60 vaccinations against polio.
Out of the 25 million total population of Yemen, he states, nine million children have become extremely vulnerable and have faced much hardship due to the ongoing conflict.
– Jaime Longoria
Sources: MSN, UNICEF
Photo: UNICEF
Planet Labs Images the World
Planet Labs tracks human activity via satellites, ground stations and data centers. It provides timely information to best approach global stewardship. From food security, environmental monitoring, disaster response and climate resilience, Planet Labs advances social impact by developing rigorous data literacy.
Born in San Francisco in 2012, the startup envisioned what it would be like to create a cheap, simple spacecraft that could work with other tiny crafts to deliver real-time monitoring of the planet. The goal was to help people make more informed decisions about their impact on the earth. Fast-forward three years and today, Planet Labs’ mission is, “Fresh data from any place on earth is foundational to solving commercial, environmental, and humanitarian challenges.”
By “using space to help life on earth” Planet Labs creates tiny shoebox-sized satellites they call “Doves.” In January 2014, it launched Flock 1. At 28 Doves, it was the largest collection of Earth-imaging satellites ever sent to space.
Information technologies have the power to monitor local and global development for humanitarian and commercial use. They also provide mass appeal to those without access to such information. At the same time, the Doves are meant to canopy the earth at heights low enough to see treetops but high enough to conceal personal privacy.
Currently, its views are used in independent logistics, site development, crop monitoring, urbanization, natural resources and asset management.
In western Beijing, China, Planet Labs measures urban growth rates and points of infrastructural change. In 2013, Beijing welcomed an additional 455,000 people, totaling to 21.15 million.
The Longyangxia Dam Solar Park in China is one of the world’s largest solar power plants. Settled in China’s Qinghai Province, the park produces nearly 320 megawatts of power. Planet Labs imagery assists in monitoring these large facilities for environment and social impact that would otherwise be undetected.
In Iraq, gas flares at Rumalia Oil Field pose serious economic, environmental and health risks. Massive gas flaring wastes the nation’s resources every day, and the acid rain, sulfur dioxide and fine soot particles harm human and livestock health, as well as damage the land.
Planet Labs curates galleries of images for monitoring global development. It “makes global change visible, accessible and actionable for those who need it most.” Providing universal access is one of Planet Labs’ missions, all of which are at affordable costs.
– Lin Sabones
Sources: Planet Labs, Planet Labs, Planet Labs, CNN
Photo: Andrew Zolli
Education in Costa Rica – A Progress Report
Education in Costa Rica has been a hot button topic for many years. In 1990, the country pledged to work toward the targets set out by Education for All (EFA) under the direction of UNESCO. EFA is used to help achieve UNESCO’s education goals of quality education for everyone and for education being a fundamental part of development.
During the first years of the initiative to improve the standards of education in Costa Rica, the country faced numerous challenges. Some of these challenges included students repeating class levels, high drop out rates, and limited training courses for teachers. In addition, it was found that the education system suffered from a lack of innovative, and passionate teachers.
Poverty has also had a significant impact on education in Costa Rica. Families where the parents have less than six years of education tended to have a lower income and their children usually did not finish school. This only perpetuated the cycle and government support was required to improve the system overall.
In addition, providing quality teachers has boosted education goals. The government pays education professionals more to attract young bright high school and college graduates to go into education. It encourages students to finish school and have a decent paying job, which helps break the low-level education and poverty cycle. There are training programs aimed to improve the quality of teachers as well.
In rural areas, there are special programs to compensate for the lack of teachers. There is a movement to bring technology in and have one computer per student. This way the students can complete high school with a quality education.
Currently, Costa Rica has a 93.6 percent rate for access to education. For youth literacy (ages 15-24) there is an average of 98 percent. Primary school attendance is about 96 percent of the youth population. Costa Rica has one of the highest literacy rates and school attendance in Latin America and South America.
– Katherine Hewitt
Sources: Costa Rica Gold Country, HDR, Social Progress Imperative, Tico Times, ASCOA
Photo: Tico Times
Senate Revives Export-Import Bank
On July 26, 2015, the Senate voted to revive the federal Export-Import Bank, a substantial tool in promoting development and reducing poverty. Authorization for the bank expired on June 30, 2015.
The Export-Import (Ex-Im) Bank, an independent federal agency, is the official export credit agency of the United States. Since the Ex-Im Bank’s founding in 1934 by an executive order issued by President Franklin D. Roosevelt, it has provided financial support for American businesses exporting goods overseas when private sector financiers are unable or unwilling to step in.
The financial instruments the Ex-Im Bank provides include direct loans, guarantees and insurance. These instruments supported an estimated $27.5 billion in U.S. exports of goods and services in 2014. Interestingly, the bank operates at no cost to the taxpayers – it offsets collections to cover the cost of its operations. Just as interesting, in 2014, the bank reported a default rate of 0.175 percent.
In recent years, the financial services that the Ex-Im Bank offers have increasingly helped American businesses export to emerging markets as opposed to advanced economies. More than two-thirds of the projects financed by the bank occurred in relation to emerging markets in 2014, which the bank attributes to worldwide demand for infrastructure rising in emerging markets.
Creating infrastructure in the developing world is crucial for development. For those in poverty, access to electricity, telecommunications, clean water and transportation saves crucial time and resources. In 2014 the bank authorized $11.6 billion to support U.S. exports in infrastructure projects, more than half of its total financing for the year.
Looking at Sub-Saharan Africa, in the past five years the Ex-Im Bank has approved more than $6.3 billion to finance U.S. exports to that region, including $2.1 billion in 2014. That same year, Ex-Im Bank supported exports accounted for approximately 8 percent of an estimated more than $25 billion of total manufacturing exports to the region.
While these numbers ideally would be higher, they are still significant, likely affecting hundreds of thousands of African lives directly and millions indirectly. Facilitating the capacity of U.S. businesses to invest in developing regions of the world not only reduces poverty in those regions but also stimulates the U.S. economy. For example, the bank contends that for the fiscal year 2014, it supported 164,000 U.S. jobs by authorizing $20.5 billion for 3,746 financial transactions.
Looking at the bank holistically, it operates at no cost to the taxpayer, helps develop the developing world and stimulates the U.S. economy. However its detractors, many of who are Tea Party members, do not see the bank in such a light. They assert that the use of taxpayer’s funds for private benefit, whether for large or small businesses, distorts the market since, ideally, the private sector is more efficient in financing exports.
Yet the entire Republican Party does not see it this way. A bipartisan vote to attach a measure to a highway and infrastructure bill included almost half of the Republicans in the Senate, and a majority in the House supports resurrecting the agency.
Ultimately though, it will be up to the Republican leadership in the House whether to pass the bill with the measure or not. Unfortunately for proponents of the bank, the House majority leader, the majority whip, the Ways and Means Committee chairman and the Financial Services Committee, all opponents of the bank, stand in the way.
– Connor Bohannan
Sources: Congressional Research Service, Export Import Bank 1, Export Import Bank 2, Las Vegas Sun, The New York Times
Photo: Flickr
Facts About Poverty in Kenya
The stereotype remains that Africa as a whole is vastly impoverished and desolate. While certainly some pockets of the continent continue to suffer, poverty in Kenya is showing great improvement. Here are a few things to know about poverty in the East African country.
1. Kenya has one of the highest rates of population growth
Kenya’s population has nearly doubled in the last 25 years, from about 29.14 million in 1998 to 56.2 million in 2024 and the rapid population increase is set to continue. The United Nations (U.N.) has projected that Kenya’s population will grow by one million annually for the next 40 years, ultimately reaching 85 million by 2050. This will result in the rapid urbanization of Kenya’s rural areas. Furthermore, according to the World Bank, it will play an important role in “determining Kenya’s social stability.”
2. Children make up a large amount of the population
Of those living in Kenya, 38% (2022 estimate) are children aged less than 15. This has major implications for the country’s infrastructure and leaders realize it is past time to support these children.
3. Life expectancy is increasing
Life expectancy in Kenya has greatly increased over the years, from 53 years old in 2000 to more than 60 years in 2021. The majority of these improvements are from public health initiatives, particularly surrounding HIV/AIDS prevention after the disease was officially declared a natural disaster by the government in 2001.
4. There are not many physicians in Kenya
With a doctor-to-patient ratio of 1:17,000 and a nurse-to-patient ratio of 100:100,000, Kenya’s health care workforce density falls below the World Health Organization’s (WHO) recommended density of at least one doctor per 1000 patients and 365 nurses per 100,000 patients. This shortage of medical professionals has compromised quality health care delivery in Kenya. However, major public health interventions have helped to reduce the mortality rate, such as those taken with HIV/AIDS, as well as many waterborne illnesses.
5. The poorest inhabitants live in rural areas
With limited access to the few physicians and nurses who inhabit the country, rural areas suffer the greatest. Comprised mostly of farmers and other agricultural workers, those living in rural areas often go without health care, clean water, sanitation and many other social services, which are primarily located in the cities and business regions. Poverty in Kenya is a widespread problem but is concentrated in rural areas.
6. The nation is not economically diverse
The vast majority of all work lies in the agricultural sector,” which employs more than 40% of the total population and 70% of the rural population.” Thus, when droughts and other natural disasters occur, farmers are out of luck.
7. Kenya has one of the highest literacy rates in Sub-Saharan Africa
The youth literacy rate in Kenya is 89% percent as of 2022, which is greater than that of some of its neighboring nations. For example, the youth literacy rate is approximately 70.5% in Somalia.
8. There is hope
Kenya Aids NGOs Consortium (KANCO) is a leading nongovernmental organization in Kenya dedicated to combating HIV/AIDs, malaria and Tuberculosis and promoting public health. In 2022, the organization reached nearly 30,000 households through community health outreaches, supported 4,000 health workers and screened more than 40,000 people for Tuberculosis.
Through its comprehensive approach, KANCO continues to make significant contributions to the improvement of public health outcomes in Kenya.
– Liz Vestal
Photo: Flickr,
Updated: May 27, 2024
The Global Goals: Humanity’s Finest Endeavor
The Global Goals for Sustainable Development are running with the success brought by the Millennium Development Goals (MDGs).
The MDGs radically reduced child mortality rates from 12.7 million in 1990 to 6.3 million in 2013. The same age group felt a drop in underweight children from 28% in 1990 to 17% in 2013. HIV breaks fell by 38% from 2001 to 2013, and tuberculosis and HIV-negative tuberculosis cases declined. The MDGs achieved its safe drinking water goal early on in 2010, but did not hit its sanitation target.
The United Nations Member States agreed to accomplish the eight MDGs in a 15-year period. By 2015, they found success in most categories, but came short in others.
The MDGs signal a huge accomplishment in developmental and humanitarian progress, and the Global Goals are looking to continue its legacy.
The Global Goals (GGs) are going to make this generation “the first generation to end extreme poverty, the most determined generation to fight inequality and injustice, and the last generation to be threatened by climate change.”
With 17 goals, the GGs will tackle what no other generation thought possible.
On September 25, 2015, 193 world leaders are signing onto another 15 years of global development. The GGs are no poverty, no hunger, good health, quality education, gender equality, clean water and sanitation, clean energy, good jobs and economic growth, innovation and infrastructure, reduced inequalities, sustainable cities and communities, responsible consumption, to protect the planet, life below water, life on land, peace and justice, and partnerships for the goals.
According to Amina Mohammed, Secretary General Ban Ki-moon’s Special Adviser on Post-2015 Development Planning, the 17 GGs will “encompass the unfinished business of the MDGs” like ending poverty, hunger, gender discrimination, water and sanitation. Seven of the GGs address a “social agenda.” The economic goals include boosting infrastructure, energy options and pushing for equality. The “environmental agenda” includes improving urban conditions, “life on earth, above earth and underwater.”
Further, the GGs look at “the whole picture.” They deal with the economic, social and environmental sectors.
The major difference between the MDGS and GGs is that now, “we are talking about the universal agenda, so it is about everybody,” shared Amina. It is also an “integrated agenda” because “we are looking at countries that are looking to transform their economies, but not do so at the expense of people delivering services in health and education, and not to the expense of the planet.”
The environmental attention also differs from the MDGs and GGs. The GGs are giving a “deeper look at the root causes.”
This year, the United Nations is responding to the greatest call to action the world has ever seen.
– Lin Sabones
Sources: YouTube, Global Goals, UN, WHO
Photo: Photo: Global Citizen