The middle class is essential for economic and democratic growth. The continent of Africa, consisting of 54 independent countries, contains the poorest countries in the world, according to the human development index created by the United Nations. However, over the last 15 years, the middle class in Africa has grown.
As the middle class expands, so does consumerism. The growth of the African middle class not only means more stability for Africa, but also more profit for American businesses. More of the African population is buying televisions, cell phones, and leisure and entertainment items, which Western companies provide.
But, how is the African middle class defined? In the U.S., there is a struggle to define the middle class. However, it is clear that those earning about $20,000 to $120,000 a year would categorize themselves as middle class. In Africa, the range is quite different. The middle class consists of those earning $2-$20 a day, or $730-$7,300 a year.
A strong and large African middle class is beneficial. The African middle class consumed approximately $680 billion in 2008, consisting of nearly a quarter of Africa’s GDP. At this rate, Africa will comprise approximately 3 percent of worldwide consumption by 2020, with about $2.2 trillion of consumer spending. The middle class will help grow the economy as they have more income to spend and can invest more of their finances in health and education. However, 60 percent of the African population continues to earn a meager $2-$4 daily.
Those in this floating class, earning $2-$4 a day, are at risk of leaving the middle class and descending into poverty. This represents 180 million people. The floating class could slip into poverty very easily; a job loss or the death of the head of household could cause the slip. Therefore, a balancing act is required to help grow the middle class while also preventing the floating class from slipping back into poverty.
Policies that focus on both human capital development and job generation will ensure the growth of the African middle class. Continued improvements in governance, better access to technology, the rapid spread of mobile telephones, and the better use of natural resources are necessary. Additionally, social changes and policies that focus on education and health will work to support those earning $2-$4 a day.
The U.S. should continue investing in Africa through aid. History demonstrates that the U.S. benefits greatly by assisting poorer countries. For instance, from 1960 to 1974 the U.S. provided South Korea with $5.6 billion in aid. In 2010, the annual U.S. export to South Korea was $38.8 billion. But this is just one example. Find more information about the benefits of reducing global poverty here.
Now is the time to increase the investment in Africa. As the middle class is beginning to grow, investment in Africa will result in a more stable economy, growth of democracy, and an increase in consumerism. Both the U.S. and Africa will benefit from building a strong middle class throughout Africa.
– Caressa Kruth
Sources: How We Made It In Africa, UN Development Program, The Borgen Project, National Geographic
Photo: Forbes India
Taiwan Takes Firm Stance Against Human Trafficking
October 1, 2013 marked the opening ceremony of the International Workshop on Strategies for Combating Human Trafficking in Taipei City, Taiwan. The workshop serves to stimulate conversation and collaboration for human rights protection and is organized by the National Immigration Agency under the Ministry of the Interior. Around 200 policy experts and officials from Taiwan and abroad attended, including those from Brazil, Canada, Vietnam, the U.K. and 16 other countries.
Vice President of the Republic of China (ROC), otherwise known as Taiwan, Wu Den-yih, took a staunch stance against human trafficking at the opening ceremony. He stated that protecting human rights is a universal value that needs international attention. He also highlighted the firm commitment of the ROC government against human trafficking and violations of human rights.
In the days after the opening ceremony, the workshop hosted six discussion panels ranging from topics pertaining the protecting the youth from sex crimes to trying to prevent modern-day slavery and labor exploitation. Many guest speakers were featured at panels, including officials from the U.S. Department of Homeland Security.
This year was the fourth consecutive year that the U.S. State Department awarded Taiwan the Tier 1 status of the U.S. State Department Trafficking in Persons (TIP) Report, based on the government’s effort to fight human trafficking. While the Department of State places countries into one of three tiers, this ranking has no indication of the prevalence of human trafficking in the country, or lack thereof. The ranking simply acknowledges the effort a government has made to make human trafficking a pressing concern in the national political discourse and to attempt to address the problem.
Nevertheless, Taiwan’s ranking demonstrates its commitment of protecting human rights and ending human trafficking. In recent years, Taiwan has been improving law enforcement training, strengthening support services by building shelters and providing temporary work, and establishing policy strictly prosecuting traffickers, such as the Human Trafficking Prevention Act.
– Rahul Shah
Sources: UNPO, AIT, US State Department
Photo: American Institute in Taiwan
Africa’s Rising Middle Class
The middle class is essential for economic and democratic growth. The continent of Africa, consisting of 54 independent countries, contains the poorest countries in the world, according to the human development index created by the United Nations. However, over the last 15 years, the middle class in Africa has grown.
As the middle class expands, so does consumerism. The growth of the African middle class not only means more stability for Africa, but also more profit for American businesses. More of the African population is buying televisions, cell phones, and leisure and entertainment items, which Western companies provide.
But, how is the African middle class defined? In the U.S., there is a struggle to define the middle class. However, it is clear that those earning about $20,000 to $120,000 a year would categorize themselves as middle class. In Africa, the range is quite different. The middle class consists of those earning $2-$20 a day, or $730-$7,300 a year.
A strong and large African middle class is beneficial. The African middle class consumed approximately $680 billion in 2008, consisting of nearly a quarter of Africa’s GDP. At this rate, Africa will comprise approximately 3 percent of worldwide consumption by 2020, with about $2.2 trillion of consumer spending. The middle class will help grow the economy as they have more income to spend and can invest more of their finances in health and education. However, 60 percent of the African population continues to earn a meager $2-$4 daily.
Those in this floating class, earning $2-$4 a day, are at risk of leaving the middle class and descending into poverty. This represents 180 million people. The floating class could slip into poverty very easily; a job loss or the death of the head of household could cause the slip. Therefore, a balancing act is required to help grow the middle class while also preventing the floating class from slipping back into poverty.
Policies that focus on both human capital development and job generation will ensure the growth of the African middle class. Continued improvements in governance, better access to technology, the rapid spread of mobile telephones, and the better use of natural resources are necessary. Additionally, social changes and policies that focus on education and health will work to support those earning $2-$4 a day.
The U.S. should continue investing in Africa through aid. History demonstrates that the U.S. benefits greatly by assisting poorer countries. For instance, from 1960 to 1974 the U.S. provided South Korea with $5.6 billion in aid. In 2010, the annual U.S. export to South Korea was $38.8 billion. But this is just one example. Find more information about the benefits of reducing global poverty here.
Now is the time to increase the investment in Africa. As the middle class is beginning to grow, investment in Africa will result in a more stable economy, growth of democracy, and an increase in consumerism. Both the U.S. and Africa will benefit from building a strong middle class throughout Africa.
– Caressa Kruth
Sources: How We Made It In Africa, UN Development Program, The Borgen Project, National Geographic
Photo: Forbes India
Malala Interviewed on The Daily Show
Malala Yousafzai was interviewed on The Daily Show with John Stewart. Malala become a public figure after being shot by the Taliban.
Pressure on Developed Nations to Contribute More Aid
Leaders have begun to discuss what will replace the Millennium Development Goals once they reach expiration in 2015. Mukhisa Kituyi, the new secretary general of UNCTAD, the UN Trade and Development body, stated that aid-flows from wealthy nations were drying up and that developing economies must contribute more in order to assist the poorer nations.
Kituyi, who took office last month, urged Brazil, China, and other emerging economies to take responsibility for the fight against extreme poverty. “From Brazil to China, while they have shown a willingness to invest in economic infrastructure – the construction of roads, railways, and ports – that capacity should also extend to the construction of social infrastructure,” he said.
There has been constant pressure on developed nations to contribute more aid in both reaching the Millennium Development Goals and ending extreme poverty; however, Kituyi’s call for action represents one of the rare voices asking the developing nations to pay tribute as well.
UNCTAD, which was formed in 1964, is seen as the intellectual counterweight to the World Bank and the IMF, urging even more liberalized trade and deregulated finance. However, in recent years, some of the organization’s staff members are increasingly concerned about Unctad’s future. Kituyi claims that he is determined to boost the organization’s reputation, and is especially concerned in taking part in the formation of what follows the Millennium Development Goals.
– Sonia Aviv
Sources: The Guardian, International Development News, News 168
Photo: The Habari Network
Inflation and Food Shortages in Venezuela
For residents of Venezuela, food and grocery shortages have become a part of daily life. Outside of many government-subsidized grocery stores, people line up before dawn hoping to purchase what they can before supplies run out. Items such as milk, meat and toilet paper are bought up quickly. The shortages have lasted for more than a year, prompting calls for President Madura to reevaluate the economic policies of his predecessor, Hugo Chavez.
Though Venezuela is one of the most oil rich nations in the world, it is struggling to mitigate inflation and keep subsidized grocers stocked with products. Many experts say that strict price controls are to blame for the country’s economic problems, while President Maduro insists that it is all part of an effort by the opposition and CIA to destabilize the government and sabotage Venezuela’s oil industry.
Asdrubal Oliveros, an economist at one of Venezuela’s leading consulting firms, told the Guardian that the current crisis is the result of several factors, which include the country’s overreliance on imports and the government price controls. Another factor is the decrease in agricultural production due to the government’s recent land expropriations. “It’s cheaper to import than it is to produce,” Oliveros said. “That’s a perverse model that kills off any productivity.”
Many economists echo Oliveros analysis, saying that the Venezuelan government is not helping the problem by fixing prices so low. When prices are set low, companies and producers are not able to make a profit—this, in turn, leads to a cessation of farming, manufacturing, and production. Originally designed to help Venezuela’s poor and working classes afford food and staples, the price-fixing program has instead led to empty shelves and long queues.
After becoming President of Venezuela, Hugo Chavez and his ministers sought to reduce the growing wealth disparity in their country. To achieve this, they implemented price controls on certain goods so as to make them cheaper for individuals and families with lower incomes. This step and increased spending on social programs, however, may be contributing to the country’s current economic crisis.
Aggravating the problem is the fact that inflation is increasing at an alarming speed. In August, 12-month interest rates rose to 45.4 percent. This is the highest since Venezuela’s hyperinflation crisis in the mid-1990s. Officials in Maduro’s government have said that they will be considering changes in the country’s economic policies in an effort to combat the rising prices and food shortages in Venezuela.
– Daniel Bonasso
Sources: The Guardian, New York Times, Wall Street Journal
Mobile Devices in Africa Becoming a Basic Necessity
The number of wireless devices in the U.S. outnumbers the population. With a population of 315 million in 2011, there were approximately 328 million mobile devices in the U.S. Americans enjoy mobile devices, as do an increasing number of the African population. Paul Kagame, current president of Rwanda, captured the growth of mobile devices in Africa by stating, “In 10 short years, what was once an object of luxury and privilege, the mobile phone, has become a basic necessity in Africa.”
Let’s look at some examples:
Although mobile phones across Africa generally consist of low-end Nokia phones used for the Short Messaging Service (SMS), smartphones with Internet capability are on the rise throughout the continent. In some African countries, mobile phones are more common than clean water, bank accounts and electricity, according to the World Bank and African Development Bank.
Why has there been an explosion in mobile phones? The main cause is the increasing reliance on mobile phones by youth. The youth, ages 15 to 24, depend on their mobile device not only for communication, but also for listening to the radio, transferring money, shopping, using social media and more. With some Africans only making $2 a day, many will occasionally skip their meals in order to pay the $5 and $8 monthly cell phone expenses.
Mobile devices are also used as a way of combating many social issues in Africa:
By 2016, there will be an estimated billion mobile phones on the continent of Africa. This has a huge impact for potential investors. In Kenya alone, the use of mobile devices has had a big economic impact. The mobile device industry contributed about $3.6 billion to the country’s GDP and has provided numerous employment opportunities.
– Caressa Kruth
Sources: CNN, The African Report, Washington Post
Photo: Evidence4Action
10 New Health Innovations for Developing Countries
The need for new, inexpensive medical innovations in the third world is staggering. These devices must be easy to transport, operate, and most importantly, be affordable, or else they will remain available only to the wealthy. These ten new health care innovations for developing countries will be ready to distribute by 2015 and have the potential to save 1.2 million people.
1. Kit Yamoyo: This medical kit contains anti-diarrheal medicine that is packaged to fit over Coca-Cola bottles.
2. Anti-Shock Garment: The cloth is wrapped around the lower body to alleviate excessive bleeding after childbirth. The garment also prevents blood from leaving the vital organs until the mother can be transported to a healthcare facility.
3. Chlorhexidine: An antiseptic that averts dangerous infections that result from cutting the umbilical cord on a newborn baby.
4. Rotovac: The vaccine prevents rotavirus related diarrhea.
5. The Backpack-PLUS: It provides health workers with the tools to deliver a baby properly.
6. Helping Babies Breathe: Although not technically an invention, the program trains one million “birth attendants” to keep babies breathing after they are born, despite the birthing conditions.
7. Bubble CPAP: This airway device forces oxygen down babies’ lungs to save them from severe respiratory diseases.
8. Phone Oximeter: The mobile phone-based monitoring system is able to report blood oxygen levels for healthcare workers in areas without proper health facilities. The device assists in the diagnosis and treatment of pre-eclampsia and pneumonia.
9. Sayana Press: A contraceptive that comes packaged and pre-filled with a one dose injection system called Uniject.
10. Magnesium sulfate: Reportedly a highly effective treatment for severe pre-eclampsia and eclampsia as well as pregnancy-related conditions.
Another innovation that deserves honorable mention is the winner of a competition funded by Boehringer Ingelheim and organized by HITLAB. The winning device is a wireless pill bottle that benefits people living with diabetes. The pill bottle, in addition to storing medicine, provides data transmission, measuring medicine and sending patient reminders.
These innovations will be vital in the fight against poverty and disease in developing countries.
– Mary Penn
Sources: Business Standard, Boehringer Ingelheim
Photo: Flickr
Village Financial Services Private Limited
Formerly known as “Village Welfare Society,” Village Financial Services Private Limited (VFSPL) began in 1978. The state of West Bengal had just experienced a horrendous flood that devastated the area and several young people banded together in order to help save the lives of those affected by the flood. It was soon registered as a grant-based nonprofit organization.
The organization was officially established on January 23, 2006 and is a micro-finance operations program based in India, with its head office in Kolkata, located in the state of West Bengal.
A micro-finance organization is one that offers financial services to low income populations, like those present in several parts of urban and rural India. Various types of institutions offer this service, and some strictly focus on this one area of financial services. VFSPL focuses on mainly loan disbursement – as well as micro-finance – plus services like healthcare, which are accessed through the organization’s partner, Parinaam Foundation.
The program provides credit to poor and economically disadvantaged Indians. This credit is intended to be used for income-generating activities, as well as assistance in becoming self-sufficient in regards to finances. The organization also brings to light the burden of women in many families and promotes female empowerment in order to bring about positive change in the community. This self-sufficiency will help to build up economic health in the area and improve living conditions for those in poverty in India in the long run.
With over 100 branches all over the country, VFSPL is able to reach out to over one million people (specifically women) in the country, mostly in the areas of West Bengal and Bihar.
The mission of VFSPL is simple: “To strengthen the socio-economic condition of the society by providing financial and other support services mainly to the poor and women in a sustainable manner.” Hence, the organization reaches out to these people in order to achieve a greater good and to help families help themselves in the long run.
Part of what makes VFSPL unique is that the organization only lends to economically disadvantaged females. Catering only to females offers a supposed benefit; according to several studies in social development, females are better borrowers “in terms of repayment and utilization. They are much more likely to reinvest income into the household, for the benefit of the entire family.”
A shining example of VFSPL’s success resides within the success of client Archana Jana, a 44-year-old married woman with three children: two sons and a daughter. “Sukumar use to be karigar (labour) in making sholapith (shola) products used in decorating Hindu idols, in home décor and in creating the headgears of brides and grooms for a traditional Bengali wedding. Most of families in that area are into making these items. These items have a niche market but the karigars were paid low and it was very difficult for them to run their family. The condition of Jana family was also the same. Archana used to share the workload. After some years, Sukumars’s health condition became such that the Doctor at the Howrah Hospital advised him not to stress himself and not to do heavy work. Archana then decided to carry on the work of her own, while her husband was under treatment. She started her own business, taking loans from VFS and buying the raw materials directly. At that time her loan was Rs.2000. She is now having a loan cycle of Rs.12000 and she has now employed karigars under her. Her income is now more than Rs.200 per day. She found [her] lifeline during tough times and thanked VFS for the service provided to [her].”
For more information on microfinance and what VFSPL does, please take a look at their website: https://www.village.net.in/
– Samantha Davis
Sources: Village.net, Mix Market
Photo: The Guardian
Michael J. Fox: Race to Find Parkinson’s Disease Cure
Parkinson’s disease is a progressive degenerative disease of the central nervous system. The disease commonly affects the brain and motor functions. It causes difficulty and rigidity in simple motor functions and activities such as walking, sitting, thinking, and balancing. Often it occurs in older people, but some cases include people in their early forties. If the disease is left untreated, it can lead to more severe maladies such as dementia and immobility.
The disease often develops slowly and can go unnoticed. Initial symptoms include a noticeable tremor in just one hand, stiffness of the body, and slow movements. According to Mayo Clinic, during the early stages of the disease, patients may notice that the face shows little to no expression, and that their arms may not swing when walking. Other symptoms include impaired balance, speech changes, blurred vision, writing changes and an impaired sense of smell. These symptoms can worsen over time. Although the disease can’t be cured, there is a wide array of medications that can help treat it.
Michael J. Fox, a world renowned actor, was diagnosed with Parkinson’s disease when he was just 37 years old. Since then, he has been advocating nationally and internationally for a cure. He predicted that he would find a cure by the time he was 50 years old. However, he is still far from his goal.
He is often praised for his advocacy towards a cure for the disease, and often helps report symptoms and side effects related to the disease. According to WebMD, the actor first reported a “rolling pin tremor on his right hand,” which was later followed by stiffness in his limbs and face. Today, Fox reports that the disease now affects the left hemisphere of his body. Michael J. Fox said he is in the “late-mild” stage of the disease.
Fox wanted to go public about his condition to raise public awareness and funding for Parkinson’s disease, WebMD reports. He has raised awareness via his foundation Web site, which is dedicated to fundraising and finding a cure for Parkinson’s disease. Fox’s foundation is also dedicated to finding innovative research for Parkinson’s Disease patients. Fox’s advocacy can be summarized with his powerful motto, “The cures we want aren’t going to fall from the sky. We have to get ladders and climb up and get them.”
– Stephanie Olaya
Sources: Michael J. Fox Foundation, Mayo Clinic, Medicine Net, USA Today
Photo: Blastr
National Geographic’s Big Cat Initiative
Throughout Africa, the fate of the world’s dwindling big cat populations remains uncertain. A once prolific and wide-ranging group of animals, the big cat family–lions, cheetahs, leopards, and jaguars–used to range from the depths of Africa to regions as far as Israel, Syria, Pakistan, Iran, and even India. Just 2,000 years ago, there were over a million big cats in the world. Now, estimates show that there could be as few as 20,000 cats remaining, all of whom face grave danger.
The diminishing population of big cats in Africa has a variety of explanations, though all seem to circle around notions of modernity and urbanization. Perhaps the most tangible reason for big cat endangerment is the omnipotent danger of poachers, who ruthlessly search for big cats in order to sell their pelts and other body parts on the very lucrative international black market.
On a broader scale, the increase in urbanization–and the subsequent loss of forests and jungles–has greatly threatened the lives of the big cats. Without their natural habitats, the cats suffer from a loss of protection and heightened difficulty in finding their prey. Slash-and-burn techniques also contribute to habitat loss, as non-sustainable farming practices are perpetuated in order to gain a quick return on crops.
Sadly, the combination of these threats has created an environment that is fairly hostile to the once prolific big cat family. Population declines have thus been rapid, and the world remains on the brink of losing these graceful and significant animals.
Naturally, the big cat family encapsulates many of the majestic wonders of animal life. From the incredible celerity of a cheetah racing through the jungle to the absolutely powerful roar of the quintessential African lion, the astonishing diversity of the big cat family is undeniable. If populations of big cats ultimately disappear, however, the environment will suffer an enormous loss that it cannot recover.
In response to this incredible danger, National Geographic’s Big Cat Initiative is actively attempting to stop the irreparable destruction being done to the big cat family, a population loss that would deleteriously diminish the world’s fragile biodiversity. To begin, the initiative has focused its goals on the cats most in danger today: lions. By 2015, the initiative hopes to have halted decreases in lion populations, and then, ultimately to restore populations to their original levels.
– Anna Purcell
Sources: Mother Nature Network
Photo: Flickr